When nine months ago President Goodluck Jonathan assumed office and assigned to himself the position of Minister of Power, not many Nigerians were excited. Their skeptism hinged on the obvious reason that in the past, both General Sani Abacha and Chief Olusegun Obasanjo took similar steps during their respective regimes by appropriating to themselves the position of Petroleum Minister, yet no concrete results were achieved in the petroleum sector.

Pundits were of the view that Jonathan’s appropriating the Minister of Power Portfolio to himself would not revive the ailing power sector as they regarded the step as mere government rhetorics.

The power sector was already characterized by very low generation capacity, poor distribution network and a fragile limited transmission network. The multinational oil companies responsible for gas supply to the nation’s power station in joint venture with the Nigerian National Petroleum Corporation (NNPC) were unable to supply gas as the militancy that ravaged oil activities in the oil-rich Niger Delta region led to blowing up of strategic oil and gas pipelines. The situation resulted in the power plants either being shut down while few functional ones were producing far below capacity. The resultant effect was that most Nigerians groped in darkness and scores of companies whose operations were frustrated as a result of high cost of alternative power supply left the country for other West African countries.

Added to the situation was the fact that efforts by Chief Olusegun Obasanjo and Alhaji Musa Yar’Adua to revive the ailing power sector suffered failure inspite of huge funds invested. The much touted 6,000 megawatts targeted by Yar’Adua in 2010 also failed. The question that was in the lips of must Nigerians then was what magic approach would President Jonathan adopt to revive the dying power sector?

However, not deterred by the challenge, Jonathan took some proactive and far-reaching measures to give a breathe of life to the nation’s powerless power sector. He sort for and appointed high brow professionals with enviable record to confront the challenges in the sector. He appointed Prof Bart Nnaji as his Special Adviser on Power and also created some committees on power.

To address the gas supply challenge, the Presidency summoned the management of the multinational oil companies and NNPC and they reached an accord on the strategies to supply adequate gas needed to energise the power stations.

After casting a wide look at the sector, according to Prof. Nnaji, Federal Government came to the realization that Nigeria’s   electricity infrastructure needs are enormous such that government alone cannot meet these needs, hence the urgency to involve the private sector.

In his paper, “The Role of the Private Sector and Structured Financing in Solving Nigeria’s Power Supply Problems”, delivered at an International Power Roundtable organized by the Rivers State House of Assembly Committee on Power last year, the Special Adviser to the President on Power said only about 40% Nigerians have access to electricity supply and that to meet the electricity demand of the nation’ by 2020, distribution network has to grow at the rate of at least 6% each year against the current average growth rate per annum estimated below 1%.

On the large funding required, Prof Nnaji said about $50 billion was required over the next ten years. “Government capital outlays for all capital budget is $5 billion annually meaning that annual funding requirement has outstripped the capacity of government funding”, he regretted.

The Federal Government has no option than to let go its monopoly on electric supply and opened its door widely  for both local and foreign private investors. The government has offered prospective investors in the power sector a five-year tax holiday to serve as an incentive to woo them.

To achieve same goal, Bureau of Public Enterprises (BPE) has commenced road shows in Lagos to enlighten investors on opportunities in the sector. BPE said apart from the five-year tax holiday, another incentive for investors in the sector is the World Bank’s instruments to insure their investment against political risks in the country and assured investors of a cost-reflective tariff system.

Aside the Lagos event, meetings are scheduled to be held with investors in Dubai, United Arab Emirates’ on January 24; London, United Kingdom on January 27; New York, United States on February 1 and Johannesburg, South Africa, on February 11. This came ahead of a February 18 deadline for the expression of interest in the eleven distribution companies, four thermal generating firms and two hydro power stations in Nigeria.

The eleven distribution companies which investors are expected to express their interest in include Port Harcourt Distribution Company Plc, Abuja Electricity Distribution Company Plc, Benin Electricity Distribution Company Plc, Enugu Electricity Distribution Company Plc, Eko Electricity Distribution Company Plc and Ibadan Electricity Distribution Company Plc.

Others are Ikeja Electricity Distribution Company Plc, Jos Electricity Distribution Company Plc, Kaduna Electricity Distribution Company Plc, Kaduna Electricity Distribution Company Plc, Kano Electricity Distribution Company Plc and Yola Electricity Distribution Company Plc.

The four thermal generating stations which investors are expected to show interest are Afam Power Plc, Sapele Power Plc, Ughelli Power Plc and Geregu Power Plc while the two hydro power stations are Kainji Power Plc, including Jebba Power station and Shiroro Power Plc which government intends to give out to private investors under a concession arrangement.

According to Minister of State for Power, Mr Nuhu Wya, the forum in Lagos was organized to showcase numerous opportunities available in Nigeria’s Power sector.

Inspite of the fact that most government efforts are at early stages, the administration of Goodluck Jonathan has already recorded some humble achievements. The meeting between Federal Government and oil multinationals over gas supply has yielded fruits as Nigeria National Petroleum Corporation said it has already surpassed its gas supply obligation to power stations across the country, in line with Federal Government’s aspiration.

The group managing director, Engr Austen Oniwon disclosed this  to newsmen in Abuja and added that NNPC has also taken proactive measures to ensure sufficient gas supply to the new ones under construction upon completion.

At present power generation in the country has risen to 3,800 megawatts. Analysts view this as very impressive considering the fact that generation was below 2,700 mega watts when President Jonathan assumed office. Minister of States for Power, Mr Nuhu Way promised that by the end of this quarter, generation will get to 4,000 megawatts.

It is obvious that when the action plans come to full swing, the nation will hopefully actualize its dream of stable power supply which has eluded it for decades.

Nigerians have attested to the fact that power supply has improved in all parts of the country compared.

However, the agitation by staff of Power Holding Company of Nigeria (PHCN) over their 135% salary areas, casual status of alleged 10,000 workers and other welfare issues need to be addressed considering the fact that they are stakeholders in the reform agenda. Unfortunately, the electricity workers have dragged the government to Abuja High Court over the issue.

Sabotage by electricity workers who connive with criminals to remove power facilities may affect the new effort of the government. Similarly the issue of estimated metering adopted by PHCN workers do not guarantee transparency. Experts are of the view that credit card system be adopted as is the case in Telecommunication sub sector.

Another area that also needs to be addressed is the award of rural electrification projects to portfolio carrying politicians who either abandon such projects or execute them at substandard level.

There is need for the Federal Government to fast track investigations on allegations of fraud which runs into billion over past power projects.

Be it as it may, Goodluck Jonathan has shown that the power challenges which affect socio-economic lives in Nigeria can be tackled as his efforts has renewed hope of Nigerians.

Chris Oluoh