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The cost of darkness is infinite”, so in defining the roadmap for the reformation of the nation’s power sector, the customer (the Nigerian people) have been put on the driving seat. This proved true on Thursday August 26, 2010 when the President rolled out a new strategy for solving Nigeria’s power problem.
Under it, the Federal Government is expected to hands off power generation and distribution. The Transmission Company of Nigeria (TCN) will still remain a property of the Federal Government of Nigeria but under Private Sector Management.
Speaking at the public presentation of the Roadmap for Nigerian’s Power Sector Reform, the President and Commander-in-Chief of the Nigerian Armed Forces, Dr. Goodluck Ebele Jonathan, GCFR said that just like Nigeria was able to tackle the telephone challenges of the past, his administration is committed to creating a power revolution in Nigeria.
The President pointed out that the event was designed not only to launch the Roadmap but also to engage investors in a discussion on how to transform the power sector into a major driver on the Nigerian economy. All the generation and distribution companies are expected to be privatized, based on a core investor sale of a minimum of 51 percent of government’s equity in the companies.
The President also noted that electricity tariffs were to be reviewed upwards in order to provide incentives for the private sector investors and encourage sustained supplies. To develop the desired tariff structure, the President said that the Nigerian Electricity Regulation Commission (NERC) had been reconstituted and will be led by a person of proven integrity. The list of the members of the Commission was due for submission to the National Assembly soon according to the president.
The plan also includes providing assistance to the private sector towards building plants that will generate 5,000 mega watts between 2010 and 2012 in addition to the existing capacity.
Speaking further, Dr. Jonathan said that the flared gas will be channelled to domestic use. He promised to engage the Oil Operating companies in Nigeria to fast track the bankable gas supply agreement, as well as gas transport to both Federal Government power plants and the Independent Power Plants.
He further solicited private sector participation in sending 5000 mega watts of electricity that will be generated in the next few years to the national grid.
Speaking at the occasion, the Governor of Lagos State His Excellency Babatunde Raji Fashola acknowledged that Lagos State was witnessing the largest Federal Government delegation to the State in the last 21 years. This, he said demonstrates the tremendous presidential will in moving the power sector forward. Electricity the governor noted has become as important as oxygen is to life and so is the only thing that matters to every Nigerian.
He appealed to all those involved in the reform process to give it their best shot and put smiles on the faces of Nigerians in general and Lagosians in particular who are the largest consumers of power in the country.
The Honourable Minister of Petroleum Mrs Dieziani Alison-Madueke and the Group Managing Director of the Nigerian National Petroleum Corporation were commended for their roles in resolving the knotty issues surrounding gas supply and pricing.
Power is solely the key for economic expansion and job creation and it is hoped that the nation will harness its enormous natural gas deposits to boost domestic gas supply necessary for power generation. |
