Importance of The Imo Assembly Bill on Improved Electricity Generation, Transmission & Distribution Within The State

..Why It Should Be Accelerated 

For years, Imo citizens (and indeed,  Nigerians)  have  languished  under a poor deteriorating power sector. This challenge of inadequate Power Supply has hindered economic growth, which is part of the reasons for youth unemployment and under development.  On different occasions, the National Power Grids kept collapsing, plunging the people into blackouts and affecting businesses and social activities. The Power Grid collapsed, reportedly, 46 times in six years.

According to International Energy Agency, IEA,  "Nigeria had grappled with recurrent power failures, totalling 46  Grid collapses between 2017 and 2023. It was disclosed that  the Nation's Grid continued to face issues due to aged infrastructure and vandalism. The deterioration of power infrastructure, it was learnt, increased dependency on backup Generators for  over 45%  of electricity consumption in Nigeria.

“Although the country has a total installed capacity of about 13 GW, average available capacity remained around 4.5 GW in 2023 due to a combination of factors such as deteriorating units, poor maintenance and liquidity constraints. Unreliable power supply due to limited grid infrastructure, under-investment and ineffective regulatory frameworks have resulted in an estimated 40 per cent of all the electricity consumed in the country being produced from backup generators,” the IEA declared.

The National Electricity Regulation Commission, NERC,  said the country was able to generate only 3.5 GWh, blaming the low power generation on low gas supply as the majority of the power plants are gas-fired.

The repeated collapse of the National Electricity Grid in Nigeria is an indication that there is a need for many mini-grids in each state and the Federal Capital Territory. This can only be made possible when there are sub-national electricity markets across the federation. 

Therefore, to solve this perennial power failure challenge,  on  the 9th of June  2023, President Bola Ahmed Tinubu assented to the Electricity Bill, thereby making it an Act, empowering States, Companies, and Individuals to generate, transmit  and distribute electricity. The new law replaced  the 2005 Electricity and Power Sector Reform Act,  as it seeks to promote private sector investments in the power sector. It provides for a holistic, integrated resource plan and policy that recognises all sources for the generation, transmission and distribution of electricity, including the integration of renewable energy into Nigeria’s energy mix.

Also, the  new act permits the State Electricity Board or , indeed, any State Authority by whatever appellation, to grant licence for mini-grids and provide the framework for the operation of such licenses. 

With this, the Federal Government has succeeded in removing Electricity from the Exclusive list and moving it to the Concurrent list. That is,  allowing States and Private individuals to invest in the sector.

The 2023 Electricity Act therefore,  allows constructing, owning, or operating an undertaking for Generating Electricity not exceeding one megawatt in aggregate at a site, or an undertaking for distribution of electricity with a capacity not exceeding 100 kilowatts in aggregate at a site, or such other capacity as the commission may determine from time to time, without a licence.

The Act mandates Electricity-Generating companies to generate power from renewable energy sources, purchase power generated from renewable energy or procure any instrument representing renewable energy generation. Though a State can regulate its electricity market by issuing licences to private investors who can operate mini-grids and power plants within the state, The Act, however, says that until a State has Passed its Electricity Market Laws, the Nigerian Electricity Regulatory Commission, NERC,  will continue to regulate electricity businesses in such States. That is, such business or businesses  cannot materialise unless the States have their own Independent Electricity Market Laws and State Electricity Authorities.

Therefore, leveraging  on this  Decentralization of Power Generation  And Distribution Under The Electricity Act 2023, signed by Mr President,  which gives States the power to Develop Legislations To Create Local Markets For Generation And Transmission Of Power To All Areas Within Their Boundaries, Which Is Anticipated To Enhance Affordable, Reliable, Sustainable And Efficient Electricity, the Member Representing Ngor/Okpala State Constituency In the Imo State House Of Assembly, Rt Hon Prince Obinna Egu, PhD, has on Thursday,  25/04/2024,  presented the Second Reading of the Imo State Electricity Bill 2024 (Otherwise Known As   *"A BILL FOR A LAW TO MAKE PROVISION  FOR AND IMPROVE ELECTRICITY AND ITS GENERATION, TRANSMISSION AND DISTRIBUTION WITHIN AND FOR THE RESIDENTS OF IMO STATE ;   TO ESTABLISH AN ELECTRICITY MARKET FOR IMO STATE;  TO ESTABLISH A REGULATORY FRAMEWORK FOR IMO STATE ELECTRICITY MARKET;  FOR  RELIABLE AND SUSTAINABLE ELECTRICITY SUPPLY WITHIN IMO STATE,  FOR ENFORCEMENT OF CONSUMER RIGHTS AND OBLIGATIONS AND FOR CONNECTED PURPOSES"*)  on the floor of the Assembly.

Rt Hon Obinna Egu, who is also the Vice Chairman Of House Committee On Power And Water Resources dealt extensively on the General Principles of the Bill, emphasizing how it will help to enhance  Skills, Artisans and Trade, Industrial activities and business growth, thereby unlocking the full economic potentials of the state.

The Ranking lawmaker also said that the Bill seeks to provide a framework for the improvement of assess to electricity in rural and urban areas, through the use of conventional sources and renewable energy, thereby  empowering the State to generate and distribute its own  electricity. He further explained that the all important Bill shall make provision for the IMO STATE ELECTRICITY MARKET that will be opened for Imo residents and  have people who are experienced in the issue of electricity generation and distribution and other related matters.  

The Humble Prince from Ngor/Okpala,  who is the House Committee Chairman On Science and Technology, further explained that the Bill will pave way for the establishment of THE IMO STATE ELECTRICITY REGULATORY COMMISSION, IMSERC, with  7 Commissioners;  pointing out that 4 out of the 7 shall be  Executive Commissioners, which must be selected from the  Public and Private sectors, while the remaining 3  shall be Non-Executive Commissioners,  and shall be appointed by the Governor and Confirmed by the Imo State House Of Assembly.  Explaining further, Rt Hon Obinna Egu emphasized that one of the Executive Commissioners shall be the Chief Executive Officer, while one of the Non-Executive Commissioners shall be the Chairperson, appointed by the Governor and ratified by the Assembly. He  assured that once there is 24 hours Power Supply in the state, every other thing would fall into place.

Speaking finally, the very vibrant lawmaker assured  that the Bill will serve as a legislative backing that will be complimenting the sincere and commendable  efforts already being made by His Excellency Distinguished Senator Hope Uzodimma, the Executive Governor Of Imo State, in seeing that 24 Hour uninterrupted Power Supply is actualized through the Natural Gas, as Statistics has shown that Imo State, the Land of Hope, has the Highest Natural Gas Reserve in Nigeria and across the Sub-Saharan Africa.

The only voice from Ngor/Okpala State Constituency  thereafter  called on his Honourable Colleagues to file behind him, to give the Bill Proposal an Expedited  action for it to be passed into Law without further delay,  which will finally signal the actualization of the great vision of His Excellency  Governor Hope Uzodimma for Imo State.

 In appreciating Rt Hon Obinna Egu for  coming up with a well structured, sound  and  patriotic Bill  at this point in time, the  following lawmakers, in their separate submissions commended their Ngor/Okpala Ebullient Colleague, expressing confidence that unemployment for majority of Imo youths would be a thing of past as soon as the Bill is Passed, Signed into Law and its Derivatives comes into play. They also agreed that it would raise, geometrically, the revenue base of state, among other benefits :

1. Rt Hon Chigozie Nwaneri (Oru-East).

2. Rt Hon Kanayo Onyemaechi (Owerri -West).

   3. Rt Hon Kennedy Ibeh (Obowo).

4. Hon Ikenna Ihezuo (Orlu).

5. Hon Gilbert Nwosu (Oguta).

6. Hon Uzoma Osuoha (Ohaji/Egbema).

7. Hon Chisom Ojukwu (Nkwerre).

8. Hon Princewill Amuchie (Aboh-Mbaise).

9. Rt Hon Uche Agabige (Orsu).

10. Hon Innocent Ikpamezie (Mbaitoli).

11. Hon Sam Osuji (Isiala Mbano).

 12. Rt Hon Samuel Ogbunikpa (Okigwe).

 13. Hon Emeka Ozurumba (Isu).

14. Hon Bernard Ozoemelam (Ehime Mbano).

Equally impressed, the Speaker of Imo State House Of Assembly, Rt Honourable Chike Olemgbe, wasted no time in referring the Bill to the House  Committee on Power And Water Resources,  for further legislative action, and for which its report is expected to  be submitted on the 30th  of April 2024.