Governors of the 36 states of the Federation have unanimously rejected a Senate bill seeking to reform Nigeria’s power and energy sector.
The governors through its umbrella body, Nigeria Governors’ Forum (NGF), bemoaned the neglect of states input in the reformation process, the overbearing posture of the federal government, faulted the legislative power of the National Assembly to single handedly enact a new Electricity Act without recourse to state Assemblies.
The governors’ position was contained in a memorandum titled Re: Senate Electricity Bill, addressed to the Chairman, Senate Committee on Power and copied the Senate President and Speaker, House of Representatives ahead of the Senate 2-day public hearing on ‘Electricity Bill 2020 (SB. 511) started on Monday in Abuja.
The Bill aimed at repealing the Electric Power Sector Reform Act, 2005, consolidate various laws relating to the electricity sector and for many other matters both connected and unconnected therewith.
The memorandum signed by chairman of NGF, Governor Kayode Fayemi of Ekiti State which was made available to The Trumpet highlighted issues raised by the NGF and solutions proffered as a way forward for the nation’s energy sector.
The NGF while regretting that States have no opportunity to be heard, whether individually or through the Nigeria Governors’ Forum pointed out that “electricity” is not an exclusive federal matter. It is guided by the provisions of the Concurrent Legislative List.
The body added that “Articles 13 and 14 clearly provide that the power to make laws for the generation and transmission of electricity are concurrent. Also, Article 14 reserves exclusively to the State the power to make laws for the distribution of electricity within a State as it also does the power to make laws for the generation and transmission of electricity exclusively within the borders of a State.
“We also wish to note that the National Electric Power Policy, 2001, the only extant Federal Government general policy statement on the electricity sector, in Chapter Three, is very clear that the States and State Governments are key stakeholders in the electricity value chain”.
The NGF recalled that past efforts of States to establish and sustain electricity markets of their own have been stifled by the Federal Government, noting efforts of Lagos and Rivers States as notable examples.
The governors therefore, demanded that the reality of the States as key partners in the achievement of universal electricity access by all Nigerians must not only be accepted by the Federal Government but must be legislated by the National Assembly.
The NGF argued that States like Lagos, Edo Ekiti, Ondo and Kaduna have already taken the initiative to enact policy statements and laws for the electricity sectors in their States. Similarly, the 19 States of Northern Nigeria have come together to establish a common platform for realising the benefits of the extensive renewable energy resources that their region is blessed with.
“It would be unconstitutional and an unjustifiable act of overreach for the Senate to consider and pass a Bill that continues to treat the Federation as one single electricity jurisdiction or sector. While a single Electric Power Sector Reform Act may have been useful as a catalyst for the sector in the early years of the Fourth Republic, the States have all come of age, literally and metaphorically, and the arrangements must change in a way that accepts and respects the maturity of the States in electricity matters; a reality that this Senate Electricity Bill does not recognise and take account of but at best only pays the most cursory lip service”, said the NGF..
The governors said it is unfortunate that the FG-controlled and -regulated national electricity market that today is insolvent, bankrupt and delivers no more than approximately 4,000MW/96,000MWh daily to 220m Nigerians, or an average of 18w/432watt-hours daily.
In addition, the NGF said today, the Nigerian electricity sector is insolvent and has been dependent on the Central Bank of Nigeria and Direct Foreign Investments for regular infusions of cash to keep it afloat since 2013, building up liabilities that now stand at over trillion.
It wondered how the Nigerian electricity sector can settle these liabilities and the Electricity Bill does not offer a way forward on the issue.
Shredding the new Bill, the NGF said its key characteristics are a failure to recognise and provide for the rights of States to have their own electricity markets.
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“The re-establishment of the same single national electricity market that has brought neither growth in capacity nor socio-economic development to the nation; and, as stated earlier, the continued absence of a clear path for the market to exit permanently from its long-running insolvent status. The Bill also re-establishes the existing Federal Government entities and a number of other new ones as key players in the sector.
“Finally, perhaps the most egregious feature that runs throughout the Bill is the establishment of a single Federal Government appointee, the Minister of Power, as the de facto head and statutory supervisor of all the key FG electricity sector MDAs, including the Nigerian Electricity Regulatory Commission (NERC), in a supposedly privatised electricity sector. Interestingly, the Ministers extensive powers over the sector are shared with the National Assembly through the mechanism of legislative oversight responsibilities.
“The Nigeria Governors’ Forum does not support this Electricity Bill in the version currently before the Senate, except these amendments are reflected. This is because it is unconstitutional and maintains the policy of Federal Government overreach in the electricity sector that has not yielded development to the country. We state in very clear terms that this Electricity Bill is not a solution to the pressing challenges summarised above.
“it is also premature in that it does not follow from a comprehensive national dialogue on a completely revised national electricity policy.
“We doubt that a private member’s Bill such as this can deal with such a complex national security issue without the benefit of extensive research, analysis and prior consultation before a comprehensive Bill is drafted”.
Proffering solutions, the NGF strongly recommend the constitution of a Working Group, spearheaded by the State Governors under the auspices of the National Economic Council (NEC), to work with the NASS leadership on the way forward for the electricity sector.
It said “from this should emerge a new National Electricity Policy and the foundations of a new Act of the National Assembly that, for the first time, will have the full buy-in of the States. Electricity is a vital matter of national security that, by virtue of the 1999 Constitution, is in the concurrent list and should, therefore, be made into law only with the collaboration and concurrence of the States of the Federation.
“We look forward to close collaboration between the NGF, the National Assembly and the Federal Executive Branch in charting a new and productive path towards bringing energy security to our country”.
