The Nation Newspaper

Tag: DISCOS

  • DisCos not paid N25b, says ANED

    The N25billion which the Federal Goverment said it has paid to the eleven lectricity distribution companies (DisCos), is yet to get to them, it was learnt. The government claimed it has paid N25billion out of the money owed DisCos by the Ministries, Departments and Agencies (MDAs) of government.

    Director of Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), Dr. Sunday Oduntan, said it was untrue that the money had been paid.

    In an interview with The Nation, Oduntan said the firms have not received any money either from the Federal Government or through the MDAs, adding that  the government paid the N25billion to Nigeria Bulk Electricity Trading Plc (NBET), and not the DisCos.

    Oduntan said: “What the Federal Government has done was to net off the MDAs debts. The government has used the debts owed the energy distribution companies to pay NBET, which is the company  buying electricity from the firms. “How can you explain a situation, whereby your debtor paid the debt it owes you to another company, and yet claims it has paid part of the debt that it owes you? This is wrong, hence the decision by the Association to let Nigerians know that the distribution companies have not received anything from the government,”he said.

    According to him, the government and its agencies are yet to fulfill their obligations of paying their debts either in full or in part.

    “The debts owed the power firms by the MDAs are still intact. The government is not precise on when the debts would be paid. The inability of the Federal Government to pay the debts accumulated over the years from unpaid electricity bills, is affecting the operation of the companies. However, we are not complaining. We only want to put the record straight that we have not been paid,” he added.

    The firms, he said, are facing two critical problems in the industry because they are unable to service their debts while at the same time finding it difficult to shop for funds for operation.

    The development, Oduntan said, is making it difficult for the firms to purchase equipment needed for their growth. He observed that many of the DisCos are using obsolete equipment such as transformers, meters, and others, adding that the issue is affecting service delivery in the sector.

    He said the firms’ inability to garner enough funds for operation has resulted in poor skills and job losses, adding that many firms are sacking workers, rationing equipment and recording debts due to the problems in the power sector. He said the country would have improved electricity supply to its citizens if the firms have got enough money for adequate operation.

  • Reps query Minister’s utilization of N22bn without result

    Reps query Minister’s utilization of N22bn without result

    The House of Representatives committee on Power Wednesday queried Nigerian Bulk Electricity Trading Plc over the utilization of N22 billion monthly on gas without commensurate result..

    Subsequently the lawmakers summoned the Minister of Power, Mr Raji Fashola over the violation of the 2017 Appropriation Act.

    In a bid to obtain relevant information, the Committee also summoned the permanent secretary, Mr. Louis Edozien and Managing Director of Transmission Company of Nigeria (TCN) to come along with the Minister.

    The minister is to give details on the activities of the power ministry as well as the level of procurement processes of each project.

    The Daniel Asuquo – headed committee summoned to Minister sequel to his absence at a hearing on the issue yesterday.

    While reacting to the submission of the Minister’s representatives, A member of the committee Toby Okechukwu criticized the indiscriminate injection of fund into the distribution companies by Federal Government.

    “I don’t know whether the acquisition of the distribution companies is worth more than N701 billion. The total capital of these companies may not be up to N701 billion. Yet we are borrowing money to support them and give NBET,” he said.

    Mark Gbillah, another member while doubting the liquidity of NBET and TCN, warned that if drastic action is not taken, the power sector faces imminent collapse in the next six to seven years

    His words: “We are trying to pay for the business of certain individuals at that level of gas and generation. We need to do a forensic study of these gas companies.

    “What are they actually generating? What are we always required to pay them? The generating companies always tell us a mongos figures of what they are generating, and how there’s no transmission capacity, the losses that they experience.

    “We need to start from the bottom up as well from the gas angle. Where are these monies going to? This question goes to the Permanent Secretary. What is the utilization of these funds and the level of generation along the value chain, the operating cycle from GENCOS to TCN and DISCOs?

    “Is this the best model in the world? I think NBET only came to complicate the issues in the centre of the value chain,”

    However, the failure of the permanent secretary who represented the Minister to provide detailed information requested by the committee on unauthorized spendings did not help matters.

    The allegation against the ministry was a source of concern to the lawmakers and the minister and the Managing Directors of the Nigerian Bulk Electricity Trading Company and Transmission Company of Nigeria were expected to furnish the committee with answers.

    As far as the committee was concerned, the ministry had frustrated the 2017 appropriation Act.

    The Chairman of the committee, Daniel Asuquo said that the committee had been mandated by the House to protect the interest of the citizens, adding that that the minister and his Permanent Secretary have breached the law.

    The power sector, he said, is poorly managed with a high level of impunity.

    He said: “We are not seeing the will from the Executive because all we see are the people who just want to put us in debt, debt and debt even without passing through due process, because TCN is a can a worm from our own overview.

    “We need to bring out this to the public for them to know the state of our power, we have parleyed too much.. How much of this can the distribution companies take.”

  • GE states condition for investing in DisCos

    GE states condition for investing in DisCos

    The Management of General Electric (GE) has set a fresh condition for it to invest in the Electricity Distribution Companies (DisCos).

    The power giant is insisting on a sovereign guarantee from the Federal Governemnt.

    The request came at the meeting the GE officials had with the DisCos in Abuja yesterday. GE was said to have been shocked by what it discovered in the books of the power sector.

    The Executive Director, Association of Nigerian Electricity Distributors (ANED), Mr Sunday Oduntola, told reporters during the Electricity Policy Education in Abuja that operators needed funding for the sector to bridge the liquidity gap.

    The theme of the workshop was: Challenges of the Nigerian Power Sector.

    The only way the GE can stake its money in the sector, according to Oduntola, is for the Federal Government to give a sovereign guarantee in case of any infraction.

    He said:  “As at yesterday, we had a meeting with the team of people from the GE. The Head of GE had a meeting with ANED.  He asked to see our balance sheets. As soon as he saw the balance sheets, he said No! No! He said if the government can provide what is called sovereign guarantee, yes!

    “In the case of GE, it happened yesterday. They wanted to know how the sector is doing in terms of doing business. So they are trying to see how they can come in. They have a lot of money to invest. They wanted to know the challenges like the issue of metering, network and others.”

    According to him, the meeting is an ongoing discussion because “they have the money and we need more foreign investors to come in.”

    Oduntola also noted that Nigeria was not conducive for investment even when the power sector was privatised as security of investment always means the sanity of contract.

    He said the business environment in the country is so difficult to the extent that only two out of the DisCos can conveniently pay their workers’ salaries as when due.

    Arguing that the DisCos have injected funds into their business since 2013, he said they have installed a total of 612,552 meters.

    He insisted that the major constraint to investment in the sector is lack of cost reflective tariff since there has been embargo on tariff increase since 2015.

    Oduntola recalled that part of the $1.4billion paid for the Power Holding Company of Nigeria (PHCN) assets was used to pay off workers.

    The ANED spokesman commended the administration of President Muhammadu Buhari, which he said has been more faithful to the development of the power sector than the previous ones.

    He said the reason why some DisCos sometimes reject their load allocation, is when the Transmission Company of Nigeria (TCN) evacuates it where there are no equipment to cope with it.

    He added that the DisCos also reject load allocation when it is wheeled to location that is permeated with electricity theft, yet does not pay for power.

    “It is true that sometimes we reject load allocation. I have the right to tell you where I want my light,” he said.

    He condemned corrupt practices in the electricity market which he said are the handiwork of both staff of the companies and their customers.

    Confirming that the Federal Executive Council has approved the payment of N26billion as the verified Ministries, Departments and Agencies (MDAs) debt, he noted that the Minister of Power, Works and Housing, Babatunde Fashola directed that the money be paid as part of the debt that the DisCos are owing Nigeria Electricity Bulk Trading Company (NBET).

    In other words, he said none of the DisCos received the cash from the federal government.

  • Govt to boost DisCos’ capacity by 2,000mw

    Govt to boost DisCos’ capacity by 2,000mw

    • NERC cuts new connection timeline to 40 days

    The Federal Government is putting in place measures to increase the capacity of electricity distribution companies (DisCos) by 2,000 megawatts (mw), to improve service to consumers.

    However, there are indications that the DisCos are not comfortable with the arrangement. The Federal Government intends to make direct investments in the distribution arm of the power supply value chain through independent investors. But DisCos are demanding that the government should channel such investments through them, fearing that the plan will impinge on their operations and negatively impact returns on their investments.

    These concerns, among others, are contained in a letter dated September 27, 2017 entitled: “Federal Government of Nigeria’s Initiatives in the Electricity Sector and the Impact on Electricity Distribution Company Activities.” It was jointly signed by the DisCos and addressed to the Nigerian Electricity Regulatory Commission (NERC), with a copy sent to the Minister.

    Power, Works and Housing Minister, Babatunde Fashola, who disclosed this at the 20th monthly power sector operators’ meeting in Owerri, Imo State, said the substance of government initiatives, which prompted the letter by the DisCos, could be summarised as: provision of meters to consumers through licensing of meter suppliers; provision of more power to consumers through licensing of eligible customers; and provision of independent dedicated power to universities.

    Others include promotion of the use of solar power through mini-grids; and expansion of the distribution network of DisCos so that they can take on additional 2,000mw of power now available for supply

    He said:“We are also making promising progress in recovering debts due from international customers and you will be notified of how much has been received when the appropriate accounts confirm that they have received value for the credits we have been notified of.

    “It is against this background that I now move to the challenges, which we still have to overcome; the more pressing of which is how the DisCos can quickly increase their capacity to take power and distribute to the consumers.”

    Fashola had, at a similar meeting in Lagos, last month, said: “Today, we have more power available to go on the grid over 6000Mw because generation and transmission have improved. The capacities are above what the Discos can carry. So, they have to play catch up.”

    He commended the DisCos for the decision to channel their complaints to NERC through a jointly- signed letter. “This is a welcome departure from the previous order and it is to be encouraged,” he said, adding that without doubt, the government’s initiatives are targeted at improving service to the people. “In your letter under reference copied to me, you expressed concerns about the impact of these initiatives on your businesses,”he said.

    He continued: “It is not my understanding that you oppose them, which is commendable. It is my understanding that you fear that you will lose some income or some customers if government proceeds; and on the question of meters, you seek to have technical compatibility with what the licencee will operate.  In respect of possible investment in distribution equipment you seek that government should route the investment through the DisCos.

    “Understandably you are concerned about investment recovery and in your views, the solution is a tariff review. While your concerns about business viability, financial stability and cost recovery are well understood and indeed, supported by the Electric Power Sector Perform Act of 2005 (EPSRA), which government will respect, I must point out that government’s focus is also strong on the issue of service to the people.There must be a balance somewhere in the middle.

    “As far as the promotion of solar and other sources of independent power are concerned, please note that not only are they supported by the ESPRA, they are consistent with our Paris Climate Change Agreement Obligations and with emerging global practice. DisCos have nothing to fear about solar. It is a space in which they are entitled to play, but in which they cannot exclude others from playing.

    “The ESPRA did not contemplate a monopoly for any licensee unless it is expressly stated in the license. As for channelling investment into distribution assets through the DisCos, government has not yet taken a position on what the best way forward will be.

    “However, the government is clear that a solution must be found quickly to the inability of DisCos to take about 2000Mw of power that will imminently increase as we get more incremental power.

    “But the point that must be made is for all of us to remember that, government is a 40 per cent shareholder of the DisCos (on behalf of the Federal, State, Local Governments and workers) and therefore, has a self-benefitting interest in the wellbeing and efficiency of the DisCos.”

  • MDAs electricity debts will be paid – Fashola

    MDAs electricity debts will be paid – Fashola

    The Minister of Power, Works and Housing, Babatunde Fashola, said on Tuesday the Federal Government would pay the Ministries, Departments and Agencies (MDAs) electricity debts by setting it off against debts owed the Nigeria Bulk Electricity Trading company (NBET) by the Electricity Distribution Companies (DisCoS).

    He said the Federal Executive Council (FEC) has approved the payment of the verified sum of N25.9b the MDAs owed the DisCos.

    The minister stated these at the 20th monthly power sector stakeholders’ meeting in Owerri, Imo State.

    He said: “In the last month also, specifically on Wednesday 4th October 2017, the Federal Executive Council approved the verified sum of  MDAs debts totalling N25.9billion, and its payment by setting it off against the debts owed by the DisCos to NBET.

    “We are also making progress in recovering debts from international customers and you will be notified of how much has been received when the appropriate accounts confirm that they have received value for the credits we have been notified of.

    “You will be receiving official communication of how these have been applied to reduce debts owed by DisCos to NBET.”

    On investment recovery, Fashola added: “Understandably you are concerned about investment recovery and in your views, the solution is a tariff review.”

     

     

     

     

  • GenCos to NERC: Add stranded 2,000MW to capacity 

    GenCos to NERC: Add stranded 2,000MW to capacity 

    …Commission holds consultations on MYTO frequency

     

    The electricity Generation Companies (GenCos) Monday urged the Nigeria Electricity Regulatory Commission (NERC) to classify the stranded 2,000Mega Watts as part of the available generation capacity in the Nigerian Electricity Supply Industry (NESI).

    The commission, according to its presentation on the review of the Multi-Year Tariff Order (MYTO) methodology by Senior Manager, Market and Rate, Abbah Tera, takes generation capacity as one of the criteria for review of tariff.

    Responding to the presentation, the Executive Secretary, Association of Power Generation Companies (APGC), Mrs. Joy Ogaji, said that that the stranded capacity is not utilized does not mean that it is not produced by the generation companies.

    She noted that there is enough gas but the only constraint its cost, stressing that the GenCos should not suffer owing to the stranded power.

    Her words: “We are not saying we don’t have enough generation. The only constraint that Nigeria is having is the cost of gas. We have over 2,000MW sitting. The over 2,000Mw should be treated, it is available. GenCos should not suffer for it . In line with the review NERC should capture the stranded capacity.”

    Some of the stakeholders urged the commission to privatize the Transmission Company of Nigeria (TCN) since it is obvious that the Federal Government which operates has proven inefficient.

    The Commissioner of Engineering Performance and Monitoring, Prof. Frank Okafor, however explained that the cost of funding the transmission network is too enormous for a private company to raise for the operation of the system.

    “It will be difficult to get investors that will fund the TCN,” he submitted.

    Besides, he said that it might be difficult to secure the right of way for the network since it transverse so many states of the federation.

    According to him, government is borrowing from multilateral financial agencies to expand the grid since the amount of power delivery is not sufficient to raise the required revenue.

    The commission maintained that it has met with the TCN and DisCos in order to deliver the stranded power to consumers.

    Owing to the appreciation of stranded generation, NERC said that Minister of Power, Works and Housing, Babatunde Fashola has directed it to sell power to eligible customers.

    NERC however informed the stakeholders that it has already got the go ahead to enact a regulation that will encourage willing seller and willing buyer of electricity.

    NERC Vice President pointed out that the event was not for a tariff increase but for the commission to get stakeholders’ inputs on (the frequency of the review) how often the review should be carried out.

    The stakeholders were also divided on whether the tariff should be reviewed bi-annually, monthly or yearly.

    NERC carries out a major review tariff review every five years and minor review every six months.

    But speaking representative of Mainstream Energy, Solutions Limited, Musa Abba Bajoga, asked the commission to following the global practice to “do what is done universally.”

    The President Hotel Owners Association of Nigeria, Dr. Ezeh Udeh told the commission to consider a yearly review since hotel rates are not reviewed monthly and that any price that rises in the country hardly falls.

    Network of Electricity Consumers Advocacy of Nigeria (NECAN), Tommy Akingbogun, told the commission not to use its rate to kill investors.

  • Another bailout for Discos?

    SIR: The Minister of Power, Works and Housing, Babatunde Fashola, at a forum in Kano recently expressed government’s readiness to give N39 billion loan to Distribution Companies (DISCOs) to meet electricity meter supply. He was quoted to have said the fund was meant to help them bridge the over 10 million metering gap.

    The last time one checked, neither the federal government nor the ministry of power was listed as a commercial bank where individuals or companies take loans. The idea of assisting private businesses to flourish with government funds when several unfinished people-oriented government projects dot all the nooks and crannies of Nigeria is a disservice to the nation – tantamount to robbing Peter to pay Paul.

    Before privatisation, the proponents sold a utopian gold-plated private sector where only the new companies have the technical-know-how and magic wand to ensure uninterrupted power supply without due consideration to their human and financial capabilities.  Do not forget that the companies were even dashed out to cronies as political patronages and also at ridiculous prices. Competences were utterly sacrificed on the altar of mediocrity in the selection processes of companies. Did Aliko Dangote grow his business empire by seeking for undue favour or running cap in hand to government for loan?

    What should bother government more is the level of disregard for extant rules guiding privatisation by the operators not assisting them with loans. The Discos were given the mandate to meter existing customers six months after take over. They are in breach of that mandate after four and half years and none was sanctioned. How many distribution companies have fulfilled their payment obligations to Nigeria Bulk Electricity Trader (NBET)? The latest Nigerian Electricity Regulatory Commission Q1 2017 Report on “DISCOs Performance” scored Ikeja Distribution Company 54% out of sundry key performance indicators employed in appraisal while Kaduna Distribution Company scored 5.8%. The government of former President Goodluck Jonathan gave out a whopping sum of N213 billion intervention fund in 2015 for the same reason adduced by Fashola without any commensurate improvement or result. What internal control mechanisms have government and the ministry of power placed to ensure checks and timely reimbursement?

    The question is: Do DISCOs deserve another government loan? From the onset, the ideal situation would have been to allow those who took over the existing power assets to invest from the scratch in brand new companies of theirs to compete with NEPA or PHCN.

     

    • Sunday Onyemaechi Eze,

    sunnyeze02@yahoo.com

  • NLC kicks against proposed N38b bailout for DisCos

    NLC kicks against proposed N38b bailout for DisCos

    The Nigeria Labour Congress (NLC) has faulted the Federal Government’s decision to offer N38billion bailout to electricity distribution companies (DisCos) for the procurement of pre-paid metres, describing the move as ill-conceived.

    Speaking with The Nation, its President, Comrade Ayuba Wabba, said it was wrong for the President Muhammadu Buhari-led government to offer a lifeline to the DisCos when there were no signs of improvement in the power sector, despite that the government had pumped N660 billion into it.

    He said rather than commit more funds to the DisCos, the Federal Government should undertake a holistic review of the privatisation of the power sector undertaken by the last administration.

    Wabba wondered why the Federal Government would consider committing N38 billion of public funds as bailout to the DisCos.

    He said the problem of the power sector had nothing to do with the lack of resources as the government had committed N11 trillion to the sector reforms without achieving the objective of providing stable power supply in the country.

    Wabba said the major issues affecting the country were accountability, transparency and others relating to governance.

    The NLC boss decried the situation whereby Ethiopia, which spent $10 billion to build its power plants, was exporting power to neighbouring countries whereas, Nigeria which had spent more than that had nothing to show for it with nobody being arrested for waste of public resources.

    He said: “One of the things affecting our country today is the issue of accountability. Every other issue can directly or indirectly be linked with the issue of good governance. The state level is even worst and that is our challenge.

    “Take, for instance, in the power sector, I was really amazed when, yesterday , I was going through some of the issues we need to campaign on and I realised that the present government has already committed about N660billion in form of intervention to a sector that is already comatose without corresponding inputs and attendances. Even on the issue of metering, they are proposing to give a bailout to the DisCos.

    “It is obvious that we are going in the wrong direction. It has been made clear that it is not about resources. If in about 16 years, we have so far committed about N11 trillion to the power sector reforms and yet, what we have day in day out is numerous challenges of lack of power. Even within the city of Abuja, the DisCos are busy disconnecting street lights.

    “The real issue here is actually the issue of good governance, transparency and accountability. We saw the example of Ethiopia. With less than $10 billion, they have built a power plant that is now generating power and even selling to neigbouring countries.

    “But in the context of Nigeria trillions of naira has been committed and nobody is asking questions and we are still committing public resources.”

    The NLC chief said if the electricity firms lacked the capacity to deliver, the process should be reversed noting that it would not be too late to do so.

    He said it was regrettable that while South Africa was already looking beyond 40,000 megawatts (Mw), Nigerian was oscillating between 5000Mw and 6000Mw.

  • No to bailout of Discos

    SIR: I wish to draw your attention to the travails the former members of staff of the defunct Power Holding Company of Nigeria (PHCN) are going through due to non-payment of their severance package. As I write, over 5,000 have not been paid a dime, terminal benefits, gratuity and other entitlements. Even those that were paid, up till this moment, their terminal allowances such as leave, housing, annual productivity bonus, 16 months arrears, etc. have not been paid as agreed before the eventual takeover by the so-called un-identified investors. The former staff are dying on daily basis as a result of man’s inhumanity to man. In addition, over 1,000 death benefits have not been paid.

    If I may ask: Is there any visible difference between the pre and post privatization? Are we not still hovering between the traditional 4,000MW plus? While South Africa and Egypt, with less than 100 million in population are generating over 60,000MW. What an irony!

    When you appointed Babatunde Fashola as the Minister of Power, Works and Housing, everybody was jubilating, thinking that light has come at the end of the tunnel. With due respect to the honourable minister, I think the only visible achievement he has recorded so far is the tariff-increase. Maybe the ministry is too big for him to handle. The minister would have written his name in gold if he had vigorously pursued the payment of the entitlements of these helpless, shortchanged Nigerians to the fullest.

    May I appeal to you to use your good offices as a matter of urgency to compel the authorities concerned to pay these people their severance/terminal benefits. Since there is no going back on the privatization exercise, according to Minister Fashola, there should be no going back on the payment of their entitlement period!

    Lest I forget, I was made to understand that the federal government is working towards another bailout for the Distribution Companies (DISCOs) for the metering of electricity consumers. It is high time you break your silence and ask questions on the happenings in the power industry. Notable Nigerians like the former Vice President, Atiku Abubakar, Senate President Bukola Saraki, Speaker Yakubu Dogara and business mogul, Aliko Dangote have all lent their voices to this illegality. In February 2015, the Central Bank of Nigeria (CBN) gave loans to the GENCOs and DISCOs. The apex bank disbursed a total sum of N182.6 billion to Nigerian Electricity Market Stabilization Facility (NEMSF) and barely some days later, it gave another sum of N39.53 billion to the second batch of beneficiaries.

    These are interventions from the apex bank which I expect the CBN governor to comment on, whether it is legal, logical and acceptable norm to sell a so-called non-performing company to someone and later give the person money to help run the company?

    CBN governor Emefiele forgot to tell us what the money was used for, and what necessitated the so-called intervention. Your Excellency, please, for history and posterity sake, do not approve any further bailout for the companies. After all, they promised to invest their monies in the companies. So, where are the so-called investments?

     

    • U.S. Ladan (Snr),

    Jos.

  • You can’t spend public money to bailout DisCos, NLC tells Fed Govt

    You can’t spend public money to bailout DisCos, NLC tells Fed Govt

    THE Nigeria Labour Congress ((NLC) yesterday accused the Federal Government of wasting over N11 trillion on the power sector reform.

    It criticised plans to spend another N38 billion as bailout to Electricity Distribution Companies (DisCos) to procure prepaid meters.

    NLC President Ayuba Wabba, who spoke with reporters in Abuja, said it was obvious that the power sector reform embarked upon by the government has failed.

    But, he said the government was still bent on pumping more money into the sector, adding that while countries like South Africa were thinking about producing above 40,000 megawatts of electricity, Nigeria was still celebrating 5000 megawatts.

    He said since inception, the present government has spent about N660 billion in form of intervention in the power sector, adding that despite claims that they have paid over N500 million as electricity bill for public institutions and streetlights in Abuja, the DisCos were still disconnecting the streetlights to conserve energy to be sold to others.

    He said: “One of the things affecting our country today is the issue of accountability. Every other issue can directly or indirectly be linked with the issue of good governance. The state level is even worst and that is the bane of our challenge. Take for instance, the power sector.

    “I was really amazed yesterday, when I was going through some of the issues we need to campaign on and I realised that the present government has already committed about N660 billion in form of intervention to a sector that is already comatose without corresponding inputs and attendances.

    “Even on the issue of metering, they are proposing to give a bailout to the DisCos. It is obvious that we are going the wrong direction. It has been made clear that it is not about resources.

    “In about 16 years, we have so far committed about N11 trillion to the power sector reforms and yet, what we have day-in-day out is numerous challenges of lack of power. Even within the city of Abuja, the DisCos are busy disconnecting streetlights. I am aware that during the launch of prepaid meters, the Federal Capital Territory (FCT) administration informed us that they have committed about N500 million in paying liabilities for power to public institutions, including streetlights.

    “But they are busy disconnecting the streets because once they do that, they thought that they will be able to use the power being saved from there to service others.”

    Wabba added: “We cannot continue like that because no country can make progress, if we don’t have stable power supply. We made it very clear from the time we started this reform that it was going to fail.

    “Many countries of the world, where those processes have failed were cited and those countries have owned up that the process has failed. So, let us review the process and take a new direction. It does not matter how long you have gone on the wrong direction.

    “If you don’t get your direction right, it is obvious that you will not be able to have the benefit of having stable power supply needed to drive our industries and the process of industrialisation. The process of diversification can only make meaning, if we have steady power supply. We must situate this within the context of our challenge as a country. It is not about money.”

    He queried: “How can a government that is saying we are in a recession still advance from public money N38 billion to DisCos as bailout to look for meters. This is a public enterprise because these companies have already been sold. If they don’t have the capacity and the resources, let them bailout.

    “I think it is time the process is reversed. If it is not reversed, we will continue in the  wrong direction because till now, we have not be able to attain 10,000 megawatts. We are still celebrating the attainment of between 5,000 and 6,000 megawatts when a country like South Africa is looking beyond 40,000 megawatts.

    “The real issue here is actually the issue of good governance, transparency and accountability. We saw the example of Ethiopia. With less than $10 billion, they have built a power plant that is now generating power and even selling to neigbouring countries.”