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FG targets manufacturers, others in new electricity pact with Turkey

By Kingsley Jeremiah, Abuja
07 September 2022   |   3:06 am
The Federal Government is wooing more investors into the Nigerian power sector following a move by Turkish Energy Firm EXIST – (Energy Exchange Istanbul) to invest in sustainable energy for manufacturers and other sectors of the nation’s economy.

The Federal Government is wooing more investors into the Nigerian power sector following a move by Turkish Energy Firm EXIST – (Energy Exchange Istanbul) to invest in sustainable energy for manufacturers and other sectors of the nation’s economy.

In the face of growing liquidity crisis and tariff deficits, the new pact signed with the Nigerian Bulk Electricity Trading Plc, is expected to also address issues relating to the sustainability of electricity markets in the country.

Speaking at the event, Finance Minister, Ms Zainab Ahmed, lauded the deal, stating that the move would transform the electricity market in the country.

Ahmed, who is also Chairman of NBET Board of Directors, said: “EXIST has reached an admirable stage. We also want to establish electricity markets by providing the necessary transformation in our country. We want to cooperate with you on this journey by walking hand in hand.”

This is coming barely a few days after the Vice-President Yemi Osinbajo inaugurated the governing board of the Nigeria Electricity Liability Management Company (NELMCO), stating that the tariff shortfall in the electricity, now estimated at over N800 billion would be addressed.

Chief Executive Officer of NBET, Dr. Nnaemeka Ewelukwa said the pact would go a long way in re-positioning NBET for enhanced performance in the Nigerian electricity market and consolidate on its accomplishments.

“The key aspects of the cooperation would see NBET strategically leveraging on cutting edge technology to chart a new course in its commercial transactions in the electricity market. It will ultimately pave the way for more power investments in the country and deepen competition in the market, with greater value delivery to participants in the market,” he noted.

He said the trading company would also synergise with EXIST in developing a framework for upscaling sustainable investments in renewable energy in line with the Federal Government’s commitment to diversify the country’s energy mix and transition to a low-carbon economy.

Eweluka’s team noted in a release that the corporation also aligns with the company’s long-term plan of leading Nigeria’s renewable energy push in line with its mandate.

The release further noted that the cooperation agreement covers the transfer of experience and business knowledge, and the design of a functional trading structure for the Nigerian Electricity Supply Industry (NESI)

“Turkey has a large and growing manufacturing base which requires an increasing amount of power generation. The yearly growth rate in additional power generation capacity has been around five per cent due to the increasing economic activity and a rising population in Turkey. With this partnership, the NESI can leverage on the EXIST experience towards the design and implementation of policy frameworks that will ramp up energy solutions to the manufacturing sector and other vital economic sectors towards increasing the GDP of Nigeria and improving the living condition of its people,” Ewelukwa said.

This is coming on the heels of a memorandum of understanding (MoU) signed by the Nigerian Bulk Electricity Trading Plc. With EXIST to boost cooperation and knowledge exchange between the two countries. The cooperation agreement, signed between NBET and EXIST at its campus in Maslak, Turkey, is designed to explore mutually beneficial opportunities for growth between both agencies.