Abuja — In a show of confidence in its plans to rescue the power sector, the Nigerian government Thursday announced that importation of electricity generating sets now has to be approved by the National Electric Power Authority, NEPA.
Government's aim, said Malam Adamu Ciroma, Minister of Finance, who announced the measure, was to ensure that both the state and NEPA "help Nigerian citizens, instead of frustrating them." Ciroma spoke as he announced government's fiscal policy measures and tariff changes for this year.
To many Nigerians, the true meaning of NEPA is "Never Expect Power Always" as the authority has failed to generate even half of the 4,000 megawatts of electricity, given as the average national demand. Indeed, for some parts of 2000, total power generated by NEPA fell below 1,500 MW, while Nigeria experienced complete national blackout on two occasions.
Government has given NEPA a target of generating 4,000 MW of power before the end of this year, although a target of 3,000 set for it for last December could not be achieved. But Ciroma said the measure is part of efforts by the government to get the priorities right.
One of the priorities, he said, is "to ensure that NEPA is able to produce the power that this nation requires." According to him, the decision to generate 4,000 MW of power has been taken and is currently being implemented. "So that makes the use of generating sets very unnecessary."
NEPA's failure created a void that many Nigerian entrepreneurs - in some cases working in collaboration with foreign partners - have filled through the importation of generating sets, especially from the Far Eastern countries. The generating sets are seen in homes, in barbing salons, and in factories, where they have managed to keep the wheels of the Nigerian economy running - although at a slow speed.
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With these developments, he said, "we believe that anybody willing to import generating sets should justify the need." According to the minister, this is not the first time this requirement has been placed.
"Those of you who are old enough may remember that in the past, nobody was allowed to set up a generating set of his own without permission from NEPA," he said in answer to a reporter's question.
Ciroma also announced measures to improve on the incentives given by the Nigerian government to oil companies operating in the country. The proposal in this regard includes amendments to sections of the country's Petroleum Profits Tax Act, to make inter-company loans deductible as expenses for tax purposes.
Ciroma said the value of the Naira, the Nigerian currency, had continued to be low because of low productivity in the economy and excessive dependence on importation. So far, he said, "most of the goods are imported from abroad and most of the income we earn from petroleum remain abroad." This trend will change if Nigeria produced most of the goods at home, "then most of the dollars will stay at home."
