FORMER Minister of Finance, Dr. Kalu Idika Kalu has said the old structure of Power Holding Companies of Nigeria, PHCN, was unbundled prematurely, necessitating the non attainment of the projected 10,000 mega watts.
Speaking at the annual general meeting of the Institute of Directors, IOD, in Lagos, Kalu said: “Perhaps we should have striven to improve the efficiency of public power monopoly until we reached the threshold of, say, 7,000-10,000mw of electricity supply, to household, industrial uses, and other energy customers, before we embarked on the experiment to unbundle, in line with the deregulation of the power sector.

He outlined the four principles that must guide efficient and long term cost effective privatization of enterprises hitherto domiciled in the public domain. According to him, “the first principle deals with the ability of the potential bidders to pay the reserve price which requirement must be satisfactorily established prior to a bidder being shortlisted for the bidding. “Second requirement is that the shortlisted bidder must demonstrate adequate knowledge of the technology of the enterprise. This will ensure the bidder’s ability to undertake due technical diligence of the plants and equipment, and that pertains to its rating, as well as its commercial and operational viability. “Third requirement is an unambiguous evidence of prior management experience of the type of enterprise to be privatized. This also will ensure that, once privatized, the new owners can steadily get on with the process of employing the requisite labour and materials to sustain continued delivery of the goods and services with minimum delay. “The fourth is the quality and efficacy of the business plan. All the four criteria must be taken pari pasu-in the evaluation of the final bids,” Kalu explained.

http://www.energywatchng.com/power-sector-unbundling-executed-prematurely-idika-kalu/

henhen...we can actually reach 30,000 mega watts if we want to, but those who makes billions through darkness wont make that work out.

All these talk talk, it's easier to condemn from afar, than to implement when kept in such position. I remember our present minister of power said generating power shouldn't be rocket science, he's there now and there hasn't been any improvements.

These peeps should take a cue from developed nations.

Power was more stable when it was still under NEPA & PHCN. I still believe the solution to stable power is for it to be control by states. We should forget generating power and sending it to the centre for transmission.
I believe states like Lagos can generate enough electricity for there state if given the autonomy. Also government can commission companies to generate power for a small environment such like NASCO project in jos. For example If any company can generate and supply electricity for a small area such as Ikea, let them get on board and this will reduce dependence on the general power.
Am sure that big generator companies such as Mikano, CAT , JMG, Cummins have capacity to generate power in this small capacity

it is obvious the present PHCN are not ready for business.. what they do in my area is just to share bill and no power supply.

The problem is....the alternative....continued government control....won't have improved things.

I was not much of a PDP fan, but privatizing power was not one of their bad decisions.

“Perhaps we should have striven to improve the efficiency of public power monopoly until we reached the threshold of, say, 7,000-10,000mw of electricity supply, to household, industrial uses, and other energy customers, before we embarked on the experiment to unbundle, in line with the deregulation of the power sector.

That is....IF the government HAD the money.They did not have the extra $100bn per annum needed in 2014...and I doubt they have it now.

Keep in mind that we also have serious issues with transmission....it isn't just increasing generation capacity.We may have to replace the transmission system completely....and expand it...and that does not come cheap.

Mods 4get This Shii
Every1 Is On Mmm Watch

Of course, this is exactly one of the biggest problems we're having today in the power sector. Power assets were hurriedly sold to people who have no clue and who have no business managing them. The power sector has been privatised but every year the government still has to cough out billions to fix and improve assets which already belong to private individuals and establishments.

This is typically what you get when the govt sells gifts public enterprises to its friends and cronies.

Who givs a phuck!

Same govt that unbundle power sector refuse TSA implementation. I thought they said IB Jo had foresight?
It was unbundled hurriedly in order to transfer its ownership to those in power. People who can't manage a phone recharge business were given power plants.

Can't they plead with Dangote, TY Danjuma, Dantata, Babangida, Atiku, Alakija, Adenuga or Idimi to buy PHCN. These moguls can better manage our power sector considering the huge profit they will get from it.

They just the few that can buy it.

This man had better keep kwayet with all his I Too Sabi rhetoric.

He and IBB took the IMF loan back in the 80s that crippled the Nigerian economy since.

Power sector has collapsed! Buhari unwisely destroyed the sector even further by appointing Fashola to oversee a sector where extraordinary expertise is direly needed. My area where light was fairly constant during Jonathan's time now manages to get power supply every two to three days. It's infuriating!

Frankly speaking, Buhari has ruined everything that was handed over to him.

CXLVII:
Can't they plead with Dangote, TY Danjuma, Dantata, Babangida, Atiku, Alakija, Adenuga or Idimi to buy PHCN. These moguls can better manage our power sector considering the huge profit they will get from it.

They just the few that can buy it.

Profit from the power sector is not a 5 year thing oh.

Up NEPA.

CXLVII:
Can't they plead with Dangote, TY Danjuma, Dantata, Babangida, Atiku, Alakija, Adenuga or Idimi to buy PHCN. These moguls can better manage our power sector considering the huge profit they will get from it.

They just the few that can buy it.

They won't because....zero profit.

For example....most Nigerians do not pay their power bills. That means any businessman who buys PHCN would find it difficult to recoup his investment .

Also, most of the PHCN equipment is broken down and old. Rich investor has to repair and replace. That costs money....and that means higher power bills....it is called passing the costs to the consumer.

I HATE STORIES!!!!!!

Why cant Nigeria find alternative all these years we have been complaining and the world is using alternative energy ..people shifted from Coal to Nuclear now some are now heavily on Solar ...We need serious alternative

....i knw dt tinubu and aikuisten will never rest until the privatisation of the power sector is reversed and redone so they can hv a chance to buy into it...you heard it first here!

Not surprised. A clueless one was the president then. What do you expect?

Everything Nigeria is done at the detriment of the citizen's.

Teewhy2:
Power was more stable when it was still under NEPA & PHCN. I still believe the solution to stable power is for it to be control by states. We should forget generating power and sending it to the centre for transmission.
I believe states like Lagos can generate enough electricity for there state if given the autonomy. Also government can commission companies to generate power for a small environment such like NASCO project in jos. For example If any company can generate and supply electricity for a small area such as Ikea, let them get on board and this will reduce dependence on the general power.
Am sure that big generator companies such as Mikano, CAT , JMG, Cummins have capacity to generate power in this small capacity

Thank you Bro, it reminds me of Kwall in jos, during my service year, I enjoyed 24 hours power supply, power disruption came when NASCO needs to carry out maintenance. I believe govt should give state power to generate power by themself

Who sacked Dr Bart Nnaji and replaced him with clueless Nebo who sold PHCN to friends?

mastermaestro:
Power sector has collapsed! Buhari unwisely destroyed the sector even further by appointing Fashola to oversee a sector where extraordinary expertise is direly needed. My area where light was fairly constant during Jonathan's time now manages to get power supply every two to three days. It's infuriating!

Frankly speaking, Buhari has ruined everything that was handed over to him.

GEJ boy continue talking

All these experts eh

one minute privatize power

privatize the refineries

privatize this and devalue currency and everyone will flock in

Next minute oh why would u wanna do that ..oh nooo

The important thing is that power supply has improved.

dMODShavgonemad:
All these talk talk, it's easier to condemn from afar, than to implement when kept in such position. I remember our present minister of power said generating power shouldn't be rocket science, he's there now and there hasn't been any improvements.

These peeps should take a cue from developed nations.

Buhari made the biggest mistake by making Fashola to head three different ministries, i mean ministry of power is enough trouble, why add housing and works?

the problem of NEPA is bigger than the problem of Lagos state, so erroneous to give Fashola those ministries based on his antecedents as governor of lagos state...the problem of lagos state was "the problem of 20million(lagosians) people but the problem of NEPA is the problem of 170 million people (Nigerians) "

Chukazu:


Buhari made the biggest mistake by making Fashola to head three different ministries, i mean ministry of power is enough trouble, why add housing and works?

the problem of NEPA is bigger than the problem of Lagos state, so erroneous to give Fashola those ministries based on his antecedents as governor of lagos state...the problem of lagos state was "the problem of 20million(lagosians) people but the problem of NEPA is the problem of 170 million people (Nigerians) "

Gbam, brother u have spoken well.