The Minister of Power, Adebayo Adelabu, has said the Federal Government is committed to the transformation of the power sector that will drive economic growth, improve living standards, and support national development.
Adelabu, who spoke at the 4th edition of the Power Correspondents Association of Nigeria (PCAN) themed “Ending The Talk, Moving To Action”, and was represented by the Director of Renewable and Rural Power Access in the Ministry, Dr Sunday Owolabi, said the government is focused on policies that are practical and sustainable while adding that the time has come for citizens and companies alike to see actions from the government.
“The theme of this year’s conference, “The Power Sector: Ending the Talk, Time for Action,” is not only timely but crucial for the growth and sustainability of our nation’s energy future.
“For many years, we have had discussions, deliberations and strategic dialogues on the challenges facing the power sector. We have heard the calls for reform, the promises of growth, and the visions of a brighter energy future.
“Yet, it is clear that words alone will no longer suffice. We have reached a pivotal moment where the time for action has arrived. Our citizens, industries, and economy can no longer wait for promises; they demand results.
“The government remains fully committed to transforming Nigeria’s power sector through meaningful and actionable reforms. We are focused on ensuring that our policies are not only visionary but also practical, impactful, and sustainable.
“From the ongoing efforts to address infrastructure gaps, enhance power generation, and improve transmission networks, to the vital reforms in distribution and the full implementation of the electricity market, we are resolute in our mission to improve the power supply for every Nigerian.
“As we transition from words to action, I call on all stakeholders, including investors, regulators, and yes, the media, represented here by the Power Sector Correspondents Association to play their critical roles in this transformation. Your work in informing the public, holding us accountable, and providing constructive feedback is essential as we strive to build a resilient power sector that meets the needs of our growing nation.
“Let us be clear: the road ahead will not be without challenges, but it is a road we must walk together. By embracing innovation, strengthening collaborations, and focusing on implementation, we will make the transition from talk to action.
“Let us renew our commitment to concrete steps that will move the power sector forward. Let us all contribute to the development of an energy sector that will drive economic growth, improve living standards, and support national development. I assure you of the government’s continued support for the transformation of the power sector, ” the minister stated.
The keynote speaker at the event, Edu Okeke, called for private sector investment to address the challenges of the power sector in Nigeria.
He said the real reforms can only come to pass when the Distribution Companies (Discos) in Nigeria invest at least $500 million each.
“To enable meaningful progress, DisCos must be adequately capitalized. Unfortunately, most DISCOs have negative equity, leaving them with little to no financial stake. This situation must change. Ideally, no DISCO should operate without at least USD 250m in shareholder funds.
“Just as the Central Bank of Nigeria has raised capital requirements for banks to ensure their stability and capacity to serve, the Nigerian Electricity Regulatory Commission (NERC) should mandate similar capitalization standards for DISCOs.
“Many DISCOs also carry a heavy burden of debt, accumulated over time through a mix of operational challenges and systemic issues. To truly address this problem, the Government needs to come clean and take a decisive step.
“My recommendation is a two-pronged approach: to consider removing these debts from the DISCOs’ books and mandating them to increase their capital by at least USD 500 million each. This will require existing shareholders to dilute their holdings to attract new investors with real capital to invest in infrastructure, not just on paper, but in transformers, cables, and equipment to serve customers reliably.”
PCAN chairman, Obas Esiedesa, in his remarks, said incessant grid collapses has become a source of concern to Nigerians in addition to recent electricity tariff hike.
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