Speaking at the 4th Edition of the Power Correspondents Association of Nigeria (PCAN) annual workshop in Abuja on Thursday, Chief Adelabu re-assured that the government’s commitment to improving the power sector is unwavering.
“The government remains fully committed to transforming Nigeria’s power sector through meaningful and actionable reforms. We are focused on ensuring that our policies are not only visionary but also practical, impactful, and sustainable.
“From the ongoing efforts to address infrastructure gaps, enhance power generation, and improve transmission networks, to the vital reforms in distribution and the full implementation of the electricity market, we are resolute in our mission to improve the power supply for every Nigerian”, he said.
Harping on the theme of the workshop, “The Power Sector: Ending the Talk, Time for Action”, the Minister, represented by S A Owolabi, Director, Renewable Energy and Rural Electrification, called on all stakeholders, including investors, regulators, and the media to play their critical roles in the transformation of the sector.
According to him, embracing innovation, strengthening collaborations, and focusing on implementation will enable the transition from talk to action.
“For many years, we have had discussions, deliberations, and strategic dialogues on the challenges facing the power sector. We have heard the calls for reform, the promises of growth, and the visions of a brighter energy future. Yet, it is clear that words alone will no longer suffice. We have reached a pivotal moment where the time for action has arrived”, he said.
Delivering his keynote address, the Managing Director of Azura Power West Africa, Edu Okeke said for investment in the power sector to thrive, Distribution Companies (DISCOs) must be strengthened.
Okeke lamented that the DISCOs who interface with the consumers are struggling to pay their total bills to the entire value chain, attributing it to lack of capacity to make the necessary investments to recover costs effectively.
The MD, who was the workshop’s guest speaker, emphasized that to enable meaningful progress, DISCOs must be adequately capitalized.
“Unfortunately, most DISCOs have negative equity, leaving them with little to no financial stake. This situation must change. Ideally, no DISCO should operate without at least USD 250m in shareholder funds. Just as the Central Bank of Nigeria has raised capital requirements for banks to ensure their stability and capacity to serve, the Nigerian Electricity Regulatory Commission (NERC) should mandate similar capitalization standards for DISCOs.
“Many DISCOs also carry a heavy burden of debt, accumulated over time through a mix of operational challenges and systemic issues. To truly address this problem, the Government needs to come clean and take a decisive step”, he added.
In his welcome remarks, the Chairman of PCAN, Obas Esiedesa, expressed worries over the ongoing challenges in the national grid system.
While stressing that the PCAN’s workshop is a call to action, Esiedesa said the incessant grid disturbances reminds Nigerians too much of the pre-privatisation era after 11 years.
“As journalists covering the power sector, we are concerned that the sector has seen more discussions than actual progress.
“Despite the constant dialogue, each step forward often seems to bring about setbacks.
“We acknowledge the significant efforts underway in the sector, including the proactive steps by various states through the Electricity Act, the planned unbundling of the Transmission Company of Nigeria, the move towards a bilateral trading market, and the introduction of new power plants.
“However, persistent issues with grid reliability and the ongoing challenges in the national grid system, even after 11 years of privatization, remind us too much of the pre-privatisation era”, he stated.
Spark News Daily reports that TCN, AEDC, NEMSA, ZUMA were among the agencies that delivered goodwill messages during the workshop held at Nicon Luxury Hotel.
