The Electricity Act, 2023 As A Legal Framework For Resolving Nigeria’s Power Challenges

In an unprecedented move demonstrative of his commitment to reposition Nigeria to attain energy sufficiency for national development, His Excellency, President Ahmed Bola Tinubu, GCFR recently assented to the Electricity Bill, 2023 barely few days after his inauguration and assumption of duties as the President and Commander in-chief of the Federal Republic of Nigeria.

The Electricity Bill, 2023 sponsored by Senator ( Dr) Gabriel Suswam, CON, immediate past chairman of the Senate Committee on Power was crafted based on a diagnostic report and recommendations of experts regarding extant statutory and operational challenges confronting the Nigerian power sector since the conclusion of the privatization exercise in 2013. Thus, while the repealed Electric Power Sector Reform Act, 2005 provided the legal and institutional framework for the reform phase of the Nigerian power sector initiated and implemented by the Federal Government between 2000–2013, the Electricity Act, 2023 provides the ideal legal and institutional framework that will guide the post –privatization phase of the industry in Nigeria. The Act seeks to provide the framework that would attract more investors to leverage on the modest gains of the privatized and competitive electricity industry in Nigeria to accelerate growth in power generation capacity and improve utilization of generated power to minimize aggregate value chain loses.

It would be recalled that President Tinubu’s predecessor, President Muhammadu Buhari GCFR had at the twilight of his administration assented to Bill No. 33 which was a constitutional alteration Bill passed by the National Assembly and duly ratified by the requisite number of State Houses of Assembly to remove the lacuna under item F, paragraph 14(b), part II ,Second Schedule to the Constitution of the Federal Republic of Nigeria, 1999. Prior to this constitutional alteration, the legislative powers of State Houses of Assembly over electricity within the various States of the Federation was restricted to “areas not covered by the national grid system within the State” This restriction was counterproductive as it hampered electricity access to many communities and also undermined effective regulation of electricity within states’ boundaries.

It must, however, be clarified that while the Constitutional alteration Bill No.33 assented to by the immediate past President Buhari essentially removed the lacuna that hitherto existed under paragraph 14(b) , part II, Second Schedule to the Constitution to give States of the Federation unfettered powers to make laws for electricity generation, transmission and distribution in every area within the state territory, the Electricity Act 2023 is to serve as a comprehensive statutory framework to guide this new regime of collaborative relationship between the Federal Government and the Federating States in the area of electricity regulation. In this regard, the Electricity Act expressly demarcate regulatory powers between the Federal Government and the Federating States by vesting the Federal Government powers to develop standards for adaptation and implementation by State Governments and regulation of the national grid, transnational and inter-state electricity distribution, while the Federating States are vested with regulation of intra-state electricity generation, transmission and distribution consistent with the provisions of the Constitution of the Federal Republic of Nigeria.

The expected practical impact of the Electricity Act, 2023 is that State Governments can now regulate mini-grids, embedded power, independent electricity distribution networks (IEDN)/ independent electricity distribution networks operators (IEDNOs) and independent electricity transmission networks (IETN)/ independent electricity transmission networks operators (IETNOs) thereby decentralizing electricity regulation and creating huge investment opportunities for private investors in off-grid electricity generation, transmission and distribution. Under the Act, individuals and corporate organizations can generate and distribute electricity in maximum aggregate of 1 Megawatt (MW) and 100 Kilowatts (KW) respectively without a license or permit from regulatory authorities. Successor Distribution companies can also enter into franchise arrangements in order to improve on existing infrastructure and at the same time establish subsidiaries in various States of the Federation for intra-state electricity distribution businesses.

In the area of rural electrification, while the Rural Electrification Agency is retained at the Federal level with clear provisions made for its mandate in managing the Rural Electrification Fund and promoting electricity access to rural, unserved and underserved communities through the use of various renewable energy sources and technologies, States are empowered under the Act to take leading collaborative role with the Federal Government in rural electrification while at the same time mobilizing Local Governments at the State levels to participate in the provision of street lights through the Local Government Rural Electrification Committees all with the sole objective of decentralizing electricity and attracting more investments.

As a further recognition of this new era of collaborative regulation of electricity business between the Federal and State Government, and to ensure policy harmony, the Act, for the first time gives statutory recognition to a body known as the National Power Policy Coordinating Council comprising of representatives of the two levels of Government and other critical stakeholders in the Nigerian power sector. The Council has among other responsibilities the duty of considering and adopting an integrated electricity policy and strategic implementation plan for the approval of the National Economic Council. The resource plan for the sector is to be reviewed every 5 years to ensure alignment in resource planning across the power value chain and responsiveness of government policies in the sector to prevailing realities and exigencies.

Another important point to note is that prior to the enactment of the Electricity Act, 2023, a plethora of legislations relevant to power sector were in existence but not consolidated and with several amendments to each of these legislations, it was usually a herculean task for stakeholders to track these legislations for compliance. With the enactment of the Electricity Act, 2023, all these legislations relating to the Nigerian Electricity Supply Industry (NESI) with all observed post –privatization challenges are comprehensively articulated and addressed. While the consolidation of all electricity related legislations entails their repeal, various agencies such as the Nigerian Electricity Management Services Agency and the Rural Electrification Agency (REA) were retained under the Act while the National Power Training Institute is now establish to address the problem of power challenges in the sector with the Nigerian Electricity Regulatory Commission (NERC) retained as an independent apex regulator of the power sector at the Federal level.

By and large, the Act contains far reaching provisions on a wide range of issues critical to unlocking Nigeria’s full potentials in electricity generation and increased energy access. These include clear provisions on the status of transitional entities such as NBET, provision on unbundling of Transmission Company of Nigeria into a Transmission Service Provider (TSP) and Independent System Operator (ISO), elimination of constraints around tenured licenses, inclusion of transitional provisions that allows NERC to amend licenses to allow existing successor companies to establish subsidiaries for their operation within State boundaries, provisions on business continuity to allow for uninterrupted services in cases of revocation of licenses, provision on the intervention powers of NERC in cases of distress, non –performance and managerial failure, provisions on the operationalization of Power Consumer Assistance Fund(PCAF) and gradual elimination of cross –subsidies, improved funding for rural electrification, consumer protection and prevention of unfair competition, severe punishment against electricity theft and related offences, metering and promoting the contribution of renewable energy to Nigeria’s energy mix. For the first time, provision has been made for generation and utilization of electricity from Nigeria’s abundant renewable energy sources such as solar, wind, biomass, etc with adequate provisions made to incentivize investors and ensure adequate regulatory support in terms of feed in-tariffs and renewable generation and purchase obligations ( RGOs/RPOs).

The Electricity Act, 2023 is therefore an important piece of legislation that would change the fortunes of the Nigerian power sector if properly implemented. The nation should be proud of 9th National Assembly and particularly the sponsor of the Bill, Senator Gabriel Suswam for this monumental legacy. President Bola Tinubu should also be commended for swiftly signing the Electricity Bill into law.

Written by:

Emmanuel Ukera

Fairfields Solicitors

South Africa, UAE In Talks On Trade And Investment Opportunities

 

 

 By Ebi Imisi

 

UAE Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi has led a delegation of UAE government officials and business leaders to South Africa to begin communication on trade and investment opportunities between the two countries.

 

This collaboration will seek to promote development in key sectors such as logistics, food production, tourism and energy in both countries.

 

According to Dr. Al Zeyoudi, the UAE is eager to build partnerships with like-minded nations that can catalyse growth, strengthen supply chains and create new pathways for investment.

 

“Amid global challenges, the UAE is taking bold steps to reimagine our economy, and trade is central to our ambitions to accelerate economic diversification, create long-term, sustainable growth and attract new forms of investment. We are also at the forefront of a new era of global trade, championing multilateralism and pioneering the use of technology to drive new efficiencies and enhance access to the global trading system.

 

“As the UAE’s second-largest trade partner in Africa, responsible for 8% of the UAE’s total non-oil trade with the continent, South Africa has the potential to become an important partner in these efforts. I have seen first-hand the dynamism of the private sector and recognise the government’s desire to establish Sub-Saharan Africa’s principal hub for industry, energy, logistics and services.

 

"Our investment community understands the scale of the opportunity in front of us, and we are ready to work in unison to support new industry sectors, strengthen south-south trade corridors and push our bilateral trade well beyond the US$6.5 billion we recorded in 2022.” He explained.

 

Also, the UAE team witnessed the signing of an agreement between the UAE power company AMEA, South African energy buyer Green Co, and Standard Bank to finance AMEA’s strategic investments into South Africa, which will help meet the nation’s growing demand for electricity.

 

 

 

 

 

 

Why My Administration Deserves Another Tenure - Gov Diri

...Says He Won’t Depend On Violence To Get Power

...Bayelsa Flooding Being Addressed

Bayelsa State Governor, Senator Douye Diri, has given thumbs up to his administration, saying it deserves a second term based on its performance in the last three years plus.

Speaking on Arise Television current affairs programme, “The Morning Show” on Thursday, the Bayelsa governor said his administration had made appreciable progress in virtually every sector of the state's economy such as infrastructure, education, health agriculture, sports, skills acquisition and human capacity development.

Senator Diri had on Wednesday emerged as the candidate of the Peoples Democratic Party (PDP) for the November 11, 2023 governorship election in the state.

He was the sole aspirant in the governorship primary election held in Yenagoa.

His Chief Press Secretary, Mr. Daniel Alabrah, in a statement, quoted the governor as saying it is only those desperate for power that will not see and appreciate what the government had done during the period to improve the lives of Bayelsans.

He said through investments in agriculture, various skills acquisition programmes and support for small scale businesses, his administration created jobs outside the state’s civil service.

While admitting that there are a few roads in the state capital that still need attention, the governor stated that so far more than 30 new concrete roads have been constructed apart from the ongoing and completed big-ticket road projects to open up the state and link up communities.

Responding to a question on the state’s internally generated revenue, he advocated for the practice of true federalism in the country, which he said would boost the revenue of the state. 

He however informed that an economic summit will soon be held to chart a new course for the state's economy.

On the issue of flooding, the Bayelsa helmsman said a flood and erosion control agency has been established with the responsibility of proffering holistic solutions to the menace. 

He said when the agency is fully functional, the issue of flooding in the state will be better handled and that the administration was committed to preventing past ugly occurrences.

On the governorship election, Governor Diri said neither his government nor his party was afraid of any opposition party in the state. According to him, the PDP in the state was more united than before and was ready to face any candidate presented by the opposition in the election.

His words: "Those who are power hungry will always come from the viewpoint of attack. Like I said, there are some who have eyes but cannot see. 

“If you come to Bayelsa today, you will notice and experience peace and security, which had eluded the state. 

"Bayelsa State is the goose that lays the golden egg. Let us operate a proper federalism and see whether our IGR will be low. 

“In terms of employment, government has decided to encourage our people to be self-employed and look in the direction of the private sector. We set aside N100m monthly to support small businesses in the 105 wards in the state. 

“We have also encouraged our youths to engage in sports to develop and use their potential. On security, we have equally made good progress.”

Responding to a question on roads, the governor said: “Any Bayelsan who says our roads are not plyable is lying. We have built roads. Yes, there are some roads that need the attention of government but that is not to say we have not done anything in that regard.

"We are ready for whoever will emerge from the primaries of other parties. But like I said, we can no longer depend on violence to clinch power. Power comes from God. 

“Let me assure you that our party is far more united than what we had previously. The PDP won convincingly in the just concluded elections. So, it shows that we are on ground. 

"I have set up an agency to deal with flood and erosion. The agency will commence work almost immediately and is expected to come up with both temporary and holistic methods to check flooding."

Late Briggs: We Lost An Academic Iroko - Gov. Diri

Bayelsa State Governor, Senator Douye Diri, has described the death of the late Prof. Nimisoere Dimkpa Briggs as a huge loss to Nigeria and the Ijaw nation in particular.

He said the late scholar was an Academic Iroko whose passing has created a yawning gap in the pantheon of the Ijaw ethnic group and Nigeria’s academic greats.

Prof. Briggs, who died on Monday at the age of 79, was Emeritus Professor of Medicine, former Vice Chancellor, University of Port Harcourt, Pro Chancellor, Federal University, Abakaliki and the Bayelsa Medical University as well as  Chairman, Committee of Pro Chancellors of Nigerian Universities.

Governor Diri said the Kalabari-born academic, who hails from Abonnema in Rivers State, impacted and inspired a generation and countless others with his outstanding record of achievements.

While commiserating with his family, the Kalabari people and the academic community, the Bayelsa helmsman noted that Prof. Briggs’ wise counsel,  candour, dedication and commitment to service of Nigeria and humanity will be greatly missed.

“The news of Prof. Briggs death was shocking and sad. The Ijaw nation and indeed Nigeria has lost an intellectual giant and academic Iroko. 

“Prof. Briggs served our country and the academic community with commendable dedication and commitment. His wise counsel and candour were the hallmark of a man of service. We will all miss his humility and affable nature,” Diri said in a statement issued by his Chief Press Secretary, Mr. Daniel Alabrah, on Wednesday.

Diri, on behalf of the government and people of Bayelsa State, prayed God to comfort the family and grant them the grace to bear the loss.

Gov. Diri Expresses Sadness Over Boat Mishap

 

Bayelsa State Governor, Senator Douye Diri, is deeply saddened by the fatal boat incident at Okoroma community along the Brass waterways in Brass Local Government Area of the state.

Yet to be confirmed number of persons are said to be missing in Thursday’s mishap involving a local passenger boat.

The boat was said to be carrying scores of passengers and goods worth millions of Naira from Yenagoa to the Brass island and neighbouring communities when it suddenly went under reportedly due to overweight.

Governor Diri has directed the relevant government agencies, including security agencies, to collaborate in the search-and-rescue efforts and ensure the recovery of all missing persons.

The Bayelsa helmsman sympathised with injured victims and the families that lost persons in the sad incident.

He prayed that God will succour them over the unfortunate mishap.

However, he added that the government would review the cause of such incidents in order to take steps to ensure safety of lives and goods on the state’s waterways.

Senegal Harvests First Experimental Homegrown Wheat

 

Senegalese researchers have begun harvesting a crop of experimental homegrown wheat, the latest step in a years-long effort to reduce reliance on imports.

The second most consumed cereal after rice, wheat is an important staple in the bread-loving West African nation.

But Senegal, like many of its neighbours, depends entirely on foreign supplies. It imports 800,000 tonnes of the grain per year.

Its tropical climate is not naturally suited to wheat but domestic trials have been underway for years.

Supply chain problems, rising grain prices and inflation caused by the war in Ukraine have added urgency to the country’s efforts to achieve self-sufficiency.Since late last week, researchers from the Senegalese Institute for Agricultural Research (ISRA), a public research institute, have been harvesting four varieties of wheat on a demonstration plot in Sangalkam, 35 kilometres (22 miles) from the capital Dakar.

Three of the varieties are Egyptian and the fourth was developed by the institute.

It operates five demonstration plots in total, two near Dakar and three in the Senegal River Valley and has tested hundreds of wheat varieties, Amadou Tidiane Sall, one of the researchers, told AFP.

Many have proved unsuitable. The Sangalkam crop, one of several successful experiments by the institute, was sown in early January and matured in three months during Senegal’s cold season.

Agriculture Minister Aly Ngouille Ndiaye visited the plot earlier this month.

He said he had requested Egyptian seeds on a visit to the North African country for the United Nations’ COP27 climate conference in November.

“We have significant potential,” the minister said during his visit, promising the government would work with the private sector to expand trial plots.

He acknowledged that a lack of adequate water for irrigation posed a significant challenge.

Not everyone is convinced that wheat can be grown at scale in Senegal.

Amadou Gaye the president of the National Federation of Bakers of Senegal, who represents some 2,500 bakeries across the country told AFP he would prefer to see resources dedicated to producing local cereals such as millet, maize and sorghum.

 

Global energy industry invited to Calgary in 2023 for next World Petroleum Congress

 

By Kolawole Yemisi Victoria

The city’s mayor, Jyoti Gondek, invited the world to the north to meet the innovators and exchange ideas with some of the brightest minds in the energy sector at the next World Petroleum Congress.

The City of Calgary officially became the host city of the 24th edition of the global event on Wednesday evening when Houston wrapped up the four-day event at a special closing ceremony. Calgary will host the prestigious event Sept. 17–21, 2023.

Gondek said Calgary has always been a world leader in the energy industry and is now poised to be a leader in the energy transition economy.

“It has been uplifting to observe energy industry stakeholders pulling in the same direction on a path to net zero, the theme of the 2023 WPC event,” she said in the closing ceremony. “I have tremendous optimism about our future, given all of the great minds that are producing innovative ideas that will ultimately produce energy in ways that we have not yet imagined to meet the needs of our future.”

The mayor was part of the Team Canada delegation at the four-day event, which drew 5,000 participants from 70 countries featuring more than 300 speakers. Panelists included Alberta Energy Minister Sonya Savage, Saskatchewan Energy and Resources Minister Bronwyn Eyre and Suncor Energy Inc.’s Mark Little, among others.

Gondek reflected on the messaging at the Houston event, which revolved around the themes of putting aside competition in the interest of collaboration, as well as the need to communicate clearly and effectively with citizens that the energy transition is a priority and one that will take time. It’s also important to ensure that incremental changes, adaptations, and transformation are well described to show progress as it occurs.

“They further spoke of the need for quick and intentional attraction of global capital — this imperative in funding and critical research and technology shifts necessary to achieve true energy transformations,” said Gondek. “In short, all of us agree that transition and transformation is our collective task. And that work starts right now.”

Throughout the conference the delegates heard that Houston was the energy capital of the world.

Savage noted in her closing remarks that Calgary is the “the energy capital of Canada.” She said WPC 24 will showcase that the province is a leader in the energy sector — not only with oil and gas but the emerging sources of energy including hydrogen, petrochemicals, geothermal, and all of the sources of energy that are going to be entering the global energy mix as the world moves forward.

Michael Hampton, president of the WPC organizing committee, said bringing the event to Houston was a long time coming as the bidding on this event more than 10 years ago.

“We had to work through many difficult issues through COVID and everything that we’ve been facing over the past number of months and, frankly, years,” he said. “To have success like we’ve been able to do this week with 5,000 registered attendees from 70 countries and 300 speakers is truly an incredible achievement that we’re very proud of.”

 The mayor of Houston, Sylvester Turner, added the teams were able to show a successful and safe event can be done despite the ongoing pandemic. Turner also reflected on the discussions around the future course for the energy sector, innovation and energy solutions.

“We have acknowledged that the energy transition is here, and it is on us to lead,” said Turner. “And I heard this week from many of our energy executives, the industry needs to better tell their story about powering the world while being a critical and fundamental part of reducing the emissions to take on climate change. The story about leading the energy transition is very much real and again, simply, [I] want to echo the remarks by [others]. I sincerely hope that we can continue to mutually advance this conversation.”

David Woodward, executive director of the meetings and conventions team at Tourism Calgary, said they are excited to welcome the world and to celebrate the industry in 2023.

“With the many delegates that will join us in 2023, the Congress will bring tremendous economic impact to the City of Calgary and at a time where, following the pandemic, we are in a time of recovery,” he said. “We’re looking forward to hosting all the delegates and sharing our western hospitality with the World Petroleum Congress.”