- The unbundling by PENGASSAN is to encourage private sector investment and improve power supply.
- The critical challenges in the power sector are inadequate generation capacity, dilapidated and weak infrastructure, and lack of investment.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the federal government to unbundle the national electricity grid to aid private sector investments and improve power supply. National President of PENGASSAN, Comrade Festus Osifo, noted that power supply remains a critical issue plaguing the country, as reliable and consistent electricity is the lifeline of any growing economy. Osifo, speaking at the National Executive Council meeting of PENGASSAN in Port Harcourt recently, listed the key challenges in the sector, including inadequate power generation capacity, dilapidated and weak power infrastructure, and lack of investment in the power sector.
According to him, Nigeria’s current electricity generation was insufficient to meet the growing demands of the population and the nation’s industries, thus leading to frequent power outages and load shedding, disrupting the lives of ordinary citizens and impeding economic growth. To tackle these challenges and improve power supply in Nigeria, PENGASSAN offered several solutions, including increasing power generation capacity, rehabilitating and upgrading infrastructure, unbundling the national grid, encouraging private sector involvement, and promoting energy efficiency.
He said, “The government should focus on diversifying the energy mix by investing in renewable energy sources such as solar, wind, and hydroelectric power. This will reduce our dependency on fossil fuels and ensure a more stable and sustainable power supply. Significant investments must be made towards upgrading and modernising our power transmission and distribution lines. This includes replacing old equipment, improving maintenance practices, and building new infrastructure to meet the demands of a growing population.
“Unbundling of the national grid: The government must unbundle the national grid to smaller units scattered across different states of the federation. The government should create a conducive environment for private sector investments in the power sector. They can achieve this by formulating favourable policies, providing incentives, and ensuring transparency and accountability in the industry. Promoting energy efficiency and conservation: Educating citizens and industries about energy-saving practices and incentivising energy-efficient appliances is crucial. This will help reduce the overall energy demand and alleviate some pressure on the power grid.”