The Senate on Friday inaugurated a committee to conduct comprehensive investigation into allegations of unwholesome practices in the power sector over the years.
The committee which is headed by Senator Abubakar Kyari (APC Borno North) is charged with the task of looking closely into the entire power value chain (generation, transmission and distribution) with a view to specifically identifying the problems. Senate President, Bukola Saraki, who inaugurated the committee, noted that the task before them was huge and lamented the continued absence of regular supply of electricity despite huge investments in the sector.
The committee chairman, Kyari, in his remark provided detailed explanation into the nature of the investigation to be carried out on the sector. “A close look at the entire power value chain calls for review of our policies in order to obtain optimum performances across board.
The abysmal performance of the generation segment is no longer news in view of the current deteriorating power supply which hovers around 4,600MW for a population of over 170million people, despite the huge resources committed into it. This, when compared with our contemporaries is highly regrettable and no wonder many companies have relocated from the shores of this nation due to increasing cost of production,” he said.
He said further: “The issue of turnaround maintenance, gas pipeline vandalisation and other criminal activities are some of the teething problems bedevilling the sector. We must address it now in order to stem this destructive tide. The committee will beam its searchlight in this direction to put things in proper perspective.
Having realised that the transmission segment is the major linkage between generation and distribution fronts, increasing our capacity in this direction is also very necessary since power produced must be utilised immediately. Deteriorating infrastructure in this segment must be addressed forthwith. The committee attaches great importance to this and would work assiduously at ensuring that all these leakages or slippages are dealt with”.
Kyari also said the committee will work with relevant agencies such as the management of Transmission Company of Nigeria (TCN) to find out reasons behind continued incessant power outages in spite of billions of naira committed to power generation. “It is in line with this objective that the committee would be seeking explanations from the management of Transmission Company of Nigeria (TCN) on the terms of their contract with the Federal Government as it relates to assets inherited, funds injected into the company so far and achievement recorded”, he explained.
On the distribution segment, he said the committee is desirous of ascertaining the level of funds committed into it before privatisation since the segment is currently solely private sector driven. According to him, ‘It calls for vigilance as successor companies are expected to bring in investments to improve the quality of services in term with the agreement. Signals emanating from their activities show that excessive profiteering has been the major determinant of their decisions”.
“It is on record that some of the distribution companies reject power load allocations to reduce cost. Their metering system calls for fundamental review since the emphasis has been on estimated billings and imposition of fixed charges for services not rendered. There have been a lot of unwholesome practices by some of these companies. The committee has to get down to the root of these problems especially where provisions have been made in the past through appropriation, prior to privatisation and funds were not properly utilised. We must find out what has brought us to this sorry state,” he added.
The National Integrated Power Project (NIPP) was designed to fast track the improvement of electricity supply nationwide, hence it was involved in project implementation across the gamut of the power chain. However, some of the power plants built have not been able to contribute meaningfully to power generation through the National Grid.
The resources committed to these projects are enormous and the committee in keeping with its mandate would be seeking for answers in order to chart the way forward. The Federal Ministry of Power, its departments and agencies and other key players within the power sector would be appearing before the committee to provide needed information in order to achieve our laudable objectives,” Kyari declared.
He also said the committee would probe processes that led to the unbundling of the power sector as it relates to the settlement of laid off staff of the defunct Power Holding Company of Nigeria (PHCN). Other areas the committee would look into include the financial capacity of various companies that bought the defunct PHCN.
“The second arm of the committee’s mandate is in respect of the unbundling of the power sector, which was midwifed by the Bureau of Public Enterprises. The committee would be seeking inputs from the establishment on the process of privatisation as it relates to funds committed to the privatisation process, funds generated, the settlement of laid off staff of Power Holding Company of Nigeria (PHCN) and successful bidders’ (companies) financial profile. Also of importance is the need to verify why these companies are already asking for bail out/loan facilities from the Central Bank of Nigeria (CBN),” he said.
He however made it clear that the committee was not out to witch-hunt anybody, but to factually find out the problems bedevilling the sector with a view to finding lasting solutions to them. “This committee is not out to witch-hunt any person or organisation. We are on a fact-finding mission and would pursue our mandate objectively,” he explained.
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