By ABAH ADAH, Abuja
Managing Director and Chief Executive Officer, MD/ CEO, Azura Independent Power Plant, IPP, Edu Okeke, has stressed the need for a robust enabling environment to attract more private sector investment in addressing the challenges in Nigeria’s power sector for sustainable growth.
Okeke stated this while delivering his keynote address at the 4th Power Correspondents Association of Nigeria, PCAN, annual workshop on Thursday in Abuja.
He advocated a situation whereby people could have sustainable investment in the sector without the bottleneck of guarantee, as well as recapitalisation of the distribution companies, DisCos, to enable them perform optimally.
According to Edu, for a plausible change in the power sector, the DisCos have to be adequately recapitalised, saying as it is now many of them struggle under huge debt burden.
Recommending that the government should remove the debts from the DISCOs’ books and increase their capitalisation to $500m, Okeke opined that no DisCo should be allowed to operate without at least $250m in shareholder funds.
“For any investment in the power sector to be viable, investors must be assured of cost recovery. There are only two ways to achieve this: either the government pays or consumers do. I commend the government’s recent decision to transfer costs to consumers, starting with Band A”, he said.
Speaking earlier, Minister of Power Adebayo Adelabu reaffirmed the commitment of the President Bola Ahmed Tinubu-led administration’s commitment to sector transformation that ensure steady power supply for the people.
Represented by the Director, Renewable and Rural Power Access department of the ministry, Engr Sunday Owolabi, the Minister stressed that the government’s policies are focused on ending the challenges facing the country’s electricity transmission, distribution and generation sub-sectors.
“The theme of this year’s conference, “The Power Sector, “Ending the Talk, Time for Action”, is not only timely but crucial for the growth and sustainability of our nation’s energy future.
“For many years, we have had discussions, deliberations and strategic dialogues on the challenges facing the power sector. We have heard the calls for reform, the promises of growth, and the visions of a brighter energy future.
“Yet, it is clear that words alone will no longer suffice. We have reached a pivotal moment where the time for action has arrived. Our citizens, industries, and economy can no longer wait for promises; they demand results.
“The government remains fully committed to transforming Nigeria’s power sector through meaningful and actionable reforms. We are focused on ensuring that our policies are not only visionary but also practical, impactful, and sustainable.
“From the ongoing efforts to address infrastructure gaps, enhance power generation, and improve transmission networks, to the vital reforms in distribution and the full implementation of the electricity market, we are resolute in our mission to improve the power supply for every Nigerian.
“As we transition from words to action, I call on all stakeholders, including investors, regulators, and yes, the media, represented here by the Power Sector Correspondents Association to play their critical roles in this transformation. Your work in informing the public, holding us accountable, and providing constructive feedback is essential as we strive to build a resilient power sector that meets the needs of our growing nation.
“Let us be clear: the road ahead will not be without challenges, but it is a road we must walk together. By embracing innovation, strengthening collaborations, and focusing on implementation, we will make the transition from talk to action,” the Minister said.
In his welcome address much earlier, the Chairman of PCAN, Obas Esiedesa, said the workshop was organised to chart a new course for the country’s power sector.
He said, “As journalists covering the power sector, we are concerned that the sector has seen more discussions than actual progress. Despite the constant dialogue, each step forward often seems to bring about setbacks.
“Our concerns are heightened by the fact that these issues persist despite the Service-Based Tariff and the increased tariffs for Band A customers.
“As journalists, we find the state of the sector disheartening, and I believe I speak for many when I say that we cannot be silent. “Today’s workshop is a call to action. We are here to discuss meaningful ways to move forward, and I am glad to see so many industry leaders in attendance”.
