By Fatima Saka
The Senate has passed the Electricity Bill to Boost power distribution in the country, in line with acceleration of investments, and also rectifying Nigerian electricity supply chain.
The 2022 electricity Bill was passed by Senate, on Wednesday, in Abuja during plenary section, in effect to the consideration of a report by the Committee on Power.
The Senate Chairman Committee on power, Senator Gabriel Suswam from Benue North East senatorial district, in his presentation, said the bill is to leverage amongst others, provide a perfect legal and institutional framework to leverage on the modest gains of the privatisation phase of the electricity power sector in Nigeria.
Suswam interjected that, when the bill is signed into law, it would improve utilisation of power generation, increase in investments, new technologies invention to enhance transmission and distribution of generated power to minimise aggregate value chain losses.
According to the lawmaker, the piece of legislation would “reinvigorate the Institutional framework for the reform of the Nigerian Electricity Supply Industry (NESI) initiated and implemented by the Federal Government.”
He also disclosed that the provisions of the bill seek to promote policies and regulatory measures that would ensure the expansion of power transmission networks in Nigeria in order to address any imbalance in the existing transmission infrastructure. “opening of the space where the states can generate their own power and districts have the capacity to do that without a license”.
Meanwhile, Senator Suswam added that, knowing that the issue of electricity was under the concurrent part of the Constitution, the states will now have the capacity to license people who intend to operate mini grids or power plants within the state.
The Senate chairman committee on power, also noted that the bill would stimulate policy and regulatory measures to scale up efficient power generation, transmission and distribution capabilities of the sector; as well as address technological limitations and outdated infrastructure that are responsible for value chain losses.
The Senate President, however inserted that through consideration of the bill, sought to know the role and operational capacity of banks that had taken over distribution companies (discos) indebted to them.
In his replies, Senator Suswam explained that the take-over of entities (Discos) by banks was duly carried out in collaboration with the Nigerian Electricity Regulatory Commission (NER) and Bureau of Public Enterprise (BPE).
According to him, there was a transitional process put in place during the take-over of the Abuja Electricity Distribution Company (AEDC) by the United Bank for Africa (UBA) to ensure efficiency in service delivery.
He noted that such a transitional process usually involves the invitation of new investors to scale up generation and distribution capacities.
He further disclosed that the Federal Government had disbursed $100 million (USD) to Siemens to kickstart transmission in the distribution end of the power sector.
On his part, Senator Ahmad Babba-Kaita (PDP – Katsina North), said the faulty way in which Discos were created was largely responsible for their inability to live up to expectations.
He, therefore, advised the federal government to ensure a transparent process in the selection of companies to take-over power generation and distribution across the country.
The Deputy Chief Whip, Senator Aliyu Sabi Abdullahi (APC – Niger North), noted that the aspect of renewable energy in the bill, was given prominence amidst the energy mix.
The Electricity Bill, 2022, after a clause-by-clause consideration of the Committee’s report by the Committee of the Whole, was passed by the upper chamber.
The Senate President, Ahmad Lawan, in his remarks after the passage of the bill, said, “because of its importance and sensitivity, we would like to see a quick concurrence by the House of Representatives, because time is of essence as far as Nigeria is concerned when you talk about electricity and energy supplies in Nigeria.
“So, we would like to see that this bill is fully processed in the National Assembly and sent to the Executive side of government for the consideration for assent by Mr. President.
“We believe that this piece of legislation can change the fortunes of the electricity industry in Nigeria for the better.”
