Page 7 - AfrElec Week 34 2022
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AfrElec POLICY AfrElec
Nigerian politicians criticise
gencos for low output
NIGERIA NIGERIA’S House of Representatives Commit- true number of electricity megawatts consumed
tee on Finance has criticised officials from the per day.
country’s Transmission Company of Nigeria Lawmakers also noted that the Azura con-
(TCN) after they failed to explain why so few tract was signed off by just two or three people.
megawatts are being generated by Power Gen- The Nigerian power sector has been in tur-
eration Companies. moil since it was privatised in 2013. Since this
In particular, representatives noted that the time, Nigerian companies have struggled to reli-
Azura power company is falling well short, ably provide power to the nation.
despite being paid $33mn per month. The fed- Many of the companies that took over gov-
eral government has signed multiple deals with ernment power facilities have struggled to turn a
Azura, including a clause that the federal govern- profit. In July, the Federal Government revealed
ment would “take or pay” for power generated that it had taken back control over five electric-
as declared by the company, “whether or not it ity distribution companies over debts owed to
is taken by the government-owned transmission Fidelity Bank. The companies had failed to pay
company.” for loans taken out during the 2013 privatisation.
The representatives said that they could not The low per-capita megawatt production in
understand how the government could com- Nigeria means there is a significant opportunity
mit to pay $33mn, even if the power wasn’t for growth and profit for companies that opt to
generated. enter the sector. In June, the World Bank esti-
According to James Faleke, the chair of the mated that Nigeria needs around $100bn in the
committee, TCN officials have not told the truth next 10 years to tackle the country’s unreliable
over the lack of generated power, including the power supply.
Week 34 25•August•2022 www. NEWSBASE .com P7
