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How NERC’s Laxity Caused Power Sector Misfortunes – Expert



A legal expert and stakeholder in the oil and gas sector has blamed the misfortune of the power sector on NERC’s inability to enforce compliance with the contractual obligations among the players

Sam Aiboni, in a phone conversation told LEADERSHIP, said following the disbandment of a presidential taskforce set up to ensure implementation of the privatisation process by this administration, a vacuum of coordination became noticeable.

“It created a coordination gap which NERC ought to but has not been able to fill to date. For instance,  the DisCos which used to pay 80 per cent for energy received, has been paying much less through NBET to the GenCos, and no stringent measure has been taken to enforce the terms of relationship in the value chain,” he explained,

Aiboni lamented that the privatisation has never been handled well since inception, saying there is serious need for a change of attitude on the part of the players by ensuring that all contractual rights and performance obligations are enforced to the latter otherwise the situation will get out of hand.

“NERC should sit up and ensure that appropriate sanctions are given against those who breach the contractual agreements to which they consented at the point of privatisation.

Those who cannot meet up should be shown the way out. When the DisCos were signing were signing the contract, all of said they had technical partners and had what it takes to be operators in the industry, including purchasing and installing of meters. Why would anybody come with excuses instead of results and nothing seem to be done about it?

The Executive Secretary of the Association of Electricity Generating companies (GenCos), Dr Joy Ogaji, had earlier told LEADERSHIP that lack of vibrant leadership in the sector is largely responsible for the setback being suffered by the sector amidst all orchestrated efforts at bringing about incremental and stable power.

“The regulator, and I mean the Nigerian Electricity Regulatory Commission (NERC), is yet to be seen in action, performing its statutory regulatory obligations with all sense of commitment and independence.

“A situation where the Minister decides what the regulator should do or say is counter-productive. Terms of the roadmap and the operational code even direct that the government focuses on policy-making while the regulator concentrates on regulation, just as it is happening between the Nigerian Communication Commission (NCC) and the ministry of information.” she said.

Series of effort made to get NERC to speak to LEADERSHIP on the issues raised proved fruitless.




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