Nigerians hoping for improved electricity supply may continue to wait —PENGASSAN

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) said on Thursday that Nigerians hoping for improved electricity supply may have to wait a little longer because the power sector’s gloomy status was unlikely to change soon.

PENGASSAN identified a number of factors that would prevent Nigeria’s power supply situation from improving anytime soon, emphasising that this remained true despite the economic importance of energy to the nation.

Festus Osifo, the president of the association, stated this during the 7th Triennial National Delegates Conference of PENGASSAN in Abuja and cautioned the federal government against using the Petroleum Industry Act 2021 in a discriminatory manner.

He said, “Although electricity is considered a major determinant of economic development as access to electricity is expected to catalyse nations in the drive for industrialisation, supply to homes and businesses, this has remained abysmal in Nigeria on the backdrop of a flawed privatisation exercise.

“Averaging 4,500 megawatts in the past eight years, Nigerians looking forward to improved electricity supply may continue to wait as inherent challenges may stall power generation in the current.

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“Going by industry statistics, not only have gas-related issues affected the country’s generation, dispatch of the generated electricity remains elusive as transmission and distribution bottlenecks are frequently blamed for the capacity to wheel power to end-users.”’

Osifo noted that the power business was currently struggling with a heavy debt load and added that the country’s weak foreign exchange rate condition was impeding the proper purchase of equipment to run the electricity supply industry.

“With huge debt and equity servicing challenges, operation and maintenance barriers, dearth of new investments, poor credit rating and poor business viability image to investors, the dismal outlook of the power sector may not change in 2023 or any time soon.

“There are also indications that the worsening exchange rate crisis in the country would drastically impede the sector as the majority of tools and equipment used in the sector are dollar based. In spite of these, the consumer is made to pay for the inefficiency of the operators and the regulator,” Osifo stated.

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