The Nigerian Electricity Regulatory Commission (NERC) has said that only 53% of the available (electricity) capacity is utilized in the country.
The NERC Vice Chairman/Commissioner Market, Competition & Rates, Musiliu O. Oseni disclosed this on Wednesday.
Oseni made the disclosure during his address to participants at the NERC’s Stakeholder Workshop on the Constitutional Amendment and Electricity Act 2023 from July 12-13, 2023.
“Only 53% of available (electricity) capacity is utilized in Nigeria due to challenges with gas supply, transmission and distribution constraints and commercial challenges,” he said.
“When it comes to nurturing the electricity sector, States face important choices that come with implications.
“It is important for them to adopt a collaborative mindset, focus on load growth, prioritize quality improvements, prioritize customer satisfaction and work towards improving liquidity. These considerations are key to supporting the sector’s growth and success.”
Also according to the Chairman/Chief Executive Officer (CEO) of NERC, Eng. Sanusi Garba, the new Electricity Act has the potential of transforming the entire electricity supply industry.
President Bola Ahmed Tinubu (BAT) in June signed Electricity Act 2023 was signed into law.
While former President Muhammadu Buhari signed a bill to take electricity off the exclusive list, the Electricity Act 2023 will provide a framework that will guide the post-privatization phase of the Nigerian Electricity Supply Industry (NESI) and encourage private sector investments.
The act mandates electricity-generating companies to either generate power from renewable energy sources, purchase power generated from renewable energy or procure any instrument representing renewable energy generation.
It enables states, companies and individuals to produce, transmit and distribute electricity promoting empowerment in the energy sector.
The act states that anyone may construct, own or operate an undertaking for generating electricity with a cap of o1MW in aggregate or as NERC may determine from time to time, without a license.
It mandates the National Electricity Regulatory Commission (NERC) to regulate the sector in Nigeria but also mandates them to transit regulatory duties to states who have adopted the bill and established their own regulatory commissions.
The act grants lawmakers the power to carry out oversight responsibilities and function over the NESI through its respective committees on Power in the Senate and House of Representatives.
