The Speaker of the House of Representatives, Hon. Abbas Tajudeen, has assured of the commitment of the House to transforming the Nigerian power sector into a model of efficiency and sustainability is unwavering.
The Speaker stated this on Tuesday in Abuja at a two-day dialogue on the Nigerian power sector.
He said their discussions at the forum are set against the backdrop of significant challenges and remarkable opportunities within our power sector.
The Speaker noted that the government’s objective is clear – to foster a resilient, efficient, and sustainable power sector capable of supporting the nation’s ambitious economic and developmental goals.
Abbas stressed that historically, the Nigerian power sector has grappled with challenges that have stifled its growth and hampered its efficiency.
He explained that these challenges include inadequate generation capacity, dilapidated infrastructure, frequent disruptions in power supply, and financial inefficiencies that have eroded the sector’s viability.
The Speaker pointed out that the inadequate metering and the consequent revenue losses have perpetuated a cycle of debt and underinvestment that has undermined the sector’s potential.
His words: “The shift towards a multi-tier electricity market represents a strategic pivot in our approach to power sector reform. This model envisages a structured market segmentation that allows for differential pricing and service levels tailored to diverse consumer needs and capacities.
“It promises enhanced efficiency through competitive practices, encourages investment by delineating clear market segments, and improves reliability and service delivery across the board.”
The Speaker, however, stressed that despite the much-touted benefits, the transition to a multi-tier market is challenging.
These, he said, included regulatory complexities, the need for substantial capital investment, the risk of market segmentation leading to disparities in service quality, and resistance from different stakeholder groups due to changes in tariff structures.
The Speaker was of the opinion that critical problems within the electricity value chain need to be addressed, adding that echnical and commercial losses, which have not been effectively tackled, add inefficiencies that consumers are indirectly forced to cover, contributing to the cost recovery efforts, saying these losses amount to billions of naira.
He assured that he would sponsor a Bill to provide administrative procedures that entrench proper consultation and legislative review of process for tariff setting in Nigeria’s electricity and other public services.
The Speaker said a phased implementation that involves the graduate introduction of market tiers allows for adjustments and learning, stressing that continuous engagement with all stakeholders was critical to ensuring that the reforms meet the diverse needs of the population and maintain public trust.
“Our commitment to transforming the Nigerian power sector into a model of efficiency and sustainability is unwavering. Despite the challenges, together as stakeholders, we can achieve a reformed power sector that drives national growth and enhances the quality of life for all Nigerians,” he said.