FG Re-Constitutes Board of NBET

– Seeks Speedy Resolution Of Power Sector Challenges

The Federal Government has reconstituted the Board of Nigerian Bulk Electricity Trading Company.

The inauguration of the re-constituted Board of NBET which took place on Monday in Abuja was been necessitated by the challenges of the power sector.

The Minister of Finance, Budget and National Planning Mrs. Zainab Ahmed, who inaugurated the board called on the members to come up with strategies for speedy resolution of the funding challenges in the power sector.

Members of the board are Mr. Alexander Okoh, Ms. Patience Oniha, Mr Ben Akabueze, Suleyman Ndanusa, Engr. Mustapha Balarabe Shehu, Mr. Adeyeye Adepegba and Dr. Marilyn Amobi, as Managing Director/ Chief Executive Officer.

NBET is the manager and administrator of the electricity pool in the Nigerian electricity supply industry.

It buys electricity from the Generating Companies including Independent Power Producers under Power Purchase Agreements and resells it to the distribution companies through vesting contracts.”

The finance minister said, “The role of NBET in the stabilisation of the power sector cannot be overemphasised as it plays a key role in the generation of market confidence through well-negotiated and well aligned contracts with fair risk allocation that protects market participants from credit and systemic risks.

“NBET stands as a de-risking agent in the power industry as it acts as a credit worthy off-taker of power procured from Gencos in the absence of bi-lateral contracts between Gencos and Discos.”

She said the contractual obligations and guarantees issued by NBET are of strategic importance for repositioning the power sector.

This, according to her, would deliver benefits to Nigerians.

Ahmed, who is the Chairman of the Board, said: “The reconstitution of the board therefore took consideration of the current stage of evolution of the restructured electricity sector, the complexities the sector currently faces, multi-disciplinary skills of prospective Board members especially in finance and investment, electricity generation, system operations of deregulated electricity markets, administrative law, as well as economic regulation of network utilities, amongst other factors.

“It is important that we bring our skills and experiences to bear in this critical assignment.

“It is important that we build NBET to become that defensive wall against potential payment defaults, till generation companies and distribution companies are able to enter into power purchase agreements on bilateral basis.”

She said NBET should be able to successfully fulfill its role in the management and administration of financial flows in the sector, adding that the it was vital for the agency to promote a contract-based market that allocates risks efficiently to parties responsible for them.

She said, “The electricity deregulation is still evolving in Nigeria, and the country is basically learning as the privatized market evolves.

“However, we do not have all the time, as the longer it takes, the more costly it is financially for Nigerians and the country at large.”

Recall that President Muhammadu Buhari had approved the reconstituted the Board of Directors of NBET.