NERC, others seek solution for Nigeria’s electricity crisis

NERC

•Stop buying wire, transformers, NERC tells consumers
The Nigerian Electricity Regulatory Commission (NERC), the Chief Justice of the Federal and other judges as well as the National Assembly, yesterday, in Abuja stressed the need to strengthen the legal framework to address the challenges facing the power sector.

Speaking at a three-day seminar for Judges at the National Judicial Institute (NJI), the Chief Justice of Nigeria, Olukayode Ariwoola, stressing on the need to prioritise electricity, said the judiciary would work with the sector to guarantee projected growth and investor confidence.


Represented by the NJI Administrator, Justice Salisu Garba, Ariwoola said NERC must ensure that its obligation and policies are in harmony with the provision of the electricity act.

He also urged for clear market guidelines that would enable the sector to thrive.

“Electricity sector is one that is very important to our dear nation and one that has far-reaching implications for the growth and prosperity of our country,” Ariwoola stated.

The CJN also stressed the need to prioritize alternative dispute resolution, adding that the judiciary would play its role and ensure that there is confidence in the sector.

Chairman of NERC, Sanusi Garba, noted that the key objectives of the seminar were to stimulate a discourse on emerging legal issues relating to the Nigerian Electricity Supply Industry (NESI) and to ensure that the judiciary understands the recent changes in the regulatory landscape.

Sanusi said while the NERC makes regulations, codes and hears cases, the judiciary remains critical to the growth of the sector.

Referring to a situation where the courts ruled against tariff increase, Sanusi said the consequences of the injunction led to a huge liquidity crisis.

Chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe, said the new electricity step would improve the nation’s electricity sector.

He noted that the development would strengthen a dual role in developing the sector.

According to him, collaboration between the federal and state governments towards implementing the multi-tier electricity market; he added that this would require a lot of partnerships with the judiciary.


While electricity consumers are still buying transformers, wires, poles and meters, NERC Commissioner, Consumer Affairs, Aisha Mahmud insisted that it is not the role of the consumers to do so.

“We must make it clear again that it is not the responsibility of the consumers to pay for any asset in the electricity sector. We have made that clear in one of our regulations which is the investment in electricity network regulation.”

“There are agreements that Nigerians could sign with the Distribution Companies to partner in investing in the networks and that will be recovered over time in the tariff.
She said the commission has approved some of the agreements but believes consumers still need more enlightenment on this process.

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