Wednesday, March 26, 2014

International Financiers Shunned Nigeria's Power Privatization: Nigerian-Owned Corporations are the Solutions

President Goodluck and VP. Sambo
FIVE months after the privatization of the Power Holding Company of Nigeria, PHCN's assets, uncertainty and transparency issues have been identified as reasons why international financial institutions shunned the exercise.

At Center for Modern Nigeria, it is our conclusion that there can never be a significant and full industrialization without a revolution in the power generation sector in Nigeria.  This administration has taken the right steps to bringing this revolution to reality by the privatization program.  Nigeria power generation is still in the stone-age compared to the industrialized nations.  We have the resources and the human capital to energize Nigeria power generation within 3-5 years.  The sub par energy generation in Nigeria costs trillions of dollars annually in manufacturing and general productivity. This further aggravates the unemployment rate and other social unrest.

This is how the Guardian reported the state of Nigeria Energy Production:

"...........If you are new to Nigeria the power situation takes a little getting used to. There are frequent and often night-long power cuts and hours of swearing at generators. People dash out in the lashing rain and pitch dark with a torch to try and crank up the generator while neighboring compounds rouse their own. On a 'bad' day, you suffocate in the stifling dark, listening impatiently for the now familiar roar. Too often the cry is heard… "Fuel no dey!" - No fuel!
The Nigerian power sector has been in crisis for many years. Much of the generation, transmission and distribution capacity has become worn out or damaged. The average annual per capita power consumption, only 155 kWh, is among the lowest in the world. And this in the world's 5th largest oil producer. Nigeria's per capita electricity consumption is 7% of Brazil's and 3% of South Africa's. At the same time, at least 50% of Nigerian households have no connection whatsoever to the grid. Self-generation (diesel or petrol generators) in Nigeria is estimated to be 6,000MW."

There are Nigerian-Owned corporations at home and in Diaspora that can easily facilitate these efforts. Let's get this straight.  International Financiers are in these kind of business or any business to maximize their profits at the expense of the receiving nations.  We have seen what Shell and other oil corporations have done to Nigeria.  We have also seen what the construction corporations have done to Nigeria.  All these International Corporations will do their best to maximize their profits. Nigeria underdevelopment is also partly related to the exclusion of Nigerian-Owned corporations to play the frontal roles in projects executions.  This is part of the garbage inherited from years of dictatorships and past maladministrations. Nigeria cannot expect to be fully independent until we can take full control of our developments.

Solar Energy
Rusty Electricity Pole

The enabling environment created by this administration is historic. We therefore implore the Federal Government to act decisively and embrace Nigerian-Owned businesses as partners in our Industrialization programs.
  • Seeking salvation from Foreign Corporations is an effort in futility. They have no interest in what is good for Nigeria. They are only interested in what is best for them. Unless Nigeria is willing to surrender the economic sovereignty, like we did with the oil companies, they are not interested. Only Nigerians can develop Nigeria. 
  • Nigeria obsessions with foreign corporations to develop our nation is akin to a self-imposed imperialism. Just like these corporations acquired their technologies through international cooperation, Nigeria can do same; but with Nigerian-Owned corporations full and active participation. 
  • The Federal Government must embrace and negotiate directly with the Nigerian-Owned Enterprises in the industrialization programs and in all infrastructural developments.
  • Nigerian-Owned Enterprise can complete all negotiations with the International partners to ensure the interests of Nigeria are fully protected.
  • Nigeria Federal Government's Investment in Nigerian-owned Corporation is an investment in Nigeria with multiple dividends.
  • Nigerian-Owned Corporation  with its International partnerships and connections, particularly in the State of Georgia  can refurbish and resuscitate at least 2 or more existing power generating stations in Nigeria to meet the needs of the entire Nigeria within 3 years. And this at a fraction of the already bloated budget.
  • Exploration of other green (renewable) energies such as solar and wind have great potentials. 
    Wind Energy
Recently,  Nigeria’s power generation depleted from a  peak value of 4, 350 megawatt to an abysmal 2,868.4 megawatts. The power ministry attributed the sharp drop in power supply to a general system failure. Consumers across the country have complained about the constant darkness that their homes and industries have been plunged into.

It is a new day in Nigeria.  All Nigerians must be given the opportunities to be part of the ongoing transformation agenda.  This administration offers the best opportunities like never in the history of Nigeria. 

With our International partnerships, Nigerian-Owned Corporations can guarantee Nigeria Energy Production sufficiency within 3 years. In 3 years we repeat.

This country Nigeria is ours.  It is our home

Only Nigerians can develop Nigeria.

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