As follow up to some issues raised on a Bill seeking to alter the Electric Power Sector Reform Act of 2005, the House of Representatives Committee on Power, last week at the prompting of Speaker Femi Gbajabiamila, held a public hearing, during which more controversial issues emanated. JOSHUA EGBODO writes
What necessitated the latest engagement
The Hon. Alyiu Magaji-led Power Committee of the House of Representatives had way back on the 14th December, 2021 conducted a public hearing on a Bill for an Act to alter the Nigeria Electric Power Sector Reform Act, 2005, with report of the committee already before the House for consideration and passage. The bill was intended to amend Electric Power Sector Reform Act, 2005, to provide the legal and institutional framework for the implementation and coordination of Rural Electrification Projects, establish the National Power Training Institute and Regulatory provisions to strengthen the sector for efficient services delivery and for related matters.
But while the process was planned to be concluded, the Nigeria Governors Forum (NGF) kicked. In his remarks while welcoming stakeholders last Thursday, Hon. Magaji explained that the public hearing was to address the concerns raised by the NGF on the directive of the Speaker of the House of Representatives, Hon. Femi Gbajabiamila, before the consideration of the Committee’s report, which was ready.
In kicking against the Bill, the NGF specifically pointed out a provision empowering the Minister of Power to head all the relevant agencies as they relate to the sector, as it argued that the matter under consideration was not an exclusive preserve of the federal government. It further cited some states, which were either coming together or angularly working out power generation options that suits them.
Then, the secret tariff hike, N3 trillion intervention allegations
During the engagement, however, protest of the NGF seemingly took the back seat, as fresh issues were thrown up. For instance, it was alleged that the Nigeria Electricity Regulatory Commission (NERC) had secretly given nod to upward review of electricity tariffs by the distribution companies (DISCOs).
There was also the questionable Three trillion naira alleged intervention by the federal government to operators in the power sector.
The Organised Labour, through the National Union of Electricity Employees (NUEE), kicked against the injected fund by the Federal Government into privatised electricity companies, which it said were owned by individuals, and without commensurate increase in power generation over the past 10 years.
Secretary General of the union, Comrade Joe Ajaero argued that the privatisation has further compounded the economic woes of Nigerians, as according to him, the policy was designed to fail from the onset, adding that “there has not been meaningful improvement or contribution by the current investors nine years after privatization and 17 years after the Electric Power Sector Reform Act, 2005 was signed into law”.
The drama
The engagement was to turn dramatic when Minister of State for Power, Mr. Goddy Jedy-Agba during a chat with journalists, who wanted him to respond to some of the issues raised by NUEE, especially, on arbitrary increase of electricity tariff, denied knowledge of indiscriminate electricity tariff imposed by Nigerian Electricity Regulatory Commission (NERC) on consumers.
“Where is the Chairman NERC? He’s the one that do anything on tariff. I can’t speak on tariff. It’s the chairman of NERC that can speak on tariff”, he said as he directed the NERC boss attention to be drawn for him. Reminded that he’s the Minister supervising the activities of NERC and other regulatory agencies, Mr. Jedy-Agba said: “No, no, no, don’t put me in a corner. There’s a chairman responsible for NERC. You want me to tell you what does not apply and you hold me on to that responsibility?
“The Chairman NERC is here, let me bring him here. So when you ask me, he will answer it. It’s the chairman NERC that is responsible for tariff increase. It’s okay”, insisted. When one of the Minister’s aides approached chairman of NERC, he declined and hurriedly left the venue.
Beyond the hearing
Ajaero insisted that there was need to review the entire privatisation exercise, saying: “Our position on privatisation is clear, but we are worried whether thee amendments are critically based on market private public where we belong now. Having tried privatisation for 10 years, and we are doing just the amendment of sections of the Act and even the review provision in the Act which gives provision for the review of the sector after five years, and we have written consistently and it has not happened.
“This Act, are we really obeying it? If there is provision for review after five years, and Nigerians are groaning, consistently Nigerians are complaining and we say privatisation was based on the fact that government doesn’t have any business in it and government is pumping in money to an individual’s business.
“As we speak now, almost N3trillion has been pumped into the power sector which wasn’t there when it was owned by the government. So what’s the logic to say government has no business in business and government now has to pump and fund the business of another man. And we need to sit down and see what is working for us. That is why we came here to say the laws we made by ourselves, we can pause and look at it and move on. Since nobody has to talk about reversion of privatization, but let’s see how it can ft us.
“As we are speaking today, the issue of tariffs is on, if government is pumping in trillions and Nigerians are being compelled to pay, you can see what is happening, the country is suffering. If you put two trillion (naira) in the economy of Nigeria today it will thrive, but it is being pumped into business owned by individuals. Let’s look at what is the cost benefit analysis of this if we have to take our money, and go and check the records, for about 10 years before privatization, government didn’t put 10 percent that money into the sector but it’s putting it now.
“For another 10 years, no increase in generation, no conscious master plan, there is no plan in the country that by next year power plant will come into the system. None for the next two years nor three years for power generation to be constant, at 4,000 Megawatts, and demand will continue to increase because more houses will be built, connect on and on.
“So if this is reduced to public hearing and no action is taken further on how to make the system work, and Nigeria is still at the bottom of countries suffering power and poverty all over the world. The normal concept is one million people to one thousand Megawatts, and we have a country of 200 million people with four to five thousand Megawatts, nobody is talking about it.
“During the Babangida era, there was feasibility study on Mambila which had the capability of giving what we are having in this country today and from that period till now nothing has happened. The same thing with Zungeru. The union (NUEE) doesn’t want to bask in the euphoria of the Act or law which does not provide one Megawatt to the system. The union doesn’t want to bask in the euphoria of having 19 companies, 19 MD’s and ED’s on 4,000 Megawatts.
“The company that was owned by one ED before will now multiply. The multiplication of 19 successor companies did not add one Megawatt. So what’s the honest sense of sweeping in 200 companies knowing the generation is not constant?”
Time to criminalise estimated billing?
It wouldn’t be the first time that calls were made across all divides to stop estimated billing for electricity consumers. At a time, the incumbent Speaker of the House introduced a bill, seeking stipulate a time frame for metre applications to be honoured, or such consumers stop paying bills. NUEE also called for criminalisation of estimated billing by any of the DISCOs.
The next move
Chairman of the committee, Hon. Aliyu Magaji cautioned the NGF over beliefs on the power of states to generate and distribute electricity in the country. “They (governors) think and feel that there is a constitutional provision that gives them the right to form a regulatory agency in the country. NGF also wants each state to generate and distribute power across states of the federation.
“As a committee, we have received their documents, we shall look at it thoroughly and critically and decide the next step to take”, he said, leaving Nigerians without a clear picture of the future move.
