PWC says the attainment of uninterrupted electricity supply is possible if the right stakeholder collaborations are effected.
It, therefore, stressed the urgent need for stakeholders in the power sector to work together if the required result must happen.
This was the conclusion at PwC’s 9th annual power roundtable held in Lagos, and attended by key stakeholders across the power value chain.
The Country Senior Partner for PwC Nigeria, Uyi Akpata, represented by Cyril Azobu, Head, Advisory and Consulting, in a report by service firm on Monday, said: “For almost a decade, the Roundtable has provided stakeholders the platform to discuss issues, challenges and developments in the power sector. Because of the longevity of inadequate power supply and because of how insurmountable the challenges appear, there is a tendency to overlook the aspects that we have gotten right”.
“This year’s edition with the theme: Power Play: Working together to achieve success, was therefore focused on highlighting some of the achievements that have been recorded by stakeholders in power generation, distribution and financing.”
In his presentation, Rays of Light: The Journey of the Transformation in the Nigerian Power Sector, Moshood Olajide, Partner & Power Industry Tax Leader, noted that there is a need for massive investment in power infrastructure, and that though “the sector is clearly experiencing growing pains, the challenges highlight a universe of inherent opportunities”.
The Panel session was moderated by PwC’s Energy, Utilities & Resources Leader, Pedro Omontuemhen. The panelists included: the Chief Executive Officer, Infra Credit, Mr. Chinua Azubike; Chief Executive Officer, AllON, Dr. Wiebe Boer; Chief Financial Officer, GE, Ms Welela Dawit; Chief Executive Officer, Mainstream Energy Solutions, Lamu Audu, and General Manager, Supply Chain, Abuja DisCo, Mrs. Amina Imam, representing the Mr. Ernest Mupwaya, CEO Abuja DisCo.
Omontuemhen stated that despite the emerging challenges post-privatisation, some players in the Nigerian power industry have recorded key successes which can serve as case studies.
Mainstream Energy Solutions is the concessionaire of Kainji and Jebba power stations, with a capacity of 922 megawatts but only 600 – 650 utilised. Audu, said: “When we took over in November 2013, we took over five generating units that had never been overhauled for thirty years. As we speak today, we currently generate 20-25 per cent of the energy on the national grid”.
On her part, Imam noted that since takeover in 2013, Abuja DisCo has increased its collections from N1 billion to N5.5 billion on a monthly basis; self-financed over 600 meters; and has a twelve-year meter financing from a structured programme.
AllON is an independent company funded by Royal Dutch Shell. Boer said the focus of the firm “is to invest in off-grid energy businesses that provide power solutions to low income communities and SMEs with priority in the Niger-Delta”. He stated that off-grid is key to meeting the power needs in Nigeria, and posited that the off grid renewable sector will produce the next phase of billionaires in Nigeria.
Infra Credit is responsible for the guarantee of the first corporate infrastructure bond issued in the Nigerian debt capital market with a tenor of 10 years; thus, Azubike re-iterated that “funding is critical if we are to achieve stable electricity”.
The consensus was that stable power is critical to driving a country’s development. To achieve this, the issues of distribution capability, financing and cost reflective tariffs must be addressed, while taking advantage of the opportunities for off-grid solutions.
The stakeholders stressed an urgent need for all stakeholders to work together to achieve success in the power sector.