- The decision to probe the power sector was prompted by a motion put forward by Ademorin Kuye (APC, Lagos) during Wednesday’s plenary session
- In his motion, Mr. Kuye pointed out that despite numerous financial interventions by the federal government, Nigeria has not witnessed a substantial improvement in its electricity supply
The House of Representatives has made a resolution to conduct a thorough investigation into all financial interventions made by the federal government within the power sector over the past decade.
This comprehensive investigation will encompass the allocation of over $1.25 billion by the federal government to the power sector from 2013 to the present.
The decision to probe the power sector was prompted by a motion put forward by Ademorin Kuye (APC, Lagos) during Wednesday’s plenary session.
In his motion, Mr. Kuye pointed out that despite numerous financial interventions by the federal government, Nigeria has not witnessed a substantial improvement in its electricity supply.
He also highlighted significant contributions, such as $486 million from the World Bank through the International Development Association (IDA) and a $300 million facility from the African Development Bank (AfDB) to the Transmission Company of Nigeria (TCN) for the expansion and rehabilitation of the existing northern corridor.
He also the French Development Agency provided a facility of $170 million for Transmission infrastructure expansion around the Abuja metropolis, while the Japan International Cooperation Agency (JICA) provided a facility of $238 million for Transmission infrastructure expansion within the South-west region of Nigeria and another $13 million for other maintenance.
The lawmaker explained that the sector is still struggling despite the financial injections and the privatisation of the sector. He explained that six out of the 11 electricity companies have been taken over by banks.
He said the main regulator in the section, the Nigeria Electricity Regulation Commission (NERC), has failed to properly regulate the sector.
“The Nigeria Electricity Regulatory Commission (NERC)’s performance as an industry regulator is questioned for its ability to move the industry forward and eliminate illiquidity.
“The Nigeria Electricity Supply Industry faces threat due to the poor performance and transparency of DISCOs and the NERC’s inability to sanction erring stakeholders,” he said.
The motion was unanimously adopted by the House when it was put to vote by the Speaker, Abbas Tajudeen.
The Committees on Power and Finance were mandated to conduct the investigation.