The speaker of the House of Representatives, Tajudeen Abbas, says the power sector is faced with challenges that have stifled its growth and efficiency.

He said this on Tuesday at a two-day workshop organised by the House of Representatives Committee on Power in Abuja.

Mr Abbas listed the challenges as inadequate generation capacity, dilapidated infrastructure, frequent disruptions in power supply, and financial inefficiencies that had eroded the sector’s viability.

He also said that the inadequate metering and the consequent revenue loss had perpetuated a cycle of debt and underinvestment that had undermined the sector’s potential.

He said there was a need to foster collaborative efforts that would leverage public and private sector expertise and resources.

“This dialogue embodies such collaboration and is crucial in charting a forward path. The shift towards a multi-tier electricity market represents a strategic pivot in our approach to power sector reform,” said Mr Abbas.

The speaker explained that the model envisaged a structured market segmentation for differential pricing and service levels tailored to diverse consumer needs and capacities.

Mr Abbas said, “It promises enhanced efficiency through competitive practices, encourages investment by delineating clear market segments, and improves reliability and service delivery across the board. 

“There is the likelihood of improved reliability and quality of service, especially for high-demand users willing to pay more, thus indirectly benefiting the standard service tiers through reduced load.”

He said the transition to a multi-tier market was challenging despite the much-touted benefits, adding that it included regulatory complexities and the need for substantial capital investment.

Others included the risk of market segmentation leading to disparities in service quality and resistance from different stakeholder groups due to changes in tariff structures.

He said, “Our commitment to transforming the Nigerian power sector into a model of efficiency and sustainability is unwavering.”

Victor Nwokolo, the chairman of the House Committee on Power, said it aimed to provide a dynamic platform for stakeholders to evaluate the progress made in the development of the Nigerian Electricity Supply Industry.

Mr Nwokolo added, “We will delve into the successes, challenges, and opportunities encountered along this journey, seeking to identify key areas for improvement and innovation.”

He said continuous engagement with all stakeholders was critical to ensuring the reforms meet the population’s diverse needs and maintain public trust.

He said the workshop would serve as a platform for stakeholders to explore innovative solutions to the power sector’s persistent challenges.

(NAN)