Why FG Must Review Nigeria’s Power Sector Privatisation

The National Union of Electricity Employees (NUEE) has lamented that over N3 trillion injected by the federal government into privatised electricity companies has not resulted in a commensurate increase in power generation over the past 10 years.

Secretary General, National Union of Electricity Employees (NUEE), Comrade Joe Ajaero said the privatisation of the sector has further compounded Nigeria’s economic woes.

He said the privatisation policy was designed to fail from the beginning.

Ajaero spoke during a public hearing on a Bill to amend the Electric Power Sector Reform Act, 2005 to provide the legal and institutional framework for the implementation and coordination of rural electrification projects, the establishment of the National Power Training Institute and regulatory provisions to strengthen the sector for efficient services delivery organized by the House of Representatives Committee on Power chaired by Hon. Aliyu Magaji.

He said there has not been meaningful improvement or contribution by the current investors nine years after privatisation and 17 years after the Electric Power Sector Reform Act, of 2005 was signed into law.

He stressed the need to review the entire privatisation exercise.

“This Act, are we obeying it? If there is a provision for review after five years, and Nigerians are groaning, consistently, Nigerians are complaining and we say privatisation was based on the fact that government doesn’t have any business in it and government is pumping in mointointoto an individual’s business.

“As we speak now, almost N3 trillion has been pumped into the power sector which wasn’t there when it was owned by the government. So what’s the logic to saying the government has no business in business and the government now has to pump and fund the business of another man? And we need to sit down and see what is working for us.

“That is why we came here to say the laws we made by ourselves, we can pause and look at it and move on.

“As we are speaking today, the issue of tariffs is on. If the government is pumping in trillions and Nigerians are being compelled to pay, you can see what is happening, the country is suffering.

“If you put two trillion (naira) in the economy of Nigeria today it will thrive, but it is being pumped into businesses owned by individuals. Let’s look at it. What is the cost-benefit analysis of this if we have to take our money? And go and check the records, for about 10 years before privatization, the government didn’t put tperper centt of that money into the sector but it’s putting it now.

“For another 10 years no increase in generation, no conscious master plan. There is no plan in the country that by next year, the power plant will come into the system. Not for the next two years or three years for power generation to be constant, at 4,000 MW and demand will continue to increase because more houses will be built and connected and on.

“So if this is reduced to a public hearing and no action is taken further on how to make the system work, Nigeria is still at the bottom of countries suffering power poverty all over the world.