Oil Majors, AES Contribute 31% to Nigeria’s Power Supply

Oil Majors, AES Contribute 31% to Nigeria’s Power Supply

Nigerian Federal Government yesterday revealed that out of about 3,300 megawatts (mw) of electricity which the Power Holding Company of Nigeria (PHCN) currently supplies to Nigerians, 1,100mw, representing 31 percent, were produced by power plants operated by Agip, Shell and AES.
This came as the Federal Government assured Nigerians, and National Union of Electricity Employees (NUEE) in particular, that it would be fair and transparent in the reforms of the power sector.

The Presidential Taskforce on Power (PTOP) argued in a statement signed by the Chairman, Communications Committee, Mr. Abimbola Agboluaje, that government was not liberalising Nigeria’s monopoly electric power sector in order to allow “friends of government” to take over state electricity companies as posited by NUEE in the media at the weekend.
PTOP pointed out that, contrary to labour’s position, the Federal Government’s overriding motivation was to increase Nigeria’s abysmally low level of power supply through reforms that allow indigenous and international private investment and management expertise in the power sector.

Noting that the current reform of Nigeria’s power sector was based on the Electric Power Sector Reform Act (ESRA) of 2005, PTOP stated that nothing done in the power sector reforms was outside the radar of the National Assembly, which had been playing an “oversight role in ensuring that the reform it initiated through the act is transparently implemented.”

Besides, it added that the agencies of government implementing the reform were briefing civil society groups on the process of divestiture of the PHCN firms to enable them play an effective watchdog role.

The taskforce noted that the government had taken the strategic decision to stop investing scarce public resources in a service that the private sector could provide more efficiently.

#FOLLOW US ON INSTAGRAM