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We Have No Money To Fix Power Sector – Jebba Power Chief by freegaza(m): 5:52pm On Jun 22, 2010
We’ve no money to fix power sector –FG
Written by Fidelis Mac-Leva   
Tuesday, 22 June 2010 00:00

Even with President Goodluck Jonathan taking charge of the power sector, the days of darkness in Nigeria may yet be over as the Federal government says it cannot afford the $6billion required annually to sustain the country’s power needs.

This submission was made known by the Minister of State for Power, Nuhu Somo Wya, while addressing electricity workers during a facility visit to the Jebba hydroelectric power plant in Niger State.

“Nigeria would require $6billion annually to meet the Nation’s aspirations for the actualization of vision 20:2020 through sustaining the electricity needs of the country”, Wya said, stressing, however, that “government does not have this kind of money to power the energy needs of the economy hence the resort to seeking the intervention of mega financial institutions on the energy crisis.”

According to him, these institutions have been reluctant to commit public funds into public enterprises run by government because governments are not known to be committed, efficient and profit-oriented managers of public enterprises.

The minister said the abject poverty level among Nigerians is unacceptable in a country richly blessed with abundant human and natural resources.

Wya said the president assumed the leadership of the power sector to underscore the priority the government attaches to the power infrastructure, adding “the President is depressed whenever a comparative report of power output of nations less endowed than Nigeria is presented to him.”

While allaying the fears of electricity workers over the possibility of rationalisation, the minister explained that the ongoing reforms in the sector were meant to encourage private public participation in order to meet the yearnings of Nigerians in the power sector.

Last year the sum of $5.3billion was withdrawn from the excess crude account to fix the power sector with no remarkable result. The Central Bank of Nigeria(CBN) has also announced a N500billion rescue package to fix the manufacturing sector including power.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by freegaza(m): 5:56pm On Jun 22, 2010
but you have the money to celebrate independence, sad sad sad
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by freegaza(m): 5:59pm On Jun 22, 2010
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by Fhemmmy: 6:07pm On Jun 22, 2010
With 10B Naira to be spent on celebration, i could understand . . . . cool
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by xterra2(m): 6:25pm On Jun 22, 2010
You beat me to this
IF you need $6 billion annually Just Head to Ota farms recover whats left of the $16 billion and sell of his properties and those who embezzle them
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by hatch: 6:34pm On Jun 22, 2010
Yet they have 10 billion to lavish on 50 years of nothing and 900 million on idiots going to SA for the world cup ! Bunch of misplaced priority goons.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by Fhemmmy: 6:36pm On Jun 22, 2010
So sad how we dont have money for what matters and will improve our economy
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by Nobody: 6:43pm On Jun 22, 2010
hatch#:

Yet they have 10 billion to lavish on 50 years of nothing and 900 million on idiots going to SA for the world cup ! Bunch of misplaced priority goons.
[/quote/]i guess wasting such amount of money on a party is more important to our president than having electricity.shame on him embarassed embarassed embarassed angry angry angry angry shocked shocked shocked shocked
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by Beaf: 7:17pm On Jun 22, 2010
There is a very easy way to meet the $6billion annually. Develop the country and stop relying on oil! This is another another opportunity presenting itself.

There should be sincere and well thought out plans and set goals to move the country forward, step by step. We can see the annual $6billion cost as a loan toward creating one of the most fundamental legs of an enabling environment for development.

We can get there. Also, massive power stations and super expensive distribution lines are not the only way (they sure are the old way, though); we need to look at alternative and environmentally friendly ways of generating power for each household in a decoupled grid system. The benefits would be three fold;
[list]
[li]Quick turn around of our power generation situation for the better[/li]
[li]Achieve 24 / 7 power availability cheaply (by orders of magnitude)[/li]
[li]Provide skills and jobs[/li]
[/list]

The technology and knowhow is out there, just waiting to be applied.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by Nobody: 7:22pm On Jun 22, 2010
This is serious. So what should Nigerians do now? Divide the Country?
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by Kobojunkie: 7:30pm On Jun 22, 2010
What exactly will dividing in response to this do to help the situation?
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by OAM4J: 7:54pm On Jun 22, 2010
So it's an hopeless situation now. Pity.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by SapeleGuy: 8:24pm On Jun 22, 2010
$6 billion annually from now until when? 2020?

Bloody armed robbers.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by Nobody: 11:28pm On Jun 22, 2010
Kobojunkie:

What exactly will dividing in response to this do to help the situation?

The horse has said it - Nigeria will always be in disarray. so what do we do?
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by desgiezd(m): 11:44pm On Jun 22, 2010
Well, the government has spoken. To be fore-warned is to be fore-armed. If by the time Jonathan's tenure is over and power generation has degenerated from the present 3,500+ MW to less than 250 MW and as a result of rationing your area now gets electricity for 5 minutes per day and the five minutes falls to around 2 or 3am, I hope you wont complain.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by monkeyleg: 11:50am On Jun 23, 2010
Well, I am not sure I was expecting this problem to be tackled and fixed by Jonathan. We lack the collective will to move our country forward, Until we deal with that issue, Nigeria will remain where it is - rotten and Finished
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by Gbawe: 12:07pm On Jun 23, 2010
With each passing day , it is becoming more obvious that Jonathan , as some of us stated,  is just another "business-as-usual" politician. Jonathan knows what needs to be done because by stating recently that Nigerian States would be given more autonomy to generate and distribute energy , Mr. President was directly acknowledging the main problem with the power sector to be the overbearing, corrupt and incompetent involvement of the FG with processes , in a modern Nation , it should remove its hands from.

Guys like Fashola have being using PPP (Private-public- partnership) schemes to good effect. They will not need substantial fundings from the FG if the power sector is fully deregulated since they can simply bring in an investment consortium that will finance even the most expensive projects if capital outlay can be collected over time with good profit returns.

Jonathan is appearing to be another waste of space (s)elected leader lacking in political will and more beholdened to the cabals ruining Nigeria (diesel,generator mafia et al) than to a commitment to do what is right for our nation .
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by chidichris(m): 12:14pm On Jun 23, 2010
pdp fix power problems? no way. this party is dark and in darkness they will survive so expecting light under the pdp led administration means waiting forever.
remember, pdp is on a road project that will link nigeria with cameroun - a square peg in a round hole.
who said we have a problem of $6b? what happened to all the recovered loots of the abachas? what ever happened to the $16b contracts of the obasanjo's administration?
only ribadu can give nigeria the much needed electricity from the recovered loots.
all we need is to speak to obasanjo and inform him of this latest development and he will just tell either andy uba, el rufai, bode george, tony annenih or ribadu to just dash us that small money.
jonathan is just like another fool been used by these high way robbers to present their agenda.
how much did pdp raise within a few weeks to sponsor soludo in anambra state? how much did pdp raise for yar adua campeign? why do we have dnagotes, adenugas, and their likes?
they have more interest in sending ppl to dubai to monitor ibori's situation rather than fixing our pressing problems here.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by SkyBlue1: 12:20pm On Jun 23, 2010
freegaza:

[b]We’ve no money to fix power sector –FG[/b]
Written by Fidelis Mac-Leva   
Tuesday, 22 June 2010 00:00
Even with President Goodluck Jonathan taking charge of the power sector, the days of darkness in Nigeria may yet be over as the Federal government says it cannot afford the $6billion required annually to sustain the country’s power needs.

This submission was made known by the Minister of State for Power, Nuhu Somo Wya, while addressing electricity workers during a facility visit to the Jebba hydroelectric power plant in Niger State.

“Nigeria would require $6billion annually to meet the Nation’s aspirations for the actualization of vision 20:2020 through sustaining the electricity needs of the country”, Wya said, stressing, however, that “government does not have this kind of money to power the energy needs of the economy hence the resort to seeking the intervention of mega financial institutions on the energy crisis.”

According to him, these institutions have been reluctant to commit public funds into public enterprises run by government because governments are not known to be committed, efficient and profit-oriented managers of public enterprises.

The minister said the abject poverty level among Nigerians is unacceptable in a country richly blessed with abundant human and natural resources.

Wya said the president assumed the leadership of the power sector to underscore the priority the government attaches to the power infrastructure, adding “the President is depressed whenever a comparative report of power output of nations less endowed than Nigeria is presented to him.”

While allaying the fears of electricity workers over the possibility of rationalisation, the minister explained that the ongoing reforms in the sector were meant to encourage private public participation in order to meet the yearnings of Nigerians in the power sector.

Last year the sum of $5.3billion was withdrawn from the excess crude account to fix the power sector with no remarkable result. The Central Bank of Nigeria(CBN) has also announced a N500billion rescue package to fix the manufacturing sector including power.




For how long would the federal government continue to hold everyone down? If you want to fix the power problem give states authority to develop their power infrastructure for their own consumption. The federal government has failed in the power sector, period. Let states that want to develop develop and those that don't want to let them stay like that, this is getting silly.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by naso2(m): 12:27pm On Jun 23, 2010
some of us are just being overreactive here. First the minister was mainly trying to sell the privatisation program to the workers who presently seem to oppose it. I do not think any of us believe the current structure can both attract and sustain reasonable investment in the sector.

Secondly we need to confirm how real the $6billion annual requirement is by considering the what it would cost in other countries with similar power needs.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by Gbawe: 12:40pm On Jun 23, 2010
Sky Blue:

For how long would the federal government continue to hold everyone down? If you want to fix the power problem give states authority to develop their power infrastructure for their own consumption. The federal government has failed in the power sector, period. Let states that want to develop develop and those that don't want to let them stay like that, this is getting silly.

Indeed. Jonathan , perhaps because he has an election to contest, tried to garner support through hinting , even if in a vague manner, that he would somewhat deregulate the power sector by empowering States to generate and distribute their own power thus effectively meaning that Nigerian States will have the 'carte blanche' to develop their own comprehensive solutions.

Why , if not for deceptive double-speak , is the FG now incoherently talking about centralised funding when it can simply pass on the financial burden on to States and their financiers? Was it the nigerian Government sponsoring MTN's operational costs in Nigeria?

Abeg make jonathan commot jare . I am now , more than ever , convinced that the man is insincerely playing to the gallery with populist talk because if Jonathan had genuinely engaged some of the champions of deregulations (Uduaghan, Ameachi, Fashola et al) in sincere problem-solving dialogue he would realise that many States are ready to go it alone entirely !! Most Governors, and indeed most Nigerians, are sick and tired of enemies-of-progress impeding their development .  It is only a President with political will that can resolve the power logjam. What needs to be done is obvious but as long as we keep gaining leaders who are sponsored by those who wish to keep us down, even the simplest things will remain impossible.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by Gbawe: 1:24pm On Jun 23, 2010
na_so:

some of us are just being overreactive here.

I dont think so. I think it is obvious that the FG (specifically Jonathan) is prevaricating as usual , in its attempts to deceive Nigerians , with movement of the goal post during the match.

If Jonathan suggests that States will generate and distribute their own energy he surely cannot commit the FG to financing that policy shift when it would be far more efficient, prudent and expedient for States to seek their own PPP  finance in a deregulated market.

I think a good look at the write-up actually illustrates the deciet of the FG

According to him, these institutions have been reluctant to commit public funds into public enterprises run by government because governments are not known to be committed, efficient and profit-oriented managers of public enterprises.

If you know financiers will not commit funds to Government-run projects why are you still trying to lobby them for funds when you know they will not release the funds because they fear you are corrupt and are skeptical of your technocratic ability and competence? Next thing we will hear that the FG has approached the World bank for a power sector loan !!! if Jonathan is serious about resolving a  problem impeding the development of Nigeria why not step aside , remove government hand totally, and let those with the money do the job effectively plus maintain whatever solution is provided and claw back their investments with time as we are seeing in the telecom sector?

Jonathan , to me , appears to be following OBJ's NIPP scam albeit with a pseudo privatisation makeover. It seems the Jonathan government , similar to OBJ's , wan'ts to control aspects of financing, fund disbursement and contract allocation (all the 'tools' OBJ used effectively to 4.19 Nigeria with his bogus NIPP package) so that it can loot Nigeria again and spend billions (as OBJ did) with nothing tangible for Nigerians to enjoy.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by paddylo1(m): 1:35pm On Jun 23, 2010
[b]For how long will u Nigerians continue to do the same thing over again and expect a different result?

Why in the world would u want the GOVT to put money into Power?
How have they run NITEL,NIGERIAN AIRWAYS,RAILWAYS,AJAOKUTA,REFINERIES etc

This news is the best thing that can happen
Let the GOVT hands off power immediately. . they should not spend one more dime on it

Privatise the damn thing,sell those Power plants and let those that Know how to run things come and run them

Your GOVT budgets peanuts every yr and u expect power to improve
what is budgeted is stolen,because even if u spend it well,it cannot do what is necessary to be done on Transmission Infrastructure alone
Never mind building of new Power plants

Power is capital Intensive. .we are talking tens of billions of dollars here
The day NEPA will be as irrelevant as NITEL in Nigeria is the day u guys should be praying for
Not useless GOVT spending that leads to nowhere

why dont u guys go and complain that GOVT is not spending money on NITEL too. . nonsense[/b]
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by chidichris(m): 2:02pm On Jun 23, 2010
For how long will u Nigerians continue to do the same thing over again and expect a different result?

Why in the world would u want the GOVT to put money into Power?
How have they run NITEL,NIGERIAN AIRWAYS,RAILWAYS,AJAOKUTA,REFINERIES etc Huh

This news is the best thing that can happen
Let the GOVT hands off power immediately. . they should not spend one more dime on it

Privatise the damn thing,sell those Power plants and let those that Know how to run things come and run them

Your GOVT budgets peanuts every yr and u expect power to improve
what is budgeted is stolen,because even if u spend it well,it cannot do what is necessary to be done on Transmission Infrastructure alone
Never mind building of new Power plants

Power is capital Intensive. .we are talking tens of billions of dollars here
The day NEPA will be as irrelevant as NITEL in Nigeria is the day u guys should be praying for
Not useless GOVT spending that leads to nowhere

why dont u guys go and complain that GOVT is not spending money on NITEL too. . nonsense

@paddy lo,
u sound very very informed and wise. so on what do u think govt shld spend money? maybe on independent celebration? do u know the different between armenities and basic armenities? do u think the Fg shld also privatize our roads as we are about seeing in lagos - lekki axis in particular?
at the end of ur suggested privatization of all sectors, what wld u suggest for aso rock because there will be no need for a president, senators, govs and others?
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by paddylo1(m): 2:31pm On Jun 23, 2010
@paddy lo,
u sound very very informed and wise. so on what do u think govt shld spend money? maybe on independent celebration? do u know the different between armenities and basic armenities? do u think the Fg shld also privatize our roads as we are about seeing in lagos - lekki axis in particular?
at the end of your suggested privatization of all sectors, what wld u suggest for aso rock because there will be no need for a president, senators, govs and others?

[b]Govt should spend its scarce resources on poverty alleviation schemes and social spending

Thats why the UN says most countries Govt budgets should allocate 30% to health care
another 20% to education and so on.  .

Govt should spend on better housing for the very poor
Healthcare
Education
Reducing infant mortality
Reducing hunger.  .make sure all kids are in school,by giving them school lunches
and so on. . Thats what brazil does,and South Africa spends a huge part of its budget on such type of spending
That is poor/low income housing,Free Health care,Free Education and so on

However in  this same South Africa and Brazil Govt stays out of things like power
Because it can only lead to corruption and The money needed is huge and the knowhow is also complex,which Govt doesnt have

What does a GOVT appointee in ABUJA,Know about POWER supply in 2010?
When Bola ige claimed he will perform a miracle in POWER,what happened?

The problem is that u guys think there is money,but that is not how power works
u dont build a power plant by budgeting N10billion naira every yr for 5yrs(Like they are doing with the NIPP)

No.  .u BUILD a POWER plant,by getting your commited finances up front from a bank
and then do the FID(Final investment decision,after signing gas supply agreements and securing Transmission lines to evacuate the power u produce). . .IF there are delays in the ports u work round the clock to fix it
cause u know u are paying interest on your loan

In the case of GOVT,Turbines can rot in the PORTS,cause afterall its GOVT money who cares?
Next yr u will budget another N10billion abi?
Some power plants are built in locations with no way to transmit the power produced cause there are no transmission lines
Some are built with no pipelines to supply gas and so on. .

The question is why would u continue to insist on the same Incompetence i listed above?
and dont tell me that a honest minister will do different. .this is a lie because the whole chain is corrupt
The public sector power workers are corrupt too. . .If they dont sabotage u at production,they will do it at transmission,if not transmission,then they will get u at maintanance

So there lies your problem. . .and its not unique to Nigeria though
Its just that GOVTs worldwide cannot run any business successfully,because they are too slow to adapt

so instead of spending another N150billion this yr to give u Darkness. .
spend it where u can help to get towards achieving our MDG goals(Water,low income housing,free health,free education etc )
[/b]
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by MadMax1(f): 4:45pm On Jun 23, 2010
How does oil-less Ghana do it? There's constant electricity. The place is so different they might be on separate continents. And the revenue from electricity consumers nko, abi it's free? Why don't they privatise it, like some countries in Europe? Like the cell phone communication providers took over from NITEL, have multiple electricity providers take over from PHCN.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by hdwada: 5:42pm On Jun 23, 2010
How does oil-less Ghana do it? There's constant electricity. The place is so different they might be on separate continents. And the revenue from electricity consumers nko, abi it's free? Why don't they privatise it, like some countries in Europe? Like the cell phone communication providers took over from NITEL, have multiple electricity providers take over from PHCN.

We should send Jonathan there for a training course
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by Acidosis(m): 5:54pm On Jun 23, 2010
This Is What I Call "Fallacy of the IQ and Error due to insensitivity of proper thought". How could they (FG) be so stupid to draw this miserable conclusion.
IBORI's savings with our Senators' is enough for a year!
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by Nobody: 5:59pm On Jun 23, 2010
If FG doesnt have that kinda of money to fix the power problem, then they should turn to IBB. IBB's money in banks abroad can pay that bill for another 5 countries! IBB, if you know you love Nigeria, return your loots and use it to help FG give us steady power supply. At least that will go a long way! Your refinary in Saudi Arabia alone makes that money on a year! Dont come to Nigeria to tell us you want to rule if u cant help us with this money b4 d end of the year!
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by sayso: 6:00pm On Jun 23, 2010
Abacha loot,EFCC Recovered loot,where are they?FG na wah 4 una ooohh.
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by davidif: 6:12pm On Jun 23, 2010
[size=18pt]IF YOU DON'T HAVE THE MONEY, ISSUE BONDS OR USE TAXES. GEEZ, THE LEVEL OF FINANCIAL ILLITERACY ON THE PART OF OUR GOVT. IS INCREDIBLE.[/size]
Re: We Have No Money To Fix Power Sector – Jebba Power Chief by OvieE: 6:24pm On Jun 23, 2010
hdwada:

We should send Jonathan there for a training course


What kind of training course. Go there and spend money on property just like the useless NFF and senators who went to SA to look for property they can buy and they claimed to supporting the wingless eagles. Everything about Nigeria is[b] Fucccked period[/b]. The name Nigeria should be change.

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