- Key stakeholders in the electricity industry have predicted improved power supply in the future.
- The newly signed bill is expected to fulfil the quest for resource control and true federalism.
Some key stakeholders in the electricity industry have predicted enhanced inclusive growth and competitive economic indexes after President Muhammadu Buhari assented to 16 constitution alteration bills concerning the state electricity markets.
The signed bills include delegating more power to state governments by granting them autonomy to generate electricity, a move that will break the federal government’s monopoly in power generation, transmission and distribution.
The Former Ministers of Power, Professor Barth Nnaji and Dr Olu Agunloye, said the country would now begin to see massive investment in power generation and the much-anticipated competition in the industry.
Nnaji said that states like Lagos, Rivers and Akwa Ibom that had spearheaded the drive for autonomous power structures would substantially create better opportunities and environment to drive economic growth. The former minister said states would no longer apply for licences to generate their own power. They would now have the latitude to regulate generation, distribution and transmission, adding that they would now have the opportunity to create end-to-end alternative power transmission lines.
He, however, stated that states that need to be more liquid would have challenges raising the required capital to invest in the sector, stating that it will cost about $150-$200 million to develop a 100 Megawatts power generation plant.
Nnaji did not see conflict in regulations, as he said the Nigerian Electricity Regulatory Commission, NERC, would oversee the national grid system while the state’s electricity regulatory bodies would regulate activities at the state level.
Professor Barth Nnaji added that this development would enable several opportunities that will reduce outages frequently triggered by grid system collapse.
On his part, Dr Agunloye applauded the move, saying it would help liberalise the industry. He said that while he was minister, he pursued the policy of throwing the market open, but the system did not allow the devolution of power to states. He added that it would also partly fulfil the aspirations and yearnings of the quest for resource control and true federalism.