POWER SECTOR REFORM—LIGHT AT THE END OF TUNNEL Once up on a time, someone made a joke that “...In the beginning, when God made the pronouncement; “Let there be light”. God did not have Nigeria in mind’’. Can one then conclude that Nigeria’s ambition in achieving nationwide electrification since 1896 is being frustrated by this divine omission? The need for power sector reform in Nigeria was prompted by gross insufficiency in power generation and distribution. As a result, power outages and total absence of electricity is many places across Nigeria are common, leading to under-development, high unemployment and poverty levels. In the year 2000, the Federal government adopted a holistic approach of restructuring the power sector and privatising its business units unbundled from National Electricity Power Authority - NEPA (Now-PHCN). This aims to encourage private sector investment particularly in generation and distribution of electricity products; improve efficiency and performance; minimize government involvement; break monopoly of PHCN and pave way for the entry of Independent Power Producers (IPPs). Many countries of the world allow vast array of stakeholders that provide services through electricity generation, transmission, distribution and marketing. The electricity sector also includes regulatory institutions. Allowing many players in the industry paves way for competition, improved service delivery, industrialization and increase employment opportunities. South Africa, with a population of about 38 million generates electricity capacity of 48,000 megawatts and has reserve of 8000 MW. United States of America with a population of over 310 million generates electricity of about 1.05 million mw. Nigeria with a population of about 160 million recently attained generation capacity of just 4,234 mw. Doing a comparative analysis, our total generation capacity does not measure up with the reserves of these countries. However, the USA has main energy sources from Thermal, Fossil, Nuclear, Wind and Hydropower. Nigeria has two main sources – Hydropower and Thermal. Power generation level therefore depends on rainfall and gas supply. (Hydroelectricity mean electricity generated through the use of gravitational force of falling or flowing water while thermal is gas). This explains why we have more electricity supply in rainy reason than in dry season. Report shows that 31% of the 4,234 MW generated and put on the national grid does not get to consumers due to factors like sub-standard equipment, poor maintenance culture etc. I would like to commend the present administration on the deserved attention and energy dedicated to achieving uninterrupted power supply in Nigeria, i.e. energy sufficiency. This will drive our industrialisation ambition, address short-fall in value chain as well as improve quality of living. The set-up, mandates and modest achievements of NDPHC, NIPP, NERC and NEBTC cannot be underestimated. THE ROAD SHOW: The on-coming road show is a major mile stone in the history of Nigeria’s electrification goal. This outing which begins in June 4th through to June 27th 2013, will span through four major cities namely—Lagos, London, Honk Kong and New York. The essence is to sell completely the 10 brand new power generation plants built by the National Integrated Power Projects (NIPP). This excludes the PHCN plants sold through succession companies after the unbundling into generation, transmission and distribution. We all know that payment of 25% initial bid price by ten generating and five distribution companies has pulled through and agreement signed. Despite these achievements recorded, some critical milestones in the sector are behind schedule. In project management, timing and deadlines are of essence. Having read and reflected on the issue at stake, I make the following suggestions: The road map should make provision for the surge of new demands when privatisation is completed and infrastructure improves significantly. For instance, some companies that never bothered to connect to the National grid and 40% of Nigerians who are not connected to power. The roadmap should be evaluated and reviewed regularly. Project sites should be visited at intervals to ensure that the job done by the contractors measure to international best standard, and on target. The reform should make ensure that monitoring and standardization in projects design, execution, and equipment meet international standard for effectiveness and efficiency. I totally support the spirit of the power sector reform presently happening in our country. We can all attest to the fact that constant power supply underpins every developed and developing economy. Any nation that suffers from epileptic energy supply will surely be afflicted with stunted development and risk losing potential investors. Let Nigerians pray for a successful outing of the on-coming road show. I can really see light at the end of the tunnel. SINULO UDE.
Posted on: Thu, 06 Jun 2013 06:23:44 +0000
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