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Senate President Wants Buhari To Declare State Of Emergency In Power Sector
The Senate President, Ahmad Lawan has called on the Executive to, as a matter of urgency, declare a state of emergency in the power sector to overcome the legion of problems stalling steady power supply in Nigeria.
Lawan stated this on Monday while declaring open a one-day round-table discussion with the theme: “Addressing Nigeria’s Power Problems” organized by the Senate Committee on Power.
The Senate President declared that the privatization of the power sector in 2005 and 2013 was a grand scheme conceived with the intention to defraud Nigeria.
According to him, “For me if there’s any sector of our economy that is so important and yet so challenged, it is the power sector. I believe that this is a sector that needs a declaration of emergency.
“This is an opportunity for us in this round-table to exhaustively discuss not only the problems of the power sector in Nigeria but the solutions and way forward.
“The truth is that we all know what is wrong. What we really need to do is to have the political will to take on the challenges generally.
“From the electricity power reform of 2005 to the privatization of Gencos and Discos and to what is happening today, we know that everything is a fraud. If we play the ostrich, in the next ten years we will be talking about the same things.
“I think the time has come for us to have courage. I want to remind us, that we have signed the African Continental Free Trade Agreement. What will give us an edge is to have a competitive environment.
“Our industries and businesses must be able to produce things that can compete favourably with products produced in other countries in Africa. We are not in that position today, and we all know the consequences of that.
“Even our citizens, who have capital, will rather relocate to Ghana, produce whatever they want and bring to Nigeria to sell. Where does that leave our country? No employment opportunities; Nigeria becomes a dumping ground”, he lamented.
The Senate President, therefore, called for a review of the privatization exercise undertaken by the Goodluck Jonathan administration which led to a takeover of the power sector by private Generating Companies (Gencos) and Distribution Companies (Discos).
Lawan added that the National Assembly would make a significant contribution to the reform of the power sector through enabling legislation required to turn around the fortunes of power generation and distribution in Nigeria.
“If we went wrong with our privatization of Gencos and Discos, the time has come to look into it.
“Whatever we have to do to review these things, we should do. We must do it in the interest of the people of this country. We must admit there was something done wrong.
“This round-table actually is an idea of the Senate, that we should come together to talk among ourselves. Ours is to provide legislative interventions, but we are also part of the government.
“Therefore, whatever that is required to support the executive arm of government to turn-around this sector, in fact we are more than prepared to do so through legislation.
“If we are going to amend the power sector reform, we are prepared to do that, and expeditiously. Tell us where the issues are, because we can’t afford to delay any action to make the power sector of this country perform.
“In the sixties, we were comparing ourselves with Indonesia, Malaysia and the rest, now we started comparing with Ghana, Togo. With all due respect, that tells us we are not making progress where other countries are.
“This round-table is an opportunity to come up with measurable roadmaps because we are not going to leave the implementation to the executive alone. We want to participate in every inch of the way.
“Every bit of what is to be done; we want to be part of it, so that we can contribute meaningfully to take the power sector to the next level.
“It is really disheartening that we are still talking about 4,000 megawatts. I don’t understand this. Other countries within Africa are talking of so much, even Ghana is three times better than what we are doing.”
He also called on the federal government to deploy the political will towards revamping Nigeria’s failing power sector. “We are yet the largest economy in Africa, for how long can we sustain that position?
“I believe that we have to declare a state of emergency on Power, and courageous decisions must be taken by the government”, the Senate President said.
The headquarters of Heritage Bank at Victoria Island, Lagos, was besieged on Thursday by members of the labour union, protesting the recent dismissal of 1,000 support workers.
The National President of the National Union of Banks, Insurance and Financial Institutions Employees, Comrade Anthony Abakpa, led the demonstration, condemning the bank’s management for what he deemed a lack of adherence to due process in the termination of employment contracts.
Speaking during the protest, Comrade Abakpa asserted that the leadership of Heritage Bank failed to follow established protocols before executing the mass layoffs.
He emphasised the union’s commitment to pursuing justice for the affected workers, vowing to escalate their demands until the bank’s management rectifies the situation.
“We will intensify our demands for justice,” declared Comrade Abakpa, urging the bank’s management to take corrective action to address the grievances of the dismissed workers.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, clarified that Nigeria is not utilising its foreign reserves to bolster the naira, despite recent fluctuations in reserve levels.
Speaking from Washington DC, where he is attending the International Monetary Fund-World Bank Spring Meetings, Cardoso highlighted the influx of $600 million into Nigeria’s reserves account within the past two days.
While the naira has experienced a notable appreciation against the dollar in recent weeks, climbing over 40% from approximately N1,900/$ to about N1,000/$1, Nigeria’s foreign reserves have been dwindling. As of April 15, reserves dropped to approximately $32.29 billion, marking the lowest level in over six years.
Cardoso emphasised that the shifts in reserves are typical for any country, where various financial obligations, such as debt repayments, necessitate withdrawals.
He stated, “What you’ve seen with respect to the shift in our reserves is normal in any country’s reserves where, for example, debts are due and certain payments need to be made. They are made because that is also part of keeping your credibility.”
Continuing, Cardoso underscored the dynamic nature of the market, advocating for a system driven by willing buyers, willing sellers, and price discovery.
He emphasised, “The shift in our reserves has really little or nothing to do with defending the naira, and that is certainly not our objective.”
Dangote Petroleum Refinery has made headlines by announcing a further reduction in the price of diesel, dropping it from ₦1200 to ₦1000 naira per litre.
The refinery’s decision comes on the heels of its recent supply at a significantly reduced price of ₦1200 per litre, which was introduced three weeks ago, signifying a remarkable 30 per cent decrease from the previous market price of approximately ₦1600 per litre.
This substantial reduction in diesel prices at Dangote Petroleum Refinery is expected to reiterate positively throughout various sectors of the economy, potentially serving as a catalyst in alleviating the persistently high inflation rate in the country.
In a statement last week, Aliko Dangote, Africa’s wealthiest individual and the owner of the refinery, expressed his optimism regarding the potential impact of the price reduction on inflation in Nigeria.
“I believe that we are on the right track. I believe Nigerians have been patient, and I also believe that a lot of goodies will now come through. There’s quite a lot of improvement because if you look at it, one of the major issues that we’ve had was the naira devaluation that has gone very aggressively up to about ₦1900,” he remarked.
As anticipation builds around the implications of this move by Dangote Petroleum Refinery, stakeholders and consumers alike remain hopeful for the positive effects it could bring to the Nigerian economy in the coming months.
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