AN University, Ogun state, Ota, Nigeria. COLLEGE

AN OVERVIEW
REPORT ON THE POWER SECTOR REFORM AGENDA IN NIGERIA FROM 1999 TILL DATE.

BADRU
BOLUWATIFE A.

Covenant
University, Ogun state, Ota, Nigeria.

COLLEGE
OF ENGINEERING.

Department
of Electrical and Information Engineering.

ABSTRACT:
Electricity
stability is one of the qualities of a developed country. Nigeria hinders her
development after 19 (1999 – 2018) years of practicing democracy,(the
government of people by the people),other West-African countries such as Ghana
and The Republic of Benin; enjoy 24 hours of power supply which leaves me to
wonder why a great country like Nigeria should have a problem of this sort. This study is assessing the power reform agendas from
Obasanjo’s Administration – 1999 until date, the success of these agendas, the
problems facing it and their probable solutions, the multiple effects on our
society and economy.

OBJECTIVES OF
STUDY

This report was written because of the following objectives:

·       
To review the story and reasons behind the reform acts in
Nigeria.

·       
To examine and illustrate how the reforms have been
implemented

·       
To list out some of the problems facing the growth of the
power sector.

·       
To examine the effect of the problems on our society and
economy.

·       
To recommend ways of ensuring effective power supply and
the growth of the power sector in Nigeria.

 

BACKGROUND TO
THE STUDY.

The history of Nigeria’s power sector goes as far as back as in the year 1896, but the very first electric power supply
company, which was known as the Nigerian Electricity Supply Company, was founded
in the year 1929. The then colonial power created a body to govern the
affairs of the power sector called the Electricity Corporation of Nigeria (ECN)
in the year 1950 the then used generators had a capacity of only about 60 Kilowatts.
The Electricity Corporation of Nigeria (ECN) was then merged with the Nigerian
Dam Authority (NDA) to create a new organization called The National
Electric Power Authority (NEPA) on the 6th of January,1973 initially
the merging began in April 1972. In 1999, power generation was about 1,700
Megawatts at the initial time of the year 2000, power supply decreased speedily
to about 1,500 Megawatts which was a major set-back  for the growing power sector, according to
Wikipedia the total generating capacity of the six major power
stations in Nigeria is about 3,450 MEGAWATTS.

POWER SECTOR
REFORM AGENDA IN PRESIDENT OLUSEGUN OBASANJO’S TENURE (BETWEEN THE YEARS OF 1999
TO 2007)

Chief Olusegun Obasanjo, former president of the republic of Nigeria,
during his term as the then democratically elected president, started reform
agenda, first creating the Electric Power Sector Implementation Committee which
then played a major key, by ensuring the passage of the Electric Power Sector
Reform Act into law in the year 2005, with the main aim of ensuring efficiency
in the power sector, the Nigerian Electricity Regulatory Commission (NERC) was
created, and other objectives as listed below:

1.
Promote competition to stimulate more rapid provision of
of electric power throughout the country; efficiency of the power sector was a
key player to the initiating of the Reform Act of 2005.

2.
Create a legal and regulatory environment called The
Nigerian Electricity Regulatory Commission (NERC) for the sector that
establishes a level playing field, encourage private investment and expertise,
and meet social goals

3.
 Unbundled the
National Electric Power Authority (NEPA) successfully into eighteen other
successor companies;

4.
Privatize the successors to NEPA and encourage them to
undertake an ambitious investment program.

  This ambitious privatization,
turn out to be successful having resulted into 18 successor companies (six
generation companies, eleven distribution companies and one transmission
company).

 

The Nigerian Electricity Regulatory Commission (NERC) :

was established by law during the tenure of Chief Olusegun Obasanjo
as president, It was established to serve as the regulator of the electricity
sector. The Electricity Power Sector Reform Act of 2005 set it up in March in
the year 2005. The major responsibilities of the Nigerian Electricity
Regulatory Commission are:

1.
Regulates the generating, transmitting, distributing and
marketing of electricity in Nigeria and with Nigeria;

2.
Licenses and inspects private and corporate electric
power projects in the country which are 10 MEGAWATTS and above (where 1-10
MEGAWATTS are issued Captive Licenses).

3.
Ensures the Efficiency of power plants, high voltage
transmission system and the distribution system to avoid disappointment.

4.
Ensures occupational health, well-being and safety of
persons involved with electricity in the whole power sector.

5.
Monitors and researches electrical energy and power markets.

6.
Uses common punishments and different means against electrical
energy associations and people who damage NERC controls in the vitality
markets.

7.
Administers bookkeeping and budgetary detailing
directions and lead of controlled electric power organizations.

 

THE POWER REFORM
AGENDA UNDER PRESIDENT UMARU YAR’ADUA (BETWEEN THE YEARS OF 2007 TO 2010)

Umaru Musa Yar’adua was the 13th president of the republic
of Nigeria, during his tenure he had a seven point agenda to the achievement of
a vision 20:2020, in which the Electric power sector was not excluded, the then
President had the following agendas for the power sector of Nigeria:

1.
Maintaining a minimum generation and transmission capacity
of 20,000 MEGAWATTS by 2020.

2.
Minimizing power outages by at least 75% of average
outages in the country.

3.
Minimize transmission and distribution technical losses
around the country.

4.
Increase revenue allocation in PHCN by at least 50%.

5.
To Improve on and maximize Customer Service delivery in
the Distribution and Marketing section of  PHCN.

6.
Improve on Health, Safety and Environmental measures in
generation, transmission and distribution of electricity around the country.   

 

 

THE POWER REFORM
AGENDA UNDER PRESIDENT GOODLUCK EBELE JONATHAN (2010-2015).

Goodluck Ebele Jonathan was the 14th president of the
Republic of Nigeria, under his administration as the president, the Nigerian
Bulk Electricity Trading (NBET) was founded in the year 2010, and the
privatization of 10 out of 11 distribution companies was completed in November
2013, and then the last distribution company was privatized in November 2014.

 

STATEMENT OF
PROBLEM.

Nigeria a country with great potentials, often referred to as the
giant of Africa, with the leading African population and economy but our
country still faces challenges with providing uninterrupted power supply and
problems with supplying even half of the estimated National consumption of
about 10,000 MEGAWATTS – 15,000 MEGAWATTS according to UBI(2012). The challenges
causing our systems epileptic power supply cannot be farfetched from the
problems affecting all other areas in our country, Nigeria.

 

METHODOLOGY

This report paper makes use of data collected by a number of ways
such are Observations and visual analysis, Scholastic articles and publications,
group discussions. This means that this paper is contained with sources, which
can be trusted or revalidated.

SOME OTHER
PROBLEMS FACING THE POWER REFORM AGENDAS IN NIGERIA

1.
Funding

The problem of funding can be said to be self inflicted, because,
Nigeria has lost a lot of investors due to our epileptic growth as a country,
the funds needed for the enlarging of our power sector, Nigeria has proven to
try to source for funds by privatizing, which has been fruitless due to
mismanagement of funds.

2.
Corruption

The corruption in the power sector is as prominent as that in the oil
and gas sector, according to SERAP; the Socio-Economic Rights and
Accountability Project in a report titled “From
Darkness to Darkness: How Nigerians are Paying the Price for Corruption in the
Electricity Sector” presented by Associate Professor Yemi Oke; about 11
trillion naira has been squandered from Obasanjo’s, Yar’uda’s and Jonathan’s
tenure on the electric power sector, it is also estimated that it might reach
20 trillion in the next few years and this doesn’t make any single sense regarding
how minute this power sector has accomplished in just 19 years.

3.
Slow development in generation capacity

The development in generation capacity
contrasted and request between the 80s, from that point forward no critical
change has been made in delivering more electric power in the nation, this
moderate development is terrible for the power division.

 

4.
Slow Government processes

The speed at which acts are passed into law is too slow for speed at
which the power sector needs to grow to meet up with the demand for power.

 

5.
Inadequate skilled manpower

The epileptic growth of Nigeria’s power sector is also due to to the
unavailability of people who have the knowledge of the power sector, There is need
for great emphasis on the need for transmission lines and stations and
construction of additional transmission lines in order to ease transmission of
energy. Illiteracy has it’s scars on the power sector of the nation.

THE EFFECTS ON THE
ECONOMY AND SOCIETY

Nigeria is known as the giant of Africa because of her population,
geographical size, and economy. This title was not self given, it was given due
to the facts, but with the steady crisis in our power sector, the country’s
society and economy has been left to suffer. Some of the effects on the society
and economy are listed below.

1.
CRISIS IN THE ECONOMY:

Due to the epileptic power supply in the country companies, industries
have been left without no choice but to shutdown, the cost of production of power
is too high, leaving people unemployed and causing an economy meltdown.

2.
CRISIS IN THE HEALTH SECTOR:

In a country that does not have access to uninterrupted power supply,
the health sector also suffers, imagine during a surgery operation there is a
power outage. That becomes a disaster. There is no room for research, because
there are organisms which need to be kept at very low temperatures (sub-zero
temperatures) without power this cannot be achieved.

3.
CRISIS IN THE SOCIETY:

The society has suffered due to increase in crime rate due the
economical factor of unemployment, vandalism of electrical utilities due to
high electric tariffs.

 

 

SOLUTIONS TO THIS EPILEPTIC CONDITION IN OUR POWER
SECTOR.

1.
INVESTMENT

Nigeria as a developing country is great with potentials, there are
investment opportunities in Nigeria’s power sector, investment from foreign and
local investment with out any sort of mismanagement by the government, would
help in the privatization of the power sector and also provide the funds for
the enlarging of the epileptic power sector Nigeria has gained a famous name,
but first the government has to prove to be able to prove to be able to manage
her funds.

2.
USE OF ALTERNATIVE ENERGY SOURCES.

Nigeria is well blessed with renewable sources of energy, the hydro
system in Nigeria (Kanji dam) has proven not to be enough for the demands of the
people of Nigeria, Nigeria’s geographical location on the earth gives us an
edge over most other countries, Nigeria is located at the equator, meaning we
are abundant with the direct rays of the Sun, which is the source of solar
energy. If Nigeria can go into finding ways of accessing this source, it could
be the beginning of a turn around for this country, and also exploration and
enlarging of the thermal stations in Nigeria.

3.
 EDUCATION

Education would play a vital role, it seems to me that illiteracy has
created a sense of ignorance, the fight against the corruption in, the need for
skilled man power, which can only be gotten through education. The youths
should also be properly educated on the effect of destroying public utilities
such  as electric poles, transformers,
power generators and so on, instead of worsening our case it can easily be made
better.

 

REFERENCES

·       
AN ASSESSMENT OF THE POWER SECTOR REFORM IN NIGERIA by ALIYU
IDRIS, SANI
MUSTAPHA KURA, MUHAMMED ADAM AHMED, YAKAKA ABBA (2013).

·       
The current and future challenges of electricity market
in Nigeria in the face of deregulation process 
 by Titus Koledoye Olugbenga,
Abdul-Ganiyu A. Jumah and Phillips D. A. (2013).

·       
Power Sector Reforms-Effects on Electric Power Supply
Reliability and Stability in Nigeria by A.U. Adoghe, I.A. Odigwe and S.O.
Igbinovia. (2009).

·       
TERM PAPER ON “THE NIGERIAN ELECTRIC POWER SECTOR” BY OKOYE,
ARINZE EVARISTUS (2014).

·       
An Overview Of Power Sector Laws, Policies And Reforms In
Nigeria by Zubairu Gatugel USMAN, Serkan ABBASOGLU (2014).

·       
http://www.nercng.org/index.php/about/role

·       

Power Supply Failure on Nigeria Economy 1981-2016