The Association of Nigerian Electricity Distributors (ANED) has said there is hope for increased growth of the nation’s power sector three years after its takeover by the private investor.
Its Executive Director, Research & Advocacy, Mr. Sunday Oduntan, who spoke in Lagos at a summit organised by World Stage Ltd, said the growth of the sector largely depends on funding of liquidity by subsidy and private sector funds, incremental generation, stability as well as security in generation. “Revenue gap from minor review must fully recognise the variance in forex applied by Gencos and drop in generation for six months,” he said.
Other milestones he advocated include that MDA debts must be paid, focus on transmission funding and security of power supply, cost-reflective tariffs for DisCos, strong and independent regulator, continuous and sustained investment on electrical infrastructure particularly TCN, aggressive metering across the board must be sustained.
In his presentation ‘Getting The Power Sector Right To Boost Productivity,’ Oduntan said the power sector was facing many surmountable and difficult challenges that had made it unable to play its role as the engine of growth for job creation.
“The whole electricity supply chain still remains comatose; the promised increased generation and reliability as part of privatisation – has not happened; generation continued to hover in the mid-range of 3000 to 4000 Megawatt; energy theft and meter bypassing are very rampant; and insufficient number of meters due to liquidity gap and massive shortfalls,” he noted.
He added that the “GenCos have been bedeviled by gas supply issues, cost and vandalism of gas pipeline networks in, delay and frustration in construction power plant sometimes on land and contract.”
The Director of Department of Petroleum Resources, who was represented by Mr. Kanmi Ayodeji, Manager, Planning, in a presentation titled ‘Nigeria’s Oil & Gas Reforms – Boosting Indigenous Participation & Energy Security,’ said current reforms, initiatives and strategic plans in the oil sector were capable of boosting economic growth and create jobs.
He observed that reforms such as initiated the modular refinery strategy to boost domestic refining capacity, improve supply of petroleum products and create direct and ancillary jobs.
Source: Daily Trust