Former Chairman Nigerian Electricity Regulatory Commission ( NERC) Professor Sam Amadi on Monday warned that state ownership of electricity distribution is untenable, casting doubt on the DisCos’ sustainability beyond a decade.
Speaking at the 10th anniversary of the Association of Power Generation Companies (APGC) in Abuja, Amadi argued that shifting electricity regulation to the states would “surely flop with time” and urged lawmakers to consider the long-term consequences of their actions.
He stressed that the sector requires stability before any legal amendments.
“Nigerian electricity sector is tied to politics too much that if there’s a problem it mainly fits into policy-makers. They start looking for solutions and the solution becomes worse than the problem. I think we should have some stability to allow things to work,” he said.
Senator Enyinnaya Abaribe, chairman of the Senate Committee on Power, clarified that the Senate cannot discard the Constitution outright; it can refine it.
He noted that any law in conflict with federal law is void and lauded APGC for its role in collective problem-solving and advocacy.“Our job is to fine-tune the constitution and not to discard it completely.
However, it is precisely confronting these challenges that APGC has demonstrated its greatest value, providing a platform for collective problem-solving and unified advocacy that amplifies the voice of individual generation companies.
“Looking ahead, the future of Nigeria’s energy transformation rests upon our collective commitment to innovation, investment, and inclusive stakeholder engagement.
“The power generation sector remains fundamental to our national development aspirations, and the role of APGC in facilitating dialogue, promoting best practices, and advocating for enabling policies cannot be overstated.
“As our nation pursues ambitious goals of energy access, economic diversification, and industrial growth, the contribution of generation companies and their representative association will be absolutely critical,” he said.
Earlier, Mr Mahmuda Mamman, Permanent Secretary, Ministry of Power, said Federal Government has constituted a committee to address the payment of outstanding debts owed to Power Generation Companies (GenCos) and to establish sustainable payment mechanisms to prevent future accumulation.
Represented by Mrs Evangeline Babalola, a Director in the Ministry,Mamman, said the committee’s mandate was not only to clear existing debts but also to ensure financial sustainability in the power sector.
“In recognition of the critical importance of resolving this issue for the sustainability of our power sector, Mr President has constituted a committee specifically mandated to address the payment of outstanding debts owed to the GenCos,” he said.
He praised the GenCos for their resilience and patriotism despite being owed billions of naira, noting that their continued operations have kept the nation’s lights on and the economy running.
“You have not abandoned your posts in spite of severe liquidity challenges that would have forced closure in any other industry. This is not just business; this is patriotism in action,” Mamman said.
He added that President Bola Tinubu was aware of the liquidity constraints facing the Nigerian Electricity Supply Industry (NESI) and was committed to finding lasting solutions to the debt burden.
“As we work to resolve the debt situation, I encourage you to maintain the same spirit of resilience and commitment that has characterised your operations over the past decade,” Mamman said.
He commended GenCos for their contributions to job creation, training of Nigerian engineers and technicians, and for supporting local economies where their plants operated, describing their efforts as “invaluable and recognised.”