He noted that despite generating a record 5155 megawatts, it was not being taken up.

The minister spoke on Thursday at the board retreat of the Nigeria Electricity Liability Management Company, NELMCO, in Lagos.

“Majority of bulk electricity users, such as industries, are off the grid due to lack of trust and confidence in the past. They now have their own captive power plants in their industries which is more expensive,” he lamented.

According to Adelabu, continued use of captive power rather than grid connection was more expensive.

“The average cost of producing captive power is about N350 to N400 for those connected to gas lines. For diesel, it’s about N950 while petrol is about N550,” he said.

He said efforts would be made to encourage such bulk users to return to the grid.

“Once consumers and industries see the trust, the confidence and the stability we are giving, they would be encouraged and reconnect to the grid for cheaper source of power.

“We aim to attain the threshold of a new era in power delivery with a target of 6GW by end of December 2024 in the short term and the Federal Government is still focused on the vision 30-30-30. By 2030, we aim to achieve 30 gigawatts in the medium term, with renewable energy constituting 30 per cent and universal access in the long term, it is imperative that we align on the principles guiding our activities and the strategies driving our progress.”

He added that government was currently using a multi-pronged approach to attain these targets for the Nigeria Electricity Supply Industry.

The minister also mulled the idea of differential tariff for off peak period in order to stimulate demands.

“Having noticed a drop in demand during the off peak period, we plan to stimulate demands by having a different tariff during the off-peak period. These are some of the efforts we are looking at especially with our smart meters.”

He urged the board members to reflect on how to embed corporate governance in driving sustainable growth in the sector.

“As we manage the liabilities of the Nigeria Electricity Supply Industry, NESI, it is imperative that we uphold the highest standards of transparency, accountability, and integrity. Our actions and decisions must always align with the principles that safeguard public interests, ensuring that trust is maintained and strengthened across the board,” he said.

He also enjoined the power sector to embrace environmental, social, and governance (ESG) standards in their actions.

“In today’s world, ESG considerations are no longer optional; they are integral to every corporate operation. NELMCO’s role goes beyond managing financial liabilities – we are also stewards of social and environmental responsibilities. We must incorporate sustainable practices into our strategies, ensuring that our actions contribute to Nigeria’s broader goals of achieving the nation’s climate ambition and fostering social equity. This commitment to ESG will not only enhance our reputation but also ensure long-term value creation for all Nigerian.”

He implored the board to reflect on sustainable ways to address the tariff shortfalls in the Nigeria Electricity Supply Industry while boosting the Financing Power of the sector.

“I believe tackling the tariff shortfall in the Nigeria Electricity Supply Industry requires innovative and sustainable financing solutions. We must balance efforts at addressing the existing obligations while delivering long-term strategies that pave the way for financially solvency sector through cost-reflective tariffs. We need to focus on ways to help the electricity market stabilize, attract investment, and ensure that every Nigerian has access to reliable and affordable power which will drive the nation’s economic development”.

He also emphasized the need for effective leadership and board agility especially in the electricity industry.

He said, “As leaders, our primary role is to set a strategic course, inspire our teams, and navigate challenges with foresight. We must be proactive and adaptable, ready to pivot in response to disruptions, whether technological, regulatory, or economic. A culture of continuous learning, open communication, and innovation will ensure we remain resilient and not just to survive but to thrive in an ever-changing environment.”

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The Special Adviser to the President on Media and Publicity, Mr. Ajuri Ngelale, made this known on Thursday in a statement.

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The chairman and members are:

Minister of Power — NELMCO Board Chairman

Minister of Finance — NELMCO Board Vice-Chairman

Director-General, Debt Management Office — Member

Director-General, Bureau of Public Enterprises — Member

Mrs. Mojoyinoluwa Dekalu-Thomas — NELMCO Managing Director/CEO (five-year term)

Mr. Joseph Asuku Bello — NELMCO Executive Director, Asset Management (five-year term)

Mr. Hassan Yahya — NELMCO Executive Director, Corporate Services (five-year term)

Mr. Abdullahi Mahmud Gaya — Non-Executive Director (three-year term)

Prof. (Mrs) Ayanfemi Ayandele — Non-Executive Director (three-year term)

Ngelale said in consonance with his Renewed Hope Agenda, President Tinubu anticipated that NELMCO Board’s new structure and composition would yield expeditious and measurable progress in the management of the power sector’s post-privatization liabilities to create conditions for the sustainable attainment of world-class standards of operational efficiency across all sub-components of the Nigeria Electricity Supply Industry, NESI.

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This was made known in a statement issued on Friday by the Special Adviser to the President on Media and Publicity, Mr. Ajuri Ngelale.

Dekalu-Thomas has served as the Acting MD/CEO of NELMCO since the tenure of pioneer NELMCO MD/CEO, Mr. Adebayo Fagbemi, ended on May 8, 2023.

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Furthermore, her previous interim role and new substantive appointment has created a vacancy at her previous position: Executive Director, Liability Management.

Accordingly, President Tinubu has approved the appointment of Mr. Dimla Joel Nchinney to serve in NELMCO as the substantive Executive Director, Liability Management.

The appointments were said to take immediate effect.

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