States need help to seize Electricity Act opportunities, says NGF Chairman

Participants at the Roundtable on the Electricity Act 2023 have underscored the need for comprehensive support to enable states to effectively harness the potential presented by the recently enacted Electricity Act, signed into law by President Tinubu.

The Roundtable, which took place in Abuja on October 25 and 26, was jointly organized by the Nigeria Governors’ Forum (NGF) and the British High Commission, with the support of the United Kingdom Nigeria Infrastructure Advisory Facility (UKNIAF).

One of the primary outcomes of the Roundtable was the recognition that a tailored approach is essential, accounting for the diverse challenges and limitations faced by individual states. Kwara State Governor AbdulRasaq AbdulRahman, who also serves as the Chairman of the NGF, emphasized that each state possesses unique characteristics that impact their capacity and attractiveness for electricity investments.

He elaborated on the objectives of these collaborations, which include capacity building, policy guidance, knowledge sharing, and, most importantly, facilitating infrastructural and project development. This will be achieved by assisting state governments in identifying and developing financially viable projects in the electricity sector, ensuring that these projects align with the highest standards of technical, social, and environmental sustainability.

Furthermore, Thomas Pascoe, the Project Director at UKNIAF, stressed the pivotal role of structural elements within Nigeria’s energy sector, asserting that the right structural foundations are key to driving progress in the electricity domain. He explained that the issue facing the Nigerian energy sector is not the shortage of talent but the necessity to create a structure that enables growth, resilience, and economic improvements at the state level. He believes that the discussions held during the Roundtable have set a promising course for the future of the energy sector, characterized by clarity, collaboration, and a steadfast commitment to excellence.

Gill Atkinson, the British Deputy High Commissioner, also weighed in on the significance of the new provision within the Electricity Act, which grants State Governments the authority to generate, transmit, and distribute electricity. She highlighted the critical role of this provision in addressing Nigeria’s energy deficit, urging stakeholders to explore innovative opportunities for enhancing electricity production and expanding its delivery to a broader segment of the population.

Participants at the Roundtable further identified several pivotal drivers that will facilitate the implementation of the Electricity Act, including:

1. **Seamless Transition:** Ensuring a smooth transition from existing systems to the provisions of the Electricity Act.
2. **Active Stakeholder Engagement:** Actively involving and managing stakeholders at various levels to promote collaboration and transparency.
3. **Effective Market Coordination and Governance:** Establishing efficient market coordination and governance mechanisms to optimize the energy sector’s functioning.
4. **Regional Collaboration:** Fostering collaboration and joint initiatives at a regional level to ensure that the Electricity Act’s implementation is cohesive and aligned with regional objectives.

Key decisions made during the Roundtable included:

1. Encouraging Support from Donor Community and Development Finance Institutions (DFIs): It was highlighted that support from these entities should be aligned with the specific contexts and needs of individual states.
2. Prioritizing Regional Joint Initiatives: Emphasis was placed on prioritizing collaborative efforts at the regional level to ensure that the implementation of the Electricity Act is well-coordinated and consistent.
3. Creation of Transition Roadmaps: Developing comprehensive transition roadmaps based on detailed assessments to guide the sector’s transformation.
4. Leveraging Diverse Professional Expertise: Utilizing a wide range of professional expertise to bolster the sector’s capabilities and ensure that the objectives of the Electricity Act are met.
5. Establishing Clear Market Frameworks at the State Level: Creating well-defined market frameworks at the state level to enable efficient and transparent operations within the energy sector.

In conclusion, the Roundtable on the Electricity Act 2023 highlighted the need for tailored approaches to enable states to fully capitalize on the opportunities provided by the new legislation. By fostering collaboration, addressing structural issues, and focusing on regional coordination, the participants laid the groundwork for a more robust and effective implementation of the Electricity Act, which has the potential to significantly transform Nigeria’s energy sector.