Opinion
The Oracle: NEPA, PHCN DISCOs: How Nigerians Pay for Darkness (Pt. 2)
Published
3 years agoon
By
Eric
By Mike Ozekhome
INTRODUCTION
In part one, we traced the history and trajectory of ECN, NEPA or PHCN. It has been further broken down into DISCOS. It appears as if the more reforms we bring in, the more moribund it becomes. There is virtually no light. Yet, we pay for darkness. Where you argue or demure, you are immediately disconnected. We have no voice at all.
PRESENT CHALLENGES IN THE POWER SECTOR
The challenges in the power sector are gargantuan. Let us discuss source of them.
GENERATION
Nigeria has an estimated population of 216.1 million people as at June 18, 2022 by UN projection. Nigeria is located on the Gulf of Guinea, with dense rainforest and rare primate habitats. She has 19 dams and is one of the countries with the highest gas reserves which is estimated at 206.53 trillion cubic fact. This was discovered accidently while Nigeria was searching for oil. In the United States, it was reported that natural gas was the largest source about 40% of U.S. electricity generation in the year 2020, while coal constitutes 19% of the source of electricity. Nigeria also holds 379 million tons (MMst) of proven coal reserves as of 2016, ranking 44th in the world.
As at 2016, Nigeria holds 37,070 billion barrels of proven oil reserves, ranking 10th in the world. She also has great potential to develop its solar power energy due to its high amount of sunlight. These are means of generating electricity. Thus, when I stated, at the introduction to this article, that Nigeria’s potential for growth was unquantifiable, I was not mincing words. Nigeria’s installed electricity capacity stands at 18000 megawatts.
GLOBAL ANALYSIS OF ELECTRICITY GENERATION
From the data derived from the official website of the International Trade Administration, Nigeria’s power generation is mostly thermal and hydro with installed capacity of about 12,522 megawatts. Out of this meager capacity of hers, she generates just 5000 megawatts. In the Punch’s report of 21st June, 2018, the Executive Director, Association of Nigerian Electricity Distributors, Mr. Sunday Oduntan, noted that Nigeria must generate at least 180,000 megawatts of electricity to have adequate and stable power supply. He noted, also, that South Africa, with 60.7 million people, generates 48,000 megawatts and is working to increase the generation to 79,000MW. Electricity production in South Africa is expected to rise to 19300.00 Gigawatt – hour.
In terms of human and natural resources, Nigeria is among the countries lagging behind in terms of power generation capacity. Egypt, for example, with a population of about 106.107 million people, has power generation capacity of 59,53 megawatts. In a magazine published by Egypt today (14th April, 2021), it was reported that Egypt was able to jump 68 ranks in terms of electricity production from the 145th rank to the 77th, and that the success was attributed to public investments directed at upgrade and expansion in the sector. According to USAID (U.S. Agency for International Development), Ghana, with a population of 32.37 million, currently has over 5,300 MW of installed generation capacity. Rwanda, on the other hand, has a population of about 13.6 million. According to USAID, Rwanda currently has only about 218 MW of installed generation capacity. Tunisia, with a population of 12.046 million people, has a current power production capacity of 5,653 megawatts (MW) installed in 25 power plants.
The United Kingdom has a population of 67.44 million (2021). From statistics gotten from the Department for Business, Energy and Industrial Strategy (2021), installed capacity for electricity generation in the UK increased gradually between 1996 and 2018, from 73.6 GW to 101.2 GW. However, in 2019 and 2020, total capacity fell following the closure of several large coal-fired plants, and the mix of plants shifted towards renewable different technologies. Overall, there has been a decline in conventional steam, outweighed initially by an increase in combined cycle gas turbines (CCGT) and more recently by an increase in renewable. CCGT capacity increased almost threefold over the period 1996-2012, from 12.7 GW to 35.5 GW. In 2020, the electricity sector‘s grid supply came from 55% low-carbon power (including 24.8% from wind, 17.2% nuclear power, 4.4% solar, 1.6% hydroelectricity, 6.5% biomass), 36.1% fossil fuelled power (almost all from natural gas), and 8.4% imports. Renewable power is showing strong growth, while fossil fuel generator use in general and coal use in particular is shrinking, with historically dominant coal generators now mainly being run in winter due to pollution and costs, and contributed just 1.6% of the supply in 2020. In 2020, the U.S. net electricity generation stood at approximately four petawatt hours, more than double the generation reported half a century earlier. The North American country is the second largest electricity producer worldwide, ranking only behind China. While its annual electricity output has remained fairly stable in the past decade. America with a population of 332,403,650 currently generates 1,143,757 Megawatts of electricity. This is about 1.14 billion kilowatts. Compare this with Nigeria’s pitiation 5000 megawatts with a staggering population of 216.1 million people.
TRANSMISSION AND DISTRIBUTION
The challenge in the Nigerian power sector is not only seen in the area of generation but also in transmission. There have been serial reports of grid collapse in Nigeria. The Guardian (13th of May, 2021) had reported another incident of national grid collapse; and noted that the development made it the 29th time in the last three years that the country had experienced grid collapse. On 23rd August, 2021, Punch reported another case of national grid collapse for the second time in less than a month, worsening the blackout being experienced by households and businesses in parts of Nigeria. According to Nairametrics, data gotten from the year 2020 from the Transmission Company of Nigeria (TCN), from 2013 when the electricity sector privatization was completed to 2020, showed that the grid failed 84 times and partially collapsed 43 times. Nigeria is literally hanging out there in darkness.
EXORBITANT PRICES
The continuous rise in the prices of electricity tariffs and the unaffordable nature of electricity units have been an issue moaned by many Nigerians in their homes and businesses. This is worsened by the fact that the amount of usage by these households and businesses do not seem to adequately equate the prices paid to these power holding companies for the provision of electricity. Most Nigerians cannot afford this with their non-living wage. Businesses are relocating to neighbouring countries on a yearly basis. Nigeria now even imports from companies now domiciled in these neighbouring countries, but which used to be in Nigeria. It is so pitiable.
FACTIONALIZATION OF UNIONS
Workers are forever threatened with downsizing, rightsizing, rationalising and other terms that connote retrenchment of workers. This characterized the privatization regime. The aim of privatization was actually to maximise profits by reducing cost as much as possible through plugging of leakages and retrenchment of workers. The idea of divide and rule thus came in. This negates the idea of gainful employment and the provision of jobs by any responsible government; or at least create a conducive environment for such privatisation created poverty and has impacted negatively the unemployed in the society, while enriching the foreign actors, rather than the Nigerian economy as initially planned.
CORRUPTION AND CAPITALIST EXPLOITATION
The idea behind privatization of electricity in Nigeria was originally largely to de-monopolise the power sector and diversify ownership from the Nigerian Government. This was however not a full diversification, since the government through some companies still maintained shares in the power sector. This has unfortunately given way to many corrupt practices by staff of these power holding organisations. Because the main aim of capitalism is profit, these companies are not affected by the negative effects their companies wreak on the society. They are basically interested in how much profits can be generated by their companies. These is why these companies are continuously increase tariff rates and also reduce the quality of their supply so as to achieve such grotesque profits at the expense of the members of the society who become their victims.
STRIKES AND CONTINUOUS THREATS ON SUBSIDY
The Nigerian government holds some quantum of shares in the power holding companies, these companies are viewed more as public companies, rather than as private companies. This has caused more harm than good to the Nigerian power sector. This has led to increase in strikes and threats of further strikes. The result is that the power holding companies have held Nigerian governments and the Nigerian people in a strangulating. They do not allow for effective growth in the power sector. Constant strikes on grounds of fighting issues of subsidy and subsidy related-matters has also caused a deficit in the power sector and brought it to its knees.
PRIVATIZATION OF THE POWER SECTOR IN NIGERIA
Major issues within the Nigerian power sector, principally concerning power outages and unreliable service, had forced the Nigerian government to take radical steps. It enacted the Electric Power Sector Reform Act, 2005, which called for unbundling the national power utility company into a series of 18 successor companies: six generation companies, 12 distribution companies covering all 36 Nigerian states, and a national power transmission company. The Act stipulated that ownership of these companies be granted to the Bureau of Public Enterprises (BPE), the privatization arm of the federal government; and the Ministry of Finance Incorporated. This unbundling paved the way for an ambitious privatization programme to be carried out by the Bureau of Public Enterprises in Nigeria. In 2007, the Bureau of Public Enterprises hired CPCS Transcom Limited, an international consulting firm based in Ottawa, Ontario, Canada, give expert advice about the best ways to move forward with the privatization of the country’s then 11 distribution companies and the 6 generation companies. In 2010, CPCS was consulted again to provide advice on the Nigerian government’s privatization program.
Following the privatization process initiated on the 30th of September, 2013, by the Goodluck Jonathan regime, PHCN ceased to exist. In its stead, the Nigerian Electricity Regulatory Commission (NERC) was birthed. This independent regulatory agency, as provided in the Electric Power Sector Reform Act, 2005, was tasked with monitoring and regulating the Nigerian electricity industry, with issuing licences to market participants, and with ensuring compliance with market rules and operating guidelines.
THOUGHT FOR THE WEEK
“We cannot be mere consumers of good governance, we must be participants; we must be co-creators”. (Rohini Nilekani).
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Very jittery about the coalition, and it should rightly feel so.
If coordinated properly, they have the capacity and numbers to upstage APC, from national politics.
If they manage to do it, it will be well-deserved.
The neo-liberal economic policies embarked on by BAT has shrunk the economy brutally.
The country has shrunk far more economically after removing fuel subsidy, particularly when electricity is still non-existent, raising production costs infinitely and lowering spending, making it a double-whammy for millions.
Electricity costs have been double even when its generation, distribution and transmission hasn’t improved significantly blunting claims of Nigerians needing to pay humongous amounts if they want electricity, even if several examples exist of Countries in the Global South with far more reasonable electricity charges with even more access to electricity.
Let’s now add devaluation, that skyrocketed costs of goods in an import-dependent economy and ran more millions into penury.
War-level inflation, rising costs of living, food prices off the ceiling.
And what they have been told is that, that is the only way to rejig the economy.
The supposed billions stolen by subsidy thieves hasn’t been retrieved, and perpetrators jailed.
Customs officials that permit fuel smuggling that justified subsidy removal weren’t arrested and jailed.
Yet, the people who weren’t responsible for these lapses were told to stomach these lapses and adjust to “SAP” tightening adjustments.
Minimum wage of 70k has still not been paid, what was done was a cynical 40k wage award across levels. This after fuel went from 185 to over 900 naira in some places, and skyrocketing prices of goods quarter-by-quarter.
In 2000, When Olusegun Obasanjo raised minimum wage from 250naira to 5500 naira, and Federal civil servants pay raised from 3500 to 7500, it triggered the phrase “GBEMU AREMU” (Aremu’s Largesse) that raised national income and subsequent spending across several sectors.
Teachers would buy Opel cars prompting applause when it was announced on assembly grounds, and several civil servants started building houses leading to a construction boom.
Federal contractors are being owed despite government claims of record revenues, and gaslighting statements of more allocations being accrued to Governors.
Let us now go back to pet peeves about allocation of projects.
Gilbert Chagoury’s HITECH got awarded the “Lagos-Calabar coastal road”
The same Chagoury’s HITECH got the Sokoto-Badagry road.
The same HITECH was awarded Benin-Akure-Ilesha road.
Abuja-Kaduna-Kano road was taken from Julius Berger and handed to HITECH.
Chagoury’s ITB also got $700m port revamp contract.
BAT says Alex Zingman who got the $250m contract to bring in tractors from Belarus is his friend.
When major contracts are given to closet accolytes in a family&friends scheme, how will the economy grow, when fairness is out of the window.
Multi-billion dollar contracts are being handed out attimes with no bidding to preferred contractors whom the President openly calls “His Partner” (Chagoury).
This is the samee Chagoury who returned $66million to Switzerland to get his conviction expunged.
He paid $300million to Nigeria’s government to protect him from prosecution for his role in helping General Sani Abacha loot the country by transferring National funds abroad.
Abacha’s special friend tha helped launder money abroad is BAT’s advisor and confidante whose companies get no-bidding contracts and people are to keep quiet.
Yet, APC stalwarts will attempt to gaslight people by saying “Relax, economy is getting better, BAT knows what he is doing”, even when diaspora Nigerians who come into the country exchange their Pounds and USD into Naira, and still cannot cope with the skyrocketing prices.
People are being told to sacrifice, while they see the Presidency buy yatch, new vehicles and Presidential Jet.
If it’s the ADC that will come and trigger the APC, we are all in for it.
Even if several of the characters in ADC have been in government for years. Distributed stealing is much better for the economy than singular appropriation.
Perhaps, when Nigerians change governments over and over, politicians will sit tight and apportion some efforts towards working for masses and treat people with some level of respect.
And the coalition should watch out for Aregbesola, the main reason that has given the coalition impetus. He is not a man who gives half-measures. And he is coming for revenge.
There is no fight as interesting to watch as tight buddies turn into implacable foes.
Knowing him, Aregbesola would likely have control of Lagos ADC, where he would bring in many elements of APC currently disaffected and angry into the party.
Being more conservative than even Tinubu, he would avoid trap of filling positions with non-Yorubas.
What would ensue in Lagos, with an Aregbesola-controlled ADC will be a fight for the ages, people who knew “Senator Bola Ahmed Tinubu” before he became “Asiwaju” or “Jagaban” would be brought into the fray.
Imagine for example, Muiz Banire, as Governorship candidate. Prominent families, in Lagos will be split down the middle, as Aregbesola comes for the jugular.
And woe betide APC, if the North refuses to vote for them and APC loses the Presidential election.
It makes the task of dismantling even Lagos from Tinubu’s hold after 28 years easier.
Tinubu’s current yes-men gaslighting people about economy should continue telling people all is well, even when economy squeezes people out.
In 2 years, they might lose everything. Both Federal and beloved Lagos.
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By Ayo Oyoze Baje
“When a leader encourages the culture of impunity, the society is lost and it makes the work harder for the rest of us”
– Prof. Wole Soyinka
One of the bitter facts about striking the delicate balance between criminality and justice is that if the perpetrators of sundry crimes are either treated with kid gloves, or left to walk our streets as free men, some others would view such as the best way to go. Unfortunately, from the persisting challenge of insecurity through the reckless squandering of public funds by some favoured political helmsmen to budget padding, crass impunity has remained the middle name of our democratic dispensation, sad to note.
For instance, recently Human rights lawyer, Femi Falana (SAN), criticized both the Federal and Benue State Governments for consistently failing to prosecute suspects arrested in connection with violent attacks that have resulted in the killing spree in Benue State. In the statement issued under the platform of the Alliance on Surviving COVID-19 and Beyond (ASCAB), of which he is the Chairman Falana lamented that although hundreds of suspects have been arrested over the years for crimes ranging from illegal possession of firearms to mass killings and kidnapping, most of them are never charged.
To him President Bola Tinubu’s recent directive to the Nigeria Police Force to arrest and prosecute all those involved in the latest wave of violence in the state is potentially symbolic.He pointed out that previous arrests had not led to convictions or justice for victims. Falana also berated the Chief of Defence Staff, General Christopher Musa, for alleging that residents of Yelwata community provided shelter for the killers. He described the statement as an attempt to shift blame onto victims instead of addressing the systemic failures of security and governance.
Such a sordid situation triggers the burning questions. Is the life of the voiceless victims not important to humanity in general and the country in particular? Are the perpetrators of the scary insecurity ravaging the country that has sent hundreds of thousands of innocent souls to their early graves more valued than that of the defenceless citizens? What is so difficult in identifying the sponsors, who arm them to kill fellow citizens and bring them to justice?
It is a similar situation when it comes to profligacy with regards to the way and manner some politicians squander public funds. Only recently there was disagreement between the National Assembly and the BudgIT over the issue of budget padding to the stupendous amount of N6.93 trillion in the 2025 federal government’s budget. Yet, some Nigerian contractors have remained unpaid for about a year! And there are allegations about some of them awarded contracts without going through the fiscal policy relating to the budget. That runs against Section 5 (b) of the Public Procurement Act. That is impunity, is it not? Yes, it is. But the pain in all of these is that the culture of impunity in places high and low has been with us for eons.
As yours truly highlighted through an opinion essay back in April 2017 all the hue and cry that trailed the probe into the $10billion(or is it $16 billion) sleaze in the power sector years back has long suffered from what physicists call the Doppler Effect, or died a Nigerian “natural death”. And as one warned back then that “was not the first time and it may not likely be the last unless government musters the much needed political will to bring the perpetrators to book.” But is the situation any better today? The answer is patently obvious.
These days we read about the humungous amounts, even in dollars found stashed in the private vaults of some former public office holders. From local government council chairmen to senators and governors, it is a recurring ugly decimal of national shame. But some hungry and disenfranchised poor citizens caught for stealing fowls and goats are either sent behind bars or hounded to hell!
It speaks volume about how those in government interpret words such as accountability, probity and transparency. It demeans us all as a people that those vested with the sacred trust of holding the destiny of men and materials of a country as vast as Nigeria are allowed to go Scot-free after committing various heinous crimes against the state. No one talks about the $12 billion Gulf War windfall again because some people are above the law. Not a few former state governors were once paraded by the EFCC as suspected to have siphoned state funds for self-aggrandizement.But years later some of them have the audacity to want to go back to their former offices, or find their ways to the hallowed Red chamber to make laws for you and yours truly. All these happen because of the insidious culture of impunity
As it was between 2015-2023, one is not surprised, therefore, that some corrupt politicians who defected from the PDP to the ruling APC are surreptitiously enjoying some ignoble immunity. It has happened before. All of these make a mockery of our judiciary process. Many of the proceedings are centuries away from the Information Technology and Communication(ICT) age as obsolete type – writers are still used for recording purpose. Series of laughable injunctions take over the well scripted drama of the absurd, characterized by the shameless display of former politicians suspected of grievous financial crimes, raising their hands in bravado as their paid praise worshippers fan their battered and bruised ego.
It is little of a surprise therefore, that virtually all notable institutions of government; from ministries to departments and agencies have in the past years of our democratic experience been probed for one fraud or the other. But after years of turning their searchlight to unveil the rattling skeletons in their cupboards, nothing meaningful comes out of it.
To several of those accused of such financial misdemeanor Nigeria is one big, slumbering elephant to be milked dry. And the easiest way to have a piece of the national cake is to get elected or appointed into any plum political post. But for how long can we go on this way? Not much longer, I dare say.
Corruption, which is a debasement of set moral values and a violation of standard professional ethics is like a two – edged sword that cuts both the victim and the misguided beneficiary. When those who have short changed the system are not brought to speedy justice it emboldens others with similar criminal inclinations to commit worse crimes.
It is responsible, as in the Nigerian politico-economic situation for the countless pot hole – riddled roads, the epileptic power supply, pervasive preventable diseases and mass youth employment that have turned into daylight monsters haunting us all.
As one admonished the then President Muhammadu Buhari-led administration in 2017 so I do now to the President Bola Tinubu-led government. To shame all critics he must muster the political will, backed with the enabling laws by the National Assembly to transform both the EFCC and the ICPC into well toothed bulldogs that bark and bite. And no one, no matter his political persuasion, must be above the rule of law. As Isabel Allende aptly stated: ” Nothing is as dangerous as power with impunity”.
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Opinion
Skills Acquisition: Way Forward for Nigeria’s Educational Development
Published
4 weeks agoon
June 19, 2025By
Eric
By Ayo Oyoze Baje
“The future belongs to those who learn more skills and combine them in creative ways” – Robert Greene
As concerned Nigerians keep deliberating on the best way to navigate the twists and turns inherent in our education delivery system, if yours truly has his way secondary school students should be spending three days of each week for theoretical knowledge and two for practical skills development. These include skills such as tailoring/fashion design, hair dressing and carpentry. Others include building construction, painting, domestic farming, singing, acting, oratory and comedy.
This has become more expedient because in 2023, Nigeria ranked 100th out of 100 countries in Coursera’s Global Skills Report in terms of skill proficiency. Incidentally, the country also ranked low within the Sub-Saharan Africa, placed 12th out of 13 countries.In fact, other African nations such as Botswana and Cameroon outperformed Nigeria in the same report. This was an indication of a significant skills gap in the country. But recent indicators suggest an increase performance that should be built on. For instance, Nigeria showed the fourth-highest year-on-year growth rate for Professional Certificates enrollments on Coursera. This clearly suggests a growing awareness and participation in skills development initiatives which should be built on.
For instance, the unemployment rate in Nigeria stands at about 4.84% in 2025, according to Statista. com. This translates to an estimated 5.74 million people who are unemployed. Similarly, the youth unemployment rate is around 7.50% according to Trading Economics.
Given the current global influence of information technology, the expanding impact of Artificial intelligence ( AI ) and the soaring influence of climate change. Others include the increasing need to ride the freaky waves of economic survival, and the stifling space for employment, not only in Nigeria but across the globe. Yet, the country is abundantly blessed with rare talents in different fields of human endeavour.
Mention names such as Silas Adekunle, known for his robotics expertise and the world’s first intelligent gaming robot or Riya Karumanchi, who invented a device to assist visually impaired individuals the importance of skills acquisition in the development of the talents of our youth gradually dawns on us.
It is a similar scenario when the name of
Hassan and Hussaini Muhammad, who created a way to convert petrol, water, salt, and alum into hydrogen cooking gas crop up. And out there there are other young Nigerian inventors such as Khalifa Aminu (FM transmitter), Muazzam Sani (remote-controlled car), and the team behind the smart walkway light and automatic irrigation. The importance of skills acquisition cannot therefore, be over emphasized.
.
Put in its simple terms, skills acquisition is crucial for Nigerian students academic development, because it enhances their employability, as well as boosts entrepreneurship. In fact, it contributes to overall national development. According to experts on educational development it empowers students to be self-reliant, reduces poverty and unemployment, and also provides them with a global perspective.
The impact and import of students’s skills acquisition is amply deployed in Bells University of Technology, Ota, Ogun state. There, students are exposed to the practical aspect of whatever course they are studying such that seasoned professionals are invited to deliver the practical aspect of their theoretical knowledge.Such is the impact that engineering students have become problem solvers. They have constructed pavements, fences, designed and built solid infrastructure.
Furthermore, the Centre for Agricultural Technology and Entrepreneurial Studies (CATES) has come up as a key initiative at the same university. As a noble cause it was established to foster practical, solution-oriented approaches to agricultural and entrepreneurial development within the university and the wider community. The skills promoting aspect of it is that CATES focuses on areas such as poultry technology, aquaculture, cassava farming, and mushroom culture. It also operates a vegetable farm and a plantain farm on campus. All these explain why graduates of the citadel of knowledge become self employed, with several of them kick starting the process right from the University as undergraduates. All these boost their financial independence while they contribute to the Gross Domestic Product, GDP.
Skills acquisition therefore,
increases employability, more so in today’s competitive job market. Having relevant skills makes students more attractive to employers. These include skills such as digital literacy, communication, and problem-solving, which are highly valued across various industries.Entrepreneurship programs teach them how to start and manage their own businesses. This eventually, leads to economic growth and improved living standards with appreciable Human Development Index, HDI. By equipping students with practical skills, skill acquisition programs can assist to lift individuals and families out of the terrifying trap of poverty and ultimately reduce the unemployment rate for the country.
From the global perspective, many skills are transferable across borders. This is one good lesson learnt from the COVID-19 pandemic. Nigerian students can latch on it to participate in the global economy through remote work or international collaborations. It also fosters confidence in students, assist them to adapt to the global socio-economic dynamics,while instilling a sense of accomplishment in them, thereby contributing to overall personal growth.
Of great significance, is that
a skilled workforce is essential for the nation’s economic growth and technological advancement. Overall, the skill acquisition programs contribute to building a more productive and innovative society. So Nigeria work on the report which highlighted specific skill areas where it lags, especially technology and data science.
Nigeria should also learn from countries that stand out for their high levels of skill acquisition and development. These include Northern European nations such as Finland, Norway, and Sweden which consistently rank high, along with Switzerland, Singapore, and Germany. These countries often prioritize education, training, and creating opportunities for their populations to acquire and utilize a wide range of skills. As rightly noted by Malcolm X: ” Education is our passport to the future, for tomorrow belongs to those who prepare for it today”.
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