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Nigeria: Willing buyer, willing seller arrangement to solve power challenges

According to the country’s Vice-President, Prof. Yemi Osinbajo, the federal government is looking into the ‘willing buyer, willing seller policy’ as one of the solutions to addressing Nigeria’s power challenges.

Vice-President, Prof. Yemi Osinbajo

Osinbajo noted that if the generation companies do not have the resources to produce electricity, that presents an opportunity for companies, can take up the responsibility to make power available when needed, report The Guardian.

“We have what we call the eligible customer declaration, which is, if you are able to generate power, you can sell your power on a willing buyer or willing seller basis,” he said.

Osinbajo continued: “We think that to solve Nigeria’s problem is not to rely on the grid, but to decentralise so that more power companies can produce power where they would sell at a tariff that will not be regulated.”

He further highlighted that at the moment, one of the problems that Discos have is that tariffs are regulated, as a result they are not cost reflective. Read more: TCN to evacuate power from Mambila hydropower plant

“In other words, it is not enough to cover the cost of distributing the power,” the Vice-President pointed out.

Solving power challenges

Osinbajo continued: “So this willing buyer, willing seller is one that we think will solve the problems. We also intend to focus on renewable energy. We believe that the way to go is this willing-buyer, willing-seller for industries, homes etc.

“People are fed up with estimated billings, and that has created a problem everywhere, but we believe we will be able to make significant progress using alternative sources of power which is the willing buyer willing seller arrangement.”

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.