On Thursday, August 26, 2010, President Goodluck Jonathan unveiled his administration’s strategies to eliminate power outages in Nigeria by December, 2012. The contract with Nigerians for stable electricity supply was presented at an elaborate ceremony in Lagos in the presence of top government officials, private sector operators, members of the diplomatic corps and other top dignitaries.

THE Road Map came three years after the former President Yar’Adua promised to declare an ‘emergency’ in the power sector in order to tackle the debilitating effects of the electricity sector on social and economic lives of Nigerians. Nigeria’s electricity statistics is very poor: in 2009, Nigeria’s electricity consumption per capita at 104kWh ranked among the lowest in the world. Comparative figures for South Africa was 4,921kWh, Libya 3281 kWh and Ghana 284kWh. Several studies have consistently ranked electricity supply shortages as the most important infrastructure constraint in Nigeria. It is perhaps in this vein that President Jonathan on assumption of office listed the power sector among his key priorities. He also effectively assumed the position of Minister of Power.

THE unveiling of the Road Map therefore underscores the government’s determination to provide a permanent solution to the electricity crisis in the country. The Road Map contains a set of policies and institutional reforms that have potential, if implemented carefully by all parties, to expand significantly electricity supply, electricity access and invariably fast track economic growth in the country.

THE President promised that the implementation of the Road Map would be fast-tracked to create employment and revamp the nation’s ailing economy. The Road Map identifies key bottlenecks to stable electricity supply in the country and sets out strategies to address them. The bottlenecks include poor transmission and distribution infrastructure, low gas and electricity tariffs, and inadequate gas supply infrastructure networks, among others. The government also appropriately recognised the important role the private sector will play in realising the Road Map.

AMONG the various policies announced by the government under the Road Map are the implementation of a Super Transmission Network, generation of additional 5000MW by the International Oil Companies, active exploitation of hydro, nuclear and coal power, privatisation of PHCN generation and distribution network, a new gas pricing policy, constitution of two Presidential Committees on Power and the reconstitution of the boards and membership of the Nigerian Electricity Regulatory Commission (NERC).

THE key challenge to the Road Map is implementation, implementation and implementation. Nigerian governments have not been lacking in coming up with overly good policies. In fact, successive governments starting from Obasanjo have always announced impressive policies to tackle the electricity problems, usually accompanied by billions of dollars of investment expenditure. However, the problem has always been to move from the policies on paper to implementation. Nigerians can only hope that the President with his team will find a way to ensure the timely implementation of the policies.

ANOTHER challenge relates to how to effectively handle powerful interest groups within the government and private sectors that profit from the existing rot in the power sector. Nigeria currently ranks as the highest generator importer in the world with annual imports running into hundreds of millions of dollars.  It will be illusory to think that such people will fold their arms and allow the reforms to take place. There are also elements in the PHCN that may also not be comfortable with some aspects of the proposed reforms and may want to delay or sabotage their implementation. It will, therefore, be simplistic to think that everybody will be happy with the reforms. Hence government must put in place mechanisms to engage all the stakeholders in the sector and to checkmate those that may want to work against the realisation of government goals in the sector.

THE third challenge has to do with tackling the issues of corruption and mismanagement. The electricity sector has been a cesspool of corruption. The public hearings conducted by the National Assembly a few years ago are still fresh in our mind. We should not repeat the mistakes of the past. As government commits billions of dollars (of Nigerian taxpayers) to the power sector in the next few years to implement the Road Map, it is imperative to put in place appropriate mechanisms to ensure the effective utilisation of these resources to ensure the nation gets value for money.

ANOTHER issue is getting legislative support for all aspects of the reform that need new legislation or revision of existing legislation. Legislative support will also be needed in appropriating money to fund the government components of the investment. Private investors will only be persuaded to come into the sector when there are legislation to back up the reforms. Hence, there is a need to carry members of the National Assembly along in the reforms.

THE issue of gas supply is fundamental to solving electricity problems in Nigeria. Massive investments will be required in the next few years to provide gas supply infrastructure network across the country.

THERE is also the issue of transparency in the privatisation of the distribution companies to ensure that these companies go to competent owners. There must also be effective post-privatisation monitoring.

ACCORDING to the World Bank country director, the Road Map “brings us to a point where we finally have a realistic plan that is actually technically and commercially sound in terms of the role of the private sector and the role of government.” The Road Map has addressed most of the issues affecting the growth of the power sector in Nigeria. Nigerians are only waiting to see if the President will translate the flowery language contained in the Road Map into affordable, stable and quality electricity supply for Nigerians. Only time will tell.

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