Sunday, February 4, 2024

Analysis of Gov. Uzodimma's 15 - Priority Sectors: Electricity




By Ben AHANONU 


One of the hallmarks of a great leader is his/her ability to identify the needs of the people and conceptualize policies, development projects and programmes towards solving those needs.


In addition, creation of employment opportunities in robust partnership with the private sector is a top priority for nearly every people - oriented government, especially in countries with large unemployed and underemployed youth populations; while, the main economic objective of every purposeful country or state is to generate, supply and distribute enough electricity to power its economy.


However, irregular power supply and skyrocketing cost of electricity are hurting businesses in Nigeria - impacting negatively on the economy and invariably hampering the ability of the government and the private sector to create meaningful employment opportunities. In fact, it cannot be overemphasized that businesses need electricity to function, grow, create employment and other opportunities for the people.


Meantime, research has shown that for every 1% increase in electricity supply, an economy is expected to grow by 3.94%, which means that electricity is quite essential in the delivery of fundamental services such as education, health and other social services.Therefore, relieving the electricity constraint is critical.


 It is estimated that Nigeria alone will have a population larger than the United States by around 2045 — but it can only boast of 2 percent of America’s electricity generation capacity - such is scary.


If millions of young Nigerians especially Imo people are to escape poverty, the challenges of large-scale power generation, supply and distribution must be addressed holistically.


During the late 18th century, advancements in physics and engineering paved the way for the discovery of electrical energy. The development of electrostatic generators and the invention of battery laid the foundation for harnessing and utilizing this new-found power source. However, it was not until the early 19th century that electrical energy changed the lot of the industrial world.


Equally, the Industrial Revolution was made possible by the harnessing and application of electrical energy. This transformative technology quickly became the major driving force behind industrial growth.


The advantages of access to a steady supply of cheap and abundant electricity, carried Britain to a peak of relative economic success in the middle of the nineteenth century.


Certainly, electrical energy acts as a catalyst for innovation and drives the implementation of the fourth industrial revolution, known as Industry 0 technology that integrates digitalization, automation and data exchange to create "smart factories." These factories utilize electrical energy to connect and synchronize various processes, optimizing production efficiency and enabling real-time decision-making.


One indisputable fact is that if electric power supply is scarce, it hampers output growth resulting in a Malthusian steady-state (positive extensive effect but negative intensive effect) but when electric services are abundant, the economy exhibits the behaviour of the “modern growth regime,”characterized by steady growth in both income per capita and the level of technology.


Late Chief Sam Mbakwe PhD, was elected as the first civilian governor of the state in 1979, on the platform of the Nigeria People’s Party, NPP, and following his inauguration, one major goal of his administration was rapid industrialization of an underdeveloped State that was still reeling from the devastation of an ill-fated 30-month-war that ended in 1970.


To achieve that goal, the government sought to provide electricity to power small-scale industrial clusters in the state and which culminated in the establishment of Amaraku Power Station in Isiala Mbano  Local Government Area - the first independent power generation, supply and distribution effort in Nigeria.


The power plant functioned optimally and supplied electric power to rural communities that kick-started rapid economic and infrastructural development in the outer reaches of the State.


Unfortunately, the power plant was sold by one clueless military administrator - a clear manifestation of bad leadership and lack of foresight.


Upon assumption of office on January 15, 2020, Governor Uzodimma recognised the great need to tackle electric power insufficiency in the state.


Pursuant to this goal, the Shared Prosperity Administration is currently partnering with the United Nations Development Programme (UNDP), Energy Commission of Nigeria (ECN), the Federal Ministry of Environment, the Federal Ministry of Power and other willing corporate organizations in the development of interconnected mini-grids as sure power sources in the state.


Nonetheless, I advise Distinguished Senator Hope Uzodimma to go one step further by declaring a state of emergency in the power sector as a faultless demonstration of his determination to fix the seemingly intractable issue.


I equally recommend the establishment of model power plants akin to the defunct Amaraku thermal power plant in the three Senatorial Zones, which will be fired with gas that is abundant in the State.


Moreover, opportunities should be created for both local and foreign investors with excellent track record in the power sector so as to avoid the Atiku - led  privatization of the power sector that has landed Nigeria in a recurrent and miserable cycle of poor power generation, supply and distribution.


It is so much that Nigerians now feel nostalgia for the era of National Electric Power Authority (NEPA), because it was a lot better.


 

I also advise that alternative sources of energy especially renewable energy should be exploited for the generation, supply and distribution of high quantities of electricity at relatively low prices.


Without doubt, the impunity and monopoly of the Enugu Electricity Distribution Company, (EEDC) has taken a turn for the worse since the beginning of Year 2024, as Imo electricity consumers continue to give a groan of dismay under the yoke of highly inflated bills for darkness occasioned by near - zero power generation, supply and distribution even as the EEDC has made the acquisition of pre-paid metre an uphill task despite government assistance because of the desire of the owners of that inefficient establishment to continue their heartless milking of Imo electricity consumers with unreasonable estimated bills.


Therefore the Imo State Government should find a way to rein in the grossly inefficient and ineffective EEDC - with clear lack of competence and save Imo State and the people from abuse and continued humiliation by the electricity distribution company that seems to be carrying out a political vendetta because the major stakeholders are members of the opposition, who are not only mindful of profit maximization but have tried and failed woefully in their efforts to unseat Distinguished Senator Hope Uzodimma.


Indeed, with the unending evolvement of technology, electric power will remain the lynchpin of continued progress and innovation, hence the Shared Prosperity Administration of Distinguished Senator Hope Uzodimma should as a matter of urgent public importance, pursue an aggressive policy on power that will arrest and resolve the electric power deficiency in the State, as such will fast- track industrialization - a major part of the cardinal goals of the Shared Prosperity Administration.


Commendable and of strong interest is the Orashi Power Development Company, another breathtaking initiative of His Excellency, Distinguished Senator Hope Uzodimma, which will utilize the abundant gas reserves in Imo State amounting to over 200 trillion cubic feet (TCF) with additional potential of 600 TCF,  to generate, transmit and distribute power to Imo electricity consumers including businesses and industries, when it comes on stream.


Today, as the world reaps the benefits of electricity, Imo State under the leadership of Distinguished Senator Hope Uzodimma, can set the pace and become a model in terms of independent power generation, supply and distribution given the liberalization of the sector by former President Muhammadu Buhari.


Let me declare that Uzodimma with enormous predilection for public service, achievement of innovative and transformational goals, visionary leadership and probity like late Dee Sam Mbakwe PhD, makes things happen. It is incontrovertible and even the naysayers know that it is true.


Let God Almighty continue to bless Imo State.


Hon. Prince Ben AHANONU is former Special Adviser (CSDP) to the Governor of Imo State.

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