The House of Representatives Ad-hoc Committee investigating expenditures in Nigeria’s power sector has mandated the Bureau of Public Enterprises (BPE) to reappear before it, this time in company of the core investors in the nation’s power assets, over the persistent challenges confronting Generation and Distribution Companies (GENCOs and DisCos).

The directive followed the presentation made on Friday, by the Director General of BPE, Mr. Ayodeji Gbeleyi, during the committee’s ongoing investigative hearing. Committee Chairman, Hon. Ibrahim Al-Mustapha Aliyu, said it was imperative for the investors to face Nigerians and offer clarity on the issues affecting the sector.

According to him, “DG, you have demonstrated competence by owning up to the responsibilities of your office. Some would hide behind the excuse of not being in office at the time, but government remains a continuous institution. However, we need to hear directly from the core investors. They were given these assets based on the strength of their capacity and financial muscle, and they must explain themselves.

“Please take note: before the 15th of December, they must appear. Today is the 4th, the holidays are approaching, some may have travelled, but once they receive our letters, they must make arrangements to be here.”

Hon. Aliyu also commended the federal government for recent interventions aimed at stabilising the sector, stressing that the committee was determined to identify root causes of the problems and propose actionable solutions.

He noted the contrast between past and present generation capacity, saying: “Back in 1999 or 2000, the country had barely 1,500MW. Today we have an installed capacity of about 10,600MW, with actual generation around 8,000MW, though only 4,000MW is distributed. That gap is the real problem.”

The lawmaker further queried BPE on arrangements regarding transmission infrastructure, especially after the exit of the Canadian management firm previously engaged to run the Transmission Company of Nigeria (TCN). He said the outdated equipment and fragile infrastructure could be responsible for repeated grid collapses.

In his briefing, BPE DG Ayodeji Gbeleyi highlighted improvements recorded since privatisation. He revealed that Kainji and Jebba hydro plants, which together produced about 600MW at the time of handover, now supply around 1,100MW to the national grid, representing nearly 20% of daily generation.

He added that the Egbin power plant has moved from operating only two out of its six 220MW turbines to having all units functional, capable of dispatching between 680MW and 900MW depending on grid capacity.

“The DisCos and GENCOs today are not the same entities we had under PHCN,” he said. “We may not be at the ideal level yet, but the sector is gradually turning around. After the cost-reflective tariff adjustment for Band A in April 2023, some previously loss-making DisCos have begun to return to profitability.

“Our work now is focused on tightening governance at the DisCos, reducing leakages, and ensuring that revenue generated is reinvested into strengthening the network so Nigerians can enjoy safer, more reliable, and more affordable power.”

Gbeleyi also disclosed that the government bears a significant financial burden in the sector. He revealed that as of December, NBET owed the electricity market about N4 trillion, despite the industry generating N1.7 trillion in 2024 and expecting to close the year at N2.3 trillion.

According to him, restructuring at the Transmission Company of Nigeria, which split system operations and market functions from engineering duties, has helped stabilise grid performance. He noted that while the grid suffered nearly 20 disturbances last year, fewer than three incidents have been recorded this year.

The DG also announced a major milestone: the successful synchronisation of Nigeria’s power network with the West African Power Pool after 13 years of attempts, allowing Nigeria to operate in a unified electricity market with 14 ECOWAS countries. (Daily Independent)