In one of the forum i was, there was a discussion on GEJ and why he should be changed, and another person brought in. One of the respondent said that his reason is that ordinary electricity is not working, let another person come and try and ;lets see what he can do. My answer to his response is below, what do you think? Thats not the best approach, first ask yourself, why is electricity not working. U cannot throw away your car because its not starting, you must find out why. Starting with the military, they bastardized Electricity and used it as guinea pig to milk the country dry. other institutions used includes, Power, NNPC, Refineries, NITEL, Aviation and Subsidy. Now comes OBJ, he solved the problem of Telecom by leaving NITEL to die natural death and introduce GSM through liberalization of Telecom or deregulation of the Telecom industry. Today, the value chain and wealth creation of that singular act can be seen and felt. OBJ also invested $16b to revamp PHCN, the obsolete infrastructures, corruption and cartels involvement didnt allow it to work. The ONLY option left was to privatize, sell it and deregulate it like he did in Telecoms, unfortunately, the Labour Union did not agree, because they were being sponsored by the same cartel chopping from PHCN and generator importers. They fought him and he left. OBJ went further to sell the refineries, but Nigerians fought it with Labour union. In comes Yaradua, he didnt even bother with Power, he simply revised the sell of the Refineries after the management lied that they can get it running and perfect within months, today, its 6 years and NOTHING has happened. Imagine if Dangote and Otedola had taken it then, by now, not only will we be buying fuel and diesel at rock bottom price, we will stop importation, subsidy will disappear and new value chain and wealth starts through low cost of running businesses etc. Now comes GEJ, he studied everything, and decided that NO more wasting of time, he cant waste money in the moribund PHCN, he decided to sell it. First he broke it into two parts, generating and Transmission. He went on to privatize it, and deregulate it, sold licenses, set up NERC to be Power Regulators, the same way you have CBN for Banks, NCC for Telecoms, NICOM for Insurance. He generated lots of money from the sale, then paid off the workers and got most of them integrated into the new companies. Now for power to work, they have to change most of the old infrastructures which are not working and this cost heavy investment. Just like when GSM started, it took them 5 years to stablise. Then OBJ gave them incentives like free duty for all equipment being imported and free tax for 5 years. Power companies were finding it difficult to borrow from banks, GEJ has, through CBN, given them a lifeline of about N260b recently. The banks has been mandated to invest in Power and have committed to it. Go round everywhere, infrastructures are being built, just like what happened during the telecom. Regional controllers have taken over. Power is NO MORE IN GOVERNMENT HANDS. Now if it took Telecom 5 years to stablise and we start seeing results, December will make it one year the handover to new power companies was done. Rememebr, this power has been a mess, and for the first time, instead of back and forth and short measures, a sustainable approach has been introduced. He also intend to privatize Refineries next year if he wins, which will guarantee sustainable approach to issues around the utilization of our natural resources in crude, low cost of petroleum products, no more subsidy as we dont need to import again, no more capital flight as wasting our billions of dollars in importation, low cost of running business due to low cos of petroleum cost, more jobs for the teaming youths, other value added services will start just like the Telecom brought about many value added services today. Thus, in nutshell, its good to understand the system, how it works, the factors hindering the smooth take off, pressure groups, the cartels and criminals etc. This is not just about fiam, power comes, these factors must play out. If you have another point, raise it and i will explain.
Posted on: Thu, 23 Oct 2014 15:51:06 +0000
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