PRESIDENT of Good Governance Initiative, GGI, Mr. Festus Mbisiogu has backed the calls for the review of the privatization of the power sector by the Nigeria Labour Congress, NLC, saying it is the only option that could lead to the revitalization of the sector.
Mbisiogu, who said this in a chat with newsmen yesterday said the lingering controversy between the Generating Companies, GENCOs, Distributing Companies, DISCOs, and the Federal Government would pave the way for efficiency, if the privatization terms were revisited.
The NLC had called for the reversal of power sector privatisation due to what it called “chronic failures’’ to deliver quality power supply to Nigerians.
However, Mbisiogu said: “I welcome the call by Labour Congress and I see it as one of the ways to resolve the logjam we have been experiencing in our power sector which has turned into a nightmare.
“Only last week, I held a press conference in which I noted that the objectives of letting the Generating Companies (GenCos) and the Distribution Companies (DisCos) privatization to fully take charge of the power sector in Nigeria have not achieved the desired results.”
It is so far characterized by a series of unaccomplished objectives and ineffective strategies. Inefficiency is pervading and has become the hallmark in the sector.”
How do we explain a situation that Nigeria has an installed capacity of 12,522 megawatts of power, non-available capacity of 5,300MW and non-operational capacity of 3,180MW meaning that the amount that is actually available is just over 4,000MW out of 12,500MW and with a loss of 228MW and we have distribution loss of 447MW. At the end of the day, only 3,800MW reaches the consumer. This is a clear indication that the privatization process has failed to produce the desired results. Since governmental has been lethargic in taking a holistic approach in resolving the impasse in the power sector, the only way forward is to reverse the power sector privatization. In doing so, a new National Energy Policy should be put in place.’’