Nigeria: House Moves to Ease Electricity Contracts from Procurement Act

  • House of representatives make moves towards the exclusion of PPA in the power sector.

The House of Representatives at the plenary yesterday passed for second reading a bill that seeks to exclude applying the Public Procurement Act to contracts in the power sector. The bill also seeks the establishment of Rural Electrification & Renewable Energy Agency and National Power Training Institute.

The proposed legislation, “Electric Power Sector Reform Act (Amendment) Bill,” is sponsored by Chairman, House Committee on Power, Hon. Aliyu Magaji.

According to him, the proposal was supported by inputs from stakeholders, including the Federal Ministry of Power, Nigerian Electricity Management Services Agency (NEMSA), Power Generation Companies in Nigeria, Association of Nigeria Electricity Distribution and National Power Training Institute of Nigeria.

He explained that the bill seeks to amend section 24 of the Act by inserting a new subsection (2A) which request stakeholders input in the Commission’s report to the Minister on the prospect of the Nigerian Electricity Supply Industry in the privatisation era and a new section ’24A’ which lists agencies under the jurisdiction of the Federal Ministry responsible for power.

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