NEC Moves to End Grid Collapse, Sets Up 13-man C’ttee on National Electrification

*Shettima: Private sector-distributed renewable energy generation vital to increasing electricity access

*NEC gives FCT, Kwara, two other states one week to submit position on state police

*States’ position on state police ready next month

* KACRAN asks northern govs to drop idea of establishing state police

Deji Elumoye and Michael Olugbode in Abuja 

The National Economic Council (NEC), yesterday, rose from its monthly meeting at the State House, Abuja, with a resolution to reinforce implementation of the National Electrification Strategy in a bid to end the constant collapse of the nation’s power grid.

This was as Vice-President Kashim Shettima told members of the Council that access to energy was a fundamental right and not a privilege because electricity was the oxygen of economic growth.

Accordingly, the Council has constituted a13-man committee on National Electrification to help address the challenges in the power sector.

The formation of the committee was among the decisions taken by NEC at the end of its 146th meeting chaired by Shettima at the Council Chambers.

The committee headed by Cross River State Governor, Bassey Otu, is to work towards deepening states’ engagements within the Electricity Reform Act 2023 and the National Electrification Strategy and Implementation Plan.

Following a presentation by the Managing Director of the Rural Electrification Agency (REA), NEC observed that Nigeria needed a reformed and diversified electricity system, noting that by empowering states, accessibility and affordability of electricity could be enabled, ensuring that all regions effectively meet their specific energy needs.

Members of the committee included Governors Dikko Radda of Katsina, Inuwa Yahaya of Gombe, Ademola Adeleke of Osun, Hope Uzodimma of Imo, and Caleb Mutfwang of Plateau.

Others were Ministers of Finance, Mr Wale Edun; Budget and Economic Planning, Sen. Atiku Bagudu; Power, Mr Adebayo Adelabu; Special Adviser to the President on NEC and Climate Change; Special Adviser to the President on Power; Managing Director, Rural Electrification Agency (REA), and Managing Director, Niger Delta Power Holding Company.

Earlier, Shettima had outlined issues before the Council that required urgent attention to include energy infrastructure, human capital development, creative industries, fiscal strategy, industrial innovation, and long-term development planning, describing them as foundational to the transformation Nigeria needs.

Shettima explained that, it was for this that experts and stakeholders from some of the critical sectors had been invited to share their insights and contributions.

He said: “The past few months of collapses in our national power grid compel us to reinforce the pace with which we are adopting and implementing the National Electrification Strategy. Energy access is a fundamental right, not a privilege. It is the oxygen of economic growth.

“Our blueprints must, therefore, strive to expand access, empower rural communities, and drive productivity, especially for MSMEs. I hope that our discussions today will inspire solutions to light up homes, power businesses, and fuel Nigeria’s industrial future.

“Whatever path we agree upon, it is clear that a private-sector-led distributed renewable energy generation approach is essential to increasing electricity access for households and small enterprises alike.”

The vice-president also urged the Council to take Nigeria’s creative industry seriously, saying it presented an avenue to redefine the nation’s economic trajectory.

According to him, “New technologies have not only amplified the global appeal of our arts, crafts, and culture but also opened up revenue streams and job opportunities for Nigerians.

“Our music, films, art, and cultural heritage are not just global symbols of Nigeria’s soft power but also vital engines of economic growth. We cannot afford to relegate the promise of turning creativity into wealth, empowering our youth, and positioning Nigeria as a hub of innovation and cultural excellence,” he added.

Meanwhile, the position of the subnational on state police will be ready by the next NEC meeting.

Deliberating on the updated submission on the establishment of state police, Council mandated states that were yet to make their submissions on the subject matter should comply within the next one week to enable NEC to come up with a unanimous position on state police at the next meeting.

Shedding more light on the issue while speaking with newsmen after the meeting, Governor Douye Diri of Bayelsa State disclosed that NEC gave the Federal Capital Territory (FCT) and the three states namely Adamawa, Kwara and Kebbi, that have yet to submit their position on the creation of state police one week to come up with their report.

“Council was updated with the submission of the establishment of state police, and it was reported that 33 states have submitted their positions, while three states are yet to do so, and these three states are Adamawa, Kebbi and, incidentally, Kwara, which is the chairman of our forum, and the FCT, are yet to submit their positions. 

“The council mandated these remaining states and FCT to make their submissions within the next one week, and resolved to present a consolidated states’ position on the state police to the National Economic Council at our next meeting.”

NEC had on September 4, 2024, threatened to impose its decision on states that have failed to submit their reports on state police.

On Thursday, February 15, 2024, President Bola Tinubu agreed on the need to establish state police, as recommended by governors, to curb rising insecurity in the country.

States were subsequently directed to submit their reports to the council for deliberation and action.

Other highlights of the NEC meeting included presentation by the Accountant General of the Federation on Account Balances update as at November 20, 2024 vis Excess Crude Account                  $473,754.57; Stabilization Account                      – N33,324,135,076.39 and Natural Resources Account                    – N26,847,747,874.93.

There was presentation on Special Agro-Industrial Processing Zones by the SAPZ’s National Programme Coordinator, Dr Kabir Yusuf. 

The programme is currently being implemented at varying stages in eight States of the federation namely Kano, Kaduna, Kwara, Oyo, Ogun, Imo, Cross River, and FCT, under phase 1 of the Special Agro-Industrial Processing Zones.

Under the second phase, a total of 24 states were visited by the selection team to assess their readiness for the programme. 

The implementation model is a government and private sector-led (SPV) arrangement hence, discussions are underway to partner with private developers & co-financiers on the project estimated to cost about $1 billion.

The SAPZ coordinating office is working out a multi-tranche financing arrangement to accommodate additional states over the next three years. It is structured in three tranches.

The prayers included provision of intervention funds for each State’s ATC to boost production.

Office of the VP to use its convening power in obtaining additional co-financing for the SAPZ phase 2 (SAPZ-2) States.

Fast-tracking of the BADEA $300m multi-tranche financing for SAPZ-2 by the Federal Ministry of Finance.

In the resolution, NEC urged states to key into the programme and noted that the SAPZ will be a game-changer if states gave it the necessary support and consideration.

States to hold a special meeting with the Minister of Agriculture and the SAPZ management to address issues and requests made in the presentation by the SAPZ management.

There was a presentation on the New Nigeria Sovereign Investment Authority (NSIA) Governing Council.

The presentation by the Minister of Finance requested NEC to ratify the nomination of persons to serve as chairman and members of the governing council of the Nigeria Sovereign Investment Authority (NSIA).

Members of the Council, when appointed, shall have the opportunity to raise questions of and give counsel to the Board and Management of the Authority.

The council, in its resolution, commended the management of NSIA and recognised the importance of the fund towards investment in critical sectors of the economy.

Council consequently approved NSIA’s request to onboard First Abu Dhabi Bank (FAB) as an alternate custodian.

A presentation by the Executive Vice Chairman/CEO of the National Agency for Science and Engineering Infrastructure (NASENI) showed the agency’s latest innovations and strategic initiatives including products like a solar irrigation pump, electric vehicles, coal-based fertilizer, NASENI solar home systems, and smart devices.

States were urged to leverage NASENI’s tailored support for manufacturing, industrial development, and access to public sector markets, alongside infrastructure and policy benefits to enhance economic growth. 

In its resolutions, NEC directed NASENI to repair tractors and other agricultural machinery across the country and scale up the establishment of lithium battery factories in regions rich in raw materials.

KACRAN Asks Northern Governors to Drop the Idea of Establishing State Police

The Kulen Allah Cattle Rearers Association of Nigeria (KACRAN), has called on governors of states in the north not to consider establishing state police in their region.

The association, in a statement by its National President, Khalil Bello, said should state police be established in the north, it would not solve the challenges of insecurity but rather add other challenges.

“Kulen Allah Cattle Rearers Association of Nigeria (KACRAN) wishes to express its deep concerns and firm opposition to the proposed establishment of State Police in Northern Nigeria. 

“This proposal has significant implications that could impact financial stability, administrative efficiency, and social harmony in the region,” he said.

The association added that major concerns over the establishment of state police included financial burden, insisting that establishing a State Police force entailed a substantial financial commitment. 

“For example, a state with 15 local governments could require approximately 10 billion Naira for initial setup costs, including recruitment, training, equipment, and infrastructure development. 

“In larger states like Kano, these expenses could rise to about 30 billion Naira. Additionally, maintaining such a force would demand around 3 billion Naira monthly for salaries and operational costs.

“These expenditures could divert critical resources from essential public services such as education, healthcare, and infrastructure, which are vital for the development and well-being of the region.”

Bello, added in the statement that there was concern over job security and crime rates, noting there was a significant concern regarding the job security of newly recruited officers. 

“If budget constraints or administrative changes lead to job losses, these trained individuals might resort to criminal activities, potentially increasing crime rates within communities. Ensuring stable employment for these officers is crucial to maintaining peace and security,” he added.