Stakeholders react to power sector privatisation achievement
Stakeholders have expressed mixed feelings that the privatisation of the Nigerian electricity supply industry has not delivered on its promise.
While some are of the views that there has been a marginal improvement in electricity supply, others insist it is not at the level that was promised by the champions of privatisation nor has it matched the expectations of the people.
Power sector stakeholders in their various summations at the December 2017 Nextier Power Dialogue on twitter and monitored by BusinessDay, argued for and against the topic ‘Is privatisation the right solution for Nigeria’s power sector problems?’
Joe Ajaero, general secretary, National Union of Electricity Employees, and national president, United Labour Congress, in opposing the topic, said the whole concept of privatisation was an ideology, but the country could not generate power ideologically.
Ajaero observed that privatisation process was not transparent when it was implemented, saying that it was a post industrialisation concept.
According to Ajaero, “Power generation does not respond to market dynamics, how you can sell a commodity that isn’t available.”
He wondered why Nigeria as a country who rushed into privatisation today was trying to switch to nationalisation.
Sam Amadi, former chairman/CEO, Nigeria Electricity Regulatory Commission, while also opposing the theme, reiterated Ajaero views that privatisation was an ideological framework about how the sector should be managed.
To him, “It is not a question of whether we have a choice; we don’t! We must go to our private sector and get them to spend the money we need for our infrastructure.”
He further said the assumption of privatisation was that it would do the right thing “because if you don’t have good corporate governance over the private sector it will still fail.
“The bulk trader is there to create worthiness, but the entities cannot even trade among themselves. Reform is not only about privatisation, privatisation is only a part of the power sector reform.”
Eyo Ekpo, executive, GE – Transportation and former commissioner, Nigeria Electricity Regulatory Commission (NERC), while supporting the topic, insisted that there was only a right way to run any sector, which was privatisation.
On her part, Chantelle Abdul, CEO, MOJEC Power and Meters, opined that Nigeria power sector operators needed to stop pointing fingers at each other and work together.
“Privatisation is the best way to allocate resources and make any sector better,” Segun Adaju from Rural Electrification Agency of Nigeria, said.