Automating Nigeria's electricity trading

In a bid to revolutionize Nigeria's electricity sector, the Nigerian Bulk Electricity Trading Company has unveiled plans to launch an automated trading platform for transactions in the power industry starting from next year. The move is expected to bring about a significant transformation in the way energy trading is conducted in the country. George Etomi, the Chairman of West Power and Gas, recently appeared on CNBC Africa to discuss the potential impact of this groundbreaking initiative. Etomi expressed his enthusiasm for the introduction of a real-time energy trading platform and emphasized the importance of transitioning from the current temporary electricity market to a contract-based market. He highlighted the need for accurate records and real-time information in order to address disputes and enhance transparency within the sector. By automating the trading process, stakeholders will have access to timely data on the movement of commodities in the electricity market, which will facilitate better decision-making and accountability. One of the key advantages of the automated platform is its ability to match supplies with distribution companies, thereby streamlining operations and ensuring efficient delivery of electricity. The platform is also designed to integrate seamlessly with various segments of the market, including buyers, sellers, and other key players. Additionally, it will feature a comprehensive interactive map that showcases facilities in Nigeria and explores bilateral contracts within the West African region, creating new opportunities for local demand and international market expansion. Etomi underscored the significance of gas as a primary feedstock for thermal plants, which account for a significant portion of Nigeria's energy generation. He noted that the lack of gas-to-power facilities has hindered the sector's growth, but automation and innovation are poised to unlock new potential for electricity market development. With the West African gas pipeline already connecting the region, the automated trading platform is expected to facilitate greater collaboration and growth in the broader West African economy. Addressing concerns about investment coordination and the impact of privatization in the sector, Etomi expressed confidence that the electricity market has evolved significantly over the past seven years. While acknowledging the challenges faced during the privatization process, he emphasized that valuable lessons have been learned and progress has been made. By building on the gains achieved and enhancing collaboration between upstream and downstream participants, the sector is poised for a bright future. Etomi stressed the importance of consolidating efforts and laying the groundwork for a sustainable and efficient electricity market in Nigeria. As Nigeria looks towards 2023 with optimism and a renewed focus on improving power supply across the country, the introduction of the automated trading platform signals a new era of innovation and efficiency in the electricity sector. The collaboration with Turkish energy and cement companies further underscores the potential for partnerships that will drive growth and development in the industry. With a commitment to leveraging technology and embracing best practices, Nigeria is poised to chart a new course for its electricity market, paving the way for a brighter and more electrified future for its citizens.