Govs seek consultants to break discos’ monopoly amidst power supply issues

PUNCH

Governors of the 36 states of the federation have agreed to work together to tackle epileptic power supply in the country, Sunday PUNCH has learnt.

As part of measures to achieve this objective, the governors have agreed to take steps to break the monopoly of Discos in power distribution across the states.

In March 2023, then-President Muhammadu Buhari signed into law the constitutional amendment allowing states in the country to licence, generate, transmit, and distribute electricity.

This was made known in a tweet by the presidential media spokesperson, Tolu Ogunlesi.

“President #MBuhari has signed 16 constitution amendment bills into law. By this signing, State Houses of Assembly and judiciaries now have constitutionally guaranteed financial independence, while railways have moved from the exclusive legislative list to the concurrent list.

“Another landmark change. By virtue of the presidential assent, Nigerian states can now generate, transmit, and distribute electricity in areas covered by the national grid. (This) wasn’t allowed pre-amendment. This is genuine, realistic restructuring — through the constitution,” he wrote.

With the Fifth Alteration Bill No. 33, Devolution of Powers (National Grid System), Nigeria’s 36 states can now generate their own electricity.

President Bola Tinubu recently signed the Electricity Act of 2023 into law, marking an important development in the country’s electricity sector.

This Act aims to break the monopoly in electricity generation, transmission, and distribution at the national level.

The Act grants the power to generate, transmit, and distribute electricity to states, companies, and individuals.

In March 2023, Buhari had signed a constitutional amendment allowing states to license the generation, transmission and distribution of electricity.

Based on the amendment, Nigerians can now participate in the electricity supply business, which was previously the exclusive preserve of the FG, as administered by the stage regulator, the Nigerian Electricity Regulatory Commission.

States are required to create their laws and the state governors must sign those laws.

With the constitution amended, and the National Assembly having passed a law for the electricity sector in line with the amendment, the states will now proceed to establish their laws based on the constitutional amendment.