Electricity consumers under the aegis of the Nigerian Power Consumers Forum (NPCF) have expressed apprehensions over possible derailment of multi-million dollar power sector projects worth $1.661 billion targeted at expanding power transmission to 20,000 megawatts (MW) in the nearest future.
They said their fears of possible withdrawal of the multinational donors/financiers of power sector reform projects were heightened by the sudden removal of the erstwhile Managing Director of the Transmission Company of Nigeria (TCN), Usman Gur Mohammed by the Minister of Power, Saleh Mamman.
The NPCF in a statement signed by its General Secretary, Michael A. Okoh, further observed that this may likely reverse the progress so far achieved in the Power Sector reform programme of President Muhammadu Buhari’s administration.
According to the Forum, “The arbitrary removal of the TCN boss by the Minister of Power, Engr. Sale Mamman, defeats the objectives of due process in the federal government’s establishments and the overall objectives of power sector reform being championed by President Muhammadu Buhari.”
They recalled that the minister had in December 2019 summarily removed heads of agencies at the Nigerian Bulk Electricity Trading Plc (NBET) and Rural Electrification Agency (REA) but his actions were reversed days after.
“He has turned a deaf ear and went on to repeat such costly mistakes again at TCN against a circular issued by the Secretary to the Government of the Federation (SGF), Boss Mustapha on applying due process to sanction heads of agencies. In the case of Mohammed, it was clear that he had done no wrong for the minister to remove him”, they said.
The Forum urged President Muhammadu Buhari to immediately direct a reversal of the action to save the power sector from the budding dictatorship.
They argued that from 2017 when Mohammed assumed office at TCN, the firm which was the weakest link in the Nigeria power sector value chain, gradually transformed, raising transmission wheeling capacity from 5,000MW to 8,100MW, and recovering nearly 800 stranded containers of power sector equipment to deliver scores of power transmission projects.
Further, they cited that “The unprecedented installation of 75 power transformers across the nation by January 2020 was largely achieved through this scheme. TCN engineers were achieving this at the rate of less than 10% of contractors’ cost and delivery time.
According to the Forum, “That has saved billions of naira using the in-house engineers to complete power transmission projects. For instance, the Damaturu 330kV substation was achieved through this scheme. It was awarded in 2006 at $10.5 and N405 million but was not done, but TCN engineers completed it, and it has improved power supply in the northeast.
“With the poor electricity market settlement in the power sector, the company may be unable to deliver critical transmission projects that will improve the power supply experience of Nigerians under the Buhari administration.
“As we speak, the company is owed over N450 billion in unpaid balances plus interest by the 11 DisCos. To implement TREP, TCN attracted concessionary funding from multilateral donors.
“The French Development Agency & EU Grant was $500 million dollars, World Bank gave $486 million, AfDB gave $410 million, JICA brought $238 million and a grant to deliver capacitor bank in Abuja, Nasarawa and Lagos; World Bank is bringing another $27m for the North Core Project.
“All the projects totaling $1.661 billion except the North East Transmission Project which has been kept in abeyance until security improved are at various stages of implementation, because TCN now has the best implementation structure that has strengthened the confidence of these foreign financial institutions.”
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