The federal government has been advised against proposed sale of five of the National Integrated Power Projects (NIPPs) as this move will be counterproductive to government’s efforts at building critical national infrastructure.
A public-spirited group, The Future Group (TFG) called for a halt in the proposed sale of five of NIPPs, noting that it is a bad move that would further plunged the power sector into deeper crisis, injurious to the economy and the Nigerian populace.
In a petition signed by Chairman, The Future Group (TFG), Patrick Philip, the group drawn the attention of the federal government and the general public to the dangers of the sales.
The group noted that the NIPPs were established in 2004 as an intervention aimed at improving government funding in the critically ailing electricity sector. However, 18 years past the project launch, there are contending conversations surrounding the federal government’s proposed sale of five NIPPs.
“Insufficient electricity supply has always been an issue in Nigeria, inhibiting the development of the country’s industries and overall economic growth. In 2004, President Olusegun Obasanjo’s administration launched the NIPP to address the challenge of power generation specifically. The project’s objectives also included curtailing the immoderate gas flaring from oil exploration,” the group stated.
While noting the objection of the House of Representatives to the sale of the five power plants located in Geregu, Omotosho, Olorunshogo, Calabar and Benin-Ihovbor, through the Bureau for Public Enterprises (BPE), which has as of 2022 gulped about $7.875 billion, it, however lamented that; “the federal government decision to sell 25 key national assets, particularly the five NIPPs has been one bitter pill very difficult for Nigerians to swallow.
“While the country is still grappling with epileptic power supply despite several billions so far sank into the power sector, it is totally distasteful for a government to contemplate selling such critical infrastructure now.
“The consequences of such sales on the country and Nigerians far outweigh its benefits.
“Almost eight years (2014) after the privatisation of the power sector, there has not been any visible improvement in terms of power supply, expansion or investments by the new owners of DisCos and GenCos.
“A dime has never been declared as profit for government’s 40 per cent asset ownership in the privatised companies till date. It has been a pitiable tale of ‘private gains, public losses’.
“Yet the federal government rather than make this companies work effectively by demanding probity and accountability, is lamentably determined to discard another set of critical economic assets, with a flimsy and brazen reason to fund 2023 budget,” TFG stated.
TFG lamented that the privatisation arrangement of 2014, from the beginning was designed to fail Nigerians but profit a few powerful interests in the country including politicians, expressing concerns that the same way, will go the NIPPs if the federal government is allowed to sell them.
According to the group, if the nation continues to sell national assets to fund budgets, soon, it would be left with no assets because it would have sold everything over time.
The group also noted the desire by BPE to dispose these assets, is not driven by economic gains to the country but to satisfy the wish of deep-seated interest. This is even as the group faulted the pre-qualifying process for selected bidders for the assets, stating that the process was tinted.
While noting the objections to this sale by other well meaning Nigerians and groups such as the electricity consumers and workers in the power sector, TFG advised that if at all that the federal government insist on their sales, that this is not the right time to do so rather it should be put on hold until after the 2023 general elections and all objections raised by Nigerians are satisfactorily addressed.
“We want to particularly implore the National Assembly to suspend the sale of the five NIPPs and other assets till third quarter of 2023 to avoid the pitfall of diverting proceeds from sales to election funding instead of re-investing into the power sector,” TFG stated.