MOSYLOADEDBLOGNEWS
The Nigerian Economic Summit Group
(NESG) has recommended a review of
the privatisation of the power
sector. Minister of State for Budget and
National Planning , Zainab Ahmed ,
disclosed this at the end of summit
yesterday that the Federal Government
would raise a committee to implement
the recommendations .
The summit , which also recommended a
review of electricity tariff , said it was
necessary to make the sector attractive
to investors , just like the
telecommunications sector.
The NESG added that the proposal would
ensure the attainment and the
optimisation of the summit ’s theme
“ Opportunities, productivity and
employment, actualising the economic
recovery and growth plan (ERGP )
Ahmed explained that a review of the
electricity tariff would increase the
sector to what investors refer to as cost
recovery level to attract investments .She
added that a review was needed in the
distribution sub - sector, because it had
remained epileptic due to inadequate
injection of capital by the current
concessionaire .
According to her , the poor funding has
made it difficult for effective metering
and other infrastructure to enhance
delivery and supply of power and to
boost productivity and wealth creation
in the country .The minister disclosed
that the review would begin with the
Electricity Distribution Companies
(DISCOs), which has been noticed to be
problematic. She said : “ The
recommendations would require the
stakeholders coming together to agree
on what stake they would give off to the
new investors .
“ As you are aware , we have not had
investors in the petroleum sector for
almost seven years because of the non-
passage of the Petroleum Industry Bill
(PIB), because investors feel that the
prices are not cost reflective enough.’’
Among other recommendations is the
removal of all regulations stifling the
development of off - grid electricity
solutions , to encourage the use of
renewable energy and increase
electricity access and reduce poverty
The NESG urged also canvassed the
promotion of willing buyer and seller
agreements for gas without government
interventions on prices , and
acceleration of investment in gas and
renewable energy by providing fiscal
incentives like 10 years or more tax
holiday .
Meanwhile, the immediate past
President of the Federation of African
Engineering Organisations (FAEO ),
Mustapha Musa has explained the cause
of power outage.
According to him, the inability of the
DISCO’ s to remit money collected to
Market Operators (MO ) and Nigeria
Bulk Electricity Trading (NBET ) is
hindering stable power supply in the
country .
He stated this in Abuja yesterday while
speaking at a lecture with the theme
“ Energy Situation In Africa:
Opportunities and Challenges” at the
26 th Nigerian Society of Engineers
(NSE).
He added that the failure of Generating
Companies (GENCOs) to pay for fuel
have denied suppliers the needed funds
to maintain their plants. He added that
the failure of GENCO’s to pay for fuel
denied the suppliers the needed funds
to maintain their plants and expand
their networks adding that most of the
operators have delinquent credit
exposures to banks .
Source:mosyloaded.
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