Corruption scandals rock power sector
The power sector became embroiled in another scandal from 2007 where it was said that over N11 trillion was squandered without commensurate increase in electricity supply. Nigeria’s generation capacity was said to still be at about 6,000MW installed capacity with less than 3,000MW daily peak generation.
The National Assembly constituted committees to probe the sector particularly the NIPP projects being handled by the NDPHC. The crisis was finally put to rest as the NIPPs continued about a year after but the peace was broken as another controversy came up for the commissioners of NERC.
They were ousted from office over allegations of corruption and an Administrator was appointed to oversee the affairs of the Commission in February 2009. By December 2010, the 2nd Commission was inaugurated having seven commissioners and led by Dr Sam Amadi.
In 2010, the Nigerian Bulk Electricity Trading Plc (NBET) was established as a credible off-taker of electric power from generation companies. By November 2013, the privatisation of all generation and 10 distribution companies was completed with the Federal Government retaining the ownership of the transmission company. The privatisation of the 11th distribution company was completed in November 2014.
The MYTO methodology launched in 2008 was reviewed in March 2012 after four years. The MYTO 2 then came into effect on June 1, in what was said to provide a guiding tariff for electricity pricing and sales as the privatisation dawned.