Any effort to sustain the noticeable improvement in power generation which has seen a leap from 3,000 MW recorded in May 2015 to 7,000 MW in 2017 must be hinged on collaboration of all stakeholders in the sector. Industry experts have advised.
Recent report indicate that power generated has gone up to 7,000 MW in 2017 from 3,000 MW recorded in May 2015; transmission capacity stands at 6,900MW in 2017 from about 5,000 MW in May 2015.
Analysts opine that it is imperative that the government through the right policy and programmes encourage core investors to inject significant capital to sustain the value chain and by so doing address the challenges that have hampered the growth of the sector.
Babatunde Fashola, The Minster of Power, Works, and Housing Power, it will be recalled said government and stakeholders had increased power supply in the last three months, adding that Nigerian’s experience of power supply in the dry weather was better.
Fashola while speaking at the23rd monthly power sector meeting in Lafia, Nasarawa State recently said the impact of the mini-grid regulations presented a few months ago by the Nigerian Electricity Regulatory Commission (NERC) had begun to manifest.
He however pointed out that something needs to be done with the entire value chain, from tariff to metering to energy conservation, consumer education, to the payment of debts by ministries and departments and ordinary consumers, and all are contained in the power sector recovery programme.
A cursory look at Nigeria indicates that the entire electricity sector still grapples with huge revenue shortfalls. According to industry experts the implementation of cost reflective tariffs, access to long-term debt capital and equity injection, will still not address the revenue shortfall to the system in the short term.
Energy operators however argue that considering the importance of power as the fundamental ingredient for the growth of any economy, getting all the parts to work in sync is crucial.
Industry close watchers further disclosed that operators across the power sector value chain are faced with huge operational challenges, which are clearly visible in their operations and service delivery.
Wumi Iledare, an energy expert is of the view that stable electricity supply would encourage more investors to set up businesses in Nigeria adding that the provision of enabling environment through viable policies is the best option to sustain the current power supply milestone.
Iledare further urge Government to create a conducive environment that will allow potential power investors to thrive across the generation, transmission and distribution value chain of the sector.
Analysts also tasked government to go into Public-Private Partnership (PPP) as a means of strengthening the investment prospect of the power industry as this is guarantee long term growth of the power supply gains.