Connect with us

News

Concerns as Nigeria’s power sector decade privatization deal expires

Avatar

Published

on

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.

Advertisement

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.

Advertisement
Advertisement
Click to comment

Leave a Reply

News

‘Some people have turned into monitoring spirits because of Tinubu’ – Joe Igbokwe

Avatar

Published

on

Joe Igbokwe, a prominent member of the All Progressives Congress (APC) in Lagos State, raised concerns on Saturday about the constant monitoring of President Bola Tinubu. Igbokwe claimed that some individuals have resorted to witchcraft and “monitoring spirits” to keep an eye on Tinubu.

He explained that these individuals are observing Tinubu closely to catch any mistakes or mishaps, wherever he goes. Posting on his Facebook page, Igbokwe predicted that this scrutiny will persist for the next eight years.

He wrote: “Some people have turned to monitoring spirits. They follow PBAT anywhere he goes to see if he will make mistakes, if he will fall down, or if he will be received very well in any country he goes to. This is witchcraft and they will do this for 8 years. Mark this.”

Tinubu had a slip during the Democracy Day celebration at Eagles Square on June 12. Addressing the incident later at a Democracy Day dinner at the Presidential Villa, the President commented: “Early this morning, I had a swagger and it’s on social media. They’re confused about whether I was doing bugger or babariga.

“But it is a day to celebrate democracy. Why doing dobale on the day? I’m a traditional Yoruba boy. I did my dobale.”

Advertisement
Continue Reading

News

‘We’re still owed salaries in Abia State University’ – ASUU

Avatar

Published

on

The Abia State University chapter of the Academic Staff Union of Universities (ASUU) has claimed that many of its members did not receive their April and May salaries, and those who were paid had deductions from their salaries. ASUU Chairperson Chidi Mbah and Secretary Victor Obisike stated that despite announcements from the Abia government and social media reports indicating that salaries had been settled, only a few staff members with accounts at commercial banks received their April salaries, and even fewer received their May salaries.

The ASUU leaders highlighted that this inconsistency in salary payments and deductions has caused financial difficulties, anxiety, and uncertainty among the affected staff. They noted that staff members who did receive their April or May salaries experienced unexplained deductions ranging from N8,000 to N53,000.

This irregular payment system has made it difficult for the unions within the university to determine the status of their check-off dues, which are usually deducted at the source. Additionally, ASUU emphasized that 11 months of outstanding salary arrears remain unpaid, despite repeated assurances from the government.

ASUU expressed its support for Governor Alex Otti’s efforts to improve Abia State University but urged government officials to avoid politicizing the salary payment issue. They appealed to the state government to promptly address the concerns raised and ensure that all outstanding salaries, including the arrears, are paid in full to alleviate the financial hardships faced by the university staff.

Continue Reading

News

Sanusi: Ado Bayero was never Emir of Kano – Gov Yusuf’s spokesman

Avatar

Published

on

Sanusi Bature, the Chief Press Secretary to Governor Abba Yusuf of Kano State, has asserted that Aminu Ado Bayero was never the Emir of Kano. According to Bature, former Governor Abdullahi Ganduje appointed Bayero as the Emir of the eight metropolitan local governments of Kano city.

During an appearance on Arise Television, Bature explained that Ganduje’s appointment of Bayero as emir was part of a political maneuver that compromised the integrity of the historic Kano Emirate, which predates Nigeria and its constitution by over a thousand years.

Bature stated: “The governor’s action was intended to protect the emirate’s integrity as an institution. The Emirate of Kano has a history that predates Nigeria, with people living under a single Emir for over a thousand years. Ganduje’s administration politicized this history, which Yusuf promised to rectify during his campaign to restore the emirate’s lost glory.”

He further remarked, “This is not the first time an Emir has been deposed; Ganduje did it, and Sanusi left Kano for peace to prevail. Now Sanusi has returned to Kano after the law was repealed.”

Clarifying Bayero’s status, Bature said, “Aminu Ado Bayero was never the Emir of Kano. He was appointed as the Emir of the eight metropolitan local governments of Kano city. With the revision of the law under a unified Kano, the emirate Bayero served no longer exists. He was the Emir of the Kano city emirate, not the entire 44 local governments of Kano, a status created by Ganduje’s 2019 Emirate law.”

Advertisement

Governor Yusuf deposed Ado Bayero and reinstated Muhammed Sanusi as the Emir of Kano. Despite this, Ado Bayero has refused to leave his Nassarawa palace and has challenged the state government’s action in court.

Continue Reading

Trending