COVER
Why FG Can’t Reverse Power Sector Privatization -Sen Suswam
Former governor of Benue State and Chairman, Senate Committee on Power, Senator Gabriel Suswam has said that despite calls from certain quarters to reverse the privatization of the nation’s power sector, it would not be possible for the Federal Government to cancel the already privatized sector.
This is even as the senator disclosed that the full implementation of the reviewed 2020 budget Act may not be feasible saying that over 60 percent of the budget was deficit.
The senate Committee Chairman on Power, also faulted the Federal Government for privatizing all segments of the electricity company at the same time arguing that no country in the whole world has ever done such.
Speaking in an exclusive interview with a team of DAILY ASSET Editors at the weekend in Abuja, he said that “there were a lot of things needed to be done before the privatization, which were not done.”
Suswam said that any attempt to reverse the privatization of the power sector would be “like operating in the jungle..”
“You know, this sector has been privatized since 2013, and then in 2020, you say we should review it because there are problems. These are teething problems that anywhere in developing economies where sectors have been privatized, they have encountered these issues.
“So there is nothing peculiar about what is happening to us here. It is just for us to focus. Like I said, if we properly allign ourselves, these problems will go eventually.
“But everywhere in developing economies; if you go to India, they had a worse crisis than what we are experiencing when they decided to privatize.
“If you go to Mexico, to mention but a few. The only place where performance was a bit better is South Africa. Otherwise, most developing economies have experienced this kind of problem.
“The reason being that, there are three theories of privatization. There is the Big Bang Theory, which is that you privatize Everything, generation, transmission, distribution, at the same time.
“The second one, is privatize only Generation. The third one; privatize only distribution. Unfortunately for us here, why our problems seem compounded, is that we chose the first theory, which is the Big Bang Theory, of privatizing the whole thing.
“No country has done that and gotten away with it. And so, that is why our problems are compounded. Now, if we have done that, we will now have to contend with the problems that have arisen from it, and that is what we are facing now.
“What we need to do now is to align ourselves; both the private sector who have these entities, and the ones in the hands of Government need to sit down and align themselves. That is what we have discovered. Misalignment in the power sector is a major problem.
“You will agree with me that over the years, successive governments have expended a lot of money on the power Sector. The reason being that they want to ensure the delivery of power to Nigerians. President Obasanjo was the one who thickened that efficiency in the power sector, privatizing it.
His reason was that, since power being the public sector has not yielded the desired results to Nigerians. So there was a need for the power sector to be in private hands. So people who operate it as a business would be able to execute more efficiently.
“Unfortunately, the manner of the privatization has become a problem. There were a lot of things needing to be done before the privatization which were not done. Rules were not really put in place, and so the people who bought it bought based on false parameters put in place by Government then.
“So the assumptions used in purchase of these entities, were assumptions that were faulty. That is the beginning of the problem.
“Instead of enhanced delivery, problems have arisen that have compounded the situation in the power sector.
“When this administration came into power, they promised they would change the entire perspective in the power sector Without knowing what was on ground. So when they came into the power sector, they started putting in money, believing that just putting money can solve the problem.
“It has been proven that it has not, because there are fundamentals that have not been touched. And what are these fundamentals? First, when they privatized the entities, some of the calculations, especially with the aggregate technical and collection and commercial losses, were faulty. Those losses at the time, were about 40% but the Government put about 20-22%. Which means that if I’m buying an entity that has losses of about 40%, and I’m told it’s only 20%, there is a problem. And those problems have subsisted, making it possible for the private owners of these entities to break through or break even.
“That is one. The people who are on the network of the power Sector; there is no quality data or statistics to show that; these are the number of people connected, these are the number of people metered. Lack of that data makes it impossible for the new owners to determine whether they can make profit or not.
“They didn’t know this; they rushed into it because they were promised Eldorado – that this would make them a lot of money.
“They should have been intelligent enough to weigh their options and determine all of these. So, they bought it and are confronted with these problems. How many Nigerians are metered? How many Nigerians are actually registered on these networks? That is not known to anybody.
“It’s all in the basis of speculations. Even If you go to the regulator, which is NERC, they only will speculate that about 10 million Nigerians are registered, and out of these 10 million, only 4 million are metered.
“For you to efficiently collect, you must meter People and know the amount you’ve metered, for you to even be able to make projections in terms of revenue.
“Unfortunately, none of the DisCOs has that kind of data with them, neither do NERC. So, it is difficult to plan. Now, that is one.
“If you go back to transmission, transmission is like a pipe between GENCOs and DISCOs. So transmission picks power, from generators and transmits to distributors.
“Unfortunately, the capacity of that transmission is lacking. They have no capacity to perform. And transmission performs the most important function in the entire value chain of the power sector. Unfortunately they don’t have that kind of capacity.
“Now you go to GenCos – the Power generators, at the time of privatization, in the power purchase agreement, it was indicated that they (GENCOs), when they buy, will ramp up power to certain levels. Most of them have not been able to do that. Some have done very well, but most of them have been unable to do that.
“So, there is a whole lot of complications when you come to the issue of tariff itself. Now, for you to be successful in the power sector, you must charge the cost reflective tariff.
“That is, Tariff that is consonance with the cost of producing that power. Unfortunately, the Government said, okay, the cost that will cover you is N50, but you can only charge N30. Which means there is a N20 naira difference. And who pays that? That is the money that Government have been expending; more like a subsidy. And so, people hear that so much money, amounting to trillions has been expended in the power sector, and they are expecting efficiency. No. That money is power already consumed.
“It’s not money put in to enhance Power. Government is only putting in subsidy, otherwise, people would have been paying much higher.
On the total amount the government has expended on the sector since the privatization, said “it is yearly. For instance, 701 Billion was the initial amount that was given to address that gap, that 20 naira gap that I talked about.
“Since privatization, N600 billion was also given. Like I said, all this money is just to subsidize that difference in Tariff. So even if we keep paying it, it’s not money that is going to address any problems in the power sector. It’s just like when Government was paying subsidy for PMS (Premium Motor Spirit). So much money was said to have been expended on subsidy; that is the problem. That is why a lot of people had issues with it.
“They’re spending so much money and you’re not seeing it. But it is subsidy. When you pay money to subsidize a product, that money cannot achieve anything because it’s like paying debt. So it’s not money that is going to enhance the infrastructural deficit in the power Sector.
“Those monies have been expended and nothing is coming. So we decided, in the Senate, that let us look at the issues in the power Sector, and so we can put them on the table and focus on them; to know what the issue is. Why so much money being expended and nothing is happening. And so we had that investigative public hearing.
“All the issues I’ve mentioned here were put on the table. All the stakeholders agreed that yes, there is a problem. And if the power sector, the entire power sector, sit down together– that is, sitting down with the executive, with the private owners, and of course the National Assembly– all of us agree that yes, there is a need to increase tariff to make the sector liquid.
“There is also the need for us to have quality data, enumerate all that are on the network, and meter at least 80% of those people, there must be alignment between what the generators are given; what is being transmitted and what is being delivered to the customers. That alignment is also not there.
“All of us agree that there is a misalignment in the value chain of the power sector, and so if we put all of this together, there would be enhancement in the delivery of power to Nigerians.
“I have just mentioned a few on what we discovered and what we came up with, and we’re going to present a report before the tenure ends, and I believe that report will be taken to the president for him to take some actions.
“You see sale of assets as a financing item, the processes have not started, so how achieve that objective, it only show that it is not realistic because once you don’t realize the profits from the sale of those assets, it adds to the deficit. So we are in a deep problem. So for me this year is going to be difficult and what we should do is to manage what we can manage because things are standing on their heads. Look at the price of oil, that was the first problem, and then look at commercial activities, that too is down and so people no longer have the means to pay what they should pay in term of tax, and so to get enough money to finance the budget is not practicable. So I think that government should do whatever they can just to see the year through and then plan ourselves in 2021, otherwise what is on ground now is not sustainable.
On what the National Assembly has done to cushion the effect of the COVID -19 pandemic on Nigerians, he said, “when the body saddled with regulating the power Sector intended to increase tariff – what the consumers are paying– the National Assembly intervened on behalf of Nigerians, especially giving the circumstances of the COVID -19 virus that it should be shifted until the first quarter of next year, when hopefully the economy would have recovered, and there would be money in the hands of people, giving them the power to pay.”
By Laide Akinboade, Abuja
As part of efforts to reposition the newspaper for optimum corporate performance, the management of Asset Newspapers Limited, Publishers of DAILY ASSET, has announced the appointment of David Torough as the Editor of the Abuja-based national daily.
A statement by the management said the appointments were part of the company’s new strategy to further penetrate the various states in the country and raise its readership and patronage.
“DAILY ASSET is widely acceptable across the country and to maintain our leadership position, we need to increase management presence, hence the need to create new Bureau offices in some locations outside Abuja and Lagos,” the statement quoted the Publisher/ Editor-in-Chief, Dr Cletus Akwaya to have said.
In a statement yesterday, Publisher and Editor-in-Chief of the fast-growing daily, Dr. Cletus Akwaya said the appointment was part of the new strategy to properly situate the paper for better productivity.
“DAILY ASSET has a commitment with the Nigerian people. We are determined to weather the storm and give Nigerian readers a Newspaper that satisfies their yearnings and reading pleasure and we can only do that with the right set of professionals,” the statement said.
Akwaya, a former Commissioner of Information from Benue State said the difficult times being faced by Nigerians posed a great challenge to the media as the people deserved credible information with which to make choices.
“We have a bond with the people, to offer credible information at all times in the best tradition of the Nigerian Press and on this scale of objectivity, truth and fairness, we pledge to remain steadfast no matter the challenges,” Akwaya was quoted to have said.
He said the newspaper will maiantin its daily print run and circulation to all states of the federation and urged advertisers to take advantage of the deep penetration of the Daily Asset brand to send their messages.
Torough, the new Editor has had a steady rise in the Newspaper in the last five years.
A graduate of Mass communication of the Benue State University, Makurdi, Torough joined the company in 2022 as Benue State Correspondent. He was spotted for his brilliance and redeployed to Abuja the following year and promoted to Deputy News Editor. He was subswuently named Deputy Editor of the paper, a position he held until the recent appointment.
Torough has attended several journalistic workshops and trainings to properly equip himself for the task ahead.
The statement also said the Management named Eze Okechukwu as Deputy Editor.
Before his elevation as Deputy Editor, Eze has been Deputy Politics Editor and DAILY ASSET Newspaper correspondent covering the Senate, having joined the organization in 2021.
Born on March 10, 1975, Eze holds a Masters Degree in Mass Communication from the Enugu State University of Science and Technology.
Eze began his journalism career with Daily Star, Enugu and later worked with Daily Trust Newspaper, Abuja as sports reporter.
Aside from his journalistic excellence, he has a great deal of passion for sports.
From Ngutor Dekera, Kaduna and Aliyu Askira, Kano
Northern governors and traditional rulers yesterday called for the suspension of mining activities across the region for six months, blaming illegal mining for worsening insecurity in many states.
The resolution was contained in a communiqué issued after a joint meeting of the Northern States Governors’ Forum and the Northern Traditional Rulers’ Council held at the Sir Kashim Ibrahim House, Kaduna. The meeting, chaired by the Gombe State Governor and NSGF Chairman, Muhammadu Yahaya, had in attendance the 19 northern governors and chairmen of the 19 states’ traditional councils.The Forum expressed concern over the escalating violence in parts of the North, including the killings and abductions recently recorded in Kebbi, Kwara, Kogi, Niger, Sokoto, Jigawa and Kano states, as well as renewed Boko Haram attacks in Borno and Yobe.“The Forum extends its deepest condolences and solidarity to the governments and good people of the affected states,” the communiqué said, noting that the attacks on schoolchildren and other citizens had become “unacceptable tragedies” that required urgent collective action.It commended President Bola Tinubu for what it described as the Federal Government’s “firm response” to recent abductions and insurgency threats, especially the rescue of some abducted pupils.The governors also saluted security agencies for their sacrifices on the frontlines.“We resolved to renew our support for every step taken by the President and Commander-in-Chief to take the fight to insurgents’ enclaves in order to end the criminality,” the Forum stated.A major highlight of the meeting was the North’s renewed push for the establishment of state police, with governors and traditional rulers insisting that decentralised policing had become inevitable.“The Forum reaffirms its wholehearted support and commitment to the establishment of state police,” the communiqué added, urging federal and state lawmakers from the region to “expedite action for its actualisation.”On illegal mining, the governors said criminal mining networks were fuelling violence and providing resources for armed groups.As a corrective measure, they asked Tinubu to direct the Minister of Solid Minerals to impose a six-month suspension of mining activities in order to allow for a full audit and revalidation of licences.“The Forum observed that illegal mining has become a major contributory factor to the security crises in Northern Nigeria. “We strongly recommend a suspension of mining exploration for six months to allow proper audit and to arrest the menace of artisanal illegal mining,” it said.To strengthen the fight against insecurity, the governors also announced the creation of a regional Security Trust Fund.Under the proposed arrangement, each state and its local governments will contribute ₦1bn monthly, to be deducted at source under an agreed framework.They said the fund would help provide sustainable financing for joint operations, intelligence-driven interventions and coordinated security responses across the region.At the end of the meeting, the Forum reaffirmed its commitment to unity and collective responsibility.“Only through unity, peer review and cooperation can we overcome the pressing challenges before us,” it declared.The Forum agreed to reconvene on a date to be announced.Meanwhile, Nigeria’s worsening security crisis took a grim turn on Monday as bandits launched fresh attacks in Kano State, abducting 25 villagers, even as the Federal Government raced to secure the release of more than 300 Catholic school children kidnapped in Niger State.In the early hours of Monday, armed bandits invaded Unguwar Tsamiya—popularly called Dabawa—in Shanono Local Government Area of Kano State, whisking away nine men and two women after shooting into the air and assaulting residents. The attackers also rustled two cows.A resident lamented the community’s helplessness: “We cannot do otherwise; most of us cannot leave because we have nowhere to go. This is our place, our land and everything is here.”The assault came less than 24 hours after a similar attack on Yan Kamaye in Tsanyawa LGA, a community along the volatile Katsina border.In Niger State, National Security Adviser Nuhu Ribadu has assured distraught families of St. Mary’s Co-Education School, Kontagora that the more than 300 students and staff abducted on November 21 will return home “soon.” Ribadu, who led a high-level federal delegation to the school on Monday, said the abductees are safe, though he offered no specifics on their location or the status of rescue operations.According to Daniel Atori, spokesman for the Catholic bishop overseeing the school, the NSA reassured officials: “The children are where they are and will come back safely.”The St. Mary’s attack is part of a worrying resurgence of mass kidnappings reminiscent of the 2014 Chibok schoolgirls’ abduction. Security analysts warn that banditry has evolved into a “structured, profit-seeking industry,” with hundreds of Nigerians abducted in November alone.The Kontagora school abduction occurred the same week 25 girls were kidnapped in Kebbi State—victims who authorities say have since been rescued through “non-kinetic” means. About 50 of the St. Mary’s hostages have also managed to escape.Ribadu’s delegation, which included the Minister of Humanitarian Affairs and the Director-General of the Department of State Services (DSS), reaffirmed the government’s commitment to securing the freedom of all abducted citizens.As communities from Kano to Niger continue to bear the brunt of these violent incursions, the escalating spate of kidnappings underscores the urgent national demand for a more decisive and coordinated security response.
By David Torough, Abuja
The Economic and Financial Crimes Commission (EFCC) said former Attorney‑General of the Federation and Minister of Justice, Abubakar Malami, will face a team of interrogators at its office daily throughout December.
A credible source in the EFCC said on Monday that the daily appearance was part of an ongoing investigation into the whereabouts of an alleged 490 million dollars Abacha loot secured through a Mutual Legal Assistance (MLAT) request. The source said that Malami, who was summoned for interrogation by the EFCC on Saturday, was barred from leaving Nigeria for the next one month.According to the source, one of the conditions for his release on Saturday was that he should report daily to the EFCC Headquarters in Abuja for further interrogation.The source said Malami would have to appear daily at the anti-graft office due to the volume of the investigation and the seriousness of the charges against him.”We seized his passport, it is the normal routine during investigation, but he has to report at the EFCC headquarters in Abuja every day for the next month.”He will be reporting for further investigation throughout December.”He will be reporting every day, starting from Dec. 1st to Dec. 31st.He will appear before the team of investigators for the entire month of December.”He will be reporting to EFCC for investigation for the period because of the volume of the investigation and the seriousness of the charges against him,” the source added.According to the source, a fact sheet on the former minister revealed that Malami had several issues to clarify with the EFCC within the coming weeks.“We have asked him to explain the whereabouts of the $490 million Abacha loot secured through MLAT.“We didn’t say he stole money, but he should account for the loot. This is one of the issues he will clarify to our investigators.”The commission cited the large volume of documents he must review and the need for extensive interviews as reasons for seizing his passport.The source said EFCC would not engage in a war of words but would release its findings after a thorough investigation.Malami, in a statement by his media aide, Mohammed Doka, on Monday in Abuja, however, described the EFCC investigation as a political witch‑hunt.He confirmed he honored an EFCC invitation on Nov. 28, describing the engagement as fruitful and expressing confidence that the probe would vindicate him.Malami described the EFCC’s allegations as baseless, illogical and devoid of substance, insisting they collapse under factual scrutiny.
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