BUHARI GOVT: Eyeing Lagos Template To Solve Power Crisis.

By Dapo Akinrefon

OVER the years, the issue of power generation has been Nigeria’s biggest problem. Since the advent of the Fourth Republic in 1999, power has been in the front burner, without an end to the problem. Past administrations proffered solutions to tackling the hydra in the power sector but have virtually failed in this regard. Interestingly, politicians have had to dwell more on providing solutions to this during electioneering campaigns.

LIGHT-of-BOften times, the power issue takes centre stage during electioneering campaigns but not much has been achieved over the years in this regard. Where we are: Unbundling NEPA: Besides, prior to the enactment of the Electric Power Sector Reform (EPSR) Act 2005, the Federal Government of Nigeria (FGN) was responsible for policy formulation, regulation, operation, and investment in the Nigerian power sector. Regulation of the sector was done through the Federal Ministry of Power (FMP) with operations through the National Electric Power Authority (NEPA).
To address the twin issues of NEPA’s poor operational and financial performance, the FGN amended the then prevailing laws (Electricity and NEPA Acts) in 1998 to remove NEPA’s monopoly and encourage private sector participation. The amendments, however, were not far-reaching. This informed FGN of the need to undertake holistic policy, legal and regulatory reforms.
The National Electric Power Policy, 2001, specifies the reform agenda, while EPSRA provides the legal basis for the unbundling of NEPA, the formation of successor companies and the privatisation of the latter. EPSRA also provides for the development of a competitive electricity market, the establishment of a dedicated regulatory body and the establishment of a rural electrification agency.
Consequently, FGN established the Power Holding Company of Nigeria (PHCN – the initial holding company) and subsequently unbundled it into eighteen (18) successor companies. Strategically, the objectives of the reform include: the transfer of management and financing of SC operations to the organised private sector; the establishment of an independent and effective regulatory commission to oversee and monitor the industry; and focusing the FGN on policy formulation and long-term development of the industry.
This step was perceived by many to lead to increased access to electricity services; improved efficiency, affordability, reliability and quality of services; and greater investment into the sector to stimulate economic growth. However, nothing much seems to have been achieved in this sector. And Jonathan tried: Though the President Goodluck Jonathan administration worked round the clock to the solve the epileptic power supply, its successes were limited.
Only recently, President Jonathan inaugurated the rehabilitated Unit 6 and the overhauled Unit 4 of the Egbin Power Station in Lagos, which effectively added 240 megawatts to the national grid and also restored the power plant to its full capacity of 1,320 megawatts. With the completion of the projects, the country’s power generation capacity now stands at 5,500 megawatts for the first time in history but actual generation was 3,800 megawatts as a result of the recent acts of vandalism on the Escravos-Lagos pipeline network, which supplies gas to some power stations.
Powerstations
Speaking at the official inauguration of Units 4 and 6 at Egbin, the president said the initiative was a major milestone in the government’s power reform programme. But not many Nigerians are impressed with this development.

Tinubu’s ENRON: During Bola Tinubu’s administration,the governor was able to pressurise the federal government into approving the take-off of the multi-million project by ENRON International Energy Corporation.
Tinubu had boasted that “before long, Lagosians will have at least 270 Megawatts dedicated to Lagos State in addition to the Statutory allocation from NEPA that will make sure that at any given time, between 80 per cent to 90 percent of our electricity problems are solved.” “Now with the take-off of ENRON, Lagos State stands to benefit from this project,” Tinubu noted.
Perhaps Tinubu’s dream is becoming a reality. The Tinubu administration did all that was humanly possible in order to achieve the ENRON breakthrough while the deliberations with the federal government lasted. Tinubu then asserted: “What we have achieved now is our own big giant step in the moon.”
He explained that the reason why he has been excited by this breakthrough lies in the fact that “we made a promise to the electorates in Lagos State that ours is a commitment to the infrastructural development that will lead to economic growth, poverty alleviation, independence of small scale industries, where research and development, and the hopes and aspirations of big and small professionals will flourish. This is the beginning of that joy and we are going to achieve it.”
Lagos IPP: However, the Lagos State government has tried to take the bull by the horns in solving the power problem. The commencement and installations of power plants in strategic places across the state has gone a long way in reducing the epileptic power problem.
Powergeneration
But one snag for the Lagos government has always been that of distribution. This is as a result of the fact that only the Federal government has the franchise of power generation and distribution. To ensure under-served commercial and industrial districts get access to reliable power supply via the use of Independent Power Projects, the Lagos State Government successfully commenced operations in three power plants – AES Barge, Akute Power, Island Power Project and one transformer factory – El Sewedy transformer factory by means of Public Private Partnership (PPP).
There are plans under-way to develop multiple IPPs across the state, currently the Alausa Power Project and the Island Power Project Expansion are currently in development. Governor Babatunde Fashola said it also showed that the money to improve the Nigerian economy is in the country, “since we don’t need the World Bank to come and do this for us.”
The governor noted that, “let no one say that he has no money to deliver power for the entire country. This is the limit to which the law allows us to do, but we have done this to make a statement that power can be generated. So, when they come with lies that power is impossible, you can tell them that we have power here; we make it possible.”

The Lagos template
Already, the Lagos State government has recorded a feat as the state secretariat, Alausa became the first in the country to run its own power. Fashola, recently flagged off 10.6 Megawatts, MW, Alausa Power Project, with the capacity to power the entire state Secretariat, Alausa and Obafemi Awolowo Way. The project was executed through Public Private Partnership, PPP, with Oando Gas and Fidelity Bank Plc.
The Alausa IPP is expected to boost social welfare component for the public officers as the plant has an impact in improving the work environment, the work quality, the work ethics and improved efficiency as well as improve power supply generally in the state. The power project, will supply power to 62 buildings and 160 departments within the secretariat to bring an end to the usual epileptic power supply in the area.
Expressing his reservations over the inability of state governments to generate its own power, Fashola said, “it is bad enough that we don’t generate our own electricity, the public power is 12. 75k per kilowatts per hour, but we are generating our power at sometimes four or five times more than that.” According to him,”in Magodo for example, they spend N8million a day in the whole estate on diesel, when it should have cost them just about N2 million public power.

Even Lekki spends about N12m a day, when it should have cost them about N3million a day. So these are the numbers we are seeing. If you buy energy saving bulbs, it may be more costly but you would save seven times more over a longer period when using it.”The governor, who re-iterated that the solution to unemployment and jobs creation, improved economic situation lies in made in Nigeria goods, and expressed delight that the Alausa IPP is another made-in-Nigeria project, delivered by a Nigerian government with two Nigerian companies using largely Nigerian personnel to solve a Nigerian problem.
He disclosed that, according to records, the project would be a substitute for over 120 generators which were being used at the Secretariat at the last count. The state government is not resting on its oars, as it intends to focus, within the next 12 months, on public power, schools, hospitals, street-lights, courtrooms, religious institutions, among others.
Fresh IPPs are scheduled to also commence in; Lekki to power the Lekki Water Works, Ikeja GRA that will power the General Hospital, High Court, the Police Command and the Ikeja Water Works expected to be fully completed in 2016. “We already have a transformer manufacturing plant and so we are going ahead to ensure that when the power is ultimately here, the components to bring it to peoples’ home will be available.

What we hear before is that well, there is generation but there is no gas, so we don’t want to get to that when the talk would be there is electricity but there is no transformers, so we are already ahead of the curve and that factory will also be manufacturing meters in the plant,” the governor said. The Group Managing Director and Chief Executive Officer of Oando Oil, Mr Wale Tinubu, explained that Alausa IPP will run primarily on gas and reduces pollution that emanates from diesel generation that was hitherto in use across the secretariat.

Enhancingsecurity
He added that the Alausa Secretariat campus and Awolowo Road Street light, will also be powered by the power plant, thus enhancing the security of the citizens at night, adding that the strong commitment shown by the Lagos State government before the commencement of the project ensured that the negotiations did not flounder. On her part, the General Manager, Lagos State Electricity Board, Mrs. Damilola Ogunbiyi, said that the IPP would save government about N30 million.
APC’s solution to power difficulty

During the 2015 electioneering campaign, the All Progressives Congress, APC, told Nigerians its plan for steady power when voted into power. During one of its campaigns, Vice President-elect, Prof. Yemi Osinbajo, said an APC-led Federal Government can provide steady power supply by installing Independent Power Projects in strategic parts of the country. Perhaps this informed Osinbajo’s recent visit to Lagos state to study the perceived success of the state government’s IPPs.
As a way of using the Lagos state IPP template to tackle power supply across the country, Osinbajo said already, IPPs were being used to provide steady electricity in courts and hospitals across Lagos State and this could be expanded. According to him, “what we must understand is that the Federal Government has privatised power distribution and generation, not transmission and we feel transmission should be privatised as well.

Proper gasinfrastructure
We don’t have power today because generating plants can’t get gas supply and this is also largely because of the bad pipes. If we wait until we can set up proper gas infrastructure, it can take 10 to 15 years before we can get steady power supply.” He was quick to add that “we have decided to decentralise power.” “For example, in Lagos we have IPPs in Marina which generates 10 megawatts and it powers hospitals and courts. We also have in Ikeja. They do not have problems of gas supply.

The IPPs are directly connected to the place we want it to power. If we can mobilise our trade groups in certain areas, we can provide 24-hour power for them. Also, we can then provide for local governments. In Lagos for instance, the state government already knows the power needs of each local government so we can provide IPPs as well,” he said.
Osinbajo further said the price of gas must also be deregulated so that more private companies could invest in the sector and increase power supply. With his victory at the just conducted polls, the President-elect, Maj-Gen Muhammudu Buhari (retd), has an herculean task of ensuring the power problem in the country is resolved soon.

Source: Vanguard Nigeria