A Review of the Nigerian Energy Industry

Nigeria sets June deadline for improvement in power

Power transmission lines*Begins review of Manitoba Hydro management contract for TCN

Oscarline Onwuemenyi

08 January 2014, Sweetcrude, Abuja – The The Federal Government has charged all principal players within the power sector to commit to ensuring that power supply to customers is significantly and visibly improved by June this year.

Minister of Power, Chinedu Nebo, who stated this in Abuja on Tuesday while inaugurating the new TCN Board stated that government shall no longer tolerate non-performance given the amount of investment it has made in the sector.

According to him, “Much is expected of us all and the entire nation is waiting for us. The significant investment of the Federal Government in both material and human resources must translate into improved service delivery during the year. Government will no longer tolerate any excuse of non-performance from any of the sector players from both the Ministry particularly and our new private sector partners.”

Meanwhile, the Federal Government has begun a process of reviewing the three year management contract with Canadian firm, Manitoba Hydro International (MHI) for the Transmission Company of Nigeria (TCN).

Government has been under pressure

to adjust the agreement which domiciles the Electricity sector’s Market Operator and System operator in the TCN. The Market Operator receives monies collected by distribution companies across the country and allocates same to the various components of the electricity provision value chain.

Nebo announced that the board under the leadership of the immediate past chairman has so far reviewed the Schedule of Delegated Authority earlier issued to Manitoba Hydro International (MHI), the management contractors for the utility company. “It is therefore expected that the concern of the Nigerian public regarding the over-hyped powers of MHI would now be an issue of

the past,” he said.

He added, “I am also aware that the Board has also considered and made

recommendations on some amendments to the Management Contract with a view to making MHI more responsive to the changing needs of TCN.

“That agreement needs to be studied and if amendments need to be made, it should be made. That process has started, my dear chairman. I am also aware that the board has made recommendation to ensure that our people who are counterpart directors and who are supposed to be under tutelage are getting instructed

and empowered in best practices in transmission network management.

“These efforts are also expected to hold MHI more accountable towards

achieving the key performance indicators embedded in the contract,” he explained.

In his remarks, Chairman, Senate Committee on Power, Fred Adudua called for the unbundling of the TCN, noting that MHI should have been given just an advisory role rather than be allowed to manage the transmission network.

Chairman of the new TCN Board, Alhaji Ibrahim Waziri in his acceptance speech thanked the government for giving him the opportunity to serve the country, assuring that he would do his best to ensure that generated power are evacuated to the distribution companies.

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