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Opinion

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.

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

Exposing the fraud in NASS budget-Jaafar Jaafar

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By Jaafar Jaafar

In an unprecedented budget fraud, the National Assembly has appropriated N370 billion on running costs, contingency, vague and duplicated projects for the Senate and House of Representatives in the 2024 Appropriation Act.

I’m not talking about the hundreds of billions of naira padded in other ministries, departments and agency, but what they budgeted for their welfare and running of the National Assembly.

In the N370 billion NASS budget, the lawmakers duplicated projects and created new, unnecessary projects that increased the budget from N170billion in 2023 to N370 billion this year.

In budget (under Statutory Transfers ), the NASS budgeted 36,727,409,155 for the National Assembly Office; N49,144,916,519 for the Senate; N78,624,487169 for the House of Representatives; N12,325,901,366 for the National Assembly Service Commission and; N20,388,339,573 for Legislative Aides.

A senator recently told me that each of them (and members of the House of Reps) is entitled to five aides, while the four presiding officers (Senate President, Speaker and their deputies) have at least 3,000 aides. In total, you are talking about over 5,000 aides!

Despite the foregoing, the NASS budgeted N30,807,475,470 for “General Services” and N15billion as “Service-Wide Vote” – known in administrative parlance as “contingency” or “security vote”. The NASS never had anything like service-wide vote in the past as “service-wide vote” is always exclusive to the Executive arm. Insiders said this is a clear case of budget padding as the purpose for the huge appropriations are vague.

Even the retired clerks and perm secs (despite receiving their pensions) are not left out in this public funds buffet as they got N1.2billion padded for them.

Apart from padding the intangibles, the NASS will spend N4billion to build recreation center; about N6billion to furnish committee rooms for the two chambers and; another N6billion to build car parks for senators and members (don’t ask me whether they lack any parking space).

And despite this, the lawmakers padded N30 billion in the FCDA budget for “Completion of NASS Chambers” and N20billion for “completion of NASS Service Commission”! In the same budget, the lawmakers set aside another N10billion (under NASS budget) for the completion of National Assembly Service Commission building! How did this happen? No be juju be dis?

Still hungry to devour public resources, the avaricious parliamentarians budgeted another N3billion for the “Upgrade of NASS Key Infrastructures”. How come? What about the N30billion budgeted for “Completion of NASS Chambers”?

NASS Library Complex, named after President Tinubu’s Chief of Staff, Femi Gbajabiamila, got N12billion as take-off grant and another N3billion for purchase of books.

Like other institutions under NASS, the National Institute for Legislative and Democratic Studies got N9billion without clearly stating how or where the resources will apply to. The same institute also got another N4.5billion (is this ‘jara’?) for completion of its headquarters.

Despite the dedicated powerline and powerful generators backing up power supply in the National Assembly, the lawmakers budgeted N4billion to install solar power system. I guess this will give them a reason to pad billions for the purchase of batteries every year.

The committee that superintended this butchery of public resources, the Appropriations Committees of the Senate and the House of Reps, got N200m each for a job well done.

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Opinion

Workers’ Day and The Nigerian Workers In Perspective

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By AbdurRaheem Sa’ad Dembo

Every 1st of  May workers celebrate their day globally .It is always a day of reflection, celebration and emancipation of workers around the world.

In Nigeria,May Day as a holiday was first declared by the People Redemption Party (PRP) Government of Kano State in 1980.Afterwards it became a national holiday on May 1, 1981

Before venturing to restrict myself to Nigerian workers let me take a broad look at how May Day emerged in the world.Workers’ Day, stemmed in part, from an ancient European Spring festival,but its modern manifestations arise from the organised efforts of socialist and communist groups to establish a time for honouring workers and the working class.To be specific, the holiday was first promoted by the International Workers Association in 1904 to commemorate the slaughter of protesting labourers in Haymarket Square in Chicago ,United States of America in 1886 and it was to be a day to push for the eight-hour work day and other demands.

The date May 1st was chosen because,in the USA, the eighth- hour workday first came into effect on that date in 1886.It was predicated on the demands of the Federation of Organized Trades and Labour Unions.There was a general strike and a riot in Chicago in 1886, and eventually, the eight -hour workday was legally recognised.

Many people tend to attend the National May Day celebration in Abuja and other State capitals.The president or State Governors would be there as the case may be to make a speech, and thousand would fill the Eagle Square or state stadium to listen to the President or Governor.Some people attend number of other events that hold across Nigeria on May Day,organized by schools,labour unions,hospitals,and other various institutions.People use the day for relaxation since it is a public holiday.

In Nigeria,some people participate in nationwide marches and rallies on workers’ Day or Labour Day.More often their major concerns are usually to clamour for an increase in the minimum wage,an end to workers being left unpaid for months,the need for government action to address the high unemployment rates of recent years ,and the necessity for government action to address the high unemployment rates of recent years, and the need to move Nigeria off of over dependence on petroleum exports.

On a May Day in Nigeria, politicians and labour leaders will give out speeches on the strength and the challenges of Nigerian economy , and on how to improve it for the general good of the country.

It is significant to say that Nigerian workers both in public and private sectors are facing enormous challenges.The disparity in the salary structure and irregular payments of salary as witnessed before the coming of Buhari’s administration in 2015, where a lot of state Governors could not pay their workers for several months.

The Buhari administration ensured that bailouts were given to states to enable them offset their unpaid salaries to workers.That was a plus for the Daura man administration.

Meanwhile, President Tinubu’s administration has also sustained the legacies of prompt payment of workers salaries in the last one year.It is expected , because even as Lagos State Governor he had no history of owing workers.

In a larger context, welfare of Nigerian workers are not properly taken care of, most especially those in private sectors.There are situations where teachers in private schools are being paid peanuts as salaries,whereas the owners or proprietors charge the parents homongous school fees.This is not a hearsay I was once in that shoe as an English language teacher.

The area where the civil servants in both Federal and States are feeling the heats is the non regular payment of promotion arrears.According to sources some agencies under federal government are being owed promotion arrears since 2018.This is not a healthy practice, though some sources said the federal government has put the payment in batches and it is now being paid bit by bit.In some states the promotions are not even implemented let alone payment of its arrears

As Nigerian workers join others around the world to mark 2024 workers’ Day,it is expected that the ongoing negotiation by the federal government and labour leaders on new minimum wage will yield good results.

It is imperative to say that the Federal Government should fix the economy for the collective good and progress of the country.No minimum wage can ameliorate poverty, if there is consistent economic instability.

The level of inflation ravaging Nigerian economy is worrisome.Any minimum wage that is less than hundred thousand naira today won’t make any appreciable impacts in the lives of average Nigerian workers.

Essentially,Corruption can only be tackled effectively and holistically,if there is a reasonable living wage for the civil servants.You can’t fight corruption in a country where workers welfare and retirement package are relegated to the background.According to the human rights lawyer,Femi Falana ” corruption cannot be meaningfully fought by governments that pay poor wages to workers,owe workers and pensioners arrears.”

To the NLC and TUC leaders, providing sincere leadership is key to the quality ,emancipation and progress of Nigerian workers.Adam Oshiomhole was an example of a good labour leader in the history of Nigeria.He stood for the workers even in the face of oppression.So the current leaders should take a cue from his tireless comradeship for the benefit of Nigerian workers.

 

Nigeria is a blessed country and a land of prosperity; her workers have no reason for penurious lives.

Happy Workers’ Day

abdurraheemsaaddembo@gmail.com

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Opinion

Minimum Wage Increment: Be Proactive My Governor.

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Governor Abba Kabir Yusuf

 

By-Abba Hamisu Sani

1st of May every year is a special day for workers in Nigeria working with the government or with the Private sector.

The main issue ahead of this year’s celebrations is the expectation of the new minimum wage Increment.

President Bola Tinubu is expected to announce the new salary scale as Vice President Senator Kashim Shatima hinted recently that by the 1st of May, the new minimum wage will be ready for implementation.

Here I want to salute the courage exhibited by the Edo State governor Godwin Obaseki who has increased the minimum wage for workers in the state from 40,000 naira to 70,000 naira ahead of the 2024 Workers Day celebrations.

This prompted my attention to urge my state governor Abba Yusuf to follow the suit of Edo State governor in this direction.

Kano workers suffered a lot in the hands of the immediate past administration, ranging from different kinds of deductions which causes uncertainty on the amount to be collected by a worker and even pensioners every month.

Governor Abba if you do the same as Obasaki, the Kano people will be happy with you as it will boost the state economy and currency circulation.

It is very imperative at this time to be proactive and not wait for the Federal government announcement before taking your step in making Kano workers happy.

Infrastructural development is quite needed but at this time social security is the most critical as it has been said “A hungry man is an angry man”.

Workers’ salaries are too low to cater to their basic needs, such as food, rent, transportation, and school fees for their children while they see politicians cruising in jeeps and other expensive cars.

Finally, Governor Yusuf remember that these workers have sacrificed a lot during the 2023 elections to see that you emerged as Kano governor.

Is very important to consider their plight at this moment of critical economic hardship.

I urged all comrades in different forms of struggle including civil society Forum to join me in pushing the Kano State government to implement a new minimum wage in a dignified manner as the Edo State governor did.

Abba Hamisu Sani is a
Media Consultant /CEO Time Base TvAfrica & Africa Press.
Can be reached via timebasetv@gmail.com

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