Africa Centre for Energy Policy’s Post

Effective monitoring and evaluation are key to the success of Nigeria's power sector reforms. Discover the latest insights and challenges in the unbundling of TCN. https://lnkd.in/dHkFmtay #PowerSectorReforms #NERC #NigeriaEnergy #AndersenNigeria #Nigeria

A bit of history on this one…. 😊 I started researching on the power sector subsidy sometime in 2021 and this was born out of the several intervention schemes made by the Federal Government that seem to produce very little result. Having considered other jurisdictions and compared them with Nigeria, it became worrisome that the Power Consumer Assistance Fund (PCAF) established to subsidize electricity tariff for underprivileged persons under the repealed Electricity Power Sector Reform Act, 2005 and newly enacted Electricity Act, 2023, has remained moribund about 19 years after. According to a World Bank Report, 80% of the subsidy interventions provided by the Federal Government benefit the richest 40% of the population and only 8% benefit the bottom 40%, and of this, only less than 2% benefit the poorest. This research paper which has now metamorphosed into an article (in a bid to make it concise for publication 😅) discusses a proposal on the implementation of the PCAF. In Part One published on Nairametrics here : https://lnkd.in/dP8aGdRJ. I provided insight into: 💥 Impact of the current subsidy arrangement 💥 An overview of the PCAF under the new Electricity Act; 💥 A proposed structure for the PCAF to operate as a targeted subsidy scheme and the benefits; 💥 The World bank metrics for analyzing the performance of targeted subsidy scheme. 💥 The implementation mechanism of the PCAF to be applied on a volume-differentiated basis. This means that the PCAF subsidy should be granted based on a cap on the volume of electricity consumed by a beneficiary. The proposal if adopted has the potential to reduce the subsidy budget of the Federal Government so that only a portion of the population (i.e. the underprivileged) benefit from the subsidy with the ripple effect of largely reducing the financial requirement to fund the PCAF. 𝑾𝒂𝒕𝒄𝒉 𝒐𝒖𝒕 𝒇𝒐𝒓 𝑷𝒂𝒓𝒕 2 𝒐𝒏 𝒆𝒍𝒊𝒈𝒊𝒃𝒊𝒍𝒊𝒕𝒚 𝒄𝒓𝒊𝒕𝒆𝒓𝒊𝒂 𝒂𝒏𝒅 𝒐𝒕𝒉𝒆𝒓 𝒇𝒂𝒄𝒕𝒐𝒓𝒔 𝒕𝒐 𝒄𝒐𝒏𝒔𝒊𝒅𝒆𝒓 𝒘𝒉𝒆𝒏 𝒔𝒆𝒕𝒕𝒊𝒏𝒈 𝒖𝒑 𝒕𝒉𝒆 𝑷𝑪𝑨𝑭. On the picture, that stern look 😅 speaks to me wondering why we keep up the vicious cycle of an unstructured subsidy scheme when have a solution right before our faces. #electricitysubsidy #Nigerianpowersector #electricitymarket #PCAF

🚨#FiZ_QuickTake 🚨 Patrick Zimba Mawire, Country Managing Partner of EY Zambia, shares his #QuickTake on leveraging LPG alternatives for affordable energy access and reducing pressure off the ggrid at EY Zambia's 2025 National Budget Breakfast. 🚨Watch the full episode on our YouTube channel or via the link in the COMMENTS. Don't forget to LIKE & SUBSCRIBE. #NationalBudget #EYBudgetBreakfast #FinancialInsight #Get2KnowRaphael

🚨#FiZ_QuickTake 🚨 Martina Phiri, Principal at wCap Limited, shares her #QuickTake on exploring thermal solutions for Zambia's power needs during the EY Zambia's 2025 National Budget Breakfast event. 🚨Watch the full episode on our YouTube channel or via the link in the COMMENTS. Don't forget to LIKE & SUBSCRIBE. #NationalBudget #EYBudgetBreakfast #FinancialInsight #Get2Know

In yet another piece for The Africa Report, I stated that “The Ghanaian government’s plan to restructure its power sector has ignited fierce opposition from various stakeholders, including power sector workers, civil society organisations (CSOs), and energy experts. “The plan aims to merge state-owned electricity firms and establish a new independent authority to streamline operations and enhance efficiency in the power sector.” #Ghana #electricity https://lnkd.in/d8D8aWke

🔊Tune in to TVC for the latest updates on the Presidential Power Initiative (PPI). Stay informed about how the PPI is set to transform Nigeria’s energy landscape and drive economic growth. #NigeriaPPI #EnergyForAll #PoweringNigeria #FGNPC #poweringeconomicgrowth

Kenya Power is set to transfer all its transmission assets to the Kenya Electricity Transmission Company (Ketraco) by December 2024 as part of the measures to return the utility to profitability. The Treasury disclosed to the International Monetary Fund (IMF) that Kenya Power, in which the State has a 50.1 percent stake, will relinquish its transmission assets to the fully State-owned Ketraco to offset its debts to the latter and the government. — Business Daily #kenya #kenyapower #kenyaelectricitytransmissioncompany #tradearlnews

🚨#FiZ_QuickTake 🚨 Energy finance expert Susiku I. Nasinda shared his #QuickTake on the enhanced support for the vulnerable at EY Zambia's 2025 National Budget Breakfast event. 🚨Watch the full episode on our YouTube channel or via the link in the COMMENTS. Don't forget to LIKE & SUBSCRIBE. #NationalBudget #EYBudgetBreakfast #FinancialInsight #Get2Know

⚡ Here's what you need to know about the new law reoganizing Burundi's electricity sector. 👉 The recent promulgation of Law No. 1/05 on March 22, 2024, which amends Law No. 1/13 from April 23, 2015, regarding the reorganization of the electricity sector in Burundi, brings significant changes, including the liberalization of electricity generation, distribution, and sales services to competition, as well as the introduction of a competitive electricity market to encourage greater private sector involvement. ⚖ The law also aims to promote sustainable energy practices. By separating electricity services and encouraging cross-border energy exchanges, this legislation sets the stage for a dynamic and resilient electricity sector in Burundi. ✍ Authors : Willy RUBEYA , Claver NIGARURA , Ange Dorine Irakoze , Melissa Ndayikengurukiye Read more here 👇

Exactly how did the Minister arrive at the over N2 Trillion figure as the electricity subsidy for the year. Given the penchant for how we have abused subsidies (petrol) in the past given the lack of reliable data, how will this new subsidy be managed? Is the subsidy going to be applied to all classes of electricity customers? Would it lead to lower cost of production for the industrial customers? What is the present value of NESI at the moment? Was the revenue being earned by each DISCO taken into consideration, given the fact that a substantial part of these revenues are from unmetered customers who were arbitrarily billed by the DISCOs contrary to NERC's monthly Caps on Estimated Bill? The reality is that things are going to get much worse. The introduction of additional amount for subsidy by government and/or steep increase in tariff will never guarantee any improvement in power supply. The ATC&C losses (especially at the comercial and collection ends) are not being dealt with by most of the DISCOs because these had always been passed on to the consumers and NERC has always put this factor into consideration during past tariff reviews. I do not think it is right for the consumer to pay for the DISCO's inefficiency!