Nigeria’s Electricity Problem: FG vs. DISCOs - THISDAYLIVE

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Nigeria’s Electricity Problem: FG vs․ DISCOs

Here is the main problem with Nigeria’s electricity sector: Nigeria is Africa’s most populous nation, but it has failed consistently to generate, transmit and distribute enough electricity to power its development process and accelerate economic growth. Between 1999 and 2007, President Olusegun Obasanjo focused on the reform of the electricity sector as one of the major priorities of his administration.

The House of Representatives also conducted a probe of the electricity sector. The House Committee on Power led by Hon. Ndudi Elumelu accused the Obasanjo administration of having spent over $10 billion on the electricity sector without having much to show for it. The Committee disclosed that between 2000 and 2007, the Obasanjo administration spent over $10 billion on various projects in the power sector. The Elumelu Committee raised questions and demanded answers.

President Jonathan had threatened, right from his early days in power that he would privatize the PHCN, and reform the electricity sector. In due course, he launched a Power Sector Transformation Plan and gave full effect to the Nigeria Electricity Sector Regulatory Act of 2005. He commissioned and upgraded a number of power plants including the Azura-Edo power plant, the first fully privately owned Independent Power Plant in Nigeria.

Needless politicking, sentiments and emotions have proven to be the bane of the electricity sector in Nigeria. Every Minister of Power since 1999 has always been ready with an excuse for inefficiency. Babatunde Fashola, as Buhari’s Minister of Power, Works and Housing heaped the blame on the privatization process. Buhari’s NERC blames the DISCOs and even threatened to revoke their licences.

Recently we read in the media, that Federal Government has granted sovereign guarantee to NNPC to build gas pipeline from Ajaokuta to Kano for $2.8 billion, with about two captive gas-powered generating plants along the gas pipeline. But any discerning observer of the industry will ask whether this AKK should be a priority now, when you can deploy the $2.8 bill to solve the immediate problems of the stranded 10 gas-powered generating plants in the hands of NIPP/Niger Delta Power Holding Company.

 

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