The Manufacturers Association of Nigeria (MAN) in swift reactions to the signing of the Electricity Act 2023 said it is a major step towards the right direction.
According to the statement sent to The Ameh News which was endorsed MAN DG, Mr. Segun Ajayi-kadir sayings following the removal of subsidy, this is another reflection of the boldness and commitment of the new administration towards the diversification and decentralization of the power sector.
Ajayi-Kadir stressed that the empowerment of the State Governments and private investors, the adoption of renewable energy and the reformation of the governance structure of the power sector are capable of driving investment, improving electricity access and fostering economic growth.
However,he noted that in other to avoid truncating the potential benefits of the Electricity Act, MAN listed 9 recommendations that must be considered, they are:
01 Tighten the security infrastructure as no investor wants to do business in a terrorized economy.
02 Render legal, financial and technical supports to state governments yet to establish electricity market laws.
03 State governments should partner with existing agencies and operators in the power sector as the costs of building new power distribution networks can render the investment less lucrative.
04 Streamline NERC and states’ regulations to avoid bottlenecks for multistate investors.
05 Address the uneven distribution of gas to avoid delay in states’ execution of mega-power projects.
06 While states concentrate on small confined democratized power supply systems, there is need to have in the pipeline a long-term plan of ensuring operational efficiency of the national grid.
07 The success of the Act largely rests on its effective implementation. Therefore, new President should appoint a committed and incorruptible Minister of Power nthat has broad experience of the operations and politicking within the power sector.
08 The power sector is highly capital-intensive. Therefore, there is need to reduce the lending rate to encourage private investments in min-grids and renewable energy.
09 Quickly and adequately address the hitches surrounding the fuel subsidy removal by providing transparent palliative measures and socio-economic infrastructure that directly and immediately mitigate its untold hardship on businesses and the masses.
