Minister of State for Power, Mr. Goddy Jedy-Agba has said he was incompetent to speak on the speculated secret increment in electricity tariffs.
Speaking to journalists on the sidelines of a public hearing on the bill to amend Electric Power Sector Reform Act, 2005 to Provide the Legal and Institutional Framework for the Implementation and Coordination of Rural Electrification projects, Establishment of the National Power Training Institute and Regulatory provisions to Strengthen the Sector for Efficient Services Delivery and for Related Matters’, held at the instance of House Committee on Power chaired by Hon. Aliyu Magaji, Agba said that all enquires should be channelled to Nigerian Electricity Regulatory Commission (NERC).
The Secretary General of National Union of Electricity Employees (NUEE), Comrade Joe Ajaero had earlier in the hearing condemned the arbitrary increase by NERC
Agba said: “Where is the Chairman NERC? He’s the one that does anything on tariff. I can’t speak on tariff. He’s the chairman of NERC that can speak on tariff.”
Reminded that he was the supervising Minister of NERC and other regulatory agencies, he added “No, no, no, don’t put me in a corner. There’s a chairman responsible for NERC. You want me to tell you what does not apply and you hold me on to that responsibility?”
Earlier in his presentation, Ajaero criticised the injection of about N3trillion into the electricity companies without adequate supply for over 10 years.
He said: “There has not been meaningful improvement or contribution by the current investors 9 years after privatization and 17 years after the Electric Power Sector Reform Act, 2005 was signed into law.
“Our position on privatization is clear, but we are worried whether the amendments are critically based on market private public where we belong now.
“Having tried privatization for 10 years, and we are doing just the amendment of sections of the act and even the review provision in the act which gives provision for the review of the sector after five years and we have written consistently and it has not happened.
“This Act, are we really obeying it? If there is provision for review after five years, and Nigerians are groaning, consistently Nigerians are complaining and we say privatization was based on the fact that government doesn’t have any business in it and government is pumping in money to an individual’s business.
“As we speak now, almost N3trillion has been pumped into the power sector which wasn’t there when it was owned by the government. So, what’s the logic to say government has no business in business and government now has to pump and fund the business of another man. And we need to sit down and see what is working for us.
“That is why we came here to say the laws we made by ourselves, we can pause and look at it and move on. Since nobody has talked about reversion of privatization, but let’s see how it can ft us.
“As we are speaking today, the issue of tariffs is on. If government is pumping in trillions and Nigerians are being compelled to pay, you can see what is happening. The country is suffering.
“If you put two trillion (naira) in the economy of Nigeria today, it will thrive, but it is being pumped into business owned by individuals. Let’s look at. What is the cost benefit analysis of this if we have to take our money, and go and check the records, for about 10 years before privatization, government didn’t put ten percent that money into the sector but it’s putting it now.
“For another 10 years, no increase in generation, no conscious master plan, there is no plan in the country that by next year power plant will come into the system. None for the next two years nor three years for power generation to be constant, at 4,000 Megawatt, and demand will continue to increase because more houses will be built, connect on and on.
“So, if this is reduced to public hearing and no action is taken further on how to make the system work, and Nigeria is still at the bottom of countries suffering power poverty all over the world.
“The normal concept is one million people to one thousand megawatt, and we have a country of 200million people with 4 to 5 thousand Megawatt, nobody is talking about it.
“During the Babangida era there was feasibility study on Mambila which had the capability of giving what we are having in this country today and from that period till now nothing has happened. The same thing with Zungeru.
“The union doesn’t want to bask in the euphoria of the Act/law which does not provide one megawatt to the system. The union doesn’t want to bask in the euphoria of having 19 companies, 19 MD’s and ED’s on 4,000Megawatts.
“The company that was owned by one ED before will now multiply. The multiplication of 19 successor companies did not add one megawatt. So, what’s the honest sense of sweeping in 200 companies knowing the generation is constant.
“The option of government controlling 60percent shares of the facilities as against the present 40% (inclusive of the negotiated 10% equity shareholding for staff in line with the laws setting up the National Council on privatization (NCP) is imminent as the Private Sector Operators have clearly shown lack of capacity to construct a simple Power Plant since the last 9 years.
“Besides, the Federal Government has continued to fund the sector. Available statistics shows that about N400billion was realized from the privatization of the Power sector with the Federal Government investing over one trillion thereafter”.
In his remarks, the House Committee chairman, Hon. Aliyu Magaji disagreed with the Nigerian Governor’s Forum (NGF) over power generation and distribution in the country.
“They think and feel that there is a constitutional provision that gives them the right to form a regulatory agency in the country. NGF also wants each state to generate and distribute power across states of the federation.
“As a committee, we have received their documents, we shall look at it thoroughly and critically and decide the next step to take.
“Our intention as a committee is not to go after anybody but to break the monopoly; the Constitution of the Federal Republic of Nigeria is very clear on power generation and control,” he said.
Similarly, consultant to NGF, Eyo Ekpo, said that states have a right under the law to legislate on electricity issues.
“And the Constitution is quite explicit actually in paragraph 14 of schedule 2 where it is explicitly stated that the states have power to make laws for electricity operations that are conducted within the boundary of their states.
“Of course, like it does not with the federal government which has similar power to make laws for electricity generation and transmission that is across the states, similarly, the Constitution grants to the states the power to make laws for electricity business that is conducted within their states.
“So, to the extent that the chairman has said there is a conflict, I will not say there is a conflict. Rather, there is a clear cut separation. Electricity business that crosses border is quite distinct from electricity business that is conducted entirely within the boundary of a state.
“What we are saying as states is that the moment a state makes its own law for electricity to be conducted within its borders, it has the sole and exclusive responsibility for that aspect alone,” he said.