The Federal Government says the privatisation of power in the country is a disappointment.
This is as it plans to restructure the Transmission Company of Nigeria to align with the Electricity Act 2023 and the industry demands.
The Minister of Power, Adebayo Adelabu, said this in Abuja on Tuesday at the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Plan.
The retreat had the theme, ‘Navigating and aligning on the path to enhanced electricity reliability’.
Adelabu stated, “It is time to restructure the TCN into two entities: the Independent System Operator (ISO) and the Transmission Service Provider (TSP). This restructuring must synchronise with the evolving landscape of state electricity markets, addressing calls for the decentralisation of the national grid into regional grids interconnected by a new higher voltage national or super grid.
“Essentially, we must ask whether the government should directly provide electricity nationwide or rather facilitate its provision by drawing comparisons with China’s centralised model and the United State’s diverse access models.
“Understanding how to handle subsidies, cross-subsidies, and aligning the Rural Electrification Agency’s role with emerging state markets are vital questions that demand stakeholder scrutiny for effective resolution.”
The minister said that for the country to increase its Gross Domestic Product to $1tn by 2030 as projected by President Bola Tinubu it must massively increase investments in electricity.
Adelabu said the Federal Government must work with state and local governments to increase the coverage and distribution of electricity across the country.
He noted, “Certain observable aspects within our sector require attention. These include the poor track record in contracting, contract management, and adherence to contractual obligations, in some cases, even by design.
“With impartial examination, it is evident that these identified factors erode confidence in the viability of the sector and pose fundamental challenges of inadequate capitalisation and limited access to funds for the diverse players along the energy value chain, from gas supply to electricity distribution.”
