NERC IS THE SABOTAGE AGENT OF NIGERIA’S POWER SECTOR!

ZION B-BC   NEWSLETTER.  

(Looking at Nigeria's Political System From a Godly Perspective)

A Publication of the Zion Faith Bible-Believing Church Kpeyegyi Abuja Nigeria {Vol. 9.NO 342. 1st March, 2020.} “…ONLY The Truth, Will Set You  Free! (John.8:32). . PRAY & FAST EVERY WEDNESDAY TO STOP BLOODSHED IN NIGERIA!

NERC IS THE SABOTAGE AGENT OF NIGERIA’S POWER SECTOR!

Daily Power outages across Nigeria is bad credential for an institution saddled with the statutory function to feed the national grid with much power for industrial revolution in the agriculture, manufacturing and the extractive sectors of the economy, especially now that the closed borders are to advantage!

The Federal Ministry of Power should naturally qualify as a strong institution that should cater for the all-purpose energy needs of the teeming population of industrial/business entrepreneurs, professionals, famers, artisans, especially of the private sector stock but they failed the litmus test to produce enough electricity megawatts since 1999 till date! This development has no doubt confirmed that past administrators merely paid lip service to the concept of building strong institutions that would ensure viable/sustainable economic platform for the citizens’ businesses to thrive.

Strong institutions are not sketched on the artist canvass of fantasies with fancy brushes or on an architect’s drawing board full of speculative conventional ideas of variables, but on iron cast foundations, not structured with human frailties but through righteous and divinely appointed agents with special mandate for such onerous assignments!

NERC IS A LONE RANGER!
But when the Nigerian Electricity Regulatory Commission (NERC), is independent of the Parent Agency (Federal Ministry of Power), and takes final decisions on issues relating to  formation and review of electricity tariffs, did that not amount to policy somersault? Should a house be divided against itself?
Since inception, NERC had not made any meaningful impact on the nation’s economy because it is incapable of regulating the activities of the GenCos and DisCos which have proved over the years to be independent of the FEDERAL REGULATOR since they always decided ARBITRARY TARIFFS to be paid by consumers and the increment of such as at when they so pleased without regulatory resistance! The regulatory authority in 2018 instructed that all consumers should be metered in other to discourage outrageous estimated billings.
The companies neither acknowledged nor obeyed the directive but instead maintained status quo and when it went viral that estimated billings had been pegged at a monthly amount not exceeding N1, 800, by NERC, the Commission quickly denied the directive! NERC is also finding it very difficult to sack the existing crop of GenCo and DisCo investors because no serious investor would want to do business with the existing management board that speaks from both sides of the mouth as presently constituted!

WAS IT NOT HIGH TIME THAT GOVERNMENT OVERHAULED NERC!
Consecutive NERC administrations regularly told Nigerians that electricity generation had never posed a problem but that the perfect platform/network through which to adequately discharge and distribute the abundantly-generated energy to end users, had constituted their major challenge!
In fact as at the last quarter of 2019, the institution generated 12,522 megawatts (MW), of electric power from its existing plants but could hardly distribute up to 4,000 MW, which had proved to be grossly insufficient and inadequate to about 20 million Nigerians who needed regular power for all aspects of industrial economy!

Nigerians need at least 10,000 MW supply of electricity all year round to fulfil all socio-economic contracts! In a deliberate plan to facilitate economic growth during his tenure,  ex-President Aremu Obasanjo, between 1999 - 2007 introduced some urgent reforms in the Power Sector which in the main birthed the Nigerian Electricity Regulatory Commission (NERC), and the Power Holding Company of Nigeria (PHCN), a conglomerate of 18 companies (now unbundled into 11 distribution, 6 generating, and 1 transmission companies), to replace the former National Electricity Power Authority (NEPA), among others, through the Electric Power Sector Reform (EPSR), Act, signed into law in March, 2005.
But in spite of what seemed a laudable move by that Chief Executive, allegations of corruption and mismanagement of funds to the tune of USD$16 billion still hung on his administration like a plague till date!

WHAT IS RESPONSIBLE FOR PERENNIAL ELECTRICITY OUTAGE IN NIGERIA?
Although the nation is blessed with multiple sources of electricity generation through steam turbines, hydro-power, thermal, oil and gas, nuclear energy, solar thermal energy, but the main source comes from fossil fuels (especially gas), which accounts for 86% of its total capacity; key players had often complained of shortage of non-renewable energy sources, fossil fuels (coal, natural gas and petroleum), supply for thermal plants and poorly-maintained transmission network operated by government through the National Grid System in which generating stations and major consumer centres are integrated.

There is also the insecurity aspect affecting the 11 Distribution Companies across Nigeria  due to vandalism, inadequate investments to increase generation and transmission capacities and massive corruption that had be-devilled the sector for too long!

INTRODUCTION OF THE GENCOS, DISCOS, … FOR BETTER SERVICE DELIVERY?
Government unbundled PHCN into 11 electricity distribution companies (DisCos), 6 generating companies (GenCos), and one Transmission Company of Nigeria (TCN). The Act also created the NERC as an independent regulator for the Power Sector. But presently, it has fully divested its interest in the 6 GenCos, while the 60% of its shares in the 11 DisCos have been sold to the private operators while the Transmission Company still remained under its ownership.  Before the new arrangement, government allowed private sector participation through Independent Power Producers (IPPs), comprising international stakeholders, Shell, Agip, NESCO and AES Barges, and also incorporated the Niger Delta Power Holding Company (NDPHC), in 2004, as a public sector funded emergency intervention to increase the level of power generation with a mandate to manage the National Integrated Power Projects (NIPP), electric power value chain of identified products of generation, transmission and distribution  to boost output on the national grid! 

PAYING OUTRAGEOUS ELECTRICITY BILLS FOR DARKNESS!
Prior to the introduction of the GenCos/Discos, citizens must assure field officers of NEPA of their financial capacity to purchase both electric poles, service wires including collective muscle to acquire new transformers, which were prerequisites for electrical installations to residencies, business premises or communities! Following outcries against those insensitive policy coupled with   consistent epileptic delivery of electric power to the already traumatized consumers, an ex-NERC Chairman, Dr. Sam Amadi, during his tenure as PDP political appointee in 2013, promised that Billing Meters would be freely installed for all consumers who had been shortchanged for too long, but he reneged on the promise of free meters! The new investors inherited the citizens’ network of millions of electric poles and billion metres of service wires across the nation without paying compensations, but also had the effrontery to demand for almost N40,000/N70, 000 respectively for installation of single/double phase billing meters or in the alternative be content with estimated billings which has generated opposition to the new electric tariff regime to be introduced from 1st April, 2020!

OBASANJO’S USD$16 BILLION DOLLARS INVESTMENT INTO POWER SECTOR!
Except for ex-President Obasanjo’s persistent denial, most Nigerians believe that USD$16 billion dollars was illicitly invested into the Power Sector with no corresponding dividends to show for it till date! However, the good news is that   Economic and Financial Crimes Commission (EFCC), at the insistence of an NGO, Socio-Economic Rights and Accountability Project (SERAP), and other patriotic Nigerians , is now probing the allegations against ex-President Obasanjo, to prove no one is above the law! It is alleged that a total sum of N11 trillion had been squandered in the power sector between 1999 and 2015 and the unresolved case of the reported missing $12.4 billion US dollars oil windfall, allegedly spent between 1988 and 1993 by the government of former military dictator, General Ibrahim Babangida, was also under searchlight!

BUHARI’S QUERY: “WHERE’S THE POWER?”
President Buhari is not convinced that some of his predecessors in office were not culpable in respect of various allegations of massive corruption in the power sector and according to him, “one of the former Heads of State bragged that he spent more than $15 billion American dollars, not naira on power. Where is the power?”In November 2016, SERAP petitioned former Chief Justice of Nigeria, Walter Onnoghen, and urged him to probe the alleged spending of the $16 billion US dollars and in April 2017, the NGO sent an open letter to President Buhari to take the allegations of corruption in the Power Sector to the International Criminal Courts to ensure that justice was served!

THE RIGHT STEPS FORWARD!
Nigerians deserved a perfect electric service delivery system that would ensure daily constant power supply like in other climes. Epileptic power supply in the 21 Century Nigeria is anathema!  How do we develop our extractive industries, agriculture, manufacturing sector, the Micro Small Medium Scale Enterprises (MSMSEs), which represent the backbone of any serious economy without regular power?
How long will it take billionaire ‘Femi Otedola to make serious impact in the Power Sector, having moved over from the oil and gas? President Muhammadu Buhari is determined to complete the erstwhile moribund MAMBILLA HYDRO ELECTRIC STATION which will add 3,050 MW to the national grid. HE SHOULD ALSO MERGE NERC WITH MINISTRY OF POWER!
“Righteousness exalts a nation; but sin is a reproach to all people.”(Proverbs. 14:34.),

Please look forward to more divine revelation in the next edition of Zion B-BC Newsletter as you share this with friends and remain blessed in the Lord. [For weekly access, to this newsletter, log on to:  facebook.com/zionfaithbible.believingchurch or http://www.zfbbc1.blogspot.com,

If you have not accepted the Lord Jesus Christ as your personal Lord and Saviour, don’t miss this great opportunity as you pray this prayer: Lord Jesus; I confess that I am a sinner who needs to be saved through the grace of the New Testament of your Blood, shed on the Cross at Calvary; I renounce every sin in my life and accept you as my Lord and Saviour. Please forgive me and write my name in the Book of Life. Amen. If you prayed this prayer, you have been admitted into the family of sons and daughters of God, who are born-again. Congratulations.

I am, yours sincerely, Dr. David B.A. Olufon, Resident Pastor and Editor. 08130669886, 08098194390.  08080243066. G-mail- dvdolufon@gmail.com.