Power sector industry watchers say challenges facing the power sector may remain unresolved in 2017 unless President Muhammadu Buhari urgently addresses the lingering issues surrounding the appointment of a new chairman and commissioners for the Nigerian Electricity Regulatory Commission (NERC) among others, BusinessDay reports.
They say government also needs to approve the Nigerian Bulk Electricity Trading plc (NBET) Bond Issue to address the liquidity challenges in the power sector, or else the sector will find it difficult to overcome its current challenges in 2017. To them, there is urgent need for the Muhammadu Buhari-led administration to tackle these issues limiting the key sector from operating at its utmost even in the face of the economic challenges witnessed in 2016.
In particular, Ayodele Oni, a specialist in international energy investment law and policy, suggests that the government should introduce incentives for the exploration of alternative generating methods that avoid crude and other fossil fuels, including nuclear energy. Oni also notes that the government needs to liberalise gas prices and cover any shortfall for domestic demand with a subsidy.