Tinubu administration may wind up NBET

The administration of President Bola Tinubu may be contemplating the dissolution of the Nigeria Bulk Electricity Trading Plc (NBET) following the expiry of its current operating licence.

This development comes after the Minister of Power, Adebayo Adelabu, declined to renew the tenure of the current Managing Director/CEO of the company, Nnaemeka Ewelukwa.

Mr Ewelukwa succeeded Marilyn Amobi, whose tenure was riddled by numerous controversial developments and multiple corruption allegations.

In a circular dated 23 July, seen by this publication, Mr Adelabu informed Mr Ewelukwa that his four-year tenure would not be extended.

This notice was given in response to Mr Ewelukwa’s letter notifying the minister about the imminent expiration of his tenure and possible consideration for a second term.

“Your letter on the above subject dated 22 July 2024 refers. On behalf of His Excellency, the President of the Federal Republic of Nigeria, Chairman Board of Directors (NBET), I wish to extend the sincere appreciation and commendation of the Federal Government of Nigeria for your diligence, hard work, as well as immense contributions, as the Managing Director/CEO of NBET in the past four years.

“We also appreciate your diligent service while your contribution to the ongoing reform in the power sector and nation-building is well acknowledged. As you are aware that the operating licence granted to NBET is deemed to expire before year-end, there is no immediate justification for your tenure extension or renewal,” the letter read in part.

For a smooth and seamless transition, the minister directed Mr Eweluka to hand over to the most senior general manager in the company by 24 July.

NBET

Incorporated on 29 July 2010 and fully owned by the Federal Government in accordance with the Electric Power Sector Act, 2005, NBET acts as the principal purchaser of electricity from generating companies.

The company acquires power through a Power Purchase Agreement (PPA), which sets out the terms and conditions for transactions between these generating companies and NBET.

Within the power industry, it serves as the “manager and administrator of the electricity pool.”

Following the expiration of the company’s initial 10-year licence in November 2021, the Nigerian Electricity Regulatory Commission extended its operating licence for an additional three years.

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The licence is set to expire in November.

Attempts to speak to the spokesperson of the minister of power, Bolaji Tunji, for comments on the new developments were unsuccessful as he did not respond to telephone calls and text messages as of press time Thursday night.