By Mohammed Dauda Eibo
The Nigerian power sector was privatized for over a decade now and how has this very crucial sector, the life- wire, an engine room and backbone of every economy globally been faring since the “sham’ called privatization of the power sector?
No amount of money one spent on a dead car can revitalize it into becoming a new one rather, it is a wasted efforts in futility. The FGN’s plans to solarize the Aso-Villa with 10 billion naira worth of Solar installations for steady and uninterrupted power supply means a lot to ordinary citizens. The government that promised to give 24/7 power supply could be telling us “you are on your own- OYO” and Iqwe must hear this!
I come in peace with this narrative essay in order to put the record straight for clarity and comprehensive political coherence of the unnecessary political upheavals of the power sector. Alarming scenario going in that sector presently is the demoralizing nature of its work force. They are apparently unhappy due to administrative malfeasance and the ungodly practices by the management of these Distribution Companies.
Why was the sector privatized in the first place? Does this present dispensation truly understand what is going on in the power sector and the honest need to do the needful for the survival of other economic components?
What is going on in that sector currently, is it in any way better than when they met it?
I mean the so called “Investors in black skin” as some of them know nothing close to the power sector operations as those who know inside-out of the power sector were kicked or booted out.
Now the grandiose squabble and quargmire here the public need to follow up with facts and statistics summing up with Government intent to spend a whooping sum of $23 billion dollars to revitalize a dead sector that its obituary is already been announced for burial.
National Grid in Summary-
Poor maintenance culture,
Lack of Spare parts,
Lack of competent hands and professional people to operate and maintain the system,
Poor Managerial Skills,
Greed and Selfishness.
At Governmental level is corruption and croynism. Self First attitude
Ministers are appointed; not based on competence or skills.
Seemingly, there is no political will to handle the situation.
The power curtail are well entrenched than the Oil Curtail.
The system is on its death bed and I can’t see how it will survive.
A national tragedy is going on in the watchful eyes of the president and can’t be averted.
Here’s why privatization of the power industry failed and why public ownership is needed and needed urgently to avoid losing the entire sector.
This is not an opinion but is a form of bullet points for the president to see and digest. I am saving his time and that of the readers.
Privatization of the power industry in Nigeria is nothing but “Organized Rip-off” by those entrusted with national assets.
The Nigeria power crisis is a product of unacknowledged policy failure and unwillingness of the government to accept the truth.
What we are going through in this power thing is due to disastrous economic policy.
The stated aims of power privatization were to increase efficiency and improve service quality but, it has instead become an exploitative industry.
Nigerians are suffering, the country has become a generator country, rechargeable lamps etc. The cost of diesel is highly prohibitive, industries can’t be run efficiently and cheaply resulting in high cost of products ordinary Nigerians are buying.
Looking at the FGN Budget from villa to federal sectariats to all other organization, you will find billions of naira being allocated for the purchase of AGO, Generators and Generators maintenance. This amount of money itself is a staggering waste.
The current owners (60%) have only succeeded in bringing down the system and by bankrupting it.
These power companies have excelled at maximizing their so-called share holders return at the expense of the Nigerian people who are actually the real owners of the system.
There has been no investment such as new transformers, network modernization and expansion.
The 60% owners have shielded themselves from scrutiny, hidden behind complex financial structures.
The corruption and mismanagement are far worse than the PHCN days.
There was also assets stripping.
Little has changed. Rip-off customer charges have continued.
NCP (National Council on Privatisation), the National Electricity Regulatory Commission- NERC are all aware of these abuses and prefer these than actually to serve Nigerians.
The NCP which supposed to protect the Nigerian people’s interests in collaboration with the regulators keeps changing the goal posts (bonding the sale agreement and performance agreement) in favour of these owners. They have succeeded in mutilating the legal agreements of the sale.
The power privatization has failed. Public monopolies in private hands always lead to abuses and the power industry has shown that in abundance (10years or so) while privatization in some countries has delivered benefits to consumers but in Nigeria it is the reverse.
The power reform was badly designed and the regulatory failings all contributed to their sorry states and are the roots of the many problems.
The above has provided a brief glimpse of the damage done by obsessions with privatization of the power sector. The government has not shown any consideration of the long term consequences or impact on the country. This essential industry needs to be back into public ownership.
Clearly, this critical utility has become an unwitting pawn in political poker games. There is an invisible cartel of politically connected individuals and cabal. The power cabal / cartel are more dangerous than the fuel subsidy cabal and if PBAT has the guts and courage to take them on, why not the power cabal.
It appears to me that the government is hell-bent in doing nothing to save the sector judging from the way it’s transferring the companies from the original winners to banks and first new back to the government through NERC. This is simply wrong and it is like replacing the driver of a vehicle; it does not turn it to a new vehicle.
Whoever advised the government to do this is just being dubious and dishonest and does not know what he is doing.
Mr. President, it is not all doom and gloom. There is a way out of this. You need to think out- of- the box, spare your executive time to listen to people who know the system to understand the challenges facing you. There are professionals who can provide you with a potential template for turning around the power sector.
I want to draw the attention of the president to the fact that the Nigeria power situation has attracted international concern as you can see from the publication by Chicago Tribune of 13th august 2018 – bribes, debts $100 billion lost : Nigeria can’t keep power on.
Another article by a Nigerian online newspaper data hype : Buhari spent 1.3 Trillion Naira on power in six years, yet no light.
The failure of the power companies to do their job and provide the essential service of a functioning power system is a disaster to the whole country. The government cannot put off a proper response to this crisis any longer. Electricity is a resource we use every day and is essential to our lives and wellbeing.
I sincerely pray and hope that during your tenure Nigerians will get light by doing the right thing and you would not be another OBJ or PMB. There are viable and suitable alternative to this power privatization. We can provide details if the government is interested.
Mohammed Dauda Eibo, a Media and Communication Specialist writes from Life Camp Kado, Abuja. Email mohammedeibo2014@gmail.com
