Nigeria: A Nation In Darkness

 By Ebun-Olu Adegboruwa 

For the umpteenth time, the epileptic national grid collapsed over the weekend again, resulting in blackout in most parts of the country. A terse statement from the Ministry of Power attributed the collapse to “the partial shutdown of the Oben gas plant to address the repair of critical gas processing equipment. The incident unfortunately occurred at a time when other power plants on other gas sources are undergoing planned maintenance and capacity testing.” 

You cannot fault this empty logic, can you? This has been the story of power supply in Nigeria and it is unlikely that things will change. In times past, we used to look forward to the rainy season because it births a temporary moment of stability in electricity generation. It is possible that this year, some supernatural forces have blocked the flow of water in all the dams, especially now that diesel sells for about N800 per litre.

Power generation is the main issue with regard to the socio-economic development of any nation. In Nigeria however, successive governments have deployed it for political gains, knowing the importance that Nigerians attach to it. Thus in 2015 when it was canvassing for votes from the electorate, the All Progressives Congress stated as follows:

Breaking The Electricity Supply Jinx

By Sunny Ikhioya

What is it about electricity supply in Nigeria? Why is it so difficult to simplify and bring under manageable indices, when other climes have taken it for granted and moved on to greater things?

We have had our hopes raised to the zenith and brought down to mother earth during the Obasanjo era, with Bola Ige’s promise of six months delivery. We have also seen our common patrimony shared and handed over to an oligarchic few in the name of privatisation, hoping that the situation will improve. Yet, no luck. 

Is Africa Ready For Nuclear Energy?

By Laura Gil

Years back, nuclear energy was a fancy option limited to the industrialized world. In due course, nuclear could be an energy source for much of Africa, where only South Africa currently has a nuclear power plant.Governments across the continent are devising development policies to become middle-income countries in the medium term. Socioeconomic growth comes with a rise in energy demand—and a need for a reliable and sustainable energy supply.

For industrializing countries in need of a clean, reliable and cost-effective source of energy, nuclear is an attractive option.

“Africa is hungry for energy, and nuclear power could be part of the answer for an increasing number of countries,” says Mikhail Chudakov, deputy director general and head of the Department of Nuclear Energy at the International Atomic Energy Agency (IAEA), an international organisation that promotes the peaceful use of nuclear technology.

Nigeria: The March Of Progress And The March Of Misery

By Dan Agbese

Klump. Klump. Klump. It is the inexorable march of human progress. Nations march; individuals march. Kings march and commoners march. Rulers march and the ruled march.

*Benin-Auchi-Okene Federal Highway

The grand purpose of our relentless march is to move away from the undesirable to the desirable; from a life of hard scrabble in a village, for instance, to a modern life of luxury in towns and cities, as in Lekki in Lagos, Asokoro in Abuja and other enclaves of the wealthy and the well-heeled. Nations march to move from being under-developed to developing and thence to developed nations. The developed nations march because they want to develop even more and uneven the score.

Nigeria: More Deaths Due To Electrocution Unless...

By Idowu Oyebanjo

Electrocution is basically death caused by an electric shock. While this is not a favoured topic, it is important to expose the facts about the Nigerian Power System and the high potential that it possesses to cause more deaths due to electrocution in the short to medium term if things are done improperly as they are now.

One of the anti-climax of not having stable electricity for over 50 years now in Nigeria is the fact that one did not hear so much of deaths due to electric shock from electrical appliances or devices. This is mainly because there was no “light”. With the recent increase in availability of gas to power stations, and the attendant availability of electricity supply, the weakness of the power system will come to the fore and more electrical safety accidents are bound to occur. Unfortunately, because electricity is a good servant but a bad master, the fatal results of not following electrical principles in the design, operation, maintenance and control of the power system is death by electrocution! In the last few weeks alone, we have had the death of a staff of one of the electricity companies while he was carrying out his day to day activities on a power line. But more recently, the case of Oluchi Anekwe, a 3rd year student at the University of Lagos has reinforced the calls by experts for a holistic review of the operation of the Nigerian Power System.

Nigeria: Eligible Customer Declaration In NESI – SWOT Analysis

By Idowu Oyebanjo

The declaration of eligible customers prior to the prevalence of conditions precedence as stated in the contract between FG and DisCos became inevitable because the DisCos have not been transparent with remittances of monies collected from consumers thereby worsening the illiquidity crisis in the electricity market within the Nigerian Electricity Supply Industry (NESI). In addition, DisCos have failed to invest in customer metering and the reduction of aggregate technical, commercial and collection losses as required by their distribution licences. Federal Government (FG) has therefore invoked the eligibility customer clause according to section 27 of the Electric Power Sector Reform Act (EPSRA) 2005 under Ministerial directives.

*Idowu Oyebanjo

One can easily understand the FG trying to preserve the health of the sector however, the initial reaction of the DisCos may be to cry foul. This may not be necessary as some of the transactions will still go through DisCos and TCN. It is therefore in order to evaluate the Strength, Weaknesses, Opportunities and Threats in FG’s decision to allow GenCos to sell electricity “directly” to four categories of customers with average monthly consumption of 2MW and connected to the medium and high voltage segments of the electricity network. This in my opinion should be described as customers with minimum Authorised Supply Capacity (ASC) of 2MVA. This is equivalent to a consumption of 100 Amperes (unit of current) at 11kV

*Strength

By declaring the eligible customers, Nigeria’s privatisation addresses the myth around subjecting a “natural monopoly” to economic regulation rather than competition in a privatised electricity supply industry by deepening competition in the electricity market of natural monopolies. Such competition or liberalisation will force the existing 11 DisCos to improve their operational efficiency and customer service. This will become a reference wherever matters of electricity regulation are being discussed in the world of power systems.

The advent of Distributed Generation and bringing of generation close to consumers will help to improve the liquidity of the electricity market and achieve the desired reduction in network losses more quickly if the scheme is properly implemented.

Nigeria: FG’s Planned Demand For Transparency From DISCOS

By Idowu Oyebanjo

The Federal Government has announced plans to escrow and beam its searchlight into the revenue accounts of the operations of the DisCos due to poor monthly remittances. Although DisCos have condemned the move, this is a good step in the right direction. To address the problems of NESI, a holistic view of every aspect of the multi-faceted problems plaguing it is required with a view to solving them in a coordinated manner. One of the major problems in the Nigerian Electricity Supply Industry (NESI) today is the potential for illiquidity. In simple terms, this arises when DisCos declare, whether truthfully or otherwise, that they have not collected enough money from consumers of electricity and so are unable to make full payments to the bulk electricity trader, NBET, for electricity received. 

This has the potential to always create illiquidity in NESI because their remittances should have been used to pay all key stake holders in the industry including but not limited to GenCos, TCN, Gas providers, market operator, NERC, NBET etc. The solutions to address this anomaly include a massive investment in customer metering, reduction in network losses, preventing electricity theft and collusion of staff of electricity companies with consumers to defraud the industry, discontinuation of estimated billing, and ensuring that revenues collected by DisCos in behalf of NESI is transparent to all key stakeholders, and not least the Federal Government which still owns 40% of DisCos. The government has chosen to implement the last of the afore-mentioned solutions but the DisCos have frowned at the move. Thus a critical review of the position of DisCos is in order.

Nigeria: On FG’s Planned Demand For Transparency From Discos

By Idowu Oyebanjo

The Federal Government has announced plans to escrow and beam its searchlight into the revenue accounts of the operations of the DisCos due to poor monthly remittances. Although DisCos have condemned the move, this is a good step in the right direction. To address the problems of NESI, a holistic view of every aspect of the multi-faceted problems plaguing it is required with a view to solving them in a coordinated manner. 

One of the major problems in the Nigerian Electricity Supply Industry (NESI) today is the potential for illiquidity. In simple terms, this arises when DisCos declare, whether truthfully or otherwise, that they have not collected enough money from consumers of electricity and so are unable to make full payments to the bulk electricity trader, NBET, for electricity received.

This has the potential to always create illiquidity in NESI because their remittances should have been used to pay all key stake holders in the industry including but not limited to GenCos, TCN, Gas providers, market operator, NERC, NBET etc. The solutions to address this anomaly include a massive investment in customer metering, reduction in network losses, preventing electricity theft and collusion of staff of electricity companies with consumers to defraud the industry, discontinuation of estimated billing, and ensuring that revenues collected by DisCos in behalf of NESI is transparent to all key stakeholders, and not least the Federal Government which still owns 40% of DisCos. The government has chosen to implement the last of the afore-mentioned solutions but the DisCos have frowned at the move. Thus a critical review of the position of DisCos is in order.

Fashola: How Not To Work

By Emeka Nnaka

It was like a shuttle in a projectile – let’s call it the BRF projectile. Of course, BRF being Babatunde Raji Fashola, the three-in-one federal minister in charge of Power, Works and Housing. He has been on a blitzing visit of major road projects across the country. Starting a few weeks back with on-going roads in the southeast zone of Nigeria, his last run was across seven states of the Niger Delta – in three days.

*Fashola in Benue State (pix: Guardian)

As one of the reporters in the shuttle, my verdict is: how not to work. Imagine starting a trip by road from Calabar to Uyo, then Aba to Yenegoa, Port Harcourt to Sapele and then Benin City – in just three days!

On paper, it may look easy and straight-forward, but out there on the poorly kept and dangerous Nigerian roads, it surely is an excruciating way to carry out a task. Of course, there are modern digital mapping devices that can locate projects even in the most remote outposts and highlight them with real life high definition. But understandably, such facilities are not available to the ministry right now but that must be the way forward. 

The first call of the inspection was the over 200 kilometres Calabar – Akampa – Ikom – Ogoja – Ugep – Katsina-Ala highway. A long-winding, seemingly interminable and indeed treacherous road. After travelling for about two-hours of twisting and turning and side-tracking endless streaming of heavy-duty trucks, it turned out that one of them had upended ahead before the project site. BRF had to make a U-turn, missing the first target.

This road which connects about four states and leads up to Makurdi in Benue State is as strategic as highways go. It is a single-carriage road, which is bad enough; but it is dilapidated and derelict in many sections. When the rains come, according to Cross Rivers State deputy governor, many sections are flooded impassable.

The contractor, Messrs Sermatech that had abandoned site for over two years for lack of payment is back at work. He was mandated to commence remediation work quickly before the rains. Important too is that hundreds of people are back to work once again: goods and service will move and zonal economy will flourish.

From the Akwa Ibom axis, the Ikot-Ekpene-Aba Road has suffered total collapse at Umuakpo. The Minister had to do a detour through bush paths and remote village tracks to re-enter the highway. This road that connects two very important towns of Ikot-Ekpene in Akwa Ibom State and Aba in Abia State was also awarded but unfunded. The contractor abandoned site. They are back now.

On the Aba-Port Harcourt section of the now notorious Enugu-Port Harcourt highway, BRF and his team did on foot, a very long stretch of the project under-going massive renewal and expansion on foot. It has numerous on-site workers and as we learnt, is generating hundreds of auxiliary jobs in material supplies, food and drinks vending.

Overcoming The Power Sector Challenge

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.

Dare To Dream And There Will Be Light

By Belije Madu

I had a dream. In my dream, Nigeria had uninterrupted electricity supply. Yes, Nigerian cities had uninterrupted and improved electricity supply. In my dream, the Nigerian electricity supply industry was fully functional, vibrant and employed thousands of young Nigerians. Electricity industry workers were like oil industry workers: well-paid and proud to be involved in the growth of their industry and country. There was constant electricity supply, during the day and at night. Remotely monitored prepaid meters were installed in almost all houses. Even houses that did not have pre-paid meters had some sort of collective pre-paid metering. There were only minor issues of outstanding or owed payment, as all metres were pre-paid and consumers had many options of buying electricity.

(pix: PR Newswire)

Additionally, different types of electricity packages were available for sale by the Distribution Companies. Depending on the type of electrical appliances one had, different quantities of electricity could be bought for varying periods of time. So, people generally bought and used electricity, based on funds available.

The local Electricity Distribution Company offices had evolved from being dusty and ill-equipped and staffed with ill-tempered persons, to customer care centres, similar to the customer care centres found outside Nigeria. Complaints from electricity consumers were quickly resolved, with respect. Illegal connections and illegal re-connections were things of the past, since the remote electricity monitoring systems, deployed by Distribution Companies detected illegal connections in minutes and since all electricity customers had been geo-spatially mapped by Distribution Companies and their premises could be traced electronically within minutes. Electricity outages were announced days ahead and were limited to a maximum of one hour per outage.

Generators, the previous best friend of every Nigerian home, including the famous I-better-pass-my-neighbour variety, could no longer be found and had become so rare, that school children had to visit facilities, which had emergency power supply, to see what a generator looked like; since, the only premises that bothered to buy generators were premises that could not operate without an emergency electricity supply back-up. Initially, when the price of electricity was increased, everyone complained, but the electricity prices were cheaper than the cost of running generators, so everyone adjusted and moved on. However, with the passage of time, electricity prices started falling. Things were now at a stage, when people went to work, only to come back home to notice that their pre-paid meters had been installed, with information on how to recharge the pre-paid meter from the nearest Distribution Company Customer Care Centre.

Where Are The Various Power Probe Report?

By Phillip Agbese

We are a nation of people that easily forget. We may, however, not be a nation that easily forgive. If it seems we forgive grievous sins of past, serving and future public office holders it is down to the collective amnesia that allows those who serially raped the country to get away with their crimes. Oftentimes we end up rewarding such persons with greater responsibilities because we simply cannot recall the enormity of their transgressions against the rest of us. 

We forget so we endure darkness when the power sectors has gulped billions of dollars without results.

We bemoan the high cost of lighting our homes as well as keep gadgets and equipment running irrespective of whether we are on post paid metering, pre-paid extortion or estimated robbery. But we forget that we are now being billed for the overpriced investment in electricity infrastructure, including the inflated value for components that were never bought. 

Only recently the Pharaoh of Benin Electricity Distribution Company, Mrs Olufunke Osibodu told Nigerians with glee that we have no right to expect stable electricity for another five years. We have forgotten why but we easily ignored and even immediately forgave the spewing of such poison. Afterall, this was a self styled undertaker of a commercial bank talking so we may not immediately become alarmed that Osibodu has a mandate to finally kill off a sector that years of theft has not seen off. 

The venue of Osibodu's dark prophecy is what should trigger the alarm bells for us. She spoke at the 11th Annual Founder’s Day event of the American University of Nigeria in Yola, which happens to be one of the many investments of a former Vice President, Alhaji Atiku Abukakar. He happens to have been the one that oversaw the privatization exercise, which had rehabilitation of electricity infrastructure before their sale as a mantra that played so continuously that it sounded worse than a broken record. 

What happened under Atiku Abubakar's watch set the tone for whatever brigandage was to follow under subsequent administrations. This of course is not counting any other shady dealings that were explained away as former President Olusegun Obasanjo being heavy handed on his over ambitious deputy. 

Truth About Power Supply

By Adisa Gbadamosi

 In   terms   of   the cause   of poor   electricity   supply ravaging   the nation   presently a blunt statement from the  the office of the Minister   of Power, Works   and Housing , Mr.   Raji   Fashola, provided an answer.   The statement   which was issued by one of his aides stated that it was immoral to expect   the Federal   government to   blame electricity   distribution   companies   called Discos   for the poor   electricity   supply   in the nation.

The Power   Minister  was responding   proactively   to the news   that   the House   of   Representatives had   invited   him and stakeholders in the electricity   industry for  a meeting to   explain the   cause   of   power   failure   in  the country. The   press   statement   was   therefore   meant   to   apprise   the legislators before   he  showed   up    in   the   House   for   grilling on   the subject . In   effect   the Minister   killed   the proverbial   two   birds   with   one stone. He   answered   the   question of the legislators   from   afar   as it were.   He   also   allayed   their   fears      also   at   a  safe   distance   on the   mistaken   notion   that   the Discos   were the culprit of the poor power supply  experienced  in the country .

Let   me state   clearly   as a keen   observer   of the   power   sector and its development that the pronouncements   and statement   of   the   Minister is candid,   informed   and   most   patriotic.

In  particular,   I urge   our law   makers   to   emulate these   virtues   even   as they grandstand to nail   perceived   culprits   for   the poor   supply   even   though      the cause   is well   known   to   all   Nigerians except   perhaps   our   legislators   and   trade union   leaders . The   Minister’s   statement   pointed out some facts .The   first   was   that pipeline vandalisation had   disrupted   and decreased   electricity   supply   massively   nation   wide   and power   generation , and transmission      had   suffered massively   and such   distribution   had   been   scanty   all over the nation . 

One Year Of ‘Change’: Buhari’s Top Sevens Failings So Far

By Saheed Animashaun

For my criticism to be fair let me cut Baba some slack. This is perhaps the worst possible time to be Nigeria’s President. Nigeria is an oil economy. As a mono-economy therefore, our economy is in normal circumstances bound to move in the direction of oil income. The nation’s income from crude oil sales is at an all time low. The demand for the dollar at the moment far outweighs the supply due to i) Fall in the proceeds from sales of crude which is our primary source of forex, ii) Our non-oil exports being quite too insignificant to fetch reasonable amount of forex iii) the fact that we import majority of the oil we consume thereby having to part with our scarce dollar reserves.

*Buhari 

Also, change is a gradual process. One year is too small to rate an administration that took over from a party that had milked Nigeria dry for a good part of 16 years! Kwarapshun is our ONLY hindrance to development and Baba is ardently tackling it!

Enough of sounding like one of this administration’s many spokespersons! Enough of these excuses!
This administration don fall my hand in many areas. Below is a countdown from seven to one of the most disappointing aspects of the Buhari administration in my opinion!

CAVEAT: Whatever has happened after Buhari got elected doesn’t negate the fact that there was only one right choice between Buhari and GEJ. Nigeria was nose-diving into a seemingly bottomless chasm as a result of the ineptitude of the previous governments. May be with that government still in power, Nigeria would have been auctioned to China by now! Recent revelations have shown that it was that bad! The looting was unprecedented as it has been for several years though.

7. Many pending appointments –
The defence line that it takes time to find the right people is balderdash! You have been trying to be president for more than ten years! Until recently, many appointees of the previous government that were supposedly inept were still running the show in various Ministries, Departments, and Agencies of the Federal government! Till now, many appointments have still not been made. This has definitely affected administrative duties because these individuals already know they would definitely be replaced. They are only not sure of when!

6. The nefarious activities of “Fulani Herdsmen”
While I agree that there are some narratives to this imbroglio that are unknown to many and hardly publicized by the press, the seemingly innocuous posture of the C-in-C has been embarrassing. This dangerous phenomenon has the potential to deteriorate into a huge scale war if not nipped in the bud. I still find it hard to fathom out the reason little to no mention of it was made in the long democracy day speech of the President! This is a disaster waiting to happen that needs to be decisively tackled on a huge scale.

Electricity Crisis And The Illusion Of ‘Body Language’

By Ugochukuwu Ejinkeonye                                                                                
By Wednesday, April 1, 2015 when Nigeria’s Independent National Electoral Commission (INEC) announced General Muhammadu Buhari of the All Progressives Congress (APC) the winner of the March 2015 presidential elections, the rainy season was already here with us. And as all keen and informed observers of Nigeria’s power sector were already fully aware, at that particular season each year, we usually witnessed some improvement in electricity supply due to the increase in the water level usually witnessed at our dams; and 2015 was certainly not going to be an exception.

 

*President Buhari and Lai Mohammed

While the APC and its supporters were all over the place immersed in boundless revelling, chest-beatings and other self-congratulatory gestures, and asking anyone whose ear they were able to attract to await the wonders and miracles which the APC had so freely and loudly promised during the elections now that their “Wonder Man” has won the election, I visited a shop near my office. And there I saw a barely literate young man who was so happy with himself as he confidently told the few people who had some time to spare for his poorly coordinated lectures about what he perceived as Buhari’s pre-inauguration accomplishments:

“You see what I have been saying? The man has not even been sworn in and we are already enjoying light [electricity supply] every day! What will happen then when he is sworn in? Just wait and see! Once he enters there, you will see how everything will change!”

His cocksureness was amazing. He spoke pidgin English, and so what I have attempted here is mere paraphrase of his happy outbursts.

Now, one could easily ignore this clear advertisement of ignorance, but after listening to that fellow that bright afternoon, and thought about the matter later, I begun to have this fear lurking somewhere in me that the APC, given its antecedents and distinguishing character, might soon start reechoing this fellow.  Anyone who closely observed the party during the campaigns and elections would readily recall that, somehow, it does not easily recoil from saying just anything that can help it win a few more ears no matter how easily such claims would simply evaporate in the face of reality.

And so, I had to quickly write an article entitled, “Electricity: Can Buhari Break The Jinx?” in which I attempted an analysis of why, in my view, former President Goodluck Jonathan could not achieve an impressive record in the power sector and urged Buhari and his people to hasten to do the right things to achieve a name for themselves since they had unduly raised the people’s expectations during the campaigns. Then I gave them the timely counsel which is contained in the following extract:

“Now, it is a known fact that during each rainy season, there is usually some improvement in electricity supply as currently being witnessed by Nigerians. But instead of deploying solid effort to increase the amount of electricity generation and distribution in the country, the government may naively choose to sit still and start announcing this development as one of its ‘great achievements.’ That would amount to repeating the folly of previous administrations which had also done that forgetting that the rains would soon go away and they would run out of lies trying to explain away the biting reality that would dawn with the sudden return of darkness.”