Adelabu Mulls Differential Electricity Tariff, Says Grid Power Still Cheapest Source

Emmanuel Addeh in Abuja

Minister of Power, Chief Adebayo Adelabu yesterday emphasised the reliability of grid connection as power source rather than captive power plant currently being used by bulk electricity consumers, noting that despite generating a record 5,155 megawatts, it was not being taken up.
The minister spoke at the board retreat of the Nigeria Electricity Liability Management Company (NELMCO), in Lagos.
“ Majority of bulk electricity users, such as industries, are off the grid due to lack of trust and confidence in the past. They now have their own captive power plants in their industries which is more expensive,” he lamented.

According to Adelabu, continued use of captive power rather than grid connection is more expensive. “The average cost of producing captive power is about N350 to N400 for those connected to gas lines. For diesel, it’s about N950 while petrol is about N550”, he said in a statement by his spokesman, Bolaji Tunji.
He said efforts would be made to encourage such bulk users to return to the grid. “Once consumers and industries see the trust, the confidence and the stability we are giving, they would be encouraged and reconnect to the grid for cheaper source of power.
“We aim to attain the threshold of a new era in power delivery with a target of 6GW by end of December 2024 in the short term and the federal government is still focused on the vision 30-30-30.

“By 2030, we aim to achieve 30 gigawatts in the medium term, with renewable energy constituting 30 percent and universal access in the long term, it is imperative that we align on the  principles guiding our activities and the strategies driving our progress,” he said.
He added that government was currently using a multi-pronged approach to attain these targets for the Nigeria Electricity Supply Industry (NESI).
The minister also mulled the idea of differential tariff for up peak period in order to stimulate demands.

“Having noticed a drop in demand during the off peak period, we plan to stimulate demands by having a different tariff during the off-peak period. These are some of the efforts we are looking at especially with our smart meters,” he said.
He urged the board members to  reflect on how to embed corporate governance in driving sustainable growth in the sector.
 “As we manage the liabilities of the Nigeria Electricity Supply Industry (NESI), it is imperative that we uphold the highest standards of transparency, accountability, and integrity. Our actions and decisions must always align with the principles that safeguard public interests, ensuring that trust is maintained and strengthened across the board”, he said.

He also enjoined the power sector to  embrace environmental, social, and governance (ESG) standards in their actions. “In today’s world, ESG considerations are no longer optional; they are integral to every corporate operation.
NELMCO’s role goes beyond managing financial liabilities – we are also stewards of social and environmental responsibilities. We must incorporate sustainable practices into our strategies, ensuring that our actions contribute to Nigeria’s broader goals of achieving the nation’s climate ambition and fostering social equity. This commitment to ESG will not only enhance our reputation but also ensure long-term value creation for all Nigerian,” he said.

He implored the board  to reflect on sustainable ways to address the tariff shortfalls in the industry while boosting the financing power of the sector.
 “I believe, tackling the tariff shortfall in the Nigeria Electricity Supply Industry requires innovative and sustainable financing solutions. We must balance efforts at addressing the existing obligations while delivering long-term strategies that pave the way for financially solvency sector through cost-reflective tariffs.
“ We need to focus on ways to help the electricity market stabilize, attract investment, and ensure that every Nigerian has access to reliable and affordable power which will drive the nation’s economic development”.

He also emphasised the need for effective leadership and board agility especially in the electricity  industry.
“As leaders, our primary role is to set a strategic course, inspire our teams, and navigate challenges with foresight. We must be proactive and adaptable, ready to pivot in response to disruptions, whether technological, regulatory, or economic. A culture of continuous learning, open communication, and innovation will ensure we remain resilient and not just to survive but to thrive in an ever-changing environment,” he stated.

Obasanjo to Speak at Former Punch Editor’s Book Launch

The immediate past Editor of The PUNCH, Dayo Oketola, is set to launch a book he authored as his contribution to the development of the pen profession.
The book,  ‘The Catalyst: Nigerian ICT Evolution Through a Journalist’s Lens,’ will be launched on September 17, 2024, at an exaugural lecture to mark the end of his time as an editor and celebrate his nearly 20 years of experience in journalism.

Former President Olusegun Obasanjo will be the Special Guest Speaker at the event, which will take place at the Muson Centre, Onikan, Lagos, by 10 am.
Oketola, now a senior member of the PUNCH Editorial Board, left as Editor of The PUNCH following the organisation’s management-level shake-up in June.
While serving as editor, he won the Editor of the Year prize at the Nigeria Media Merit Awards (NMMA) in December 2023. He also led the organisation to win the Newspaper of the Year at the same award ceremony. Oketola, a consistent journalism prizeman, also won  Editor of the Year Award at The Industry Awards 2022. He is a two-time winner of the Zimeo Excellence in Media Awards in Johannesburg 2015 and Nairobi 2016, among numerous awards during his illustrious journalism career.

In a statement, Oketola said, “I am excited to announce the upcoming launch of my book, The Catalyst: Nigerian ICT Evolution Through A Journalist’s Lens, scheduled for September 17, 2024.
“On the same day, I will also be hosting an exaugural lecture to celebrate my tenure as Editor of The PUNCH and nearly 20 years in journalism.”
Speaking further, the former editor described his years in journalism as one that had driven advocacy and impacted different sectors of the economy.
“My 20 remarkable years of stewardship to the nation via media and leadership practices have driven advocacy and impacted areas such as business and economy, ICT, energy, agriculture, social inclusion, anti-corruption, drug trafficking prevention, and nation-building, a testament to the power of journalism in shaping our society,” Oketola remarked.

Other influential guests hosted at the media event are a former Chief Executive Officer of MTN Nigeria, Michael Ikpoki, who will chair the occasion, and the Convener, Centre for Social Media Research, Dr Akin Olaniyan, who will be the book reviewer.  The Minister of Information, Alhaji Mohammed Idris, will grace the occasion as the Chief Host.
Similarly, the Managing Director/ Editor-in-Chief of PUNCH Nigeria Limited, Mr Adeyeye Joseph, is the host, while the President of the Nigerian Guild of Editors, Mr Eze Anaba,  is the co-host.