Africa Energy Nigeria Electricity – Representatives Move To Liberalize Electricity

Source:Daily-Cham -- By Chukwu David 24 January 2012

An enthusiastic effort to unbundle the power sector for more productive business and engender rapid socio-economic development, the House of Representatives last week passed the Bill for an Act to Amend the Electric Power Sector Reform Act 2004 through second reading.

Leading the debate on the Bill, Chairman, House Committee on Power, Hon. Patrick Ikhariale, stressed the need to decentralize electricity generation, transmission and distribution in the country, noting that the Bill seeks to achieve this goal.

According to him, the current structure in the power sector in which the Power Holding Company of Nigeria, PHCN, has monopoly of electricity generation, transmission and distribution is inimical to the development of the country.

He further explained that the whole purpose of the Bill is to liberalize electricity to enable state governments and private investors to participate in electricity business, pointing out that when more people and states are allowed to generate, transmit and distribute electricity that it could get to all the nooks and crannies of the country.

Contributing, the Minority Whip of the House, Samson Osagie, also reinforced the fact that the Bill seeks to break the monopoly that has subsisted in the sector over the years in order to pave the way for competition and increased productivity.

He lamented that under the current monopolistic structure, Nigerians are being compelled to pay for power they do not consume by the Power Holding Company of Nigeria, insisting that if passed into law and properly implemented by the Executive arm, the Amendment Bill would stop such exploitation.

Also, in her contribution, Hon Abike Dabiri-Erewa noted that deregulating the electricity sector would help lessen the burden of the Federal Government in the challenge of electricity generation, transmission and distribution to the various communities in the country.

In his argument in support of the Bill, Hon. Adams Jagaba (Kaduna State) said that many state Governors could not invest in power generation because of the legal clog in the system, persuading his colleagues to support the legislation pass through in order to tackle the perennial problem in the sector.

Furthermore, Hon. Peter Edeh from Ebonyi State and an Electrical Engineer by profession corroborated the view that the present structure constitutes a great hindrance to private investors in the polity.

He posited that the centralization of electricity generation and distribution discouraged private investors who would have been buying flared gas and use it to generate electricity and sell from doing so, alleging that they prefer to flare the gas and pay fine.

Hon. Edeh expressed optimism that the Bill if passed and implemented, would eliminate the current bottlenecks bedeviling the sector and impeding the national development effort.

Speaking in favor of the Bill, Hon. Nosakhare Osahon (Edo State) lamented that the monopoly of electricity in Nigeria had made Nigeria not to compete with the contemporary world driven by modern technology, where most things are done electronically.

He expressed hope that the proposed legislation would reverse this ugly trend and reposition Nigeria on the path of rapid development.

The only Rep, who spoke against the Bill, Hon. Nkoyo Toyo observed that the Bill seeks to achieve what had been captured in the nation’s law books, calling on the House to discard it as it is a mere duplication of effort.

Similarly, the House passed three motions, referring them to the relevant Committees for further legislative input. The are: Urgent Need for a Comprehensive and Integrated Housing Policy for the Federal Capital Territory, sponsored by Hon. Friday Itulah; Deplorable Condition of Ajaokuta-Okene Road, by Hon. Sadiq Asema Mohammed and Dualization of 9th Mile/Opi Nsukka/Obollo Affor/Otukpa/Anyingba/Ajaokuta Highway, sponsored by Hon. Toby Okechukwu and eight others.

Africa Energy Nigeria Electricity