Uncertainty over Gas Policy Threatens FGs 10,000mw Target (By Akinrinde, Ibukunoluwa Jeremiah)

Email: ibukunoluwaakinrinde@gmail.com

Twitter: @IbukunoluwaIbk

Regulatory uncertainties in the Nigerian power sector portends threats to the attainment of government’s target of an additional 2,000mw by the end of 2016 and a total 10,000mw by 2019. Regulatory issues around the Nigerian Electricity Regulatory Commission’s (NERC) is delaying the appointment of new NERC Commissioners to replace the previous Commissioners whose tenures ended in December 2015. Other regulatory issues to be addressed include the need to minimize gas supply shortages and monetize gas flaring, the need for improved funding and investments across the entire power sector value chain, the need for a renewable energy policy, etc.

Also, there is need for increased credit-worthiness/liquidity for the Nigerian Bulk Electricity Trading Plc (NBET) to enable it create an effective environment which minimizes transactional risk in the power sector. All these if addressed would improve the operational efficiency in the power sector and would reduce the cost of doing business significantly; particularly reducing the cost of private power generation and the resultant inflationary pass-through to consumer prices. oleum1���?.