Reps halt privatization of Afam power plant as dilapidated asset

Nigeria’s House of Representatives on Wednesday directed National Council on Privatization (NCP) to immediately suspend the process of privatizing Afam Power Plc on a fast-track transaction basis to allow for completion of the repairs of Phases 4 & 5 machines pending the conclusion of its investigation.

The resolution was passed sequel to the adoption of a motion on the ‘Need to investigate the planned privatization of the Afam Power Plc by the Bureau of Public Enterprises (BPE) as a dilapidated asset’, sponsored by Ayodele Oladimeji (PDP-Ekiti).

Some of the lawmakers who spoke in favour of the motion, namely: Yussuff Lasun, Deputy Speaker; Femi Gbajabiamila, Majority Leader; Mohammed Monguno (APC-Borno); Sergius Ogun (PDP-Edo) and Nkiruka Onyejeocha (APC-Abia), frowned at the state of previously privatized public assets.

In his lead debate, Oladimeji observed that the planned privatization of Afam power plant may suffer the same fate that the previous ones suffered in the privatization process.

He however called for the repair of the faulty components of the plant so that good money for the value of the plant could be realized and the plant would be functional even after its sale, so it could be useful to Nigerians.

On his part, Yussuff Lasun (APC-Osun) stated that the privatization process in Nigeria is awkward and skewed towards personal, not national interest.

He queried the practice of selling off assets that are in critical sectors such as power, mines and steel, educational or technological development.

Lasun who called for review of the entire process, argued that most assets privatized have not met up to the aims for which they were privatized.

He queried why a nation looking to provide steady power to its citizenry would be selling off its power assets and not ensuring they function better than when they were in government control.

In his contribution, Femi Gbajabiamila (APC-Lagos) urged the Committee over sighting BPE and the agency to be cognisant of the budget structure to ascertain which part of the budget would be supposedly financed by the proposed sale of the power plant.

Gbajabiamila who harped on the need to put national interest at the front burner, queried the plan to sell off the plant as scrap.

In the same vein, Mohammed Monguno (APC-Borno) who narrated his experience during the visit to Afam power plant, argued that it would be a waste to sell the power plant as being proposed.

While noting the assets previously sold off are not functioning optimally, Monguno called for reinvestment by Government into the sector to boost power supply to Nigerians.

In his view, Sergius Ogun (PDP-Edo) observed that the power plant is a critical asset that should not be sold off without due diligence.

He stated that as a believer in privatization, proper procedures should be followed before the process is implemented.

In her remarks, Nkeiruka Onyejeocha, chairman, House Committee on Aviation, queried how the spirits of loan-borrowing and that of trading off all critical assets seem to have sipped into governance.

She reminded members that most of these privatization processes lead to loss of Nigerian jobs.

While ruling, Speaker Yakubu Dogara mandated the Committee on Privatization and Commercialization to invite the Director-General of the Bureau of Public Enterprises (BPE) to ascertain the status of the transaction with a view to investigating same and report back within four weeks for further legislative action.

KEHINDE AKINTOLA, Abuja