Five years after the privatisation of Nigeria’s power sector, electricity distribution companies have still not met their various performance agreements, the Federal Government has said. Speaking through its agencies in the sector – Nigerian Electricity Regulatory Commission, Niger Delta Power Holding Company and Bureau of Public Enterprises, the government stated that power distributors had defaulted on several agreements since they took over the power assets on November 1, 2013.
This is coming as the National Union of Electricity Employees demanded that investors in the power assets should pack and leave the business if they do not have enough funds to revamp the utilities. The Managing Director, NDPHC, Chiedu Ugbo; Commissioner, Legal Licensing and Compliance, NERC, Dafe Akpeneye; Director, Energy Department, BPE, Yunana Malo; and Deputy President, South, NUEE, Christian Omoneh, wondered why Discos were defaulting in many aspects, while speaking at the Nextier Power Dialogue in Abuja. Ugbo stated that while power generation had recorded a huge success since the sector was privatised, distribution had not been impressive.
AfDB approves $200 million loan to support Nigeria’s rural electrification efforts – Pulse
The African Development Bank (AfDB) has approved a $150 million sovereign loan to the Federal government to finance the Nigeria Electrification Project (NEP). Rhoda Limbani Mshana, AfDB’s Chief Power Sector Regulations Specialist, PESR, in a statement issued on Monday, said the financing will support rural electrification efforts in Nigeria by facilitating private sector development and rollout of off-grid solutions, as well as the installation of dedicated power systems for Federal Universities.
The Africa Growing Together Fund (AGTF), a $2 billion facility sponsored by the People’s Bank of China and administered by the African Development Bank, has also approved a $50 million Loan to the Nigerian government to co-finance the project. According to the statement, the joint financing from the Bank and AGTF will support the government’s efforts to address critical energy access deficit in the country and catalyse achievement of universal energy access by 2030 target.
Amadou Hott, the Bank’s Vice President for Power, Energy, Climate Change and Green Growth, welcomed the Board’s approval of NEP, underscoring the importance of projects that leverage private sector investment into energy access solutions.