Power Supply: Nigerians In For Brighter Days As Privatisation Nears Conclusion . Saturday, 14 September 2013 00:00 By Kelechi Okeke Busine ELECTRICITY supply has been a very big issue in Nigeria for the past decades, even as old as Nigeria’s independence, so much that one of the first words a child learns is NEPA. Monopoly has remained a big issue. But just like the telecoms industry, which had a similar problem, which has now been solved with the coming of the private sector initiative, the solution, critical stakeholders believe, lies in the private sector taking over the power sector also. The idea was put in motion exactly 13 years ago, when the axiomatic first step of a thousand miles was taken towards a wholly privatised sector. The idea began in earnest with the development in the year 2000 of the National Electric Power Policy (NEPP), approved by then Federal Executive Council (FEC) under President Olusegun Obasanjo. The development, which was hinged on making fundamental changes in the structure of ownership, control and regulation of the power sector, provided the framework for the eventual promulgation of the Electric Power Reform Act (EPRA) in 2005 that gave way to the transmutation of the defunct National Electric Power Authority (NEPA), to Power Holding Company Nigeria (PHCN). By this metamorphosis, the new entity assumed the legal teeth to warehouse the assets and liabilities of the decades-old NEPA, including the staff. Though initiated by Obasanjo, the power sector reform gained a jolt in the arm with the August 2010 Power Roadmap initiated by President Goodluck Jonathan. This document was not only unequivocal about the need to maintain the privatisation momentum, but set up a timeline for achieving the goal. However, the concerns of workers as to their fate in the new formation, which began to manifest at this point, added to other factors in stalling the process. The attempt by their leaders to cut out the fairest deal and the insistence of government stakeholders to grant only what was practical, realistic and legal, drove a wedge into what ordinarily was considered in certain quarters as a done-deal. The effect was a monstrous set of crises that burgeoned over time. The ensuing rancour that occurred as a result led to many developments that threatened the process, including lockouts, the confrontation between workers and the security force; vigils and prayer sessions by the workers to seek God’s intervention. Indeed, apart from compensation issues, accounting for the envisaged loss of jobs for the workers, their leaders led them to refuse the takeover of the management of the Transmission Company of Nigeria (TCN), the only one of the three unbundled entities of the former NEPA, by the technical management team, Manitoba Hydro International of Canada. It was in the heat of this confrontation that the former Minister of Power, Prof. Barth Nnaji, resigned his appointment. What followed was a period of lull. But the agitation continued. On February 5, amid the swaying of the power reform ship, Prof. Chinedu Nebo was appointed the New Minister of power. Since then, events have taken a new turn. A professor of metallurgical Engineering, the former Vice Chancellor of University of Nigeria Nsukka and Federal University Oye Ekiti, on taking over the captainship of the power roadmap met a lot of hiccups. These include, but not limited to inadequate funding for critical elements of the sector and zero funding of generating and distribution companies in the 2013 budget. The zero funding was based on the assumption that the companies would be taken over by the new owners by December 2012 but this was not the case. Using his depth of knowledge and administrative competence, Prof. Nebo quickly sought the urgent and decisive intervention of Mr. President and this has resulted in the noticeable improvement in power supply in some parts of the country. The Minister has continued to focus on improving service delivery through the implementation of the transmission emergency programme as well as the timely conclusion of the privatisation process, now at its climax. Today, the labour issues in the sector are being concluded with the payment of the severance package to PHCN workers. Ten DisCos and five GenCos have been privatised and new owners have already paid 25 per cent of their financial commitments to government. The Manitoba issue has been settled and the group has since been issued with the Schedule of Delegated Authority (SODA) apart from inaugurating the TCN board. Official records indicate that 13 out of 15 of the new owners paid the 75 per cent balance early last week. Full takeover of the companies is therefore imminent, ushering in the much-expected transitional electricity market. Just recently, the power reform train moved on faster, as successful bidders were announced for Afam GenCo and Kaduna DisCo. Similarly, the National Council on Privatisation (NCP), a couple of days ago, prequalified 82 consortia for the sale of 10 National Integrated Power Projects (NIPP) plants across the country under the Federal Government privatisation policy for the power sector. There is also a sustained effort to diversify the energy mix in the country through international partnership. For instance, Nigeria and China recently entered into a bilateral agreement with regard to power development. Power China Corporation is to establish gas–fired plants to generate 20,000MW and help raise resources to build 10,000km of super grid. A Chinese firm is to build a 1,200MW coal plant and also contribute 20-25 per cent equity for transmission lines. A Korean company is to provide 1,000MW of solar energy every year for the next 10 years. It is also on record that the 700MW Zungeru power plant project was recently flagged off by President Jonathan while the 3,050MW Mambilla project will soon be underway in line with the dogged determination exhibited by power sector managers of recent, in reforming the industry. From the foregoing, it is clear that Nigerians are in for brighter days. What is required is a more dogged push as well as the support and goodwill of Nigerians for result-oriented efforts for the government to actualise its ambitious goal of providing stable electricity to all Nigerians. At the centre of it all is the Minister of Power, Prof. Chinedu Ositadinma Nebo. A few days ago, the minister gave the nod for the commencement of actual payment of the severance benefits of the PHCN workers. This was hinged on the completion of the paper works, including forensic assessment and documentation of the records of beneficiaries. According to the Chairman of the Implementation Committee for the exercise and Permanent Secretary, Ministry of Power, Ambassador Godknows Igali, N118billion has been approved for the first tranche of the payment of about 20,304 staff who have been cleared for the Generation (GENCOs) and Distribution (DISCOs) companies, whose names were sent to the Office of the Accountant General of the Federation (OAGF), the outcome of which has already registered in the accounts of the beneficiaries. What could be more demonstrable evidence of his ability and potency for exorcising the demons and witches in the power sector, which Nebo had promised the nation even before assuming his seat than this feat of taming this particular devil in the labour conflict? Of course, other demons had fallen before now, one which also gave way for the enthusiastic payment of 25 per cent of the cost of the GENCOs and DISCOs by their new owners in April this year. With the apparent demise of the “labour devil” and the expected burial by the time each of the PHCN workers smiles home with his pay cheques, the coast would have been clear for the handover of the facilities to private hands, signaling the safe berth of the privatisation ship. That is when another phase will begin. Nebo enthusiastically calls it “Awakening the Nigerian Giant.” This is an era which he envisages will become a child’s play to the transformation experienced in the country’s telecommunications industry; where Nigerians, enjoying uninterrupted power supply will go back to work again, unleashing in the process the full potentials and resilience through which they not only became indispensible elsewhere in the globe but practically squeezed water out of stones to eke out a living at home; where industrialists will no longer suffer huge costs of production as a result of generating their own power, the wielders, hairdressers, coldroom operators and other artisans, who are actually seen by economists as the real engine of economic growth will be fully engaged and earn an honest living; where by so doing, few would have little time for the devil to use them as a workshop by leading them into unimaginable vices including crimes; where the gory stories of deaths by carbon monoxide from generators would be told in the past tense and where the revving engine of growth will continuously propel the nation to achieving its fullest potentials as one of God’s most endowed nations of the world. That’s what is in the offing at the moment. Already, the din coming from parts of Anambra State, especially Awka, the state capital, and environs, now reporting almost a 24-hour power supply indicates this. The way he sees it, Nebo contends that in a few months time Abuja, Nigeria’s seat of government would start experiencing 24-hour power supply while strategic industrial cities like Lagos would get a minimum of 22 hours.
Posted on: Fri, 13 Sep 2013 19:19:26 +0000
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