Fidelity bank card banner Camano banner

No law prevents state governments from generating power — Fashola

By Innocent Anaba on 16/05/2019

Views: 198

•Power, Works and Housing Minister, Fashola
•Power, Works and Housing Minister, Fashola

Minister of Power, Works and Housing, Babatunde Fashola, SAN, has said there is nothing in the power sector regulations or law that prohibits state governments from generating, transmitting and distributing their own electricity.

Fashola who stated this at the Punuka Annual Lecture series held in Lagos, said that contrary to widely held beliefs, state governments can establish their own power stations, generate, transmit and distribute electricity in areas not covered by the national grid within that state and establish their own electricity to promote and manage their own power stations.

The minister therefore called on state and local governments to pay attention to communities within their territories with limited access to grid power to improve energy access for them via off-grid solutions.

“They are clearly not areas covered by the grid and therefore constitute a viable area of intervention by a state government to contract their own power supply without reference to the Federal Government,” said Fashola.

The former Lagos State governor took a swipe at calls for review of the 2013 privatisation exercise, saying those calling for review had to be more specific on what they want as the sector is essentially in private hands.

“The reality before privatisation is that the Ministry of Power had over 50,000 staff, owned trucks, employed electricians who went out to repair faults, the Ministry controlled power stations like Jebba, Kainji, Shiroro, Egbin to mention a few and the Ministry employed all of those who worked in Distribution

“All that is gone, since November 2013. From over 50,000 staff, the Ministry now has a staff strength of 729 people. There are no electricians, fitters, repair vehicles or distribution staff in our ministry anymore and we do not supply, repair or replace distribution transformers or meters. All of these are now the work of the DisCos, under contract with BPE and under licence by NERC as a matter of Law,” Fashola said.

Speaking on the topic: Developing an Effective and stable regulatory framework for Nigeria’s Electricity Sector, Lessons Learnt from the United Kingdom,  guest speaker at the event,  Jonathan Cohen, stressed the need for a unified and holistic approach which he said is key in making a long-term electricity reform.

While he admitted that Nigeria’s power sector has made remarkable progress in the last 9 – 10 years, he however, said much more still needed to be done. Regarding the privatisation of the sector, Cohen stated that privatisation only works when market signals are robust enough to attract investment and expertise of new sector entrants at scale; a condition that seems to be missing in Nigeria’s situation. “Foreign direct investment into Nigeria’s power sector has not been significant to date,” he said.

The energy expert stated that the privatisation of the GENCOs and DISCOs were largely financed with debt from Nigerian banks, with most of the equity from Nigerian sponsors, adding that other factors such as cash shortfalls in the sector, low DISCO payments, insufficient gas supply to power the existing and expected generation and a weak electricity transmission grid have continued to affect the transition of the sector. (Vanguard)

Source News Express

Posted 16/05/2019 4:49:22 PM

 

 

CLASSIFIED ADS

 

You may also like...
My life is in danger for taking Adeleke...

DPR seals fuel stations for hoarding product in...

38,000 to be sworn in as American citizens...

DSS detains INDEPENDENT’s Abuja Bureau Chief •Denies him...

Expect cloudy weather today, dust haze and thunderstorms...

19 drown in Kwara boat mishap

Soyinka to hold funeral on the day of...

Alleged N13b Land deal: EFCC, Tompolo standoff may...

Bayelsa declares N3.5bn unspent funds

Battle rages between troops, Boko Haram in Borno...

Obono-Obla sabotaging the anti-corruption war?

EU earmarks 20m Euros to rebuild markets and...

 

Latest News 17 students die in road accident while seeking varsity admission •Their death preventable, says Governor Primate Ayodele predicts outcome of Bayelsa, Kogi Edo guber polls Customs intercepts 8 Armoured Tanks at Nigeria/Cameroon border Boko Haram: Borno Governor faults new military strategy Give Southeast one DIG, five AIGs, 15 Police Commissioners — Intersociety Army deploys new strategy to counter Boko Haram Newcastle stun Spurs as Man City storm back to Prem second spot Crisis looms in Nsukka Community as Igwe insists on sole right to form Town Union Kidnappers, informants in the net Pray that God touches the hearts of Nigerian politicians to use public funds for public good — Peter Obi Nurse in Nigeria’s medical team dies in Makkah FG to prosecute SIPs saboteurs — Uwais

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (531,282 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (439,452 views) Shameless Genevieve Nnaji exposes breasts in public (384,570 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (323,488 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (291,099 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (251,672 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (246,663 views) 10 cars more expensive than Jets (234,207 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (228,613 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (214,799 views) Lagos plane crash: Journalist releases victims’ names (193,562 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (191,417 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (99) Business & Economy (4,407) Business Verdict (79) Columnists (1,097) Complaints & Requests (95) Enterprise & Opportunities (215) Entertainment (649) Features (799) Global Business Monitor (424) ICT Monitor (59) International (3,865) Interview (199) Live Commentary (30) Love Matters (167) Maggie's Blog (387) News (50,408) Opinion (1,337) Pidgin (17) Politics (11,340) Religion (1,089) Sports (2,141) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera