BY GODFREY UBAKA
SHORTFALL in energy supply has remained one of the banes of Nigeria’s economy. It has increased the cost of production thereby making locally manufactured goods not to be competitive with imported products in terms of market pricing. Because of the failed state of Nigeria’s epileptic power supply, what remains of the nation’s economy is being driven by generators. This, alongside other factors have led to the relocation of many manufacturers and other categories of investors. The result as in the growing army of unemployed youth, worsening state of poverty and social restiveness are there for all to see.
It is with that in mind that one considers that one of the heartwarming developments in the past one week has to do with Delta State government’s efforts at putting the system and structures in place to effect reforms in the Energy Supply Sector within the State. This followed the domestication of the Nigeria Electricity Act of 2023, which supports the adoption of renewable energy at the state level.
Delta State is now poised to address the energy supply deficit ,which has constituted a drawback to the growth of the state’s economy, especially the manufacturing sector. Before now, states were legally encumbered in addressing their energy needs as energy generation and distribution fell within the exclusive list of the Federal Government and its agencies. It therefore follows that whenever there’s a collapse of the national grid, and this has become a regular occurrence, the national economy is negatively affected. The Government of Delta State has always looked forward to weaning the operational dynamics of the state’s economy from this major institutionalized energy challenge.
This determination to better serve citizens in the state through the provision of regular electricity power supply is now beginning to have institutional expression through legislation and creation of implementation agencies to address the hiccups from epileptic power supply arising from the unabating inefficiency in the centralised National Grid system. The Delta State Government has therefore taken a bold step to tackle the huge energy challenge with approval of the Delta State Electricity Commission (DSEC).
Following this initiative, the state government has now adopted the mini-grid power generation and supply model, which promises to revolutionize the sector with focus on turning around the socio-economic life of the people in the state.
Briefing newsmen on the bold and timely initiative at the end of the State Executive Council (EXCO) meeting in Asaba last week, the state Commissioner for Economic Planning, Mr. Sonny Ekedayen, said that the power programme is in line with Governor Oborevwori’s M.O.R.E Agenda, which prioritizes infrastructure as well as improved service delivery in critical sectors across the state.
The state electricity agency is a byproduct of the Delta State House of Assembly’s recent domestication of the Federal Government’s 2023 Electricity Act, through approval of the Bill, which thus provides the legislative muscle for the state to chart an independent and more reliable course in electricity generation, distribution and regulation. The commissioner emphasized that the entire electricity reform would be private sector funded and driven with the state government providing the regulatory framework and the enabling environment.
His words, “This is a private sector-driven initiative. Our role is to set the rules, ensure fairness, and create the atmosphere for investment and innovation to thrive,”
It is indeed remarkable that only a few states in Nigeria have dared to venture this far in the target of meeting the energy needs across the State.
Delta is therefore determined through the emerging institutional framework to deliver not just electricity, but a system that works, creates jobs, supports industry, and improves the quality of life for people across the state.
It is equally significant that the state government has adopted a mini-grid model that can allow multiple independent operators to provide end-to-end electricity services in various locations across the state.
It is hoped that with the mini-grid approach, if an outage occurs in one part of the state, it will not affect other areas, as each operator is being responsible for generation, distribution, and supply within their designated zones. This on its own promises to enhance resilience and reliability.
The approach being adopted by Delta differs significantly from the conventional centralized grid, which often leaves entire regions in darkness when there is a failure at a single point in the system.
While conventional gas-powered sources remain an option, operators in the Delta module are expected to explore renewable energy alternatives such as solar and hydro power.
The state Electricity commission when fully on stream will be responsible for issuing licences, monitoring compliance, and mediating between operators and consumers. It is equally of significance that the state EXCO approved alongside the establishment of a Rural Electricity Agency, which will focus on delivering electricity to under-served rural communities across the state to ensure inclusivity and equity in power distribution.
It should be acknowledged at this point that although the electricity market reform was still an unfamiliar territory for many sub-national governments in Nigeria, Delta State has demonstrated committed to getting it right.
Delta’s journey to energy supply sufficiency promises to be deliberate and methodical to avoid costly mistakes, but always putting the people’s best interests at the core of every decision.
With a fast growing population, Nigeria’s energy shortfall can be better addressed by diversifying energy sources, particularly through increased investment in renewable energy like solar and wind, and by improving energy infrastructure and distribution. The principle of energy decentralization such as off-grid and mini-grids have become crucial solution strategies for reaching remote areas. Public-private partnerships and a supportive regulatory environment such as the market scenario Delta State is currently presenting are needed to attract investment in the critical energy sector.
Nigeria has abundant sunlight, making solar power a viable option for both on-grid and off-grid solutions. Wind energy, though less prevalent, can also contribute. The Nigeria Electricity Act of 2023, now domesticated in the state, supports the adoption of renewable energy at the state level.
Incentivizing independent power producers through clear regulations, tax breaks, and risk guarantees can attract sustainable private investments that will bring about the desired change in the sector.
Investments in energy storage solutions, like batteries, can help manage the intermittent nature of renewable energy sources and improve grid stability.
It is also hoped that Implementing universal metering, including prepaid meters, can improve transparency and revenue collection for electricity distribution companies.
POSTSCRIPT: REJIGGING CONTRIBUTORY HEALTH INSURANCE SCHEME
Health Insurance schemes across the world are primarily designed to help contributors pull through when health issues emerge. No contributor wakes up in a state of sound health both for himself and members of his household and is preoccupied with how to access contributions made to a health insurance scheme.
The contributions are designed for a purpose and in a circumstance. What then happens when the need for which it was designed arises and the contributor, now a patient wants to access healthcare on the strength of contributions made over the years only for the representatives of the health institutions to tell him in his ailing state that the appropriate drugs needed or treatment prescribed is not covered in the scheme?
Hope betrayed, expectations dashed. Between the contributory health commission and the hospitals there are existing gaps and uncovered areas of healthcare needs that are incidentally not made known to the contributor until in most cases there are emergencies. In a seminar held at the Asaba Specialist Hospital last Friday, some doctors expressed high-level frustration over the impact of the ‘not covered ‘ syndrome on their commitment to quality healthcare delivery.
To them, there’s the tendency for professional compromise when you know the appropriate drugs in a given circumstance but you’re constrained by the fact that such drugs are not covered within the cap window provided in the scheme. Something is queer about a system that encourages contributions, sometimes as compulsory deductions from salary source but denies due access at critical moments when such individuals are on the borderline between life and death. Healthcare needs for the contributor ought to be prioritized at all times over the rigidity of commercialized covered and uncovered services.
