By Robert Obioha
The recent drop in electricity generation from
4,959 to 2,662 megawatts in January this year is an indication that the power
sector challenge is seemingly intractable. It also shows that more work should
be done to revamp the power sector and give Nigerians stable power supply. The
2,662 megawatts currently being supplied pale into insignificance when compared
to our energy need of over 30,000 megawatts. We should emulate South Africa’s
power generation capacity. South Africa, with lesser population than Nigeria,
generates over 40,000 megawatts of electricity.
The development also shows that the power sector
reforms have not been able to meet the aspirations of Nigerians. In fact, the
power sector reforms so far have not significantly affected the generation and
supply of electricity. It points out that the privatization programme still
needs to be fine-tuned and the grey areas revisited.
Perhaps, the current power outage is the worst we
have had so far in the last couple of years. The absence of steady power supply
in the country is affecting manufacturing of goods and general business. Most
business concerns in the country depend on generators for their power needs.
This leads to high cost of production and invariably higher prices of finished
products.
Poor power supply has also exacerbated the level of
the nation’s underdevelopment. This situation is not helping cottage industries
and small and medium scale enterprises (SMEs) that depend on power for their
effective operations. Companies that depend on their own source of power supply
are likely to downsize when the business is not booming as in this period of
economic recession.
This can possibly explain why the nation’s
unemployment figure has, as at last count, risen to 13.3 percent while
inflation is 19 percent. The power outage is so bad that Eko and Ikeja Discos
in Lagos now receive about 200 and 206 megawatts of electricity respectively
instead of former supply of 1,500 and 2,000 megawatts. The current power
outage, according to the Minister of Power, Works and Housing, Babatunde
Fashola, is caused by liquidity problem, gas pipelines vandalism and inadequate
transmission infrastructure.