Despite attempts at the much-touted power sector reform since the dawn of the Fourth Republic in Nigeria, successive governments had failed to end decades of debilitating darkness. The Federal Government despite its much-publicised efforts had serially failed to meet the delivery dates it promised for steady power supply. As of 1999, under ex-president, Chief Olusegun Obasanjo, the target was put at 4,000 megawatts which the then Minister of Power, Late Chief Bola Ige, promised to deliver within six months. Obasanjo had at that time dismissed the six months deadline as unrealistic, promising instead a one-year deadline for achieving the goal. Unfortunately the nation did not achieve this target throughout Obasanjo’s two-term tenure and thereafter.
Recently, the Governor of Central Bank of Nigeria, Godwin Emefiele, has been meeting with Banks’ Chief Executives to find a solution to a looming crisis capable of crippling the entire economy, especially the energy sector. Although details of the meetings has remained wrapped in secrecy, however, the power sector reforms, which translated to the privatisation of former state-owned Power Holding Company of Nigeria, are under threat. The report is that several of the Power Distribution and Generating Companies are struggling to meet their debt repayment obligations on both sides. Most of the financial institutions that provided the resources to finance the buyover of the unbundled electricity entities are not getting back their money from the new owners and on the other hands, suppliers of gas to the power generating firms are also groaning under the weight of debt owed them. Both ways, the stability of the financial sector is being threatened by a growing pool of non-performing loans to the power generation and distribution firms and gas producing companies.
We urge President Jonathan to take the bold step to reappraise the power sector reforms with a view to transforming the present travails in the sector to a positive gain, especially for the economy. The CBN has also estimated that corporate bodies and individuals spend as much as N1.66 trillion per annum to meet their alternative energy requirements due to the gross inadequacy in the supply of electricity to all tiers of consumers in the country. The apex bank added that it had, on its own, provided about N500 billion facility for investment in the energy sector in line with the objectives of the National Electric Power Policy with the aim of encouraging private sector participation in the energy sector as well as ensuring affordability of power supply.
It is unfortunate that fifteen years after the dawn of democracy in the country, the epileptic power supply in the country continues to symbolise the poor state of its social infrastructure. It has not only been unable to generate adequate power, its capacity for transmission and distribution has been at its lowest point. This reality has exacted a toll on the nation’s development as many manufacturing concerns, whether large, medium or small scale, have had to close down outright and in some cases relocate to neighbouring countries with relative stable power supply, to reduce production cost and earn a favourable return on investment.
We note last month’s N213bn power sector intervention fund by commercial banks through the CBN to assist Electricity Distribution Companies offset legacy gas debts and address the revenue shortfall in the power sector. It was a step in the right direction. However, despite this intervention, electricity consumers continue to question the high bills being served them by some of the DISCOs just as they maintain that there is no moral justification for the high bills.
We insist that electricity should not be regarded as a mere commodity for profiteering and accessible only to the highest bidder. Although profit is an essential element of the private sector, in this case, electricity is equally a social good, especially in an under-industrialised economy like Nigeria’s.
However, despite the inadequate electricity generation at present, we are indeed optimistic that the heavy investments being currently made by the government, including other financial interventions from other quarters, will soon culminate in power supply stability in the country. Nigerians deserve no less.
