Soji Ajibola, Author at Tribune Online

The Minister of Power, Chief Adebayo Adelabu has emphasized the need for structural reforms in public enterprises for efficiency and productivity. This is as he advocated for good governance, which he said is central to national development that will ensure that public resources are safeguarded and deployed to serve the needs of the country. Adelabu stated this at the first ever Corporate Governance Forum in Nigeria, held at the Transcorp Hilton Hotel in Abuja. According to him, one of the most significant structural reforms in recent times in the power sector, is the unbundling of the Transmission Company of Nigeria (TCN) into two distinct operational entities which are the Nigeria Independent System (NISO) and the Transmission Service Provider (TSP), in accordance with the Electricity Act 2023. He said this was not a mere administrative step but a reflection of the Ministry’s commitment to fostering operational clarity, transparency, and ultimately, value creation through better corporate governance. “It is a great honour to address you today at this landmark Corporate Governance Forum – the very first of its kind in Nigeria convened under the leadership of the Ministry of Finance Incorporated (MOFI), and in collaboration with the World Bank and other esteemed development partners. “This Forum comes at a critical juncture. Across Nigeria, State-Owned-Enterprises (SOEs) have long held a central role in driving public service, value creation, and supporting economic development. Yet, the evolving complexities of our economy, technological disruptions, and rising public expectations have laid bare the urgent need for transformation – particularly in how we govern these enterprises. For us in the power sector, this imperative is neither abstract nor optional. It is urgent, necessary and already underway”, These necessities, the Minister stated, led to the unbundling of the TCN into NISO and the TSP. He noted that improved corporate governance is not only about internal efficiency but also central to national development as it will ensure that public resources are not only safeguarded but are deployed effectively to serve the broader gaols of reliability, access, and energy transition. “Both the Nigeria Independent System and the Transmission Service Provider have critical mandates. The NISO will oversee the real time balancing of electricity supply and demand, while the TSP will be responsible for maintaining and expanding the physical transmission infrastructure. “To deliver on these mandates effectively, each entity must be governed with integrity, independence, and accountability. Good corporate governance will not only ensure their operational excellence, but also bolster investor confidence, facilitate regulatory compliance, and protect public interest”, Adelabu commended the MOFI for leading the repositioning of the Federal Government’s asset management function and in embedding governance as a strategic priority for all Federal Government Owned Enterprises. He said the launch of the Corporate Governance Scorecard and the pilot assessment are important steps in building a culture of performance and transparency across the public enterprise landscape. He added: “ The Federal Ministry of Power stands ready to align with these efforts and institutionalize sound governance practices across all entities within our purview. We will continue to work with the relevant authorities to ensure that the governance frameworks of Nigeria Independent System Operator and the Transmission Service Provider and other power sector entities are clear, functional, and fit for purpose. “In closing, let me reaffirm that for us in the Nigeria Power Sector, good corporate governance is not a luxury, it is a necessity for national competitiveness, financial sustainability, and inclusive service delivery. We expect that this forum will serve as a catalyst not just for dialogue, but for action”. In attendance were the Minister for Finance and the Coordinating Minster for the Economy, Mr. Wale Edun and the Chairman/CEO of MOFI Corporate Governance Forum, Dr. Shamusudeen Usman. READ MORE FROM: NIGERIAN TRIBUNE