PHCN
And The Woes Of the Nation: System Of Nigerian Power
Holding
2 March 2010By Rahaman Onike
The recent disclosure by Alhaji Immamudeen Talba, the
Administrator of the Nigerian Electricity Regulatory
Commission (NERC) that the Federal Government would
remove subsidy on electricity tariffs by 2012 is not
only a source of worry to the masses but also amount
to a conspiracy to inflict pains on the citizenry.
Obviously, the removal of the subsidy will increase
the price of electricity on consumption. The
contemplated adjustment of power prices in line with
market – orientated mechanism is unnecessary at this
critical moment of our nation’s history.
The claim by Alhaji Talba that in 2009 alone
government spent 177 billion naira on electricity
subsidy has not in any way lend credence to the
proposed policy regime. Arguably, the implication of
the plan of the government, if it succeeds is that by
2012, the electricity consumers would be paying 11
naira per kilowatts of electricity, being the full
cost of commodity instead of the 6 naira per kilowatts
currently being charged.
While trying to justify the proposed plan to increase
the prices of electricity, the Federal Government
assured the citizens that even when consumers begin to
pay 11 naira per kilowatts, the tariff will still be
the cheapest in the African continent. What government
fails to realize is that the purchasing power of the
currency, per capital income and the high rate of
unemployment of the citizens are social realities that
would turn the removal of subsidy to national burden.
The pronouncement of the government plan to remove the
energy subsidy was ill-timed and wrongly-conceived.
This is because the popular agitation is that the
government should declare emergency in the power
sector. Instead of government to reflect on the
reasons for its failure to fulfill the promise of
generating 6,000 power megawatts by the end of
December 2009, the vultures at the helms of affair are
desperate to increase the price of electricity on
consumption.
In deed, if Talba’s pronouncement is anything to go
by, it gives the picture that Nigeria is being
governed by leaders who are insensitive to the plights
and feelings of the populace. One important thing is
that the proposal is yet to be presented to the
National Assembly for approval. With this in mind, I
will like to implore the Acting President, Dr.
Goodluck Jonathan to allow the status quo to remain
even if the idea is muted by Yaradua’s.
Another striking point is that Nigeria as a nation of
about 140 million people was said to be generating a
miserable 2,700 megawatts of electricity, resulting
into near or total darkness of most homes,
institutions and businesses across the nation. Of
course, the chronic power shortages and regular
outages consequent upon poor power generation,
distribution and supply by the government as remained
a major cause of the increase in unemployment and
crime rate in Nigeria. The situation is more worrisome
in the rural communities where they hardly enjoy
electricity supply despite the government substantial
investment and budgetary allocation for rural
electrification projects by successive administrations
in Nigeria.
It is also worthy of note that the current predicament
of the manufacturing industry is caused by poor
electricity supply as many of the blue-chip companies
are in a state of inertia while some have even shut
their factories and relocated to the neighbouring
countries. No doubt, the cost of doing business is
unbearable in Nigeria due to the challenge of energy
generation and supply for both private and industrial
uses.
More critically is the problem posed by poor
management of funds generated from previous attempts
to deregulate the petroleum sector of the Nigeria
economy to justify the government stance. People are
still groaning that the funds generated by the removal
of subsidy in the past have not been used judiciously
because the nation’s infrastructure that successive
government said would be rehabilitated are still
visibly dilapidated. It is suffice to state that what
Nigerians expect from the Acting President Jonathan is
declaration of government concrete plans to increase
power generation far beyond the 6,000 megawatts
promised by President Umar Yar’Adua.
Of equal importance is the challenge of poor
distribution network. What is actually required is
overhauling of the power and energy distribution
networks to ensure efficient delivery of electricity
to the consumers. If the contents of the power sector
reforms include the plan to remove the subsidy, it
seems reasonable to discard it forthwith in the best
interest of the nation. Yes, it is only when the
sector is being efficiently run that the question of
the removal of electricity subsidy could be raised.
Apart from the problem of poor electricity supply, the
corrupt staffs of Power Holding Company of Nigeria (PHCN)
are forcing innocent consumers to pay exorbitant
bills. It is disheartening that even with the
installation of the pre-paid meters across the nation,
the consumers are still burdened and constraint by
payment of crazy bills either as a result of staff
incompetence or conscious efforts to exploit the
consumers by coaxing from their light purses.
Onike writes from Oyo town, Oyo state, Nigeria Public
affairs analyst.
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