President Goodluck Jonathan yesterday asked members of the Board of the Nigeria Bulk Electricity Trading Plc (NIBET) to execute their tasks diligently and transparently to attract the confidence of consumers and the goodwill of international partners.
Jonathan who spoke while inaugurating the Board chaired by finance minister, Dr. Ngozi Okonjo-Iweala, at the Presidential Villa, said he was committed to the power sector reform and as such whatever that is in the process will be abridged.
He said, “We are quite determined to conclude all processes that would lead to generation, transmission and distribution of improved steady, stable and regular power supply to our people.”
The president noted that NIBET, also known as bulk traders, is established to act as a catalyst for new investment into the power generation market and to stablise the market for those already in the business.
According to him, the power sector is faced with the challenge where power distribution companies find it difficult to collect enough revenue from their customers to pay for powers they receive from generating companies.
Jonathan said that potential investors did not have the confidence that when they produced and delivered power, they would receive payment and this did not encourage them to invest in the sector.
Due to the constraint, the president said, the Bulk Traders was incorporated as a guarantor to boost confidence to potential investors that they would be paid for the power they generate and sell to the distribution companies.
He said, “I therefore expect that you will carry out diligently the job of negotiating and signing of future contracts agreements with power producers.
“I have every confidence that you will faithfully execute this mandate of serving as a Bulk Board against the potential payment default by distribution companies until they become financially strong to directly enter into power purchase agreement on bilateral basis”.
While the board is chaired by the coordinating minister for the cconomy and minister of finance, Okonjo-Iweala, Mr. Saka Isan, is the vice chairman.
Other members of the Board are the chief executive of the company, Mr Rumuodaka Wonodi, the minister of power, Prof. Bart Nnaji and the director-general of the Bureau of Public Enterprises, Ms Bolanle Onogoruwa.