In a bid to continuing purchase and resale of electricity , the Nigerian Bulk Electricity Trading Plc, NBET, has sought for the renewal of its operating licence from the Nigerian Electricity Regulatory Commission,NERC.
Seeking for a five-year renewal would
enable NBET continue operation beyond November 2024 when the present licence is expected to expire.
The request was made during a public hearing organised by NERC in Abuja on Thursday.
This follows the recent order by the Nigerian Electricity Regulatory Commission, which bars NBET from entering into new contracts for the purchase and resale of electricity and ancillary services in the Nigerian Electricity Supply Industry, by Section 7(2) of the Electricity Act 2023.
Speaking at the hearing, NBET Managing Director, Johnson Akinnawo, highlighted the company’s achievements.
“NBET has transparently managed a contracts portfolio with an annual trading volume over $2bn,” he said.
Akinnawo also emphasised the company’s role in attracting nearly $1bn in greenfield power generation investment and managing the privatisation of Power Holding Company of Nigeria assets.
“The execution of these agreements paved the way for about $2.5bn in investments in Gencos and Discos,” he noted, adding that NBET envisions a self-sustaining electricity market driven by private investments.
NERC Commissioner, Dafe Akpeneye, acknowledged the importance of stakeholder input in the licence renewal process.
“The commission doesn’t believe that we know it all. Given how the industry is changing and evolving, it’s important that we get critical stakeholders’ input into NBET’s request,” he said.
The Managing Director of Azura Energy, Edu Okeke, expressed support for extended licence renewal, stating, “No investor will agree to invest long-term if NBET licence is only renewed for five years.”