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Amadi

The Former Chairman, Nigeria Electricity
Regulatory Commission, Sam Amadi has
attributed the problem in the power sector to
political scheming between the executive and
legislative arms of government.

He said this during an exclusive chat with the
crew of Siverbird Television on the popular
programme “Today On STV”, Friday episode.
According to him, the inquest into what is
wrong with the power sector ought to be
much more rigorous and systematic. The
power sector has been sought of an obsession
with political leaders particularly those in the
National Assembly.

To Expedite Action On Corruption Cases
He explained that the power sector would
need more of rigorous examination,
interrogation, a special congressional
commission and a special National Assembly
legislative commission made up of people
who ought to know and take a critical look at
the power sector.

He stated that the power sector totally
collapsed when the Nigerian Electric Power
Policy was set up and had gone as low as
1500megawatts. “The idea behind it is to
solve the problem of power scarcity through
innovation built around private sector, so
whether it is privatization or deregulation the
idea is that there’s need of financing and
public sector requirement on infrastructure
on the government,” he stated.

Amadi was of the view that the country would
need to involve the private sectors to invest
and to partner the private sectors so as to
make the market attractive.

To him, there are two things needed; to
commercialize the value chain and ensure
profitability through tariff regime, which
means it will be a business that is profitable
and as well as accessibility.

However, he added that in 2005, the country
had set up a regulator and then in 2009 the
Nigerian Electricity Regulatory Commission
(NERC) was dismantled on false allegation on
corruption and ex-President Umoru Yar’adua’s
Government made a mistake of reversing the
movement towards privatization and
mobilization.

He further explained that the government
needed to nurture a culture of commitment
and regulatory certainty over some significant
period of time to see significant results.

“Power is not something you dismantle and
pull up again it is a structure which means
there are policies which we should not
discontinue. Today we would have had
comfort and investors would have come to
these markets and then we would have started
focusing on repairing the distribution
network, sell service efficiently, and renew
finance degeneration value chain.

All these
things are too much to be solved by the
slender argument of private sector” he said.

He posited that, today, there is a market
failure of financing in the private sector,
because those finances are predicated on
used valuation which becomes difficult for
government to solve on one false hope.

“The other problem is that of private
management, the idea was to have National
Integrated Power Project. (NIPP) to give us
some capacity years back, by now they should
have given us 4700megawatts which would
have favoured the country but failed to
develop those projects due to the fact that
there was inherent corruption, inherent
failure of project development, awarded
contracts to those who did not have the
capacity to revive this power.

His final view was “if the country had settled
down to get rigorous congressional
commission, modeling on the power sector
and also review the policy of the national
electoral policy in 2000 thoroughly, it would
have helped this new government to have a
recovery economic agenda concerning power
sector in the country”.

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