The Chief Executive Officer of Century Power Generation Limited, Dr Chukwueloka Umeh, says that Nigerian Electricity Regulatory Commission’s (NERC’s)failure to increase electricity tariff in smaller steady steps from 2015 as stipulated in the Multi-Year Tariff Order (MYTO) has made the almost 100% increase for some consumers in September 2020 very discomforting, especially at this time of unprecedented economic hardship.

Dr Umeh said that for there to be electricity available to every Nigerian, a tariff increment is necessary for the power value chain to work effectively. He, however, admits that timing for this increase is could be better considering the economic situation in the country.

Speaking as a guest on a television program in Lagos on Wednesday, January 6, 2021, he reasserted that the government’s role in the power sector needs to be solely that of an enabler that provides a conducive investment climate for investors, as well as a regulator that oversees the operation of the industry.

Dr Umeh, also the Chief Operating Officer (COO) of the Nestoil Group, held that an increase in the tariff to a cost-reflective level is necessitated by the need for the DisCos to upgrade and maintain their infrastructure, provide the service that people expect, and also make a profit from the power they sell. They also need to generate enough revenue for the other companies in the value chain, including TCN, the GenCos, and the gas suppliers and transporters to get paid. If these investments and payments are not made, people won’t get the power they’re required to pay for. 

For electricity to be available, he said, the government needs to create policies that encourage investment, ensure that contracts are respected and are backed by the rule of law. He emphasizes the private sector should be allowed to drive the entire power value chain, competition should be encouraged to grow and drive the right tariff pricing. Finally, the government should desist from trying to regulate a market into existence, but rather, relax regulations enough to allow the sector to grow organically.

According to him, most of the public and even some pertinent persons in government are not sufficiently informed about the power sector, hence the lack of understanding that without a functioning value chain involving gas producers and transporters, GenCos, TCN, and DisCos, most Nigerians will regrettably continue to pay for darkness.

Century Power Generation (CPG) is an indigenous company involved in developing and implementing solutions to Nigeria’s local power problems. Dr Umeh continues to lead advocacy for a robust, stable and reliable power sector as the most reliable pathway to catalyzing Nigeria’s economic growth.

The Chief Executive Officer of Century Power Generation Limited, Dr Chukwueloka Umeh, says that for Nigeria to meet its National Mass Metering Programme (NMMP) target to meter 30 million consumers over two years, local manufacturers must be empowered to enable them ramp up production in order to meet the demands. 

Umeh said that instead of the government procuring the meters, they should let private companies drive the process for efficiency and retain capital in the country. He calls for the creation of an enabling environment where Nigerian manufacturers can grow, and if people want to import meters, the market is big enough. 

He spoke as a guest on a television programme where he proffered ways on how the country can meter the citizenry and solve all its power challenges 

Umeh, who is also the Chief Operating Officer of the Nestoil Group, on the tariff increment said although power consumers complained about paying more for darkness, they have to be patient as it will, unfortunately, take time for them to see the value of the tariff increment.

He said all issues across the whole value chain of the power sector must be resolved simultaneously and on a large scale, not one after the other if Nigerians are to get regular electricity supply in the foreseeable future.

He urged the government to find a way to grow the income of the populace by creating a conducive investment climate so that small, medium and large businesses can grow, thereby putting more money in Nigerians’ pockets.

President Muhammadu Buhari had committed that Nigerians would be metered before the end of his administration and that estimated billing would be ended. The free distribution of meters was part of the agreement reached between the Federal government and the organized labour after the government increased the electricity tariff in 2020. Nigerians need to see these promises fulfilled.

Century Power Generation (CPG) is an indigenous company involved in developing and implementing solutions to Nigeria’s local power problems. Dr Umeh continues to lead advocacy for a robust, stable, and reliable power sector as the most reliable pathway to catalyzing Nigeria’s economic growth.