[size=14pt]Government empowers local councils to set up power plants [/size]
By Elizabeth Archibong
September 29, 2010 03:11AM

The federal government took another step in its efforts to reform the power sector, by empowering states and local councils to go into power generation as a way of improving electricity supply in the country.

The decision was taken at the 27th monthly session of the National Executive Council meeting, which comprises the 36 states governors, the governor of the Central Bank of Nigeria, ministers of National Planning Commission and Justice and chaired by Vice President Namadi Sambo.

Niger state governor, Babangida Aliyu, who briefed journalists at the end of the meeting alongside Gbenga Daniel of Ogun state and the Minister of National Planning, Shamusideen Usman said the council meeting looked at various issues and decided that by the time the power plants becomes operational by 2012, there will be an additional 4000megawatts (mw) to the national supply.

"This government if we continue the way we started, we should be able to satisfy the yearnings of Nigerians," he said. "So, I believe if we work together the way we are going, we should be able to solve this problem and I want us to resolve as Nigerians that after these 50 years, all the mistakes that we have done should not be repeated again. Like a contract given without studying and knowing what it is, we must stop that and from now onwards whatever has been done so that we would be able to trace who has made what mistake rather than collective mistakes." He also noted that in the next four months, about 700mw would have been added to the national grid as the Mambilla and the Zungeru hydro 1 are expected to come on-stream.

The council is "encouraging states and local governments where they can to generate, say, five-ten megawatts, to also go ahead,.t was agreed," the Niger governor said.

Mr Aliyu also told pressmen that the council also appealed to the governors to resolve a number of issues that would facilitate the completion of the projects, especially in the area of security.

"In some of the sites, there are challenges to security, there are few issues which are being resolved, like right of way and other issues where the state governors were also appealed to come in," he said.

Working on railways

Mr Aliyu said the minister of finance has been asked to come out with detailed financial position of the NIPP projects as well as the ownership of the projects.

This, the governor, said "is to help address the long term issue of management of these projects. When they are completed, you know they are not normal Power Holding Company of Nigeria projects, so who is going to manage them? And the focus is to essentially to get good private sector investors to manage these things properly. The government has put in arrangements to have the privatization or contracts or whatever, so that these issues are addressed at the beginning before the projects come on board".

Mr Usman who also said the council made an appeal to the governors to assist on a number of issues that would facilitate the completion of the projects.

The Ogun state governor said NEC discussed the issue of rail transport, which he said is being aggressively addressed.

"We have been briefed also on the railway. The issue of a total transportation system is now being revisited, particularly the railway system and the East-West, North-South line, is now being aggressively addressed and a lot of progress is being reported in this particular area," he said. "The Lagos-Kano has been reconsidered and it is now going to happen. The East-West lone also, which is the Lagos-Calabar axis, is also high on the agenda." The governor further added that the rehabilitation of the existing lines is currently going on.

http://234next.com/csp/cms/sites/Next/News/Metro/Politics/5624497-146/government_empowers_local_councils_to_set.csp

True federalism with each little footstep.

I like the whole concept of giving states and LG's the right to generate electricity, but the framework needs further guidelines.
For instance, if a state (or LG) decides to go nuclear, what happens?

On the whole, as I said earlier, this is the beginning of true federalism creeping on us through necessity.
It will gradually creep into other areas like state police, state fire services and finally end with state autonomy and finally put an end to the monthly Abuja handouts to states. Go GEJ!

Beaf:

I like the whole concept of giving states and LG's the right to generate electricity, but the framework needs further guidelines.
For instance, if a state (or LG) decides to go nuclear, what happens?

On the whole, as I said earlier, this is the beginning of true federalism creeping on us through necessity.
It will gradually creep into other areas like state police, state fire services and finally end with state autonomy and finally put an end to the monthly Abuja handouts to states. Go GEJ!

Nigeria should stay away from nuclear energy period.

Sounds like a good idea for States, but [b]LG[/b]s too?

My LG struggle to fix 'gutters' properly, & we expect them to build functionning power plants? Laughable! I sincerely hope they don't increase funds allocation to LGs cos of this initiatiative. Are u aware that LGs are probably the least accountable of the tiers of govt? Massive corruption go on there.

This will make more sense if states and LGs are no longer involed in sharing allocation but be mandated to generate funds and run their area.

Our leaders know where our problems lie but they are refusing to take the bull by the horn,they rather choose to take the bull by the tail.

Time will come the bull will turn and devour the same tamer holding it by the tail!

What we need is true federalism finish.

If Nigeria should go back to the days of REGIONS, I am sure the competition would have fiercer and developmental growth rate highly increased.

However since we have decided to go by way of Federal, States and LGs, we need to re-organise the revenue allocation.

1. The Central (Federal) Allocation should be reduced to 30% and should be more focussed on fiscal policies.

2. State Should receive allocation of 25% of the income

3. Local Governments where the masses are situated should now Earn 55%.

This way, the focus and concentration of national CAKE will leave Abuja and the respective counties/LGs will now have manage their areas, development will pick from the gorund. ie. the local areas.

I wont need to be living in Ikeja but be working in VI or Abuja because the whole of my area is so developed as to be able to give me a job/career within it.

I believe that since these LGs are the closest to the inhabitants, they will be better able to solve our problems, like ROADS, Electricity, Jobs etc

Currently, local government councils are just glorified area offices of the state government.

The local governments are the closest to the Masses and empowering them with funds will ensure they are able to execute project in their constitutiencies without recourse to the state or federal.

Again do not let us forget that we are first from the local govt. before we are from a state and so on, Let the council be empowered to do their own projects.

This NIPP project news is just like giving them crumbs from the loaf!