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A specialist in energy, Mr Lanre Elatuyi, has urged for a clear policy strategy from the government and relevant parties to ensure consistent power supply in the nation.

Elatuyi, an expert in the electricity market, expressed this view during an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday.

He mentioned that there needs to be a clear policy strategy for what we aim to accomplish as a nation, particularly in the energy sector, and “I believe that presents a challenge.”

He mentioned that they aim to accomplish nearly everything simultaneously without concentrating on their specific objectives.

He mentioned that it’s very disappointing we remain in this position despite the significant funding provided to the industry by the government and involved parties.

We must recognize that this is an industry that requires significant capital, so a large amount of funding is necessary.

Elatuyi also mentioned that the privatization of the power sector 13 years ago aimed to attract private funding, enabling the government to transfer certain responsibilities and introduce private entities into the market.

He mentioned that although there was a shift, the industry had not significantly expanded as anticipated in terms of market progress.

He stated, ‘The main goal of introducing competition in the market during privatisation has not been realized.’

“So, the challenge in the power sector is a systemic failure. We can’t blame one arm; maybe we can blame the government in terms of policy.

We may hold the players accountable for their performance, and we can also criticize the consumers for energy theft and lack of payment responsibility.

“I don’t wish to exclude any market participant,” he stated.

A separate challenge highlighted by the expert within the sector is the issue of liquidity.

“When we sell, produce, and distribute electricity, the collection of payments has been very poor, which also hinders investment in the sector,” he stated.

As per his statement, there is an ongoing reform outlined in the Electricity Act 2023, which has granted states the authority to create laws related to the electricity sector.

The core idea is to assume responsibility for the power sector, which is currently under the sole control of the federal government, and allow states to manage and regulate energy within their own areas, exploring what can be achieved.

Elatuyi further called on power generation and distribution companies to follow the market regulations in order to meet their obligations to customers.

“Consumers should also contribute and there must be strict regulations in place, with anyone discovered violating the rules facing consequences,” he stated.