- Constitutes committee to help address challenges in power sector
- Access to energy a fundamental right, not a privilege – Shettima
- Council gives states one week to submit report on state police
In a decisive move to address Nigeria’s recurring power grid failures, the National Economic Council has resolved to intensify the implementation of the National Electrification Strategy.
This is as Vice President Kashim Shettima who is Chairman of NEC told members of the Council that access to energy is a fundamental right and not a privilege because electricity is the oxygen of economic growth.
Accordingly, the Council has constituted a committee on National Electrification to help address the challenges in the power sector.
The formation of the committee was among decisions taken by NEC at the end of its 146th meeting on Thursday chaired by Vice President Kashim Shettima at the Council Chambers of the Presidential Villa, Abuja.
Highlights of the presentation were made known to journalists at the State House by the Ondo State Governor, Lucky Aiyedatiwa.
According to the governor, the committee headed by Cross River State Governor, Bassey Otu, is to work towards deepening states’ engagements within the Electricity Reform Act 2023 and the National Electrification Strategy and Implementation Plan.
Following a presentation by the Managing Director of the Rural Electrification Agency, NEC observed that Nigeria needs a reformed and diversified electricity system, noting that by empowering states, accessibility and affordability of electricity can be enabled, ensuring that all regions effectively meet their specific energy needs.
Members of the committee include Governors Dikko Radda of Katsina, Inuwa Yahaya of Gombe, Ademola Adeleke of Osun, Hope Uzodimma of Imo, and Caleb Mutfwang of Plateau States.
Others are Ministers of Finance, Wale Edun; Budget and Economic Planning, Atiku Bagudu; Power, Adebayo Adelabu; Special Adviser to the President on NEC and Climate Change; Special Adviser to the President on Power; Managing Director, Rural Electrification Agency, and Managing Director, Niger Delta Power Holding Company.
“The Council also received a presentation of the National Electrification Strategy and Implementation Plan (NESIP) by the Managing Director of Rural Electrification Agency (REA). The MD of the agency briefed the Council on the impact of its activities in providing rural electrification to institutions, healthcare facilities and business settings in the country.
“He highlighted the impact that they have been able to achieve in the areas of education by providing electrification for some of the higher institutions. For example, the one that was commissioned in 2019 benefiting over 9500 staff and students of Alex Ekwueme Federal University upgraded renewable energy system leading to enhanced educational infrastructure, foster sustainable learning environment with continuous energy supply to this institution
“In the areas of healthcare delivery, River State University Teaching Hospital was a beneficiary, Niger Delta University Teaching Hospital, Okolobiri, energized their healthcare centers with electrification and some other agricultural settlements, farm settlements that enjoy similar facilities in Ogun state.
“To further optimize their resources, they encourage private sector participation in renewable energy integration.
“They also sought full support and buy-in of the states by establishing state structure for NESIP and integration through the State Development Plan.
“The Council resolved that Nigeria needs a reformed and diversified electricity system, apart from the one from the national grid. It further observed that by powering states, accessibility and affordability of electricity can be enabled, ensuring that all regions can effectively meet their specific energy needs.
“Council, therefore constituted a committee on national electrification dedicated to deepening states engagement within the Electricity Reform Act of 2023 and the National Electrification Strategy and Implementation Plan”, he said.
Earlier in his address, Vice President Shettima maintained that access to energy is a fundamental right and not a privilege because electricity is the oxygen of economic growth.
According to a statement issued by his spokesman, Stanley Nkwocha, Vice President Shettima outlined issues before the Council that require urgent attention to include energy infrastructure, human capital development, creative industries, fiscal strategy, industrial innovation, and long-term development planning, describing them as foundational to the transformation Nigeria needs.
Shettima explained that it is for this that experts and stakeholders from some of the critical sectors have been invited to share their insights and contributions.
He stated, “The past few months of collapses in our national power grid compel us to reinforce the pace with which we are adopting and implementing the National Electrification Strategy. Energy access is a fundamental right, not a privilege. It is the oxygen of economic growth.
“Our blueprints must, therefore, strive to expand access, empower rural communities, and drive productivity, especially for MSMEs. I hope that our discussions today will inspire solutions to light up homes, power businesses, and fuel Nigeria’s industrial future.
“Whatever path we agree upon, it is clear that a private-sector-led distributed renewable energy generation approach is essential to increasing electricity access for households and small enterprises alike.”
The Vice President also urged the Council to take Nigeria’s creative industry seriously, saying it presents an avenue to redefine the nation’s economic trajectory.
According to him, “new technologies have not only amplified the global appeal of our arts, crafts, and culture but also opened up revenue streams and job opportunities for Nigerians.
“Our music, films, art, and cultural heritage are not just global symbols of Nigeria’s soft power but also vital engines of economic growth. We cannot afford to relegate the promise of turning creativity into wealth, empowering our youth, and positioning Nigeria as a hub of innovation and cultural excellence,” he added.
Meanwhile, the position of states on state police will be ready by the next NEC meeting.
Deliberating on the updated submission on the establishment of state police, Council mandated states that were yet to make their submissions on the subject matter should comply within the next one week to enable NEC to come up with a unanimous position on state police at the next meeting.
Providing details of Council decision in the establishment of state police and the response of state governments, the Bayelsa State Governor, Douye Diri, said three states and the Federal Capital Territory are yet to submit their position.
“Council was updated with the submission of the establishment of state police, and it was reported that 33 states have submitted their positions, while three states are yet to do so, and these three states are Adamawa, Kebbi and, incidentally, Kwara, which is the chairman of our forum, and the FCT, are yet to submit their positions.
“The council mandated these remaining states and FCT to make their submissions within the next one week, and resolved to present a consolidated states’ position on the state police to the National Economic Council at our next meeting,” Governor Diri said.
Council also deliberated on a range of other issues, including the critical funding challenges faced by the Revenue Mobilization, Allocation, and Fiscal Commission, and ratified the Board of the Nigeria Sovereign Wealth Investment Authority.
Minister of Budget and Economic Planning, Senator Atiku Bagudu who spoke on these presentations, revealed that the Council received a presentation from the chairman of the RMAFC on alternative funding mechanisms for the commission.
The presentation highlighted the RMAFC’s constitutional mandate to ensure equitable revenue allocation but underscored severe underfunding as a major obstacle to its effectiveness.
The Council acknowledged the funding challenges and directed its secretariat to study the commission’s financial proposal and assess the legal implications of the request.
“The Council appreciated the critical role of the RMAFC in ensuring equity and resolved to examine the quantum of funding required and the legality of the request to determine the next steps,” Bagudu stated.
He further said the Council was briefed on the outcomes of the National Council on Development Planning meeting, which was held in Lafia, Nasarawa State, from October 8 to 10, 2024.
Details of the memorandum presented during the meeting were shared with NEC members for further consideration.
In a significant development, NEC ratified the Board of the Nigeria Sovereign Wealth Investment Authority.
The Council reviewed the financial statement of the NSIA and commended the Board and Management for their stewardship.
“The Council recognized the importance of the Sovereign Wealth Fund in driving critical investments and approved the financial statement presented,” Bagudu said.
The Council also reviewed the nation’s account balances as of November 20, 2024, as presented by the Accountant General of the Federation. The balances were reported as follows:
Excess Crude Account: $473,754.57
Stabilization Account: ₦33.32 billion
Natural Resources Account: ₦26.85 billion.
Also the Council received a presentation on Special Agro-Processing Zones from its National Coordinator, Kabir Yusuf.
The programme is currently being implemented at varying stages in eight states of the federation namely; Kano, Kaduna, Kwara, Oyo, Ogun, Imo, Cross River, and FCT, under phase 1 of the Special Agro-Industrial Processing Zones.
Under the second phase, a total of 24 states were visited by the selection team to assess their readiness for the programme.
The implementation model is a government and private sector-led (SPV) arrangement hence, discussions are underway to partner with private developers & co-financiers on the project estimated to cost about $1 billion.
The SAPZ coordinating office is working out a multi-tranche financing arrangement to accommodate additional States over the next 3 years. It is structured in three tranches.
The SAPZ programme, however sought, from Council “Provision of intervention funds for each State’s ATC to boost production.
“Office of the VP to use its convening power in obtaining additional co-financing for the SAPZ phase 2 (SAPZ-2) states.
“Fast-tracking of the BADEA $300m multi-tranche financing for SAPZ-2 by the Federal Ministry of Finance.”
Resolution at the meeting includes “Council urged states to key into the programme and noted that the SAPZ will be a game-changer if states give it the necessary support and consideration.
“States to hold a special meeting with the Minister of Agriculture and the SAPZ management to address issues and requests made in the presentation by the SAPZ management,”the statement said.
A presentation by the Executive Vice Chairman/CEO of the National Agency for Science and Engineering Infrastructure showed the agency’s latest innovations and strategic initiatives including products like a solar irrigation pump, electric vehicles, coal-based fertilizer, NASENI solar home systems, and smart devices.
States were urged to leverage NASENI’s tailored support for manufacturing, industrial development, and access to public sector markets, alongside infrastructure and policy benefits to enhance economic growth.
In its resolutions, the Council directed NASENI to repair tractors and other agricultural machinery across the country and scale up the establishment of lithium battery factories in regions rich in raw materials.
