The Nigerian Bulk Electricity Trading (NBET) is in the process of seeking a licence renewal from the Nigerian Electricity Regulatory Commission (NERC) to enhance its efficiency and operational capacity within the electricity sector. This move comes as NBET’s trading volume has reached an impressive $2 billion annually.
Key Developments:
- Licence Renewal: NBET’s current licence is set to expire on November 21st. The acting Managing Director, John Akinnawo, emphasized the importance of the renewal to continue the company’s operational drive and maintain its role as a key player in the sector.
- Operational Achievements:
- Trading Volume: NBET has achieved $2 billion in annual trading.
- Private Sector Investment: The company has facilitated and executed numerous power purchase agreements, incentivized greenfield power projects worth $1 billion, and managed the privatization of PHCN and AFAM power assets.
- Financial Contributions: NBET’s efforts have generated about N105 billion for the federal government and attracted an additional $350 million in investments.
- Public Hearing: The licence renewal process involves a public hearing organized by NERC to gather input from stakeholders. This hearing is essential to determine if NBET’s role remains relevant and effective in the electricity sector.
- Stakeholder Input:
- Dafe Akpeneye, Commissioner at NERC: Highlighted that public input is crucial for decision-making regarding NBET’s licence renewal.
- Edu Okeke, MD of Azura Energy: Advocated for an indefinite licence renewal, suggesting that a long-term renewal would enhance investor confidence and stability in the sector.
This process underscores NBET’s critical role in the Nigerian electricity market and its contributions to facilitating investment and managing key power assets. The outcome of the licence renewal will be pivotal in shaping the future landscape of Nigeria’s energy sector.
