- Says challenges facing sector complex, extend beyond finances
- Armed men damage power transformer in Kogi
- FCCPC warns Ikeja, Eko DisCos to halt meter replacement
The Federal Government of Nigeria has revealed plans to collaborate with the private sector to raise a portion of the $10bn required to ensure a consistent and reliable electricity supply across the country.
This initiative is part of the government’s broader strategy to address the nation’s chronic power supply challenges and is expected to take five to ten years.
This was the focus of discussions when the Director General of the Infrastructure Concession Regulatory Commission, Jobson Oseodion Ewalefoh, paid a courtesy visit to the Minister of Power, Adebayo Adelabu, in Abuja.
A statement by the Acting Head of Media and Publicity, Ifeanyi Nwoko, on Wednesday, revealed that the two officials agreed that given the funding and technical requirements necessary to advance Nigeria’s power sector, it had become imperative to seek private sector involvement through Public-Private Partnerships for co-financing and expertise to ensure optimal performance of power infrastructure.
Last week, the power minister ordered the immediate replacement of ageing equipment as part of recommendations to prevent the frequent collapse of the national grid.
He added that additional funding would be required from the 2024 Supplementary Budget and the 2025 Appropriation Bill to resolve the financial implications of strategies needed to curb the ongoing grid collapse.
During the meeting, the minister revealed that Nigeria requires at least $10bn over the next ten years to achieve a 24-hour power supply across the country.
He said, “To achieve a 24-hour power supply across Nigeria within the next five to ten years, a minimum funding of $10bn is required. The government cannot shoulder this alone given the pressing financial needs of other critical sectors.
“Can the government do it alone? No! This is why we need to marshal private sector funds while still retaining government interest and ownership. This is where ICRC comes in. We need to collaborate with the private sector, and the best way to do this is through concessions.”
Reacting to the minister’s statement, the Director General said that through its regulatory processes, the ICRC could facilitate private sector investment in part of the $10bn required to improve the power sector, attract more foreign direct investment into other sectors, and ultimately stimulate economic growth.
The ICRC Director General acknowledged that while funding is crucial, the challenges facing the power sector are complex and extend beyond finances.
However, with inter-agency collaboration and private-sector involvement, these limitations can be addressed.
He said, “Revamping the power sector requires planning, investment, and time. We need to collaborate to resolve the issues in this sector. The investment required is vast, and the government cannot fund it alone, so we must leverage the private sector’s financial capacity. That is why the ICRC was established—to regulate this leverage.”
The Commission is committed to regulating the processes of attracting investment into the power sector.
He commended the minister for his extensive knowledge of the sector and stated that President Bola Tinubu’s choice of him was commendable.
Ewalefoh said that to accelerate PPP investment as directed by President Tinubu, the Commission had issued a six-point policy direction, which has streamlined the PPP process for service delivery.
The Director General stressed that although the processes have been streamlined to accelerate project delivery and encourage investors to adopt PPP models, the Commission remains vigilant in its regulatory function to prevent contingent liabilities or unnecessary delays by companies lacking the necessary capacity.
Ewalefoh also noted that the Commission now insists on incorporating conditions precedent into all PPP agreements, stipulating that any preferred bidder who defaults on the terms of the agreement will have their contract automatically nullified.
Armed men damage power transformer in Kogi
Suspected bandits attacked the construction site of the 330/132/33kV transmission substation in Obajana, Kogi State, causing extensive damage to critical infrastructure.
The Transmission Company of Nigeria confirmed the incident in a statement from its General Manager of Public Affairs, Ndidi Mbah, on Wednesday.
According to TCN, the attackers struck on Tuesday, November 12, 2024, at around 11:55 PM, opening fire and forcing security personnel to flee.
A 150MVA power transformer intended to enhance power supply to Kogi State and neighbouring areas, sustained significant damage, including a ruptured radiator.
The new Obajana Transmission Substation, which is designed as a 1X150MVA 330/132/33kV capacity substation, is scheduled to significantly enhance power supply to Kogi State and surrounding areas upon completion.
The statement read, “The Transmission Company of Nigeria announces that armed men invaded the construction site of its ongoing 330/132/33kV transmission substation in Obajana, Kogi State.
“The attack occurred on the night of November 12, 2024, at approximately 11:55 PM.
“According to reports from security personnel at the site, the assailants opened fire indiscriminately, causing the guards to flee.
“During the attack, a 150MVA 330/132/33kV power transformer, already positioned on its plinth, was struck, resulting in a burst radiator.”
The statement added that the company, in response to the incident, had commenced an evaluation of the damaged equipment.
It said, “In response to the incident, TCN is evaluating the level of damage in collaboration with the contractor managing the project.
“This incident is part of a broader pattern of vandalism targeting transmission infrastructure across the country.”
Last Sunday, the company expressed concern over the increasing trend of vandalism targeting transmission lines and towers, which is severely impacting the country’s power infrastructure.
This concern followed a fresh attack on its 330kV Lokoja–Gwagwalada transmission line one, with the vandal’s damaging transmission towers T306, T307, and T308.
“The growing trend of vandalism targeting transmission lines and towers has become a serious challenge, severely impacting the country’s power infrastructure and hindering the expansion and stability of the national grid. This recent incident adds to an alarming pattern of attacks on the transmission network nationwide.
“Vandalism of power installations is a disservice to us all and undermines efforts to strengthen the nation’s transmission system,” it stated.
FCCPC warns Ikeja, Eko DisCos to halt meter replacement amid compliance concerns
Meanwhile, the Federal Competition and Consumer Protection Commission has issued a stern warning to Ikeja and Eko Electricity Distribution Companies to immediately cease plans to replace some meters.
In a Wednesday statement by its Director, Corporate Affairs, Ondaje Ijagwu, the consumer protection body emphasised that any breach of its directive would lead to severe penalties.
Last month, the commission stepped in to address the growing concerns surrounding the planned phase-out of Unistar prepaid meters by the DisCos.
It urged the DisCos to absorb the cost of replacing the obsolete meters without passing on additional charges to consumers.
In its Wednesday statement, the FCCPC addressed rumours suggesting that DisCos might defy its order, originally issued to prevent any unauthorised meter replacements that could negatively impact consumers.
The FCCPC reaffirmed that its mandate remains in effect, noting that recent approvals for new meter prices from the Nigerian Electricity Regulatory Commission bear no relation to the Unistar replacement plans.
It said both regulatory bodies, FCCPC and NERC, have invalidated the replacement programme, and no indication of non-compliance has emerged from the DisCos thus far.
Ikeja and Eko DisCos are permitted to replace meters only by NERC’s Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters (Order No. NERC/246/2021).
The guidelines stipulate that meter replacements must proceed without service disruption, at no additional cost to customers, and with assurances against estimated billing during the replacement period.
“It is essential to clarify that Ikeja and Eko DisCos cannot proceed with the withdrawal or replacement of the Unistar meters unless they fully comply with NERC’s Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry (Order No. NERC/246/2021).
“The order mandates that meter replacements must be prompt, without disrupting service and at no cost to the consumer; and ensuring that consumers are not subjected to estimated billing due to delayed installations.
“The FCCPC’s position remains clear: non-compliance with these directives by Ikeja and Eko DisCos will not be tolerated. Any breach of this directive will attract stiff penalties in line with the provisions of existing consumer protection laws,” it said.
The FCCPC urged consumers to report any attempts by the DisCos to contravene this directive via its dedicated electricity consumer hotline, reinforcing the Commission’s commitment to protecting consumers from unfair practices.
