Electricity Market 10 Years Post-privatisation: Minister Threatens Sanctions Over Subpar Performance

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As Nigeria continues to grapple with the abysmal supply of electricity from the national grid 10 years post privatisation, the minister of power, Adebayo

Adelabu has threatened to revoke the licences of companies whose performances fall below standard, saying that he would rather move for commercialisation of the sector than privatisation.

The NERC chairman, who was represented by the general manager, Market Competition and Rates, Shamsudeen Mammud in his remarks during the opening session of the three-day conference, said that the licences of the operators will expire in 2028 and not in 2023 as earlier envisaged.“I want to make a clarification on the trending issue about the licence of the DisCos. It is all over, people are saying the licence will expire this year. The DisCos were given a 10-year licence.

“And I made mention that 10 years down the line the licences are expiring and it’s time for renewal. Renewal is not automatic. Any of the privatised companies that have not lived up to expectation will not have its licence renewed. The minister regretted that the state of things in the electricity supply industry is quite intolerable and the objectives of the privatisation have not been met.“The state of things in the Nigerian electricity supply industry years after privatisation is still unacceptable.

“For the performance-minded private sector, let me assure you that President Bola Ahmed Tinubu and I are committed to delivering adequate and reliable power supply to Nigerians for economic growth and job creation”. “The grid capacity has increased from just over 3000MW to typically just over 4,000MW today versus a 40,000MW target by 2020 that the Federal Government had set pre-privatization.”

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