Despite huge sums sunk into the power
sector by successive administrations,
Nigeria has failed in its attempt to achieve
uninterrupted electricity supply. To this end,
the Senate has began a probe of funds
allocated to the power sector from 1999 till
date. JONATHAN NDA- ISAIAH writes.
Nigeria’s age-long epileptic power supply
has been identified as the country’s second
greatest Achilles heel after corruption.
Successive governments have failed at
promises of stable power supply across the
country. Monitors say the electricity problem
has made Nigeria one of the most expensive
places to do business in the world.
Since Nigeria’s return to democracy in 1999,
successive governments have spent billions
of Naira in unsuccessful attempts to revive
the power sector. Former President
Olusegun Obasanjo allegedly spent $6 billion
on power during his eight year tenure. In
total, over $16billion was reportedly
appropriated to revive the power sector
under the watch of Obasanjo and two of his
successors, former Presidents Umaru Musa
Yar’ Adua (late) and Goodluck Jonathan.
Blame games
Obasanjo last year, blamed the power sector
rot on administrations that succeeded him.
He said after handing over power to the late
Yar’Adua, no significant achievement was
recorded in the power sector. Obasanjo said
the situation deteriorated when former
President Goodluck Jonathan took over in
May, 2010.
“Between Shagari in 1983, until I came back
in 1999, there was no single dime invested in
power generation. If anything, the ones that
were there were allowed to go down.
“If you will remember, when I came back in
1999, my first Minister of Power was late
Bola Ige. I won’t say Bola didn’t know what
he was doing, and he said publicly that he
would fix the power problems in six months.
“After one year, Bola Ige couldn’t fathom
what was wrong with power. It was riddled
with corruption. Then we had no money.
People have forgotten that in 1999/2000, the
price of crude oil was $9 per barrel.
“When we started having money, we started
the National Integrated Power Plant (NIPP).
When we said the money we had should be
invested in power, my successor didn’t
understand; he stopped it.
“If for almost 20 years we did not achieve
anything in power generation, then we may
not be able to get it again,” Mr. Obasanjo
said.
Senate probe
Meanwhile, the 8th Senate, determined to
turn around the power sector, ordered a
probe of funds allocated to the power sector
from 1999 till date which covers the former
administrations of Obasanjo, Yar ‘Adua and
Jonathan.
The Senate inaugurated a committee to
conduct comprehensive investigation into
allegations of unwholesome practices in the
power sector over the years.
The probe committee inaugurated by the
Senate which is headed by Senator Abubakar
Kyari (APC/ Borno) is charged with the task
of looking closely into the entire power value
chain (generation, transmission and
distribution) with a view to identifying the
problems.
Senate President, Bukola Saraki who
inaugurated the committee, noted that the
task before the committee was huge. He
lamented the continued absence of regular
supply of electricity despite the country’s
huge investments in the sector.
Kyari, in a remark, provided detailed
explanations into the nature of the
investigation expected to be carried out on
the sector.
He said: “A close look at the entire power
value chain (generation, transmission and
distribution) calls for review of our policies in
order to obtain optimum performances
across the Board. The abysmal performance
of the generation segment is no longer news
in view of the current deteriorating power
supply which hovers around 4,600MW for a
population of over 170million people, despite
the huge resources committed into it. This
compared with our contemporaries is highly
regrettable. No wonder so many companies
have relocated from the shores of this
nation, due to increasing cost of production.
“The issue of turn around maintenance, gas
pipeline vandalisation, just a mention but a
few are some of the teething problems
bedeviling the sector. We must address it
now in order to stem this destructive tide.
The Committee will beam its searchlight in
this direction to put things in proper
perspectives.
“Having realised that the Transmission
Segment is the major linkage between the
generation and distribution fronts, increasing
our capacity in this direction is also very
necessary, since power produced must be
utilised immediately. Deteriorating
infrastructures in this segment must be
addressed forthwith. The Committee
attaches great importance to this and would
work assiduously in ensuring that all these
leakages or slippages in this area are
brought to the front burner and dealt with.
“It is in line with this objective that the
Committee would be seeking explanations
from the Management of Transmission
Company of Nigeria (TCN) on the terms of
their Management Contract with the Federal
Government as it relates to assets inherited,
funds injected into the Company so far and
the achievement recorded. “
On the Distribution Segment, Kyari said the
the Committee is desirous of ascertaining the
level of funds committed into it before
privatisation since the segment is currently
solely private sector driven.
He stated that It calls for vigilance as
successor companies are expected to bring
in investments to improve the quality of
services in terms with the agreement.
Signals emanating from their activities
shows that excessive profiteering has been
the major determinant of their decisions,
Kyari said.
He added: “It is on record that some of the
Distribution Companies reject power load
allocations to reduce cost. Their metering
system calls for fundamental review, since
the emphasis has been on estimated billings
and imposition of fixed charges for services
not rendered. “
“There have been a lot of unwholesome
practices by some of these companies, the
Committee has to get down to the root of
these problems especially where provisions
have been made in the past through
appropriation, prior to privatisation and funds
were not properly utilised. We must find out
what has brought us to this sorry state.
“The National Integrated Power Project
(NIPP) was designed to fast track the
improvement of electricity supply nationwide,
hence it was involved in project
implementation across the gamut of the
power chain. However, some of the power
plants built have not been able to contribute
meaningfully to the power generation through
the National Grid. The resources committed
to these projects are enormous and the
Committee in keeping with its mandate,
would be seeking for answers in order to
chart the way forward. The Federal Ministry
of Power, its Departments and Agencies and
other key players within the power sector
would be appearing before the Committee to
provide needed information in order to
achieve our laudable objectives. “ Kyari
declared.
He disclosed that “The second arm of the
Committee’s mandate is in respect of the
unbundling of the power sector, which was
midwifed by the Bureau of Public Enterprises.
The Committee would be seeking inputs from
the establishment on the process of
privatisation as it relates to funds committed
to the privatisation process, funds generated,
the settlement of laid off staff of the Power
Holding Company of Nigeria (PHCN) and
successful bidders (companies) financial
profile. Of importance is the need to verify
why these companies are already asking for
bail out/loan facilities from the Central Bank
of Nigeria (CBN). “
He however made it clear that the committee
was not out to witch hunt anybody but to
factually find out the problems bedevilling the
sector with a view to finding lasting solutions
to them.
“This Committee is not out to witch hunt any
person or organisation. We are on a fact-
finding missiona and would pursue our
mandate objectively”, he explained.
‘N2.7 trillion spent In 16 Years’
On the first day of the Senate public hearing
it was revealed that the total money
expended on the power sector by the Federal
Government from 1999 till date, was
N2.7trillion with marginal power generation
increase of 2, 850mega watts from 1,
750mega watts met on ground in 1999,
making the total power generation now to be
4,600mega watts.
This was disclosed by the Permanent
Secretary, Federal Ministry of Power,
Ambassador Godknows Igali, while making
presentation before the Senate’s Ad- Hoc
Committee on Power at the on going
investigative session on the sector.
The N2.7trillion expenditure, according to
Igali, were total sums of monies appropriated
and cash backed for the sector during the
period, in addition to $8.34 billion spent on
National Integrated Power Projects ( NIPP)
from excess crude accounts funds.
He explained that out of the total
N1.565trillion appropriated for the sector
during the period under review, N948billion
was released, in addition to N155billion also
injected into the sector in form of subsidy
under the Multi Year Tariff Order (MYTO) to
cushion the shortfall of funding, which when
added to $8.34 spent on NIPP projects, gives
a total of N2.7trillion .
He however said that the sector before 1999,
was even more poorly managed as there
was no single engineer employed into it, 19
years before the time and out of the 79
generation units available before then, only
19 were functioning with power generation of
1, 750 megawatts .
“Power sector investment before the advent
of democratic governance in 1999, was
static which shouldn’t be so at all. No new
power plants between 1991 and 1999, no
new transmission line between 1989 and
1999etc, a very bad trend that gave
successive governments from 1999 till date,
sleepless nights to reverse, which they
eventually did up to the privatization of the
sector in November 2013”, he said.
According to him, the slight improvement
being experienced in power supply now
across the country was due to the
privatization of generation and distribution
components of the sector in November 2013,
one of which is the Ugheli Power Plants ,
generating 640 MW now from 160 MW.
He assured Nigerians that with the
incidences of vandalization of gas pipelines
gone, and gradual increases in power
generation, power supply to every states of
the federation will continually improve .
For now, the Chairman of the Senate probe
committee, Abubakar Kyari (APC Borno
North) has demanded for the full audit report
of the ministry of power and the agencies
under it as the probe continues.
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