Editorial
As FG Licenses Power Firms
News of the issuance of licences to 20 independent power producers by the Federal Government recently came as a pleasant surprise and provoked the hope of possible transformation in Nigeria.
According to our source, the Nigerian Electricity Regulatory Commission (NERC) was also finalising a new set of regulations that would allow state governments to generate and distribute electricity in their states by January 2012.
To reassure the independent producers, who are expected to add 6,358 megawatts to the National Grid in 36 months, the Federal Government is said to have issued a special trading licence to the Nigerian Bulk Trading Company Plc to ensure that every megawatt they produced was bought off.
Although more independent producers will be required to enable Nigeria attain the level of electricity needed to jump-start the economy, the formal clearance for the private sector to participate in the provision of this important national asset is most commendable.
Until now, Nigerians have had to contend with an impossible power situation, because the constitution of the Federal Republic forbids private sector involvement. Being placed on the exclusive list, successive governments have failed to find a way out, even when the public power company failed repeatedly to satisfy the power needs of the country.
Because of the epileptic and often zero supply of electricity in the country, the cost of doing business soared and served as the reason many companies closed shop. The effect of this on artisans and society as a whole can never be quantified. The drawback it exacts on the economy is enormous.
That is why this initiative and courage by the present government to take the bull by the horns carries a lot of hope. Indeed, whatever the Goodluck Jonathan administration is doing to by-pass the constitutional blockade in this area should be extended to other areas of national good, as Nigeria cannot continue to retain retrogressive laws in her statute books.
Nigerians cannot forget too soon how the nation became a laughing stock across the world. We cannot forget how the pitiable electricity situation became the major reason for every imaginable failure and how trillions of naira were spent on power with no visible change.
Desirous of taking light to the people, the Federal Government came up with a policy to extend light through the national grid to every local government headquarters. How that has been achieved is there for all to see. But if the current effort is sustained, there would be no reason why every community should not access electricity.
Clearly, Nigeria can grow her electricity capability and attain the level where actual industrialisation can begin in this country. This in turn can reduce unemployment, insecurity and crime as well as give the average Nigerian a sense of pride.
It is, therefore, imperative for every well-meaning Nigerian to support the current effort by the Federal Government to re-oil the wheel of business in Nigeria. More states will need to embark on power programmes to help build the national total to at least 50,000 megawatts in a few years.
The country and indeed every Nigerian stands to benefit from the steady supply of electricity. If for nothing else, the elimination of the use of personal generators and its cost implication on the budget of every family will be a welcome situation. But the effect the use of thousands of generators has on the environment can be very devastating.
Even as government opens the way for private participation, very close supervision will be required to avoid the use of fake and cheap equipment as the consequence can be grave. Recently, the importation and use of substandard cables and transformers caused avoidable fires and destroyed lives and property.
As leaders struggle with environmental challenges across the world, the Federal Government must ensure that those they approved licences for have consideration for this concern. It is important that they use either gas, coal, wind, sun or dams to produce electricity.
Beyond that, government should begin to support researches on alternative fuel as well as encourage the use of solar or wind by individuals or firms to power their operations. At least, the consideration of tax cut can go a long way.
As the Federal Government removes the hurdle to adequate power supply in this country, we can only hope that every Nigerian finds something to do with the provision to the extent it becomes the asset that begets others for this country.
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.
