Agenda for the new minister of power
The appointment of Mr Babatunde Raji Fashola, former Governor of Lagos State, as Minister Power, Works and Housing gives him the responsibility to combine the functions of three ministries.
On assumption of office, a statement from the media head of the ministry, Timothy Oyedeji, said that Fashola stated his thoughts on how to bring together activities of all the ministries now under his supervision for effective service delivery.
He was quoted to have said: “We are here to work with you, in solving problems on ground as quickly as possible. We want to know if some of those problems are man-made or systemic. We want information on what has been done, what remains to be done, and what are the future plans. We want to continue from there”.
The power sector may not be an entirely new terrain for Fashola. As Governor, he rolled out a multi-billion Lagos Independent Power Projects.
Despite the power sector being substantially controlled by the private sector, the sector remains problematic across the value chain of generation, transmission and distribution. Operators in the power sector have said that Fashola must work very hard to surmount the mirage of problems facing the sector.
According to them the sector is faced with so many problems ranging from lack enough investment to technical issues such as week transmission lines, inadequate gas supply, vandalism and supply-related bottle-necks for gas-power infrastructure, grid-limitations and reflective tariff that could make investors recoup their investments.
Reuben Okeke, director-general, National Power Training Institute of Nigeria, NAPTIN, explained that there is no way the country’s energy needs can be achieved without addressing all the problem enumerated above adequately. He also said the traditional power sources must be complemented with renewable energy. He said the new minister must ensure that energies from wind, solar and other sources must be brought into the sector to compliment the already existing sources of thermal and hydro.
Nigeria, he said, requires substantial electricity for sustenance, stressing that thermal and hydro power plants even though remain the major sources of the country’s power supply, other sources must be made to compliment them.
The Transmission Company of Nigeria (TCN) which is now being run by Manitoba Hydro International through a management contractor, some stakeholders say is critical to revamping the fortunes of the power sector. But for this to be achieved they said TCN must be supported in such a way that it is adequately equipped technically and financially.
They said TCN that is expected to provide stability in electricity transmission across the country is plagued with system failure, adding that reinforcing this would require huge capital outlays which the government does not have. The current assets of TCN includes about 5,523.8 kilometres of 330 kV lines and 6,801.49 kilometre of 132 kV lines which are very obsolete and weak.
The stakeholders however insisted that the challenges facing the country’s power sector can only be overcome through proper pricing of electricity.
Kola Adesina, the Chairman, Egbin Power Plc, also insisting that the power supply would be more stable in the country if the price of the product is right.
“The electricity sector is fundamentally flawed and it needs to be dealt with squarely. The price has to be right for any investor to make it in the sector; it can only be profitable if the customers are satisfied with the supply.
Consumers’ satisfaction, he said could be possible if the product is readily available; and the product can also be readily available if the price is right,’’ he said.
Biodun Ajifowobaje, the managing director of Ikeja Electric said the new minister must find a creative way of resolving the issue of reflective tariff and gas supply so that all stakeholders would be comfortable operating in the sector.
He said having a cost reflective tariff is the only way the electricity sector can survive: “The truth is that whatever is realised from the tariff is used to fund the entire value chain of the power industry – generation, transmission, NERC, and others”. So the new minister has said would have a lot to do.
He said when the investors are calling for a cost –reflective they mean tariff that must pay for everything along the value chain.
The problem of gas pipelines vandalisation and increased protection of Nigeria’s power infrastructure are also going to be another challenge according to Seun Olugbesan, an electrical contractor. He said the new minister must bring all the stakeholders together so that they would be involved in solving the mirage of problems facing the sector.
Godknows Igali, former Permanent Secretary in the Federal Ministry of Power, said that most time when there was the power output dropped is always as result of the vandalisation of gas pipelines and want an urgent solution to this issue.
Some of the stakeholders noted that steady electricity supply is crucial to industrial development of any country, especially a country like Nigeria that is planning to become one of the best economies in the world by 2020.
They said steady power supply will also reduce cost of manufacturing and other domestic services, uninterrupted power supply will guarantee investments, employments for teeming unemployed graduates and reduce poverty level, among other developments.
OLUSOLA BELLO & FRANK UZUEGBUNAM