MarkSole:
By Ismail Mudashir & Simon Echewofun

The beleaguered power sector cannot improve under the current privatisation arrangement, senators said yesterday.
After painting a glooming picture of the sector during yesterday’s session many senators concluded the only solution was to reverse the privatisation sale.
They spoke during a debate on overbilling of electricity consumers by Distribution Companies (DISCOs).
Senator Dino Melaye, who sponsored the motion, called for the overhauling of the sector.
Chairman Committee on Privatisation, Senator Ben Murray-Bruce (PDP, Bayelsa) said those who invested in the business thought it was like a company where they will make a lot of money.
He said they only had enough money to pay the government but lack the capacity to run a power sector company in a modern economy.
“They are technically bankrupt; unless we re-visit the entire privatisation process, unless we understand and dissect what went wrong, we will still get estimated billing.
“We have a catastrophe in our hands; there will be no light in Nigeria under the current structure.”
He added that the was “no hope in sight unless we revisit the process and try to understand what went wrong and bring in new players with capacity,” he said.
For his part, Vice chairmanCommittee on Power, Senator Bukar Mustapha (APC, Katsina) said the privatization of the power sector has failed in addressing the challenges.
He noted that Nigeria has an installed capacity of 12,522 megawatt but that the actually available megawatt is just over 4000.
“The privatisation model we have used has not worked. We are sitting on an emergency. Something has to be done drastically to address the situation, “he said.
Deputy Senate President, Senator Ike Ekweremadu, who presided over the plenary said the prayers on the motion should be stepped down pending the consideration of the report of the Senate Committee on Power on the privatization of the power sector.
Many electricity customers in Nigeria had expected instant turnaround of the facilities and quality of services described as rotten under the defunct PHCN after the privatisation over three years ago.
The federal government sold out 60 per cent stakes in about 17 power firms to private investors for US$2.525 billion and handed it over on November 1, 2013.
While the five Generation Companies (GenCos) were sold for $1.269bn, the 11 Distribution Companies (DisCos) went for $1.256bn. The Transmission Company of Nigeria (TCN) being the third in the value chain was not privatised.
Powers behind the privatised firms
After the federal government concluded the privatisation transaction, former Vice President and Chairman, National Council on Power(NCP), Namadi Sambo handed over 60 per cent control of 10 DisCos and four GenCos to the investors on November 1, 2013. Sapele Power, Afam GenCo and the Kaduna DisCo were not taken over until later due to some legal issues.
Daily Trust found that most of the top drivers of the new private-led firms have political affiliations. Some others were not in power sector business investments earlier but got expatriates as technical partners.
Geregu I GenCo
It has Chief Femi Otedola, as Chairman of Amperion Ltd, the core investor. He is also the Chairman of Forte Oil. It has BSG Resources Ltd and Shanghai Municipal Electric Power Company as its technical partners.
It planned to make a 50 per cent increase in the short to medium term to generate 600mw. However three years after, Geregu I hardly generates 400mw due to poor gas supply and other issues.
Transcorp Ughelli GenCo
Chairman of Transcorp/Woodrock Consortium, Mr Tony Elumelu acquired the 972mw capacity Ughelli Power firm at $300million. It planned an overhaul of generation capacity to over 1,070mw in five years but said it attained 600mw last year, after three years. Its last generation output was about 340mw this month due to gas supply, industry statistics revealed.
Kainji/Jebba Hydro GenCo
Col. Sani Bello (Rtd), frontier of Mainstream Energy Solutions got Kainji and Jebba GenCo for $170m. The Niger state investor, a former military administrator of Kano state, is also the chairman of MTN and Amni Oil and Gas,. It has Russian partner, RusHydro to acquire the plant. It said recently that it overhauled two turbines but it produces a combined energy of about 735mw and has 826mw capacity so far.
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https://www.dailytrust.com.ng/news/general/power-can-t-improve-under-current-arrangement-senators/199193.html