Fashola expresses hope that Nigerians will soon experience steady power supply through the implementation of the power sector recovery programme

By Anayo Ezugwu

Despite the incessant power outage now in the country,  the federal government has assured Nigerians that its efforts to ensure steady power supply will soon yield results. Babatunde Fashola, minister of power, works and housing, who gave the assurance, intends to achieve this through the power sector recovery programme put in place by the ministry and other stakeholders in the power sector.

Fashola, at the 25th Monthly Power Sector meeting in Uyo, said the federal government had secured the World Bank approval for $486 million Transmission Company of Nigeria transmission expansion funding. “Progress is being made with the same bank for the Rural Electrification and Distribution Expansion Funding.

“Clearly, our power initiative is well underway, some jobs are manifesting and the promise of steady power is real. If we persevere, I am certain that we will witness uninterrupted power, which is the final destination of our journey,” he said.

The minister said the Power Sector Recovery Programme, PSRP, policies, actions and programmes in the sector were meant to solve the power sector problems. He said the policies, programmes and actions were delivering results. “One of the results is the regulation that will democratise access to meters for power sector customers.

“We have reached a 7,000 Megawatts (MW) Generation Capacity and have a 5,000 MW Distribution Capacity, what is newsworthy is that in the last month, we have met with Manufacturers Association of Nigeria, MAN, Electricity Distribution Companies, Discos, and Power Generating companies, Gencos.

“In many parts of the country connected to the grid, citizens’ feedback is positive, even though all the problems are not solved. Citizens acknowledge more power in dry weather, reduced hours of running their generators and reduction in fuel (diesel and petrol) purchase to power generators.”

The minister, however, described solar energy as cleaner and more efficient source of power, emphasising that in many states, solar power is being accepted and used.

Fashola also alleged that some Gencos were planning to disrupt power supply to score political gains. He said a report to that effect is already with him. “Let me say it very clearly to some of these people that I get reports on some of the clandestine meetings they hold with the view to disrupt power supply for political capital.”

He also said the power firms have dragged the federal government to court over its regulation, stressing that the suit coming at the time that there is increase in power supply is an indication of the intention of the plaintiff to blackmail the government and hold the citizenry hostage.

Fashola, however, promised to defend Federal Government’s position in the law court, where he has lived all his life.

The power firms had sued the federal government for discriminatory treatment against them and the gas suppliers. They claimed that the government’s was scheming to give more gas to Azura Power West Africa Limited and Accugas Limited to disadvantage of the entire power sector.

The representatives of the Gencos in the suit at the Federal High Court, Abuja, are Mainstream Energy Solutions Limited, Transcorp Power Limited, Egbin Power Plc, and Northsouth Power Limited.

Fashola, however, noted that the power firms only tabled their complaints to the ministry and dragged the government to the court a week after that, insisting that the time was not sufficient for the government to look into their grievances and react. He urged them to be fair in good conscience to the court of law and court of public opinion about the rival firms that they complained of. The minister submitted that the other new company has a partial risk guarantee in its contract which the plaintiffs do not possess.

Fashola tasked the plaintiff to be ready to tell the citizens how they felt first when other groups went to court to stop the implementation of tariffs approved by NERC. “I was their supporter then asking Nigerians to bear with the tariff. You must explain to the court of public opinion whether they went to court before this government approved for them the N701billion payment assurance guarantee which enables them to receive payment on their monthly power bills.

“When they are in that court, they must also tell the court that they are indebted to gas companies and to their banks because they were receiving less than 50 per cent of their bills. And in doing so, they must tell the court that they now receive 80 per cent of their bills from less than 50 per cent because the Buhari’s government intervened with the assurance guarantee.

“They must also tell the court when they get there or while they are there that before they were paid in naira from money that was received from international customers, we sell power to Niger Republic, Chad, Niger and Togo, under an international arrangement. They must tell the court that they are now receiving payments in dollars instead of naira, which used to be the case.

“They must also tell the courts when they get there and also tell the court of public opinion that that there is a new Gencos getting paid 100 per cent whiles they are getting 80 per cent. And they must explain to the court that the reason is that that new Genco has a partial risk guarantee in its contract and they do not. They were the contract they signed.”

– Mar. 17, 2018 @ 4:20 GMT |