Privatisation of PHCN hasty - Lukman

Kunle Olayeni, Uyo - 11.02.2008

Former OPEC President, Dr. Rilwanu Lukman, has said that the privatization of the electricity industry was hasty and poorly executed by the Federal Government.

Lukman stated this in a convocation paper he presented at the Federal Polytechnic, Bauchi, on Friday entitled: ‘’Confronting Nigeria’s Energy Challenges The Imperative of Immediate reforms’’.

The energy expert said that the power sector reform initially started by the Obasanjo-led administration was marred by a lot of problems ranging from improper co-ordination, hasty privatisation and inadequate tariff structure.

“The unbundling of PHCN into 18 units has created a gap in supervision and made corporate governance difficult. ‘’Poorly planned and unrealistic timeliness with undue emphasis on privatisation have not allowed for the consolidation of the gains achieved.

‘’There is need to develop adequate tariff structure to ensure that the cost of generating, distribution and transmission of energy is realised in order to attract investors,’’ the Honorary Presidential Adviser on Energy said.

He said that in order to realise the objectives of the reforms, adequate measures must be taken to strengthen the national grid to ‘’adequately wheel power to the various load centres’’, adding that new entrants must also be allowed into the sector.

According to him, the power sector could not be left for long without proper investment so as to ensure that the supply was always greater than the demand, if incessant power cuts are to be avoided. ‘’The power sector reform policy is hinged on the premise that government is in no position to fully finance the development of this sector.

‘’The involvement of the private sector is therefore needed. However, it is also a known fact that the private sector can only participate in programmes that are commercially viable and secured.