Mr Kunle Olubiyo, President, Nigerian Consumers Protection Network (NCPN),says the proposed sale of six power plants constitues a national risk and a disservice to Nigerians.
Olubiyo made this assertion in a statement he issued in Abuja on Thursday.
Olubiyo served as a member, National Technical Investigative Panel on Power System Collapses / System Stability And Reliability (June, 2013 ) and Member, Presidential Adhoc Committee on Review of Electricity Tariff in Nigeria (August, 2020).
According to him, the attempt by the globally notorious Bureau of Public Enterprises ( BPE)
to sell the six NIPP / NDPHC POWER PLANTS at this points in time is self serving, assets Stripping by a Group of Emerging Energy Carltels Energy Cabals as it were.
The statement reads further that “without fear of contradictions , this move is a disservice to Nigerians .
“The whole lots of firms being paraded are mushrooms businesss entitles with no records of cognate experiences nor businesss management services experiences in power businesss for a minimum of 10 years in generation businesss any where in the universe ,” he said.
He said during the outbreak of COVID -19 , Nigerian economy was completely shut down just as it was all over the world, including Nigeria.
“All strata of Industries were not in Operations, the Hotels and Hospitality Industry and Small business Holders / SMEs, Medium and Large Scale Enterprisess were practically shut down .
“At this point in times, virtually all the power generation plants in Nigeria were shut down.
” Nobody, Private Investors that have invested their hard earned money in generation was willing to generates power and run at losses.
“What are the implications of these to common sense and logics , the entire Nigeria would have been in DARKNESS for over 24 months without Electricity while the COVID 19 PANDEMIC LASTED !!!!
” Save for Niger Delta Power Holding Company ( NDPHC) National Integrated Power Plants (NIPP/ IPPs) that came to our rescue as a Nation.
“Nigerian Economy and all definitions of social well-being would have been permanently shut down with potential risks and attendant precipitation of unimaginable social upheavals or needless chaos.
“We have seen how Private Businesss Entitles in Nigeria Energy Sector, from Legacies Power Generation Companies ( Legacy Gencos),Independent Power Plants (IPPs), those in the Business Importation, Haulage, Marketing and Distribution of Petroleum Products in the Oil
and Gas Industry, Electricity Distribution Licensees , Marketers of Petroleum Products , those involved in Day – to – Day Distribution of Oil And Gas Bi-Products in Nigeria have in the past had cause to shut down Operations, withheld their services in the process hold everybody,the Citizenry and Government to ransom for sometimes on grounds of Shortfalls of Pricing of Good and Servicess and Markets Benchmarked Prices of the Products and Services.
“In the context of the foregoing , Energy Economy and Dynamics of the Energy crisis and the entire gamut Energy Market Operations has made it expedient for Energy Value Chain to be unavoidably classified as NATIONAL SECURITY RISKS and ENERGY SECURITY AS A PANACEA FOR NATIONAL SECURITY STABILITY.
“One could imagine how much of damages will occurred at any point in time that the Gas Producers decides to shut down and stop delivering products to the Market due the alleged delay in payments of LEGACIES DEBTS of $1 Billion Dollars alleged owned by Federal Government of Nigeria to Gas Producers.
If at the same moment, the Gas Producers decides to shut down Productions,then the Private Investors in Legacies GenCoys and Independent Power Plants (Gas Fired Independent) Private Investors decides to join the fray to shut down for one reason or the other.
“Just imagine such a scenario and what could happened and of course the degree of National embarrassment that would be unleash on the psyche of the Citizenry and the Nation_ Nigeria.
“It is on record that some of the Plants are yet to put to optimal use in line with the Original BOT Model (Built – Operates And Transfer Businesss Model).
“The Niger Delta Power Plants/ Independent Power Plants at the moment serves as the Nation’s Energy Security Backups.
“Since inception – to – date
it is on records that NDPHC/ NIPP has invested so much in Transmission Projects, Distribution Infrastructural Enhancement Projects lots of the Power Sector Pre Privatisation and Post Privatisation Power Sector Value Chain strategic Network Improvement Projects were supposed to be Evaluated by Nigerian Electricity Regulatory Commission (NERC) in order to determine or ascertain the value of such Project and to determine the the amount of money to be pay back to NDPHC/ NIPP by the final project beneficiaries across the value chain of Generation, Transmission and Distribution Sub Sector.
“For the past nine years or so , Nigerian Electricity Regulatory Commission have been permanently carrying out an endless and perpetually un- ending Evaluation of Total Value of Investment made by Niger Delta Power Holding Company/ NIPP in the Sector.
“The inability of Nigerian Electricity Regulatory Commission to wrap up the NDPHC/ NIPP National Power Investment Evaluation and make deduction from the CAPEX of such beneficiaries has continued to rob the organisation of the much needed impectus and financial resources that ought to be plough back into a Escrow Account / Dedicated Bank Account for NIPP/ NDPHC Projects Financing – REVOLVING FUNDS .
“The present unholy and unsavoury attempts to sell the 6 NIPPs Power Plants to POLITICAL CROONNIES, Pre Determined Preferred Bidders is in unequivocal terms a Dis Service to Nigerian Electricity Sector,
undermines National Security parameters and Energy Economics interfaces with National Security Stability in the prevailing circumstances.
“We are not saying that the Plants would not be sold at the appropriate price and time in the future but not now, where Nigeria is seriously in battle with challenges of Deliberate Load Rejection by the DisCoys, Deliberate Low Energy Dispatch by the Transmission Company’s Load Dispatch Managers from various Energy Load Dispatch Centers / National Control Center (NCC) Osogbo, Osun State.
“The desperate desires of Bureau of Public Enterprises to by all means sell the 6 NIPP / NDPHC Power Plants to already tactically selected cronies in a Pre Election Year and sadly the proceed of such will just be treated as a Sendforth Monetary Cash Out by Political Officers Holders at the 3 Tiers of Government (Federal Government , State Government and Local Government Authorities).
“The proceeds from the sales would simply be shared as an Economic Windfalls and Largesse.
“Ordinarily, such proceeds from sale of Critical Assets should have been re- channelled or plough back into an Escrow Bank Account or NIPP/NDPHC Projects Financing
and Project’s Businesss Continuity.
PROJECT’S REVOLVING FUNDS.
“In the face of paucity of funds and scarcely available National Resources..
” Nigeria is increasingly a Country of Sharing Formula
” Share the Money ”
The 6 NIPP Power Plants that are being earmarked for sale would still attempt to deliver to the National Power Grid , not off grid and they would require some levels of PPAs and Vesting Contracts from Nigerian Bulk Electricity Trading PLC.
“At the moment, NIPP/ NDPHC has some already signed contract for
Take or Pay deal for Gas Supply Agreement.
“So any time the Privately owned Power Plants refuses to Generates or any time the Market Players Upstream attempt to hold the Nation Nigeria to ransom,
NIPP / NDPHC GAS FIRED POWER PLANTS will serves as Energy _Security Backups.
As a Country, we should avoid the temptations of the SPIRITS OF
THE PRODIGAL SON.
“Who decides that asked his Father to give him upfront, His own share of the Family Inheritances.
“Those in position of Authorities are just like our elder brothers and sisters that are today entrusted by the Almighty God to lead us and managed the Family Collective Patrimony, Manage the Family Aged Long Heritages, Family Aged Long Historical Artifacts and Monuments.
“What is playing out now in the attempt by BPE to sell by all means at the wrong time , the 6 Critical NIPP / NDPHC GAS FIRED POWER PLANTS just like the PRODIGAL SON.
“One day, we may not even have a Family roof over our head as the BPE may decides to sell the roof over our heads and the Family House, eaving all of us Homes , Endangered and Exposed to Economics Night Marauders ..
“The present attempt by
BPE to sell National Assets to Flex and catch fun with the proceeds
“If there is any thing will need to do is to join hands with Experts and Professionals like minded people in addressing the Declines in Growths being witnessed in ENERGY SECURITY, DECLINE IN ENERGY LOAD DISPATCH BY TCN, DECLINE IN GENERATION CAPACITY, DECLINE IN ENERGY LOAD UTILISATION BY THE DISCOS.
These are the present ugly trend and stark reality.
“The NIPP / NDPHC GAS FIRED POWER PLANTS need to be first of all Corporate, Managed optimally as a Commercially viable Entitles, Navigates the Markets Crises of Load Rejection and Markets Settlement Crises of Non Remittances, maximise the BOT before any further action.
“At the end of all these rethorics, the Nation,the Public , the End Users of Electricity and Electricity Consumers are at the receiving end of Market Distortions and Systemically inherent poor quality of Service Delivery in NESI.” (vitalnewsngr.com)
