Covid-19: Nigeria Closer to an Agreement on Free Electricity Supply

• The Federal House of Representatives of Nigeria has agreed to set up a joint action committee on the planned two-month free supply of electricity to the poor and vulnerable, as part of the Covid-19 pandemic stimulus package.
• The Minister for Power said the newly formed committee would provide support and technical advice to achieve this aim.
• The Nigerian Electricity Distributors Association (ANED) recently expressed its willingness to comply with the National Assembly’s proposal to provide Nigerians with free electricity in this time of covid-19

The Federal House of Representatives of Nigeria, headed by Speaker Femi Gbajabiamila, has agreed to set up a joint action committee on the planned two-month free supply of electricity to the poor and vulnerable, as part of the Covid-19 pandemic stimulus package.

This was the result of the meeting that took place at the National Assembly on Thursday 16 April 2020 between the federal lawmakers and the stakeholders. In his creation speech the Speaker said:

“The objective is very simple, we are asking people to stay at home for several days or weeks, so we need to make their stay at home comfortable. We need to help the poorest of the poorest at this time in Nigeria.

Whatever the issues are within the power supply chain, they have to be dealt with and set aside, but how we deal with the issue at stake is why we are here today.”

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The Speaker made it clear during the meeting attended by the Minister of Power, Mamman Sale, Executive Chairman of the Nigerian Electricity Regulatory Commission (NERC), James Momoh, Group Managing Director NNPC, Mele Kyari, MD / CEO Nigeria Bulk Electricity Trading Plc, Marilyn Amobi, and members of the distribution companies that the Nigerians would be the ultimate beneficiary.

In his remark, the Minister for Power said the newly formed committee would provide support and technical advice to achieve this aim. For his part, NNPC’s Group MD noted that the gas supply problem to the Generating Companies (GenCos) is crucial to the country’s power supply.

He also claimed that addressing the issue of who bears the cost and profit burden in the value supply chain would make this proposal workable.

It should be noted that the Nigerian Electricity Distributors Association (ANED) recently expressed its willingness to comply with the National Assembly’s proposal to provide Nigerians with free electricity supply as part of the palliative to reduce the impact of the coronavirus pandemic for two months.