“This is a great day for the country, as it begins to allow the country transition to where exactly the reform is: which is to hand over the industry to private sector operatorship. Then we can begin to see gains of the private sector,” Rumundaka Wonodi, Managing Director, Nigeria Bulk Electricity Trading Company told CNBC Africa.
After the handover on Friday, a ceremony hosted by the federal government was held at the plant located in Ughelli South in Delta State. Transcorp Ughelli Power Limited (TUPL), a subsidiary of Transnational Corporation of Nigeria (Transcorp), took ownership of the 1,000MW capacity plant.
“We should expect that the private sector to drive efficiency and make the investments that are required especially in distribution and generation to offer people better services,” he explained.
In the last few years, the government has been creating the regulatory frame work and putting policies in place for the privatisation of the sector. According to Wonodi, predictability from the distribution companies, a method of rationing the power and better customer services, should be expected.
“Where we are now in power supply per capita is extremely low compared to other countries so the growth of power both in generation and distribution is why people are making these investments. They’ll continue to invest and therefore they’ll generate more revenue and the consumers will have more power,” he said.
Wonodi believes that the government has put in a commercial, regulatory and policy frameworks for the sector.
“It’s not a matter of just handing over and then people going away. There are contracts in place that people will need to adhere to, there are terms of licenses that investors and participants will need to adhere to and then there’s a policy framework that guides it and then there are laws around it,” he concluded.