An energy expert has called on the federal government to involve private sector stakeholders and create an enabling environment for business.
The Company Secretary of Tetracore Energy Group Limited, Okezi Okah-Avae, stated this during an interview on Channels TV on Monday, June 10 2024, while discussing tackling Nigeria’s Power and Energy Challenges.
He stressed that before the tariff increase, the government should have put proper infrastructure in place since the payment should be based on customers paying for what they use. He said the tariff increase should have been gradual, not a fast shoot-up to over 200.
The Electricity Hub reported that on April 3, 2024, the federal government, through the Nigerian Electricity Regulatory Commission (NERC), increased tariffs for Band A customers to N225 per kilowatt-hour (kWh), which it later revised in May to N206.8/ kWh.
As a result of this, experts, sector stakeholders, and electricity customers have aired divided views on the increase in electricity tariffs. Some in support of the increase while others against it. Those on the latter side have argued that the government should have utilised its Multi-Year Tariff Order (MYTO) in implementing the tariff increase.
Okah-Avae stated, “There is what we call the MYTO, which is the Multi-Year Tariff Order, which allows for a gradual review of electricity tariffs. There should have been proper stakeholder management before the tariff was increased. The government must deliver reliable power if it has to set the tariff high. It’s a no-brainer that a country with a good power system will develop properly.
“The government should allow the private sector to invest in energy through the right policies, regulatory framework, and systems. Friendly policies should encourage business, encourage the private sector, encourage collaboration between the public and private sectors, and put a system in place for investor confidence,” he added.
Tetracore, an integrated energy solutions provider focused on natural gas delivery, recently commissioned a 3.1 million scoff cf of gas CNG plant and a 10 million scoff LNG plant in Ogun State. The firm focuses on gas because it is cleaner, more environmentally friendly than fossil fuels, and more abundant in Nigeria.