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Editorial

Addressing Nigeria’s Power Challenges

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Recent data from the System Operator indicates that the electricity power supply situation has not shown any signs of improvement as it has continued to fluctuate due to chronic multi-faceted and long standing challenges. According to the data, supply fell by 22.9% from a peak generation of 4,115 Megawatts to 3,172 Megawatts on Saturday, June 12, 2021.
The data further indicated that most power plants in the country were operating far below their functional capacities due to gas shortage with Olorunsogo Power Plant (335mw) and Sapele Power Plant (450mw) completely out, while Egbin Power Plant was generating at 746mw out of about 1,000mw capacity; Omoku Power station generating just 37.20mw; Omotosho (NIPP) generating 105mw and Afam power plant generating only 80mw from more than 700mw capacity.
Still, the data showed an unstable power generation situation within seven days: 4,120.9mw on Sunday, June 6; 4,24.9.4mw on Monday June 7; 4,000mw on Tuesday, June 8; 3,720.7mw on Wednesday, June 9; 3,517mw on Thursday, June 10; 3,765mw on Friday, June 11; and 4,115mw on Saturday, June 12.
Apart from the fluctuations, national electricity grid collapse that often throws the entire nation or parts of it into complete power blackout is as well a common occurrence in the country. On May 12, the grid collapsed for the second time this year and the 29th time in the last three years. As indicated on Nigerian Electricity System operator data, the number of times the national grid suffered a collapse was four times in 2020, 10 times in 2019; and 13 times in 2018.
From an estimated power need of about 180,000mw, Nigeria currently has only 13,000mw installed generation capacity while the distribution system has capacity to evacuate 5,500mw only. On February 28, 2021, the Transmission Company of Nigeria (TCN) hit a record milestone on transmission of power as it recorded a national peak of 5,615.40mw. However, on most days, it is only able to dispatch around 4,000mw to Nigerians.
Currently, only 45% of Nigeria’s population is said to be connected to the national grid while power supply difficulties are experienced about 85% of the time and almost non-existent in certain regions. Power supply difficulties cripple the agricultural, industrial and mining sectors and impede the nation’s economic development efforts.
The damaging effects of insufficient power supply on businesses cannot be over-emphasized. Enjoyment of basic social amenities such as quality healthcare, adequate water supply, telecommunications services, etc. becomes limited or even impossible due to long term electrical power outage. Huge revenue loss, business disruptions, laying off of workers by affected industries, loss of very import records at data centres, wastage of perishable foods, destruction of home appliances, amongst others, are some of the consequences of unreliable and unstable electrical power supply.
Most businesses and households that can afford to do so, run one or more diesel-fuel generators to supplement the intermittent supply which comes at a huge cost to family budgets and jacks up cost of production of goods and with corresponding exorbitant prices of essential commodities. In addition, the combined large-scale burning of fossil fuel contributes to greenhouse gas emissions that in turn adds to global warming and related environmental disasters.
Admittedly, the energy crisis in Nigeria is a protracted one that dates back to several successive governments with each failing on promises to do something radical to sanitise and stabilise the sector in order to drive needed industrialisation and economic transformation. The country has been unable to meet its energy demand because of its policies, regulations and management of operations.
Continued use of aged equipment, poor maintenance culture, corruption and looting of funds meant for power sector reform have been fingered as some of the major causes of the dismal electric power supply situation in Nigeria. For instance, while the present Federal Government accuses the Olusegun Obasanjo administration of expending about 16 billion United States Dollars on the power sector without anything to show for it, it is (the present administration) alleged to have sunk in about 1.3 trillion Naira of borrowed money with the situation remaining virtually the same.
There is no doubt that the energy sector is a highly specialised, technical, complex and costly endeavour. It is, in fact, estimated that to generate 1,000mw of electricity could cost about $1.2bn. There are also a myriad of challenges to contend with, irrespective of the option chosen to generate power vis fermal, hydro, nuclear, wind, etc. Transmission and distribution also come with their peculiar impediments.
Gargantuan, complex and complicated as the challenges are, The Tide does not believe that they are insurmountable. The Federal Government only needs to muster the requisite will to do whatever it will take, including breaking the ring of corruption that has kept the sector bound. Every policy and official regulations that have been in place need to be revisited and reviewed to achieved results.
Speaking at the just-concluded Nigeria International Petroleum Summit, the Chair, Shell Companies in Nigeria/MD SPDC, Osagie Okunbor, said with 203 trillion cubic feet of gas reserves, what was needed in the country is to deliver projects that would produce gas. This is even as the International Oil Companies (IOCs) had insisted that in spite of Nigeria’s huge gas reserves, a lot still needs to be done to attract investment to the sector to develop them to boost power generation in the country. We think that government also needs to consider taking off its hands in the entire power generation, distribution and transmission chain with the privatization of the Transmission Company of Nigeria.
Rhetorics about transformation or diversification of the economy will remain mere vain promises unless aggressive and drastic measures are taken to fix the abysmal power supply situation in the country. Sufficient, stable and reliable energy supply remains a sine-qua-non to industrialization that guarantees economic prosperity and poverty elimination.
To lift 100 million Nigerians out of poverty in 10 years as President Muhammadu Buhari has promised, will remain an elusive good and a day dream unless the problem in the power sector is conclusively addressed. No effort should, therefore, be spared in pursuit of overcoming the energy supply challenge in Nigeria and the time to do that cannot be further deferred.

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Editorial

That Desecration Of NDA

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The contumelious assault on the headquarters of the Nigerian Defence Academy (NDA), Kaduna, by gunmen in the early hours of Tuesday, August 24, is possibly the most menacing sign that the Federal Government may have lost total control of the ungraceful security predicament faced by Nigerians. With this tragic incident and many others counting, obviously, the North-West may have increasingly evolved into the new terror epicentre, as the Boko Haram/ISWAP terrorism ostensibly dies down in the North-East.
According to media reports, the gunmen took advantage of a chasm in the NDA’s perimeter fencing and stormed the location along Airport Road, Afaka. They gained access to the residential area where two senior officers (Lieutenant Commander Awolor Wulah and Flight Lieutenant Chinecherem Okoronkwo) were shot dead. They also abducted another officer, Major Christopher Datong. The NDA is just steps away from the Federal Forestry Mechanization College, Afaka, where a gang of bandits kidnapped 39 students last March.
Indeed, the NDA, an institution that engenders young men and women to become gallant military personnel, should not come under an invasion of that dimension so easily. The onslaught was a rude reproach to the military, and by extension Nigeria. The Armed Forces ought to have carefully studied earlier raids and taken steps to safeguard their men and institutions. That this did not happen was indicative of imprudence on their part.
The inability to repel or capture the assailants highlights the shortcomings of our security system and demonstrates how daring terrorists or bandits are. Are there moles inside the Army? How would bandits attack a military institution without any effort or considerable resistance? We are asking because there has always been lingering suspicion that people are undermining the endeavours of our military, particularly in the ongoing anti-insurgency and banditry war.
While we vehemently denounce the incursion and call for the perpetrators to be apprehended and prosecuted, we urge that every effort be made to salvage the kidnapped major in the attack. The military must note that the continuous assaults on their men and formations are not only disconcerting, but hazardous as they erode the confidence of Nigerians in their ability to keep them safe. Something has to be done about that. These relentless attacks should be considered acts of terrorism and properly addressed.
In the aftermath of the NDA ambuscade, the Chief of Defence Staff (CDS), Lt-Gen Lucky Irabor, assured Nigerians of updates on the search and rescue of the abducted officer, and added that “the Armed Forces of Nigeria will continue operations to ensure that all those involved in the dastardly act are brought to justice”. Much as Irabor’s words may be soothing, we believe more can be done to reassure Nigerians that the military is in firm control.
It was reported that the Defence Headquarters (DHQ) was investigating the unfortunate attack. It is a step in the right direction. But characteristic of the government, it should not take eternity to conclude. We call for a thorough inquiry and all those found to have pitched in to the success of the onslaught either through their actions or inactions must face the law. Also, the findings should be released to the public to instil trust in the inquisition.
Nigerians have consistently been experiencing fear and anguish. Most people are afraid of the road these days. Anytime they have to travel, their hearts are always tucked in their mouths. It was no surprise that in 2020, our nation was considered the third most terrorized country in the world for the sixth year in a row. Sadly, and most ignominiously, the authorities have never been perturbed by such unenviable rankings.
Millions of scared Nigerians are wondering what truly is going on. What is happening to our once mighty Nigerian Armed Forces, which were able to keep the nation one during the Civil War between 1967 and 1970, and return peace to war-torn Liberia, Sierra Leone, Sudan, Mali and even Libya? Why can the once dominant military power in Africa no longer defend itself from ordinary armed thugs on motorbikes that have clearly become a new frontier for terrorism?
Could it be the insatiable greed of the leaders? Could it be that top military officers have been compromised or put in jeopardy and are politicking with issues as sensitive as security? Have our soldiers lost the will to fight gallantly? Or are their weapons obsolete and can no longer withstand the sophisticated projectiles of their enemy? Or could it be that the military is no more as potent as it used to be back in the day? Those critical questions deserve responses.
What is most perplexing is that the security of our country is degenerating vis-a-vis the ever-increasing military allocations. Official figures indicate that more than N5trillion of our annual budgets have been spent on the military for our defence in the past six years. Allocations to the police and other security agencies not inclusive. All seems to have gone down the drain without a corresponding output.
These bandits have to be regarded as terrorists and treated as such. Lately, they have become very unsparing and appear a step ahead of our security agents. Therefore, they should be handled ruthlessly. Those behind the attacks must be fished out. The criminals must be properly defined, chased after, and apprehended, including their patrons. This can be accomplished by the military intelligence.
There is no doubt that the NDA attack is a special message that the bandits are sending to Nigerians to prepare for more deadly onslaughts. So, the security agencies must brace up. This is to say the least, very hair-raising, and the Federal Government must sit up to protect, not only the military establishments, but the country in totality. Hence, there is a pressing need for a change in our security architecture.
All patriotic Nigerians should be troubled by the attacks on the NDA and other military establishments as they undermine the sovereignty of the country. As a result, security agencies are expected to grow with renewed fervour to tackle this failing condition in the nation. Insecurity is the biggest challenge every government has to deal with, and should not be treated lightly. Additional tactics must, therefore, be deployed to hammer away terror and banditry in the land.

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Editorial

Slaughter Market Demolition: Kudos To RSG

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On Thursday, September 1, the Government of Rivers State commenced the demolition of Oginigba Slaughter Market along Trans Amadi Industrial Layout in Obio/Akpor Local Government Area. The demolition came exactly one month after the State government permanently shut the slaughter and the market on account of the health hazards it posed to the people and residents of the state as well as the security and social menace it also posed to the people.
Governor NyesomWike maintained that besides the demolished slaughter being a haven for criminal elements, its location at the Trans-Amadi Industrial Area is now considered inappropriate in terms of the State government’s urban renewal policy.
The Governor only said the obvious as the area around the slaughter has become a death and drug zone. The base of the adjoining bridge not only served as a home to all sorts of criminals, the area indeed had become the drug capital of the state.
Indeed, as Governor Wike explained, over the years, the area had come to be identified as a very dangerous place, where large cache of weapons were harboured and used at will to terrorise innocent people.
To have such a slaughter located in the industrial hub of the state definitely runs counter to the urban renewal programme of government and efforts to return Port Harcourt to its Garden City status.
We therefore see no ethnic, religious or other divisive and less altruistic sentiments attached to the decision to relocate the slaughter to a more spacious and modern facility by the State Government.
This is moreso as the State Government has already commenced the construction of a modern abattoir, fitted with state-of-the-art equipment with capacity for the slaughtering of 400 cattle as well as 1,500 goats and sheep per day at Mgbuosimini, Rumueme in Obio/Akpor Local Government Area, where butchers and other related businesses would be accommodated to engage in their activities in a more decent, healthy and conducive environment.
We believe that the action of Government will check the incessant cases of kidnapping, armed robbery, rape and other violent crimes perpetrated daily within the precinct of the Oginigba slaughter market.
Also, with the clearing of the area of shanties that doubled as stalls and criminal covens, residents of Oginigba and commuters through the area will heave a sigh of relief from activities of the men of the underworld that had made life a living hell for them.
We are further gladdened that Governor Wike has said the demolished site would not be left fallow but will house another befitting project that will not only occupy the same land but that will be in tune with the urban renewal effort of the present administration.
The governor has earned the reputation and trust of the people that he keeps to his words as exemplified in the number of projects littered all over the 23 local government areas of the state. That is why The Tide aligns with his assertion that, “Anybody bringing religion or ethnic colouration doesnot mean well for the people of the state and the country. And I am not going to be perturbed; I am not going to be cowed; and also, I am not going to be blackmailed by anybody.”
We believe that no government worth its time in office will stand by and watch miscreants and criminals turn any part of its jurisdiction, let alone a choice area of its capital city, into an enclave where lawlessness reigns, criminals rule and safety and security of lives and property of innocent and law abiding citizens cannot be guaranteed.
We are also encouraged that Governor Wike has taken the war against shanties in the state capital and its environs to every nook and cranny of the state. Evidently, the recent demolition of illegal structures around the Eastern Bypass, Ikoku and other areas within the metropolis and other parts of the state have not only chased criminals away but has tremendously enhanced the beauty of the state capital. We also salute the Governor’s recent order for the demolition of shanties where counterfeit bottled water, carbonated soft drinks and alcoholic beverages are produced side by side some other criminal and illegal activities at Nkpogu area in Port Harcourt.
This is why The Tide salutes the courage, determination and zeal of Governor Wike for standing up to the challenge of ridding the Oginigba area of the Trans Amadi Industrial Layout of the criminal elements, giving the residents a new lease of life and bringing restoration to the area by the plan to site a trademark quality project in keeping with his revolutionary urban renewal agenda.
As in many other areas where successive administrations had failed or feared to tread, Wike deserves nothing but acknowledgement, appreciation, support and encouragement from every well-meaning Rivers indigene and lovers of the state in what he has been able to do at the Oginigba Slaughter Market and other parts of the state as part of a comprehensive effort at identifying and demolishing all criminal hideouts across the state and making the state safe for residents and legitimate business activities.
The Government needs the support of all people and residents of the state. Indeed, only people who do not mean well for the state and its people will complain about efforts to restore sanity to our polity.
All hands of Rivers people and residents of the state should be on deck to realise the vision of Governor Wike to recreate Rivers State as a business destination of choice and a safe, secure and peaceful habitation of note for all law abiding Nigerians and others across the world.

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Editorial

VAT Judgment: FG May Lose N92bn To States

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If the judgement of the Federal High Court asking state governments to collect Value Added Tax (VAT) in their domain is upheld by the Appeal Court, the Federal Inland Revenue Service (FIRS)  will lose about N92 billion which it is expected to earn as cost of collection.
The law setting up the FIRS allows the agency to a percentage, as determined by the National Assembly, as its cost of revenue collection from non-oil taxes before remitting same into the Federation Account.
A report on FIRS official website revealed that the service collects four per cent as cost of collection for non-oil revenue collected.
In the 2016 fiscal period, the FIRS received the sum of N85.99 billion as cost of revenue collection, while it got N100.3 billion as the cost of revenue collection in 2017.
In the 2018 fiscal year, the service got N114.1billion as the cost of revenue collection out of the N5.32 trillion actual revenue it generated for that year.
According to documents obtained from the Budget Office, the FIRS received an estimate of N112 billion and N121 billion as cost of revenue collected in 2019 and 2020 respectively.
With a projected VAT pool of N1.3 trillion in 2021, the FIRS is expected to earn N68 billion in the 2021 fiscal period based on the cost of collection rule.
Based on the Medium-Term Expenditure Framework/Fiscal Strategy Paper 2022-2024, the Federal Government is proposing to generate the sum of N2.3 trillion from VAT in 2022.
With the FIRS entitled to four per cent as cost of collection, it implies that the service is expected to earn N92 billion in 2022 as cost of revenue collection.
A Federal High Court sitting in Port Harcourt, Rivers State, had dismissed an application by the FIRS, seeking to stop the state governments from commencing collection of VAT in the state.
Consequent upon the court ruling last Monday, Governor Nyesom Wike, had directed the Rivers State Revenue Service, to immediately commence collection of VAT from corporate bodies and businesses in the state.
Already, the dispute between the FIRS and Rivers State over the collection of VAT has inspired some more states such as Lagos, Ogun and Akwa Ibom States, to enact laws that will enable them to collect the tax in their states.
It was learnt that stripping the FIRS of the power to collect VAT would reduce the commission the agency will be receiving.
The Executive Chairman of the Federal Inland Revenue Service, Muhammad Nami, had penultimate week, told the Senate Joint Committees working on the Medium Term Expenditure Framework and Fiscal Strategy Paper, that the agency would soon approach the nation’s legislature with a bill to amend the Finance Act 2021.
The amendment, according to Nami, will centre basically on the issue of Stamp Duty and how to drag those transacting businesses on the social media to the tax net.

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