by Roland Ogbonnaya

20-02-05 The Manufacturers Association of Nigeria (MAN) cried out that the cost of goods might go up by as much as 20 % as a result of high cost of powering the factories by alternative sources since NEPA appears to have gone to sleep in the last few months. Manufacturers are not alone in this problem as homes cannot get stable power for domestic use even as NEPA seems not to have the capacity to cope.
About four months ago when the National Electric Power Authority (NEPA) plunged the nation into another fresh round of darkness, having failed to supply power the authorities and Nigerian public thought the problem would just go away within a period of time. But that has not been the case. In some areas there is no power supply at all without any genuine explanation from the authority.

Reports from different parts of the country speak of a sharp decline in public power supply in over four months as businesses and Nigerians come under intense heat. Most businesses in the last fourpast months have had to run their generators full blast leading to additional cost as price of diesel oil has gone up. This has resulted in increases in the cost of doing business in Nigeria.
Individuals who have the wherewithal have had to buy fuel several times more than in the past to run their small generators. Those without the means have had to suffer the intense heat that pervades the country. In some parts of the country, there is report of the growing fear that meningitis or cholera may break out if the situation is not arrested.

A recent World Bank report said, "in Nigeria, potentially Africa's largest market, 97 % of firms surveyed said infrastructure problems were among the top three constraints to doing business. If Nigeria reduced its energy costs to the level of Morocco's, it would save Nigerian firms the equivalent of 16 % of labour costs, which could then be reinvested in creating more jobs or improving compensation." Most foreign investors are not interested in doing business in Nigeria because of the high cost of energy.
However, officials of NEPA and the Ministry of Mines and Power have continued to offer various excuses concerning the continuous instability in power supply in the country even when such excuses border on incompetence, laziness and share lack of foresight that have characterised some public companies over the years.

According to the Managing Director of NEPA, Mr Joseph Makoju the pervasive blackout in the country was as a result of power generation shortages experienced by the corporation. He said that less than 3,000 MW of electric power was being generated throughout the country. The NEPA boss further explained that "the water levels in many rivers used for power generation across the country are currently very low."
Another reason he cited for the interruptions in power supply was the on-going maintenance at the Egbin Thermal Power Station in Lagos. NEPA's CEO further said that present power outages were made worse because of the non-completion of a new power station, which should have been commissioned last June. Makoju spoke over four months ago and since then the power generation and supply have degenerated instead of improving.

Some critics of the organization have gone further to argue that some of the excuses Makoju is giving are not tenable in Nigeria 21st century. They argued that either Makoju has lost focus and the spirit to fight or he is incapable of halting the drift.
From Umungasi, Aba in Abia State, to Gombe in Gombe State, to NNPC Road and environs in Ejigbo area of Lagos State, the explanations of Makoju does not make any meaning to residents who have suffered untold hardship in a country that could conveniently provide them this single service they pay for whether provided or not. The services of the authority can be as a punishment for some communities or residents. For example for the past four years, life for the residents of NNPC Road, Ejigbo, Lagos has been hell as NEPA hardly supply them with electricity and when it does, the supply is erratic.

Recently, in a bid to placate embittered Nigerians for the unprecedented power outages, NEPA, Ikeja Zone, announced that it was slashing 50 % waiver on outstanding debts owed by customers.
"This offer lasts till January 31, 2005. Cash offices within the zone will be opened on weekends, that is Saturday and Sunday for payment of the outstanding debt," it stated.
The COO of the Zone, Mr Reuben Okeke, an engineer had earlier told that consumers owed NEPA over N8 bn and less government debt is about N 6 bn, he said. Okeke said NEPA was planning to reinforce electricity distribution network in the Ikeja area through an execution of projects costing the authority a total of N 809.2 mm.

Some consumers however, scuffed at the NEPA gesture, saying that electricity bills demanded NEPA did not really represent the true cost.
"Consumers have been getting crazy bills that do not represent actual consumption to be paid for," Ifeoma Anuforo a resident in Ikeja zone said. "Young, agile and committed fresh engineers have been deployed to new service stations. Our resolve is to ensure that every group of 5,000 customers has a neighbourhood NEPA office that is fully equipped to handle all customer problems with direct support and supervision from the undertaking and business managers, NEPA has said."

But some of the customers said the problem does not stop at having multiple offices and staff, as some of them staff lack commitment and discipline to attend to customers. For example, a customer has his line disconnected for allegedly owing some bills. But after settling the bill as well as the reconnection fee, Mr Chime Adimora, who resides on NNPC Road, Ejigbo, Lagos said NEPA was unable to send its staff to reconnect him after three days of settling his bills.
In Satellite Town area of Lagos, a man who simply identified himself as Pastor, was visibly bitter at the ineptitude exhibited by some NEPA officials.
"What kind of country is this? This is sheer injustice. We cannot continue this way. Nigeria belongs to all of us and NEPA is no exception. If this is how all other NEPA station officials behave, then we are actually in a big problem in this country," the aggrieved customer said.

The story is almost the same everywhere and that has accounted for the vandalisation of the NEPA's property by angry youths in the country like it happened in Satellite Town last January.
"Another serious aspect of the whole thing is that after paying the compulsory re-connection fee of N 2,000, the officials who are to re-connect your lines have to be paid another fee of N 1,500 on the ground that the N 2,000 re-connection fee was for the government except you want to remain in perpetual darkness. And when you complain, the senior officials in the office will tell you to your face to encourage the boys,” the Pastor explained with frustration.

Few years ago when the privatisation wind was blowing across parastatals and public companies in the country, many Nigerians argued that the only way customers could get the best out of NEPA was for the corporation to be unbundled through privatisation. In 2002, government came up with plans to break up the monopoly of the electricity authority in preparation for its sale as part of the country's privatisation programme. According to the privatisation plan, which has got the approval of the National Assembly through the passage of a bill to that effect, NEPA will be split into six power generation companies, one transmission and eleven distribution companies.
Many Nigerians believe that the splitting of NEPA is the only solution to stable power generation and supply in the country. They made reference to the telecommunication sector that has witnessed tremendous growth and expansion after it was privatised and opened for other independent players.

In 2001 the World Bank expressed optimism in privatisation of Nigeria's telecommunication and energy sectors and approved loans worth $ 304 mm (£ 200 mm) for Nigeria, most of which was to be used to help the country's fledgling privatisation programme of the telecommunication and power. Three years after, NEPA has not been unbundled sectors as its services continue to deteriorate despite huge sums of money that are annually sunk into the sector.
For example in 2000, the government spent about N 4.3 bn ($ 42 mm) to extend electricity supplies to some rural areas. The then chairman of the technical committee of NEPA and now the Minister of Power and Steel, Senator Liyel Imoke, said the project was part of President Olusegun Obasanjo's plans to tackle poverty in the country.

Imoke said government had concluded plans to increase power generation by NEPA to meet the expansion plan. Over the years such funds have been claimed to be sunk in NEPA without appreciable improvement in its services. Writing in its editorial, a national newspaper said NEPA is only trying to find an excuse for its legendary inefficiency.
"For instance, the authority told us that before the unfortunate incident last December,it was able to stabilize power supply with peak generation above 3,000 MW daily with minimal load-shedding from December 30, last year. From December 30, 2004 to January 3, 2005 when there was disruption to gas supply, was only a question of three days. So, there is nothing to celebrate about minimal load shedding within the period. Under our very nose, Ghana, another African country has been celebrating years of uninterrupted power supply".

Apart from inefficiency and corruption within the rank and file of NEPA officials, there are other stumbling blocks on the part of Nigerians to enjoy stable electricity in the country. Imoke, late last year made it clear that NEPA would require about N 450 bn (EUR 2.8 bn) in, the next five years "in order to meet the nations demand and sustainability." The Minister stopped short of telling Nigerians that there is no stability in electricity supply for now.
Imoke, who gave a breakdown of NEPA's needs in Abuja, said where transmission alone would account for N 245 bn(EUR 1.51 bn), generation was expected to gulp N 115 bn (EUR 713 mm) and distribution, N 90 bn (EUR 558 mm) during the next five years. The presentation on NEPA's Multi Year Tariff Order (MYTO) was presided over by President Olusegun Obasanjo, while Vice President Atiku Abubakar and the new Minister appointed to assist in the Ministry of Power and Steel, Professor Babalola Borishade, among others, were in attendance.

The minister disclosed that NEPA was already working out an arrangement for a Pakistani firm to build a 1,000 MW thermal plant in Anambra State in two phases. Although gas is available in Anambra State it is yet to be processed.
In addition to unbundling NEPA, many critics have said that another way of having sustainable power supply is to encourage the participation independent power companies in the country. Apart from a pocket of such independent power producers (IPP) in existence, individuals and corporations are constructing such plants across the country. For example, one such plant was flagged off last year in Aba, Abia State, with Prof. Barth Nnaji supervising proceedings.

Ironically, while these efforts are going on NEPA said the tariff charged by the authority would soon go up when tariff paid by the corporation to the Nigerian Gas Company (NGC) for the supply of gas would have been hiked. The corporation further said that the present power outages are made worse because of the non-completion of a new power station, which should have been commissioned last June. Apart from the current problems faced by the corporation, Makoju said the huge gap that still existed between supply and demand for power in the country was the fundamental reason why power supply was still unstable.
"Although the Federal Government has embarked on an ambitious programme of building new power stations that would increase power generated to meet the nation's demand to 10,000 MW, this cannot be achieved until 2007," he said.

Makoju said the corporation was exploring ways of generating power from othersources including coal and solar energy. He said the corporation was currently working in partnership with a South African firm to realise the dream of generating power from coal. Other measures NEPA is putting in place to achieve its goal of uninterrupted power supply include creating power pools with neighbouring countries. This, he said, would enable the participating countries to benefit from the collective pool.
He said the corporation was also considering participating in the power pool at Inga Dam in the Republic of Congo where over 40,000 MW of electricity was being generated.

Makoju said part of the current problem faced by NEPA was traceable to the fact that funds allocated by the Federal Government to the corporation in 2002 and 2003 declined considerably, adding that it was reduced financial allocations to the corporation by past administrations that led to the collapse of operations for which NEPA became notorious over the years.
He further blamed past engineers who occupied top positions in the corporation for not running NEPA along commercial lines thereby losing much revenue, which adversely affected the operation of the corporation. Meanwhile many Nigerians and corporation continue to run their homes and business with generating sets as NEPA deteriorate daily.

It is doubtful that the president himself does not make provision for generators in his farms. In that case, the man himself does not believe in his own promises, which is unfortunate because when our leaders talk, especially when the President says something, people should believe him.
If he is also acquiring heavy-duty generators for his investments, then it means he is not convinced that the problem would be over soon.