AfrElec: NBET seeks five-year licence renewal from Nigeria’s NERC

The Nigerian Bulk Electricity Trading (NBET) Plc. has requested a five-year renewal of its operating licence from the Nigerian Electricity Regulatory Commission (NERC). 

NBET, the manager and administrator of the electricity pool in the Nigerian electricity supply industry (NESI), is 100% owned by the country's Federal Government.

With its current licence set to expire on November 21 2024, NBET presented its case during a public hearing organised by NERC in Abuja. Company managing director Johnson Akinnawo highlighted NBET’s contributions to Nigeria’s power sector, including its management of a contract portfolio with an annual trading volume exceeding $2bn.

Akinnawo underlined NBET’s pivotal role in securing nearly $1bn in greenfield power generation investments and overseeing the privatisation of Power Holding Company of Nigeria (PHCN) assets.

He also highlighted that the company has been instrumental in attracting significant private sector investments through power purchase agreements (PPAs) and Vesting Contracts, resulting in approximately $2.5bn in investments in power generation (Gencos) and distribution companies (Discos). These efforts, he noted, align with NBET's vision of creating a self-sustaining electricity market driven by private capital.

At the public hearing, NERC Commissioner Dafe Akpeneye noted the importance of stakeholder involvement in the licence renewal process, acknowledging that the evolving nature of the power industry requires broad input.

Edu Okeke, managing director of Azura Energy, strongly supported the licence renewal, advocating for a longer term than the requested five years. Okeke said that long-term investor confidence is essential for sustained investment in Nigeria’s electricity sector. He claimed that no investor would commit to long-term projects if NBET's license were renewed for just five years.

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