NESG proffers solution to power sector challenges
The Nigerian Economic Summit Group (NESG), has identified seven pillars needed to create a successful electricity market in the country.
The pillars include independent urban enumeration and revenue tracking, tariff structure overhaul, open metering space, and effective regulation and governance, contract and performance alignment, sustained infrastructure growth, and standardised industry data.
The group in a statement, yesterday, noted that there are quite a number of issues that have had a major effect on performance improvement in the Nigerian Electricity Supply Industry (NESI), which must be urgently tackled.
He said addressing the power failure to move the country forward is pertinent, given the planned electricity tariff hike amid the projection of looming global recession by the International Monetary Fund (IMF).
NESG noted that the NESI has undergone fundamental changes over the past few years following the government’s privatisation of the power sector at a cost of over $3 billion.
This, the Group said, threw the NESI into a vicious cycle, which has not allowed the industry to improve its performance, with the increasing illiquidity crisis becoming a serious risk for the Nigerian banking sector.
The group, which revealed the report by the African Development Bank that Nigeria spends about N5.075 trillion annually to power generators, said the solution is for the country to create and operate a successful electricity market.
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