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Concerns as Nigeria’s power sector decade privatization deal expires

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Growing concerns have arisen as Nigeria’s power sector privatization process, set to conclude on October 31, 2023, approaches its end. The situation has become even more problematic due to the persistent crisis in Nigeria’s power sector, which has plagued the electricity value chain, spanning generation, transmission, and distribution, for over 62 years.

In an attempt to address the long-standing issues within the country’s ailing power sector, the government initiated the process of privatization, commencing with the 2005 Electric Power Sector Reform (EPSR) Act. This process officially began on November 1, 2013, with the hope of resolving the enduring power crisis.

However, a decade later, the power industry’s problems remain unresolved, obstructing progress in Nigeria’s economy. Electricity distribution companies continue to grapple with financial challenges and inadequate remittances, compounded by a lack of proper metering. Meanwhile, power generation companies struggle with insufficient investments and transmission inefficiencies, resulting in frequent grid failures.

Despite these challenges, Nigeria has been struggling to provide just 5,000 megawatts of electricity daily for a population of over 200 million people. According to the Nigerian Electricity Regulatory Commission (NERC), the generation capacity of the 26 power plants dropped to 4,387.91MW in the second quarter of 2023. Additionally, the power sector has experienced significant annual capacity payment losses, with figures reaching as high as N273.32 billion in 2016 and as low as N88.13 billion in 2022.

The government has intervened at various times, including providing loans and power assurance guarantees, yet the power industry continues to face challenges, which have adversely affected the economy. For instance, the Manufacturing Association of Nigeria revealed that its members lose N10.1 trillion annually due to the power sector crisis.

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The signing of the 2023 Electricity Bill on June 9 by President Bola Ahmed Tinubu has raised hopes that meaningful change can occur in the sector if it is effectively implemented. However, the Minister of Power, Adebayo Adelabu, must provide the necessary policy direction to drive this change.

Wumi Iledare, Professor Emeritus and Executive Director of the Emmanuel Egbogah Foundation, highlighted the significance of the 2023 Electricity Act and stressed the importance of its proper implementation. He recommended decentralization of the power sector, with robust regulatory institutions at both state and federal levels.

Kunle Olubiyo, the President of Nigeria Consumer Protection Network, criticized the power sector privatization framework and emphasized the need for a regulatory review to address the sector’s challenges as the Performance Agreement and Licensee Moratorium expires.

Adetayo Adegbemle, Convener and Executive Director of PowerUp Nigeria, underscored the importance of reviewing the power sector privatization agreement to reposition the industry. He pointed out the need to address critical issues such as consumer metering and improving the balance between generation, transmission, and distribution.

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Gunmen Kill 6 Famers In Kaduna Village

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The Numana Community Development Organisation (NCDO) has expressed sorrow over the recent unprovoked attack and killing of innocent and unarmed farmers in Ambe village, Sanga local government area of Kaduna State, by gunmen.

During the tragic incident, six people were killed, and many others were injured and are currently receiving medical treatment in various hospitals.

In a statement to journalists in Abuja, NCDO President Comrade Ahmed Gani remarked, “It is alarming that kidnappings in our communities have surged recently, with reports of one or two persons being kidnapped every week.”

He further highlighted the worsening situation, stating that herdsmen have occupied ancestral lands, transforming these areas into hotspots for frequent kidnappings of innocent farmers. Some affected villages include Dangwa Ungwan Kafinta, Ninte, and Dangwa Ungwa Manzo.

Gani recounted a series of attacks in Sanga local government area: two people were killed at Lambari village on March 2, 2023; one person at Unguwar Madaki Arak on May 5, 2023; one at Gani Sarki on August 19, 2023; and five at Unguwar Ganye on February 8, 2024.

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“These persistent attacks on our peaceful communities have become intolerable, especially now with the onset of the rainy season,” he stated.

Farmers are now afraid to go to their farms due to the escalating attacks, which will likely have a negative impact on the local economy in the coming months, Gani warned.

While acknowledging the efforts of the Kaduna State Government under Governor Senator Uba Sani to address insecurity, Gani urged for increased protection, especially in Sanga and Jema’a local government areas.

He called on the Kaduna state government to deploy more security forces to rural communities to protect residents and restore their confidence so they can farm without fear of attack. Gani also urged the state government to support those injured in the recent Ambe village attack who are currently undergoing medical treatment.

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BREAKING: Helicopter Carrying Iranian President Raisi Crashes In Azerbaijan

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A helicopter in a convoy transporting Iranian President Ebrahim Raisi to the Qiz-Qalasi Dam in East Azerbaijan province reportedly crashed on Sunday.

Details of the crash and information about other passengers were unclear at the time of reporting, but rescuers were attempting to reach the crash site, according to state television.

The country’s finance minister, Amir Abdollahian, was also reportedly in the helicopter with the president. Reports indicated that two of the three helicopters in the convoy safely reached their destination.

Iran operates a variety of helicopters but faces challenges in obtaining parts due to international sanctions. Much of Iran’s military air fleet dates back to before the 1979 Islamic Revolution.

The 63-year-old Raisi is a hard-line former head of Iran’s judiciary and is considered a disciple of Supreme Leader Ayatollah Ali Khamenei. Some analysts believe he could succeed the 85-year-old Khamenei upon his death or resignation.

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We will not tolerate breach of contractual agreement – Gov Namadi warns contractors

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Jigawa State governor, Malam Umar Namadi has said his administration would not tolerate or accept any breach of contractual agreement.

The Governor stated this while inspecting some ongoing projects across the state.

The inspected projects were mostly rehabilitation and reconstruction of the roads and bridges damaged by flooding in the last two years.

Speaking to various contractors, Governor Namadi expressed satisfaction on the quality of the projects and urged them to speed up the work for a timely completion.

According to him, “we are ready to continue patronizing any company that demonstrates seriousness and sincerely in handling his work.

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“We will not delay your payment as soon as you complete the work and at the same time we will not tolerate or accept any breach of contractual agreement.”

He noted that the state government had taken measures towards reconstruction of facilities damaged by flood last year.

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