Electricity Operators Failed Nigerians – Lawmakers Declare!
The House of Representatives on Wednesday bemoaned the power gridlock Nigeria is faced with, stating that the power generation companies (GenCos) and the distribution companies (DisCos), have failed Nigerians.
The lawmakers made the declaration at the inaugural Investigative hearing by the Adhoc Committee on Power Sector Reform chaired by the Majority Leader of the house, Rep. Ado Doguwa.
The committee was inaugurated by the Speaker of the House of Representative, Mr Femi Gbajabiamila following a resolution of the House at plenary to investigate and review activities in the power sector.
The Chairman of the Adhoc Committee and Majority Leader of the House of Representative, Ado Doguwa, said that the committee liaised with experts and relevant stakeholders as part of the efforts towards ensuring that it fulfills its commitment of a comprehensive review of all legislation in the power sector.
He said, “There is no gainsaying that the power sector is critical to our nation’s industrialisation and development. Interestingly, we are made to understand that the greatest issues bedeviling the sector after the unbundling of the defunct National Electric Power Authority, NEPA, is the inability to effectively transmit and distribute electricity supply across the country.
“The inability of some of these institutions to meet the covenant obligations they entered into at the time of privatization has reduced the capacity to enable reliable and quality electricity supply for both domestic and commercial use.”
Acknowledging electricity operators’ complaint on electricity tariffs not being cost-reflective, Doguwa said that while Nigerians appreciated the efforts of institutions created from the unbundling of Power Holding Company of Nigeria, particularly the GENCOs which now have the capacity to generate over 10,000 megawatts of electricity, said the power sector needed more funds and effective gas supply system to meet its obligations.
According to him, it has become clearer that the DISCOs and transmission companies needed to do more to improve electricity supply in the country. “Sadly, it appears to the common man that there is hike in electricity tariff without corresponding increase in quantity and quality of electricity supply.
“This is, indeed, the crux of the matter under the mandate of this ad hoc committee,” he added.
The Adhoc committee chairman hinted that part of the FG’s effort to improve the power supply situation brought about by the inability of value chain players to meet their basic obligations, it invited the German government to help the poor state of power in Nigeria.
“This is the situation that crystallised in what is now called the Siemens Intervention deal. lncidentally, the above and many other concerns are the reasons we invited various stakeholders and well-meaning Nigerians to this hearing,” he added.
Earlier, the Speaker House of Representatives, Femi Gbajabiamila, while declaring the hearing open, said the power sector problems had led to poor supply of electricity over the years and dampened the hope of Nigerians for industrialization and overall development the country.
“It is no longer news that despite huge investments in the power sector, little progress may have been made. ‘’
“It is becoming increasingly, worrisome that successive governments have been unable to fix the issue of power in our country, with the current state of electricity supply apparently dampening the hopes of landmark industrialization and national development.
“It is our belief that you shall be equipping the committee with ample information on the status of the power sector, next lines of action and the inter-play between major players in the sector,” Gbajabiamila said.