Fashola – Why Privatisation Has failed

A snippet from a news story on This Day newspaper posted on the allafrica.com website has the minister of power sharing his opinion on the state of the powersector. According to Fashola, the privatisation exercise has largely performed below the expectations of most Nigerians because it has challenges, which included political interference, financial illiquidity, poor metering of consumers, debts owed in the market, inadequate market governance; and below par technical capacity of operators.

“Without a doubt, the privatisation of power is the way to go. Admittedly it has not yet delivered the kind of results we were all made to expect, for some of the reasons I have stated; political interference, liquidity, metering, debts, governance, technical capacity of operators and the political dishonesty with which Nigerians expectation were raised to the sky,” Fashola said.
But I have no doubt at all, having studied the privatisation of Brazil, Mexico, India, South-Africa and China (who went through some or all of our current challenges), that reliable electricity will happen in Nigeria. It is not an event, it is a journey marked by positive trends that have occurred and will occur as the right solutions are deployed to challenges,”

he said whie speaking at a lecture in the University of Lagos

Speaking of the plans being made going forward, he said

“Government will be breaching its own contract in the same way we cancelled the privatisation of refineries in 2007 and will send a negative investment signal that we do not respect agreements; government will have to refund in dollars, all the monies paid by the Discos and Gencos most of which have been spent on almost 50,000 workers of PHCN who had to be paid; government will now have to re-employ those or other workers back to operate the assets and again increase salary and pension costs, when our recurrent cost is above 70 per cent of budget today”

Tomide Adeyeye

Federal University Of Technology (FUTA) Alumnus. I am constantly overwhelmed by the power of the written word and how it can transcend genres, stereotypes, and even time itself. This fascination drives my passion for writing.

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