Would you like to receive notifications on latest updates of the following headlines?

Six Companies Acquire Licences To Distribute Power

POSTED ON June 30, 2024 •   Business      BY Benedicta Bassey
Nigerian Electricity Regulatory Commission/ Photo credit: Premiumtimes

The Federal Government has issued six licences to different firms for the independent distribution of electricity in Nigeria, data obtained from the Nigerian Electricity Regulatory Commission revealed.

The commission explained that the networks were designed to be independent of the main transmission system and operate on a smaller scale, providing electricity to specific areas or communities.

It said the development of independent electricity distribution networks is seen as a viable solution for improving electricity access and reliability in Nigeria.

The commission stated that it authorised the issuance of two new Independent Electricity Distribution Network licences and amendment of an existing IEDN licence in the first quarter of last year.

In the second quarter of 2023, the commission did not issue licences for power distribution networks, but stated that it “issued two new trading licences in 2023/Q2.”

The commission also stated that out of the 36 licences, permits and certifications issued in 2023/Q3, one was for the establishment of a new Independent Electricity Distribution Network, while one was a licence renewal for an IEDN.

The other licences, according to NERC, include a trading licence and certifications for Meter Service Providers and Meter Assets Providers.

The commission also issued 36 licences, permits and certifications in 2023/Q4. Three of the licences were for new Independent Electricity Distribution Network, while the others were trading licences, and certifications for Meter Service Providers and Meter Asset Providers.
All together, the commission issued six new Independent licences for the distribution of electricity in Nigeria. 
The, issuance however, is different from the privatised 11 power distribution companies that emerged from the unbundling of the Power Holding Company of Nigeria in November 2013.
Although the issuance of licences and creation of Independent Electricity Distribution Networks by NERC is viewed as a means of improving electricity access and reliability in Nigeria, there have been resentments about the initiative.
State governments have now been empowered under the Electricity Act 2023 to operate and regulate their own electricity markets outside the control of the Nigerian Electricity Regulatory Commission, an agency of the Federal Government.
“The Independent Electricity Distribution Network and Distribution Franchisee models developed by NERC have not been effective, hence the need for SERCs (State Electricity Regulatory Commissions) to evolve new retail and supply licenses, and business and commercial models which would open the retail electricity space to new companies that would compete to address the poor power situation within their states."

READ ALSO
South Africa Surpasses Nigeria in Fuel Imports Amid Dangote Refinery Operations
BY Abiodun Saheed Omodara May 29, 2025 0

Nigeria has lost its long-standing title as Africa’s largest importer of refined petroleum pro...

READ ALSO
Economists Warn of Debt Sustainability Risks as Nigeria Eyes $24.14 Billion in Foreign Loans
BY Abiodun Saheed Omodara May 28, 2025 0

Nigeria's public debt is poised for another substantial increase as President Bola Tinubu has sought...

READ ALSO
Nigeria's Solid Minerals Sector Attracts Over $800 Million in Investments Amid Policy Shift
BY Abiodun Saheed Omodara May 25, 2025 0

The Minister of Solid Minerals Development,Dr Dele Alake announced that Nigeria attracted over $800...

READ ALSO
SNEPCo Urges Indigenous Firms to Enhance Skills for Future Opportunities
BY Abiodun Saheed Omodara May 23, 2025 0

The Shell Nigeria Exploration and Production Company Limited (SNEPCo) has urged Nigerian firms to st...

READ ALSO
JUST IN: Dangote refinery slashes petrol prices by N15 nationwide
BY Abiodun Saheed Omodara May 22, 2025 0

LAGOS, Nigeria — The Dangote Petroleum Refinery recently announced a reduction in the pump pri...

READ ALSO
Sanwo-Olu Advocates for Innovation, Accountability in Economic Policies
BY Abiodun Saheed Omodara May 22, 2025 0

LAGOS, Nigeria - Lagos State Governor Babajide Sanwo-Olu has stated that Nigeria must hasten its pro...

READ ALSO
CBN's Rigid Monetary Policies Threaten Nigeria's Industrialization Efforts
BY Abiodun Saheed Omodara May 22, 2025 0

With the Central Bank of Nigeria (CBN) keeping the benchmark interest rate at 27.5 percent, local ma...

READ ALSO
FG to Auction 753 Housing Units Recovered from Ex-CBN Governor Emefiele
BY Abiodun Saheed Omodara May 20, 2025 0

ABUJA, Nigeria - The Federal Government has declared its intention to sell 753 housing units that we...

OUR CHANNELS:

EFCC Charges Two Men for Posing as Fake Sureties in Illegal Mining Case
BY Abiodun Saheed Omodara June 4, 2025 0

The Economic and Financial Crimes Commission (EFCC) has charged two individuals, Shehu Abdu and Isah...


Court Sentence Scrap Seller to 12 Years for Sexual Assault of Four-Year-Old Girl
BY Abiodun Saheed Omodara June 4, 2025 0

A scrap seller, Nasiru Usman, was sentenced to 12 years in prison by an Ikeja Sexual Offences and Do...


70-Year-Old Faces Manslaughter Charges After Fatal Accident
BY Abiodun Saheed Omodara June 5, 2025 0

LAGOS, Nigeria - A 70-year-old man, Isiaka Afolayan, has been detained for careless driving and the...


Police Arrest 49 years old Suspect for Abduction of Two-Month-Old Baby
BY Abiodun Saheed Omodara June 5, 2025 0

DELTA, Nigeria - The police in Delta reported the arrest of a suspect named Joy Temitope for the abd...


43 Lives Lost in Benue Armed Attacks
BY Abiodun Saheed Omodara June 4, 2025 0

BENUE, Nigeria - At least 43 individuals lost their lives when armed assailants targeted communities...


Health Equity: Nigeria's Push for Universal Health Coverage
BY Abiodun Saheed Omodara June 4, 2025 0

In alignment with the global effort towards Universal Health Coverage (UHC), Nigeria is striving to...


Road Maintenance Crisis: FERMA Requires N880 Billion Yearly Amid Budget Shortfalls
BY Abiodun Saheed Omodara June 4, 2025 0

ABUJA, Nigeria - The Federal Government needs approximately N880 billion each year for the upkeep of...


Okocha Urges Victor Osimhen to Consider Staying at Galatasaray
BY Abiodun Saheed Omodara June 4, 2025 0

Nigerian football icon Jay-Jay Okocha has shared advice with Victor Osimhen amid growing speculation...


60,000 Nigerians Abroad Register on Diaspora Data Mapping Portal
BY Abiodun Saheed Omodara June 5, 2025 0

Approximately 60,000 Nigerians residing overseas have registered on the Diaspora Data Mapping Portal...


PDP Leaders Slam Minister for Backing Tinubu's 2027 Campaign
BY Abiodun Saheed Omodara June 5, 2025 0

The People’s Democratic Party (PDP), New Nigeria Peoples Party (NNPP), Coalition of United Pol...


More Articles

Load more...

Menu