The Nation Newspaper

Tag: POWER

  • ‘Power ‘ll shift in Anambra’

    ‘Power ‘ll shift in Anambra’

    Anambra State Action Congress of Nigeria (ACN) governorship aspirant Mr. Godwin Ezeemo spoke with EMMANUEL OLADESU on the party’s preparation for the next election.

     

     

    Why do you want to be the governor of Anambra State?

    I am coming out to contest because I want to assist in bringing to Anambra State the much desired good governance they are yearning for. And this will bring succour to the people who have missed good governance for a long time.

    What are your chances of getting your party’s ticket?

    I have a big chance of clinching the ticket. Having registered, financed and supported the party at the grassroots and the state level, and sponsored many aspirants within the party in the last five years, I am known and I believe these will earn me the ticket

    Can ACN beat APGA at the poll?

    ACN has a very good chance of winning Anambra, if it fields a good candidate. You know Anambrarians are after the personality and not the party. The party leaning has dwindled, owing to disappointments we have had since the Second Republic. I want to draw your attention to the fact that ACN is the only political party in the state, which does not have crisis. This already tells you the stuff the party is made of, unlike other parties that have factions.

    What is your agenda for Anambra people?

    I will restore the lost Igbo values. You remember that I organised a programme in Awka last year tagged ‘Re-discovering the Lost Igbo Values’. Prominent Anambrarians and Igbos, including Dr. Alex Ekwueme, Dr Chukwuemeka Ezeife, Dame Virgy Etiaba , academics, legislators, religious leaders, judicial officers, traditional rulers, women leaders, labour leaders, transporters, traders, keke and okada operators, students and other leaders from all walks of life in Igbo land attended. It was a five-day event, and at the end of the programme, our people were satisfied and felt strongly that there was the need to restore and rediscover our values. Secondly, there should be a functional and qualitative education in the state. Moreover, I will bring the Water Corporation back to life. I will prioritise building functional, basic utilities and infrastructure for industrial growth and development. As an industrialist, I know that when you have industrial growth, jobs will be created for our youths. And when our youths are engaged in gainful employment, our streets will be safer. Then, many social vices will be curbed. The basic healthcare services will be available for all Anambrarians as it is done in other parts of the world where I have lived. I am often surprised when I see how much the state government pays to our civil servants. The truth is that, if you want to get the best out of them and reduce corruption, you should be ready to pay them well.

    What is your assessment of the Obi Administration?

    Governor Peter Obi has done his part, based on his abilities and that probably, is his best. That is okay. One can only give what one has. No one can give what he does not have. However, the reality on ground is that Anambra still yearns for transformation in all areas.

    What is your reaction to the insecurity in the country, especially the Boko Haram insurgency, oil pipeline vandalisation, and kidnapping?

     You cannot divorce criminality from deprivation. In a society where there are limited opportunities, people, especially youths, are bound to take to crime. However, people have to understand that there is no justification for crime. The problem, basically, is that there is social injustice such that the gap between the haves and the have-nots keeps widening. The solution to this is for the government to close this gap through gainful and unselective job creation, emphasis on skills acquisition through technical knowledge acquisition and encouraging local and foreign investors to exploit opportunities here. When people build industries, unemployed people have jobs. When they are gainfully employed, they will have no time to think of crime. Those who are busy in their places of work or business have no time to think of crimes.

    What is responsible for the kidnapping in the Southeast and what is the way out?

    Well, as I pointed out earlier, many of the crimes here can be attributed to lack of opportunities. The way out of this is to have a conducive environment in the Southeast for investment. This is a collective responsibility. The government and individuals who have been blessed by God should help in creating jobs in this region, just as it is done in the Southwest and other places.

    How would you assess Jonathan Administration?

    The leaders of the PDP have done their best. But the truth is that their best has not been enough. There was high expectation in 1999 that, by 2013, power would have been stable; millions of jobs would have been created and the economy in general would have been among the best in the world, given our vast human and material resources. But you know, this dream is yet to be realised.

    Can APC defeat PDP in 2015?

    Yes, the alliance will defeat PDP in 2015. The alliance enjoys the support of the Southwest, the Northeast and Northwest. Do not exclude the Northcentral. Even in the Southeast, many of our people just want a change in leadership, since they feel the PDP has not given them what they have expected.

    What is your reaction to the agitation for a Sovereign National Conference (SNC)?

    Well, every successful country had challenges in the past. The challenges we are having in this country, though enormous, do not defy solution. I am of the opinion that we can fashion out a way of coming together in a round table to discuss the issues affecting us. I do not think it will balkanize the country. Former President Olusegun Obasanjo attempted to do it, although it was not successful. Yes, I think it is necessary and I do not think it will affect our existence, once all groups are represented.

     

     

  • Weak transmission, gas may hinder power supply

    Weak transmission, gas may hinder power supply

    Despite the improvement achieved in power generation, there is concern that if the Federal Government does not do something urgently to strengthen the transmission network, the aspiration to attain significant improvement in power may be a mirage.

    Vice President Namadi Sambo had directed the Niger Delta Power Holding Company (NDPHC) to ensure that contractors handling projects in the National Integrated Power Project (NIPP), which would add at least 4100 megawatts (MW), to complete them by end of the year.

    With generation from the assets of the Power Holding Company of Nigeria (PHCN) and independent power producers (IPPs), generation may hover around 10,000MW but there are fears that the transmission network will not be able to wheel between 4,500MW and 5,000MW.

    The distribution segment of the power value chain might not be a difficult area following the progress made so far on the government’s privatisation of the successor companies of the PHCN. FBN Capital in email, said the Presidential Task Force on Power (PTFP), noted that Nigeria’s power generation reached a peak of 4,517MW in December, last year (up from around 3,500MW in 2011). The PTFP set a target of 7,175MW for end-2013 three months ago. The goal is ambitious, but assuming it is achieved, transmission presents an inconvenient bottleneck in the near to medium-term.

    Gas supply has been an obstacle to operation of some of the thermal plants including those of NIPPs and PHCN but the FBN Capital said the improvement in power supply last year was driven by steady improvements in gas supplies and the completion of some gas supply projects such as the Escravos Lagos Pipeline, ELP- Olorunsogo permanent gas pipeline.

    It said the boost to gas supplies led to the coming on stream of some power plants under the NIPP, which were previously gas constrained, adding that NIPP projects accounted for the bulk of the increase in power generation recorded last year.

    FBN Capital noted: “The NIPP plants are important as far the government’s target for 2013 is concerned. In fact, it is not until 2014 and 2015 that we see Independent Power Plants’ (IPP) contribution becoming meaningful.”

    However, regardless of the additional improvements that may be recorded in fuel-to-power and generation over the next 12-24 months, transmission remains the weak link in the chain. Presently, the transmission grid is capable of evacuating just over 5,000MW, the research firm said.

    Canada’s Manitoba Hydro has been awarded the contract to manage and optimise the transmission infrastructure. However, significant funding is still required to boost the grid’s evacuation capacity, which ranges between $3 billion and $4 billion per year, it said.

    “At the end of the spectrum, distribution companies (discos) also have some infrastructure issues to contend with. However, the more experienced companies among those that were successful in bidding for PHCN assets can already see some low hanging fruits on loss reduction and collection.

    “Despite obvious challenges ahead, we believe that the realisation that the impact of the power reform programme on Nigeria’s economy has the potential to be far-reaching, even more than that of the telecoms sector, will keep the reform agenda alive,” FBN Capital added.

  • Akwa Ibom to partner Canada on power

    Akwa Ibom State has sought the partnership of Canadian companies in generating adequate electricity supply to boost its economy.

    Speaking when he received Canadian High Commissioner in Nigeria Chris Cooter in Uyo, the state capital, Governor Godswill Akpabio said the state’s Independent Power Plant is producing 191 megawatts of electricity, adding that it needs partnership to generate more for distribution to consumers.

    Akpabio said: “With the recent completion of our independent power plant (IPP), we would want to partner Canadian companies to improve on the power generation and expansion of the current power to many consumers’’.

    He also sought Canada’s assistance in the development of Ibaka Deep Seaport, saying: “We will be glad to see Canadian companies coming to develop Ibaka Seaport and to partner with us on the development of the aviation sector through Akwa Ibom International Airport. Already, we are constructing an international hangar, which would make us the first state to land a Boeing 380 aircraft in the country”.

    Akpabio added: “We want to co-operate with companies in Canada for investment by bringing in more companies for investment and the development of the state. Akwa Ibom State is an economic hub; so we are building the state for the future. That is why we’re building basic infrastructure to facilitate the economic boom of the nation”.

    Earlier, Cooter said Nigeria and Canada had moved fast in their partnership in the last six months, noting that in October, last year, both countries signed a trade agreement to cement their ties.

    Cooter said his country is partnering India on the construction of hospitals, adding that in May, the Canadian government would permit Nigeria to bring 200 persons on a trade mission to the country.

     

  • 2015: Can power shift to North?

    2015: Can power shift to North?

    Prominent Northern leaders are agitating for power shift to the North in 2015. But the obstacle to this aspiration is President Goodluck Jonathan’s second term ambition. Now, the scamble for the Presidency is gradually heating up the polity. Can the North achieve power shift in the next general elections? AUGUSTINE AVWODE examines the issue.

     

    As the tempo of political activities for 2015 increases, an obvious question that looms larger than every other one is whether the Northern geo-political zone will produce the President or not. Analysts say one major obstacle standing between the region and the realisation of that dream is whether the incumbent, President Goodluck Jonathan, will run or not. He is yet to speak categorically on the matter.

    Last weekend, Niger State Governor Dr Muazu Babangida Aliyu fueled the controversy when he claimed that President Goodluck Jonathan reached an agreement with leaders of the Peoples Democratic Party (PDP) and governors elected on the platform of the party in 2011 to serve only a single term. He considered any talk linking the President with the 2015 presidential election as “speculative”.

    “I recall that at the time he was going to declare for the 2011 election, all the PDP governors were brought together to ensure that we were all in the same frame of mind. And I recall that some of us said that, given the circumstances of the death of President Umaru Yar’Adua and given the PDP zoning arrangement, it was expected that the North was to produce the president for a given number of years.

    “I recall that at that discussion, it was agreed that Jonathan would serve only one term of four years and we all signed the agreement. Even when Jonathan went to Kampala, in Uganda, he also said he was going to serve a single term. For now, President Jonathan has not declared a second term ambition and we must not be speculating based on those who are benefiting from the campaign” he said.

    The question of President Jonathan’s eligibility to run in 2015 has been a subject of legal tussle for some time now. On Wednesday, January 23, the Peoples Democratic Party (PDP) formally asked a Federal High Court sitting in Abuja to join it as a party in the suit filed by a Port Harcourt-based lawyer and PDP-card carrying member, Henry Amadi, seeking to stop President Goodluck Jonathan from presenting himself as candidate for election to the office of the President in 2015.

    Amadi named President Jonathan and the Independent National Electoral Commission (INEC) as the 1st and 2nd defendants respectively in the said suit.

    He is contending that Jonathan is no longer qualified to contest in 2015, arguing that if Jonathan does, he will be spending more than the maximum period of two terms of four years envisaged by the 1999 Constitution as amended.

    But PDP National Legal Adviser Kwon Victor contended that the PDP will be directly affected by the outcome of the suit, taking into consideration the reliefs sought by the plaintiff. In the affidavit in support of the application, Kwon argued that from the reliefs sought by the plaintiff in the suit, PDP’s right to sponsor Jonathan for the office of the President in the 2015 Presidential election is being challenged.

    He said: “This action cannot effectually and completely be determined without joining the applicant herein. By the very tenor of the reliefs sought by the plaintiff, this suit questions the right of the applicant to sponsor one of its members (Jonathan) for the 2015 Presidential election. The applicant herein seeks to protect its interest in the present action by this application.” The application is due to be heard in a week’s time by Justice Adamu Bello”.

    Interestingly, President Jonathan had responded to a similar suit equally seeking to bar him from contesting the same 2015 election on the ground of the number of oath of the same office he had taken. It was filed by another chieftain of the PDP, Mr Cyriacus Njoku, before an Abuja High Court on March 20, 2012, asking it to stop Jonathan from contesting presidential elections in 2015 on the grounds that he was already in his second term in office. Justice Mudashiru Oniyangi had earlier fixed November 13, 2012, to deliver judgment in Njoku’s suit, but subsequently adjourned it indefinitely.

    The sudden demise of President Umaru Yar’Adua is generally seen as having upset the applecart. The late President Yar’Adua, other things being equal, would have run for a second term beginning from 2011 to 2015. But his death barely three years into his first term, led to the emergence of President Jonathan. His move to vie for the position in the 2011 Presidential election led to serious division within the ruling PDP. The schism within the party pitched some of its chieftains of northern extraction, who believed in the inviolate nature of the zoning policy of the party against others who held that ‘circumstantial development’ in the polity had rendered the zoning theory void.

    In a bid to actualise its position, the region chose to go for a consensus candidate from a list of four aspirants to face President Jonathan in the December 2010 Presidential primary. A committee of 17 wise men headed by former Minister of Finance Alhaji Adamu Ciroma picked former Vice President Atiku Abubakar as the consensus candidate of the North after months of consultation and meetings. He was picked ahead of General Ibrahim Babangida, General Aliyu Gusau and former Kwara State Governor Bukola Saraki.

    A statement signed by Ciroma and Abdulkadir Sabo-Bello read in part:

    “We are glad and proud that we have finally arrived at this outcome after several weeks of hard work and wide consultations. We are proud because of the unusual honour and extraordinary privilege given us by the four gentlemen who placed their political destinies in our hands. We are humbled by the strength of their faith. We appreciate their humility and cooperation. We have been reassured by all of them that they will work together to enable Atiku Abubakar clinch their party’s ticket in the presidential primaries.

    “We thank all Nigerians, supporters and critics alike for their views over these past several weeks. While we note these views and respect each one of them, we insist that no individual, organization or society dreaming of success and greatness can achieve these dreams without respect for others and honouring agreements voluntarily entered into. This is especially so where these agreements have been transformed into a binding document, a constitution, which governs the conduct of those who subscribe to it.” President Jonathan defeated the consensus candidate and went on to win the election proper.

    Since then, many northern leaders have expressed the view that the region will without fail produce the President come 2015. But will it be possible, will it not be?

    Speaking to The Nation on Sunday, former Commissioner of Police, Lagos State Command, Mr Abubakar Tsav said for the North to produce the President in 2015 there must be a high level of unity among the political elite of the zone. He said a common undercurrent in the polity is how to make people or the political actors respect or implement the zoning arrangement.

    “What people are saying is that President Goodluck Jonathan is serving a second term now and that if he is allowed to run and wins in 2015, he would be taking the oath of office for the third time, which they say, is against the Constitution. Therefore, for the North to produce the President in 2015, there must be unity among them. It really depends on the level of unity that exists among the political elite of the region. And I think there will be the need for the region to come up with one candidate like a consensus arrangement that they had in December 2010. We cannot blame them for agitating to produce the president because people are trying to make sure that the zoning arrangement that was entered into by the political class is completed or respected”.

    Tsav said that the proposed new party, the All Progressives Congress (APC), will provide an ample opportunity for many political leaders in the zone to realise their dream. He said many people are so disenchanted with what is happening in the PDP that they would not blink an eye before joining it once it comes on stream.

    “The new party has come to provide an alternative platform for many PDP members who are so disenchanted with the way things are going in the party. In particular, they are disenchanted with the idea of taking undue advantage of what happened to President Umaru Yar’Adua; many people are not happy about it and that is why they are waiting on the wings”, he said.

    But a politician, Dr Junaid Mohammed, dismissed the notion of producing a political leader on the basis of the theory of zoning. He described the concept as undemocratic and went to say that those pushing for it are leading Nigeria on the path of former Yugoslavia, saying it could lead to a break up of the country.

    He argued that anyone who is interested in ruling the country should be allowed to run provided the elections would be free and fair.

    “Is zoning arrangement enshrined in the Constitution of Nigeria, Why should the PDP or anybody else be bound by it? Zoning or rotation has never been part of our Constitution. It is at best an understanding within one of the 63 political parties in the country. Many people imagine that the North should be given the Presidency as a right, not on any other factor, it is a misguided conception. As far as I am concerned, I have never believed in zoning or rotation, I have never considered the concept of zoning or rotation democratic,” Junaid said.

    At a point, it was alleged that some northern leaders under the aegis of the Yar’Adua group were meeting regularly with the sole objective of how to thwart alleged President Jonathan’s 2015 ambition. But the allegation was vehemently refuted . One of the leaders of the Yar’Adua group, Senator Adamu Aliero, in a statement said: “We did not meet in Abuja , Katsina or Kaduna as insinuated in the report. We have no reason to conspire or plot against President Goodluck Jonathan who was Vice-President to the late President Yar’Adua.

    “Since Yar’Adua’s death, we have done our best to support the administration of President Goodluck Jonathan and our party, the Peoples Democratic Party (PDP) which went ahead to win a re-run poll in Kebbi State.”

    Aliero, a minister of the Federal Capital Territory during Yar’Adua’s administration, stated that the reports were being sponsored by those who were bent on “whipping up sentiments and to create crisis of confidence” between members of the group and the President.

    “There was no any iota of truth in the story, it must have been a mere imagination of the reporter in question. All those mentioned in the report were shocked by the extent to which their integrity was impugned. In the last three years, those of us referred to in the story have not held any meeting over any national issue not to talk of 2015. Instead, we have been going about our activities quietly with utmost decorum”.

    A chieftain of the party from one of the north Central states who craved anonymity revealed that it is almost a foregone conclusion that the President will be seeking the ticket of the PDP in 2015. He alluded to the decision of the party to be joined in the case in court and besides, he referred to the series of inter- regional meetings held in the guise of ‘fostering political understanding’ in recent time. The source said the North will not fail this time around again and they have a big window of opportunity in the newly floated APC and that most of the governors, particularly those who are on their last tenure, will put their feet down this time around.

    “It is apparent that the President will seek the ticket of the PDP in the 2015 Presidential election. What I also know is that the political leaders from the region will not fold their arms and watch things go the way they went last time. Most of the governors are in their last term so they cannot be held to ransom the way they were treated the last time. And if the party feels strongly that the incumbent must return again, then it must be prepared for the backlash,” he said.

    However, Special Adviser to the President on Political Matters Alhaji Ahmed Gulak, has said that nobody can stop President Jonathan from contesting the 2015 election except by the president’s personal volition. He insisted that his first tenure actually started in May 2011 and not 2010 as often claimed by ignorant and mischievous politicians.

    “His tenure would have been abridged if he does not contest in 2015. Yar’Adua was incapacitated and he was naturally allowed to act. The law recognises Jonathan’s first tenure with effect from May 2011 and nothing more.

    “If anyone says Jonathan should not contest in 2015, he would have spent only five years. My position is that if Mr. President is not going to contest, let it be on his own volition but let nobody intimidate him out of office for their selfish political reasons.

    “If the President decides not run in 2015, so be it, but let no individual or group attempt to deny him his constitutional entitlement. It is not going to happen. Neither APC nor Panadol can stop him”. Can the North stop him this time around? Nigerians are waiting.

     

  • ‘Power must shift to Southeast’

    ‘Power must shift to Southeast’

    Tony Osita Oganah is the National Publicity Secretary of Ohanaeze Ndigbo. He spoke with JUDE ISIGUZO in Lagos on the agitation for power shift to the Southeast.

    How did the current leadership of Ohanaeze Ndigbo emerge at the Enugu congress?

    The highest body in Ohanaeze is called Ime Obi. It is made up of past and present leaders of Ohaneze Ndigbo, governors, and others. The Ime Obi came up with the memo that power must be handed over early this year. The National Electoral Commission (NEC) adopted and approved the guidelines that the national election must take place on or before 15th of January. So, if you conduct the election on 1st, 2nd, 3rd or up to 10th, you are in order, but if the election is after the date, you are not in order; you are on your own. At the end of the day, the election was conducted, although it was not perfect. What we used in voting were mere papers with names of the candidates and there were wastebaskets that served as election boxes. So, no matter who won or lost, the will of the people prevailed.

    But controversy marred the election…

    There was a period when the former secretary didn’t want the election to hold. 14 out of 15 members of NEC of Ohaneze wanted the election to hold, except the secretary who walked out. The man was ignored. The elections were conducted and the elected people were sworn in. Another group came up and said, ‘We don’t recognize the leadership of Ohaneze led by Ambassador Ralph Uwechue and anything done by Uwechue, we are trying to undo’.   I am happy to report that   their so-called election scheduled to hold in Abaliki recently did not happen because the militant arm of Ohanaeze (MASSOB) made sure that those elements that portray Igbos in bad light were stopped from holding a contrary election. They did not allow the Abakiliki election to hold.  This is to show that the Igbo’s are speaking with one voice now.   I am happy to report that the so-called election didn’t take place. Chief Garry Igariwey leads the new executive and the Secretary General of Ohanaeze is Joe Nwaorgu, a former University lecturer, who holds a doctorate degree in Estate Surveying.   Anybody dealing with any other group or person is making a big mistake. Once we are inaugurated, we will begin a new journey of giving Igbos a befitting leadership. First thing we have to do is to reach out to other aggrieved groups. Ohaneze belongs to people of Igbo extraction. No one needs a special invitation to attend Ohanaeze meetings. Once you are from any Igbo-speaking part of the country, it qualifies you to be a member of Ohanaeze. We want to tell the aggrieved members that this is not the time to go to court; it is time to rally round and build Igbo nation. You can see what the Yoruba people have achieved and what the Niger Delta people are enjoying today. It is because they are organized. We are begging our brothers to come together; everybody cannot be in the executive of Ohanaeze. Some of them can serve in the various committees. We are appealing to them to support the Chief Igariwey led-Ohanaeze in the larger interest of the Igbo nation. We should come together to reach out to the Niger Delta, our brothers in Hausaland, our Southwest members and collapse our selfish interest for the group’s interest. This executive under the Ohanaeze Constitution would last for four years. After four years, other people would take over.  Let us come together, pull our resources to achieve the Igbo agenda.

    What is the stance of the new leadership on the agitation for an Igbo President?

    For Igbo Presidency, we owe no apology. Anytime President Jonathan leaves, an Igbo President has to take over, but the choice is left for Mr. President to decide whether he wants to leave in 2015 or 2019. I said this based on the constitution, which allows the President to contest for a second term. So, it depends on him to decide whether to renew his mandate and also to Nigerians whether they still want him, but the issue is that, whenever he is leaving, an Igbo person must replace him because we were all there when Obasanjo ruled for eight years. It is unfortunate Nigeria is running a tribal system of government. But it appears that it is the only way we can mould ourselves together because the office of the President of Nigeria is about the most powerful office I have ever seen. When I read the Nigerian Constitution, I am always marveled because what Jonathan is empowered to do, President Obama cannot even do them.

    If Jonathan decides to step down, we have to get ourselves really organized. Nobody gives power; so, we have to put in our own efforts. It is a collective responsibility of all Ndigbo. We are not against Jonathan’s second term; it all depends on him, his wife and his God. So, as far as his decisions are constitutional and equitable, Ndigbo supports him till whenever he wants to step-down. So, it is the turn of the Igbo man.

    How would Ohanaeze handle the challenge of disunity among the Igbo elite?

    This time around, I can assure you that Igbo people are speaking with one voice. We would engage our neighbors like the Southwest, South south through peaceful dialogue.

    You would agree with me now that you cannot see an Igbo person doing street begging. Our main agenda in Ohanaeze is to get the environment healthy and conducive to encourage entrepreneurial development and skills acquisition, knowing fully well that our people are businessmen. In terms of crime, 85 per cent of criminals are doing it because they want to make ends meet. So, if the environment is conducive for business, with employment opportunities for our graduates, crime will reduce drastically. Igbo people must be united and stand firm, ahead of the future.

    The first thing the new executive of Ohaneze   plans to do is to go and pay courtesy visit to President Goodluck Jonathan.  We would also make him understand that we are all strongly behind him. Then, we intend to go and visit the Southeast governors and governors of states where you have large population of Igbo like Lagos, Delta, and Rivers States. We are practical people dedicated to the Igbo course.

    How far about the elections in the state chapters of Ohanaeze Ndigbo?

    We have actually concluded all the elections. We started from the local governments to states and then, the national election, which brought us to power. Those that won in local and states were the delegates to the national election.

  • Power sector reform: Can Nigeria achieve global best practices?

    The primary objective of reform is to bring about positive changes in an organisation or system. Reform unveils a systematic notion of change with different outcomes. The need for change emanates from data that suggests different business strategies in order to stay competitive. Public or private entities need some sort of change, improvement, amendment of what is corrupted or defective to improve so that they may become more efficient and more transparent.

    Reform could be a challenging process for decision makers because of its nature of thinking outside the box in order to become more creative and improve on risk taking abilities. In addition, reform is a process geared toward a positive and more profitable outcome to benefit all stakeholders.

    In the case of Nigeria, the power reform is long overdue. A successful power reform leading to change in the current “blackout series” will ensure that power is generated, transmitted and distributed efficiently for the purpose of “lifting the veil” from the eyes of Nigerians so that they can see “the light”. With the theatrics shrouding the power issues in Nigeria, many Nigerians have resigned themselves to the “indelible darkness” knowing that the so-called “cartel” will never let Nigerians enjoy power and electricity.

     

    Power sector reform

    The power sector reform law was passed in 2005. It was called the Electric Power Sector Reform (EPSR) Act and drafted to provide the necessary framework needed to begin the process of reform of the power sector in 2005 all in accordance with the existing policies of the National Electric Power Policy (NEPP). It aims to remove the operational and regulatory responsibilities of the electricity parastatal from the coffers of the Federal Government. In addition, the Act provides the necessary framework for competition and monopoly of the sector by creating a regulatory body that will license and regulate the generation, transmission and distribution and supply of electricity for the nation. The Act will also allow for the determination of appropriate tariffs. It further repeals the Electricity Act and the National Electric Power Authority Act (NEPA). The Act was divided into three main sections namely: The Power Generation sector, the Power Transmission sector, and the Power Distribution sector.

    It is worthy to note that before now, there was no national regulatory framework for power. The reform law enabled the following: Unbundling of the power sector, and decentralising of the power sector.

     

    What is to unbundle and decentralise?

    If we look at the power sector from the perspective of the defunct National Electric Power Authority (NEPA), one might agree that “unbundling and decentralising” are the actual ways to go with the power issue in Nigeria. This is what reform is supposed to do. It looks at the existing organisation or parastatal, takes it up wholly or partially, cuts it up in chunks, sub-divides or merges several or whole units into more effective and efficient units. NEPA was a bureaucratic organisation, which needed to be decentralised, its power diminished or minimised and units dislodged to create a free, independent, efficient and effective and sometimes smaller units.

    Eighteen distinct companies were carved out of these three sectors in preparation for privatisation, which currently is ongoing. The generation company (Genco) has six companies while the distribution company (Disco) has 11 companies also in different zones, such as Enugu, Lagos, Kaduna, and Ibadan, among others. The transition company has one company which is owned by the government due to security sensitivities and managed by a private company.

    Two corporations National Electricity Regulatory Commission (NERC) and Rural Electrification Agency (REA) were created. They function as autonomous units. However, the minister of power still supervises the whole power sector. The organisational structure changed for the purpose of privatisation.

     

    Why unbundle and

    decentralise the sector?

    The overarching objective of the electric power policy statement is to make sure that Nigeria boasts of an electricity supply industry (ESI) that can adequately address the demands of the citizens in the 21st Century as far as power is concerned; this requires a world- class reform process at all levels of the industry.

    The power sector reform therefore, must meet its obligation to break-up and regionalise the entire sector otherwise it has not met the challenges of reform. Breaking up and regionalising these new divisions will be more effective for distributing the power to various localities of the states and the nation at large. When the Discos receive their mandate, they must begin to strategise on how to dispense the power that has been generated to reach the remotest units of their specific zones. This single act alone if managed properly can bring about the change that Nigerians seek. This is the goal of reform to take an existing problem, study it, analyse it and carve out various meaningful solutions from the original problem while adding new and effective tested measures to make the old problem become efficient. Nigeria must take the approach of reforming several public companies in line with best practice for meeting global trends.

    The unbundling will be such that there will be a vertical unbundling of Power Holding Company of Nigeria(PHCN) whereby it will be divided into three segments: The Generation sector, Transmission sector and Distribution/Market sector. In addition, there will be a horizontal unbundling with the creation of PHCN successor companies and several transition reform entities will be created. A complete overhaul of the previous PHCN will be taken over by a complete new structure with system and market operators established and full transition steps towards a well rounded competitive market to follow.

    To introduce competition, functional segmentation of PHCN is crucial. This required: the separation of transmission and dispatch from generation; the establishment of a transmission company; the establishment of a number of competing, privately owned generation companies from existing PHCN generating facilities; the opening up of generation to new market entrants; and the establishment of a number of distribution and sales (marketing) companies, which will also be privatised.

     

    Goals of unbundling, decentralisation

    The government aims to provide a world-class ESI that will ensure an efficient way to manage the generation, transmission, distribution and marketing of power and electricity which will be safe, clean, affordable and efficient plus will have the ability to yield profit for the nation while assuring that it is cost-effective. In addition, the ESI will be able to attract private investors not just from,but also all over the world.

    The power sector will be developed under a transparent and effective regulatory framework, which aims to develop and enhance indigenous capacity in electric power sector technology, and to participate effectively in international power sector activities in order to promote electric power development in Nigeria, meet the country’s international obligations and derive maximum benefit from international cooperation in these areas.

    It also aims to ensure that the government strips its interest in the state-owned entities and establishes the key principles of restructuring and privatisation in the electric power sector while encouraging competition to come across growing demand through the full reformation of the electricity market, and to evaluate and inform electricity laws in toeing the line with the necessity to introduce private sector operation and competition into the sector.

    For quite some time, one can agree that many things in our society both in the public and private sectors need to be fixed because they are utterly broken. One may argue that those responsible for safeguarding our prospects are unfortunately protecting their personal interests. For over the past two decades, many organisations and countries have been yearning for reforms in one or more of their operational sectors. Some have managed to acquire the needed reform to stay competitive or to rise above the norms.

    Reform calls for open-minded approach, critical thinking sphere, risk taking intuition, and desire to make a difference for all. Research has indicated that reform is an acrimonious process for the elites as they may lose grip on their wealth. On the other hand, reform brings a comprehensive change to the industry to serve ‘all’ the stakeholders and not just the elite class.

     

    Global trends

    From the 1930s to the 1970’s, the evolution of electricity in the United States was monopolised and operated on the vertical private investor owned utilities (IOU). The strategy of deregulation in the early 1970’s in the US allows for competition in the wholesale power market and eventually leading to the retail sector. The reform policy supports regulation that suppresses duplication and foster new ideas to elicit the economically desirable outcomes. Hence, reform should capsize the way we do business by introducing new paradigms to meet the needs of today’s competitive and global market.

    The US pioneers the concept of reform in almost every industry to allow creativity, competition, critical thinking, risk taking, and self-determination to meet the need of the consumers. The US’ strategy in energy deregulation was a gradual process that led to legislative action by Congress. US deregulation called for sector-by-sector beginning from the wholesale to the retail of the power supply to avoid networks duplication and inadequate use of the country’s resources. The reform process in the US not only focused on states or companies but more importantly on consumers. The consumers’ focus subsequently led to price competition. The retail price competition introduced by the state of California in 1999 quickly spilled over two- dozen states including New York, Texas, Massachusetts, Ohio and New Jersey (Das, 2010). Although the retail price competition is an achievement in the reform process, the consumer’s freedom to choose his/her energy supplier created unprecedented competitive energy market. The US roadmap in energy deregulation from the early 1970s to the mid-2000 showed significant achievements despite some limitations or setbacks in the retail energy competition.

    The US energy reform achievement has prompted several countries such as India, Mexico, Canada, and Venezuela, just to name a few, to begin making changes in their energy policies in order to cope with the challenges ahead.

    India: India has taken a particular interest in the US energy reform because it must attract investors and meet the unprecedented growing demand of its consumers. The competition in itself is geared toward bringing down price of goods and services and to provide better services to consumers.

    • Dr. Njideka Kelley and Dr. Komlan Badake are of New Generation Consulting Resource Solutions, Cresco, Pennsylvania, United States. They can be reached via njigirl@yahoo.com, www.newgenerationconsultingrs.com.

  • CBN to increase N300b power fund

    CBN to increase N300b power fund

    The Central Bank of Nigeria (CBN) plans to extend the N300 billion Power and Airline Fund (PAIF) to increase funds for power sector projects and further create amenable structures directly suitable to the peculiarities of the power sector.

    The extension is one of the major planks of the apex’s bank and banking sector’s economic development programme for this year. It will include the size, tenors, structures, projects, collaterals and other terms in a holistic approach to further align the financial system to the critical funding requirements of the power sector.

    The power sector transformation is a major thrust of Federal Government’s Transformation Agenda with a major target of generating 40,000MW by 2020.

    However, it has been estimated that the power generation segment would require investments of at least $ 3.5 billion yearly over the next 10 years to meet the target.

    The CBN launched the power sector fund in August 2010 with the objectives of addressing the critical finance needs and peculiarities and stimulate lending to the power sector. Managed by the Bank of Industry (BOI) under the technical assistance of the Africa Finance Corporation (AFC), the power fund prioritises key power projects and provides funds at an interest rate of 7.0 per cent payable on a quarterly basis. The fund covers refinancing of loans and leases as well as working capital for the sector.

    Sources said the extension is targeted mainly at increasing funding to the power sector but would also consider inputs from banks and other stakeholders on other structures and terms that would further improve the catalytic impact of the fund.

    The sources noted that the extension of the power fund was in line with the responsibilities of the apex bank under the founding charter of the power fund.

    Under the charter of the power fund, the CBN is saddled with articulation of clear guidelines for the implementation of the fund, provision and determining of the limits of funds, specification of the lending rate and review of review of the fund guidelines as may be necessary from time to time.

    This initiative could help to quickly unlock the potential benefits of the power sector reform. The power fund’s objectives include accelerated development of electric power projects, especially in identified industrial clusters, serving as credit enhancement instrument to improve the financial position of banks, leveraging additional private sector investments in the power sector and down the line, improved power supply, employment, and enhanced living standard for Nigerians through consistent power supply.

    Eligible projects and companies for the power funds cover any corporate entity, duly registered in Nigeria, involved in electricity power supply value chain that includes power generation, transmission, distribution, gas-to-power projects and associated services.

    Also, eligible projects can be promoted by private or public sector sponsors or a combination of both but must be structured either as profit-oriented business or a public service, provided that contracted cash-flows or financing support exist to ensure repayment of principal and interest, as well as long term viability.

    Also, the projects could be already existing and in operations, in design and development, under construction, or existing but operationally inactive.

    Facilities that could be taken under the power fund provided for the whole gamut of needs of operators and include long term loans for new power projects, refinancing loans for restructuring of existing loans and leases and working capital loans.

    The power fund could provide as much as 70 per cent of the total cost of the project while the loans shall have a maximum tenor of 15 years as determined by the project’s cash flow profile not exceeding July 31, 2025.

    The fund provides for moratorium of up to six and a half years on the amortised repayment schedule of the loans. No upfront fee or charge is deductible on any facility under the fund.

    In recognition of the importance of the financial system as a catalyst for national economic development; the CBN had in 2009 started a regulator-led collaborative process to enable the financial system participate more effectively in the Nigerian real sector.

    The apex bank uses the Bankers’ Committee to enable banks to articulate and strategise on ways to boost lending to most critical sectors of the economy for sustainable growth.

    The Banker’s Committee had during its fourth Annual Retreat held in Calabar in December last year reaffirmed its commitment to providing finances to the three key sectors of power, agriculture and transportation.

    It noted that it decided to focus on the three key sectors because of the foundational importance of the sectors for driving growth and development of the economy.

     

  • Power, authority and security

    Venezuela’s President Hugo  Chavez’s  battle  with cancer  and the ensuing  constitutional crisis  over his absence at his swearing in ceremony and Barak Obama’s resolve  to rein in the gun lobby in the US after his own swearing in for a second term provide immediate  and ample  ammunition  for today’s analysis. If  you add to that Afghanistan‘s President Amir Kadzai‘s cap in hand visit to the US  to ask for an extension of the stay of US troops in his violence prone nation  and the reported call by the Chairman of the AU  that NATO  should intervene on behalf of the AU  in Mali,  then you have an idea of the sort  of pot pourri that we are about to digest here today.

    Firstly, Hugo Chavez’s cancer treatment  in Cuba and his absence at his own party as it were created  a problem of constitutionalism, legitimacy,   legacy, authority and performance not only for Venezuelan politicians and leaders but also  for  a   concerned and  watching global audience. These are issues we have to dilate on toda . However,  Obama‘s  delegation  of power to Vice President  Biden   the duty of making the US safe while not compromising   the right of US citizens to protect themselves; a right massively and vehemently championed  by the powerful lobby of the National Rifles Association -NRA- showed that the US president is more than worried about the way some crazy Americans have been shooting innocent ones of all ages indiscriminately because they have easy access to guns and are using them lethally to kill as  if America is at war when it is not, at least  for now,  on US territory.

    The  delegation  of power  as Obama  prepares for his swearing in for a second term   opens up issues of security, stability, human welfare and rights in the world’s most powerful democracy. Similarly the Afghanistan president’s visit  raises issues or matters arising like sovereignt, corruption and the limits of immunity from prosecution for anyone and not only US soldiers for whom this has been requested in Afghanistan. Mali‘s  case   however is  just  a lesson  in the abandonment of responsibility and ceding  of regional power and authority by the AU.

     Hugo  Chavez’s case can easily be compared with the case of the first Nigerian president to die in harness – President Yar Adua  and his succession by his Vice President based on the principle of necessity evolved by the Nigerian Senate for that occasion. But then the comparison stops there in that the Nigerian president died but Hugo Chavez is still very much alive although he is away in another nation receiving cancer treatment.

    The Venezuelan Supreme Court  ruled this week that Chavez could be sworn in later when he is well and found absurd the suggestion by the  Opposition that he had lost the presidency because he had failed to show up  for his swearing in as constitutionally scheduled. The Supreme Court also ruled that continuity had been established by his election and the swearing in is  just  a formality. The Supreme Court  then ruled  that  the  Vice President is to  act as president henceforth till Chavez is able to attend his swearing in.

     This  to me is like stating the obvious but in politics at times what is quite apparent and  obvious  can be lost in plain sight just as the Venezuelan Supreme Court  boldly asserted  and ruled.This ruling to me  is constitutionalism without mischief and the  Venezuelan Opposition  must  accept that it can not get through cancer affliction of the winner of the election it lost,  the quest  for  power it lost clearly at the last presidential election.

    This is because sickness is a human condition and no constitution on earth yet has decreed that a man cannot be sick before and after his election . Early last year well  before the election I had written that Chavez was playing god  and may never  be able to take part in the election  he   subsequently won. But then,  he had the guts to go through and he has my admiration albeit grudgingly.

    In  addition  there is great evidence that Chavez  has raised the standard of living of his people in terms of housing and education as a populist and socialist leader committed to the welfare of his people and ipso  facto   gets their sympathy  in his battle with cancer . The Venezuelan Supreme Court  to me has fulfilled its duty with dignity  and affirmed constitutionalism, the  rule  of law and stability in the nation. However  this is in spite of  the posture of the  Opposition, which while accepting the verdict has accused the judges of the court  of  cronyism  – which to me is no more than  a case of sour grapes of wishing an elected man dead and out of the way when his time has not come. That  certainly is unfair  and politically  unsound as we are all mortal after all and even Chavez cannot be an exception.

    I watched the American gun debate this week on CNN and it is obvious that the president must act fast and alone if any meaningful  action is to be made into law to deter killers and protect potential and real victims in the US. I watched a man who  said  he  wrote to Congress that Americans should not be discouraged from having sophisticated weapons to defend themselves and that making ownership of guns un transferrable  disarms generations of the same family. He  even went on to narrate that K14 rifles were  simple weapons until an expert showed him that under some circumstances they could be real war weapons and more. The expert went on to explain that while Americans may need weapons to protect themselves they do not need war weapons like the one being used in Afghanistan and Iraq  to protect themselves at home.

    Which to me sounds reasonable  and should be the practical solution rather than the NRA formula that asks that all schools in the US must have an armed guard like a nation under siege from its own people. In addition the decision by some US trade unions to disinvest  their pension funds from big companies like Wal Mart, the world’s biggest  super mart and reportedly the largest   global seller of guns and, is  a step in the right direction to challenge the impunity of the fierce pro  gun lobby in the US led by the infamous NRA and other hypersensitive, and overly security conscious gun lovers  and associations in  the US.

    In  the case of the Afghanistan president’s visit to the US  to ask that some US soldiers be stationed in Afghanistan after the announced departure date of 2014 for US troops  in that nation, one must appreciate US concern to keep to its announced schedule. Indeed the Americans seized the occasion to announce that all US troops will come back except Afghanistan gives US troops to remain,  immunity  from prosecution. Really I think the Americans are just telling the Afghan president to get lost  as I do not see him capsizing and accepting the immunity condition.

    This is because he would be short changing the sovereignty of his nation by agreeing with the immunity option  which really is an insult . But then the Kadzai regime in Kabul is said to be so corrupt and so afraid of its own shadow and security  that it would do anything that would keep the Americans around   post 2014  to protect it from the fury and  scorn of its own people.

    Yet I accept a deal  has  to be struck one way or the other and I expect the Afghan president to need the Americans who upheld his relection even though they knew he rigged the last presidential elections massively to hang around.

    This is because  security business is good business for the Pentagon and  military – security complex that the war on terror has spawned globally and which is booming like wild fire  in the opium infested mountains and fields of Afghanistan. How  that translates however into security for a corrupt government in   Kabul is a wonder to be seen. How it also makes  the Taliban  more friendly towards the US  and less terror  prone  is the formidable challenge the US and its allies in Afghanistan face between now and 2014 and beyond.

    Lastly the news that the Malian army had chased the Islamist occupation army out of a town –  Dountza in the north east,  in Mali  was cheering news because this was the first time the Malian army had shown some spine or mettle since invaders seized the northern part of Mali. The  army had shown more  interest in ousting its elected  civilian bosses  than  in protecting the territorial integrity  of Mali in recent times. It ousted the last civilian president because it said the government did not give it sufficient ammunition to repel the invaders of northern Mali.

    Now  it is doing its primary duty and the AU  is calling for NATO intervention. I think that is an extravagant digression and it shows that the Beninois President   Thomas  Boni  Yayi  doubling as AU Chairman  is out of his depth at least in regional diplomacy. This is because the UN Security Council has already approved a  force of 3000 for Mali and Nigeria is sending 600 men so why the call for NATO support? ECOWAS should pull its weight and set the ball rolling first by allowing Nigeria to take the lead, instead of the usual Francophone distrust and jealousy of Nigeria’s ample regional leadership pedigree in such matters  as in Sierra  Leone and Liberia.

    In addition the Malian Army should be encouraged in its new found courage to defend the territorial integrity of Mali as  this is the best way to drive the invaders away rather than asking for manna to fall from heaven with NATO.

  • Leaders, power  and legacies

    As  mortality beckons the great Nelson Mandela I recall the Chinese saying  that says-count no man lucky until his death. With Mandela, at this stage of his life, and even well before now, one can easily say he has been an extremely lucky man and he has really earned that luck, right before our eyes  Today we discuss Mandela’s luck, an enduring one at that and compare it with those of other world  leaders who are well, alive and very powerful but who must tremble at the prospect of the saying that no man can truly be said to be lucky until his death.

    We  look at events in Ghana where the incumbent president just won the presidential elections with just over 50%  of the votes cast  and the opposition is contesting the results  and has gone to court.  We  examine the situation in Egypt  where  the president has kowtowed to protests on his seizing the powers of the courts,  only to proceed on a referendum that will give him the powers he had seized and returned under duress – by the back door.

    Of course the Egyptian people are still on the streets crying foul and saying they did not uproot one  dictator  planted by the army for years only for him  to be replaced by another one they just elected through the ballot box. Which  again puts  nagging doubt  on the desirability or otherwise of democracy in some nations and circumstances globally. We  end up again  with S Africa   where a unique transition of leadership is  taking place  again  by the ballot box. In  all these  instances we have at the back of our mind the Chinese saying – count no man lucky until his death.

    Let us go back to Mandela and his fight with mortality  to which he must succumb as he is mortal. But Nelson Mandela,  the world’s most famous prisoner is already destined for immortality in the way he fought for the liberation of his nation from the shackles of apartheid.

    He  was honored with the Nobel Prize for peace with his compatriot and president of S Africa  de  Klerk with whom he negotiated the exit of apartheid and the enthronement of democracy in what has become the Rainbow nation today. But it is in the way that he shunned power  and served his nation for only one term of five years  during which he forgave his jailors  through The Truth and Reconciliation Committee  headed  by another Nobel Laureate Desmond Tutu,  that Mandela secured his immortality  as a reference point on selfless leadership,  globally and eternally.

    At  that  time Mandela would have been hailed as the Messiah if he  had wanted to be a life president of S Africa. After him S Africa has had what I will  call two and half presidents namely Thabo Mbeki who served for almost two terms and Kwagima Motlanthe the present Vice  President who held fort briefly  after Mbeki was defeated in a leadership contest of the ruling ANC   by President Jacob Zuma who had been sacked by Mbeki   as  Vice President  for corruption.

     Now  this week the ANC  is having its national conference at which it will elect its leader who automatically becomes president of S Africa as  the ANC is assured of 60%  of the votes cast in any election in S Africa. This time however both the President and Vice President of S  Africa   are vying for the leadership  of the ANC  although Zuma is favored to defeat his Vice. One  thing that is certain is that S. Africans are disenchanted  with the performance of Zuma as President. Mbeki this week said that S Africa is drifting as a nation and something needs to be done urgently. The  Marikana Mine shooting of 34 miners by the Police recently is a great dent on the leadership credentials of the ANC  under Jacob Zuma.

    The  horrible fact that the survivors  of the Marikana shooting were first charged to  court  under an apartheid law still in the statute books before they were left off, showed that apartheid has not died a natural death when ANC  took power democratically  and till  the Marikana   incident. Also,   Zuma’s traditional ruler life style of four wives and 21  children and a renovation of his country home with $24 m  when miners were asking for  pittance as wage increase  showed that Zuma has become power drunk  as the leader  of a popular party in power in S/Africa  namely the ANC. Worse still Zuma’s defence of his insensitive profligacy that he took mortgage on the renovation of his country home is like adding insult to injury. Zuma’s actions  bear out vividly a good example of the dictatorship  of the majority  in any nation especially S Africa at this point in time.

    If  care is not taken,  however,  Egypt  under its President Mohammed Morsi is headed in the same direction as the ANC in S/Africa. This  is because the Muslim Brotherhood is well organized in Egypt and has proved its planning and organizational capabilities in the way it has survived several dictatorships in Egypt. The Muslim Brotherhood survived under Gamal Abdel Nasser  and its member killed the late Anwar  Sadat and survived the government clamp down that followed the assassination.

    Now the Muslim Brotherhood has its own  member as president from a free and fair democratic election in Egypt  and who can really blame it for having things its way  especially as democracy is intrinsically a game of numbers  and it has the majority as well as organizational skills that the other opposition parties lack. This  means that secular Egyptians and Christians are in for a tough time in Egypt’s new democracy under the Muslim Brotherhood and that really is the unfortunate truth.

    In  Ghana  too the election results  have divided the nation into two equal parts yet one can claim victory as there  is no room for a run off election. The  incumbent president who took over on the death of his boss has now been legitimately  elected. The circumstances seem similar  to that of Nigeria  as well as  the succession. Unlike  Nigeria Ghanaian leaders have not gone to court in the last two elections in that nation. Now the losers have gone to court alleging irregularities, which  is the Nigerian way.

    But  then a result that involves a victory of just over 50%  can be painful for the losers because of its closeness. A  way out would have been some form of power sharing or proportionate  representation. That however will depend on the constitution which mostly as a document is blind until situations such as this arise   and legal gymnastics take over . I  bet Nigerian lawyers are taking the next  flights to Accra to participate in what they have perfected at  the expense of our fledgling  democracy, which is post election litigations. I really wish Ghanaian politicians the best of luck especially as oil too is flowing in Ghana now.  Anyway I fervently   hope Ghana and Ghanaians do not swallow and follow the Nigerian example hook, line and sinker on elections and litigations.

  • Fed Govt, Chinese firm sign N162.9b power pact

    The Ministry of Power and a Chinese consortium, CNEEC-Sino Hydro Consortium, yesterday signed a N162,990,364,379.30 agreement for the construction of the 700megawatts (MW)Zungeru hydroelectric power project.

    The ceremony was held in Abuja after 30 years of the conception of the power plant in Zungeru, Niger State.

    The Minister of State for Power, Hajiya Zainab Kuchi, said the Chinese company would complete the project within 48 months.

    She said the Federal Government is financing 25per cent of the project while the Exim Bank of China would provide the 75per cent balance.

    Kuchi said: “The source of the funding is from an arrangement with Exim Bank of China for the 75 per cent of the cost. The counterpart funding balance of $309million is currently available with the ministry.”

    The minister explained that at completion, the project would generate revenue for the repayment of the loan.

    According to her, the hydro-power project will create over 1,000 direct jobs, which will boost the economy.

    She added that the contract agreement allows the use of competent local sub-contractors and direct labour to complete it.

    Nigeria currently generates about 4,200MW from the national grid.