probing the Power Sector

The allegation of massive fraud in the Power sector, which was recently levelled by a former member of the House of Representatives, Godwin Ndudi Elumelu is very serious and should not be waved aside. Addressing journalists in Abuja, the former chairman, ad-hoc committee on the Power sector probe during the sixth National Assembly gave an insight into how government officials and contractors connived to fleece the federal government of trillions of naira.

 Elumelu had alleged that the Power sector had been used by government officials to inflate contracts for the supply of power equipments. His allegation on how the government spent $1.545 billion for purchase of nine turbines, when 18 of the same equipment were bought for $404million within a short period smacked of nothing but evil and monumental fleecing of the nation’s economy. He said, “From Kubwa to Katampe sub-stations, we discovered that cost of the transmission line was over-inflated. Also, another mind-boggling discovery was made where 18 turbines were procured for $404 million and when additional turbines were needed, they now spent $1.545billion on them.”


 Lamenting such unconscionable sleaze, Elumelu revealed that in the course of his committee’s visit to Brazil for comparative assessment of public investment in electricity, it was discovered that the Latin American country spent $12billion to generate 12,000 megawatts in comparison with Nigeria that spent a whopping $16billion to produce a measly 3,000megawatts. Definitely, these allegations are to say the least very disturbing and nightmarish. This is because they are the very reasons why the country has remained impoverished and underdeveloped for almost 55 years after independence.

 We call on the Senate to take cognisance of the seriousness of the allegations with a view to identifying all those behind such monumental fraud and then prosecuting and recovering the loot. In the course of the investigations, there should be no sacred cows, as anyone connected with the Power sector in the past administrations must be summoned to testify before it. In addition, senators should verify whether monies spent were in accordance with the appropriation. As a matter of national importance, the Senate must not see the probe as just another joke or circus show for prime time news and attention.

 There is no gainsaying the fact that Nigeria would have been among the 20 developed economies in the world if there were conscious and consistent investment in the Power sector in all these years. Rather, successive administrations and official kleptomania have conspired to bring the country to this sorry pass. It is fact that the efficiency of the Power sector is crucial to the success of the national aspiration for accelerated economic boom. Until we get the sector right, we cannot build industries and without industries, we cannot create employment.
 It is an accepted norm that with less electricity, business activity and manufacturing companies are less likely to relocate or expand due to basic key infrastructure needed for operations, even as it also dampens international investment.

 For many decades, Nigeria has not invested effectively in generating capacity, leaving the Power sector in grave condition.

 For example, in 2010, it was estimated that to achieve a 40,000MW grid capacity by 2020, Nigeria would require annual investments of $3.5 billion across the value chain. To date, these investments have not been made in the Power sector as Nigeria is falling further behind, and realising the severe impacts the lack of power is having on the country. We are therefore calling on those probing the malfeasances in the Power sector to look into how the more than $20 billion budgeted for electricity since 1999 was misallocated, and bring those responsible to account.