Editorial
Power Distribution Time To Break PHCN Monopoly
Disturbed by the apparent inability of the Power Holding Company of Nigeria (PHCN) to effectively evacuate power from its gas turbines and distribute same to end users, Rivers State Governor, Rt. Hon Chibuike Rotimi Amaechi recently threatened to shut such under-utilised plants to avoid further waste.
The governor’s frustration was borne out of the state’s desire to address the very epileptic electricity distribution needed to enhance industrial development in the state, but which is repeatedly hampered by existing enactments that allow the PHCN unfettered monopoly.
Under the arrangement, while states and other corporate citizens may generate electricity, through the many Independent Power Plant (IPP) projects, they are by law inhibited from distributing power to end users for whom such is meant.
For instance, the Rivers IPP projects, alone have the Trans-Amadi (1&2), and the Omoku Gas turbines, which together should generate 300 megawatts installed capacity, but are forced to generating about 250 megawatts due to evacuation hiccups on the part of PHCN. Like Rivers, Shell Petroleum Development Company (SPDC) also recently commissioned its 650 megawatts Afam VI, the third in the area, intended for improved power distribution in the state.
Intrinsically, should both Shell and the Rivers State Government enjoy the legal backing to both evacuate and distribute power to end users, the state would, without doubt, be the first to celebrate uninterrupted power supply for a considerably long period.
This is because, the state is estimated to need between 250 and 300 megawatts to achieve such uninterrupted supply which the volume generated by both the state and Shell can comfortably cover and even supply excess to the national grid.
In essence, every effort made by corporate citizens and state governments will be a huge waste unless the monopoly enjoyed by the obviously ill-equipped PHCN is broken to enshrine healthy competition in power generation and distribution.
This is why The Tide sympathises with the Rivers State Government over the frustration of watching its people suffer epileptic electricity supply in the midst of plenty.
Even so, the governor’s threat to shut under–utilised turbines, we think, is not the right option as it would further negatively affect the level of service.
Instead, the Rivers State government should join forces with other stakeholders and push for the breaking of the monopoly now being enjoyed by PHCN for the good of the citizenry.
We say so because, many industrial and manufacturing concerns are either relocating or folding up on account of the huge bills incurred on private plants and outrageous charges imposed by PHCN for services haphazardly rendered or never rendered at all.
Further shutting running turbines, we fear, will drastically reduce the present quota from the national grid and plunge parts of the state into even more debilitating power outage nightmare.
Even so, The Tide insists that the federal government should, without any further delay, break the satanic monopoly, if Nigeria is to be counted among the comity of nations keen on industrial and rapid infrastructural growth and development.
That electricity generation is one major pillar on which rests the transformation and growth of any economy is merely stating the obvious. This, perhaps, underscores President Goodluck Jonathan’s resolve to personally superintend the power sector.
It is on this count that The Tide is optimistic that the right things will be done, key among which is the empowerment of states and other willing stakeholder partners to generate, evacuate and distribute power rather than encumbering an inept PHCN with such vital national demand.
We are encouraged by the success achieved in the communication sector with the introduction of cell-phones and GSM service providers, and the benefits such healthy competition has provided the citizenry.
Unless those benefits are extended to the power generation and distribution sub-sectors, all the talk on improved electricity services would remain what they have always been – lip service, nothing more.
Editorial
Making Rivers’ Seaports Work
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
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