Vice President Yemi Osinbajo has said that electricity tariff reforms and its services-based tariff have raised collections from the sector by 63 per cent.
According to him, this has increased revenue assurance for gas producers and stabilised the value chain to the extent that there is an expectation that the accruable revenue will reduce the subsidies as reforms in metering and efficiency in the distribution companies get better.
He spoke at the 14th Annual Conference of the Nigerian Association of Energy Economists (NAEE).
The theme of the conference is “Strategic responses of the energy sector to COVID-19 impacts on African economies.”
The Special Adviser to President Muhammadu Buhari on Infrastructure, Mr. Ahmad Rufai Zakari, represented Osibanjo at the event.
He said: “Electricity Tariff Reforms with the Service Based Tariff that have increased collections from the electricity sector by 63 per cent, increasing revenue assurance for gas producers and stabilising the value chain. it is anticipated that all electricity market revenue will be obtained from the market with limited subsidies as reforms in metering and efficiency with the DISCOs continue to improve.”
The Vice President said there had been an accelerated investment in transmission and distribution (over $3 billion) infrastructure that would put Nigeria on a path to 10GW+ (over 10,000MW) and beyond … through interventions with the Central Bank of Nigeria, the Siemens partnership, the World Bank and African Development Bank, JICA, AFD and others.
He added: “As we stabilise our electricity sector, we need more electricity for our large population, that is why this administration continues to invest in expanding generation to cater for our current and future needs … the Okpai ph II plant, the Afam III fast power plant, the Zungeru Hydro plant and the Kashimbilla Hydro plant will add more than 1000MW of capacity in both gas and renewable segments.’’
“This administration has transformed the Rural Electrification Agency into a renewable energy driven organisation with Solar power at its heart, the 5 million Solar Connections Program – Solar Power Naija aims to electrify 25 million citizens through private sector and public private partnerships and is the largest off-grid connections program in Africa.”
He also noted that the administration led by President Muhammadu Buhari has put a keen focus on Nigeria’s energy sector.
Significant, transformational initiatives, said Osinbajo, have been embarked on or concluded that will leave an indelible mark on the economics of energy in Nigeria for the future.