The electricity crisis in Nigeria has defied various attempts at solving the problem and giving Nigerians the benefits of enjoying stable electricity and a good quality of life for more than half a century. It is no secret that the nations power infrastructures were abandoned for several decades, by successive governments notwithstanding the exponential growth in population, until the civilian administration of Chief Olu Obasanjo instituted series of reforms aimed at not only addressing the low capacity power generation, but also improve electricity delivery to the people.
However, despite the huge investments in billions of U.S. dollars to date, the efforts have not yielded the desired results or returns on the investments. Successive administrations since 1999 have continued the privatizations of National Electric Power Authority (NEPA), Power Holding Company of Nigeria (PHCN) including their unbundling into power generation, power distribution and power transmission entities along with the creation of the National Electric Regulatory Council (NERC) and the bulk power purchasing entity to name a few, with really nothing to show by way of tangible improvements in outcome. Essentially the initial privatization In a nutshell the privatization efforts which started in 1999 has failed to date, because no matter how well intentioned the efforts were at the onset, it did not fundamentally address the root cause of failures in the industry, which aside from the systemic corruption, patronage and lack of transparency and unethical conducts was the monopoly the parent company and succeeding entities have enjoyed to date in their various operating regions.
The recent changes to our existing laws that allow each state to invest, develop and transmit their own electricity now will in the long run help to improve power service delivery in Nigeria if they are in direct competition with existing players in the industry.
While one is not opposed to implementing segregated power delivery and competitive pricing regime for now as a stop gap measure based on customer needs, but the long-term solutions at improving overall electricity service delivery and transforming the industry includes the following:
The importance of adequate electricity in the life of any nation cannot be overemphasized, given the additional and indirect tax burden it imposes on businesses and families through their purchases of generators, gasoline and diesel to meet their power supply needs. While the nation has wasted billions of dollars to date, implementing most or all of the aforementioned steps will move Nigeria closer to meeting her electricity needs. Finally, it is critical for the federal government, the National Assembly and state governments to collaborate further and pass required legislations suggested in the above proposed reforms in order to transform our nation and improve the quality of life of our people.
Osaikhuiwu is a U.S. based service delivery manager, a certified project manager with expertise in process improvements, change management and elimination of waste, fraud and abuse.
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