Tag: Nnaji

  • DisCos require $7.7b to fix assets,  says Nnaji

    DisCos require $7.7b to fix assets, says Nnaji

    • Urges govt to relinquish its 40% stake

    The 11 electricity distribution companies (DisCos) need to invest additional  $7.7billion to upgrade their assets to provide the services required of them,  the former Minister of Power, Prof Barth Nnaji, has said.

    Nnaji, also Chairman, Geometric Power Limited, said each investor would need at least $700 million, saying they require investment to the tune of seven times the cost of the purchase of the assets.

    The former minister, who was the keynote speaker at the Natural Gas Business Forum organised by the Nigerian Gas Association (NGA) in Lagos at the weekend, advised the Federal Government to surrender its 40 per cent equity holding in the DisCos, a measure he said, will make the power sector efficient.

    In his words: “I think the intention of the privatisation is to take the generation and distribution arms of the power sector out of government’s hands. But it is intended that those who have taken the assets should be able to invest in the assets, as the government on its part should have the will to ensure what it promised distribution companies will get done so that the distribution should hold them accountable to the agreement so made.

    “The agreement is that the government will give you these assets for a specific value, not a bided value but you should reduce losses – average technical, collection, and commercial losses, to a certain number that you bided for. But to do that requires a lot of cash to invest in the network, as well as the commercial aspect of the business, such as metering. If this is not being done, that’s a problem.

    “On the side of government, there must be a cost-reflective tariff in place. This means that the cost associated with the business is what is paid. The business of power is what government has to be sensitive about. Nigerians pay low value in comparison to other parts of Africa in terms of power. We have to decide as a country whether we want power or darkness.

    “But I say the cost of darkness is infinite while the cost of power is finite, and we should have the will to do something about cost-reflective tariff, otherwise, nobody will come here to invest and it’s not just mere talk’’.

    Nnaji warned that people will only come here to invest when there is cost-reflective tariff in place. “Cost-reflective tariff is what distribution companies want from government and hold on to, as a reason. After that the DisCos have to be held to deliver.”

    On the government’s 40 per cent stake in DisCos, Nnaji said: “The Federal Government should liquidate its position and very soon too. Government was supposed to use it (its stakes) to ensure that the distribution companies would perform, but in a case where you now have government people being on the board, board members will not be able to take decision you imagine will happen. It is not just correct for them to operate like that.  Government needs to quit along the line.’’

  • Why Nigeria’s power is not attractive to investors, by Nnaji

    Why Nigeria’s power is not attractive to investors, by Nnaji

    Harsh operational environment and regulatory challenges are the chief reasons why Nigeria’s power sector is not attractive to investors, former Power Minister Barth Nnaji, said yesterday.

    Nnaji, Chairman of Geometric Power Limited, was the keynote speaker at the Natural Gas Business Forum organised by the Nigerian Gas Association (NGA) in Lagos yesterday. The conference was with the theme: ‘Embracing new realities: Resetting our gas to power industry.’

    He said the Federal Government had not addressed major issues that would guarantee return on investment, citing non cost-reflective tariff as one.

    He said a power summit in Copenhagen, which attracted key industry operators and investors from across the world, the participants at a special session on Nigeria, said they were not willing to make investment in Nigeria’s power sector, citing several challenges.

    According to Nnaji, among the fears expressed by the international investors include lack of cost reflective tariff, gas supply constraints, poor transmission network, non-credit worthiness of distribution companies (DisCos) over leveraged power assets, value chain misalignment and lack of will to enforce agreements.

    Evaluating the issues, the former minister said many projects had been stalled due to finance constraints and tariff issues. He said tariff must reflect currency movement. “There must be attachment of tariff to currency movements and adjustments must be done, and tariff review will help DisCos to recover costs and pay for gas,” he said.

    He also noted that lack of industry deregulation and absence of proper legislation had discouraged investment because it is only deregulation that would allow investors to consider investment in gas production and transportation.

    Nnaji said government does not have the funds to put the transmission network in proper shape. He advised government to consider concessioning the transmission network, which he said should be broken into segments but properly interconnected, adding that the DisCos were facing serious challenges because the technical aspect of the system was still bad leading to 50 per cent of inefficiency in the sector.

    According to him, the investors in the distribution sector borrowed money to buy the assets but did not invest in other supporting infrastructure to make the chain function effectively. “We can reduce losses by investing in technical areas and also there is lack of commercial knowledge among government functionaries on how to do agreement, and again the country lacks the will to enforce agreements,” he said.

    The former Minister of Power also called for the overhaul of the country’s transmission network to address energy leakages. The overhaul would help to boost effective energy evacuation to distribution companies. According to him, transmission network is a major challenge as wheeling power out to distribution companies remains a constraint.

    He urged the government to ensure stable transmission infrastructure before expanding the national electricity generation capacity to 10,000 megawatts (mw). Building generation capacity on weak transmission infrastructure would result in total collapse or destruction of the whole structure. Currently, power generation oscillates between 2,500Mw and 3,500Mw, he said, adding that most of the generated power could not be evacuated due to weak transmission lines.

  • FIBA Africa Zone Three championship: Customs BC will be ready-Nnaji

    Despite still waiting for approval that will enable his teams take part in the FIBA Africa Zone Three Club Championship in Lome, Togo, Nigeria Custom Basketball coach, Scott Nnaji has said his team will be ready for the championship.

    Customs Basketball Club qualified for the event by finishing second behind Kano Pillars in the Nigeria league and the team is still waiting for approval to be at the event.

    “We are still waiting for our parent parastatal for approval and as soon as we get it we will submit our entry. Playing in Lome will be a good one for the team and we hope that we will get the approval soon,” Nnaji added.

    When reminded that his team faces a fine for late submission, he replied, “Imposing fine on teams will kill basketball in the zone. It will not allow the game to grow and I will appeal to FIBA to remove the fines.”

    He stated that what was needed at this point was to put forward policies that would help the growth of basketball in the continent.  The other Nigerian teams that will be at the championship are FIBA Zone Three champions, First Bank Basketball Club and Kano Pillars.

  • Ugwuanyi, Chime team up for Nnaji

    Chieftains of the Peoples Democratic Party (PDP) in Enugu State are not taking lightly the nullification of Senator Gilbert Nnaji’s election by the Election Petition Tribunal, which upheld the petition filed by a former governor of the state, Dr. Chimaroke Nnamani, who is the candidate of the People for Democratic Change (PDC) in the last National Assembly elections. This development, sources say, has compelled PDP leaders, including ex-governor Sullivan Chime, Deputy Senate President, Ike Ekweremadu, incumbent governor, Ifeanyi Ugwuanyi and Nnaji to return to the drawing board on how to counter ‘Nnamani’s threat’ at the Court of Appeal.

  • Genevieve Nnaji shines in new movie, ‘Road to Yesterday’

    AFTER what seems like a break from the Nigerian movie industry, Nollywood diva, Genevieve Nnaji is set to return to the big screen in a new production, Road to Yesterday . Producers of the feature film, The Entertainment Network, made this know when they announced plans to release the film in all Nigerian cinemas on Friday, November 27.

    Set in Lagos Nigeria, the movie is an epic love story, about a couple desperate to mend their marriage. They embark on a road trip to a relative’s funeral. However when memories and secrets from the past are revealed, a lot more is at stake than their relationship.

    According to the producers, Road to Yesterday is set to resonate with movie-goers nationwide.

    Written and directed by Ishaya Bako, a London Film School Alumni, and creator of Braids on a Bald Head (Best Short Film at the 2012 AMAA Awards) Road to Yesterday sees Genevieve Nnaji acting as Victoria Izu, the conflicted wife and mother.

    “Road to Yesterday was shot in various locations across Lagos. Its proudly Nigerian cast and crew celebrate the depth of local talent. With the support of AfricaMagic, the technical quality of the Film demonstrates that it is possible to make a high quality production in Nigeria with the appropriate budget and technical input. The Nigerian Premiere is set for Wednesday, November 18 in Lagos, Nigeria,” says Bako.

    Road to Yesterday also stars Nigerian-British actor, Oris Erhuerho, Majid Michel, Chioma ‘Chigul’ Omeruah and veteran, Ebele Okaro.

  • Nnaji at 59

    In his popular management book, Performance Management, Herman Aguinis who is an internationally recognized authority on human resource management draws global attention to one thing which world leaders in various fields, including sports, have in common: repeat practice. By repeat practice we mean a deliberate effort by a person—or even an organization—to stretch himself or herself to the limits constantly and habitually while in the process of achieving outstanding results. Nothing great, says the cliché, comes easy. Bill Gates, Wole Soyinka, Aliko Dangote, Barack Obama, Tiger Woods, etc, did not achieve global renown by electing to be like ordinary folks who typically work from 9 to 5. They rather ceaselessly challenge themselves. As Bart Nnaji, the erstwhile Minister of Power, turns 59 yesterday Monday, July 13, it is trite to state that his personal achievements as one of the world’s three leading university professors in his branch of engineering when he was only in his 30s and the revolution he has unleashed in Nigeria’s awful electric power sector are as a result of what psychologists and management researchers call stretch, that is, setting a goal that would seem initially impossible to accomplish but achieved at the end of the day as a result of tremendous determination and extraordinary hard work.

    As one of Nnaji’s closest friends over the decades who naturally worked with him during his stint as Secretary of Science and Technology in 1993, Special Adviser to the President on Power and chairman of the Presidential Task Force on Power from 2010 t0 2011 as well as Minister of Power from 2011 to 2012, I have seen Nnaji’s patriotism, self-confidence, brilliance and absolute devotion to duty benefit the whole country. He made Jeffrey Immelt, chairman of General Electric, visit sub Africa for the first time ever; and Immelt came in 2012 not as a tourist or mere supplier of turbines and other key engineering equipment but as a major investor in Nigeria. Today, GE’s multi-million dollar production plant in Calabar, Cross River State, its first in Africa, is nearing completion. By the way, Professors Heinz Weirich, Mark Cannice and Harold Koontz describe GE in the 13th edition of Management: A Global And Entrepreneurial Perspective as the world’s greatest company.

    Nnaji also convinced world’s leading engineering firms like Siemens of Germany, Hyundai Heavy Industries of South Korea and Electrobras of Brazil to start investing heavily in Nigeria’s power sector as authentic stakeholders, instead of being content to work as mere contractors and equipment suppliers. Siemens, for instance, accepted to build its first workshop in Africa in Nigeria and to work in collaboration with the National Power Training Institute (NAPTIN) and Nigeria’s northern universities in the development of solar energy where Germany is the world’s leader. The unprecedented improvement in electric supply all over the country during Nnaji’s tenure is too fresh in our people’s mind to be repeated here. He assembled a team of what Eric Hoffer, the self-taught American man of letters, would call true believers, that is, devotees to the power sector reform and they did go out of their way to ensure its success. I, for one, broadcast and published in the media my telephone number, asking anyone with a peculiar power problem to contact me directly for a prompt resolution of the problem. It was a particularly difficult assignment. I used to receive as many as 150 complaints daily, and I did my best to solve each problem. It was an assignment which exposed me to the depths of the rot in the power sector. Whole communities and streets in towns and cities were deprived of electricity for months because of minor problems that could be addressed in a few minutes or because they refused to bribe electricity distribution company officials.

    To repeat the obvious, Nnaji’s era remains the golden era in Nigeria’s electricity development. He was in office for only 14 months as the Minister of Power, yet it seems to most Nigerians that he was there for up to 10 years. This shows how impactful his tenure was, and still remains. Most Nigerians don’t even remember his predecessors! There is no minister in our national history whose exit has created the kind of furore which accompanied Nnaji’s principled resignation on August 28, 2012. For at least one month it was the dominant issue in the Nigerian media. On his return from an overseas trip, former Lagos State governor, Bola Tinubu, who was to become the national leader of the All People’s Congress (APC), told reporters at the airport in Lagos that with the exit of “the only performing minister in President Goodluck Jonathan’s government, the ruling Peoples Democratic Party (PDP) is finished, and can never come back to office.” How prescient or prophetic! The World Bank called the resignation a great setback for Nigeria’s electricity development. The Economist of London on September 8, 2012, described it as the “extinguishing of a bright light in Nigeria”.

    With the well deserved defeat of the PDP in the March 28 presidential vote and the repeated assurance by President Muhammadu Buhari that his government would feature a number of accomplished technocrats, it has widely been speculated in the media that Nnaji, who has since returned to his private business of building integrated power systems in Aba and elsewhere is a natural fit for the Ministry of Power. Consequently, vested interests in the power sector which have perennially kept the country in darkness have been fighting viciously to stop Buhari from returning him to government. All manner of ghost writers have been recruited to ensure that the status quo of corruption and lethargy prevails in the sector. For example, the latest advertorial by the faceless characters claims that Nnaji has been “sleeping” in Tinubu’s residence and that of former President Olusegun Obasanjo in a desperate attempt to become the new Minister of Power. They even claim that he is a member of Buhari’s transition committee on infrastructure and that there is an ongoing spate of articles celebrating him in the media. All these claims are totally false. Nnaji has never met Tinubu and has not seen Obasanjo in years. Of course, he is not a member of any committee set up by Buhari. Nor has there been in the last year an article anywhere celebrating him or his accomplishments. In fact, he has in the last two years politely turned down award offers from organizations and institutions.

    As Nnaji quietly marks his exceedingly eventful 59 years on earth, we all wish that his tribe of patriots and highly knowledgeable citizens committed to the public good continue to multiply in the interests of our nation. He is an excellent source of inspiration and an eloquent example of repeat practice. It is repeat practice which catapulted him from humble beginnings to global recognition. It is repeat practice which separates advanced nations from poor countries. On this special occasion, we say to him ad multus annos.

    ‘To repeat the obvious, Nnaji’s era remains the golden era in Nigeria’s electricity development. He was in office for only 14 months as the Minister of Power, yet it seems to most Nigerians that he was there for up to 10 years’

     

    • Adinuba is head of Discovery Public Affairs Consulting.
  • Enugu APC woos Nnaji, others

    Enugu APC woos Nnaji, others

    The Chairman of the Enugu State chapter of the All Progressives Congress (APC), Dr. Ben Nwoye, has disowned the purported meeting held by the party’s State Executive Council (SEC) on Monday, saying no Exco meeting held as claimed by the Publicity Secretary, Kate Offor, where the party agreed to shut its doors against intending defectors.

    The chairman said the party would keep its doors open to new members because there was need to strengthen the party with a view to making it a formidable opposition.

    He listed names like Chief Jim Nwobodo, Prof. Barth Nnaji, and Senator Fide Okoro as people he had approached to join the party.

    Nwoye however denied seeking a ministerial position for Nnaji as alleged by some party members.

    “I led a group to visit to Prof. Barth Nnaji. We want to build a formidable alternative. I did not go seeking to co-opt him to be minister, though he is free to join the party.

    “Barth is not the only person we visited. We visited many people, including PDP members to come and join us to build the party. We want big names to dump their parties for APC.

    “Enugu is open to all progressives to come and join the party, APC, to build a formidable opposition.

    “We did not win any seat at the state level. There is need for us to discuss with people with the intention to building the party,” Nwoye said.

  • Enugu APC stops Nnaji, others from joining party

    Enugu APC stops Nnaji, others from joining party

    THE Enugu State chapter of the All Progressives Congress (APC) has said it will not admit any member of the Peoples Democratic Party (PDP) into its fold for now.

    Publicity Secretary  Mrs. Kate Offor spoke with reporters on the outcome of its State Executive Committee (SEC) meeting.

    Offor said the SEC frowned at some elements within Enugu APC who without authorisation, met with some PDP members with intent to defect to APC.

    She warned that the party would not hesitate to sanction any member found involving in plots to admit any PDP member until a time authorised by the party.

    “At an enlarged meeting of the State Executive Committee of Enugu State chapter of the All Progressives Congress (APC), we resolved that the membership drive aimed at enlisting Prof Barth Nnaji, Chief Jim Nwobodo and co, into our great party be stopped forthwith.

    “For us, it is medicine after death, given the shameful result we recorded in the elections.

    “Accordingly, we are outraged that some elements, without authorisation, have held meetings with Prof Nnaji and if not stopped, will head to God knows where.

    “Whereas, we hold Prof Nnaji, robotic engineer and our elder statesman, Chief Jim Nwobodo, and other eminent sons in very high esteem, we frown seriously at clandestine moves of some people reaping where they did not sow.

    “We stand by the words of our President-elect, Muhammadu Buhari and our National Chairman, Chief John Odigie-Oyegun, to the effect that we do not want a one party state, therefore PDP members should stay and rebuild their party,” Offor said.

  • Nnaji caught in primitive power show

    Pig-headed impunity: On March 20, this column had picked on a two-page advertorial by Chams Consortium Limited in a national newspaper. One had been moved by the plaintive cry of Chams, a foremost indigenous technology firm over the shoddy treatment meted to its consortium by the National Identity Management Commission (NIMC) to which it had a contract to work on Nigeria’s identity cards.

    In the Chams’ “Open Letter to the President of the Federal Republic of Nigeria, His Excellency, Dr. Goodluck Ebele Jonathan, the firm had cried out that NIMC management had converted its “concession agreement into segmented contracts to ‘selected’ third parties”, among other infractions to legitimate agreements. Most touching was that every avenue for settlement, including sending of emissaries, mediations and even the law courts were rebuffed by the NIMC.

    The public outcry to the president was the only option left to Chams at that point to fight what seemed to have become a leviathan. One had been moved by the sheer injustice of the situation (in the face of it) to join in weeping for Chams. Though one is not certain how the Chams-NIMC rift eventually panned out, a similar scenario of primitive power show plays out in the matter between Professor Bathlomew Nnaji, President Goodluck Jonathan and his power ‘reform’ cabal.

    A prophet without honour at home:Prof. Nnaji, twice minister of the Federal Republic and winner of the Nigerian National Order of Merit (2004) cried out bitterly in a half page article in national newspapers April 20, 2015. Any man of conscience may not be able to hold back tears after reading Nnaji’s piece. To think that Nnaji, a world renowned professor of Mechanical and Industrial Engineering who won the US Secretary of State’s Distinguished Public Service Award in 2005 is the same one being messed up by his home government.

    The story in a nutshell is that Prof. Nnaji in collaboration of the Aba business community, the United State Agency for International Development (USAID) and a consortium of banks had nearly ten years ago gotten a concession from the Federal Government to supply electricity power to Aba (including Ariaria areas), Abia State.

    The big idea was to build an integrated power project for this commercial area; a business model for power development in Nigeria that can stand alone, be self-sustaining and can be easily replicated in other major industrial and commercial cities of Nigeria.

    With a Federal Government concession agreement in its kitty in 2005, began work on the 141megawatts Aba Integrated Power Project (AIPP or Aba Power). Some of the infrastructure built, according to Nnaji, include 141MW power plant with standard equipment from General Electric; rehabilitation of the entire distribution network in Aba and 105km of overhead transmission lines in Aba metropolis.

    Aba Power also built numerous substations of varying sizes, new control building and 27km of gas pipeline among other gas infrastructure to ensure a reliable and no down-time fueling of the power plant. All of these cost about $500 million or N100 billion  according to Prof. Nnaji.

    So why wouldn’t Aba Power be switched on if it was ready to go since November 2013? It is said that at about this time, power privatisation was completed and the entire Southeast zone was ceded to the Enugu Electricity Distribution Company (EEDC) – including Aba metropolis. Since then, the management of EEDC has refused to let go and the Federal Government would not take a stand and affirm Aba Power’s agreement and legitimacy over Aba metropolis.

    Hear it from Prof. Nnaji: “…The painful fact is that this critical issue has been left festering since November 2013. It costs the company $3.5 million in bank interest charges alone; plus more than N30 million for insurance coverage; and other operational expenses every single month to carry a project that is not yielding any revenue due to deliberate, hostile and crippling action of Enugu Disco and the BPE over 15 months ago.”

    He noted further that about eight committees, including committees of the National Council on Privatization (NCP) and the Nigerian Electricity Regulatory Commission (NERC) and the Ministry of Power have investigated the matter and came up with the same recommendation: government should respect its agreement with Aba Power.

    This travesty has been cruel to us all,” Nnaji cries out in his piece. “We have made all efforts to get the BPE to correct what (for choice of a better word) may be called an “error”. So far, they have not yielded to doing the correct thing. Rather, they have sought to justify this error and have sought to justify this error and have continued to politicize the situation unnecessarily…”

    Recall that Prof. Nnaji, acclaimed to be the best of President Goodluck Jonathan’s ministers was ‘removed’ unceremoniously as Power Minister over the privatization of Nigeria’s power assets. Recall also that the EEDC was controversially awarded to the current owners in spite of vehement protests by stakeholders from its zone of operation. EEDC has the entire five state of the southeast under its control – a very large expanse which it has managed very shoddily so far. Why would it illegally hold on to Aba which had been ceded to another if it has over a dozen other major cities of the southeast to tend to?

    It is sad that the Jonathan administration chose to grow a reputation as a government that breaches it agreements and makes light of serious matters of state. Petty politicking and impunity almost became its brand identification signature.

    If a man of Prof. Nnaji’s caliber could be meted with this manner of treatment one can only wonder what happens to ordinary Nigerians in the course of their routine relations with government. One is only at a loss as to why Nnaji and his group did not drag the Jonathan administration to court over this blatant show of primitive power.

  • Nnaji appointed delegate to 1st AFTU taekwondo tourney

    Nnaji appointed delegate to 1st AFTU taekwondo tourney

    Vice President of Nigeria Olympic Committee (NOC) Jonathan Nnaji has been appointed as a delegate to the maiden Africa Taekwando Union (AFTU) Championship billed for February 21-22nd, 2015 in Alexandria, Egypt.

    In a letter dated 9th January 2015 and made available to SportingLife, President of World Taekwondo Federation (WTF) , Chungwon Choue said he deemed it necessary to appoint Nnaji because of his commitment to the development of the game and his ability to put in 100% in whatever assignment he is given for the good of the game.

     Choue, who was re-elected to his position in Demark in 2009, described technical position in the game as a very important assignment only reserved for those who are at home with the rudiments of the game .

    “The position of technical delegate is of utmost importance to the Sport of Taekwondo, which is why I have every belief that you will serve your post with integrity and pride. You are required to ensure that the tournament is taking place in strict compliance with WTF competition Rules in fair judging and smooth operation.  I look forward to your continued devotion to the successful organization of the 1st AFTU Open,” he said.

    While congratulating Chief Jonathan Nnaji, President of the Nigerian Taekwondo Referees Association and PANAMAI West Africa President, GM Dr. Ferguson Oluigbo reminded the appointee to see this recognition as another opportunity to do Nigeria and Africa Proud.

    “Your appointment for the assignment is not a surprise at all. It is a recognition of your contribution to the development of the game not only in Nigeria but also in the continent and by extension to the world at large.  It is a further call for you to double effort for a better tomorrow for the game of taekwondo,” he submitted.