…As Ahmed inaugurates reconstitutes board
A power tussel may be brewing between the Ministry of Power and the Finance, Budget and National Planning Ministry over who controls the Nigeria Bulk Electricity Trader (NBET) with the swearing in of controversial NBET Managing Director Dr. Marilyn Amobi, as a member of the reconstituted board of the agency.
NBET was former under the supervision of the Power Ministry before it was moved to the ministry of finance after Dr. Amobi was sacked and later recalled by President Muhammdu Buhari.
A memo from the federal ministry of finance last week had said Amobi would serve out her tenure and would hand over to Dr. Nnaemeka Ewelukwa after her tenure ends on July 24. This was after the Minister of Power, Mr Saleh Mamman had earlier announced her sack was approved by President Muhammadu Buhari.
Inaugurating the reconstituted board of the electricity bulk trader on Monday in Abuja, Finance, Budget and National Planning Minister, Mrs Zainab Ahmed said the event is necessitated by the challenges of the power sector, particularly the challenges of the agency in achieving its mandate.
According to her, “we have all come to better understand the role of NBET as the manager and administrator of the electricity pool in the Nigerian electricity supply industry (NESI), and how it buys electricity from the generating companies (GenCos) including Independent Power Producers (IPP’s) under Power Purchase Agreements (PPAs) and resells it to the distribution companies (DisCos) via vesting contracts.”
“The role of NBET in the stabilisation of the power sector cannot be overemphasised as it plays a key role in the generation of market confidence through well-negotiated and well aligned contracts with fair risk allocation that protects market participants from credit and systemic risks. NBET stands as a de-risking agent in the power industry as it acts as a credit worthy off-taker of power procured from Gencos in the absence of bi-lateral contracts between Gencos and Discos,” she stated.
President Muhammadu Buhari had approved the reconstituted the Board of Directors of NBET. a Non-Executive Director from Ministry of Power, to be represented by a staff not below the level of a director; Mr. Alexander Ayoola Okoh, as Non – Executive Director from Bureau of Public Enterprises (80% Shareholder in NBET); Ms. Patience Oniha, Director-General, Debt Management Office, as Non-Executive Director; Mr Ben Akabueze, Director-General, Budget Office of the Federation, as Non-Executive Director.
Other members of the board include: Suleyman Ndanusa, former Director-General of Securities and Exchange Commission (SEC), as Non-Executive Director (Independent); Engr. Mustapha Balarabe Shehu, former President Nigeria Society of Engineers (NSE), as Non-Executive Director (Independent); Mr. Adeyeye O. Adepegba as Non-Executive Director (Independent); and Dr. Marilyn Amobi, as Managing Director/ Chief Executive Officer.
The contractual obligations and guarantees NBET issues and manages, according to her, are therefore of strategic importance for the repositioning of the sector and delivering of benefits to Nigerians for which NBET was established.
Ahmed, who ala doubles as the board chairman said: “The reconstitution of the board therefore took consideration of the current stage of evolution of the restructured electricity sector, the complexities the sector currently faces, multi-disciplinary skills of prospective Board members especially in finance and investment, electricity generation, system operations of deregulated electricity markets, administrative law, as well as economic regulation of network utilities, amongst other factors.”
“It is important that we bring our skills and experiences to bear in this critical assignment.
“It is important that we build NBET to become that defensive wall against potential payment defaults, till generation companies and distribution companies are able to enter into power purchase agreements on bilateral basis. NBET has to be able to successfully fulfill its role in the management and administration of financial flows in the sector, the promotion of a contract-based market that allocates risks efficiently to parties responsible for them and the formulation of policies for efficient system settlement.
She noted that the “electricity deregulation is still evolving in Nigeria, and the country is basically learning as the privatized market evolves. However, we do not have all the time, as the longer it takes, the more costly it is financially for Nigerians and the country at large.”
She, therefore, urged the members to ensure all hands are on deck and that their tenure as the Board in the transitional market trading arrangement should leave a good mark in the sands of time.
