Power Sector Investors Lack Capacity, Says NLC

The President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, has decried the persistent collapse of the national grid, blaming the situation on inadequate investment in the power sector by Electricity Distribution Companies (Discos).
Speaking with journalists, Ajaero described the privatisation of the power sector as deceptive, lameregistrationgeriathe ns are paying higher tariffs without receiving commensurate service.
He called for ansive review of the entire sector, insisting that investors have failed to improve on the state of the industry more thanstepears after taking over.

“Over a decade after the much-celebrated privatisation of the power sector, electricity generation remains stagnated at between 4,000 and 5,000 megawatts — virtually the same level as in the pre-privatisation era,” he said.
The NLC president argued that private sector investors lacked both the technical capacity and financial strength required to effectively manage the nation’s electricity assets.

“Instead of progress, we are witnessing regression. Instead of light, we have darkness. The national grid collapses with alarming frequency, sometimes plunging the entire nation into blackout.
“This is not the turnaround Nigerians were promised. The power sector privatisation has turned out to be a grand deception, a transfer of public wealth into the hands of a few who lacked the technical expertise and financial backbone to manage the nation’s electricity assets.”

Ajaero further alleged that investors acquired the Distribution Companies (DISCOs) and Generation Companies (GENCOs) with minimal capital outlay and are now shifting the burden of loan repayments onto consumers through high electricity tariffs.

It will be recalled that the privatisation of the defunct Power Holding Company of Nigeria (PHCN) was concluded on September 30, 2013, during the administration of former President Goodluck Jonathan. The sector is currently regulated by the Nigerian Electricity Regulatory Commission (NERC).