Showing posts with label Electricity Generation and Supply in Nigeria. Show all posts
Showing posts with label Electricity Generation and Supply in Nigeria. Show all posts

Monday, December 21, 2015

2015 – A Year Of Power Reform In Nigeria

With the change of government from Peoples Democratic Party (PDP) to All Progressives Congress (APC) and the attendant hand over of Aso Rock to President Muhammadu Buhari, 2015 indeed marked a turning point in the history of Nigeria’s power sector. Idowu Oyebanjo writes



















Buhari and Jonathan 
On May 29 2015, the PDP led government of former president Goodluck Jonathan in a show of unprecedented statesmanship in the history of Nigeria, handed over power to an APC government led by Former Military Head of State, General Muhammad Buhari (GMB). A key slogan in the months leading to this change of government is the "change" mantra. Although it was a change in political power, it equally meant a change for the electrical power system in Nigeria. From the start, the fear of Buhari gripped the agents of the "demons" holding back the country from seeing light. Suddenly, the four refineries of NNPC which have been undergoing turn around maintenance (TAM) for the last 40 years unstopped began to function, providing gas for the starved thermal power plants around the country. For the first time in the distant many years, Nigerians who are connected to the power grid felt the impact of electricity as power generation reached an all time high of 4.68GW. This was sustained for a time. The foot soldiers of the enemies then started a campaign of idiocy that the changes were due to the works done by the previous government. Nigerians are no fools and amongst the most intelligent people in the world, Nigerians rank atop.

Tuesday, October 20, 2015

213 Billion Naira Bailout For Power Sector – Foolishness At Large!

By Idowu Oyebanjo 
Earlier in the year, the Nigerian Power Sector witnessed an unprecedented development wherein Government decided to give a whopping sum of 213 billion Naira as "bailout" to Privatised entities who now own and operate the Nigerian Power utilities in what was seen by many as another means of sharing the wealth of the nation by a few. Last week, after disbursing up to 58 million Naira, the Central Bank of Nigeria (CBN) governor suspended further disbursement to beneficiaries. Some of the pertinent questions include: What becomes of the already disbursed funds? Will disbursed funds still be recouped as intended via the 10 percent interest rate and repayment spread? How will this be tracked?














*Buhari 
The lack of coordination and policy somersault from the Nigerian Power Sector reforms leaves no one in doubt that the lack of planning and deployment of square pegs in round holes in the execution of strategies contribute greatly to the problems of the electricity supply industry in Nigeria. Why do we not have the right kind of people in the right places so that thorough analysis and evaluations are carried out before jumping to execute a strategy only to realise half way that some issues needed to have been looked after before embarking on a journey that technocrats in power sector have warned us against? The answer lies in not involving power system engineers in the decision process plus the lack of knowledge of power systems in Nigeria. The most disturbing thing about the 213 billion Naira been shared is that it came at a time when quality of power supply is low or better put non-existent even as consumers face the ludicrous decision by NERC to start paying higher tariffs for electricity unused. Insult upon Injury!!! Why do we have many reversals of policies in the Nigerian Electricity Supply Industry especially when this does no more than infuse lack of confidence in investors who are the custodian of the much needed investment in the sector?

The Nigerian Electricity Regulatory Commission (NERC) in the very early days ruled out funding of Electricity Distribution Companies (DISCOs) beyond 2012. This was even against calls from Government to continue to fund the companies. Sound as the reasons for calls for continued funding may appear, let us ask ourselves what the rational and motives behind such call is. If you as an individual offer to sell your car as “scrap” – so cheap, will you want to maintain the car or fund the additional repair works required to put it right? In the first instance, if you are prepared to do just that, you may as well keep it and fix the car for keep.
The buyers of the Discos have definitely prepared to milk Nigerians dry. Their intention is to continue to eat fat from Nigeria’s oil wealth using a different disguise. 

The interesting thing is that they have for many years been eating fat from this same source. The main weapon to check mate such would have been a proper technical and commercial evaluation of interested bidders at the appropriate stage of the selection process. Technical and Commercial evaluation criteria should have been set ab-initio in such a manner that will preclude this barbaric idea of funding privatised entities. It is up to the owners of the privatised utilities to ensure they meet their obligations as required by law. I have in the past expressed concern about the quality of the companies that won the different bids as most of them have not been known to have demonstrable experience in this highly technical field. 

Wednesday, August 12, 2015

Meeting The Challenge Of Human Capital Development In The New Nigerian Power Industry (2)


By Idowu Oyebanjo

The most worrisome thing is that those who are taking the lead in this matter do not understand how Electric Current flows. If you make use of Knowledgeable Power System Engineers of Nigerian descent, who work in the Electricity Industries in the developed economies, most likely you will achieve better results in less than four years. Ofcourse, these will work with qualified Consultants who know their onions but because they already have a foothold, they are more likely to get better value for money for Nigeria. The truth is that not all foreign Consultants will want electricity in Nigeria because this means Nigerians will leave their shores and return home, Nigerians will go to Universities in Nigeria, world economics will change and the propensity for Investment will shift to Nigeria to mention a few benefits that will result in electrifying the nation in darkness.

(pix:Guardian)
The way to go about this is to set up a summit to attract these Power Systems Engineers of Nigerian descent and bring them together to brainstorm on these ideas and more in support of this reform. They are everywhere and Government machineries could be used to track them down. For example, the Association of Nigerians in Diaspora was formed in the year 2000 by former president Obasanjo towards this end and have no doubt being functioning well since then. This could be one means of achieving this noble objective. The latest approach by SHELL Petroleum Development Company of Nigeria (SPDC), SHELL Nigeria Exploration and Production Company (SNEPCO), Petroleum Technology Association of Nigeria (PETAN), the UK chapter of Nigerian in Diaspora Organization (NIDO) and the department for Trade and Investment in the UK in establishing a knowledge sharing framework and portal to boost Nigerian Content development and employment in the Oil and Gas Industry is required in the Power Sector. It need not have waited this long!