By Adeyinka Adeniran
No fewer than ten states have moved into the electricity market in a bid to finding a lasting solution to the incessant power challenges across the country.
The development, a product of enactment of the 2023 Electricity Act, signed into law by President Bola Tinubu, is said to represents a major shift in how electricity will be regulated and managed in the country.
The Minister of Power, Chief Adebayo Adelabu made the disclosure on over the weekend while giving a remarks at the 2nd Annual Socio-economic Summit, organised by the Jericho Businessmen Club, Ibadan.
The event themed: “Powering Oyo State for Industrialization and Economic Development”, held at the Ibadan Civic Centre, Agodi, Ibadan.
Speaking, Chief Adelabu who was a Special Guest of Honor at the event reiterated the numerous efforts of the Federal Government at improving the sector and addressing bottlenecks across the electricity supply industry value chain in a bid to setting the sector on a path toward bankability and long-term sustainability.
He described the enactment of the 2023 Electricity Act by President Tinubu as one of the biggest achievements of the administration, saying boosting the industrial capabilities, developing and promoting domestic capacities i the power sector value chain is not only driving economic growth but also enhancing the sustainability of the sector in line with the government’s prioritization to ensure sustainability in the sector.
He also highlighted the various ways the government is exploring other sources of generating power to ease off the pressure on the hydropower system.
Additional, the Minister outlined the expectations from the state government in order to maximize the benefits of an autonomous electric market to to include: provision of security to protect power assets, creation of special courts to enable speedy trials of power assets vandals and intruders, prompt issuance of right of way to power developers, provision of land for power assets like substation or solar plants, abolition of land use charge on transmission substations direct investment in the value chain like provision of distribution transformers, poles and power cable to non-viable communities and investments in Renewable Energy projects across the state among others.
He added that the Federal Government is working actively to ensure rapid development of infrastructure in the sector to ensure electricity becomes accessible to all Nigerians.
For the purpose, he said the FG initiated two programs – the Presidential Power Initiative which have operationalization of additional 600MW wheeling capacity in the last one year and the Presidential Metering Initiative which aims to supply 2 million meters by the end of this year to reduce the estimated billing practices in the sector.
He also highlighted the various challenges facing the actualization of the efforts while also expressing the readiness of the Ministry to allow for innovative solutions from relevant stakeholders.
The Minister said “The idea of exploring ways to enhance our industrial capacity and economic development across the national and subnational governments through platform such as this aligns with our current mandate at the Federal Ministry of Power under my leadership which include developing and prioritizing local content, fostering job creation, and reduction of Nigeria’s reliance on imports.
“By boosting our industrial capabilities and developing and promoting domestic capacities in every segment of the Nigerian Power sector value chain, we are not only driving economic growth but also enhancing the sustainability of the power sector in line with the government’s prioritization to ensure sustainability in the sector.
“Over the past year, the Federal Government on Nigeria has implemented a multi-pronged approach spanning across legislation, policy, national infrastructure development programs, leveraging bilateral funding to derisk investment, sector commercialization, and strategic partnership with the investment community and development partners to address bottlenecks across the Nigerian Electricity Supply Industry value chain, setting the sector on a path toward bankability and long-term sustainability.
“One of our biggest achievements this past year was the enactment of the 2023 Electricity Act, signed into law by President Bola Ahmed Tinubu. An unprecedented groundbreaking legislation that represents a major shift in how we regulate and manage electricity in Nigeria.
“For the first time, state governments have been brought into the fold, empowering them to establish and manage their own electricity markets.
“Already, 10 State Electricity Markets including our own Oyo State have been advanced in the process of developing our state electricity market, enabling us to create a more decentralized, responsive, and competitive electricity supply industry. This decentralization is key to fostering innovation, driving investment, and delivering greater energy security for our state.
“With the development of our own electricity market, the state is positioned to explore embedded power generation as back up or alternative to the National Grid for Industrial and Academic/Health Hub of the Southwest.
“Our state can also go further to develop our Renewable Energy portfolio and local capacity development in the power sector value chain like hydropower, solar PV, winds and biofuel.”
