The World bank group has called for stronger regulations and proper sector governance as a tool necessary for achieving an expanded and diversified power generation mix and investment in the Nigerian power sector.
Mathew Verghis, the World Bank Country Director for Nigeria stated this in Abuja on Thursday, at the 20th anniversary of the Nigerian Electricity Regulatory Commission.
Verghis noted that Nigeria is the country with the most significant electricity access deficit in absolute terms in the world, adding that the role of the regulator in providing a transparent and balanced service to both consumers and utilities alike is central to any power sector reform.
He noted that in the off-grid space, NERC’s forward-looking regulations have helped catalyze private sector investments into distributed renewable energy solutions, resulting in over 7.8 million Nigerians gaining access to electricity in the past five years.
“Stronger regulations and proper sector governance is central to achieving an expanded and diversified power generation mix and investment in transmission and distribution structure at competitive costs,” he said.
” While reform efforts are shaped by the political and economic context of a country, NERC has been central to the implementation of key reforms in the power sector.
“NERC continues to play a role in facilitating the decentralization of electricity markets to states and building institutional capacity at the subnational level via its advisory groups. We also know that there is much to be done to bring the sector to a higher level of operational efficiency and financial sustainability.
“Stronger regulations and proper sector governance is central to achieving an expanded and diversified power generation mix and investment in transmission and distribution structure at competitive costs,” he said.
Verghis speaking further said that despite having significant energy resource, huge growth potential, and an untapped demographic dividend, thr largely privatized private sector has struggled with inefficiencies, high losses, and limited investments since its privatization in 2013.
Also speaking at the event, Chinua Azubuike, managing director, Infracredit commended the NERC for being a critical partner in enabling an investable electricity market.
According to him, the importance of a strong regulatory body cannot be ignored, stressing capital follows governance. For him, when contracts are enforceable, when tariffs are predictable, and when rules remain consistent, the cost of capital falls, confidence rises, and projects become bankable.
He said, “For financiers, governance is more than just compliance. It is invisible currency of trust. The Electricity Act 2023 has opened new possibilities, but these must be anchored on harmonized governance to avoid fragmented investor confidence.
“Our mission is inextricably linked to NERC’s work because strong regulation is the first guarantee every investor looks for long before any financial guarantee takes effect. We therefore celebrate NERC not just as a regulator but as a critical partner in enabling an investable power market, one that gives financiers the confidence to deploy long-term domestic capital.”
Speaking further, Azubuike stressed the need for Nigerians to protect domestic investors as well as mobilize domestic capital at scale to solve development challenges in the country
Source: Business Day
