Power Reform: 45% of Nigerians Have No Access To Electricity – VP Shittima

Vice President of the Federal Republic of Nigeria, Kashim Shettima on Tuesday said less than 20 per cent of Nigerians have access to reliable energy for more than 12 hours per day and 45 Per cent have no access to any form of electricity.

The Vice President noted that as a consequence, households and industries have been dependent on self-generation which is both more expensive and more polluting.

The Vice President disclosed this at a power sector stakeholders interactive dialogue/workshop organised by the House of Representatives Committee on Power with the theme ‘Confronting Nigeria’s Power Challenge as the Nation Migrates to a Multi-tier Electricity Market: A Legislative Intervention’.

The Former Senator who was represented by Sadiq Wanka, said the dialogue was timely as there is widespread recognition that the country is underperforming across all four pillars of providing electricity supply that is reliable, affordable, environmentally sustainable, and available to all Nigerians.

He also urged states to attract investors in the electricity sector to recapitalise distribution companies and ensure a steady flow of investments towards increasing electricity access.

The Electricity Act 2023, proposes a structure that promotes more competition and greater scope for tailoring power solutions to local needs while transitioning to a market structure that would attract much-needed investments and promote environmental sustainability.

“The wholesale structural shift that the Electricity Act 2023 (as amended) and the associated constitutional amendment usher in, means we need to double down on ensuring an orderly transition to the new national electricity market framework,” he said.

Shettima lauded the National Assembly for its steadfastness in leading the conversation on an orderly transition and for demonstrating a willingness to review the recently passed Electricity Act as needed.

On his part, Minister of Power, Adebayo Adelabu, disclosed plans by the Federal Government to revamp the sector noting that three gigawatts of solar energy farms would be established across the 25 states in the north and southwest parts of the country.

The minister disclosed this during his presentation at the power sector stakeholders interactive dialogue/workshop organised by the House of Representatives Committee on Power.

Adelabu, who said this is a novel approach and will go a long way to solve the power problems, also encouraged state governments to invest in power generation in their states.

The minister said the country has witnessed incessant collapse of transmission which is caused by lack of adequate infrastructure.

“Most of the power generating infrastructures we have dates back to the 1960s.

“Unfortunately, there is no single backup for the national grid, and he called for alternative sources in case of a collapse of the grid,” the minister said.

The Speaker of the House of Representatives, Tajudeen Abbas, lauded the Committee for their commitment and leadership in spearheading the legislative framework that supports the transformative agenda of the President.

This, he said, is in line with our Legislative Agenda, which prioritises economic growth and transformation of key sectors of the economy, especially power.

Abbas however said, “The forum and extensive consultations would have preceded the implementation of the new multi-tier electricity system.”

“Having the consultation now appears to be an afterthought and goes contrary to the Electricity Act of 2024, which mandates consultation with all relevant stakeholders in determining just and fair tariffs.”

“The government’s objective is to foster a resilient, efficient, and sustainable power sector capable of supporting our nation’s ambitious economic and developmental goals.”

“The speaker said the shift towards a multi-tier electricity market represents a strategic pivot in the approach to power sector reform.”

This model, he said, ” Envisages a structured market segmentation that allows for differential pricing and service levels tailored to diverse consumer needs and capacities.”

“It promises enhanced efficiency through competitive practices, encourages investment by delineating clear market segments, and improves reliability and service delivery across the board.

“In framing the way forward, they can look towards best practices and successful models from other countries that have implemented similar market structures.

He added that phased implementation that involves the graduate introduction of market tiers allows for adjustments and learning.

Abbas said continuous engagement with all stakeholders is critical to ensuring that the reforms meet the diverse needs of the population and maintain public trust.

Chairman of the committee, Hon Victor Nwokolo, said the aim was to provide a dynamic platform for stakeholders to evaluate the progress made thus far in the Nigerian Electricity Supply Industry (NESI)’s development.

He said discussions will centre around the seamless transition to a Multi-Tier Electricity Market, as outlined in the Electricity Act of 2023.

This transition, he said, holds immense potential to enhance competition, efficiency, and reliability within the electricity market, ultimately benefiting consumers and driving economic growth.

“Through collaborative brainstorming and analysis, we aim to chart a clear roadmap for this transition, ensuring that it is smooth, inclusive, and conducive to sustainable development.

“Furthermore, this workshop will serve as a platform for stakeholders to explore innovative solutions to the persistent challenges plaguing the power sector.

“From infrastructure development and financing to regulatory frameworks and consumer engagement, we will examine a wide array of issues and propose actionable strategies for improvement.

“In addition to these objectives, we aspire for this workshop to foster enhanced collaboration and partnership among stakeholders. By bringing together legislators, representatives from government agencies, regulatory bodies, industry players, academia, and civil society, we aim to cultivate a culture of cooperation and collective action towards our shared goal of a vibrant and resilient power sector,” he said.