Revamping Nigeria’s power sector strategy

Nigeria’s Minister of Power, Adebayo Adelabu, is focused on achieving short-term wins in the country's power sector by adopting a bottom-up approach to ensure an adequate supply of power. During a recent interview on CNBC Africa, George Etomi, Chairman of West Power and Gas, shared insights on how collaboration amongst stakeholders is essential to the success of the sector's transformation. The conversation delved into the challenges faced by the sector, including the complexities of the national grid, issues with metering, and the importance of sustained engagement with regulators. One of the key themes that emerged from the interview was the emphasis on collaboration as a critical factor in the successful implementation of the government's new electricity act. Etomi highlighted the need for all stakeholders, including state governments and distribution companies, to work together to avoid potential conflicts that could arise from the multiplicity of regulators. He stressed the importance of careful planning and collaboration to ensure the smooth execution of the new regulations. Three key points were discussed during the interview: 1. Addressing the Challenges of the National Grid: The national grid in Nigeria faces a myriad of challenges, including issues with gas supply, technical constraints, and unpaid cost-reflective tariffs. Etomi emphasized the need to explore alternative methods of power supply, such as off-grid solutions like solar and hydro power. However, he noted that significant investments are required to make these alternatives viable and sustainable. 2. Metering Gap and Upgrades: The conversation also touched on the ongoing challenges with metering in Nigeria, with an estimated gap of eight million meters. Etomi explained that metering is a continuous process, as the number of consumers keeps increasing. He highlighted the National Mass Metering Program (NNMP) as a positive step towards addressing the metering gap and ensuring that consumers receive reliable electricity supply. 3. Importance of Sustained Engagement: Etomi underscored the significance of sustained engagement with regulators and sector leaders to drive progress in the power sector. He emphasized that the expertise and experience of existing sector leaders are valuable in developing effective strategies for sector reform. By creating an enabling environment for investment through policy pronouncements and contract sanctity, Nigeria can attract the much-needed capital to drive the sector's transformation. In conclusion, Etomi emphasized the importance of collaboration, sustained engagement, and strategic investments in revamping Nigeria’s power sector. By working together towards common goals and leveraging the expertise of industry leaders, Nigeria can overcome the challenges in the sector and achieve its ambitions for a reliable and sustainable power supply.