As you may well know, Bola Ahmed Tinubu of the All Progressive Congress (APC) has been declared the winner of Nigeria’s 2023 presidential election. He will be sworn into power by May 29, 2023.
In this article, Nairametrics outlines Tinubu’s plans for Nigeria’s power sector. In his campaign manifesto tagged “Renewed Hope”, the president-elect noted that Nigeria’s power sector challenges cannot be solved overnight.
However, he said he would consolidate President Buhari’s already existing projects in the sector, including the Siemens power deal. He also talked about plans to establish new interventions that will tackle the issues of power transmission and distribution as well as bring power supply to underserved areas around the country.
The President-elect has the following plans for the country’s power sector.
Put an end to estimated billing: According to Tinubu’s manifesto, his administration will ensure that all Nigerian homes and businesses that are connected to the national grid are meter-connected. The Buhari administration had already initiated the National Mass Metering Programme (NMMP) and the Meter Asset Provider Scheme (MAPS). Tinubu plans to build on this, by making sure that new connections to the national grid will not be permitted unless a meter has been installed.
In the same vein, the administration will mandate the distribution companies (DisCos) to charge cost-reflective tariffs for power supply. The last time DisCos increased power tariffs was in December 2022, with Band A customers charged N81.1 per kilowatts per hour.
Domestic manufacturing of prepaid meters: Tinubu’s administration also plans to encourage the manufacturing of prepaid meters. Tinubu says his government will reduce import levies on manufacturing inputs and provide other forms of support for domestic manufacturers. This is to ensure that they can compete and meet the demand for meters and provide targeted and efficient tax incentives for local manufacturing companies making meters. Under the Buhari administration, the Nigeria Electricity Regulatory Commission (NERC) has empowered over 90 prepaid meter manufacturers in the country. This has created more jobs in the power sector.
Focus on solar energy: Tinubu plans to continue to work with stakeholders to increase Nigeria’s solar energy capacity. The country currently has several renewable energy plans with stakeholders like the World Bank, the African Development Bank (AfDB), and Sustainable Energy for All (SEForAll). These stakeholders have funded and developed several solar-powered projects across the country. Under Tinubu’s administration, it is expected that he will create more opportunities for policy development, and increase investments to enable more solar-based projects for households and businesses.
Increase rural electrification: The Tinubu administration says it wants to improve rural electrification. According to the manifesto earlier cited, the president-elect intends to streamline and relax regulations to enable the private sector, as well as local and state government actors to electrify rural Nigeria safely and securely.
Under Tinubu’s administration, rural dwellers will be charged reasonable tariffs. Also, the administration will ensure that universities and polytechnics around the country will become centres of research, devising new and innovative ways to bring more power to rural areas. It is important to note that the Rural Electrification Agency (REA) set up by the Buhari administration is mandated to increase energy access in Nigeria’s rural areas.
Gas-to-power: Nigeria is a natural gas-rich country, so, our electricity mainly comes from gas. Under Tinubu’s government, he will insist on a Nigeria-first policy. This policy will enable gas resources to be harnessed on a priority one basis to be used to generate power.
Tinubu’s government will also support power projects that can be delivered quickly to optimize power grid reliability, grid interconnectedness, and grid wheeling. It is important to note that the ongoing Siemens power deal targets increase Nigeria’s power transmission and distribution capacity. Also in 2022, the French Development Agency (AFD) signed a €25 million agreement with the Buhari administration to strengthen the power grid in the Northwest region.
Update the power sector governance reform: According to Tinubu’s manifesto, he will push for a review and update of the Electric Power Sector Reform Act of 2005, to reform the regulatory and governance structure of the country’s power sector. He also plans to expand Nigeria’s power base to include clean coal, solar, hydropower, and other sustainable energy technologies. The Tinubu government also plans to ensure that government processes and procedures improve efficiency and accountability for project management, design, procurement, construction, and remittances.