Formulate laws that attract investors into IPP – MAN

By Charles Okonji

Owing to persistent power problems experienced over the years, which seems to have defiled every known solution and approach of the government, the Manufacturers Association of Nigeria (MAN) has advised the Federal Government to formulate policies that will attract massive investment into Independent Power Project as it is the last resort that would rescue the country from the lingering power crisis.

The Chairman of Non-Metallic and Mineral Sectoral Group of MAN, Mr. Afarm Mallinson Ukatu, gave this advice in an exclusive interview with The Nation recently in Lagos.

According to Ukatu, formulation of policies that will attract investment in IPP is the only way to encourage economic growth, stressing that light plays a major role in economic development.

He said, “Privatise or go into partnership with individuals or companies, it has worked for us in the past, it can still work out for us. I still do not know the reason why the government still wants to hold on to power sector which it cannot manage or control effectively.

“The government should do exactly what it did in the telecommunication sector. The telecom sector used to face epileptic service like what it is today with the power sector, but a paradigm shift in policy, followed with strict enforcement resulted to progress recorded in the sector. So what stops us from fully privatizing the power sector?

“They should come out with policies and be transparent so that what happened in the telecoms sector would happen also in the power sector. The government should out-rightly sell the power sector so that we can get result. So we are asking and pleading with the government to help in putting in a policy that will encourage private investors.”

Read Also: Foreign investors still jittery over economic uncertainties

He pointed out that Nigeria is rich in natural gas, explaining that the liquefied natural gas that has been grossly underutilised by the country since inception, stressing that LNG can provide answer to the power sector.

He said, “Today MTN and other telecoms service providers are paying various kinds of taxes and royalties to the government and the sector has generated millions of direct and indirect jobs. MTN, Airtel and other cellular companies are doing so well and we don’t have issue of telephone in Nigeria as today, they should come out with the blueprint to commercialise the power sector and take it to next level. The operators of GSM have proven that when the right things are done, we will achieve result, competitions are there. Why can’t we experience the same thing in the next two years if the sector is given out to the private sector to manage? If this is done, this light issue will be a story of the past. Competition will set in, prices will drop immediately, there will be 24 hours power supply, because you have alternative to switch to where you want if the one you are using is not performing.”