The Nigerian Bulk Electricity Trading Plc (NBET) has initiated efforts to renew its license with the Nigerian Electricity Regulatory Commission (NERC) to maintain its role as the country’s bulk electricity trader. This move follows NERC’s recent directive barring NBET from entering into new electricity contracts.

In July, NERC instructed NBET to halt new agreements for purchasing and reselling electricity and ancillary services within the Nigerian Electricity Supply Industry (NESI).

NBET, established on July 29, 2010, and wholly owned by the federal government, serves as the primary purchaser of electricity from generating companies under Power Purchase Agreements (PPAs).

After its initial 10-year license expired in November 2021, NERC granted a three-year extension, set to end in November. During a public hearing in Abuja, NBET’s Acting Managing Director, Johnson Akinnawo, outlined plans for a five-year license renewal, which will see the company evolve into an energy exchange. This new model aims to foster direct trading between generating companies, Independent Power Producers (IPPs), and commercial/industrial customers through an automated trading platform and multiple energy brokers.