Stakeholders in Nigeria’s power sector have disclosed multifaceted challenges affecting the consistent supply of electricity to households, attributing the issues not only to governmental negligence or resource limitations but also to intricate bureaucratic hurdles.

The revelations came to light during a panel discussion at the WorldStage Economic Summit 2023 in Lagos, themed “National Dialogue on Electricity.” Mr. Johnson Akinnawo, representing Dr. Nnamdi Nnemeka, MD of Nigerian Bulk Electricity Trading PLC, highlighted the significant challenge faced by the power sector—a dearth of investors.

Contrarily, Mr. Gabriel Idahosa, Deputy President of the Lagos Chamber of Commerce & Industry (LCCI), who represented President Dr. Michael Olawale-Cole, argued that the federal government’s denial of transmission rights to electricity distribution companies compromised their profitability.

Addressing the issues causing substantial electricity shortages, Mr. William, representing Mr. Dele Kelvin Oye, National President of NACCIMA, underscored the inadequate infrastructure hindering optimal operations of electricity generating companies, urging the government to address these concerns.

Akinnawo emphasized the complexity in the power generation, distribution, and transmission chain, expressing concern that despite substantial government investments, electricity supply remains unreliable.

Responding to challenges in power generation, Akinnawo stressed the need for significant investments, especially considering the difficulties in gas supply for power generation. He highlighted the profitability of exporting gas compared to selling it locally for electricity generation.

While differing with Idahosa’s suggestion of states regulating electricity, Akinnawo argued against government ceding transmission to GenCos and DisCos, emphasizing potential financial gaps in states. He recommended sufficient gas exploration and exploitation to attract investors and urged the government to make the grid concession model bankable.

Regarding high electricity tariffs, Akinnawo explained that electricity, as a product, must be sold at a profit. He urged the public to understand the regulatory aspects of electricity tariffs and expressed optimism that Nigerians would soon benefit from the government’s efforts to improve electricity.

Idahosa highlighted the need for improvements in the gas sector to enhance power generation. He emphasized that reducing the cost of gas was essential to curbing tariff increases, acknowledging the dilemma and the government’s role in bearing the cost.

As Nigeria grapples with these challenges, stakeholders anticipate positive outcomes with the implementation of the 2023 Electricity Act, offering hope for improved electricity supply and profitability at the state level.

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