THE Lagos State commissioner for Energy and Mineral Resources, Biodun Ogunleye, has met the leadership of Transmission Company of Nigeria ( TCN) in Abuja to explore more opportunities in the new Electricity Act.
The TCN confirmed to The ICIR on Wednesday, November 20, that the meeting followed the state government’s expectation of the Nigerian Electricity Regulatory Commission (NERC)’s order on the transfer of regulatory oversight of the electricity market in line with the Electricity Act.
The Electricity Act, 2023 (“the Act”) was signed into law by President Bola Ahmed Tinubu, on 6 June 2023. The Act was passed in light of the Federal Government’s initiatives to accelerate Nigeria’s energy transition process as well as consolidate the regulation of the Nigerian Electricity Supply Industry (NESI) for optimum functionality and effective service delivery.
Welcoming the delegation, led by the commissioner for energy and mineral resources, Biodun Ogunleye, TCN’s managing director/chief executive officer,. Sule Abdulaziz, an engineer, assured of TCN’s support as Lagos prepares to take up regulatory responsibilities under the new Electricity Act.
In his remarks, Ogunleye said the purpose of the visit was to seek TCN’s collaboration to improve power supply in the state as well as tap into the company’s huge resources.
THE ICIR reported how state governments could attract more investments into Nigeria’s power sector and improve access to electricity in their respective states with the 2023 Electricity Act.
The Act consolidates all legislations dealing with the electricity supply to provide an ideal institutional framework to guide the post-privatisation phase and encourage private sector investments in the sector.
The primary aim of the Act, as stated in its first section, is to create a comprehensive legal and institutional framework to guide the Nigerian electricity supply industry (NESI).
Nigeria has been having energy supply challenges, with about 86 million people unconnected to the national grid and lacking access to electricity.
The electricity sector has remained stagnant over time with the government still paying subsidy of N70 billion annually to keep the sector afloat, despite privatisation.
Already, Osun, Enugu, Lagos, Akwa Ibom, Rivers, Delta, and Kogi are among states have commenced the implementation of the Act.
The implementation ushers the respective states into a new era of decentralised electricity market regulation, devoid of the Federal Government’s monopoly.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.