Power Operators In Nigeria Disagree With NERC, Says Sector Faces Bleak Future

Electricity power generation private sector group has countered the Nigerian Electricity Regulatory Commission, saying the problems bugging the sector are so overwhelming that they may end up derailing the sector.

Elated by the recent successful implementation of the new electricity tariff regime, the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Prof James Momoh, said the sector would not only attract more investments to the power sector, it will enable existing investors to recoup their investment.

But the executive secretary, Association of Power Generation Companies (APGC), Dr Joy Ogaji, has stated that the ills afflicting the nation’s power sector are still very much overwhelming, and may derail it from adding requisite value addition to the economy.

In a presentation on ‘Electric Power Infrastructure Perspective of Diversification’ at a recent summit in Lagos, she painted a gloomy state of the electricity sector.

She said currently, the national electricity demand is over 28,700MW with pipeline capacity at over 21,000MW and installed generation capacity at over 13,000MW.

She regretted that only about 8,000MW is available, out of which about 5,500MW could be transmitted and only 4,500MW being distributed.

She spoke on the theme of the summit in relation to the electricity industry, saying: “energy plays a pivotal role in economic diversification as its scale of use determines the socio-economic development of any nation capable of solving Nigeria’s problem.”

On the way out, she Nigeria needs to diversify its economy and fix the power sector, and target over 51% of West Africa’s over 400 million population where its products- services, agriculture, and industries can dominate the sub-region and bring in foreign exchange.

SOURCE: energyreview.com