ADVERTISEMENT
The Sun Nigeria
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
The Sun Nigeria
No Result
View All Result
ADVERTISEMENT
Ley Your Dreams Come Alive – With FCMB Loans
Home Columns

Senate and battle to rescue power sector

8th July 2020
in Columns
0
Senate and battle to rescue power sector
0
SHARES
252
VIEWS
Share on FacebookShare on Twitter

Electricity is a prerequisite for socio-economic development of any nation where welfare and security of the citizens are guaranteed. Inadequacy of it, manifesting as unstable supply and frequent blackouts, reflects the ineffectiveness of governments.

As such and with a view to achieving stability and sufficiency, the Nigerian power sector has witnessed a series of successive governments’ interventions since Independence and, by the same token, it enjoyed government’s monopoly until recently.

In 2004, the National Integrated Power Project (NIPP) scheme was initiated to launch gas-powered stations, towards boosting power supply. Going forward, and implementing the National Electric Power Policy (NEPP) of 2001, the Electric Power Sector Reform Act of 2005 was enacted, causing the establishment of the Nigerian Electricity Regulatory Commission (NERC). Again, in August 2010, the Road Map for Power Sector Reform was formulated, and its later implementation in November 1, 2013, resulted in the eventual privatisation of the power sector, which is where we are today.

With the privatisation, two of the three segments of the sector, comprising the six generation companies (Gencos) and 11 distribution companies (Discos), were officially handed over to investors. Government retained the third arm, operating it as the Transmission Company of Nigeria (TCN). No doubt, the socio-economic deliverables from this measure was to ensure efficient and competitive services that would guarantee sustainable power supply for businesses and households.

Then, as part of government obligations towards enhancing the capacity of these electricity providers, through soft loans, the Central Bank of Nigeria (CBN), in 2015, floated a N213 billion Nigeria Electricity Market Stabilisation Facility (NEMSF). Meanwhile, government had effected a rise in prices paid by consumers under the Multi-Year Tariff Order (MYTO), introduced in June 2012 to allow tariffs gradually grow as the cost of operations does, just to attract private investment.

But despite these creative and innovative solutions aimed at attaining sufficient availability, the situation is retrogressing by the day, even with continued government subsidies for some users. The infrastructures are poor and decaying because the operators, apparently, refuse to reinvest, suggesting that most of them were not actually prepared for the business, be it in relation to patriotism, capacity and funding. And to this end, there have been concerns about the suspected questionable conduct of the acquisition deals. Otherwise, why would the Discos be vehemently resisting Federal Government’s moves to conduct forensic audit of their overall operations?

Consequently, today, Nigeria is at a crossroads concerning power supply. People are made to pay for power not consumed either by over-billing or billing without supply. Businesses are folding up and jobs are being lost rapidly. Health hazards arising from emissions from power-generating sets are on the increase. Communication, information access and quality of education are threatened. Pressures of urban migration are growing daily. Poverty and insecurity are multiplying exponentially. At a time when her contemporaries are making exploits in science and technology, including advancements in politics and governance, Nigeria is still struggling with self-discovery. All these are because Nigeria’s power sector is not driving the economy.

Granted, the operators argue that they suffer revenue losses sequel to infrastructure vandalism and untoward tendencies of those that shortchange them in various ways, as not all consumers are metered. Other reasons are fluctuating global economy and shortage of gas supply for thermal plants. As such, they canvass tariff increase in order to meet up.

But as logical as this appears, Nigerians are justifiably pained that nothing significant has been delivered to even rationalise the privatisation in the first place. They are unanimous that the electricity companies must first improve their services before raising prices or expecting further government support, if indeed they mean business.

Reflecting these grievances of frustrated Nigerians, including businesses who have suffered years of incessant power outage and suppression of productive activities sequel to this dismal performance, Senate President Ahmad Lawan is resolute and persistently advocating urgent, pragmatic intervention in Nigeria’s power sector. He is so passionate about it that the Senate prioritised it on its agenda.

In one outing, he disclosed that “we took the decision to convene roundtable discussions on three critical sectors of our economy. This exercise started with the power sector. The Federal Government, in recent years, has invested billions of dollars in this sector, most of which money appear to have gone down the drain as the problems of inadequate power supply continue to plague Nigeria. Even the subsequent privatisation of the sector has had no visible impact. In fact, many Nigerians believe that we allowed ourselves to be further defrauded through the privatisation of the sector. But this is not the time for lamentation. We are determined to find a way out of this national quagmire.”

Meanwhile, at that roundtable event earlier, Lawan lamented that “if there’s any sector of our economy that is so important and yet so challenged, it is the power sector. I believe that this is a sector that needs a declaration of emergency. The truth is that we all know what is wrong. What we really need to do is to have the political will to take on the challenges generally. From the electricity power reform of 2005, to the privatisation of Gencos and Discos and to what is happening today, we know that everything is a fraud. If we play the ostrich, in the next 10 years we will be talking about the same things. I think the time has come for us to have courage.”

This devastating situation challenged the Senate to come under a motion on Power Sector Recovery Plan and the Impact of the COVID-19 Pandemic, to advance the advocacy, albeit in sympathy with the investors.

Presiding over the deliberations, Lawan reiterated that the Senate had decided “to investigate the trillions spent in the power sector, and find out what has happened so far. Government needs to look at this whole thing. Maybe government is not doing its own part. We need to find out. There is lack of capital. We feel very bad. There is no electricity and the country is suffering. I think it’s time for Nigeria to consider reversing the privatisation of the power sector or they should just cancel the entire privatisation process completely. If we leave it, we may not have power for another 10 years. We expected efficiency and something better. The distribution companies have no capacity to supply us power. We shouldn’t continue to give them money. They are private businesses. We need to review this whole thing.”

Subsequently, the Senate mandated its Committee on Power to “investigate all Federal Government interventions in the power sector since the privatisation of the sector, with a view to ascertaining the adequacy of such interventions and their desired impact.” And also in appreciation of the current realities on ground, it asked the Ministry of Finance to “include the Nigerian Electric Power Sector in the disbursement of the proposed N500bn COVID-19 Crisis Intervention Fund, in order to ameliorate the financial hazards and operational challenges such as the enumeration of metering of actual consumers and recent problem arising from the pandemic.”

Furthermore, the CBN was requested “to allow operators in the power sector access to foreign exchange for procurement and materials like what is done in the aviation and oil industry.” And then, while allowing for Federal Government’s consideration of additional tariff support to the electricity providers, the Senate ordered the suspension of “the planned tariff increase, which is scheduled to take effect from 1st of July, 2020, bearing in mind increased hardship resulting from the COVID-19 pandemic.”

In all these, the Senate has demonstrated remarkable responsiveness, particularly in striking a balance between public expectations and present economic challenges relative to the operators’ proven inability to invest for expansion and improvement in dispensing.

Therefore, the executive arm should consciously complement these legislative interventions towards lasting solutions to the crisis. Otherwise, Nigerians and businesses cannot be globally competitive in the avoidable absence of affordable and sustainable power supply.

• Egbo is print media aide to the President of the Senate

Rapheal

Rapheal

Related Posts

Winning with the Nigerian spirit
Columns

Tinubu inside Fashola’s book

25th June 2022
Lagos judiciary again raises the bar on adr practice
Columns

Exploiting the core values of mediation for societal good

25th June 2022
Atiku: Who wants to be a Nigerian?
Columns

CBN Under Godwin Emefiele targeting inclusive growth

25th June 2022
Next Post
Gusau refutes Sports Ministry’s claim on court judgment

Gusau refutes Sports Ministry’s claim on court judgment

Sports Ministry disclaims Pepple, alerts security agencies

Sports Ministry disclaims Pepple, alerts security agencies

Tokyo 2020:  Medals to be made from recycled waste

Nimrod confident Nigeria’ll qualify for Tokyo Olympics

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Highlights

Pfizer says tweaked COVID-19 shots boost omicron protection

2022 internal examination begins Monday – NECO

Groups in Spain and Morocco push for border deaths inquiry

French lawmakers want abortion rights in constitution

Bangladesh marks opening of country’s longest bridge

Gunman kills 2 during Oslo Pride festival; terror suspected

Trending

South African Investor to establish 5,600 megawatts solar power project in Kebbi
Business

South African Investor to establish 5,600 megawatts solar power project in Kebbi

25th June 2022
0

From Olanrewaju Lawal, Birnin Kebbi The Kebbi State Government has allocated 200 hectares of land to a...

How governor Yahaya Bello injected life into Kogi tertiary institutions - Commissioner of Education

How governor Yahaya Bello injected life into Kogi tertiary institutions – Commissioner of Education

25th June 2022
UK: Defiant Boris Johnson says he won’t change despite election woes

UK: Defiant Boris Johnson says he won’t change despite election woes

25th June 2022
Pfizer says tweaked COVID-19 shots boost omicron protection

Pfizer says tweaked COVID-19 shots boost omicron protection

25th June 2022
2022 internal examination begins Monday - NECO

2022 internal examination begins Monday – NECO

25th June 2022
ADVERTISEMENT

Follow us on social media:

Latest News

  • South African Investor to establish 5,600 megawatts solar power project in Kebbi
  • How governor Yahaya Bello injected life into Kogi tertiary institutions – Commissioner of Education
  • UK: Defiant Boris Johnson says he won’t change despite election woes
  • Pfizer says tweaked COVID-19 shots boost omicron protection
  • 2022 internal examination begins Monday – NECO
  • Groups in Spain and Morocco push for border deaths inquiry
  • French lawmakers want abortion rights in constitution
  • Bangladesh marks opening of country’s longest bridge
  • Gunman kills 2 during Oslo Pride festival; terror suspected
  • Obasanjo laments recycling of old politicians, money politics
  • Russians try to block city, cement gains in eastern Ukraine
  • Road to 2023: PDP loses top mobilisers, others to APC in Edo
  • ‘Total bloodbath’: Witnesses describe Ethiopia ethnic attack
  • Bauchi won’t be safe haven for bandits – Gov Mohammed
  • Deadly earthquake a new blow to Afghans reeling from poverty
  • Coalition canvass for Dogara as Tinubu’s running mate
  • Protesters gather as G-7 leaders set to arrive in Germany
  • Buratai: WIP laments increasing rate of fake news, calls for checks 
  • Ekweremadu: Nigeria-American group cautions UK against fraudulent asylum claim
  • Gov Mohammed alerts Bauchi residents over bandits’ threat

Categories

  • Abuja Metro
  • Anambra Watch
  • Arts
  • Broken Tongues
  • Business
  • Business Week
  • Cartoons
  • Citizen Joe
  • Columns
  • Cover
  • Culture
  • Duro Onabule
  • Editorial
  • Education Review
  • Effect
  • Elections
  • Entertainment
  • Events
  • Features
  • Femi Adesina
  • Food & Drinks
  • Frank Talk
  • Funke Egbemode
  • Gallery
  • Global Square by Kenneth Okonkwo
  • Health
  • Insights
  • Kalu Leadership Series
  • Kunle Solaja
  • Kunle Solaja
  • Letters
  • Lifeline
  • Lifestyle
  • Literary Review
  • Marketing Matters
  • Muiz Banire
  • National
  • News
  • Offside Musings
  • Opinion
  • oriental news
  • Politics
  • Press Release
  • PressClips
  • Public Sphere
  • Ralph Egbu
  • Shola Oshunkeye
  • Sideview
  • South-west Magazine
  • Sponsored Post
  • Sporting Sun
  • Sports
  • Sun Girl
  • Tea Time
  • The Flipside – Eric Osagie
  • The Sun Awards Live
  • The Sun TV
  • Thoughts & Talks
  • Time Out
  • Today's cover
  • Tola Adeniyi
  • Travel
  • Travel & Tourism
  • Trending
  • TSWeekend
  • Turf Game
  • Uncategorized
  • Updates
  • Views from Abroad
  • Voices
  • World
  • World News
  • Home
  • About Us
  • Paper Ad Rate
  • Online Ad Rate
  • The Team
  • Contact Us
  • Privacy Policy

© 2019 The Sun Nigeria - Managed by Netsera.

No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun

© 2019 The Sun Nigeria - Managed by Netsera.

Posting....