Rep. Tajudeen Abbas, the Speaker of the House of Representatives, highlighted the numerous challenges faced by the power sector that have hindered its growth and efficiency during a two-day interactive dialogue/workshop organized by the House of Representatives Committee on Power in Abuja.
Abbas pointed out the key issues plaguing the sector, such as insufficient generation capacity, deteriorating infrastructure, frequent power supply disruptions, and financial inefficiencies that have negatively impacted the sector’s sustainability.
He emphasized the detrimental effects of inadequate metering, leading to revenue losses that perpetuate a cycle of debt and underinvestment, ultimately undermining the sector’s potential for growth and development.
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The Speaker stressed the importance of fostering collaborative efforts between the public and private sectors to leverage expertise and resources, highlighting the need for a strategic approach to power sector reform.
Abbas discussed the shift towards a multi-tier electricity market as a pivotal step in reforming the power sector, emphasizing the benefits of structured market segmentation, differential pricing, and tailored service levels to meet diverse consumer needs and capacities.
He outlined the potential advantages of this model, including enhanced efficiency through competitive practices, increased investment opportunities, improved reliability, and better service delivery for consumers across different market segments.
Despite the anticipated benefits of transitioning to a multi-tier market, Abbas acknowledged the challenges involved, such as regulatory complexities and the requirement for significant capital investment to support the sector’s transformation and ensure its sustainability.
