The Nation Newspaper

Tag: POWER

  • Bitterleaf healing power

    Bitterleaf is one of the widely use cooking vegetable in Africa and it can grow in any part of the world

    Very few people are aware that this vegetable is highly medicinal and can be used to cure diseases as well as help to keep our body in good health condition. The important thing this leaf does is to clean the blood, hence prevent sickness. This made by squeezing the fresh leaves to get the juice. Drink about a glass of the juice 3 times a day.

    •Bitter leaf also cleans the lymphatic system as well.

    •For smokers or those that are been exposed to secondary smoke, bitter leaf is useful by protecting the body against pollutants that come from cigarette smoke and some dangerous gas.

    •The juice prevents malaria sickness due to the presence of Natural Quinine. Regular intake of this bitter leaf juice will prevent malaria sickness

    •It also yield the healing power of Sexually Transmitted Diseases(STD). The drinking of the bitter leaf juice daily and also squeeze the leaves and paste it on the patches and warts that appear on the skin will vanish in course of days.

    •It is useful for treating of ringworm, eczema and other diseases, just squeeze and paste it regularly, drink the fresh bitter leaf juice, this will clear them off in no time.

    •It is useful in curing loss of memory. It could be a symptom of diabetes or a sickness on its own. Whatever the nature, bitter leaf is very good for treating this ailment.

    •If you often feel weak and tired or you lack vitality and vigour, squeeze the bitter leaf in water, take a glass 3 times daily.

    It is good in treating stroke, strengthens the muscle and cleanses the system.

    •In treating pneumonia, squeeze the fresh leafs of the plant in water. Take a glass full thrice daily. Warm the solution on fire each time before you drink.

    •Insomnia is an inability to sleep well, take 2 glasses of bitter leaf juice every night. You may add a little honey if you wish.

    •It prevent Arthritis or rheumatism in patients. It soothes swollen joints and eradicates the pain.

    •Chew the tender stem and swallowing the juices is a well known remedy for stomach aches. Alternatively, pound the fresh leaves in a mortar to extract the juice, add a pinch of salt to three tablespoons of the undiluted juice and drink. This version is reported to bring immediate relief.

  • ‘Power generation drops to 2,290mw’

    The Transmission Company of Nigeria (TCN) has said that the country’s power generation dropped to 2,290megawatt (mw) on Sunday after a loss of 1,598mw, following gas pipeline vandalism.

    TCN analysis gave an indication that the nation’s power generation had dropped from 4,500mw to 3,888mw before the Sunday gas pipeline vandalism.

    The company said with the low level generation, the operation and control of the system is a major challenge.

    TCN said the massive load shedding experienced nationwide is caused by vandalism of two major gas pipelines supplying gas to eight power generation stations, namely Egbin/AES thermal stations, Olorunsogo, Omotoso, Geregu NIPP, Afam IV and VI thermal power stations as well as River State Independent Power Station, resulting in reduction of power supply by 1,598 megawatts.

    In statement by the company’s General Manager (Public Affairs), Mr. Dave Ifabiyi, TCN said: “One of the vandalised gas pipelines takes supply from the Okoloma Gas Plant, the other takes from Escravos.

    “With the disruption of gas supply through the lines, the Nigerian Gas Company (NGC) is unable to move gas to Afam IV, Afam VI and the Independent Power Plant in Rivers State, resulting in generation loss of 593MW.”

    “Also, the second vandalised gas pipeline from Escravos to Warri caused a cutback of 1,005MW in power generation from Egbin/AES power generating station, Olorunsogo, Omotosho and Geregu NIPP power generating plants.”

    The company added that due to the importance of the pipelines to power generation, Nigeria Gas Company (NGC) is said to be working to isolate the vandalised portions of the pipelines to effect repairs, with the hope that gas supply can be restored to the affected power generating stations soon.

     

  • Power firms seek funds to meet capital projects

    Power companies have intensified efforts to raise funds from the capital market as the emergent distribution and generation companies detail huge capital investment outlay that may be required to run competitive operations in post-privatisation period.

    Reliable capital market sources said many of the successor companies in the power sector privatisation programme have advanced discussions on raising funds from the capital market.

    According to a source, the companies have approached several financial advisers to liaise with financial institutions in Nigeria and correspondent international financial institutions to structure amenable capital issues for them.

    Sources indicated that the power distribution companies (discos) and power generating companies (gencos) may initially explore opportunities for new capital through private placements but there were strong indications they may also undertake general capital raising exercise within the medium term.

    They said gencos and discos were also in discussions with banks to work out modalities special financing arrangements that meet the peculiarities of the power sector.

    Economist and investment advisor, Sterling Capital Markets Limited, Mr Sewa Wusu, said the financial requirements of the power companies are enormous and that could stimulate a frenzy of capital market activities in the period ahead.

    “Their funding needs may likely induce another round of primary market awakening in terms of fund raising activities in the market. Some of them could foray into the domestic market for fresh funds and at the same time access the international capital markets for their funding needs,” Wusu said.

    He said the nature of the sector and potential of the power companies would make them attractive to investors noting that the Nigerian capital market has adequate depth to meet the long-term capital requirements of the companies.

    “Good instruments with commensurate returns will always attract investment in the market. The power companies are sold out by government to create the needed efficiency in the Nigerian power sector. Consumers will pay for it as far as they can get efficient service delivery. These are the exciting attractions for the power companies, which makes them attractive investment destination for the country, both for domestic and foreign investors,” Wusu said.

    He noted that the capital market as the market for long-term fund is best suited to the need of the power companies.

    The Nation had recently reported that banks’ chief executives, Governor and top officials of the Central Bank of Nigeria (CBN) and several experts had mulled a collaborative effort to develop amenable financing framework that would serve as financial industry’s master template for lending and funding of the Nigerian power sector.

    The strategic funding plan, which is being developed under the auspices of the Bankers’ Committee with active participation of top management of all banks, the Central Bank of Nigeria (CBN) and other key stakeholders, is a linchpin in the Bankers’ Committee’s programme for 2013, which largely focused on aligning the Nigerian banking system to provide adequate financing to meet the peculiarities of the power sector.

    Sources in the know of the funding strategy and banks’ collective initiatives indicated the funding strategy would provide the banking industry with a kind of master agreement or template that would foster best practices, remove inconsistency, ease access to funding and encourage regulator-operator understanding as banks move into the still-evolving power sector.

    While individual bank may adapt the funding strategy to suit its internal structure and terms, the template would provide overall guidelines, structures, terms and concepts among others for the entire industry.

    The CBN would sign on the banking industry funding strategy for power sector, which would give the template a quasi-regulatory status.

    The funding strategy would enable banks to provide well-structured finances to support investments in gas transmission pipelines, upstream gas developments, Liquified Natural Gas (LNG) and Liquified Petroleum Gas (LPG) plants, gas processing facilities, key infrastructure, port, real estate, pipe milling and fabrication yards and gas supply and gas transportation infrastructure among other.

  • Power nightmare

    Power nightmare

    THE recent confession by the Federal Government that not less than 120 million Nigerians live without electricity is despicable. Hajia Zaynab Kuchi, Minister of State for Power, after a recent Federal Executive Council meeting presided over by President Goodluck Jonathan, made the startling revelation. Professor Chinedu Nebo, Minister of Power and Kuchi’s senior colleague in the ministry was among the ministers at the briefing during the presentation of progress report of the power sector. He corroborated her position when he said that provision of electricity has become a ‘nightmare’ for the present administration.

    Hajia Kuchi was blunt when she said: “We have 160 million Nigerians now and we are only giving power to 40 million of that population. What it means is that there are about 120 million Nigerians that are without power and wish to buy power.’’ The revealed figure translates to 25 percent of Nigerians that currently have access to electricity. In the 21st century, this is indeed nightmarish in a country that is as blessed as Nigeria.

    The duo’s position that the only way to deliver power to Nigerians is by ‘serious commercialisation’ is faulty. They believe that the country can be powered through Independent Power Projects (IPPs) and collaboration of Public-Private Partnership. But we ask: Is government no longer responsible for the commercialisation of power? Should the government now be seeking for scapegoat in its futile attempt to commercialise the power sector through the IPPs?

    While it could be over-looked that natural occurrences such as storms, as posited by Prof Nebo, could wreak havoc as was the case in Bayelsa and Kebbi states where storms reportedly destroyed transmission lines, it is totally wrong to use that as absolute reason for the rapidly diminishing power supply across the country. The minister’s allusion to alleged vandalisation of power projects by some youths in Abuja will even not suffice. The truth is that there is need for total overhaul of generation and transmission networks in the nation, a thing the government is not taking seriously yet.

    The government seems to be exhuming excuses meant to exculpate official ineptitude. The minister suddenly realised mid-year that the sector is poorly funded because no fund was provided for routine maintenance of the generation and distribution companies this year. This is scandalous. The official explanation that power privatisation would have been completed since last year is equally bunkum. Is it not the government that is handling the privatisation that should be held responsible for slowing down the process?

    Despite huge government’s investment in the sector meant to guarantee stable power supply, it is sad that power generation in the country still stands at far below the desired megawatts – and most times highly epileptic or even not available for months in some areas. What then is the significance of the over $16 billion spent by the Obasanjo administration on the power sector, not to talk of the one spent by the current government that is yet to be made public.

    We doubt whether the projected December target for 10,000 megawatts is realistic with the current state of the IPPs. Nigerians only know the beginning of power contracts but are left in the dark about their terminal dates.

    It is sad that the history of power transformation has so far been that of miserable projections, failed promises and criminal defaults.

  • Fed Govt, power coy meet on sale of NIPP assets

    Fed Govt, power coy meet on sale of NIPP assets

    The Federal Government through the National Council on Privatisation (NCP) will today meet with the officials of the Niger Delta Power Holding Company (NDPHC) and other relevant stakeholders including the Minister of Power at the Presidential Villa. The meeting is to discuss the sale of the 10 power plants built under the National Integrated Power Project (NIPP).

    The Minister of Power, Prof. Chinedu Nebo disclosed this yesterday in Lagos when he paid a working visit to Eko Electricity Distribution Company where he commissioned a couple of rehabilitated and newly built 15MVA transformers, switchgears and control panels.

    Nebo who listened to the comments of the electricity workers union, Eko chapter, assured them (workers) that their entitlements under the severance package, would be fully paid. He added that the payment would soon start and advised the workers to be very prudent with the entitlements when paid.

    He also advised them to take their jobs seriously because the investors that bought the assets of the Power Holding Company of Nigeria (PHCN) and those that would buy the NDPHC may retain them and even recall their retires colleagues.

    Nebo hinged his reasons on the fact that the new investors cannot manufacture the wealth of experiences of the PHCN workers overnight. Besides, he said the government will not allow the investors import personnel from foreign countries to operate the assets.

  • ‘There is need for power shift in 2015’

    ‘There is need for power shift in 2015’

    Second Republic Secretary to Lagos State Government Asiwaju Olorunfunmi Basorun spoke with WALE AJETUNMOBI on the politcal situation in the country.

     

    Do you think the All Progressives Congress (APC), when finally registered,would be a threat to the ruling Peoples Democratic Party (PDP)?

    It certainly will pose a threat to the PDP because the party being conceived by the leaders, will come to the Southwest as a mass movement and sweep away those who are anti-people.

    In what ways do you think the APC will be different from the PDP?

    APC’s primary objective to bring Nigerians together and run a government that will have the greatest interest of Nigerians at heart. A manifesto has not been launched. So, nobody can say these are the details. But, if there is anything in the mind of those who are promoting the APC, it is to take charge of the country and the government in Nigeria; to run a government that will be in the interest of the majority of Nigerians. There is an urgent need for power to shift in 2015.

    Considering the United States report on corruption in Nigeria, is there any hope for the country?

    Well, I don’t know the details of the US report. Did they mention those who are corrupt? According to you, the report says there is monumental corruption being perpetrated in high places in Nigeria. The high places here means the Federal Government being administered by the PDP. The ACN is not there. By the way, the President’s statement against the civil servants, who he said are corrupt on Workers’ Day, is unfortunate. I expect the civil servants to organise themselves and reply him. I don’t know why he accused the civil servants, except they are all corrupt together. Take the case of the oil subsidy, we know the people who benefited from the fraud. None of them is a civil servant. Unless the President is telling us that it was the civil servants who misadvised them to give money to those who are not going to import oil and they embezzled all the money. It is corruption in itself for the President to promise us that, when he removed the subsidy, Nigerians would see what he would do with the money. But we are now seeing what he is doing with SURE-P programme headed by Dr Christoper Kolade. The programme has now been politicised. SURE is not sure for all Nigerians. The President is using the scheme to look after the members of his party across the states. Is that how to alleviate our suffering? SURE is sure for only those who can sing the praises of the President.

    The House of Representatives recently concluded a process to review the constitution…

    I have wondered, if the review is different from the amendment. Whatever they claimed they did was a sham. Members of the House of Representatives are trying to fool Nigerians by coming out to say Nigerians have spoken; that some constituencies have met and voted and agreed that there should be no state police. I say they are talking rubbish. This is a country where we have more than 160 million people and less than 9,000 policemen. If I take the average, out of about 250 people that attended the one in Ikorodu in November, half of them were market women with aso ebi (uniform). I attended and I took permission to speak first. I told them to set up different committees in all constituencies in Ikorodu axis, so that more people would be heard. They didn’t want to consider it. Later, I asked them: how can we be saying yes or no on these vexed issues? I told them that, if that is what you want, tell the House this is not going to solve our problems. There are questions we have to ask. But you have given us the template for 43 questions to go and fill and returned. I filled my own, but I added a rejoinder. I appealed to them to note that what they are doing is just a preamble to the real work. I advised them to get more Nigerians involved.

    It is necessary to invite organisations such as Nigerian Medical Association (NMA), Nigerian Union of Journalists (NUJ), Nigerian Bar Association (NBA), Women Council of Nigeria, Academic Staff Union of Universities (ASUU) and the important civil society bodies. Let them constitute a body to look at the 43 subjects and debate them. We did not vote in my constituency. How could we have voted; what would those uneducated women have voted for? Do they know what is called state police? I did not end there because I know the implication. I know we cannot get a perfect constitution, but let us get something that is closer to it. So, I was surprised when I read in the newspaper that 324 constituencies voted that Houses of Assembly should be granted financial autonomy. That is not important because many of the states already have it. Lagos State has it. Why should they be voting for that one?

    What is your view on the local government autonomy?

    I am concerned about that. The preponderant view is that local government should be subjected to the state so that they can use Section 7, sub-section 1, of the current constitution, which has not been amended, to create local governments. So, when it comes to funding, use the indices to allocate money to that state. The present constitution does not even ask the Federal Government to give local government funds directly to the states. Then, in Section 162, the money is there for the state for sharing among the local governments in accordance with a law made by the state House of Assembly. And then, they talk of states’ Independent Electoral Commission being prevented from holding elections. What type of federalism are we running? If we want to conduct a local government election, an almighty Jega will come and conduct it. It means that INEC will not rest all its life, if it has to conduct local government elections in the 36 states, which are not held at the same period. They say INEC should conduct all the elections at the same time and they are saying yes. What does the market woman understand about scrapping states’ electoral commissions and leaving the national electoral commission to hold all elections? Even, some elite said the state governors would misuse power. Is the federal government not misusing power? Anenih, last month, said, we know how to win in 2015. The statement is pregnant with a lot of meaning. So, the House of Reps just left serious matters and went into issues such as immunity clause. It does not make much sense to me because the conference we held in 2005 had decided that the criminal aspect be removed. Nobody should be in this country and commit crime because he or she is in a position of authority and get away with it. No.

    Should a six-year single tenure be allowed?

    I heard the President’s spokesman saying that Jonathan has said he would not contest in the 2015, provided that we have a six-year single term. My view is that many of these people do not understand. It is a pity Obasanjo jettisoned the last constitutional conference. Each time I look through the list of the participants; we had Anyaoku, we had Olusola Saraki, Ango Abdullahi and Muritala Nyako. I was there and Prof Adebayo Adedeji, the Olowo of Owo, who was my teacher in the Law School, was there. I don’t know how we will succeed to arrange such people, unless each constituency brings out its best people to work out a new constitution. So, we need a collection to discuss on these 43 items and they should not make the material their final decision. They should still subject it to argument such as what are the implications of state police? Argument that the state government will abuse it, or use to harass its opponent is trite. What is the President doing with the security lever he controls? Presently, he is using it, as he wants. When he did not want the opponents of Dickson to be governor in Bayelsa State, they used security against them. When Ladoja was to be impeached, the process was done in a hotel guarded by security agencies. The same thing with Dariye. So, who cannot misuse the security apparatus? We only need to strengthen the law to caution whoever is going to be in charge.

    Don’t you think the country is jinxed when it comes to making a new constitution?

    I don’t believe in such a notion. But what I think is that those who are there now feel that making a new constitution or amendment would take the power away from them. That is why I said they should be part of the process. If people want another constitution, I don’t think this present government can do that. It is not only lazy, it is a sleeping government. They are just spending our money on unproductive retreats. They will take allowance and all sorts of money. But having spent such money, nothing else happens. We still have two years to go into another election. Let us do this review properly and get something. In 2015, when we get a better government, we will overhaul everything. This is not the kind of government that can give us a good constitution. Whenever they hear that people are calling for constitutional review, they will think that we want to send them packing. They want to entrench themselves, which is what the decision they have taken in the just-concluded review process.

     

  • ‘Give states power to generate electricity’

    Ondo State Attorney-General and Commissioner for Justice Eyitayo Jegede (SAN) has urged the Federal Government to allow states generate and distribute electricity.

    He said this would facilitate economic growth.

    Eyitayo called for the abrogation of the constitutional provisions that hinder states from generating and distributing power.

    He spoke in Ilorin, the Kwara State capital, while delivering a lecture during the 2013 Cocoa/Bitumen Day celebration organised by the Ondo State Students Association in the University of Ilorin (UNILORIN).

    The commissioner, who was represented by the former Chairman of the Governing Council of the Rufus Giwa Polytechnic, Owo, Dr. Laoye Adegoke, said the decentralisation of power generation and distribution is a non-negotiable prerequisite for national development.

    The lecture was organised in honour of a former Registrar of the institution and an indigene of Ondo State, Mrs. Folake Oyeyemi.

    It was attended by the Deji of Akure, Oba Adebiyi Adesida and his wife; former Unilorin Deputy Vice-Chancellor, Prof. Luke Edungbola; Prof. T. O. Daramola; UNILORIN Librarian Prof. J.O. Omoniyi; the DVC, Prof. Felix OLadele and Mrs. Mosun Adesuyi, a former Permanent Secretary in Ondo State.

    Also present were Mrs. Lydia Faloye; Chief Vincent Akin Fabiyi; Mrs Kike Adeniyi; Mrs. Dunni Fagbayigbo and Hajia Jumoke Oba-AbdulRaheem.

  • World Bank shops for power project agency

    The World Bank is on the lookout for any government agency to handle the  Project Implementation Unit of its pilot Public Private Partnership (PPPs) department.

    the World Bank team, led by the Sector Manager, Finance and Private Sector Development (Western & Central African countries), Paul Noumba was  in Abuja yesterday in pursuit of the agenda.

    Noumba said that Nigeria was the first country which the World Bank picked   for a pilot project for PPPs, but regretted that for three years, funds released for the purpose have been lying fallow.

    The Bureau of Public Enterprises (BPE) which made this disclosure in a statement, quoted him as saying that because of the non-utilisation of the fund, the World Bank has decided to restructure and scale it down to $25million at the first instance to take care of technical assistance and capacity building, while in phase two, it would release $85 million.

    The initial ratio, according to him,  was $150 million and $300million. He pledged the bank’s assistance to the Bureau in the areas of advisory services, manpower development and funding in some of its transactions like the commercialisation of the Federal Housing Authority, privatisation of the Abuja Stock and Commodities Exchange and the eight reform bills being fine-tuned for presentation to the National Assembly.

    Speaking, the Director General, BPE, Benjamin Dikki,  declared that for reforms to succeed in any country there must be a strong political will at the top.

    He listed some of the reforms the present administration had given full backing, to include; the power privatization, commercialisation of the Federal Housing Authority (FHA), privatisation   of the Abuja Securities & Commodities Exchange (ASCE) and the approval of   eight reform bills by the National Council on Privatisation (NCP) which are expected to be presented to Federal Executive Council (FEC) for onward transmission to the National assembly.

    The DG called for the domiciling of PIU in the Bureau as the law establishing BPE gives it the mandate to execute PPPs through concessioning/commercialisation. He added that the successful concessioning of the country’s 24 ports by the Bureau was a clear testimony of its capability to handle PPPs.

  • Achieving robust power transmission network

    Achieving robust power transmission network

    I watched with zeal and enthusiasm the recent Presidential Power Reform Transaction Signing Summit at the State House Abuja. At that summit, the preferred bidders for the Power Holding Company of Nigeria (PHCN) successor generating and distribution companies that have paid the initial 25% of the bid prices were handed over their 25% payment certificates. The balance of 75% is expected to be settled within six months. That event to me was indeed a major step forward in the

    implementation of the power sector reform. The Minister of Power, Professor Chinedu Nebo in his speech at the event described the summit as a “further boost to the reform momentum and investment confidence.”

    The minister is n right because the critics of the ongoing privatization efforts in the power sector do not agree that the process would reach the present stage of its journey. Their scepticisms were initially hinged on the believe that privatization of the power sector was not an answer to Nigeria’s quest for uninterrupted power supply and therefore concluded that the project would not work.

    Today, we have gone beyond the unbundling of the PHCN to the sale of the successor companies. It is also becoming increasingly clear that the solution to the interrupted power supply in the country lies in the hands of private investors given the enormity of the financial investments that are required to revitalize and transform the sector for efficiency and result.

    For instance to achieve the projected 40,000 MW in the country by the year 2020, it requires an annual US$10 billion investment in the power sector for the next 10 years. This means that a whopping US$100 billion is required urgently with generation alone, accounting for 35 percent of the fund injection. Obviously, this huge capital outlay is not available to the federal government now or in the near future.

    The interest shown by investors in the privatization of the power sector is unimaginable. Impressed with the investors market confidence in the power sector, President Goodluck Jonathan during the Power Reform Transaction Signing Summit stated that he was encouraged by the sustained interest in the sector and the meaningful investments that had been prompted in gas processing, power generation, power distribution and transmission. The President is not alone on this impressive note. Major industry players present at the event as well as senior government officials, friends and partners of Nigeria gave their endorsement and expressed confidence in the implementation and progress so far recorded in the privatization process of the sector.

    In no distant time, the generation and the distribution companies would be handed over to the preferred bidders to be fully managed by them. The only component of the power sector that will remain in the hands of the government is the Transmission Company of Nigeria (TCN). Already a management contract between Manitoba Hydro of Canada and the federal government has been put in place for TCN, to bring global best practices to bear in the expansion and management of the Nation’s grid. The TCN Board has also been inaugurated and the Schedule of Delegated Authority (SODA) has been issued to Manitoba Hydro.

    What this means is expected massive increase in the quantum of power generation and distribution in the country. But can this expectation be sustained in view of the state of the transmission network available in the country and the huge financial investment required to strengthen it?

    The Minister of Power, Professor Nebo, recently revealed for instance that a total capital outlay of US$3.4 billion is required up to 2016 to fix the country’s transmission grid to be able to evacuate all generated power estimated at 20,000MW. At present, the transmission network in the country remains weak and cannot wheel a power load greater than 5,000 MW. What government needs to do at this moment is to urgently put in place a robust transmission expansion master plan to cope with the expected massive increase in generation.

    It is on record that the gap between the power production profile and the effective wheeling capacity of the country’s grid is in excess of an average of 1,200MW per day of stranded generation. This development is unhealthy and cannot be tolerated in this expected new dawn of increased power generation, especially when the private investors take over. Efforts should therefore be intensified by the government to address the issue of the present radial network and dominant single- circuit network which industry experts said were responsible for grid fragility. There is also the issue of accumulated maintenance neglect throughout the network which the government should also look into, to avoid the increasingly weak handshake at the TX/DX interface, causing frequent feeder-line tripping and declining efficiency of transmission-level fault detection and protection systems.

    As noted earlier, government alone may not be able to achieve this robust transmission network. It therefore becomes expedient to tinker with the idea of declaring a Transmission Emergency in the sector in recognition of the threats this weakness poses to the development of a sustainable power market. In the same direction, government can as well create an enabling frame work for private- sector participation in transmission project development as well as promote an agenda to attract investors to partake in project development.

    It is however, gratifying to note that some positive steps have been taken by the government to strengthen the nation’s transmission line capacities. Already government is working out the funding of the TCN long term expansion plan from a mix which will include the Transmission Development Fund, international banks and multilateral agencies. Work is also currently on going in the refurbishing,

    rehabilitation and expansion of existing plants, for electricity development in the country.

    There are also faults clearing in the transmission network across the nation, upgrading and modernizing many aspects. Many of the National Integrated Power Projects (NIPP) already have transmission components embedded in the project. For example, 118 transmission projects by NIPP are ongoing now in 43 lots. These transmission projects which cover over 274km of lines and transmission capacity of 2,370 MW will soon be completed.

    While commending the present conscious efforts of government to achieve a robust transmission network, it is also pertinent to say that the application of speed in the completion of these critical projects is important to quickly enhance the TCN wheeling capacity and to maintain stability in the entire electricity value chain during and after the privatization of the power sector.

    • Aneke is an Abuja based public affairs analyst.

  • ‘Poor power supply affecting productivity’

    The Lagos Chamber of Commerce and Industry (LCCI) has said poor power supply is affecting businesses, resulting in reduced competitiveness of finished products.

    Speaking with reporters in Lagos, LCCI President, Goddie Ibru said: “The situation has deteriorated. The development impacted negatively on investment in the first quarter with increased expenditure on diesel and petrol by enterprises. This also comes with declining productivity and competitiveness. Unfortunately, no official explanation has been given for the dwindling performance in power supply.”

    He also said the credit situation has not improved, adding that lending rates were over 20 per cent in the first quarter.

    “The credit challenge was identified as the factor with the biggest negative impact on business confidence.  We reiterate our call for fiscal and monetary authorities to work together to ease the credit conditions, especially for the small and medium scale enterprises, and more importantly, domestic businesses. This is critical as well to stem the gradual crowding out of domestic entrepreneurs by foreign investors.

    He said many small and medium scale enterprises still have serious challenges in accessing credit, even at high interest rate. The tight credit situation is a major inhibiting factor to the capacity of domestic enterprises to take advantage of the robust Nigerian market,” Ibru added.

    Ibru said poor access to credit by indigenous entrepreneurs is the main reason foreign investors are gradually taking over businesses in the country.

    On insecurity, he said the situation has deteriorated and has impacted on investment risk and worsened the nation’s perception and image at the global level.

    “Access to markets in the troubled parts of the country has reduced for many enterprises, and this is already affecting sales and profitability. Also, many enterprises have re-located with the inherent challenges,” Ibru said.

    He said the cost at which the government is borrowing is too high and creating distortions in the market, adding that private sector is being crowded out when investment in treasury bills and government bonds are more attractive than putting money in fixed deposits.

    “There is an urgent need therefore to moderate the growth of domestic debts and free resources for investors in the economy. There should be full compliance with the provisions of the fiscal responsibility Act with regard to debt management,” he said.

    He said borrowing should be on concessional terms with low interest rate and with a reasonable long amortisation period subject to the approval of the appropriate legislative body where necessary.

    He said the government should ensure that the level of public debt as a proportion of the national income is held at a sustainable level as prescribed by the National Assembly on the advice of the minister.

    He said government’s borrowing is also creating liquidity problems in the financial system and crowding out the private sector in the market.

    “The government is borrowing at a high cost of between 14 and 66 per cent, which is one of the highest globally,” Ibru said.