The World Bank Country Director for Nigeria, Mathew Verghis, has called for tougher directives and effective sector governance to fix Nigeria’s power sector, saying it is by doing so that the country’s electricity market can achieve efficiency, financial sustainability and universal access.
Verghis, who made the assertion during the technical session to mark the 20th anniversary of the Nigerian Electricity Regulatory Commission (NERC) on Thursday in Abuja, said Nigeria currently has the largest electricity access deficit in absolute terms globally. He added that inefficiencies, high losses and limited investments have continued to affect the progress since the power sector was privatised in 2013.
The World Bank representative, nonetheless, was hopeful about Nigeria’s energy future with its significant energy resources, huge growth potential and untapped demographic dividend.
He said, ‘Stronger regulations and proper sector governance are central to achieving an expanded and diversified power generation mix and investment in transmission and distribution infrastructure at competitive costs.’
Verghis said financially viable utilities will increase private sector participation and also expand distributed renewable energy solutions for affordable last-mile access.
He commended NERC’s role in shaping Nigeria’s electricity landscape through bold policies that have allowed over 7.8 million Nigerians to gain access to electricity in the past five years through distributed renewable energy initiatives.
He commended NERC for supporting the decentralisation of electricity markets to states and building institutional capacity at the sub-national level through its advisory roles.
‘The role of the regulator in providing transparent and balanced service to both consumers and utilities is central to any power sector reform,’ he stated.
Verghis, while restating World Bank commitment to supporting Nigeria’s efforts in achieving sustainable, inclusive and affordable power for all, congratulated NERC on its 20 years of existence.