Governors Move To Challenge Discos Monopoly Amid Poor Power Supply

Eko Hot Blog reports that the Governors of the 36 states have united to address the issue of unreliable power supply in the country.

According to reports, the Governors have agreed to take action to break the monopoly held by Discos in power distribution.

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This decision follows the signing into law of a constitutional amendment by former President Muhammadu Buhari in March 2023, granting states the authority to license, generate, transmit, and distribute electricity.

IKEDC LogoWith the Fifth Alteration Bill No. 33, Devolution of Powers (National Grid System), Nigeria’s 36 states can now generate their own electricity.

President Bola Tinubu recently signed the Electricity Act of 2023 into law, marking an important development in the country’s electricity sector.

This Act aims to break the monopoly in electricity generation, transmission, and distribution at the national level.

The Act grants the power to generate, transmit, and distribute electricity to states, companies, and individuals.

In March 2023, Buhari had signed a constitutional amendment allowing states to license the generation, transmission and distribution of electricity.

Based on the amendment, Nigerians can now participate in the electricity supply business, which was previously the exclusive preserve of the FG, as administered by the stage regulator, the Nigerian Electricity Regulatory Commission.

File Image of Minister of Power Adebayo Adelabu

States are required to create their laws and the state governors must sign those laws.

With the constitution amended, and the National Assembly having passed a law for the electricity sector in line with the amendment, the states will now proceed to establish their laws based on the constitutional amendment.

The 2023 Electricity Act, by virtue, allows anyone to construct, own, or operate an undertaking for generating electricity exceeding one megawatt in aggregate at a site.

Also, organised labour, comprising the Nigerian Labour Congress and Trade Union Congress, has asked the 36 states and the Federal Capital Territory to work out modalities to break the monopoly of the power distribution companies (also known as Discos) in the country.

According to the labour unions, the discos, as currently constituted, are enjoying a monopoly in power distribution, making them ‘behave in ways that are untoward’ towards their customers.

The Deputy President of the TUC, Dr Tommy Etim, speaking with Sunday PUNCH, said the issue of estimated billing was killing the populace, stressing the need for all homes in the country to have metres.

He also noted that the new Electricity Act had made things easier for the country, as states could now own and run their own discos.

He said, “Labour also takes the position that every household should be metered. So that whatever anyone is paying will be known rather than estimated billing. Organised Labour frowns at the increase in tariff.

“Again, the continuous refusal to meter homes, even for those who have already paid for it for more than a year or more is unfair. We are not happy about it.,

Governors Bold Move

Speaking with Sunday PUNCH on what the governors are doing, the Director General of the Nigeria Governors’ Forum, Asishana Okauru, said governors were determined to tackle the problem of poor power supply in Nigeria by taking advantage of the power they now had with the Electricity Act (2023).

He said, “States are taking advantage of the new law on power.”

He noted that the NGF had taken a ‘leading and coordinating role’ in seeing to the implementation of the Electricity Act at the sub-national level.

“We have assisted the states as they grapple with the reality of establishing their electricity markets.

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“To achieve this, we have set up a dedicated power desk at the NGF Secretariat, engaged consultants, facilitated the constitution of a Forum of Commissioners of Power in the 36 states, and engaged with stakeholders, local and international.

“Additionally, we have enlisted the support of donors who have shown a remarkable interest in working with the states through the NGF secretariat. There is still a lot of work to be done. However, we are on the right track.”

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