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Fixing Nigerias Intractable Energy Crisis Is A PossibilityOzokwelu

Published by Leadership on Sat, 14 Jan 2017


Professor Dickson Enuma Ozokwelu is a world renowned expert in Energy Efficiency and Renewable Energy. In this interview with PEMBI DAVID-STEPHEN, the director and founder of Bestech Energy Corporation posits that solving Nigerias intractable energy problem is a possibility, arguing that such could be made possible through Diaspora expertise intervention.Can investment in electrical power infrastructure development help Nigeria recover from recession'The electricity industry contributes to economic growth in two ways. First, electricity is an important sector of the economy that creates jobs and value by generating, transmitting and distributing electricity throughout the economy. The electricity industry directly affects the economy by using labor and capital to produce electricity. This role is particularly important when economic growth and job creation are such high priorities around the world.Second, electricity underpins the rest of the economy as an input for nearly all goods and services. As a result, tariff increases and supply interruptions can shake whole economies. For countries like Nigeria that face chronic electricity shortages, continuing disruptions take a heavy toll on the whole economy.As an example, in 2012, the Conference Board of Canada reported that an investment in electricity infrastructure in Canada from 2011 to 2030 with total estimated cost of $347.5 billion, will add an average of $10.9 billion per year to real GDP and create an average of 156,000 jobs per year. Stated in another way, for every $100 million (inflation adjusted) invested in electricity generation, transmission, and distribution infrastructure, real GDP will be boosted by $85.6 million and 1,200 jobs will be created.Also, according to US Energy and Employment report on Construction and Installation in 2015, of the 6.8 million construction jobs in the nation, roughly three in ten workers (27%) support the energy industry through Generation and Fuels, Transmission, Wholesale Trade and Distribution, Storage, and Energy Efficiency technology construction. Of these, 1.8 million workers, over twothirds (68%) are employed by Energy Efficiency firms.Lastly, University of California Berkeleys Center for Labor Research and Education reported recently that small-scale solar can be more equitably distributed than it has been to date and create better jobs than large or utility scale solar (greater than 20 MW)According to international Energy Agency and CNN news of April 1, 2016, 600 million people or better said 70 per cent of the population in sub-Saharan Africa currently lack access to electricity. Half of all businesses say that the lack of reliable electricity is a major constraint. Power outages cost African countries an estimated 1-2 per cent of their GDP annually.Based on the aforementioned discussions, there is no other better place for Nigeria to invest for recovery from recession than electrical power, particularly small sale distributed wind, solar and micro-hydro power systems.What is needed is a technology that circumvents transmission since 60+% of African population including Nigeria are off grid. Such approach is labor intensive and will therefore create lots of jobs leading to poverty alleviation during implementation. Right after the early part of its implementation, these power systems will begin to usher in energy use related jobs particularly in the rural areas and hence help to pull Nigeria out of recession.One critical step in the process is implementation. Let the dreamer implement the process. Very often once we get some idea and it sounds simple we think we can do it only to bastardise the whole process, resulting in dismal failure. What is described here is best done by the dreamer if best results are expected. Let the dreamer implement the entire process.One of the major promises of the present administration in Nigeria is to ensure stable electricity across the country. But that has not been so. What do you think is the problem' Can you proffer solution to this seemingly intractable problem'The problem with sustainable generation and distribution of electricity in Nigeria is ridden with many problems. I will attempt to discuss them under the following subheadings:-absence of well constituted Regulatory Commission:Since this administration came into office about one and half years ago, the Nigerian Electricity Regulatory Commission, NERC has been run by a single person who is also the Acting Chairman. There are supposed to be seven members of the commission, consisting of one member from each of the six geopolitical zones and a chairman. To drive the point home, this is like a soccer match going on without a referee. Any of the players can even score goal against his side because there is no competent referee to enforce the rules, hence so many mistakes are being made in the power sector. Yet the power sector is the most strategic sector for development of the country!-absence of well trained, qualified, and experienced personnel in leadership positions in the power sector.Because of the technical nature of this sector, we need technocrats with competency in the sector to provide leadership in the sector. Being a professor or having a PhD does not guarantee competency. We have seen that some academically brilliant fellows sometimes have problem applying their knowledge. So being a professor or having a PhD is great but we need those who in addition have relevant experience as well. It is shameful that we have excellent technocrats of Nigerian origin scattered all over the world whom we congratulate when they are employed by different reputable agencies around the world instead of getting them home particularly when we need their skills to solve our national problems. The Nigerian power sector needs emergency attention and we need well experienced Nigerians in Diaspora to come home and assist us to fix the sector. We need people with not only technical qualification and experience but also policy experience in the energy sector of advanced countries like USA, people who have experience working with people from diverse background, good people skills and enough international contacts to attract international technical and financial assistance as needed. The nominee for the Chairman of NERC particularly should have the profile presented above plus passion for helping his country Nigeria.-current Sector structure is faultyCurrent structure has three separate entities namely generation (Gencos), transmission, and distribution (Discos). This created a problem where Gencos sell to the Discos through a bulk trader who does not promptly pay the Gencos. This inability of the Gencos to control their revenue is the major reason why it is difficult for the Gencos to get loan to maintain or expand their operations.Furthermore, some users of electricity, including government offices have not been paying the Discos and the Discos are citing it as reason for not paying the Gencos through the bulk trader. This needs to be resolved ASAP because it is not sustainable. This makes the government to be part of the problem and not the solution. It makes the argument that privatisation is the problem a weak one.-So in conclusion, what is required is careful planning and participation of experienced Nigerians from any part of this earth who already have the experience and expertise in the different strategic parts of our economy.Electricity generation and distribution is the most strategic sector for the economic development of any country, Nigeria included. Everybody knows it. Yet for the past decade we have been leaving this most important sector in the hands of mediocre to manage. How can we be doing the same thing over and over again and expecting different results'We should bring home our experts especially those who are capable and willing to come home and help solve our problems in this and other technical sectors. For example, in order to significantly improve state of electricity generation and distribution in Nigeria, a competent NERC Chairman should be able to lead a thorough assessment of the status quo in the sector and work with his team or energy council to develop a good plan to fix the sector.Next he will tap from his wealth of experience and international contacts to organize resources for regulation, generation, transmission, and distribution. Resources should be organized along the lines of financial resources, physical resources to include transmission lines, gas pipelines et cetera and human resources to include individuals with expertise, training, qualification and relevant experience in the subject matter space.Of course the nominee for the NERC chairman must have good people skills to work well with the Power Minister and other members of the NERC commission and Energy Council to implement the plan for the sector. If necessary, a state of emergency could be declared in the power sector to circumvent bureaucracy and expedite implementation. Lastly, based on the definition of management, he should set up measurements of the sectors accomplishments after implementation to know whether his goals are being met and if not to tweak his plans again to drive towards his measurable goals.
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