(PANA)
Lagos, Nigeria - Electricity generation and distribution have been deregulated in Nigeria, paving the way for states and local councils to generate and distribute electricity within their areas.
The deregulation came via two new regulations issued by the Nigerian Electricity Regulatory Commission (NERC) - the ''NERC Regulation on Embedded Generation 2012,” and the “NERC Regulation for Independent Electricity Distribution.”
The implication is that states and local governments with enough financial capability can now take advantage of the regulations to provide adequate power for their constituents, the private Punch newspaper reported Monday.
“These are the most important regulations today in this country because we do not have enough electricity to go round. We also have so many constraints preventing us from having enough to generate, transmit and distribute,'' NERC Chairman Sam Amadi was quoted as saying.
“From now on, the much expected expansion in the electricity supply to the end- users would be easily realisable. With these regulations, we have further unlocked the opportunities in the sector to community, private and government participations. The laws are expected to revolutionize the sector,” he added.
Nigeria, with a population of about 160 million people, generates only about 4,000 mega watts (MW) of electricity, which have proved chronically inadequate for the country and caused daily blackouts, forcing businesses and homes to generate their own electricity through power generators.
Many analysts have blamed the low power generation on the monopoly hitherto enjoyed by the state-run Power Holding Company of Nigeria (PHCN), under an old law that has precluded states and private investors from generating and distributing electricity.
News of the deregulation of the power sector comes as the nation is experiencing a severe power outage, due to the shutdown of the nation's premier hydro-electric power station, Kainji Dam, due to excessive water leakages.
The station, which was built in 1968 with an installed capacity for 760MW, was providing only 450MW before the shutdown due to years of non-maintenance.
The deregulation came via two new regulations issued by the Nigerian Electricity Regulatory Commission (NERC) - the ''NERC Regulation on Embedded Generation 2012,” and the “NERC Regulation for Independent Electricity Distribution.”
The implication is that states and local governments with enough financial capability can now take advantage of the regulations to provide adequate power for their constituents, the private Punch newspaper reported Monday.
“These are the most important regulations today in this country because we do not have enough electricity to go round. We also have so many constraints preventing us from having enough to generate, transmit and distribute,'' NERC Chairman Sam Amadi was quoted as saying.
“From now on, the much expected expansion in the electricity supply to the end- users would be easily realisable. With these regulations, we have further unlocked the opportunities in the sector to community, private and government participations. The laws are expected to revolutionize the sector,” he added.
Nigeria, with a population of about 160 million people, generates only about 4,000 mega watts (MW) of electricity, which have proved chronically inadequate for the country and caused daily blackouts, forcing businesses and homes to generate their own electricity through power generators.
Many analysts have blamed the low power generation on the monopoly hitherto enjoyed by the state-run Power Holding Company of Nigeria (PHCN), under an old law that has precluded states and private investors from generating and distributing electricity.
News of the deregulation of the power sector comes as the nation is experiencing a severe power outage, due to the shutdown of the nation's premier hydro-electric power station, Kainji Dam, due to excessive water leakages.
The station, which was built in 1968 with an installed capacity for 760MW, was providing only 450MW before the shutdown due to years of non-maintenance.
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