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Towards Reforming Nigeria’s Power Sector

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Representative of  Senator Shehu Sani, Alhaji Suleiman Ahmed (left), presenting 500kva transfomer  to the district Head of Badarawa Majalisa Kwaru, Alhaji Abdulhameed Giwa in Kaduna recently.

Representative of Senator Shehu Sani, Alhaji Suleiman Ahmed (left), presenting 500kva transfomer to the district Head of Badarawa Majalisa Kwaru, Alhaji Abdulhameed Giwa in Kaduna recently.

It is disheartening that in
spite of the partnership the Nigerian government has established with the private Electricity Distribution Companies (DISCOs) and the huge sums invested in the power sector by the previous administration, the DISCOs still lack the capacity to carry out their own mandates. That is the mandate of ensuring regular or steady electricity supply to the populace of Nigeria.
Prior to the handover of the power sector to the DISCOs, the Federal Government and the United States had on August 9, 2011 agreed on the critical nature of the sector to economic growth in Nigeria.
The agreement was reached at the second meeting of the Working Group on Energy and investment of the US – Nigeria Binational Commission in Abuja. Nigeria was represented at the meeting by top officials of the Federal Ministry of Petroleum Resources headed by the Permanent Secretary, Engr. Goni Sheikh, while the U.S. team was headed by the State Department’s Special Envoy for International Energy Affairs, Ambassador Carlos Pascual.
The two nations reaffirmed their commitments to continue to cooperate in implementing the reform of the power sector and instituting best practices to ensure optimal performance of the sector and to attract needed investment. Recognizing the need for private sector participation in power sector generation, transmission and distribution, both countries acknowledged that renewable energy has an important role to play in rural electrification. They also realized that by reducing gas flaring and monetizing its resources, Nigeria would enhance its clean electricity generation.
Both Nigeria and the US at the meeting stressed the importance of the Global Alliance of Clean Cooking Stoves and affirmed their support to introduce fuel-efficient cooking stoves, especially to rural communities in Nigeria.
The government of the US pledged to continue working through the US Agency for International Development to enhance capacity building in support of private sector participation in Nigeria’s power sector. The Nigerian government on its part pledged to work toward a timely and comprehensive reform of the petroleum sector, recognising the critical benefits to Nigeria of a stable and transparent investment framework that upholds global standards of sanctity of contracts and comparable taxation regimes.
The United States recognized Nigeria’s leadership in attaining the status of Extractive Industries Transparency Initiative (EITI) compliant country and both sides pledged to work together to continue the process of ensuring the adoption of transparent rules and regulations in the extractive industries sector. The US team briefed the Federal Government on developments in the United States, including the Cardin-Lugar Energy Security Through Transparency Provision to the 2010 Wall Street Reform and Consumer Protection Act, which complements the work of the Extractive Industries Transparency Initiative.
Diversification from the national grid system into other alternative energy sources is another solution advanced for the reform in the power sector of Nigeria. The Managing Director of Ola Electrical Nigeria, a solar energy company, Mr. John Sola while speaking in an interview with The Tide said if Nigeria breaks from the grid system and adopts other alternative sources, more persons would participate in the power distribution and supply thereby allowing consumers to make choice.
According to him, the rivers, good climate with adequate sunlight and coal, among other sources could be transformed to electricity to serve the people. He said “if people begin to tap the abundant electricity or power resources, Nigerians will enjoy sufficient and cheap energy sources without necessarily expecting light from the national grid.
Sola noted that technology and finance remained the major challenges confronting prospective investors and urged the government to support them to invest in alternative power sources.
“Until the issue of power supply is properly addressed, the idea of accelerated development will remain a mirage in the country”, he said.
In their effort, the new investors in the country’s electricity generation and distribution have injected over N300 billion into the power sector in the last two years. Egbin Power Plc on its own has invested N50 billion to rehabilitate line six of its Lagos plant to generate extra 240MW. The Director-General of the Bureau of Public Enterprises (BPE), Benjamin Ezra Dikki, who disclosed this when he featured on Nigeria Television Authority’s (NTA) live programme- Good Morning Nigeria last year, pointed out that the investment was for the upgrade of power infrastructure which had become obsolete over the decades, noting that new technologies evolving gains in the sector would not manifest overnight.
He explained that unlike reforms in other sectors, which brought immediate results, the situation in the power sector requires time due to its capital intensive profile. As he put it, “power equipment like turbines and other ancillary products cannot be bought off the shelf. The investors have to place orders after which it will take between three to four months to manufacture the equipment before shipping. This takes time. Before Nigerians will begin to see dramatic changes in the power sector, it will take between two to three years. But already, significant impact has been made”.
The BPE Director-General said that because of the infrastructural dev- elopement by the investors, power interruptions in the country had reduced to the barest minimum while over 2,000 engineers and technicians had been employed since takeover. Dikki noted with regret that for over 16 years as a public monopoly, Power Holding Company of Nigeria (PHCN) neither employed nor bought in new investments into the sector. He also regretted that gas vandalism was impacting negatively on the plans to privatize the Nigeria Independent Power projects in the country.
Dikki, however, expressed optimism that with the new initiative put in place by the former President Goodluck Jonathan’s administration to safe-guard the pipelines through technological devices, the challenge would soon be surmounted, adding that the complaint of non-availability of electric meters to consumers was hinged on the complex technology used in producing smart meters, which are currently being used the world over.
The Director-General of the National Power Training Institute of Nigeria (NAPTIN) Reuben Okeke announced that the German government has built a 25 kilowatts power plant for the training of Nigerian engineers in renewable energy.
Okeke who announced this at a meeting with management team of the Nigerian Society of Engineers (NSE) in Abuja said Nigeria is expanding its local capacity to train technical workforce for the power sector while aiming to become a regional hub for required expertise in the electric power drive. To achieve this, he disclosed that the nation is equipping its power training centres with state-of-the-art simulators and training equipment, including electricity laboratories.
According to him, the NSE is collaborating with the NAPTIN to check quackery in the power sector and explained that the institute aimed to promote local skills above their foreign counterparts. “Our training plant is stationed at the Kainji Power Plant, Niger State and we have acquired a unique 450 mega watts combined circle simulator stationed at the Afam Power Plant in Rivers State to train mechanical and electrical engineers from Nigeria and other African countries. The facilities are for teaching and learning for renewable energy. There are also three wind turbines of 5 kilowatts each, and 10.5 kilowatts of solar PV to be operated as a hybrid.
“Renewable energy is one of the things that the Federal Government has decided for rural access ‘Operation Light Up Nigeria’, and we have to have, as well as establish where those who will operate, manage and maintain these facilities will be trained”, he said, adding “we are as well getting a complete electrical training laboratory in Kano, and we currently have about 3-4 of our instructors in Italy to master how to use this to teach”.
Okeke noted that Nigeria has huge potentials as far as human resources are concerned.
“We cannot go anywhere to import cables. NAPTIN has to be positioned in such a way as to satisfy the market, and we have collaborated with NSE and entered a pact towards ensuring that engineers in the power sector go through rigorous tests and examination”.
He stated that both bodies signed a memorandum of understanding in 2014 to make sure that young engineers in the power sector are well trained and well evaluated, adding “no matter the investments the federal government makes in any endeavour, particularly in the power sector, without the human capital, without the workforce, well trained and capable workforce to maintain the infrastructure, it will not work”.

 

Shedie Okpara

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NCDMB Signs Mgt Deal With Radisson, Edison…As Board’s 204 Rooms Hotel Open December 2026

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The Nigerian Content Development and Monitoring Board (NCDMB), on Monday signed an international management agreement (IMA), with Radisson Hospitality, Belgium and Edison Hotel and Property Development Company with respect to the Board’s 204 rooms hotel and conference center, developed adjacent to the Content Tower, headquarters of the NCDMB in Yenagoa, the Bayelsa State.
A statement by the Board’s Directorate of Corporate Communications says the management agreement was signed in Durban, South Africa by the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, Executive Chairman of Edison Corporation, Mr. Vivian Reedy and Director of Radisson, Mr. Garnier Erwan.
Giving assent to the agreement, Ogbe affirmed that discussions, reviews, and compliance requirements have lasted for over two years, and that the Board secured the approval of all key stakeholders, including the Attorney?General of the Federation and Minister of Justice, Lateef Olasunkanmi Fagbemi, SAN.
“The support of stakeholders ensured that the Agreement meets Nigeria’s legal and regulatory standards.The aspiration of the NCDMB is to deliver a world?class hotel in Yenagoa, Bayelsa State with a fully equipped conference centre—designed to serve the oil and gas industry stakeholders and the Nigerian public”, he said.
He pledged the NCDMB’S commitment to completing the hotel on schedule time and achieving the opening in December, 2026.
“We appreciate our responsibilities—construction quality, pre?opening readiness, funding, safety and security compliance, and maintaining Radisson’s global standard. We will do our best to meet our obligations”, Ogbe added.
The Board’s Scribe charged the  Hospitality firm to bring its expertise, systems, and brand strength to deliver a hotel that offers excellent service and guest experience, expressing hope that the partnership with Edison Hotels will create a facility that reflects global quality and supports Bayelsa’s position as an oil and gas hub.
“This project reflects NCDMB’S commitment to using strategic investments to boost productivity, attract investment, build local content, and expand opportunities for business and tourism in Nigeria when completed.
“Radisson Hotel and Conference Center Yenagoa will stand not only as a hotel, but also as a symbol of what strong partnerships can achieve”, Ogbe noted.
In his remarks, Executive Chairman of Edison Corporation, Vivian Reedy described the organisation’s  role as a bridge between the owner and the operator, highlighting the group’s intensive experience in the hotel industry, and determination to ensure alignment, transparency, accountability and performance.
“We understand that a successful hotel is not just about buildings. It is about disciplined management, strong oversight, brand integrity, and a shared commitment to excellence.
“Part of our firm’s responsibility is to ensure that the hotel is delivered, operated, and managed in a manner that protects and announces the owner’s investment, while fully supporting Radisson in achieving operational excellence”, he said.
The Edison boss assured that working closely with Radisson and NCDMB’s team, the Radisson Hotel and Conference Center, Yenagoa will become the leading hospitality and conference destination in Bayelsa State, saying it is catalyst for business and investment, and a symbol of quality professionalism and international standards.
He emphasized that the firm has had wonderful successes with Radisson in other locations, even achieving 95% occupancies, noting that the company’s approach is to strengthen governance, support performance, and ensure the interests of the owners are always safeguarded.
“This project represents more than a hotel. It represents a partnership, a trust, and a long-term vision for sustainable value creation. We thank Radisson for its global expertise and operational excellence.
“Edison is fully committed to ensuring that the asset performs strongly, operates efficiently, and delivers lasting value to its owner”, the firm said.
In his speech, the Attorney-General of the Federation Chief Lateef Fagbemi, SAN, representative by Mr. Wada Ahmed Wada described the signing ceremony as historic and wished the parties success in their business relationship.
By Ariwera Ibibo-Howells, Yenagoa
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FG engages foreign investors at PEBEC Roundtable on business environment reforms

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Senior government officials and foreign investors operating in Nigeria met in Abuja on Thursday as the Presidential Enabling Business Environment Council (PEBEC) convened the Third Existing Foreign Direct Investors (FDI) Roundtable to address challenges affecting the country’s investment climate.
The high-level engagement, held at the Banquet Hall of the Presidential Villa, brought together top policymakers and representatives of foreign companies for discussions aimed at improving Nigeria’s business environment and strengthening investor confidence.
The roundtable forms part of PEBEC’s efforts to deepen collaboration between government institutions and the private sector while ensuring that ongoing reforms translate into tangible improvements for investors already operating in the country.
Opening the session, Senator Ibrahim Hadejia, Deputy Chief of Staff to the President, welcomed participants on behalf of the Vice President and Chairman of PEBEC, reiterating the Federal Government’s commitment to maintaining a stable and transparent business environment that supports investment and economic growth.
In her remarks, the Director-General of PEBEC, Princess Zahrah Mustapha Audu, said the council remains committed to sustained engagement with investors and coordinated implementation of reforms across government agencies.
She noted that existing foreign investors play a critical role in Nigeria’s economic development through job creation, capital investment, technology transfer, and supply chain development.
According to her, PEBEC’s engagement strategy prioritises listening to investors already operating in the country in order to identify and address operational challenges affecting their businesses.
The roundtable featured presentations and interactive discussions with senior government officials responsible for regulatory and policy frameworks affecting investors.
Among them were the Executive Chairman of the Nigeria Revenue Service, Dr. Zacch Adedeji; the Comptroller-General of the Nigeria Customs Service, Bashir Adewale Adeniyi; and the Inspector-General of Police, IGP Olutunji Rilwan Disu.
Also participating virtually was Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms and Minister of State for Finance-designate, who spoke on ongoing fiscal and tax reform initiatives aimed at improving tax certainty and strengthening revenue administration.
During the discussions, investors raised technical questions and shared insights on issues relating to security, tax administration, customs procedures and fiscal policy reforms.
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MAN warns against illegal recycling of File photo

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The Manufacturers Association of Nigeria has warned against the illegal destruction and recycling of returnable packaging materials belonging to beverage companies, following a recent police crackdown on illegal factories in Anambra State.
Earlier in February, the Nigeria Police Force, working with beverage manufacturers, reportedly raided several illegal facilities in Onitsha and surrounding areas, where individuals allegedly destroyed returnable glass bottles and plastic crates belonging to beverage companies.
In a statement on Friday, the Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, condemned the destruction of these packaging materials as unauthorised and economic sabotage against businesses, and hailed the efforts of the police and regulatory agencies.
“The recent raid is the outcome of sustained engagements and intelligence-led investigations and represents a decisive step by authorities to protect legitimate business operations, uphold environmental standards, and deter further illegal activity,” Ajayi-Kadir said.
The MAN DG described the practice “as criminal and a serious economic sabotage… as assets remain the property of beverage companies that have invested heavily in these sustainable packaging materials to protect the environment”.
According to a Vanguard News report, the Executive Secretary of the Beer Sectoral Group of the Manufacturers Association of Nigeria, Abiola Laseinde, commenting on the February crackdown on alleged factories in Anambra, stated that, “The recent raid is the outcome of sustained engagements and intelligence-led investigations… a decisive step by authorities to protect legitimate business operations, uphold environmental standards and deter further illegal activity.”
Ajayi-Kadir confirmed the earlier news reports, affirming that the police acted on credible intelligence to dismantle illegal operations involving the theft, destruction, and unauthorised recycling of companies’ returnable packaging materials.
He stated that the association received reports from member companies that some factories were destroying company-owned bottles and crates for resale as raw materials, resulting in businesses losing millions of naira in investments.
“The police, working with member companies, acted on credible intelligence and stormed the factories to crack down on illegal disposal, theft, and unauthorised recycling of the returnable packaging materials of the affected companies, notably returnable glass bottles and plastic crates,” Ajayi-Kadir said.
Ajayi-Kadir added that investigations revealed that large quantities of bottles and crates were diverted from legitimate channels into informal recycling networks across the South-East.
“Member companies identified multiple illegal locations in the South-East where they crush our bottles and crates for resale as raw materials, while police investigations showed that significant quantities were being diverted from legitimate channels into informal recycling networks,” MAN’s DG said.
He noted that in several cases, reusable bottles were deliberately broken and plastic crates shredded and sold as raw materials, thereby undermining beverage companies’ circular packaging model.
He remarked, “These Returnable Packaging Materials are company-owned assets designed for multiple reuse cycles and form a critical part of their sustainability, cost-efficiency, and product quality systems. It’s a criminal activity to destroy them.”
Meanwhile, Ajayi-Kadir warned those involved in the illegal practice to desist, stressing that the association would continue to collaborate with law enforcement agencies to ensure offenders face the full weight of the law.
He added that beyond the direct loss of assets, the activities disrupt supply chains, raise operational costs and pose environmental and safety risks due to unsafe recycling practices.
MAN urged relevant government agencies to intensify efforts against the illegal diversion and destruction of returnable packaging materials outside the beverage industry’s value chain.
MAN’s DG also called on members of the public to report suspicious activities to the police or to the consumer care lines of beverage companies.
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