Reps decry power sector absymal performance

Yakubu Dogara, Speaker of the House of Representatives, has pledged the House resolve to synergize with the Executive in the bid to find a permanent solution to the power generation and distribution challenges in Nigeria and halt estimated sum of $5 billion spent yearly on generators.

Dogara who spoke during the public hearing on the bill to amend Electric Power Sector Reform Act, 2016, tasked relevant regulatory agencies on the need for paradigm shift in their operations.

He also expressed optimism in the country’s potential of attaining self-sufficient by harnessing energy resources such as wind, solar, hydro, biomass, bio-fuel, landfill, sewage gas, solid waste, geothermal energy, ocean energy, among others.

The Speaker also explained that the House of Representatives is reviewing some of Nigeria’s energy laws in order to provide an appropriate legal framework that will facilitate the exploitation of renewable energy to the benefit the Nigerian economy.

“Power is arguably the single most important driver of the national economy. Indeed, it is difficult if not impossible to imagine modern life without power. Our industries and factories need electricity to run; and so do our offices, homes and businesses.

“It is estimated that Nigerians spend about $5 billion yearly to fuel their generators. This is an unacceptable situation and the House of Representatives stands ready to support the Executive arm of government to put a stop to this state of affairs.

“Renewable energy is a source of clean energy which is environmentally friendly and is crucial to the economy of the future. We can only be self-sufficient in the energy field when we combine all of our energy resources such as wind, solar, hydro, biomass, bio-fuel, landfill, sewage gas, solid waste, geothermal energy, ocean energy etc. Renewable energy sources are natural and often replenishes itself. Nigeria needs to invest more in renewable energy as fossil fuel is a diminishing asset.

“An appropriate legal framework to exploit renewable energy which is nature’s gift to mankind is not adequate in Nigeria. This makes it difficult to organise the sector in a commercially viable matter. Herein lies the merit and strength of this Bill under consideration,” Dogara said.

On his part, Babatunde Fashola, Minister of Power, Works and Housing has applauded the establishment of Renewable Energy Fund in Nigeria.

Fashola who was represented by Louis Edozien, Permanent Secretary of Federal Ministry Power,  emphasised the need for holistic review of the legislative frameworks governing the power industry.

According to him, the 12 year old law has triggered transformation of the Nigerian power sector from a state monopoly to competitive electricity market.

Fashola explained that the fund to be used as equity participation in renewable energy projects, should exclude the Commission as a player, which regulates the sector.

He however proposed that the fund should be managed by the NERC not Board, just as he solicited that the Commission should be allowed to determine the remuneration of its staff as a technical and institutional monitor of the power value chain.

“There is no doubt that establishment of a dedicated fund to renewable energy us a sound and pragmatic policy. It is however important, in our view, to critically review the provisions relating to the operation of the Fund as provided in the bill,” the Minister said.

In the bid to enforce extant laws governing the industry, Fashola said: “what is needed to ensure that the Act continues to provide an enabling legal framework for the power sector is holistic review. This is a review that will take into consideration the effectiveness, or otherwise of extant provisions in the light of our experience in the last one decade.

“Any amendment of the Act at this stage ought to take into consideration lessons learnt and challengers encountered in the course of implementing the provisions of the Act. The amendment is also expected to address some fundamental issues that are militating against the power value-chain.

“It is also important that the provisions that will be introduced will assist to strengthen the framework for power sector reform. For all the foregoing reasons and in order to ensure that maximum traction is gained from an amendment of the EPSRA, it is our humble position that we use the opportunity of this present bill to consider an exhaustive review of the bill,” Fashola stated.

 

KEHINDE AKINTOLA, Abuja