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Jonathan's Power Reform Is Positive,working and on track - Politics (2) - Nairaland

Nairaland Forum / Nairaland / General / Politics / Jonathan's Power Reform Is Positive,working and on track (6471 Views)

Senate Probes Obasanjo, Jonathan’s Power Sector Spendings / What Cost Jonathan Power In The End / CBN Disburses N109bn To Support Power Reform (1) (2) (3) (4)

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Re: Jonathan's Power Reform Is Positive,working and on track by swintiney: 5:31pm On Jun 18, 2012
dedeike: @ switney, Much as I would like to join issues with you on your last post but I must quickly commend you for offering the first intellectual opposition to Bart Nnaji's activities. Since this debate started, all we have been seing from those dissatisfied with our views are shallow arguments and vituperations devoid of substance. You even posted a useful link in support of your argument that govt appears insincere about the megawatts generated. I appreciate that. We must endeavour to be factual and constructive in criticising or praising the activities of those entrusted with the mandate to govern us. That way I believe we will make progress. However, I will make bold to respond to all the issues you raised one by one. It is never in doubt that Obj generateed 4000 megawatts. Yes he did. But just like you rightly observed, this 4000 megawatts could not be felt due to age long problems of adequacy of gas, transmission and distribution problems. In 2005' obj signed into law the power reforms act which was to offer the foundation for the first target you mentioned viz; ," expeditiously implement the electric power sector reform programme" . If you read Barth's interview thoroughly, you would appreciate that he credited his reform programme to the power reforms Act 2005 by Obj. That legislation offers the foundation upon which the present reform programmes are erected. So there's no falsehood to it. Secondly, the next target was to generate 10,000 megawatts by 2007 "by existing plants, new host generations and reasonably priced independent power plants" . This is where the NIPP initiative came in. Obj sought to set up over 9 independent power plants I.e Geregu, Allaoji, Afam, Papalanto etc due to its capital intensive nature, obj could not finish before he left office in 2007. Surprisingly, Yarafua came in and abandoned the NIPP projects.The Elumelu probe panel came up and rubbished the projects with allegations of corruption in the management of NIPP. So NIPP was put on hold without any alternative plans on generation. The end result was that our generation capacity dtropped again. We now started having barely 1500 megawatts. When Gej came in, he saw the need to implement the power reforms act hence the revival of the NIPP projects. He launched a power reforms roadmap anchored on the NiPP and the full privatization of PHCN. In less than one year, GEJ's govt has been able to complete the Mambilla and Zungeru power stations bringing back the megawatts to over 4000. In a bid to address the problems associated with transmission, govt has also begun the repair of transmission lines covering over 6000 km and you know this is not a cup of tea. For distribution, they decided to privatize the 11 distribution companies and have signed bulk trader purchase agreement with them with world bank guarantees. Thirdly, the next target you highlighted is "explore alternative energy sources ...." this the govt has achieved by building those power stations which are thermal. They seek to take advantage of our huge gas reserves but unfortunately, this has created another major challenge. Most of the IOC's are skeptical to invest heavily in gas in a market where there's no much demand for commercial gas. That notwithstanding, the NGC which is the gas arm of NNPC is seriously constrained by billions owed it by PHCN. On the other hand, PHCN attributes its inability to discharge its indebtedness to low revenue generation, poor metering, and low tariffs. This brings me to the fourth target as highlighted in your post. Fourthy, the next target reads viz" renew attention to the question of electricity tariffs" it is pursuant to the realization of this objective that govt recently reviewed eelectricity tariffs on June 1. The need to have a cost reflective tariff is long overdue and will play a key role in actualising the 5th target which is " Deregulate the power sector to allow increased private sector participation." Fifthly,, the increased tariffs and eventual privatization of PHCN will now facilitate the much needed private sector investments in our power sector. Thankfully, General Electric co and others have already come in to participate. Gej is really working.


What i am yet to ascertain is the reason behind their media works. Sincerely if i am this Govt., i would rather
concentrate on providing solution to the problem silently, this is an issue successive administrations have failed
over and over, therefore, it is a very sensitive issue.

I had expected Prof. Nnaji and his team to concentrate and get us out of this mess, then give us success story.
Nigerians are actually tired of every kind of promise and jingle both in the media and wherever, we understand that
all our developmental indicators are pointing towards power sector infrastructure. Let our leadership not jeopardise
this in the name of politics, i still prefer they keep silent and deliver rather than going to display their media
strenght that has not direct value added to the issue at hand and thereafter failing.
Developmental indices have shown a dangerous dip even when compared from their already sorry past.
Though it's very visible that they are not concentrating on their anticipated success, i still wish to say

"May they succeed!
Re: Jonathan's Power Reform Is Positive,working and on track by maigaskiya1: 5:35pm On Jun 18, 2012
hercules07: Working ko Working ni, you guys should stop fooling yourselves, the power sector is as comatose as ever.
Re: Jonathan's Power Reform Is Positive,working and on track by dedeike: 5:42pm On Jun 18, 2012
Philip 0906. Very escapist strategy. Let's face issues and leave people with their identities. Myself, I'm not a new comer to this forum as my profile will suggest to you. I have been in Nairaland for over 5 years and still counting but that will not make me not to say the truth. I praise when necessary and criticise when necessary. You strike me as one of those who have sworn on oath not to see anything good in this administration and that is why you carefully avoided my earlier post on this matter and chose to chase other people's shadows. But it won't avail you. Let's go back to facts. I would try to itemise the issues so that it will be easy for you to single out and deal with respectively rather than confuse issues.
1. The Jonathan administration launched a roadmap on power sector reforms anchored on the power reforms Act 2005.
2 . Pursuant to the realisation of this roadmap, GEJ revived the National Integrated Power Projects(NIPP) earlier initiated by Obasanjo and abandoned by Yaradua.
3. For generation, 10 thermal power plants are being constructed in order to add 4,775 megawatts to the national grid. These include omotosho, Alaoji, sapele, Geregu, ormolu, etc. I challenge you to say you have been to Alaoji power plant in Aba and theres nothing like such there.
4. For distribution, the Fg is privatising the distribution process and has signed bulk purchase trader agreements with many companies including General electric and Siemens , I also dare you to say its a lie.
5, For transmission, the Fg has awarded 101 projects in 41 separate engineering procurement and construction(EPC) contracts. They have completed over 809 km with over 22, 000 kva capacity and they have close to 6000 km to cover.
6. To address the challenge of gas supply, the Fg increased tariffs on June 1 to a more cost reflective tariff that will encourage private sector involvement in the purchase of gas from the oil companies.
Again, I would want you to refute the fact above. I challenge you to say no tariffs were reviewed upwardly and there's no such move at all. I await patiently your rejoinder on the facts above.
Re: Jonathan's Power Reform Is Positive,working and on track by FrankC3: 5:42pm On Jun 18, 2012
Have you noticed that the rabid GEJ hater only peep in, call others fools for presenting factual and documented points of views and bolt out before being pinned down with a questions that will make them defend their POV. And that is my problem with them, in Nigeria today, especially if you are anywhere in the SW, if you want to sound intelligent, just call GEJ names. You don't even have to say anything else. Unfortunately for them, some of us know better. They are just scared that GEJ will succeed, and you know what? He WILL!!
Re: Jonathan's Power Reform Is Positive,working and on track by uzomagic(m): 5:45pm On Jun 18, 2012
hillsate: Who are these govt agents on nairaland?
Nigeria had about 2300MW in 1999, and today it has peaked at about 3200MW.
PDP govt has only added 1000MW in all the 13yrs of her rule, what makes you think PDP, GEJ or is it Barth, is serious and committed to any power reform?
A govt that is only thinking about generation without mapping out a well laid strategy for gas production and distribution is only joking. Are they going to be transporting the gas (that is not even available) via trucks to the NIPP's or have they started laying down pipes for gas distribution?
Power sector reform my foot!
Guys, the so called improvement you see today in generation is simply an overworking the systems currently available to deceive nigerians. The systems will soon pack up and we'll be back to square one.
Firstly, you have chosen to ignore the well articulated views and those who have gone the extra mile to reproduce the entire interview. I think that the processes and strategies put forward by the minister are logical enough. We should at least give him a chance and wait for his proverbial demise before u grant him an internment. And I think that all citizens should understand before criticizing
Re: Jonathan's Power Reform Is Positive,working and on track by Guapo(m): 5:46pm On Jun 18, 2012
I believe the power sector will soon experience the transformation enjoyed by the telecoms sector.
Ever since that transformation occurred in telecoms, I changed ma view of the whole economy.
Some sectors are really experiencing change.
Corruption has eaten deep to the very core of our existence as a nation, power issues should be history by now.
I don't blame those who can't feel the change yet. They will only feel the change when they see it. But after going thru d program of d present administration, I am fully convinced that the transformation is closer than ever before. But this sector needs the Petroleum sector to step on d gas pedal with d issue of gas supply. With this slow motion, I don't see a remarkable improvement in power until like 5yrs time. A country like nigeria needs power generation of up to 50k MW, at dis pace it may take a decade to get there.
GEJ wants to solve this power issue, that I believe.
Gone are the days of queuing at a NITEL booth just to call US, I call today from ma bedside. I am positive I'll be saying something similar about electricity soon. Hw I wish our leaders av no trace of corruption in them, naija wuld av soared higher than dis.
Re: Jonathan's Power Reform Is Positive,working and on track by maigaskiya1: 5:53pm On Jun 18, 2012
Captainajama: Swintine,be constructive and unbiased in ur criticisms. Don't just talk because you wan2. What GEJ is doing in that sector within this one year in office is what past leaders failed to do. Facts please!
u idiots re just hatng 4 notng i wok i an oil nd gas company md belev me d minister is rite.d gas is ntng flowng 2d stations.as am tokng 2u nija hs completd 2500 capacity stations makng a total of 5400 bt gas hs ben d isue.so u pepl castng gudluk re only blinded by hate.obj spent 8ys nd squandrd 16biln dols nd yet dnt gve up 2 3000mw.yardua spent 3ys nd promisd 6000mw nd yet stories.bt ds man in les dan 2ys gav us 5400mw wic is d highest in nija history nd yet nn pat in d bk.oky o hate on
Re: Jonathan's Power Reform Is Positive,working and on track by uzomagic(m): 5:53pm On Jun 18, 2012
subterfuge: With over 90% of Nigeria in Blackout, what bullshit reforms is on track. All you sycophants and praise singers, be warned. Power may be sweet as honey, but can also be bitter as vinegar!!! Remember Patrice lumumba, Samuel Doe? Moamar Ghadafi, Hosni mubarak? All th
ese people were better and brighter than this dullard jonathan... To be fore warned, is to be fore armed.
? I'm alarmed at ur propensity for half-truths and outright falsehood. If 90% of the nation, were in blackout, this discussion will not been taking place.
Re: Jonathan's Power Reform Is Positive,working and on track by Ojobojo1(m): 6:15pm On Jun 18, 2012
The man is a bloody liar,hw can he say 1mw costs 1million$,china promised to give us constant power for 1billion$ and that would be at least 10000mw.
Re: Jonathan's Power Reform Is Positive,working and on track by Nobody: 6:29pm On Jun 18, 2012
Bored! Nee
Re: Jonathan's Power Reform Is Positive,working and on track by uzomagic(m): 6:34pm On Jun 18, 2012
swintiney: @captainajama, u should hav said what i said that isn't true either, how many times did obj boast of achieving 4MW? So shocked that wen GEJ/JEG came he still claimed of reaching 4MW, or ar we in 2nd 4MW? Or have we not noticed dat GEJ uses constant power supply 2 decieve us while lunching killing measures? I'v gone a step ahead of the facts u askd 4 to give u the truth. GEJ is showing signs of failure, if he does, then u & i would agree we ended up losing about 20yrs of our development to virtually OBJ & GEJ.

Mind u, GEJ has startd making up excuses 4 anticipated failure by saying dat the country was already this bad b4 he became presido, did he not know this before becoming presido?
if u needed a GEJ to tell u that the Country was in a bad state before he came, then u must either not be a Nigerian or u're a toddler. Barth Nnaji's interview is both incisive and revealing. It has also articulated the challenges, constraints and modest achievements with a clear demonstration of the willingness, knowledge and determination to make it work. If you are only capable of summarizing it as excuses, then ur cognitive faculties must be called to question
Re: Jonathan's Power Reform Is Positive,working and on track by chuksvoice: 6:34pm On Jun 18, 2012
Educate ko,
All these are just talk. I as an average man on d street am not interested in any talk or masterplan. What i want to see is uninterupted power supply. Until then, let them keep their 4000megawatt to themselves. Rubbish. Shio
Re: Jonathan's Power Reform Is Positive,working and on track by kutchs: 6:42pm On Jun 18, 2012
I think somepple were just born to hate GEJ and it is shameful. I have been opportuned to visit power stations like Mambilla, Alaoji, and Afam and the work going on there have to be appreciated. While more still needs to be done we are hopeful. As for that guy lieing that 90% of nigerians are in blackout, pls count me out of that number.
Re: Jonathan's Power Reform Is Positive,working and on track by chucky234(m): 6:45pm On Jun 18, 2012
That's why this country will never move forward,people eulogises Nanji and GEJ just because of a written interview from FG accredited newspaper called THISDAY.
Nigeria have only achieve 1000MW in 13yrs and we are celebrating when we should be looking at the billions spent in achieving that,the electricity situation has not in any way change as people are insinuating.
Nigeria with 150m people are celebtrating a minister who achieved 200MW in 12 months when smaller nations 6m people are above 15,000MW and 20,000MW,South Africa with about 48m people generates about 40,000MW of electricity and we applauds 3600MW for a nation who budget trillions annually as national budget.
South Africa budget less than what out senators earns annually and yet generates 97 percent more electricity than our dear nation spear headed by GEJ,what a shame.
People should wake and not be taken by mere written interview,its high time we put sentiment aside and hold our leaders accountable.
Re: Jonathan's Power Reform Is Positive,working and on track by oiseworld: 7:06pm On Jun 18, 2012
swintiney:


What i am yet to ascertain is the reason behind their media works. Sincerely if i am this Govt., i would rather
concentrate on providing solution to the problem silently, this is an issue successive administrations have failed
over and over, therefore, it is a very sensitive issue.

I had expected Prof. Nnaji and his team to concentrate and get us out of this mess, then give us success story.
Nigerians are actually tired of every kind of promise and jingle both in the media and wherever, we understand that
all our developmental indicators are pointing towards power sector infrastructure. Let our leadership not jeopardise
this in the name of politics, i still prefer they keep silent and deliver rather than going to display their media
strenght that has not direct value added to the issue at hand and thereafter failing.
Developmental indices have shown a dangerous dip even when compared from their already sorry past.
Though it's very visible that they are not concentrating on their anticipated success, i still wish to say

"May they succeed!




if they talk, they talk too much;if they don't, they are leaving us in the dark and not carring us along.
Which one you dey self?
Re: Jonathan's Power Reform Is Positive,working and on track by swintiney: 7:11pm On Jun 18, 2012
If pro Jonathan Power Reform activists on this thread say that power has improved across the nation,
i don't think it is correct, at least i am still in Naija presently, if they say that the anticipated
outcome of the reform as fronted by the media and the rest is a precursor that the future will be bright,
then let that be a different subject matter. Remember that some guys here in NL are claiming that power
supply has improved; this i refuse to agree totally.

We are still helpless as regards power in this country, let's possibly change topic to the analysis of
the future so that they can been seen as being correct, maybe we may even debate whether it is on track
at all, not actually that it is working ( there is power) as seen on the topic of discussion.

Meanwhile all these projects we hear today in NDPHC started during OBJ, not even Jonathan, i know they are the
same projects that Elumelu presided over in the house of reps. Same Bart Nnaji was there in the past as Special
Adviser in the power game, same James Olotu and other ED's have been in NDPHC all these while designing power plants
without possible nearby energy source, only to start shouting gas supply! gas supply! when they know they would be
held accountable for dividends of all these wastes exactly at this very time, only to want to become a Genuis over
night via the media. If they were intelligent in the first place, they would have started the gas pipeline project
side by side with the plants, they are only trying to use social Engineering on the Citizenry. They emphasize the gas
issue as though the same people only came during this Jonathan's regime.

Maybe they are likely to successfully provide power in future but certainly not that there is better supply as we speak now,
at least i am a user of same power and i really feel it.
Re: Jonathan's Power Reform Is Positive,working and on track by chucky234(m): 7:13pm On Jun 18, 2012
mai gaskiya: u idiots re just hatng 4 notng i wok i an oil nd gas company md belev me d minister is rite.d gas is ntng flowng 2d stations.as am tokng 2u nija hs completd 2500 capacity stations makng a total of 5400 bt gas hs ben d isue.so u pepl castng gudluk re only blinded by hate.obj spent 8ys nd squandrd 16biln dols nd yet dnt gve up 2 3000mw.yardua spent 3ys nd promisd 6000mw nd yet stories.bt ds man in les dan 2ys gav us 5400mw wic is d highest in nija history nd yet nn pat in d bk.oky o hate on
5400MW? Are you dreaming,guy wake up to reality,this govt spend more money power than so many smaller nations but achieve far less than those countries in terms of results. Shine your eyes well well,don't be deceived.
Re: Jonathan's Power Reform Is Positive,working and on track by ollyruffy: 7:18pm On Jun 18, 2012
Who is fooling who? GEJ or Bath or his agents on Nairaland? Where is the power? Power outage remains as usual across the country.

2 Likes

Re: Jonathan's Power Reform Is Positive,working and on track by Revolva(m): 7:18pm On Jun 18, 2012
Power reform on what abeg abeg abeg !!!!! Nobetoday wedondeyhearam
Re: Jonathan's Power Reform Is Positive,working and on track by dayokanu(m): 7:22pm On Jun 18, 2012
All these paid govt agents sha?

Everytime i call naija they are always on generator and complaining about power outage yet some never do wells are spamming us on NL about how power has improved


Wasnt that the same way they sold some make-believe power supply improvement during the regime of OBJ and 6yrs later we still dey roast inside darkness
Re: Jonathan's Power Reform Is Positive,working and on track by henrico247(m): 7:46pm On Jun 18, 2012
Has boko haram president being informed about this development?
Re: Jonathan's Power Reform Is Positive,working and on track by member479760: 7:49pm On Jun 18, 2012
power is not banking that one can lie, the fact is still remain the fact - NO LIGHT. lets wait for the next 100 years if things will happen. 52 years we have only 4000MW, in 100 years lets hope to have 8000MW.

we phuck in darkness, born in darkness, grow in darkness and die in darkness - not new thing to us!
Re: Jonathan's Power Reform Is Positive,working and on track by billyG(m): 8:03pm On Jun 18, 2012
since inception all d PDP GOVT.they do is talk!talk!!talk!!! we want to see enough electricity after so many million dollars where spent in the sector let barth show nigerian which power station has been completed & working.
Re: Jonathan's Power Reform Is Positive,working and on track by oyb(m): 8:16pm On Jun 18, 2012
billyG: since inception all d PDP GOVT.they do is talk!talk!!talk!!!SPAM SPAM SPAM we want to see enough electricity after so many million dollars where spent in the sector let barth show nigerian which power station has been completed & working.
Re: Jonathan's Power Reform Is Positive,working and on track by Ovaiegbe(m): 9:49pm On Jun 18, 2012
nakedall: power is not banking that one can lie, the fact is still remain the fact - NO LIGHT. lets wait for the next 100 years if things will happen. 52 years we have only 4000MW, in 100 years lets hope to have 8000MW.

we phuck in darkness, born in darkness, grow in darkness and die in darkness - not new thing to us!
WHILE I HATE YOUR VULGARITY, I WILL STILL COMMENT ON YOUR POST. ELECTRICITY CAN BE LIKENED TO A DELAPIDATED HOUSE INHERITED FROM YOUR GRAND-FATHER bad roof, cracked walls and probably rising damp. YOU HAVE NEAGRE RESOURCES AND HAVE TO USE THE HOUSE THE WAY IT IS UNTIL YOU CAN FIX IT. yOU DO NOT BUILD A HOUSE IN DAY OR A WEEK.
THOSE WHO KNOW ARE TELLING YOU THAT THE REFORM IS ON COURSE BUT YOU WANT TO PREFER FIGHTING OVER LIGHT YOU DO NOT HAVE TODAY. THIS IS A COUNTRY WE ARE TALKING ABOUT AND NOT YOUR HOUSE WHERE YOU PROBABLY CAN USE AN "I PASS MY NEIGHBOUR", PROBLEM SOLVED. EVERY NATION HAS A POWER PLAN WHERE ANTICIPATED LOAD DEMAND IS PLANNED FOR BEFORE IT ARISES BUT YOU HAVE A NATION WHERE BEFORE 1999 NO SUCH PLAN EXISTED AND ELECTRICITY WAS SEEM A A PRIVILEDGE. SORRY TO SAY, YOU WOULDN'T SEE LIGHT BY MORNING TOMMOROW LIKE YOU EXPECT BUT YOU WILL HAVE IMPROVED POWER SUPPLY BY THE END OF THE YEAR AND ONWARDS. tHAT SHOULD SUFFICE.
Re: Jonathan's Power Reform Is Positive,working and on track by drnoel: 9:55pm On Jun 18, 2012
read that interview some days back and its clear they still have a lot of problems. My main worry though is the continous use of gas to power electricity. I think there should be a radical change in that direction. U guys should remeber that it is now estimated that the world oil would last 4 just the next 50 years and then it would run out. Guys tell me, once the oil Nigeria relies heavily on runs out, what would be the countries next source of income at the end of the petrochemical age (this is something our leaders are not thinking about). Other countries are now investing heavily on green power, even Europe and America is talking of raising solar enegry in our backyard (the sahara desert) to supply them with electricity when the petrochemical age ends. Heard their estimated budget is a very whooping sum but they seem to be committed to seeing it thru, but Nigeria is still talking of Gas turbines.

1 Like

Re: Jonathan's Power Reform Is Positive,working and on track by Captainajama: 10:58pm On Jun 18, 2012
drnoel: read that interview some days back and its clear they still have a lot of problems. My main worry though is the continous use of gas to power electricity. I think there should be a radical change in that direction. U guys should remeber that it is now estimated that the world oil would last 4 just the next 50 years and then it would run out. Guys tell me, once the oil Nigeria relies heavily on runs out, what would be the countries next source of income at the end of the petrochemical age (this is something our leaders are not thinking about). Other countries are now investing heavily on green power, even Europe and America is talking of raising solar enegry in the sahara desert to supply them with electricity when the petrochemical age ends. Heard their estimated budget is a very whooping sum but they seem to be committed to seeing it thru, but Nigeria is still talking of Gas turbines.
this is why this forum is important. We talk on the present and look at the future
Re: Jonathan's Power Reform Is Positive,working and on track by BetaThings: 12:42am On Jun 19, 2012
Nigerians, don't be fooled. This propaganda started over 2 years ago

See this
posted in April 2010
BTW the poster also abused Yaradua when he was still president
If anyone says anything negative about Jonathan, we are told he is president

http://www.nairaland.com/433272/jonathan-goodluck-miracle-man

Jakumo: Much has been said about the DRAMATIC improvement in the supply of grid electrical power to Nigeria over the past few months, but a new thread is still in order, since Jonathan Goodluck has slayed a monster that NO OTHER Nigerian head of state DARED tackle at any time over the past 30 years.

It began virtually the instant President Goodluck took over from the long dead and entirely worthless Ex-President Yar Adua, with lights and electrical appliances flickering to life all over Nigeria for the first time in the living memory of any person less than 30 years old, and now, there flows near 24-hour stable electrical power over vast, long forgotten swathes of a land formerly condemned to permanent darkness.

Evidently, President Goodluck single handedly confronted, defeated and uprooted that profoundly evil gang of criminals who held on to key jobs in the national electrical utility company, exploiting their access to the key equipment for the devious purpose of profiteering from Nigeria's electrical blackout by making sure all electrical outlets remained permanently dead.  With President Goodluck now DIRECTLY running Nigeria's electrical power sector, all the worn-out excuses for the perennial blackout have miraculously vanished overnight.  This accomplishent is almost beyond comprehension, and is without equal in Nigeria's entire history.

If there is a minor regret most Nigerians may quietly harbor in the wake of this astonishing development, it would probably be that those squalid, greedy saboteurs of the country's power supply capability cannot simply be lined up against a wall and shot to pieces in a hail of machinegun fire before an exultant crowd.

All in all, Jonathan Goodluck ALREADY qualifies as Nigeria's MIRACLE MAN, for he has accomplished the seemingly impossible in virtually no time at all.     Bravo Johnny !  You is da MAN !  Take my wife, please !   I would be greatly honored.

What is beyond comprehension and without equal is the desperate propaganda
and the determination to brainwash us
2015 campaign has started. This is a coordinated attack on our intelligence
Re: Jonathan's Power Reform Is Positive,working and on track by BetaThings: 12:52am On Jun 19, 2012
Missed milestones of the power sector roadmap

http://www.businessdayonline.com/NG/index.php/analysis/commentary/24821-missed-milestones-of-the-power-sector-roadmap

We have the will. This Roadmap shows the way". With those words President Goodluck Jonathan closed his speech in the presence of industry captains, leading government officials, investment bankers, international investors and development bankers as the Federal Government unveiled the Power Sector Roadmap - perhaps the most comprehensive policy document ever put together in Nigeria. It is now approximately 12 months since that gathering at Eko hotel and industry analysts are wondering if they picked up the wrong map. No you didn't. What you may have missed to grab is a territory brief - a detailed description of the socio-political nature of policy implementation in Nigeria.

Let me commence by reinstating, unlike most analysts, my conviction that the privatization boat of the Power Holding Company of Nigeria (PHCN) successor companies will eventually berth, though not without turbulence. Secondly, it is worth refreshing that the Electric Power Sector Reform Act 2005 (EPSR Act 2005) is the underlining document upon which the roadmap draws life. It is misleading to analyze the two documents in isolation. The act establishes what should be done and how. The roadmap simply outlines the plan to accelerate the pace of activity with respect to the EPSR Act. This became necessary as the process lost momentum under late President Yar'Adua.

The Presidential Action Committee on Power (PACP) constituted by President Goodluck Jonathan has done a good job of re-tracking the reform agenda and documenting an implementation path laced with milestones and performance timelines. However, these milestones, regrettably, are consistently being missed likewise the established timelines. Commentators have often blamed Nigeria's perennial sacrificial lamb - "the Nigerian Factor" for this failure. I do not subscribe to this school of thought. Infact, that phrase should now begin to take its place in Nigeria's archives given the renewed resolve, energy and determination of some Nigerians to do the right thing. Evidence can be fetched from the last general elections. Another excuse offered for this failure is the last general elections. Again, this is tenuous. Didn't policymakers know an election year was approaching while setting timelines and targets? Wouldn't it be prudent to anticipate electioneering delays and incorporate it in the programs? Shouldn't the machinery of existing reforms be running while new promises are made to the electorate?

By and large, the success of the reform agenda hinges on two platforms. First, the political will of Mr. President and the relevant political class. Secondly, and by extension, the ability of Nigerian Electricity Regulatory Commission (NERC) to set an appropriate cost reflective tariff now, not in future. It appears the former is consciously or unconsciously being established. NERC, however seems to be staggering along with its own end of the deal. Understandably, the first milestone established by the roadmap is that NERC will establish a "genuine cost reflective" pricing regime by Q12011. This obviously didn't happen and when the new price regime eventually takes effect in July 2011 the tariff as published by NERC will remain non-reflective of capital investment cost sufficient to attract discerning investors. The question then is why review prices at all if the new tariff regime will still fall short of achieving its objective which is to attract investment?

Policymakers have attempted to justify this by claiming the tariff increases are phased and that tariff will ultimately be increased to a cost reflective level during the transition period. It is further claimed that this approach will prevent a "rate shock" and help consumers within the R1 bracket adjust. This argument is economically defective. The least tariff per kwh that any Nigerian pays to self-generate electricity is in the region of N40-N60/Kwh. This includes capacity charge, energy charge and operation and maintenance charge excluding "inconvenience charge" (noise level, transaction cost, environmental impacts etc) which can double the figure when quantified. Hence, the rate shock argument is not compelling as the average Nigerian already pays thrice the tariff proposed through self-generation.

A second argument that has been put forward by policy makers is that a phased tariff introduction will guarantee potential investors of government's commitment to ultimately adopt a cost reflective tariff regime. Again, this is unconvincing. The Multi Year Tariff Order (MYTO) - the methodology upon which both arguments and indeed, graduated tariff regimes are based - aims to set electricity tariffs that support the viability and growth of the Industry over a 15year path appears insensitive to the immediate and urgent need for investment in the entire power sector value chain. Substantial volume of the envisaged $3.5billion/year investment in the power sector will be in the form of FDI's. These investors, looking to get in through Federal Government's divestment window, will undoubtedly underwrite parts of their investment in the form of political risk insurance.

Without comparing the risk profile of investments in the telecoms sector, it is worth mentioning that MTN and other telecom operators took similar insurances at the time of entering the Nigerian market. Aside from political disturbances, a prominent risk that investors look to cover under the political risk bundle is failure of regulators/government implementing planned tariff adjustments. This uncertainty undoubtedly adds to the risk premium payable on the bundle and ultimately the cost of service. NERC must understand this relationship and implement a genuine cost reflective tariff urgently. A key component of regulatory function is to balance the investor's quest for "adequate" return on investment with the consumer's desire for quality at a reasonable price. Regulatory policies must be skewed to achieve this balance.
Re: Jonathan's Power Reform Is Positive,working and on track by deyrock(m): 12:54am On Jun 19, 2012
Don't be decieved by wht u read, see or hear. There are many communities in this country dat has not seen pool or wire let to talk of ligth.
Re: Jonathan's Power Reform Is Positive,working and on track by BetaThings: 3:36am On Jun 19, 2012
^^^
When a several newly-registered posters open thread to psychophantically eulogise the government, you know they are desperate for something
attention diversion?
From what?
Subsidy report?
Malabu oil scam?
Harliburton scam internment?
Siemens scam burial?
Apart from the direct enemies of Jonathan (Ibori, Sylva, Nwodo, Okar, Ogbulafor etc), how many enemies of Nigerians has he tackled?
We should not be fooled; we should not be played

BTW - let someone tell us how successful Geometric power is
Re: Jonathan's Power Reform Is Positive,working and on track by Rednose: 5:47am On Jun 19, 2012
In my opinion, Nigeria is over-dependent on oil & gas. Govt should invest more in renewable energy. It is good to see some of the street lights in Lagos being powered by solar and a few by wind. In addition, Nigerians should become independent of government wherever this is possible, some are already.

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