Menu Close

Federal Govt working out equitable electricity tariffs: Minister

Engr. Sale Mamman, Honourable Minister for Power

Isola Moses

Engr. Sale Mamman, Nigeria’s Honourable Minister for Power, has said the ministry and stakeholders in the electricity market are working towards the establishment of a predictable and equitable regulatory regime from the perspective of power consumers and investors.

Reports indicate that earlier, Engr. Mamman had raised the alarm over the widening liquidity gap in the Nigeria Electricity Supply Industry (NESI).

There is a need to reinforce market structures and enhance transparency, he stated.

At the recent International Conference on Energy, Power Systems Operations and Planning (ICEPSOP 2020), in Abuja, FCT, he said the ministry is already working hard to address the challenges by improving metering.

The theme of the conference was: “Empowering Micro Grid with Smart Grid Attributes Development in United States and Africa”.

In collaboration with the Central Bank of Nigeria (CBN), Federal Ministry of Finance, and other relevant stakeholders, The Nation reports that the ministry is to consolidate a portfolio of activities deemed critical to the success of the electricity market in the country.

“The widening liquidity gap in the sector makes urgent the need to reinforce market structures and enhance transparency.

“To address this challenge, we are working hard to improve metering in general and in particular the use of smart meters as well as smart grids.

“In addition, the ministry is coordinating with the regulator, Ministry of Finance, the CBN, and other stakeholders to consolidate a portfolio of activities deemed critical to success,” the Minister for Power said.

Such areas, according to him, include refinement of commercial, technical, and regulatory components of transaction agreements; promotion of discipline; enforcement of contract effectiveness a day.

Others are the establishment of a predictable and equitable regulatory regime from the perspective of ratepayers and investors.”

The minister said the ministry is focusing on electricity access for the teeming population through the use of mini-grid and micro-grid.

Mamman noted that energy access has been a perennial issue particularly in sub-Saharan Africa.

He stated that out of the 1.2 billion people without access to electricity, about half of them reside in the region.

Electrification rate in Nigeria stands at 55 per cent in urban and 36 per cent in rural communities, he added.

The minister said there are already measures in place to promote rural electrification.

Prof. James Momoh, Chairman, Nigerian Electricity Regulatory Commission (NERC), also said the conference is to provide the required environment to explore innovative regulatory approaches in promoting efficient and competitive service delivery involving deployment of smart and micro-grid technologies.

Hon. Magaji Aliyu, Chairman, House of Representatives Committee on Power, noted that as Nigeria battles to generate, transmit and distribute electric power, the country has serious challenges reaching most of the rural areas.

Kindly Share This Story


Kindly share this story