The Senate has opposed ban on importation of generators. This development has helped in diffusing the notion that generator importers are behind the problems in the power sector. Also, the development has brought to the fore the need to fix the sector to boost the economy, writes AKINOLA AJIBADE.
Penultimate week, the Senate rejected a motion which sought to ban the importation of generators. The rejection, which was announced by the leadership of the Senate, has helped in disabusing the minds of many who thought that importers of generators were fuelling the crisis in the power sector.
Raised by Senator Chukwuka Utazi of Enugu North Senatorial District, and supported by Senator Francis Fadahunsi from Osun State, the motion was turned down by the Senate for lacking credibility, more so that the accusation that generator importers were stifling initiatives in the power sector was not true.
The Senate President, Ahmed Lawan, called for a vote voice on the issue and, thereafter, asked the House to set up a committee on the matter and report their findings in the next four weeks.
Prior to this, there were complaints from various quarters regarding importation of generators into Nigeria. While many had accused importers of generators of conniving with power sector operators to frustrate attempts at resuscitating the power sector, others did not, as they see importation of generators as a business, which Nigerians can venture into, provided the importer meets the requirements as laid down by the Federal Government.
While this lasted, controversy has continued to trail the importation of generators in the country with accusing fingers being pointed at stakeholders especially business operators and government officials.
To downplay the issue and further redirect attention to the sector, the Senate opposed the motion that sought to ban importation of generators into the country but called on the government to fix the power sector, which has not been able to provide stable power for six years after it was privatised.
Industry observers were of the view that the sector lacked enough infrastructural facilities, urging stakeholders including the Federal Government to help in providing facilities in the key areas of the sector – generation, distribution and transmission.
Improvement in transmission
The Federal Government is wholly in control of the transmission segment of the sector, a development, which has informed the decision of many Nigerians to advise government on the issue. A senator from Cross River State, Mr. Gershon Bassey, urged the government to replace the old transmission facilities with the new ones, adding that the measure would help to fast-track the growth of the sector.
According to him, the issue of developing transmission infrastructure is key to the growth of the nation’s power sector, adding that when the Federal Government improves on the electricity transmission mechanism, the sector would be better for it.
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Nigeria’s electricity transmission facilities are not strong enough to take large volume of energy to the 11 power distribution companies (DisCos) operating in the country. When this happens, DisCos would not be able to distribute power to the offices and homes, a development, which has hindered many Nigerians from accessing power for use.
The Transmission Company of Nigeria (TCN), Bassey said, does not have the capacity to transmit huge volume of electricity that is being produced by the power generation companies (GenCos).
Presently, the industry boasts of installed capacity of 12,522 megawatts (Mw) of electricity. Out of this, TCN can only wheel 7,500Mw, a figure, which is too small to promote efficiency in the sector. It is on this basis that Bassey advised the Federal Government to build on the existing infrastructural framework inherited from past administrations in order to record growth in the power sector.
Also, the Founder, Change Partners International, Mr Arachukwu Okafor, advised the government to invigorate the transmission segment of the industry, stressing that the development would help in promoting efficiency in TCN. “Issues such as low capacity of transmission equipment would become a thing of the past when government focuses more on purchasing new equipment for TCN,” he said.
Federal Government, he said, would not even think of imposing ban on the importation of generators once it is able to fix the sector. Generator importers, Akachukwu said, would naturally leave the business once they realise that they do not have people to sell generators to any longer.
Manufacturers’ reactions
The President, Manufacturers Association of Nigeria (MAN), Mr. Mansur Ahmed, urged the Federal Government to put in place measures that would help in accelerating growth of the sector. He said the issue of returning the sector to productivity is inevitable in order to achieve the growth of the economy.
According to him, the government through the Senate can ban importation of generators and leave those manufactured in-country unbanned, arguing that it is important to fix the sector in order to grow the economy.
Ahmed said: “The ban on importation of generators as contemplated by the Upper Chamber of the National Assembly should not be made to affect a range of generators that are being assembled or produced in Nigeria. By so doing, the government is helping to develop local content policy in Nigeria. Invariably, the government is boosting production activities in the country. Larger generators used in powering industries should not be affected by the ban if the Federal Government intends to grow the economy.”
Gas to power initiative
This scheme must be run in such a way that its goals of providing gas to thermal plants unhindered would be realised, Akachukwu said, adding that Nigeria has gas in abundance as it is one of the largest producers of natural gas in the world.
He said the country’s problem lies in the area of transporting gas to thermal plants for generation of electricity. According to him, the government alongside other stakeholders need to ease the process of transporting gas to plants in need of it.
He advised stakeholders in the value chain to attach more importance to what is known as Collocation, in industry parlance. He said through this means, gas plants would be located around the power plants, with a view to ensuring accessibility of gas.
Similarly, a source who does not want to be mentioned, said shortage of gas is the main problem of the power sector. He said the power plants in the country are not without gas problem. He said the scarcity of gas in the sector has resulted in lack of activities in many of the plants
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