Mr Adebayo Adelabu, the Minister of Power, conveyed this message during the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Plan held in Abuja under the theme, ‘Navigating and aligning on the path to enhanced electricity reliability.’
Adelabu proposed a comprehensive restructuring of the TCN, advocating for the creation of two distinct entities – the Independent System Operator (ISO) and the Transmission Service Provider (TSP). This overhaul, he asserted, should be synchronised with the transforming landscape of state electricity markets, addressing the growing clamour for the decentralisation of the national grid into regional grids interconnected by a new higher voltage national or super grid.
In emphasising the necessity of this restructuring, Adelabu posed critical questions regarding the government's role in providing nationwide electricity. Drawing parallels with China’s centralised model and the diverse access models in the United States, he urged a careful examination of whether the government should directly supply electricity or act as a facilitator.
Addressing fundamental issues within the sector, the minister stressed the importance of scrutinising the handling of subsidies, and cross-subsidies and aligning the Rural Electrification Agency’s role with emerging state markets for effective resolution.
Adelabu linked the realisation of President Bola Tinubu's projection of increasing the Gross Domestic Product to $1 trillion by 2030 to a substantial upswing in electricity investments. He underscored the need for collaborative efforts between the Federal Government, state, and local governments to expand the coverage and distribution of electricity across the nation.
Identifying lapses in contracting, contract management, and adherence to contractual obligations as noticeable challenges, Adelabu attributed these factors to a weakened confidence in the sector's viability. He emphasised the resultant issues of inadequate capitalisation and limited access to funds for various players along the energy value chain.
A significant concern raised by the minister was the pricing of gas used by Generation Companies (GenCos) in dollars, describing it as a volatile variable impacting the pricing of electricity for end-users. Adelabu suggested trading gas in naira as a preferable option to manage foreign currency-related inflationary trends.
In advocating for domestic gas policies, he emphasised the importance of incentivising stakeholders for gas supply in electricity production and other industrial activities. Additionally, Adelabu stressed the need for a transparent and passionate approach to establishing a credible policy framework for reliable electricity in the country.
Meanwhile, Mr Wale Edun, the Minister of Finance and Coordinating Minister of Economy, highlighted power as a priority area for President Tinubu. He expressed dissatisfaction with the fact that 40% of the population lacks access to electricity, deeming it unacceptable to the President and other stakeholders. Edun acknowledged the underwhelming results of the privatisation exercise from a decade ago and called for stakeholders to actively contribute to finding effective solutions.
Acknowledging the emergence of renewable and green energy options, Edun stressed the importance of inclusive economic growth and rapid development through a comprehensive power solution.
Earlier in the retreat, Mr Temitope Fashedemi, the Permanent Secretary of the Ministry of Power, explained that the gathering aimed to bring stakeholders together to chart a way forward in achieving the Key Performance Indicators (KPIs) set for the minister. Participants were drawn from various sectors, aligning with the power sector, and the outcomes of the retreat are expected to guide the development of a new integrated national electricity policy and its strategic implementation plan.