Nigeria@62: Experts want power sector privatisation reviewed

Some experts in the power sector have appealed to the Federal Government to review privatisation of the power sector to allow for more competition in the electricity market.

The experts made the appeal in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

According to Mr Kunle Olubiyo, the president, Nigeria Consumer Protection Network, by 2023, it is expected that the privatisation will be reviewed as the license circle for the process is 10 years.

Olubiyo said that by 2023, the second round of the privatisation process would be put in place.

”When the second round of the privatisation is put in place, no  Distribution Company (DisCo) will have monopoly of the electricity market.

”With the present privatisation process, no competition, no investment in the electricity sector market.

”If the next round of privatisation process is to be carried out, it should be done in such a way that it will promote competition and attract direct investment in the electricity market,” he said.

Olubiyo appealed to the Federal Government not to go back on the review of the privatisation.

This according to him, is so that before Nigeria’s next Independence anniversary, the process would have been reviewed and more serious investors would be brought into the market.

Also speaking,  Mr Princewill Okorie, the Coordinator, National Association for Public Policy Analysis (APPA), said that the power sector privatisation had not produced the expected result.

Okorie said that the interest of the electricity consumers were not protected during the whole process of privatisation.

”The larger consumers of electricity are not favoured in the process as most of them are still on estimated billing.

”The number of people metered is insignificant compared to the numbers of those not metered across the country.

In as much as attention is given to generation,  transmission and distribution, attention should also be given to consumers for the sector to work, ” he said.

NAN recalls that the power sector was privatised in November 2013, with six power generation plants and 11 electricity distribution companies handed over to the private sector.

The Federal Government, however, retained control of the Transmission Company of Nigeria (TCN).

The sector was unbundled and partially privatised to establish a competitive market intended to improve management and efficiency, attract private investment, increase generation, and provide a reliable and cost-efficient power supply.