**he angered Dangote, whose bid arrived late & was rejected.
**VP Sambo's business interest was threatened by fair-play.
**IBB, Tinubu, Abdusalmi, promoters of some of the bidding consortium flexed their muscles.
**Nnaji's exposing of about 40% Ghost workers angered Labour leaders.

Former Minister of Power, Mr Barth Nnaji did not resign because of a conflict of interest, but was forced out by the duo of Vice President, Alhaji Namadi Sambo and Billionaire and Africa's richest man, Aliko Dangote. This much was borne out in this weeks ECONOMIST.

The internationally renowned magazine said Mr Nnaji's departure was
hastened because he battled with the vice-president, Namadi Sambo, who owns companies with interests in the public power sector. Sambo also oversees the government’s national privatisation council and heads a programme to build ten new state power stations that Mr Nnaji hoped to privatise.

Mr Nnaji also incurred Dangote's displeasure because a bid from Nigeria’s richest tycoon arrived apparently minutes late, and therefore was rejected.

It has also been revealed that two former heads of state, retired Generals Ibrahim Babangida and Abdulsalami Abubakar, as well as former Governor of Lagos State and leader of the Action Congress of Nigeria (ACN), Senator Ahmed Bola Tinubu, are the promoters of some of the bidding consortiums contesting for the 18 companies unbundled from the Power Holding Company of Nigeria (PHCN).

ALTHOUGH Nigeria has almost as many inhabitants as Brazil, it produces only 5% of the electricity. Many Nigerian leaders have tried to boost the state’s power supply, but many more have become rich by obstructing it, earning fees from private generation and stealing official funds meant for new power plants. When he was elected last year, President Goodluck Jonathan promised to make electricity reform his big thing, hoping to transform the lives of millions of Nigerians who have spent decades in the dark.

But the resignation of his power minister on August 28th over a conflict of interest has exposed the rot in a process that seemed to be running relatively smoothly. Bartholomew (“Barth”) Nnaji, a respected technocrat who had been minister of power since last year, was meant to sell six generating companies and 11 distribution companies. Months ago he declared that a firm in which he owns shares held in a trust was involved in the bidding. It is not unusual for Nigerian politicians to engage in business overseen by their office; what is unusual is for any of them to resign.

Mr Nnaji’s supporters say that opponents of privatisation belatedly and unfairly engineered his departure. “Nnaji was the best person for the job,” says an adviser at the presidential task-force on the reform of power. “But he was getting in the way of other interests.”

The minister had certainly made enemies. He took on trade unions opposed to mass job cuts. A key aspect of privatisation is unbundling the Power Holding Company of Nigeria, a bloated and ill-managed monopoly, with thousands of “ghost” workers on the payroll. Two-fifths of the staff are apparently listed as drivers. Mr Nnaji tried for months to negotiate redundancy terms, as otherwise serious investors are unlikely to bid. It remains to be seen whether the unions have won the battle. Privatisation may be delayed.

Mr Nnaji also warred with the vice-president, Namadi Sambo, who owns companies with interests in the public power sector, oversees the government’s national privatisation council and heads a programme to build ten new state power stations that Mr Nnaji hoped to privatise. This may have hastened his departure.

Worrying signs have also emerged over transparency. Watchdogs were at the last minute relegated from being active participants in evaluating bids to observers, says a consultant. Their role is important because firms may win bids with lofty promises but fail to get finance or honour their contracts. This has hampered past privatisations. The current list of bidders is longer than expected and includes many local firms. Preferred bidders may be announced next month.

According to the government, the power sector needs $10 billion of investment a year for at least a decade.
Mr Nnaji’s resignation is troubling investors who feel he brought expertise to a process that had previously been paralysed by corruption.
Watched by foreign development agencies, eligible bidders have so far been selected in a clean and efficient manner. When a bid from Nigeria’s richest tycoon, Aliko Dangote, arrived apparently minutes late, it was rejected. - Elombah.

Ok

So what can anybody do?