Babatunde Fashola, minister of Power, Works and Housing has charged states and local governments in Nigeria to own and participate in the implementation of the 2005 Electric Power Sector Reform Act and the Power Sector Recovery Programme to deepen their involvement in the sector.
“More importantly the challenges of inadequate power manifest itself in households, businesses, service centers and other points of need that are located in states and local Governments. Therefore, it is only logical and necessary for states and local Governments to own and participate in the implementation of the 2005 Law and the PSRP,” said Fashola at the National Council on Power conference in Jos, Plateau state yesterday.
But Nigeria’s current legislative structure may impede their participation. In May this year, Aminu Tambuwal, governor of Sokoto state, and a lawyer, called for the removal of electricity from the concurrent and exclusive lists to enable state governments generate, transmit and distribute electricity to its people.
The 1999 Constitution places electricity generation, transmission and distribution on the Concurrent Legislative List. While both the Federal and State legislatures share legislative powers in matters contained in the Concurrent Legislative List, state assemblies’ power are severely limited and subordinated to the National Assembly.
With regards to electricity, the National Assembly is empowered make laws for the promotion and establishment of a national grid system and the regulation of the right of any person or authority to use, work or operate any plant, apparatus, equipment or work designed for the supply or use of electrical energy. A state House of Assembly may make laws for the generation, transmission and distribution of electricity to areas not covered by a national grid system within that State.
“The effects of the combined reading of items 13 and 14 of the concurrent legislative lists and Section 4 of the Constitution, are that the states can only legislate upon and take corresponding action in relation to the generation, transmission and distribution of electricity to areas not covered by a national grid system within that State and that no state can make laws on the foregoing issues, to the extent that the federal government has made a comprehensive law(s),” said Ayodele Oni, an energy lawyer in a published opinion.
BusinessDay checks revealed that under the PSRP, states in the country were not assigned any role in the action plan. Similarly, the ESPR 2005 also did not create a suitable framework for participation of state governments. This feeds into calls for a restructuring of Nigeria’s command control, Federal structure.
Fashola further charged state governments of to insist that their buildings are metered so that they can budget and pay for energy they use.
This call draws breath from the audit of debt of Federal Government Ministries and Departments which revealed that while the DisCos claimed they are owed N90billion, the verifiable debt, according to Fashola is only N27billion because there are invoices which show that other parts of the debt are attributable to service points at States and local governments.
“I urge state Governments to set up small teams with audit capacity to verify debts owed by them and their local governments, ascertain the quantum and develop a payment plan which can then be budgeted for. This will help to reduce the liquidity issues and contribute to the reforms.”
Fashola argued that metering their buildings will cut down energy cost as grid electricity is will be cheaper than diesel generated power.
Analysis by BusinessDay indicates that the average residential tariff of N31.50/kWh compares better than self-generated power through diesel estimated at over N80/kWh and embedded generation within N45 – N55/kWh. However, grid connected electricity is still inadequate and subject to frequent interruptions.
Fashola counselled that instead of condemning the DisCos, communities should engage them and make contributions including in the form of lands and urged state governments “to pay more attention to the provision of the Law, the PSRP, and to consult with the ministry and NERC should they need clarification.”
