RMAFC, NBET explore strategies for power sector stability

Barbara Bako, Abuja.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has engaged the Nigerian Bulk Electricity Trading Plc (NBET) on ways to strengthen transparency and funding mechanisms in Nigeria’s power sector.

The meeting, held at NBET headquarters in Abuja, was led by Hon. Ekene Enefe, Federal Commissioner representing Anambra State and Chairman of RMAFC’s Investment Committee.

Enefe explained that the visit was in line with the Commission’s constitutional mandate to obtain relevant financial and operational information from government agencies and private sector operators.

He said the Committee sought to understand NBET’s operations and challenges, particularly regarding its debt obligations to the Niger Delta Power Holding Company (NDPHC).

According to him, the issue arose during a previous interactive session with NDPHC, prompting RMAFC to seek clarification directly from NBET.

“Since government intervention in the power sector is a continuous process, RMAFC has initiated activities to review the revenue allocation formula to ensure adequate funding for critical federal projects, especially infrastructure development,” Enefe said.

In his response, NBET’s Managing Director/Chief Executive Officer, Mr. Johnson Akinnawo, described the organisation as a “special trader” in the Nigerian Electricity Supply Industry.

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He noted that NBET functions as a bulk purchaser and reseller of electricity, serving as a bridge between power generation companies (GenCos) and distribution companies (DisCos).

Akinnawo said NBET’s role was central to ensuring stability in electricity supply and incentivising private sector investment in power generation.

On the matter of indebtedness to NDPHC, he clarified that while NBET plays a part in debt recovery, the responsibility for real-time monitoring of income and sanctioning defaulting operators rests with the Nigerian Electricity Regulatory Commission (NERC) and the Central Bank of Nigeria (CBN).

He assured the Committee that NBET would provide a comprehensive list of indebted GenCos and announced plans to host an interactive session with relevant agencies, with RMAFC invited to participate.