TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

Getting it right with the idle NIPPs – Punch

The Citizen by The Citizen
May 22 2015
in Public Affairs, Uncategorized
A A
0

In a season defined by harrowing blackouts because national electricity power output has tumbled to about 2,000 megawatts from 4,000MW in March, it is shocking that the National Integrated Power Projects are lying idle. Ten in all, the NIPPs that are supposed to boost national output by over 5,000MW, are generating at an unusually low capacity.

According to the authorities, this is mainly because of gas supply challenges. The gas conundrum is as old as the NIPP initiative, which got under way during the Olusegun Obasanjo administration in 2004. Last week, James Olotu, the Managing Director of the Niger Delta Power Holding Company, the special purpose vehicle superintending the NIPPs on behalf of the three tiers of government, gave a strong indication that the gas issue won’t be resolved in the near future. “As of last week, those plants were running on only one unit each,” Olotu said.

There are two main excuses – or arguments, if you like – for this situation in the plants, which are located in Olorunsogo, Omotoso, Geregu, Calabar, Egbema, Alaoji, Ogorode, Omoku, Ihorvbor and Gbarain. First, when the NIPPs were built, there were no connecting sources of gas supply. The government simply thought the electricity problem would vanish just by erecting the power plants.

This predicament has hindered the government from privatising the NIPPs, which were originally designed to be sold by July 2015. The National Council on Privatisation has shifted the new timeline to January 2016. For a government that is cash-strapped, following the fall in crude oil prices and its own profligacy, the privatisation of the entities, estimated at $5.814 billion, will go a long way in remedying the rot.

However, the fate of the NIPPs is symptomatic of the chaos in Nigeria’s power sector. Timelines have been missed consistently because of half-baked implementation of reforms. Although it is one-and-a-half years since the government privatised the unbundled assets of the Power Holding Company of Nigeria, the successor companies have not fared better. At best, service delivery has been mostly epileptic.

Experts blame the ungainly situation on Abuja’s opaque privatisation process, which facilitated the DisCos and GenCos ending up in wrong hands. Yet, the GenCos put the blame on low tariff, though they employ different means to charge prohibitively (otherwise called estimated billing). But realising their folly, the National Electricity Regulatory Commission and the government have taken turns to defend the new owners over their poor performances.

The bigger picture, which is a pointer to the lingering gas supply challenge, is scarier. Under an agreement signed in 1999 to supply gas to 15 ECOWAS countries, Nigeria recently compensated Ghana with $10 million following its inability to supply gas to it (Ghana). Some reports claim that Nigeria is not honouring the gas supply agreement it signed with 14 out of the 15 ECOWAS countries.

Equally ominous is the fact that the so-called private entities are being spoon-fed by the government. Apart from settling a legacy gas debt for the privatised entities, the government has also packaged a N213 billion Electricity Stabilisation Fund to help them. This credit has done little to ameliorate the situation. The companies have not been able to supply consumers with prepaid meters.

Correcting this error is taking the government too long and taking its toll on a nation wallowing in darkness and its economy wobbling. A survey by NOI Polls that covered the first quarter of 2015 found that 67 per cent of Nigeria’s 170 million population had no access to electricity. It is obvious that there are no quick fixes. Therefore, we need a broad plan to address this omission that is jeopardising the investment in the NIPPs, which has gulped over $5 billion so far.

Second, the gas pipelines linking the NIPPs suffer constant vandalism, resulting in massive disruption. As a result, the NIPPs cannot generate their rated output. The vandalism got so alarming that the government, instead of tackling the menace with firmness of purpose, is adopting tepid, questionable measures. It strangely awarded pipeline protection contracts to Niger Delta militants and the O’odua Peoples Congress ethnic militia. As is to be expected, this has not solved the problem. It has only exacerbated the vandalism.

The incoming administration of Muhammadu Buhari should immediately review the contracts, flush out the vandals by empowering the security agencies to do the job.

There is a lesson to learn from the United States experience. A 500-mile pipeline from Colombia, which supplies 100,000 barrels of crude per day to Occidental Petroleum of Los Angeles, United States, is guarded by specially-trained counterinsurgency officers, who also operate with helicopters to dislodge guerrillas aiming to wreak havoc on the facility. The success of the collaboration between the American and Colombian forces, which deployed six battalions, is seen in the fact that, from 170 incidents of vandalism in one year, the figure crashed to 30 the following year (2012).

Nigeria’s new government should pull out all the stops, including deploying the police, civil defence corps officers and soldiers, to end the vandalism. This coordinated approach will put a stop to the menace.

To get the electricity sector working, the new government should, as a matter of urgency, reassess the privatisation programme of the outgoing government. It should never, on any account, contemplate reversing the privatisation policy, but resolve to re-tune it transparently for optimal performance. Stable electricity is so critical for inclusive economic growth. On no account should it continue to be toyed with as we have witnessed these past years.

With gas and other issues plaguing 20 out of the 23 power plants in the country, the new government should launch fresh initiatives to diversify the sources of power supply into areas like coal and renewable energy.

Previous Post

Diezani Alison-Madueke deserves commendation, not condemnation

Next Post

Nigeria’s unemployable graduates – Daily Independent

Related Posts

Duty waivers must not become a fiscal hole – Punch
Public Affairs

Duty waivers must not become a fiscal hole – Punch

July 20 2026
State airports: White elephant epidemic – Punch
Public Affairs

State airports: White elephant epidemic – Punch

July 17 2026
Jega resonates loudly on Electoral Act underbelly – Punch
Public Affairs

Jega resonates loudly on Electoral Act underbelly – Punch

July 14 2026
Almajiri Commission: Stop this budgeting absurdity – Punch
Public Affairs

Almajiri Commission: Stop this budgeting absurdity – Punch

July 13 2026
Boko Haram destroyed over 500,000 houses in North-East – Agency
Public Affairs

Deadly toll of living with terrorism – Punch

July 9 2026
Nigeria’s costly blackouts – Punch
Public Affairs

Nigeria’s costly blackouts – Punch

July 8 2026
Next Post

Nigeria’s unemployable graduates – Daily Independent

Luis Figo withdraws bid for FIFA presidency

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Sokoto LG chairman quits APC, resigns from office

Sokoto LG chairman quits APC, resigns from office

by The Editor
July 8 2026
0

...

Bauchi Electoral Commission fixes August 17 for LG election

Bauchi Electoral Commission fixes August 17 for LG election

by The Editor
June 19 2026
0

...

Court grants indigenous status to Hausas born in Jos North

Court grants indigenous status to Hausas born in Jos North

by The Editor
June 11 2026
0

...

42-year-old Sheikh Dasuki emerges Chief Imam of Ilorin

42-year-old Sheikh Dasuki emerges Chief Imam of Ilorin

by The Editor
June 11 2026
0

...

APPOINTMENTS

Tinubu appoints Fayose REA chairman, names 25 others

Tinubu appoints Fayose REA chairman, names 25 others

by The Editor
July 20 2026
0

...

Tony Elumelu to step down as UBA chair, bank names successor

Tony Elumelu to step down as UBA chair, bank names successor

by The Editor
July 6 2026
0

...

Sahara Group appoints Folake Soetan as Arahas MD to drive oilfield services transformation across Africa

Sahara Group appoints Folake Soetan as Arahas MD to drive oilfield services transformation across Africa

by The Editor
July 3 2026
0

...

Tinubu appoints new NUC chairman

Tinubu appoints new NUC chairman

by The Editor
June 23 2026
0

...

ODDITIES

75-year-old man bags 10 years jail for defiling minor

75-year-old man bags 10 years jail for defiling minor

by The Editor
July 16 2026
0

Court remands blogger over defamation of Soludo, son

Court remands blogger over defamation of Soludo, son

by The Editor
July 13 2026
0

My mother trained me selling akara, bananas – Tinubu’s aide backs First Lady’s remarks

My mother trained me selling akara, bananas – Tinubu’s aide backs First Lady’s remarks

by The Editor
June 28 2026
0

GLOBAL NEWS

Xenophobia: Nigerian students funded your freedom – Shettima reminds South Africa

Xenophobia: Nigerian students funded your freedom – Shettima reminds South Africa

by The Editor
July 21 2026
0

...

US Congress okays bill to cut foreign aid to Nigeria

US Congress okays bill to cut foreign aid to Nigeria

by The Editor
July 17 2026
0

...

Nine European countries, Ukraine form defence coalition

Nine European countries, Ukraine form defence coalition

by The Editor
July 14 2026
0

...

Putin orders Russian nuclear forces on high alert

EU, UK hit Russia with joint sanctions over cyber attacks

by The Editor
July 14 2026
0

...

Reps in rowdy session over motion to summon Tinubu

Xenophobic attacks: Reps reject calls to suspend ties with South Africa

by The Editor
July 10 2026
0

...

State of the States

Lagos blames heavy rainfall for worsening road conditions

Lagos blames heavy rainfall for worsening road conditions

by The Editor
July 17 2026
0

...

Kogi govt confirms rescue of abducted principal, NECO official, two students

Kogi govt confirms rescue of abducted principal, NECO official, two students

by The Editor
July 17 2026
0

...

Anambra agency cracks down on illegal street trading, shanties in markets

Anambra agency cracks down on illegal street trading, shanties in markets

by The Editor
July 14 2026
0

...

Plateau Assembly moves to provide pensions for ex-lawmakers

Plateau Assembly moves to provide pensions for ex-lawmakers

by The Editor
July 10 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
FG mulls structures demolition for Lagos Coastal Highway service lanes, flood control

PFIPC scandal: How CBN opened domiciliary accounts for phantom agency

July 21 2026
Xenophobia: Nigerian students funded your freedom – Shettima reminds South Africa

Xenophobia: Nigerian students funded your freedom – Shettima reminds South Africa

July 21 2026
Ex-transport minister Rotimi Amaechi’s mother dies at 89

Ex-transport minister Rotimi Amaechi’s mother dies at 89

July 21 2026
Nigerian soldiers now earn N100,000 monthly, says Defence Minister

FG denies rumours of Defence Minister’s alleged resignation

July 21 2026

EDITORIAL REVIEW

Duty waivers must not become a fiscal hole – Punch

Duty waivers must not become a fiscal hole – Punch

by The Editor
July 20 2026
0

State airports: White elephant epidemic – Punch

State airports: White elephant epidemic – Punch

by The Editor
July 17 2026
0

Jega resonates loudly on Electoral Act underbelly – Punch

Jega resonates loudly on Electoral Act underbelly – Punch

by The Editor
July 14 2026
0

Almajiri Commission: Stop this budgeting absurdity – Punch

Almajiri Commission: Stop this budgeting absurdity – Punch

by The Editor
July 13 2026
0

Boko Haram destroyed over 500,000 houses in North-East – Agency

Deadly toll of living with terrorism – Punch

by The Editor
July 9 2026
0

Opinion

Remi Tinubu under fire over akara, roasted corn remarks

Beyond ‘akara’ leadership

by The Editor
July 6 2026
0

...

Trump’s U-turn on Iran war ends Israel’s Middle East dream

Trump’s U-turn on Iran war ends Israel’s Middle East dream

by The Editor
June 17 2026
0

...

Terrorists kidnap Army Major General, wife in Katsina

Slain General: When the protectors need protection

by The Editor
June 17 2026
0

...

Bandits attack mosque, kill 1, abduct 9 in Kaduna

When terrorism becomes the talk of town

by The Editor
June 9 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.