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Timely Intervention For A Rotten Sector

Published by Guardian on Tue, 11 Sep 2012


JUST when relative stability in electricity supply was being recorded across the country, the chief driver of the reform process in that sector, Prof. Bath Nnaji, was shown the way out, or, reportedly stepped aside.It was a shocking development because everyone had thought the evil monsters in that subdivision, which had conspired for decades to frustrate every effort to revamp power generation and supply had been subdued, only for them to rear their ugly heads.Ugly heads, because their game plan had always been to prevent sustainable growth in the economy, especially when such efforts interfered with their unscrupulous desire to benefit from offshore trading investments.They killed the National Electric Power Authority (NEPA) and invented the expensive culture of generators, which forced manufacturing concerns to close shop or incur higher production costs, while creating markets and job opportunities for their friends in foreign countries.For many years, government was clueless on how to revamp a comatose power sector, until former President Obasanjo attempted to seize the bull by the horns. That effort did not go down well with those who benefited from the rot and the reformers themselves did not set out to ensure that due process was applied at every step.The idea to construct gas-powered generating plants appeared good, except that those entrusted with the various contracts preferred to help themselves, rather than help the country. The Ndudi Elumelu committee, which was set up by the House of Representatives (Sixth Assembly) to investigate how $16 billion went down the drain through the pockets of contractors, showed that the reformers meant well, but went about it in a most cruel manner.Contracts were not even signed while huge sums were paid. Others were paid and project sites did not exist and even the best of such had not recorded 20 percent of actual work.The implication was that Nigeria had been duped and electricity supply further went down. More and more suppliers of generators were emboldened to turn the country into a bedlam of croaking vessels.The late President Yar'Adua was passionate about the sector and he made it a campaign issue, promising to declare an emergency in the segment; but he was overwhelmed by the rot and decided to put the sector on hold. Unfortunately, he could not revisit the files before he passed on.President Goodluck Jonathan is also passionate about fixing the malaise. He equally made it an election issue and went to town after becoming president to do a road map, which appeared very sincere. There was a renewed zeal to return to the IPP sites and link them with gas supplies.Suddenly, there began illumination and things seemed to be looking up. But then, there were allegations that Prof. Nnaji, the former Minister of Power, had not sufficiently put his interests aside to be a proper umpire of a reform process. The Power Holding Company of Nigeria (PHCN) had been broken down into smaller units that would be handy to sell.Unexpectedly, these units have become too hot for investors to ignore. Some powerful persons in government and their proxies were alleged to have put some pressure on Nnaji to favour their companies, while the man himself, allegedly pushed his company, Geometric Power, in the bid for the Afam Power Plant and Enugu Distribution Company.The Bureau for Public Enterprise (BPE) had been on this rough road before, to know when to make the field of play level for all comers. The activities of BPE came under scrutiny by the Senate probe panel and the revelations were that it grossly abused due process in the sales of public enterprises handed to it by the government. Those who violated the rules are yet to be prosecuted, as President Jonathan and his team are still to work on the Senate report.This administration has promised to reform the Power sector and it will be recorded for it if it goes well. The way to go is to let transparency and accountability be the watchword!
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