PRESS RELEASE: As a way out of the increasing growth decline and stunted growth in the Nigerian Electricity Demand and Supply Industry ( NEDSI) , Electricity Consumers under the auspices of Nigeria Consumer Protection Network has appeal to Federal Government of Nigeria through the relevant Agencies of Government to rejigged the Nigerian Electricity Market by Re- introducing the ideals of Market’s Cross Subsidies and Institutionalising the Business Model of Willing Buyers/ Wiling Sellers. He breaking down the concepts ,he explained that having exited the Transition Electricity Market ( TREM ) as envisaged and captured by Nigerian Electricity Regulatory Commission ( NERC) enabling law, the Electric Power Sector Reform Act of 2005, he implore the Regulator Agency ( NERC) to encourage the 11 Electricity Distribution Companies to Sell Power to all categories of Electricity Consumers at 70% Willing Buyers and 30% left over should be sold to Electricity Consumers on Tariffs Rates for R1 & R2 Nation wide vis- a- vis the National Daily Load Demand, Load Despatch and Load Utilization. He said in the business model of Willing Buyers/ Willing Sellers, all categories of Electricity Consumers will be at Liberty to Negotiates and from time to time Re-Negotiates with the Service Providers ( the 11 Electricity Distribution Companies ) operating in Nigeria. He said any business that operates on price indexes and economic matrix tied to Market Profitability and Quick Returns on Investment by global Standards can not be said to be unprofitable. He said that those who can afford to pay higher for Electricity like the Organised Private Sector, the R3 comprising of Micro , Small and Medium Scale Enterprises ( MSME), Plaza, Hotels & Recreational Services and other Commercial outlets who can afford to pay higher for Electricity per Unit of Megawatts should be allowed to Negotiates and Re- Negotiates with the Market Operators in charge of their localities based on Market Variables. Nigeria at the moment has reach a point where the country be can not continued to borrowed money financed the Nigerian Electricity Demand and Supply Industry and at the end of the day such funds will end up being recycled into slush funds by few others while Nation becomes poorer with no tangible benefits and impacts on the over growth and development of Nigerian Electricity Sector. Olubiyo said that as against the present scenario where the 11 Electricity Distribution Companies have been accused of LOAD REJECTION and the DisCoys in its parts alleged that Transmission Company of Nigeria have been indulging in ENERGY LOAD DUMPING. Apart from series of vicious circle of sustained bickering amongst the Electricity Markets Participants and Players considered Electricity Markets and at variance with the spirits and letters of Privatisation exercise. Olubiyo further suggest that in a situation where the Maximum Daily Energy Generation Peak at 10, 000 Megawatts Peak Load, The DisCos should be encouraged to sell 7, 000 out of the 10, 000 Megawatts which represents and 70%at Willing Buyers/ Willing Sellers roundly Negotiable Rates/ Tariffs. While the remaining Output shall be sold toR1 & R2 at Regulated Markets Tariffs rates based on MYTO Tariffs rates as may be approved by NERC from time to time. This process will make the Nigerian Electricity Demand and Supply Industry Market driven, Global Competitive and attractive to Investors .. This will also address the issues of Returns on Investment , Cost Recovery and Cost Reflectivity. Olubiyo said that the Nigerian Electricity Demand and Supply Industry have bn reduced to a Cash Cow by SMART GUYS in & out of Government as could seen manifested in successive Governments. That Nigerian Government and the Citizenry can not continued to borrowed money to financed an already Privatised Sector. That there is a disconnect and dysfunctional matrix tied self interests and seemingly conflict of interests. That Nigerian Government neeed to as a matter of urgency pull herself out of the dungeon of CAPTIVITY of Energy/ Electricity Cabals and Cartels whose smaller interests have been deployed to subsumed the larger interests of Nigeria. Olubiyo said Electric Power is a product like any other Markets Commodities and Investment in the Nigerian Electricity Demand and Supply Industry by Public and Private Sector must be tied to Sustainable Growth and Development and the ideals of United Nations SDGs. Power Sector according to Olubiyo is a pivotal for growth, Re- Industrialization, Job Creations, Gainful employment, Developmental Social Inclusions, Social Security and Stability. He attributed the menace of Banditry, Terrorism, Insurgency, Prostitution, Internet Fraud & Credit Card Scam ( Yahoo Yahoo Syndromes / Yahoo Plus ) to a fast declined in Nigeria Abortive Capacity for Employment. He said that Nigeria is undoubtedly seating on a Gun Pounder as the inequalities gaps and Graduates -to-Employment Ratio continues to widened. According to Olubiyo, for every job vacancies in Nigeria, there is One Hundred Thousand ( 100, 000 ) Applicants. This is said could be attributed to very very low levels of Productive activity and disappearances of the Industrial Sector. For Nigeria to actualized its lofty dreams of Industrial Revolution Plans and Re – Industrialization, the Nation needs to move from chunking out on daily basis what Olubiyo described as POLITICAL MEGAWATTS which have been generated and projected on the pages of Newspapers and other traditional and modern day media. Olubiyo concluded by appealing to the Muhammadu Buhari’s led Government to as a matter of urgency communicate the Public and the Operators, Government intention in to embark on Mid term Review of Nigerian Electricity Sector Privatisation exercise as stipulated by law and other Extant Rules relating to the Privatisation exercise. Also encouraged Federal Government of Nigeria to as a matter of urgency and utmost necessity Unbundled the Transmission Company of Nigeria to increase its operational capacity, capabilities and efficiencies. In this regards, Transmission Company of Nigeria should be allowed to remained a Technical and Engineering Organization with the National Grid Broken into 7 Regional Management of: South South Transmission Infrastructural Company of. Nigeria;South East. Transmission Infrastructural Company of Nigeria;South West Transmission. Infrastructural Company of Nigeria; North West Transmission Infrastructural Company of Nigeria; North East Transmission Infrastructural Company of Nigeria and North Central Transmission Infrastructural Company of Nigeria. Olubiyo also implored Muhammadu Buhari’s Government to amend the present enabling of the Transmission Company of Nigeria Enabling Law to reflect this realities which may lead to the breaking up of the National Nigerian Electricity Grid Infrastructure into smaller units and pockets of smaller grid outlooks. The Transmission Company of Nigeria ( TCN) as it were should be be left with the duties and mandates of Projects Conceptualization, Projecta designs ,Projects Monitoring and Evaluation as well as Project Delivery vis-a-vis the entire National Grid Infrastructure and to also managed the day to day operations/ activities of the different Projects Monitoring Units ( PMUs) currently under the purview and supervision of TCN as it were. The Technical/ Operational Management of the present National Power Grid Infrastructure should be devolved to an
Organisation of Government to be established by an Act of Parliament to known and referred to as the
Nigerian Power Grid Independent Systems Operator ( NPG/ISO). There is also an urgent need to establish an Nigeria Power Grid Market Operators ( NPG/MO). These submission according to Olubiyo should be codified and subjected to Parliamentary standards of Public Hearings at the both the Lower and Upper Chambers of the Federal Legislative Arm of Government ( the Senate & House of Representatives) and passed into law in overall Public interest. Olubiyo reiterates that the present challenges of the Nigerian Electricity Demand and Supply Industry are not Rocket Science and what looks like an intractable problem are self inflicted and made made and not beyond solutions when and where there are sincerely of purposes by Government, the Operators in the Electricity industry and other relevant Non State Actors and Critical Stakeholders in the Industry and obviously Corruption induced. There are no better time than now to act.The Mid term Review of the Privatisation of the Nigerian Electricity Demand and Supply Industry ( NEDSI) earmarked for the 4th quarter of the year 2019 as stipulated in the Privatisation exercise provides the right opportunity to rejigged / reset the Sector.