Some Experts in the power sector have commended President Bola Tinubu on some of the ongoing reforms in the sector.
The experts, who spoke with the News Agency of Nigeria (NAN) in Abuja on Sunday, said that the Tinubu-led administration had brought a lot of reforms to the sector.
However, he said that there was still room for improvement.
Kunle Olubiyo, President, of Nigeria Consumer Protection Network (NCPN), said that from May 2023 to date, there have been a lot of reforms by the present administration in the power sector.
Olubiyo said that giving power to states to operate their electricity sector was a good development and a welcome idea.
“Before now, it was only the Federal Government that had the power to generate, transmit and distribute power.
“But now due to the fact, that President Tinubu assented to Electricity Act, 2023, states have the power to establish their electricity agencies.
“This further speaks to issues that have been raised concerning true federalism and the evolution of power because we are a federating state. This is a major milestone and game changer,‘’ he said
According to him, the recent deregulation of the metering process by the Nigerian Electricity Regulatory Commission (NERC) was the right step in the right direction.
“Most of the problems we have been having had to do with metering, there have been a lot of leakages or gaps in the process of acquiring meters.
“By deregulating the metering sub-sector, is going to help and improve the issues of liquidity challenges in the sector and aggregate technical collection and commercial losses.
“Because if you cannot collect revenue or there are leakages, no matter what we are doing, it will be a wasted effort and this will discourage investors from investing in the sector,‘’ he said.
He also said that the recent unbundling of the Transmission Company of Nigeria (TCN) by the government and granting a licence for the establishment of the Nigerian Independent System Operator (NISO) was a welcome development.
“The president has demonstrated some commitment in doing that.
”So we are looking at it that in the second year of the Tinubu’s administration, the government as much as possible should fashion out a model that would make sure that TCN operates in an unbundled form in a commercially viable form.
“Because government cannot continue to bear the burden of a supposedly privatised power sector,‘’ he said.
Olubiyo, however, said that there are still challenges in the sector.
According to him, the government should look at the area of multiple taxation in Tinubu’s second year in office as the tax burden is quite strangulating for small businesses and an average man on the street.
He said that taxes that were supposed to be within the jurisdiction of the state were being collected by the Federal Inland Revenue Service (FIRS) and this overlapping or encroaching on jurisdictions of the state.
He said: ’’+everywhere, you pay taxes for coughing, you pay taxes for sneezing, you pay taxes for breathing and taxation undermines growth and development.
“Government should look at those businesses that have a multiplier effect on job creation and productivity and create tax holidays.
On his part, Princewill Okorie, the Executive Director of, Electricity Consumer Protection Advocacy Centre, also commended the Federal Government on the ongoing reforms they are putting in place to move the sector forward.
’’I will commend the Federal Government on the efforts they are putting in place to reform the sector, especially the Minister of Power, Mr Adebayo Adelabu.
“I was privileged to participate in the African Energy Market Place Forum held recently.
“And I saw the effort the minister is putting in place to develop a strategic implementation plan in other to meet up with the provisions of the Electricity Act 2023.
“So it is a commendable effort to see that they develop policies that will drive the sector as a follow-up action to the Electricity Act that was signed into law.”
Okorie, however, said that there were areas that the government was supposed to look into as it affects consumers.
According to him, the increase in tariff at this time that fuel has been increased is not a welcome idea Nigerians are suffering.
“As the executive director of the electricity consumer protection advocacy centre, I am concerned about consumers’ interest in the sector.
“But I am glad that the minister made a statement based on my suggestion that he needs to set up consumer protection departments under his ministry.
“Consumers are the ones paying this money, so there is the need to have that unit,” he said.