Sanctions loom for non-performing power agencies, minister declares

The Minister of Power, Adebayo Adelabu, on Tuesday, declared that sanctions would be imposed on any agency or director that fails to meet corporate expectations in the power sector.

This warning was given during a meeting where performance contracts were signed with various agencies in the sector in Abuja on Tuesday.

A performance-based contract is a type of contract that ties payment to specific performance metrics or outcomes, ensuring that contractors are paid based on their actual performance.

PBCs are commonly used in situations where desired outcomes are clearly defined and contractors have control over delivery.

These contracts specify key performance indicators or metrics to measure performance and tie payment to achieving those metrics.

Nigeria has adopted this measure in the civil service to ensure optimum performance of its civil servants.

According to the Minister, “We will not wait until the end of the year or end of the quarter before we start assessing ourselves. We need to get involved in the works on how you are progressing to achieve your final targets for the quarter.”

When asked about the sanctions, the Adelabu replied, “Just like the performance delivery is top-down, reward will also be top-down on achievement. Then, sanctions too, will be top-down. Depending on the sanctions that Mr. President is going to mete out to a non-performing minister and a non-performing council, we will determine the sanctions that will be met out to everybody involved here.”

This move is aimed at ensuring that all agencies in the power sector deliver on their targets and contribute to the overall achievement of the ministry’s goals. The Minister expressed confidence that the signing of the performance contracts will compel each agency to deliver on their targets.

The power sector is a critical sector in the country, and the Minister’s warning is seen as a step in the right direction to ensure that the sector achieves its full potential. With sanctions looming for non-performing agencies, it is expected that all agencies will put in their best efforts to deliver on their targets.