The Nigerian Bulk Electricity Trading Plc (NBET) has formally requested the renewal of its operating licence from the Nigerian Electricity Regulatory Commission (NERC), citing its significant contributions to the nation’s power sector. NBET’s current licence is set to expire on November 21, 2024, and the company is seeking a five-year renewal to continue its operations.
The request was presented during a public hearing organized by NERC in Abuja on Thursday. Johnson Akinnawo, the Managing Director of NBET, detailed the company’s achievements during the session, emphasizing its pivotal role in managing a contracts portfolio with an annual trading volume exceeding $2 billion.
“NBET has transparently managed a contracts portfolio with an annual trading volume over $2 billion,” Akinnawo stated. He further highlighted the company’s success in attracting nearly $1 billion in greenfield power generation investments, as well as overseeing the privatization of assets formerly held by the Power Holding Company of Nigeria (PHCN).
Akinnawo underscored NBET’s critical role in facilitating private sector investments through Power Purchase Agreements (PPAs) and Vesting Contracts. These agreements have contributed to approximately $2.5 billion in investments in power generation companies (Gencos) and distribution companies (Discos). He reiterated NBET’s vision of creating a self-sustaining electricity market, driven primarily by private investments.
NERC Commissioner, Dafe Akpeneye, acknowledged the importance of stakeholder engagement 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,” Akpeneye noted.
Edu Okeke, Managing Director of Azura Energy, voiced his support for an extended licence renewal, stating, “No investor will agree to invest long-term if NBET’s licence is only renewed for five years.”
The outcome of NBET’s licence renewal request is expected to play a key role in shaping the future of Nigeria’s power sector, particularly in the areas of investment and market stability.
