BY NAOMI UZOR

Minister of Power, Prof. Barth Nnaji, Thursday, disclosed that the Federal Government has approved 17 successor companies of PHCN to be privatized in the first quarter of 2012.

He further disclosed that out of the 331 that expressed interest in the privatization of PHCN, 281 companies have been shortlisted to participate in the exercise.

Speaking at the 2011 annual seminar of the Lagos Chamber of Commerce and Industry, LCCI, tagged: “Power sector reform: Indigenous Engineering and Manufacturing Development”, the minister who was represented by his special adviser, Don Adinuba, said the ministry has set up a committee to wind up PHCN but are facing opposition from people from all angles, adding that the the ministry is determined to wind it up because it has the support of President Goodluck Jonathan.

“We have made it clear that the President is not a politician, otherwise he would have insisted on PHCN and its supported companies remaining government-owned and government-controlled. I want to sound a note of warning that if we achieve 40,000 Mega Watt of electricity, it is not still enough for the population of this country, citing South Africa as an example, which is the half the population of Nigeria, South Africa generates about 40,000 MW and is still experiencing power outrages, so if South Africa is not doing well with its 40,000 MW, then Nigeria needs even more than 40,000 MW”  he stated.

According to him, “$10 billion dollars per annum will be needed for the next ten years ($100 billion) to provide power generation and that the Nigeria government does not have this kind of money to generate power and that there is need for the private sector to come into this generation.

“Currently, the country gets power from two major sources “hydro and thermal” .we are now adding the third which is coal, we are building three coal fire power stations, in Enugu , Gombe and Kogi. Nigeria ’s coal is about the best in the world” he said.

The President of LCCI, Otunba Femi Deru said on the credibility and transparency of the privatization process, issues of technical capacity and funding capability should be of paramount consideration in the choice of investors.”

He stated that funding issues, having regard to the high cost of funds and tenure of funds in the Nigerian financial system, security and certainty of regular gas supply, tariff structure that is commercially and socially sustainable, the diverse dimension of risk –political, security and policy risks, labour issues inherent in the privatization of the PHCN should be considered.