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Power Sector in Nigeria: What We Need to Do - Economist

Epileptic, stuttering or maybe, non-existent.

These are some of the words rightly used to describe Nigeria's power sector, especially in recent times with repeated collapse of the national grid.

With homes and businesses forced over the years to find other alternatives to power to keep afloat, the need to tackle head on the problems bedeviling the sector cannot be over emphasized.

However, the clearest solution yet to the country's dilapidating power sector may have seen the light of day. 

This is if comments made by the former Executive Director of the Asset Management Corporation of Nigeria (AMCON), Kola Ayeye are to be believed. 

The Banking, Financial Services and Audit and Advisory Services expert says privatization of the country's power sector "will not get us anywhere."

He made these comments while speaking on the Sunny Side with Joyce Onyemuwa.

According to him, the details of the privatization policy and its implementation is anything but right. 

"Development is not only about intent to do what is right, you also must do the right thing.

"Privatization is right, but the details of the policy and the way we went about implementing it was wrong."

He added, "Most of the counter parties that the Jonathan administration dashed out Nigeria's power assets to lacked capacity. They didn't come to the table with sufficient capital or sufficient skills, and that's not something you can gloss over."                                                     

"We need to go back to the drawing board and actually tear up that privatization (agreement), it won't get us anywhere."

This, though, is one half of the problem according to him.

The power companies in the country need to be held accountable too.

"A lot of these power companies are in significant default on loans to banks," he reveals. 

"They are owing Nigerian banks about a trillion naira, so the way to get them is not for us to go in breach of the agreement we signed.

"Just call CBN, CBN will call the banks they owe since 2013, and call in the loans."

Problem identified, how then do we go about fixing it? 

"If it were dependent on me, this is what I think we need to do with our power sector..."

He explains in details in the video. Click to find out what he had to say.

 

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