27 October 2015, Abuja – Global financial advisory firm, Deloitte has said that the Nigerian Bulk Electricity Trading (NBET) Plc should remain robust in its roles within Nigeria’s electricity industry, stressing that further developments within the sector would require the existence of strong institutions like the NBET.
Deloitte which secured through a competitive tender process, a deal to review the organisational processes of NBET, factoring into its operations, current realities in the country’s power market, explained in Abuja that developments in the sector indicate that the government’s reforms were predicated on ‘very good reasons’.
The Managing Director, Deloitte Africa, Mr. ThiruPillay, who led a team of its top cadre personnel on a courtesy visit to NBET, which is also known as the Bulk Trader, said that Nigeria could sustain the level of investment into her power sector by optimising the operations of key institutions like the bulk trader.
Pillay stated that in as much as the operational direction of the sector remains quite accurate, the confidence of investors in the sector could be buoyed further with government’s optimisation of its key agencies in the sector.
“A good plan poorly executed is the same as a bad plan. Obviously, the level of investment has grown, and that is a positive, but for investors, there is always the need for efficiency. Optimisation is still very important because the direction is correct and the reforms are predicated on very good reasons,” Pillay said.
While applauding NBET’s choice to review its internal systems to reflect current realities, Pillay stated that Deloitte’s findings from its advisory services are that firms that commit to periodic review of their operations to absorb extant realities in their sectors eventually come up with practical strategies to realise their objectives.
Responding, the Managing Director of NBET, RumundakaWonodi disclosed that the decision of the Bulk Trader to contract Deloitte to help review its internal systems was borne out of the need for it to stay atop in its obligations to the market.
“The industry (power) is opening up, and capacity building is very important, working with firms to better understand our business is important to us,” said Wonodi.
He however noted that NBET with an approved structure with which it was established, also needs to take into consideration the changing conditions of business in the industry.
Wonodi maintained that the realities of keeping its operational relationship between market operators in top shape requires that the review be undertaken to set and attain targets through clear work schedules for its personnel.
“Deloitte is helping us to review in our organogram to identify gaps and identify skills most suitable for us to deliver on our mandate and also meet with the realities in the present electricity market.
“We came into a market with no precedent and people operated under such conditions. Unlike most companies in the electricity sector, we do not hold physical assets but people and to utilise that human assets, reviewing the organogram becomes critical,” Wonodi said.
On the choice of Deloitte for the systems revew, Wonodi explained that the Bulk Trader had opened a bid process from which the firm emerged amongst other bidders including KPMG and PWC, to undertake the exercise.
“Once we have this review of structure, we can now efficiently evaluate and appraise performance within one to two years.
“There is some sort of internal measurement system to evaluate the strategy and periodically as the Board deems, they may decide if they should get external firm to assess the roles being played in the organisation,” he explained on its expectations from the exercise.
NBET which was incorporated in 2010 as a sole bulk purchaser of electricity for resale to distribution companies, leverages on the Power Purchase Agreement (PPAs) and vesting contracts it signed with generation and distribution companies respectively to stabilise trade in the market.
NBET has over $800 million capitalisation fund in its kitty to undertake and stabilise such transactions in the electricity industry.
- This Day