Charles Ozoemena
10 March 2004
Abuja — PRESIDENT Olusegun Obasanjo yesterday received an action plan for the reformation of the power sector for the next six years, declaring that Nigeria must achieve a target of 10,000-mega watts by 2007.Currently, the National Electric Power Authority (NEPA) enjoys the monopoly of power generation and distribution, a development that the reform seeks to re-order through the privatization of both the generation and distribution arms of the sector. The aim was said to inject efficiency in the system and run away from the existing debt situation, which NEPA has found itself.
The authority is owed over N50 billion by consumers, including government organizations, Minister of Power and Steel, Senator Lyel Imoke told reporters yesterday. Speaking when he received the power sector reform action plan at the State House Abuja, President Obasanjo restated his belief on the viability of privatizing the power sector stressing "we must create a conducive environment to attract investment to the power sector", adding that government could not provide all the sector's budgetary needs. He urged the Ministry of Power and Steel and NEPA to pay additional attention to the development of wind and solar energy to supplement current efforts at rural electrification, because those systems were suitable for small settlements. While advising NEPA to ensure regular and scheduled maintenance of plants he warned that the "madness of vandalisation of power installations must be stopped.
The meeting which was attended by Vice President Atiku Abubakar, PDP National chairman, Audu Ogbeh, and Senate president Adolphus Wabara, deliberated also on the regulatory law for the privatization of NEPA as well as gas supply for power generation. Senator Arthur Nzeribe, Minister of Information and National Orientation, Chief Chukwuemeka Chikelu, as well as Minister of State for Finance, Mrs. Nenadi Usman, also graced the meeting including the stakeholders from the oil industry.
Speaking to State House Correspondents after the meeting Minister of Power and Steel gave an insight into the action plan he presented to President Obasanjo at the meeting; saying "The programme addresses a comprehensive agenda for reforming the power sector and privatisation is one component of that agenda.
We expect that with the passage of the law by the National Assembly, we can commence that aspect of reform that will lead to privatization. Some of the stakeholders that participated at the meeting, apart from those from the Presidency are oil companies who have a role to play in terms of provision of gas for generation of electricity, the Nigeria Gas Company, some private sector stakeholders, prospective independent power producers, and the Energy Commission of Nigeria.
On the debt profile of NEPA he said, "I cannot give you the exact debt profile of NEPA. What consumers owe NEPA runs into billions of naira, but if you look at it, it will be close to or in excess of N50,billion, that is, if you add what is outstanding to NEPA from government agencies, private consumers and others".
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