By Nnenna Ezeah
Power sector deregulation has been identified as one of the major means of attracting investors and new investments into Nigeria’s power sector.

Experts, who favoured deregulation, argued that it will also improve the economic base of the nation while ensuring a synergy between the consumers and producers, adding that this will result in a win-win solution and translate into profit for all.

They opined that government alone cannot tackle the challenges of power, in view of the heterogeneous nature of the country, which called for private intervention.

According to them, power deregulation will not only provide the Nigerians with uninterrupted and quality electricity, but also attract Foreign Direct Investment, FDI, create employment and business opportunities, enhance the living standards of workers and ultimately change Nigeria’s socio-economic landscape, beyond what was witnessed in the telecommunications sector after it was liberalised.

The Minister of Power, Prof. Bart Nnaji, argued that deregulation will fast track development and snowball into better management of the power sector.

“Deregulation will ensure the generation of adequate electricity for residents and other end-users in the country.”

He told journalists recently in Lagos that part of the medium term plan for the sector is to allow the privatisation of the generating and distribution companies, which is aimed at making them more efficient and profitable, such that they are able to increase power supply to the people.

“The ongoing strengthening of the operations of the regulatory agency and the corporisation of the bulk trader will fast track the medium term plans. However, key to the citizens of Nigeria is the fact that the divestment plan by the Bureau of Public Enterprises, BPE, will be conducted in a transparent manner in order to give Nigeria and Nigerians the best investors in the sector.”

“The impact of the labour force in the power sector will be more positive and sustainable while Nigerians will benefit with a sustained power service delivery,” he added.

The minister also said that the Power Sector Roadmap included a long term plan of 2015 to 2020, for an increased diversification into renewable energy that will include small and medium hydropower, solar, bio-waste to energy, coal and a host of others to tackle power supply problem in Nigeria.

Growth targets

Prof. Frank Okafor, of the Electrical and Electronics Engineering Department, University of Lagos, while delivering an inaugural lecture titled: Power System Control and Automation; the Challenge of Reliable Power Supply, argued that deregulation of the power sector would help improve electricity supply in the country.

Okafor insisted that for the country to join the league of world leading countries, there was an urgent need to raise the electricity generating and distributing capacity to 25,000 mega watts, mw.

He also said that “Deregulating the power system required greater considerations than were proposed for other networks in developed economies,” pointing out that the country’s available installed electricity generating capacity was a little more than 4000MW, and with the country’s population at more than 140 million, translated to about 27watts per person.

“This is not enough for the individual to light a lamp, how much more of taking care of industries that a modern urban centre should do whether as an individual or collectively,” he noted.

Union’s perspective

The Secretary of the National Union of Electricity Employee, NUEE, Mr. Joseph Ajero, on his part argued that deregulation will guarantee a robust power sector and give the Bureau of Public Enterprise, BPE, room to pursue the course of privatiation much better than it had done previously.

He said, “The principle of deregulation is not meant to be taken on ideological perspective alone, because the power sector business should be left in the hands of the people who have the financial capacity, a clear definition of what to do and have the sincerity of purpose to do it.”

He noted that deregulation will empower investors the opportunity to invest in generation and possibly run the Power Holding Company of Nigeria, which had enjoyed monopoly status for so long out of business.

This, he maintained is because deregulation will bring about the competition that is needed for a change in the sector, and not by selling PHCN..

“Nobody sold NTA before AIT came into effect. They gave AIT, Channels and Silverbird their license and there was competition. So the deregulation of the power sector should be embraced with open arms as it will guarantee a robust power supply in the country.”