Sector Capacity Needs Assessment – A Nextier Intervention

With the increasing demand for better services from the Nigerian Electricity Supply Industry (NESI), more attention is being paid to performance management, performance implementation and quality of service. In response, the industry is activating and implementing policies and regulations that drive the quality of service. Capacity and performance improvement plans have become more commonplace in the sector’s recent operations. Developing infrastructure without the capacity to manage the market would be futile, and capacity building should accompany all other efforts.

Historically, power sector stakeholders have recorded a lack of consensus around pathways towards achieving a Medium-Term Electricity Market (MTEM) coupled with identifiable capacity deficits within relevant agencies and capacity constraints.

Nextier Power was commissioned to carryout a sector capacity needs assessment of some stakeholders at individual, institutional and systemic levels, taking account of business and operating models, feasible technology options and the preparedness levels of these agencies. In addition, the Nextier team was to propose a capacity development framework that would address the capacity shortfalls required to match the developing infrastructure. This would facilitate the creation of an enabling environment for an MTEM.

The contributory roles of each institution to the management of the electricity industry and literature on the agencies’ capacities, operations and systems were thoroughly reviewed. In addition, an analysis of individual, institutional and system gaps taking account of business and operating models, feasible technology options and the preparedness levels of the client institutions enabled an understanding of what was imperative. Furthermore, comments and input from industry stakeholders enabled the development of a capacity development framework to match policies and regulations intended to drive the quality of service in the MTEM.

A primary challenge the Nextier consulting team identified was the lack of intentional collaboration and coordination by the relevant agencies to move the system towards an MTEM. Furthermore, a significant hindrance was a lack of capacities needed by the Agencies to manage a more bilaterally advanced electricity market.

Apart from identifying the challenges, the team made recommendations to facilitate synergy amongst the core stakeholders and sustain the capacity required to achieve the desired traction for enhanced service delivery in the Market.

At the conclusion of the sector capacity needs assessment, Nextier recommended the need for targeted capacity building that would support the creation of the proper framework required to improve stability, manage performance, optimise improvement plans and enable operationalising the necessary operations agreements in the sector. Another recommendation by Nextier was the need to earmark financial (and other) allocations for the deployment of the Capacity Development Plan within the agencies and ensure intentional monitoring and evaluation to ensure it achieves the desired objective.

A mix of in-house sector capacity development experts, technical advisers and the National Power Training Institute (NAPTIN) play a strategic role in addressing these recommendations. Also, collaborating with NAPTIN as a first recourse reduces the huge cost exposure usually associated with capacity development interventions of this nature.

Despite the challenges faced, deploying the capacity development framework and accompanying sustainability plan has led to improvements in the power sector and strengthened capacities among the agencies.