NESG creates market diagnostics, solutions framework for NESI

Chinyere Okoroafor

For an improved electricity industry and constant power supply across the nation, an analytical and solutions framework has been mapped out for the Nigerian Electricity Supply Industry, the Nigerian Economic Summit Group (NESG), has said.

This was necessary following recent issues from the Nigerian Electricity Supply Industry which has had a major effect on performance improvement.

In a statement signed by its Head, Corporate Communications, NESG, Mr Yinka Iyinolakan, the inconsistencies in the power sector has limited the growth and expansion of the Nigerian economy over the years.

It said that the recent postponement of the implementation of the new electricity tariff is evident that not much has changed in Nigeria’s electricity industry.

According to NESG, the Nigerian Electricity Supply Industry (NESI), has undergone fundamental changes over the past few years with the implementation of the government’s reform programme reputed to be one of the most ambitious privatization exercises in the global power industry.

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It said that some fundamental changes that has occurred in NESI over the years include the formation of the Power Holding company of Nigeria (PHCN) in 2005, unbundling of PHCN into 18 independent companies and commencement of 10 generating plants in 2016 to introduction of multi-year tariff order committee in 2008. Others include the shortlisting of firms for the acquisition of PHCN power assets in 2010 and privatisation of 11 distribution companies and 5 generation companies in 2013.

NESI has been in a vicious cycle and this has not allowed the industry to improve its performance, with the increasing liquidity crisis becoming a serious risk for the Nigerian banking sector.

According to the African Development Bank, Nigeria spends N5.075 trillion annually to power generators. The solution to the problems in Nigeria’s electricity sector is to create and operate a successful electricity market.

See the frame work here