Dr. Sam Amadi, chief executive officer of the Nigerian Electricity Regulatory Commission (NERC) has called upon the Federal Government to ‘totally remove the System and Market Operators from the [Transmission Company of Nigeria] TCN’.
Amadi stated that there exists a ‘bureaucratic bottleneck’ hampering the transmission sector in the country. He notes that there needs to be clear-cut framework upon which investors can rely, to see a return before committing their resources to transmission projects.
‘They want to see a bankable framework and that simply means that the risks are not there whether you have a management contractor or government employees running the transmission company … They want to see regulatory certainty and what we need to make that work is corporate governance,’ said Amadi
NERC has appealed to government to have TCN run as separate entity void of state involvement. The chief executive has said that government needs a long-term strategy and decide on the structure that it wants with Transmission Company. Amadi suggested that the state either ‘regionalize the transmission system or it concessions it’.
He stressed the importance of regulatory certainty, direction and purpose of all three entities in the immediate future in order to attract the needed investment into the transmission segment.
In a report by the Daily Independent, Amadi explained: ‘One thing is, however, clear from a regulatory angle, from 2015, we are going to totally remove the System and Market Operators from the TCN.
‘We will leave the Transmission Service Provider to operate on its own and if we sanitise its operations very well, government does not need to put in any money there because private people will invest in it if there is regulatory certainty.’