Opinion
Why Budget For Generating Sets?
When the National Council on Privatisation (NCP) constituted and empowered a 23-member Electric Power Implementation Committee (EPIC), the committee was charged with the responsibility of developing guidelines for promoting the policy goals of total liberalization and competition. It also had the task of promoting private sector-driven growth of the electricity sector.
Usually, whenever private sector participation becomes imperative, it is an indication of a gap calling for a bridge. If as posited by Okoro and Chikuni (2007), constant power supply is the hallmark of a developed economy, it implies that our nation whose energy need is epileptic in supply, will not only be prolonging her development, it also risks losing potential investors.
The realization of this fact, I supposed, became a strong justification for the power sector reformation efforts in Nigeria, which culminated in the signing into law of the Electric Power Sector Reform Act, on March 11, 2005, by the then President and Commander-in Chief of the Armed Forces of the Federal Republic of Nigeria, Chief Olusegun Obasanjo.
Ever since, several policies have been put in place by government to strengthen the sector for enhanced productivity, and probably actualize the federal government’s target of achieving a whooping 20GW of available electricity capacity by the end of the year 2020 .
That was exactly the begining of the unbundling of the Nigerian power sector. The eventual loss of the monopoly of the Nigerian Electricity Power Authority (NEPA) over the operation of the Nigerian power sector in 1998 was testimonial of the effort of the committee in this direction.
Just two months ago, Vice President Yemi Osinbajo said the federal government’s power sector reforms are already yielding results as steady progress is being recorded in power generation, transmission and distribution capacities on the national grid.
Osinbajo, who said this at the commissioning of a 2 x 60 MVA, 132/33KV substation and associated 132KV transmission lines in Abeokuta, Ogun State, views the substation and transmission lines, built by the Niger Delta Power Holding Company (NDPHC) and the Transmission Company of Nigeria (TCN), as an important part of the President Muhammadu Buhari administration’s efforts to improve the supply and quality of power reaching the homes and businesses of Nigerians.
He ascerted that Nigeria at the moment has 13,427 MW of installed capacity, and an available capacity of 8,342MW, an achievement he attributed to the efforts of the government/ private sector partnership in the rehabilitation/commissioning of turbines in Shiroro, Egbin, Delta Power, Sapele, and Gbarain.
Expressing high optimism, he assured of a new generation of energy in the tune of Gbarain (Extra 115 MW); Kashimbilla (40 MW); Afam III Fast Power (240 MW); Gurara (30 MW); Dadin Kowa (29 MW); and Kaduna (215 MW).
“In the long term, several solar plants will come on stream; the national grid, has the capacity to transmit 7,000 MW an increase from less than 5,000MW in 2015, this is due to the completion of several transmission projects like the Ikot Ekpene switching station and the completion of the Ikot Ekpene-Ugwuaji-Makurdi-Jos loop done by the NDPHC in 2017.” He added.
Of course, as a key stakeholder in both urban and economic development, nothing short of a vote for private sector involvement could be apt at this moment in the country’s power sector given its place as a major contributor to national income and the principal job creator and employer.
With the number of both electricity generating and distribution companies now operational in the country’s power sector, it becomes questionable should the federal government’s target of 20GW of available electricity capacity by the end of the year 2020 be not realized.
Surprisingly, amidst the achievements of the federal government in this sector, as potrayed by the Vice President, the inclusion of the purchase, fueling and maintenance of electricity generating sets across ministries, departments and agencies in the country, coupled with the whopping sum of N9.05bn assigned to it by the government in its 2020 budget proposal, tends to send a misleading signal towards the realization of the federal government’s target of 20GW of available electricity capacity by the end of the year 2020.
The foregoing rather recalls to mind the words of former President Olusegun Obasanjo that “if we insist that by the year 2020, our economy is expected to join the world’s twenty largest economies in GDP size, then the electricity issue must be considered the top most of priorities. If we fail in this sector, we can as well bid farewell to any aspirations towards 2020.”
According to reports from a national daily on the budget proposal submitted to the National Assembly by President Muhammadu Buhari on Tuesday, October 8, 2019, the sum of money earmarked to be spent on generator might be much more as some agencies like the Independent National Electoral Commission (INEC) and the National Health Insurance Scheme (NHIS), which have offices across the country.
The paper reported that the N9 billion earmarked for generators by the Federal Government is more than the Internally Generated Revenue of Bauchi, Abia, Zamfara, Kogi, Anambra, Bayelsa, Jigawa, Ebonyi, Ekiti, Adamawa, Nasarawa, Katsina, Kebbi, Borno, Taraba, Yobe and Gombe States in the first and second quarters of 2019.
If the achievement so recorded in power generation by this administration as announced by the Vice President could be taken for real, how then do we justify the outrageous amount captured in the 2020 budget proposal for generating sets alone? Is it that we generate without distribution?
Given that 2020 is our target year, I think the leadership of this great nation will be doing a great disservice to the led if it continues to place high premium on generating sets instead of looking for ways to distribute the energy so generated.
Sylvia ThankGod-Amadi
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