Power generation in Nigeria was 1,750 MW in 1999 when the military exited the stage for democratic governance. The issue became worse after the transition of government in 1999 from the military regime to civilian regime. Prior to that transition, the sector according to report was not in a perfect condition. However, Nigerians expect a reform power sector after the 1999 presidential election. Reason being that, the then People’s Democratic Party (PDP) that brought in Olusegun Obasanjo as president had in their campaign promises said they will ensure that the country will enjoy a steady power supply.Since then, the sector continued in a perpetual power dwindling manner making Nigeria one of the countries with highest record of generator importation in the world. While this continued, series of fora had taken place on how to improve on the negative situation with the then president Olusegun obasanjo said to have invested $16 billion dollars into the sector in order to resuscitate power supply in the country.
For Nigerians, Economic Confidential gathered that, crisis of power supply from 1999 till recent time was the peak in their history since the country became exposed to electricity. Report shows that, part of effort to reinvigorate the sector was the changing of the name of the management of the power house from the National Electrical Power Authority (NEPA), to Power Holding Company of Nigeria (PHCN), until the sector was later privatized by the past government of former president Goodluck Jonathan.
It will be recalled that in 2007, the then speaker of house of representative, hon. Demeji Bankole, made it known to public domain that about $16 billion dollars was said to have been invested into Nigeria power sector between 1999 and 2007 without any positive result. A prognosis that made the lower chamber of national assembly to in 2008 mandate it’s Power and Steel Committee, then headed by Godwin Ndudi Elumelu, to probe the power sector over the alleged $16 billion investment.
Economic Confidential gathered that in March 2008, without much ado, the committee moved into action immediately in order to unravel the mystery behind how a whooping amount of $16 billion dollars was committed to nearly an invisible project. The attempt was also followed with a marathon tour of project sites across the country to ascertain the veracity or otherwise of the stupendous claims made by the contractors handling the Independent Power Projects (IPP).
Consequently, the Elumelu committee submitted its report, which recommendations were never in tandem with power that be.
Consequently, the Elumelu committee submitted its report, which recommendations were never in tandem with power that be.
Though it was never debated on the floor of the House or made public, but investigation revealed that the Committee recommended the interrogation of some former and serving public officials by the country’s anti-graft agencies for their roles in the power project contracts.
Among them are former President Olusegun Obasanjo; the then governor of Ondo State, Dr. Olusegun Agagu; Cross River State Governor Liyel Imoke; then governor of the Central Bank of Nigeria (CBN), Prof Charles Soludo; then Accountant General of the Federation and now Gombe State Governor Ibrahim Dankwambo, among others.
The committee, in the report, was convinced that the intervention of the Economic and Financial Crimes Commission (EFCC) in the matter would compel the indicted officials and institutions to account for their roles in the award and execution of the multi-billion naira contracts.
The Committee allegedly indicted the former boss of Power Holding Company of Nigeria ([PHCN) and Special Adviser to Obasanjo, Mr. Joseph Makoju and recommended a mass purge in PHCN to enhance its performance, as well as a review of all the power projects in the country.
Agagu and Imoke, both former ministers of Ministry of Power and Steel, according to the committee’s findings, awarded contracts to non-existing firms, and must be made to account for their actions.
It was at this point that suspense and high drama crept into the hitherto laudable initiative that had been hailed by majority of Nigerians, as allegation of N100 million bribe was levelled against the Elumelu Committee.
As a result, the House frittered away public enthusiasm over the probe by dissolving the committee and all its standing committees, including the Ethics and Privileges Committee to which the N100 million bribery allegations against Elumelu’s committee was referred.
In a way, the dark days of Nigerian power sector appear to be numbered since the current president, president Mohammadu Buhari assumed office on the 29th of May this year. While it is believe in some quarters that the relative improving Nigerians are enjoying in the power sector recently is the function of former President Goodluck Jonathan’s power reform, others are of the opinion that is just a sign of good things to come from the current administration.
One of the recent miles stone achievements was how report shows that Egbin Power Plc, hit a generation capacity of 1,100 megawatts, thus accounting for almost one-third of the current improvement in power supply across the country.
Reacting on this development, The Chief Executive Officer of Egbin Power Plc, Mr. Dallas Peavey, stated that the plant has hit a generation capacity of 1,100 megawatts, thus accounting for almost one-third of the current improvement in power supply across the country.
Peavey who attributed the recent ramp-up of Egbin’s capacity to continuous investment and revamp of the plant by its new owners, Sahara Power Group and the Korea Electric Power Corporation (KEPCO), said that when the new owners took over in November 2013, generation at Egbin averaged 500 megawatts due to the dismal state of its six units, with only two of the six units operational at the plants point.
He said the transformation in Egbin commenced after its acquisition by Kepco Energy Resource Limited (KERL), in collaboration with its technical partners, Korea Electric Power Corporation (KEPCO).
According to him, “Through the injection of close to N50 billion in new capital into Egbin post privatisation, the Sahara Power/KEPCO partnership has brought to the power plant, an unprecedented level of innovation, professionalism, human capital development and continuing investment in new technology. The control room panels, installed at the plant’s inception have been removed and upgraded to state of the art digital panels. The highlight of the main plant rehabilitation occurred in the first quarter of 2015, when the company successfully rehabilitated ST Unit 6, bringing an additional 220MW to the national grid and restoring the power plant to its installed capacity of 1320MW,”
He said with these developments, the plant was equipped to generate power at its installed 1,320MW capacity, while the new owners was exploring expansion in power generation to hit 2, 670 megawatts, subject to availability of gas, additional transmission capacity and improved demand for power.
On his part, while reacting to this development, President Mohammadu Buhari who spoke through the Permanent Secretary, Federal Ministry of Power, Ambassador Godknows Igali, said his administration would give the fullest possible attention to boosting power supply in Nigeria because it was convinced that steady electricity would launch the country into faster socio-economic development.
The president said: “the problems besetting our power sector are not difficult to identify. Therefore, priorities can be easily set in order to tackle them.
According to him, “the problems are more with transmission than generation, and we equally need to secure the power infrastructure round the country. Power generation in Nigeria which was 1,750 MW in 1999, had now peaked at 4,600 MW. He added.
Speaking on this issue to Economic Confidential, the convener of coalition against corrupt leaders (CACOL ), comrade Debo Adeniran said; “while it is good to commend the relative improvement in Nigeria power sector, it is also important for the government to revisit and probe the $16 billion investment in the sector by former president Olusegun Obasonjo and bring every culprit to book.”
According to him, “ the sector has seen a good development under the current regime, but there is need for president Buhari to probe those who were in charge of the $16 billion investment, and if they are found wanting, they should come out and confess publicly, after that they should be prosecuted”.
Also reacting on this issue, the vice chairman of the committee on the defense of human right (CDHR) a civil society organization in Nigeria, Benue State chapter, Comrade Austin Omaji disclosed that “certainly there has been probes of this sector in the past, but the outcomes were not implemented. However, he continued, we can’t said the current regime should not probe the sector any longer despite the recent improvement, let there be probe, and Nigerians should always remind President Buhari of his claim for zero tolerance for corruption to ensure that he carry out the outcome of any further probe to the later”.
On her part, a civil servant in Lagos who did not want her name mention in the print stated that Nigeria has witnessed series of probes in the past and nothing has been done. Therefore, since the sector has picked to some extent, let the government just consolidate on the improvement of the power sector. She however call on the government not to embark on any further probe knowing full well that it will not implement the outcome.”
