Weight down by many issues, many people and institutions, especially still doubt the future of the nation’s power sector. In this interview with TOLA AKINMUTIMI, the Chairman of the Electric Power Foundation of Nigeria, Engineer Otis Anyaeji painted a vivid picture of development, problems and prospect of the sector in the coming years.
As a key player in the power sector, how would describe the implementation of President Goodluck Jonathan’s Roadmap on power?
Well, as far as I am concerned, the government is doing much more than what the roadmap contains, because the Roadmap is not really just what power sector roadmap. It is power sector reform roadmap. Even at that, the government is doing more than that and the private sector is doing more than that already. That is why we have always said that there must be a power sector development roadmap that goes over far and above the power sector reform and addresses all other issues of development of the sector. As I said earlier, if you watch the government activities they are doing more than what is prescribed in the roadmap. They have bold initiative in the coal-fired power generation. They have bold initiatives in the hydro power area like the Mambila, the Zungeru and some others. They are also doing some things in renewable energy, small hydros, wind power, solar and so on. These are already going on, but they are not part of any roadmap. So, there is need to work on another roadmap to embrace all these and in fact, look into the future up to another 25 years and work in such a way also that they make it mandatory for any government that comes to follow such roadmap.
Sir, from what you have said so far, you feel the government is on the right track in the power generation drive. In concrete terms, how would you describe the achievements of the agenda so far?
There is a lot of achievements. When the NIPP started in 2005, there were just like seven power stations in the grid. You had Afam, you had Sapele steam plant, you had Delta turbine plant and Egbim steam plan. You had Shiroro, you had Jebba hydro and Kainji hydro. That is among medium and large scale plants, just about seven of them. But since the NIPP programme started, you have had Olorunsogo Phase 1 which came on and then Phase 2. You also had Omotosho Phase 1 come on and then Phase 2 as well as Sapele gas turbine power plant completed under NIPP and commissioned and in fact various units of it are on the grid. You have also had the Alaoji gas turbine power plant completed and you have Geregu nearing completion with 400 megawatts. That is already seven and you also have Ehobvo mechanically completed and then we are expecting that towards the end of the year or early next year we would have Barain, Omoku and Egbeme also completed. When you add those three, you are talking of 11 new power stations coming up. I think we have put in more power stations than we had in the system previously and these are verifiable projects. Of course the issue could arise that people may say you have all these things yet the actual power supply has not improved.
It takes time to get these things finalised. Incidentally, the infrastructure for power supply is responsive in a peculiar way that other infrastructure may not really be liable. I mean that if for example we are doing a road project, say we want to do a road from Abuja to Lokoja, if they clear the route, if the terrain is firm enough, motor vehicles can start using it after clearing of the bush. It does not have to wait until you do the final surfacing. But you cannot do that with electricity. In electricity you have to finish everything, the entire project before you can switch on. That is it. So, we have to wait for that mandatory period to get the benefits of the investments. From what has been done so far by the BPE, do you feel the entities will be able to provide this critical end of the chain, that is, fixing the transmission and distribution components of the reform agenda in the power sector?
In transmission, the government is appointing a management contractor that is going to administer both the systems and market operations for the transmission system and I even understand that they have been given some down payment. So, it is being expected that within few days or so the railing will be in place and with that kind of development, definitely it means government is serious on that. The BPE has in fact for many years been very affirmative about the privatisation of the sector. They have tried a few times to do just that but I am sure it is not for want of trying or a will on their part that we have not really realised that. I think if there are things that are hampering that, it is a thing that is above them. But observing what they are doing now, I am confident that they are going to get these successor companies privatised shortly.
What are your member-companies really doing to add-value to the current drive to improve the performance of the power sector, particularly the NIPP programme?
Oh definitely our member-companies are the consultants, the contractors, the manufacturers that are providing services and goods to the NIPP programme. By that I mean these are the people that design and engineer the various projects and they also construct and commission the projects and they manufacture the items of equipment and machinery that are incorporated on these facilities. Based on your industry experience, do you feel the current regime of tariff on imported electrical products is good enough to protect indigenous manufacturers of these cables, switches and other inputs? Well, you know looking at the question of tariffs gives us the impression that we, perhaps, have planned that all these inputs must continue to be imported. I hold a contrary view. It is not all that needed to be imported. Some, yes, can be imported but quite a lot of the things we import we should be able to manufacture them in Nigeria and so there might be some other charges or tariffs to talk about but not tariffs of electrical equipment but perhaps tariffs of certain raw materials which we don’t have or certain components which we are not able to produce that will be brought into the country. So, that is how I think I want us to begin to look at that whole picture because from the NIPP experience a good deal of the equipment that has been imported into the country can well be made here and the timeframe of setting up facilities to make such type of equipment is not so long. That is, say within 24 months if the government gives all the support that will be needed the type of funding and facilities you need to manufacture of electrical equipment and materials can be established in Nigeria.
Do you feel the cost of business will local companies’, including your members’ products compete favourably in the subregional and global markets?
Of course, I will give you an example. There is a company called Innoson. They manufacture or assemble buses and the prices they are charging their buses prices rank among the cheapest in the market and they are based in Nnewi. So, if we say the electric power situation is not favourable for manufacturing, they are also still subject to such disadvantages but still manage to make vehicles that are cheaper than the ones that are imported, despite the existing customs regime. So, the same strategies could be applied to those who are interested in manufacturing electrical equipment. Of course, there are cable makers in Nigeria, some of them in Lagos, some of them in the East, who are surviving and I hope you realise that the general assessment of their products confirm that what they make is better than what is imported. So, that tells us that there is hope for a lot of contributions in terms of those manufacturing local equipment in the country.
How do you assess the involvement of foreign investors, including General Electric in power sector development so far?
Well, we really need all good hands on deck. It should not only be General Electric, it should not only be Siemens, it should be all those who have anything to contribute and who are ready to invest here in order to create job opportunities for our people and factor in local inputs into the manufacturing process in various products so that there will be truly Nigerian industry in terms of manufacturing electrical equipment in Nigeria. The use of such locally manufactured equipment and machinery and execution of the projects that are being done in the country.
Given past experiences on capital projects in the country, how do you think the current Power sector reform can be implemented and consolidated upon in the years ahead?
This can be worked on by a change of attitude on the part of the Executive and Legislature. Hitherto, the idea especially within some of the political parties is that the Legislature must support the Executive whether the Executive is right or wrong. But this is entirely wrong. The Legislature if you want to reduce their functions to one sentence is established to check and if possible, block the Executives, especially when they are deviating from measures and activities that ought to promote the greatest good among the greatest number of the people.
That is what the Legislature is set up for. So, there has to be a change whereby the Legislature should see itself as a means for a separate arm of government that is menant to check and balance the Executive not to collaborate with it. It may work with the Executive but that will be on the basis of principles and acting on behalf of the people and not on behalf of themselves that what the Executive is doing is good and that is the basis they are supporting them and when the Executive is doing what is not right they should block them. So, with that definitely any government that comes will have to follow the plan or programmes that have been endorsed by the Legislature, a plan that has been put into proper perspective and is supported by legislation. The Legislature has powers to make sure that such plans are followed.
Source: National Mirror
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