The Federal Government (FG) is working with all relevant stakeholders in the electricity sector to establish an equitable rate from the perspective of both consumers and investors.
Minister of Power, Sale Mamman, disclosed this on Monday while speaking at the International Conference on Energy, Power Systems Operations and Planning (ICEPSOP 2020). He added that the widening liquidity gap in the electricity supply industry was worrying and there was a need to improve market structures and transparency.
“The widening liquidity gap in the sector makes urgent, the need to reinforce market structures and enhance transparency. To address this challenge we are working hard to improve metering in general and in particular the use of smart meters as well as smart grids,” Mamman said.
Meanwhile, the Ministry of Power is expected to consolidate a portfolio of activities recognised as important to the success of the electricity market in collaboration with the Central Bank of Nigeria (CBN), Ministry of Finance and other relevant stakeholders.
“The ministry is coordinating with the regulator, Ministry of Finance, the CBN, and other stakeholders to consolidate a portfolio of activities deemed critical to success,” Mamman said.
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According to Mamman, access to energy is a perennial issue, especially in Sub-Saharan Africa as 1.2 billion people do not have access to electricity in the world and about half of them reside in the region.
The minister added that the government was focusing on electricity access for the teeming Nigerian population through the use of mini-grid and micro-grid as the electrification rate in Nigeria stands at 55% in urban and 36% in rural communities.
The Chairman, House Committee on Power, Hon. Magaji Aliyu, who was also at the conference, stated that as the country battles to generate, transmit and distribute electricity, it has serious challenges reaching most of the rural areas. He added that the issue of mini-grid development had become crucial in addressing the issue of power supply to remote areas of the country.