The Director-General, Manufacturers Association of Nigeria, Mr Segun Ajayi-Kadir, has said it is a setback for the Federal Government’s quest for improved industrialisation and business growth in Nigeria that about 40 companies that applied for eligible customer regulations of the Nigerian Electricity Regulatory Commission had not been granted licences.
He explained that about 40 companies were in some stages of processing their applications but added that 14 companies had submitted their applications and had not been given the approval.
He spoke in an interview with our correspondent on the sidelines of a stakeholders’ workshop on eligible customer regulation organised by NERC.
The contractual framework contemplated in the regulation is such that the distribution companies, the Transmission Company of Nigeria as well as power producers all stand to generate some revenue depending on the particular class of customers involved.
Under the framework, large scale power users or companies can purchase power directly from generation companies without necessarily going through the distribution companies.
Noting that eligible customer regulation was a laudable scheme, the MAN DG urged the Federal Government to prevail upon the concerned authorities to ensure that qualified companies were given the approval.
Ajayi-Kadir said, “Over 40 companies have indicated interest to benefit from the scheme and so they are in one stage or the other in processing their applications but 14 have actually submitted their applications.
“So, it is worrisome that all sorts of delay tactics are being put in place to debar them from benefitting from this scheme which the government has done in the best interest of industry and the economy.
“I think it is a worrisome development because we believe the eligible customer scheme is supposed to liberate us from what has become the major issue we have in the industry.
“It is supposed to allow us to access power. This is based on the fact that the distribution companies could not give us what we want. Even when they supply power, it is not regular and it is not adequate.”
He called on the government to prevail on the NERC to ensure that those that have met the requirements should be given the licences.
Ajayi-Kadir added, “It is worrisome, we want it to end, and we want our members to be able to access this facility so that they can grow their businesses.
“I think one of the major constraints is the issue of the Discos having to give you a letter of consent that they do not have an objection to you accessing the scheme. I think that should be removed because they are totally unrelated.
“Some of our members have taken banks’ guarantees that should completely insulate them from the requirement of the Discos who contest bills.
“So, NERC should put its feet down and say those who have taken banks’ guarantees should be immediately absolved of that responsibility so that they can go ahead and access it but those other ones if they are ready to give banks’ guarantees, they should be able to access it.”