- Nigeria’s Minister of Power, Adebayo Adelabu, emphasises the need for actionable reforms to address the country’s ongoing power supply crisis.
- Key stakeholders call for increased capitalisation of Distribution Companies (Discos) and debt restructuring to ensure sustainable progress in the energy sector.
According to Minister of Power, Chief Adebayo Adelabu, the Federal Government is committed to resolving Nigeria’s long-standing power supply crisis. Speaking at the 4th annual workshop organised by the Power Correspondents Association of Nigeria (PCAN) in Abuja, Adelabu emphasised the government’s focus on moving from dialogue to action. He acknowledged that discussions about solving the country’s electricity deficit have been ongoing for years, but it is now time for tangible results.
Describing the theme of this year’s conference, *“Nigerian Power Sector: Ending the Talk, Moving to Action, as timely and crucial, Adelabu stated that citizens, industries, and the economy can no longer afford to wait for promises. The government is committed to implementing practical, sustainable reforms across the power sector, addressing infrastructure gaps, boosting power generation, and improving transmission and distribution networks.
Adelabu, represented by the Ministry’s Director of Renewables & Rural Access, Sunday Owolabi, reiterated the government’s determination to make meaningful changes. These include fully implementing the electricity market and essential distribution reforms.
In his keynote address, Edu Okeke, Managing Director of Azura-Edo Independent Power Producer (IPP), called for a significant capital infusion into Nigeria’s Distribution Companies (Discos). He argued that to make real progress, Discos must be adequately capitalised, with a base of at least $500 million.
Okeke proposed that the Nigerian Electricity Regulatory Commission (NERC) mandate capitalisation standards similar to those enforced by the Central Bank of Nigeria for banks, suggesting that no Disco should operate with less than $250 million in shareholder funds. He also recommended that the government address Discos’ accumulated debts and encourage new investments in infrastructure.
Tukur Aliyu, Managing Director of the Nigerian Electricity Management Services Agency (NEMSA), highlighted the sector’s challenges and achievements in 2023, noting significant strides in infrastructure expansion and modernisation. He said NEMSA has been proactive in improving electrical safety and quality management, contributing to the stability of Nigeria’s power systems.
PCAN Chairman Obas Esiedesa expressed concerns over the sector’s lack of progress despite ongoing discussions. He noted that issues with grid reliability persist, and the challenges facing the national grid remain similar to those seen before the sector’s privatisation over a decade ago.
Other key speakers at the event included Chijioke Okuwuokenye, Managing Director of the Abuja Electricity Distribution Company (AEDC), who discussed the need for liquidity in the sector, and representatives from the Transmission Company of Nigeria (TCN) and the Niger Delta Power Holding Company (NDPHC), who addressed operational and contractual challenges facing the power industry.