Jacobson Kay Obi

Nigerians believe that getting the nation’s power sector working in terms efficient generation and distribution of electricity is one sure way to rejig the nation’s economy. Their belief is rightly anchored because most industries and small businesses depend on energy to function optimally. Therefore the nexus between efficient power supply and industrialization cannot be overemphasized.

In most industrialized nations, electricity supply is assured 24 hours. That is why they have made giant strides in manufacturing and other sectors that enhance human development. There is no way we can attain such heights when every Nigerian generates his own power and generators are littered everywhere. The power sector conundrum predates this administration.

In fact, we have been grappling with power issues since 1999 when the current democratic experiment was inaugurated. Every attempt by past administrations since 1999 has not been able to cleanse the Augean stable. Available statistics reveal that about N5 trillion had been injected into the power sector from 1999 till date.

Nigerians that run their own businesses depend solely on generators. Nigeria can rank as one of the highest importers of generators in the world. The irony is that we have enough sunshine, rainfall, wind and gas and even refuse to generate power, yet we can’t even generate enough to power our industries and home use. Individuals are now tapping the solar power option for home uses.

This is one area government should show more interest. The solar energy option can provide most of the energy required to power some businesses and homes as well. Perhaps, it is this situation that informed the current administration’s resolve to tackle the power sector problem so that it will positively impact on the economy.

While many Nigerians have lampooned it for what they consider poor outing on the sector, they cannot deny that the government has laid the foundation to realise the power sector objective if vigorously pursued. Nigerians are always in a hurry to see things done but they should come to terms with the reality that the power sector problem cannot be solved overnight.

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It requires strategic and effective planning and injection of more funds. This administration inherited about 2,690 megawatts of electricity at inception in 2015 but it has through reforms increased it to 7,000 megawatts. It has also increased power distribution to 5,000 megawatts. With the additional 2,000megawatts of power generation by the end of 2018, the nation’s power generation capacity would have risen to 9,000 megawatts. All these did not come easy. The launching of the N701 billion Payment Assurance Programme designed to resolve the liquidity challenges in the power sector by guaranteeing payments to generating companies and gas suppliers must have increased the nation’s power generation by leaps and bounds.

Without doubt, the transmission expansion and rehabilitation programme has resulted in a 50 percent expansion in grid capacity since 2015, from 5,000 megawatts to 7,125 megawatts as at December 2017. It is also commendable that the Federal Government has approved Distribution Expansion Programme (DEP) in order to increase the distribution capacity in collaboration with this distribution companies (DisCos).  It is public knowledge that the power sector under the Minister of Power, Works and Housing, Babatunde Fashola, is aggressively pursuing power generation from hydro, thermal and renewable energy sources. The crazy bills challenge is being tackled with provision of pre-paid metres. But the pace of provision of metres has not been able to meet demand.  Government should address the shortage of pre-paid metres. Since our energy need is above 30,000 megawatts, government must think outside the box to ensure that   it meets it in no distant future. Beside the power sector, something good has happened in other sectors such as agriculture, security and the war against corruption. All these will expectedly rub-off on the economy if well managed and sustained.

This might have prompted the Minister of Information and Culture, Lai Mohammed, to aver that “this administration has kept its social contract with the Nigerian people by delivering on its campaign promises. We are putting our nation on the path of sustainable growth and development, diversifying our economy like never before, tackling corruption at its very core and devising creative measures to secure lives and property.”

The agricultural sector is looking bright with the giant strides in rice production through the Central Bank of Nigeria (CBN) Anchor Borrowers scheme. Although we are yet to achieve self-sufficiency in rice production, there is no doubt that we shall get there. It is also laudable that the government is two years away from meeting its target of producing six million metric tonnes of milled rice to meet local consumption.  The number of rice farmers in the country has increased from 5 million to 11 million within a period of three years. Under the period, government has cut the nation’s rice import bill of $1.65 billion per annum by 90 percent. It has delivered 10 million 50kg bags of fertilizer at a low price N5,500 for 2017.  It is good that the country now has an annual savings of $200 million in foreign exchange and N60 billion annually in budgetary provision for fertilizer. It is also turning around the nation’s infrastructural fortunes. It has spent about N2.7 trillion ($9billion) on power, roads and rail infrastructure.

The government has reduced leakages in government spending that made corruption possible through the diligent implementation of the Treasury single Account (TSA) as well as the whistle-blower policy. Also the economy grew by 1.95 percent in the first quarter of 2018. Consistent growth in the economy was achieved in the priority sectors of agriculture and solid minerals.

Government should work hard in these areas to leapfrog the economy to the desired level. Social investment programmes such as conditional cash transfer, marketmoni, farmermoni and the tradermoni can be used to enhance small businesses in the country. More market women and men should be accommodated in these micro-credit schemes. The N-Power programme must be further enhanced to include more participants and enhanced stipend.

Obi writes from Lagos