The Nigeria Consumer Protection Network,has set agenda for the new Minister of Power,Engr. Abubakar Aliyu on how best to run the nation’s power sector.
Its President, Kunle Olubiyo,urged the new marshal of the power ministry to ensure proper reconstitution of Transmission Company of Nigeria Board , and unbundling of the agency into technical ,commercial and operational parts.
He emphasized the need for the minister to consider decentralization of the management of the Nigerian power grid Infrastructure into regional management with a view to enhancing the eligible customer framework , wlliing buyers and willing sellers business model.
According to him,there was need for the minister to ensure immediate forensic audit of the power sector.
He said:” The Federal Government as a partner (on behalf of the masses) owns 40% shareholding and deserves to know the operational efficiencies, pay back period and returns on their investments rather than bail outs! The bail outs added to their initial capital at privatisation has given them above 100% ownership without any return in the last 8years”
He also advocated immediate mid year review of the activities of the operators in the country’s power sector value chain in line with the Performance Agreement / Service Level Agreement signed by the Directors,adfing that the big stick should be wielded on eering operators where necessary.
He said consulting firms should be contracted to engage past and current staff of power sector with a view to unearthing the level of operational corruption in the sector.
He said:”The incoming Minister of Power Engr. Abubakar D. Aliyu FNSE
should align himself with the Presidential Power Initiatives,upscale the visibility of the Ministry of Power in the power sector component of the Economics Sustainability Program ,Power Sector Recovery Program ,
consolidate on Federal Government’s efforts in closing the huge metering gaps and reduction of liquidity gaps and be open to stakeholders synergy ,eligible customer regulatory Framework should be rejig and enforce to the latter
“Unbundling of Transmission Company of Nigeria into commercial , technical and operational arms,inauguration of the Board of TCN ,decentralization of the management of the transmission grid Infrastructure,mid term review of the 2013 Privatisation exercise , that was earlier scheduled for 5 years after ( 2018 ) now 8 years after ( Mid Term Review of the 2013 Power Privatisation exercise is no doubt long over due ,declaration of post Transition electricity market ,recapitalization of the equity stakeholding in the electricity sector with government expected to pull out while present owners equity should be diluted to 30%.
“Upon the recapitalization and equity restructuring of the GenCoys and DisCoys which is expected to be listed and Qoued on floor of the Nigerian Stock Exchange and Capital Market , moving forward ,
the new equity stakeholding or shareholders stakes holding should be in the following order : 30% Equity Stakeholding for the present
Investors in generation and distribution sub sector ,the remaining 70% Equity stakeholding should be spread amongst members of the public , organized labour , and new Investors from the Organised Private Sectors ( OPS ) , the modalities for the restructuring of equity stakeholding of the equity stakeholding /shareholding should be through the capital market
The Federal Government , state and local governments should pull out the equity stakeholding in the market shares of the post privatised Nigerian electricity market .The shares and equity stakeholding subscription should subjected to Initial Public Offering ( IPOs)”
“These will address the challenges of governance , fiscal indiscipline , fiscal recklessness , improve the Liquidity and put an end to endless and needless subsidies of the power sector targeted at the individuals elitist so-called Investors and not the Nigerian economy nor the vulnerable end users of electricity in Nigeria”
