Nigeria targets tariff, DisCo audit, grid reforms

  • 28 January 2021 / News / 284 / Africa-Bi1

Nigeria targets tariff, DisCo audit, grid reforms

Nigeria’s Minister of Power, Sale Mamman, yesterday, hinted at targeted tariff reforms, an audit of electricity distribution companies (DisCos), the efficiency of the nation’s national grid, and sustainability of off-grid renewable solutions.

Increase in electricity tariff in the face of attempts by the government to stop subsidising power, where over N1.7 trillion had been spent, which attracted widespread condemnation in the past months

The national grid has also thrown up critical issues collapsing for over 120 times post-privatization even as DisCos make desperate attempts to halt the audit. 
Seven years after privatisation, Nigeria’s power sector has been struggling to perform, as infrastructure challenges cripple output dispatch from generation. Peak wheeled electricity has remained at an average of 3,500 megawatts. 

Consequently, an understanding with the United Kingdom may address the infrastructure deficit in the nation’s electricity sector.

Mamman, who met with a group of the United Kingdom Nigeria Infrastructure Advisory Facility (UKNIAF), in Abuja, said there could be technical support for Nigerian Electricity Regulatory Commission (NERC), Transmission Company of Nigeria (TCN), Rural Electricity Agency (REA), and Nigerian Bulk Electricity Trading Company (NBET)

The UKNIAF is regarded as a flexible rapid response UKAID-funded programme and implemented by Tetra Tech International

Recall that President Muhammadu Buhari and some of his officials and other stakeholders numbering over 70 were in London last year for the UK-Africa Investment Summit. The summit had reportedly helped the country to secure about £364 million investment between the two countries.  

In a series of tweets on his official handle, Mamman said the intervention would focus on power sector policy reforms, tariff reforms, DisCo audits, grid efficiency, and sustainable off-grid renewable solutions.
He said: “Most especially, helping the Nigerian Power Sector Market Evolution transition from the ‘Transitional Electricity Market (TEM)’ to the ‘Medium-Term Electricity Market (MTEM)’, which involves increased generation competition and limited retail competition.” 


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