Calling for the restructuring of the power sector to boost power generation and distribution in the country, Chairman of Momas Electricity Meter Manufacturing Company (MEMMCOL), Kola Balogun, urged the Minister of Power, Abubakar Aliyu, to chart a “way forward.“
Balogun said this while speaking with journalists in Lagos, stating the need for states to independently generate power to reduce the burden on the centralised grid.
He called for the removal of power generation from the Exclusive List and the franchising of the power sector to attract investors.
On the centralisation of the grid, Balogun asked, “Why do we continue to have a single grid that binds all of us together? We need to separate it in such a way that any state or local government can go into power generation and distribution to people within its area.
“If the power being generated is not enough, they can even buy from the national grid. So, power generation and distribution should be removed from the Exclusive List and moved to the Concurrent List.
“That is why we are advocating for franchising so that Nigerians will enjoy more supply. The entire process should be done in a way that investors are able to get back their funds while their customers will get fair bills in line with global best practices.
“If you are given an area to manage and you are bringing your investment, you need to recoup your investment and make profit on your investment.
“Power sector requires long term investments and loans should be considered for investors in the sector bearing that in mind.”
He suggested that the Nigerian Electricity Regulatory Commission (NERC) be given more regulatory power like the Central Bank of Nigeria (CBN).
He said, “NERC must be given the power to sack and appoint heads of power generation, transmission and distribution companies if the need arises just the way CBN is doing in the banking sector.
“There is an element of discipline that is required for us in the sector in order to have a way forward, and this is currently missing.”