My Proposal for Dual-Licensed Power Generation and Distribution Companies

I believe Nigeria can improve power-sector accountability by introducing companies with dual licences for electricity generation and distribution. Companies seeking nationwide coverage could be required to obtain a licence at a substantial regulated fee. Solar PV farm operators should distribute electricity through these newly licensed companies, while using approved meters for proper accounting. Independent generators that use their own power could pay a small distribution charge, capped at about 5% of revenue and adjusted according to scale. New large-scale solar generation licences should be issued only under the dual-licensing framework. Private homes may install small solar systems for personal use, but they should register with regulators, remain below an approved capacity limit and not be allowed to sell electricity. Non-solar power plants should continue distributing through the existing DisCos, also under a regulated revenue-sharing arrangement. These rules could create clearer accounting and better oversight across the electricity market.

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