Electricity Act 2023: MAN tasks FG on adequate security infrastructure

COMFORT EKELEME

The Manufacturers Association of Nigeria (MAN) has stressed the need to tighten the security infrastructure, saying no investor wants to do business in a terrorized economy.

According to MAN, this is important to avoid truncating the potential benefits of the Electricity Act 2023, adding that signing of the Electricity Act 2023 is a major step towards the right direction.

Coming after the removal of subsidy, MAN said, this is another reflection of the boldness and commitment of the new administration towards the diversification and decentralization of the power sector.

Giving its position on the Electricity Act 2023, the association maintained that empowerment of the State governments and private investors, the adoption of renewable energy and the reformation of the governance structure of the power sector are capable of driving investment, improving electricity access and fostering economic growth.

In order to avoid truncating the potential benefits of the Electricity Act, MAN, urged the federal government render legal, financial and technical supports to state governments yet to establish electricity market laws.

MAN also said that state governments should partner with existing agencies and operators in the power sector as the costs of building new power distribution networks can render the investment less lucrative, streamline NERC and states’ regulations to avoid bottlenecks for multistate investors.

The Association further maintained that there is need to address the uneven distribution of gas to avoid delay in states’ execution of mega-power projects.

“While states concentrate on small confined democratized power supply systems, there is need to have in the pipeline a long-term plan of ensuring operational efficiency of the national grid.

“The success of the Act largely rests on its effective implementation. Therefore, new President should appoint a committed and incorruptible Minister of Power that has broad experience of the operations and politicking within the power sector.

“The power sector is highly capital-intensive. Therefore, there is need to reduce the lending rate to encourage private investments in min-grids and renewable energy.

“Quickly and adequately address the hitches surrounding the fuel subsidy removal by providing transparent palliative measures and socio-economic infrastructure that directly and immediately mitigate its untold hardship on businesses and the masses,” MAN said.