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Nigeria’s federal government revokes plans to cancel power sector privatization

The possibility of cancelling licenses given to private sector investors to run the Nigeria’s power sector has been revoked by the federal government of Nigeria.
According to Mr. Babatunde Fashola cancellation of the exercise will send a negative message to prospective investors in the country’s power sector. He says that revoking it will make investors leave the country.
Privatization
Mr. Fashola agrees that there are problems and he understands that four years after privatization there is a transition period. Additionally some more work needs to happen before the expected benefits come to fruition.
He stressed the need for institutions at state and  federal levels to take actions that should help the investors play their part effectively, implement enunciate policies and extant laws. He stated their role in this regard are sort out in the Electric Power Sector Reform Act 2005. To which the privatization of the power sector took place.
He asserted that the meter provision is not a monopoly of DisCos. According to him its supervision falls within the mandates of the Nigerian Electricity Management Service Agency (NEMSA) and the Nigerian Electricity Regulation Commission (NERC). The government would support the provision of the product to demonstrate access.
The intention of the democratization of meter provision is to reduce conflict between customers and DisCos. Also to reduce losses in the sector and assist the electricity firms which cannot afford to fund meters.
He notes that the negotiated price for large consumers would likely  be lower than N80 per kwh or more. Eligible customers may apply to the NERC to privately acquire power, independent of DisCos. Of course this will occur only on a willing buyer, willing seller basis.

Source: Construction review


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