Minister of Power, Mr. Adebayo Adelabu, expressed disappointment in the privatization of the Nigerian power sector. During the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Plan, he outlined plans to restructure the Transmission Company of Nigeria (TCN) in accordance with the Electricity Act 2023 and industry requirements. Adelabu emphasized the need for the Federal Government to collaborate with state and local governments to enhance the coverage and distribution of electricity nationwide.
He stated, “It is time to restructure the TCN into two entities: the Independent System Operator (ISO) and the Transmission Service Provider (TSP). This restructuring must align with the evolving landscape of state electricity markets, addressing calls for the decentralization of the national grid into regional grids interconnected by a new higher voltage national or super grid.”
Adelabu further raised important questions about the government’s role in providing electricity nationwide, drawing comparisons with China’s centralized model and the United States’ diverse access models. He stressed the significance of addressing issues such as subsidies, cross-subsidies, and aligning the Rural Electrification Agency’s role with emerging state markets.
The minister highlighted critical areas within the sector that demand attention, including the poor track record in contracting, contract management, and adherence to contractual obligations. Adelabu emphasized the erosion of confidence in the sector’s viability due to these factors, posing challenges of inadequate capitalization and limited access to funds for players along the energy value chain, from gas supply to electricity distribution.
