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Tuesday, February 14, 2012

Unending wait for improved power supply


By Paul Arhewe

One wonders if the exclamation: " Up NEPA" whenever electric power is restored in any part of the country is still right, especially now that the Power Holding Company of Nigeria (PHCN) has been taken over by 18 successive companies.

The Federal Government aims to bring about effective delivery of electric power; hence the monopoly the electricity giants (NEPA and PHCN) enjoyed over the years may give way for the much touted deregulation of the power sector. However, I don't think any other government agency or corporation has caused Nigerians the kind of nightmare they suffer in the hands of the PHCN or NEPA, while the latter existed. Till date, the corporation' s services are still growing from bad to worse, despite the huge fund the FG allocates to the power sector. When President Goodluck Jonathan took over the mantle of power, like the predecessors before him, he promised to declare a state of emergency in the sector. The nation has been waiting to see the Jon- athan miracle. For over ten years, stories of unbundling NEPA, or is it the PHCN now, have been running. But from lack luster manner the FG is handling the process indicates that the true deregulation of the poor is still neither here nor there. That the FG has set aside N100.7million in this year s budget, and from the country's dwindling resources, for powering generators in Aso Rock, is an indication that Nigerians have a long period to wait before the dawn of better power supply. It is like the journey of the Israelites to the Promised Land.

Increasing investment and the expansion of infrastructure for the country's power grid has really lagged behind since the last four decades, even as the country s population continues to grow. This mismatch has led to inadequate and obsolete power equipment across the country. Nigerians of all societal strata have bemoaned the nightmare called the services of the PHCN for decades now. With a teeming population of over 150, some say 160 million, the country s electricity generating capacity as at last year was about 3,600 mega watts.

This output is far less than what obtained in other developing countries. For instance, South Africa with a population of 50 million generates 40,000 megawatts; while Brazil with a population as large as 201 million could generate 100,000 megawatts of grid-based electric power. Nigeria has a long way to go. The FG should pay more than lip service to the power sector, especially in the area of power generation, as the country looks forward to achieving the goals set for its Vision 20:20:20.

The National Planning Commission last year said Nigeria needs 35,000 mega watts by 2020. It is expected that with the deregulation policy, the power sector would be private-sector led, with the government regulating and providing the necessary hospitable environment for the revival of the sector. Baring all odds, the true deregulation of the power sector would bring about the much desired turn around and improvement in the country' s power supply. With the coming of American leading global company, General Electric (GE) into the sector as was recently reported, there may well be flickers of light at the end of the tunnel.

The nation's Minister of Power, Barth Nnaji said GE would construct a 10,000 mega watts power plant in the country. For this to be effective in meeting the short term 16,000 mega watts projection for 2013 and the 35,000 mega watts by 2020, more companies like the GE should be encoura ged to invest in the sector. The government should be prepared to assure foreign investors that their investments would not be threatened in the future, as was the drama witnessed last year when previous takeovers and privatized companies went through the suspicious scrutiny of the senate.

Threats to reclaim establishments already duly privatized in accordance with the law and due process, will, no doubt, the wrong signals about the country s current deregulation and privatization policies. Incidents like the one witnessed last weekend, where a British Airways flight from London landed at the Nnamdi Azikiwe International Airport, Abuja in darkness due to generator failure, illustrate how grim the situation of the country s power supply is at the moment. Is it not a national embarrassment that in this 21st century, when many countries are engaged in space and other planets exploration, aircraft passengers lives are threatened because of lack of power supply in Nigeria? The country should endeavour to get it right this time around.
The billions of naira being pumped into the power sector must be justified with commensurate increase in power supply. The ongoing reforms in this sector should put to rest the unending wait for improvement in power. Many Nigerians have reiterated that if the Jonathan government can only achieve improved power supply for the country, the President would have written his name in gold

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