The Speaker of the House of Representatives, Tajudeen Abbas say the power sector is grappling with challenges that have stifled its growth and efficiency. He said this at a two-day interactive dialogue/workshop by the House of Representatives Committee on Power in Abuja on Tuesday, 23 April 2024. Abbas listed the challenges to include inadequate generation capacity, dilapidated infrastructure, frequent disruptions in power supply, and financial inefficiencies that had eroded the sector’s viability. He also said that the inadequate metering and the consequent revenue loss had perpetuated a cycle of debt and underinvestment that had undermined the sector’s potential. He said that there was a need to foster collaborative efforts that would leverage both public and private sector expertise and resources. “This dialogue embodies such collaboration and is crucial in charting a forward path. The shift towards a multi-tier electricity market represents a strategic pivot in our approach to power sector reform,” he said.
He said that the model envisaged a structured market segmentation that allowed for differential pricing and service levels tailored to diverse consumer needs and capacities. “It promises enhanced efficiency through competitive practices, encourages investment by delineating clear market segments, and improves reliability and service delivery across the board. There is the likelihood of improved reliability and quality of service, especially for high-demand users willing to pay more, thus indirectly benefiting the standard service tiers through reduced load.” He said that despite the much-touted benefits, the transition to a multi-tier market was challenging, adding that it included regulatory complexities and the need for substantial capital investment. Others included the risk of market segmentation leading to disparities in service quality, and resistance from different stakeholder groups due to changes in tariff structures. “Our commitment to transforming the Nigerian power sector into a model of efficiency and sustainability is unwavering,” he said.
