4 September 2008
editorial
Lagos — In what appears to be an improvement on its all too familiar dismal performance, the Power Holding Company of Nigeria (PHCN) has reportedly increased electricity generation to 3,300 megawatts. This is also said to have positively impacted on power supply in some parts of the country. But, considering the enormity of its unaccomplished tasks, rolling out the drums now would be missing the point.
No doubt, climbing from between 1,800 megawatts and 2,400 megawatts only a few months ago to the present capacity indicates hope in an area that has given Nigerians nightmares. However, this optimism needs to be tempered with caution, as it is within installed capacity.
Equally suggestive of a bright future are the moves by the government and the private sector to boost generation. Two weeks ago, the federal government signed an agreement with a group of German companies to produce over 6,000 megawatts before 2013. Also, some oil firms under the umbrella of Oil Producers Trade Section of the Lagos Chamber of Commerce and Industry have mapped out strategies to contribute 6,500 megawatts to the national grid.
As laudable as these plans are, Nigerians have suffered for too long from the paralysis of the power sector to be excited by temporary solutions, no matter how enchanting.
During the last administration, consumers' hopes were constantly raised and dashed through empty official promises. And as if it borrowed the style of disappointing consumers from its predecessor, the current government has not failed to randomly pledge to perform. It even promised to declare a state of emergency in the all-important aspect of the nation's life.
Unfortunately, so far, nothing has worked convincingly. Tales of woes have continued to characterise the industry. A key reason why the real sector of the economy is on its knees today is poor power supply. The cost of this sorry situation in socio- economic terms is definitely shameful for this country's status as one of the most endowed places on earth. The embarrassment becomes even more troubling when viewed against this administration's much-touted Vision 2020. It remains to be seen how a nation with this huge handicap can join the club of the world's top 20 economies in 12 years time.
This is not to ridicule the attempts made in the recent past to turn darkness into light. A lot more work has to be done to produce at the nation's full installed capacity of 6,000 megawatts.
It is also important that government's recent intervention in the energy reforms that was being undertaken by the private sector is co-ordinated well for efficiency, in order not to frustrate the private sector.
The issue of appropriate pricing of gas also needs to be resolved. This has for a long time been a sticky point and we hope it will be resolved in the interest of both parties and for the average Nigerian.
But overall, the electricity being generated must be distributed efficiently. PHCN should not expect robust praise until it is able to provide Nigerians with the volume of electricity they can be proud of; one that could sufficiently change their fortunes and put the country on the path of genuine progress.
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