Dedicated Financial Institution Urged for Energy Sector as Power Challenges Persist
In efforts to address the substantial investment gap in the power sector, the Nigerian Electricity Regulatory Commission (NERC) and power sector stakeholders are advocating for a dedicated financial institution tailored exclusively for the energy sector. This call emerged during the 14th edition of PwC’s annual power and utilities roundtable held in Lagos.
Mass Meter Manufacturing Critical for Power Enhancement
Vice President Kashim Shettima emphasized the pivotal role of mass-producing electricity meters in the federal government’s strategy to tackle the nation’s power challenges. Shettima made this statement during the inauguration of an electric energy meter manufacturing factory in Anambra State.
Government Warns Against Power Theft and Highlights Liquidity Dependency on Payments
Addressing the issue of power theft, the federal government warned consumers, stating that resolving the sector’s illiquidity challenges hinges on Nigerians paying for the electricity they consume. Minister of Power, Adebayo Adelabu, reinforced the government’s commitment to providing reliable electricity across households and businesses.
Advocacy for Dedicated Financial Institution
Panellists at the PwC roundtable stressed the need for a dedicated financial institution exclusive to the energy sector. This institution would play a crucial role in implementing the newly amended Electricity Act 2023, fostering investment, and supporting economic growth through effective power generation, distribution, and transmission.
Distribution companies highlighted challenges such as illiquidity, fluctuating foreign exchange rates, and theft hindering their ability to meet metering requirements despite the Electricity Act mandating them to provide meters for consumers.
Conclusion: Powering Nigeria Through Strategic Financial Measures
As the nation grapples with power challenges, the call for a dedicated financial institution gains prominence. With the Electricity Act 2023 as a catalyst for change, the power sector envisions overcoming hurdles through collaborative efforts, strategic investments, and a commitment to improving energy access across the country.
Source：thisdaylive.com
