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Nigeria’s Power Sector and The Way Forward

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By Kamoru Yusuf

The decades of appalling performance of the Nigerian Electricity Supply Industry (NESI) have left many Nigerians wondering if NESI could ever be remedied seeing that the role of NESI in the state of Nigeria’s economy cannot be overemphasized. From the several households scattered across Nigeria, through the Small and Medium Enterprises to the large electricity consumer in the manufacturing sector, a turnaround of NESI will in no small measure positively impact the very fabric of Nigeria. This is because virtually all business need electricity to thrive.

It is worthy of note that despite the plethora of interventions from several quarters – National and even international, there has yet to yield much benefits as the sector is clearly enmeshed in avoidable chaos.

One would have expected that the advent of the Electric Power Sector Reform Act 2005 (ESPR) and the laudable innovations thereunder would usher in respite to Nigerians, but their hope has been dashed as the desired changes and impact have yet to materialize of the last 16 years.

It is however clear that beyond the mysticism that has characterized the possibility for an effective NESI, a cursory look at the Power Sector in other nations of the world reveals that there are huge learnings to glean from them and more importantly, that a vibrant and efficient NESI is possible if only ALL hands are on deck to achieve same.

It is pertinent to state at this juncture that whilst the value chain NESI comprises of Generation Companies (GenCos), Nigerian Bulk Trader (NBET), Transmission Company of Nigeria (TCN) and the Distribution Companies (DisCos), the DisCos are central to the effectiveness of the NESI being the bridge between the customers and the value chain.
Some of the initiatives that could change the forlorn trajectory about the NESI include:

1. Need for urgent revaluation of the capital base of the electricity Distribution Company (DisCos) Investors, and possible increase in the capital base:
Over the years, DisCos have continuously lamented over paucity of funds. This is however at variance with the commitment of the DisCos to invest in the DisCos infrastructures most of which were weak and obsolete, overdue for overhaul and upgrade. Despite the intervention by Government and International Organizations, the state of DisCos infrastructure remains a far-cry from the expected. There is therefore urgent need to revalue the capital base of DisCos and increase same to achieve meaningful investment in their network. This will largely address the sector liquidity issues. 2. Further unbundling of the current distribution sub-sector to 1 Investor per state: It has been canvased severally that the coverage areas for the DisCos are too large and would not make for effectiveness of the DisCos hence, the need to further unbundle the distribution sub-sector of the value chain comprised of 11 DisCos into 36 DisCos. This will ensure effectiveness of DisCos as well as monitoring. It is clear, that, most of the 11 DisCos are biting more than they could chew.
Development and Monitoring of Implementation of Performance Improvement Plan (PIP):
Seeing that DisCos are critical to the achievement of the desired improved electricity supply to Nigerians, they should be mandated to carry out infrastructural improvement by constructing a minimum of 5 kilometers of new lines (every month) complete with both TCN interface projects. TCN should also be required to required to periodically upgrade the equipment and infrastructure.

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DisCos should be mandated to set up and operate electric pole manufacturing companies within their franchise area to meet their pole requirement and support the PIP. This is practiced in China and other countries of the world, and this has enhanced DisCo’s performance in such climes.

Interestingly, it costs only $2,000,000.00 to set up a standard concrete pole company with capacity to produce a minimum of 2km worth poles daily. This will bridge the deficit in their pole needs and eliminate cases of substandard poles provided International Standards for pole manufacturing are complied with.
Operationalization of the Eligible Customer Regulation (ECR) to take care of the stranded 2000MW:
Whilst DisCos reject energy under the guise of contracted capacity, there is about 2000MW stranded energy wasted as result. This trend has continued and there seem to be no end in insight because, the operationalization of the ECR under which customers whose power requirement is over 2 Megawatts could purchase this stranded energy from willing GenCo suppliers have been frustrated by some stakeholders in the value chain as well as the Regulators.

It is almost four (4) years after the ECR came into effect yet, none of the several applications has been approved by NERC due to bottlenecks. There is need for the Regulators and more particularly NERC to urgently simplify the ECR and its processes to make it operational. One of the benefits of doing so is a robust and effective power sector. 5. Need For Regulatory and Policy Consistency and Clarity:

Regulatory and Policy inconsistency creates uncertainties in NESI which negatively impacts investors’ willingness to invest in NESI hence, the need for consistency. No Investor will invest where there are uncertainties. For instance, the Regulatory inconsistencies on the Eligible Customer Regulation 2017 and its regime, has had a devasting impact on investment opportunity in Nigeria’s Power Sector.
Effective Regulatory Monitoring of Stakeholders:
The need for effective Regulatory Monitoring of Stakeholders cannot be over-emphasized. Regulators should consistently review existing policies and concepts and improve on them periodically to eliminate policies that are not practicable and inefficient. The Regulators must ensure the prompt enforcement of these policies to achieve the desired change in NESI.

Speedy Enactment of effective Anti-Energy Theft and Vandalism Legislation:

The need for anti-energy theft legislation and vandalism legislations cannot be over-emphasized as this constitutes one of the huge loss elements for the NESI. Putting in place effective legislation and structures will ensure that offenders are dealt with and will help sanitize NESI as it would be deterrent to others. This will free up more energy to be utilized within NESI.

Dr. Yusuf Kamoru, Chairman of Basic Metal Fabricated Iron and Steel Products Manufacturers, a sectoral arm of the Manufacturers Association of Nigeria, (MAN) writes via sardauna2@gmail.com

Opinion

An Open Letter by Northern Youth Assembly (Majalisar Matasan Arewa) To Hon. Abdulmumini Jibrin, a member representing Kiru/Bebeji Federal Constituency in Kano State

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An Open Letter by Northern Youth Assembly (Majalisar Matasan Arewa) To Hon. Abdulmumini Jibrin, a member representing Kiru/Bebeji Federal Constituency in Kano State

Dear Hon.

YOU ARE A POLITICAL DISAPPOINTMENT TO THE NORTH AND YOUR EVIL CAMPAIGN AGAINST THE NORTHERN NIGERIAN INTEREST IN RESPECT OF THE MALEVOLENT AND ANTI – NORTH TAX REFORM BILL SHALL NOT SUCCEED

The Northern Youth Assembly (Majalisar Matasan Arewa), on behalf of the 19 Northern States leadership of the Assembly, wishes to express our unequivocal disappointment in you, following a recent TV interview you granted, and outrightly endorsed the evil plan to undermine the North, and further relegate the region economically and commercially. Your shameful act of publicly supporting the proposed tax reform bill put forth by the Tinubu administration, is the highest order of disrespect to your constituents, Kano State people and the entire Northern Nigeria

As representatives of the Northern Nigerian youth, we believe that this proposal, in its current form, will disproportionately affect the economic livelihoods and aspirations of our people, without taking into cognisance the current economic reality in the country

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Our disappointment is more on your vow to prioritize the passage of Tinubu’s evil tax reform bills in the National Assembly. While the proposed tax reform may be of so much interest to the people at the centre, however, your unwavering enthusiasm to champion the bill, that is clearly anti-North, exposes your misguided commitment to the course of protecting the interest of those you represent. It is very practical that the North faces a barrage of critical issues such as: acute shortage of electricity supply, rampant insecurity across the region, naked poverty, unemployment and a dismal state of infrastructure, to name just a few.

It is our belief that these are some of the challenges your constituents suffer from, and the purpose of your election was to fundamentally champion the course to address them through effective legislation and advocacy, rather than dedicating your legislative energy to serve some agenda that could further marginalize the Northern Nigerian people, the region where you come from. It would be wiser and more beneficial for you to prioritize your focus towards championing the course to alleviating the pressing socio-economic challenges ravaging the people in the North. This tax reform, in its current form, threatens to exacerbate the burdens of businesses and families in Northern Nigeria—businesses that are already struggling to survive due to unreliable power, inconsistent policy, Federal Government support and poor access to essential services.

Northern Nigerian requires only the leaders who could speak in the interest of the region, not hired lobbyists who would do everything to misguide and deceive their people for some cheap political gains.

We wish to inform you that, Northern Youth Assembly,n is highly disappointed for the likes of you, who would be engaged in supporting Tinubu’s evil plan of destroying the North.

We are committed to fight this course with our last drop of blood, expose the evil ones who are ready to auction the North, as we could no longer surrender our destiny into the hands of political merchants, betrayers and political hypocrites

The proposed Tinubu Tax Reform Bill, is evil and that was the reason why, the National Economic Advisory Council, rejected the bill in the first place, while people like you are trying to justify right, what is wrong in its totality

Signed.

Comrade Mohammed Hussaini Bauchi,
National Assistant publicity Secretary

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Opinion

APC Stalwart Urges Deputy Senate President to Leave Gwarzo Alone

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It has come to my notice of some sponsored hirelings under pseudo guise of “Renewed Hope Ambassadors Forum” have initiated a media assault against the person of the former Minister of State Housing and Urban Development, Abdullahi Tijjani Muhammad Gwarzo, demanding he stop criticising the President over his ministerial removal.

First off, a simple online check will reveal absolutely nothing substantial about them. This proves that it is a makeshift-sham group created by Deputy President of the Senate Barau Jibrin to sabotage the All Progressives Congress in Kano. This unregistered, unrecognized outfit has one purpose: to spread chaos and destruction, serving as Barau’s personal attack dog. No legitimate person or institution takes them seriously. Their legitimacy is a joke, their agenda is as clear as daylight and their true intentions are as transparent as glass.

Contrary to the groups claims, the former Minister hasn’t publicly criticized the President since his removal. It is never in his character as a politician to go down so low for any political gain or fame and this principle aligns with his established political demeanor, marked by a reluctance to engage in contentious debates or verbal sparring for political advantage.

The former Minister is a disciple and mentee of President Bola Ahmed Tinubu, he said in an interview with BBC Hausa that the President singlehandedly nominated him to serve in his cabinet and he therefore sees no fault when he relieved him of his appointment even though he has informed him of his reason to do so. He rather thanked the President for the opportunity to serve his country.

One of the reasons given was that Kano North is overloaded with appointees and there was the need to appoint someone from Kano Central but Gwarzo questioned the decision to appoint Ata instead of Nasiru Yusuf Gawuna who was the Gubernatorial candidate of the party in 2023.

And to be fair to him, Gwarzo was right in making that suggestion looking at their credentials and antecedents, Gawuna is politically more equipped than Ata. It is clear that Ata lost even in his ward, local government and senatorial district during the 2023 election; he worked wholeheartedly against the party for losing the primaries against Aminu Sulaiman Goro.

These were Gwarzo’s baseline arguments, so attacking him and accusing him criticising President Tinubu is nothing more than a well brewed lie for political opportunism. Gwarzo remains President Tinubu’s mentee and disciple and has not yet renounced him, so how could he ever criticise his mentor and benefactor?

To this moment, Gwarzo has consistently expressed his unwavering respect and admiration for the President, affirming that his loyalty will remain unshakeable, regardless of circumstances.

Even those who worked for his removal are aware that Gwarzo is the number one loyalist of President Bola Ahmed Tinubu followed by the APC National Chairman Abdullahi Ganduje.

It is unarguable that Gwarzo ranks among the top five loyalists of the President in entire Northern Nigeria, alongside notable figures such as Mallam Nuhu Ribadu, Ibrahim Masari, and Dr. Abdullahi Umar Ganduje.

Senator Barau Jibrin’s claim of loyalty to the President seems to be just lip service, as his track record suggests he’s a self-serving politician who only values relationships when they benefit him. Barau’s history reveals a pattern of using people for his own gain and discarding them when their usefulness expires.

The President should exercise caution in dealing with Senator Barau Jibrin, given his history of betraying those who helped him rise to power since 1999. Now, he’s attempting to leverage his office to deceive the President into believing he has complete control over Kano politics to make the President think he has more power than he actually does.

Barau cannot defeat AT Gwarzo in Gwarzo, he cannot do that to Murtala in Kabo, Abubakar Kabir Bichi in Bichi, Sani Bala in Tsanyawa and Ghary, Hamisu Chidari in Dambatta and Makoda and Tijjani Abdulkadir Jobe in Dawakin Tofa, Tofa and Rimin Gado, same thing goes to Bagwai and Shanono.

He hides under the umbrella of these individuals to win the election not because of his capacity but because of the platform and the aforementioned names.

People like Senator Barau are only loyal to you when you’re in power. The President should ask his predecessor Muhammadu Buhari about people like him.

Gwangwazo, a member of the All Progressives Congress writes from Kano Municipal

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Opinion

Ata’s Political Arrogance: Disconnected from Kano’s Realities

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Yusuf Abdullahi Atah,Minister of state housing and urban development

 

Abdullahi Yusuf Ata’s recent statement about his ability to deliver Kano State to the All Progressives Congress (APC) in 2027 reeks of political overconfidence and an astonishing lack of self-awareness. His claims, particularly about regaining APC’s stronghold in the state, deserve to be scrutinized for their glaring contradictions with his political history and current standing.

First, Ata’s tenure as Speaker of the Kano State House of Assembly was abruptly cut short by his impeachment, largely based on accusations that he lacked the capability to manage the affairs of the House. The motion to remove him was spearheaded by key political figures from his own party, including Labaran Abdul Madari and Abdullahi Chiromawa, suggesting that even within his political ranks, Ata was seen as ineffective. This was a glaring indication of his inability to lead, which raises immediate doubts about his supposed political strength and ability to effect meaningful change in Kano.

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His defeat in the 2023 general elections across multiple positions, including State Assembly, Kano Governorship, Senate, and even the presidential election, paints a picture of a politician whose influence is not only waning but practically nonexistent.

If Ata cannot secure a victory in his own local government of Fagge, a vital constituency in Kano, how can he realistically claim to have the political capital to reclaim the state for the APC? His defeat speaks volumes about his disconnect with the electorate, who have repeatedly rejected his leadership at multiple levels.

Ata’s assertion that Kano Central, the region he claims to represent, will swing back to APC under his leadership is equally questionable. While he boasts about the region’s substantial voter base, it is important to remind him that political success is not merely about numbers but about credibility and leadership. His track record offers little evidence of either.

The people of Kano have demonstrated their unwillingness to back his leadership in recent elections, and his inability to secure even his own ward suggests that his claim to revive APC’s fortunes is based more on delusion than reality.

Furthermore, Ata’s attempt to place himself as a key player in President Bola Tinubu’s Renewed Hope Agenda is puzzling, given that his previous stints in political leadership, including his role as Majority Leader and Special Adviser to the Governor, yielded no tangible results. His promises to complete ongoing housing projects and deliver on his ministerial duties sound more like empty rhetoric aimed at salvaging a reputation that is increasingly difficult to restore.

It is vital that Ata reconsiders his current trajectory. Rather than continuing to make baseless promises about political victories, he would be better served by focusing on his current ministerial responsibilities. He must acknowledge the fact that he has no real political power or influence to reclaim the APC mandate in Kano. His continued posturing is more likely to harm his standing and waste valuable political capital, which could otherwise be used in more productive endeavors.

To put it bluntly, Ata’s prideful statements do not align with his past performances, and his focus should be on serving the people through his ministerial role rather than indulging in delusions of grandeur about the next election cycle.

Garba Ubale Kankarofi is a political analyst and writes from Kano. He can be reached at +234 706 816 0279.

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