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Market Digest Nigeria

Economy

Experts worry over the decline in power generation

Experts condemn 3,689MW power generation despite CBN interventions

Power sector experts on Monday expressed worry over the decline in power generation despite interventions by the Central Bank of Nigeria in the sector.

Figures released by the System Operator, an arm of the Transmission Company of Nigeria, showed that the country’s power generation stood at 3,689.2 megawatts on Monday.

Although it moved up by 111.9MW when compared to the preceding day’s generation figure, experts wondered why the performance of the sector had not adequately reflected the financial interventions made in the sector by the Federal Government.

“The decline in service is worrisome for the end users, despite the interventions,” the President, Nigeria Consumer Protection Network, Kunle Olubiyo, said.

The Vice President, Prof. Yemi Osinbajo, had said the Federal Government had through the CBN pumped about N1.5tn in intervention funds into the power sector in the last two years.

Nigeria’s power generation have continued to hover around 4,000MW for years, rising to 5,000MW at few peak periods, despite the Federal Government target to grow it to 7,000MW in 2021.

Reacting to this and the interventions in the sector, Olubiyo added, “With more money coming into the sector, there should no longer be excuses for the sector.  There should be no reason for lack of metering.”

He, however, observed that the financial discipline introduced by the CBN in the power sector had achieved desired results, especially in terms of transparency in revenue collection.

The CBN had last year directed Deposit Money Banks to take charge of the collection of electricity bill payments across the country.

Olubiyo said the initiative was a good step that would allow all the players in the market to closely monitor the revenue coming into the market.

“Right now, every stakeholder in the sector sees the revenue that comes in. There are different lines for expenditures, so government and other stakeholders can recover their money. This has helped in revenue efficiency and collection,” he said.

On his part, a partner at Nextier Power, Emeka Okpukpara, said the initiative by CBN had reduced financial liquidity in the sector and introduced transparency.

He said the plan had enabled players in the sector to have access to information but frowned on the poor power generation level in the sector

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