Power privatisation in Nigeria dates back to 1999, the year the country returned to democracy and Olusegun Obasanjo became President.
Part of the plan was to break the cabal that has ruled the energy sector for decades and end the importation of refined oil and gas to power generating plants in a country that is the world’s six largest producer of crude oil.
The intention was also to end the business of importers of power generators from China, Taiwan Japan, and South Korea who profit from unstable public power supply.
Nebo, PHCN, gas supply
The emergence of President Goodluck Jonathan in May 2010, orchestrated by the death of President Umaru Yar’Adua, shifted the paradigm and hype in the 13-point agenda, which led to the new seven-point transformation agenda.
Despite several appointments made by the Jonathan administration and the creation of agencies to oversee power privatisation, it has remained at teething stage.
Chinedu Nebo
After Barth Nnaji resigned as Power Minister, he was replaced with Chinedu Nebo to continue from where his predecessor stopped, with hopes high for a better and efficient job.
Nebo was faced with the herculean task of clearing the backlog of the entitlements of the staff of the defunct Power Holding Company of Nigeria (PHCN), which implementation ran into hitches in the hands of consultants.
Many former PHCN staff still parade themselves as employees with the identity card of the defunct company because they have not been paid severance package.
Six agencies have been created, including the Presidential Task Force on Gas, and an investment forum on energy in Nigeria was held recently, attended by investors from all over the world.
Among the agencies are also generating companies (GENCOs) and distribution companies (DISCOs). But there is incessant breach in pipelines that supply gas to power generating companies, and the vandals are not prosecuted.
Buying electricity from abroad
Deliberations at the World Economic Forum and by National Assembly Committees on Power and Privatisation have contributed nothing to power stability, as the country is yet to generate a quarter of its need.
Instead, there is now an imposition of a N700 flat rate on both users and non users of electricity, making Nigerian consumers the highest charged in the world.
The plan to buy from the grid of other countries, such as South Africa and Congo, is like embarking on a wild goose chase.
Minister of State for Power, Mohammed Wakil, announced the plan to buy electricity from other countries for future use, despite Nigeria’s enormous energy resources – biomass, wind, coal, dam, apart from petroleum and gas.
Latest foray in Bayelsa
The latest initiative is the coming of Benco Energia of Brazil to invest over $700 million in power in Bayelsa State, where companies from South Africa have already started work.
The project is expected to be completed in six months.
Unless this improves electricity supply nationwide, the fact will remain that power privatisation is a white elephant that has gone the way of other projects in Nigeria.