How power supply can improve – Expert

An expert on power, Mr Lanre Elatuyi has called for a defined policy direction from both government and stakeholders to achieve stable electricity supply in the country.

Elatuyi, who is an electricity market analyst, made the call in an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday.

He said that there had to be a defined policy direction of what we want to achieve as a country, especially in the power sector and “I think that is a challenge.

“We want to do almost everything at the same time without having a focus on what exactly we want to achieve,” he said.

According to him, it is quite unfortunate that we are still where we are in spite of the huge investments in the sector from the government and stakeholders.

“We have to acknowledge the fact that this is an industry that is very capital intensive, so a lot of fund is needed.’’

Elatuyi also said that the privatisation of the power sector 13 years ago was to bring in private investments so that government could hand off some parts and allow private investors into the market.

He said that in spite of the move, the sector had not really grown as much as expected in terms of market development.

“The ultimate aim of allowing competition in the market at the time of privatisation has not been achieved,’’ he said.

“So, the challenge in the power sector is a systemic failure. We can’t blame one arm; maybe we can blame the government in terms of policy.

“We can blame the players in terms of service delivery, and we can also blame the consumers in terms of energy theft and payment apathy.

“I don’t want to isolate any market player,” he said.

Another problem being faced by the industry according to the expert is that of liquidity.

“When we sell, generate and distribute electricity, the payment collection has been so weak and that also impedes investment in the sector,” he said.

According to him, there is an on-going reform as provided by the Electricity Act 2023 that has given autonomy to states to legislate in the electricity market.

“The essence is to take ownership of power business from the exclusive oversight of the Federal Government and let states see how they can regulate power in their respective domain and see what can be done.’’

Elatuyi also urged the power generation and distribution companies to adhere to the market rules to fulfill their commitment to the consumers.

“Consumers should also play their part and there should be tight regulation in place, and anyone found not abiding by the rules should be punished,’’ he said.