{"id":72007,"date":"2020-03-02T18:17:44","date_gmt":"2020-03-02T17:17:44","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=72007"},"modified":"2020-03-02T18:17:44","modified_gmt":"2020-03-02T17:17:44","slug":"forensic-audit-and-the-clamour-for-regular-power-supply","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/","title":{"rendered":"FORENSIC AUDIT AND THE CLAMOUR FOR REGULAR POWER SUPPLY"},"content":{"rendered":"
\n
BY JIDE AYOBOLU<\/div>\n
\n
\nAccounts of the Electricity Distribution Companies (DisCos) are to be
\nsubjected to a forensic audit by the Federal Government. Besides,
\ngovernors have invited Minister of Power Sale Mamman to provide details
\nof the ongoing work at the $5.8 billion Mambilla Hydro Electrical Power
\nProject which will supply 3,050 megawatts on completion.<\/p>\n

The National Economic Council (NEC), has said the recommendation by the
\nNasir El-Rufai committee on the review of the ownership status of the
\nDisCos on forensic audit was adopted. Edo State Deputy Governor Philip
\nShaibu told reporters after the meeting, that the forensic audit of all
\nDisCos\u2019 accounts would ascertain the level of investment into the
\nassets they acquired. According to him, the El-Rufai committee requested
\nfor another two months so, it could tidy up issues surrounding the task
\ngiven it, one of which is getting state governments to come up with
\ntheir expenditure on the power companies. \u201cNEC received an update on
\nthe review of the status of the ownership structure of the electric
\npower distribution companies. The Kaduna State Governor, Mallam Nasir
\nEl-Rufai, briefed NEC on the progress so far made and responses so far
\nreceived from the general public. \u201cHe also told NEC that forensic
\naudits will be carried out on all the bank accounts of all DisCos and
\nalso that the state governments are to provide details of their
\ninvestments in the electricity distribution companies.<\/p>\n

The Nigerian Governors Forum (NGF) meeting recently, decided to seek
\nmore information on the Mabilla Power Project according to the
\ncommuniqu\u00e9 read by its chairman, Ekiti State Governor Kayode Fayemi. He
\nsaid: \u201cThe forum received a presentation from Hypertech Nigeria Ltd on
\nthe 3050MW Mambila Hydro Electric Power Project (MHEPP). The team
\nhighlighted that the project was executed between the Federal Government
\nof Nigeria and China Gezhouba Group Corporation (CGGC). \u201cThe team gave
\nan overview of the huge potential that is lying fallow in the Mambilla
\nregion which governors appreciated, but insisted that a presentation by
\nthe Ministers of Power and Water Resources would provide more granular
\npathway to what needs to be done.\u201d<\/p>\n

The Power minister said he had submitted a report to the Federal
\nExecutive Council (FEC) that the DisCos are the weak link in the power
\nchain. According to the minister, while about 13,000 megawatts are
\ngenerated, about 7,000mw are transmitted but the DisCos are only able to
\ntake about 3,000mw. But the DisCos rejected the minister\u2019s claim,
\nsaying the Transmission Company of Nigeria (TCN) cannot wheel 7000mw.<\/p>\n

A 2015 report of the Good Governance Initiative (GGI), a
\nnon-governmental organization advocating uninterrupted power supply in
\nthe country, says Nigerians spend N3.5 trillion on fuelling their
\ngenerators annually. Its President, Mr. Festus Mbisiogu, said intensive
\nresearch conducted by the body to ascertain the nega\u00adtive multiplier
\neffects of unsteady power supply last year showed that the
\nmanu\u00adfacturing sector spends over N800billion yearly on generators. He
\nadded that this is apart from about N2 trillion spent on running
\ngenerators by over 17 million Small and Medium Scale Enterprises (SMEs),
\nbanks, other corporate entities and traders across the country. He
\nexplained: \u201cIn the bank\u00ading sector, each branch spends over N4million
\non diesel in a month. When you multiply that figure by the number of
\nbank branches in Nigeria, it could be colossal. An average family man
\nspends between 60,000 and N100, 000 in a month on fuel, apart from the
\nmaintenance. \u201cWith over 6,133 bank branches and each expending
\nN4million on diesel a month, N48million will go down the drain in a
\nyear, and this will amount to N294.4billion per annum across all the
\nbranches. This means that not less than N1.5 trillion must have gone
\ninto diesel purchase in the past five years. This is outside the amount
\nspent on powering ATM points located outside banking premises and
\nmain\u00adtaining the generators, among other critical banking
\ninfra\u00adstructure\u201d, he stated.<\/p>\n

Financial experts say the amount spent on fuel and gen\u00aderators by
\nmanufacturers and SMEs will increase remark\u00adably this year as 2016 is
\nclearly the harshest since the 2008 global economic meltdown. The rough
\nbusiness climate has forced many companies to close shops, while the
\nsur\u00adviving ones are retrenching workers daily. Recently, the Organized
\nLabour raised an alarm that the food, beverage and tobacco sector of the
\nnation was on the verge of shutting down and that over three million
\njobs were at risk due to the inability of companies to meet the
\ncrip\u00adpling cost of production.<\/p>\n

The National Bureau of Statistics put the total number of SMEs in the
\ncountry at over 17 million, many of which rely on generators to run
\ntheir businesses as the country continues to grapple with abysmal power
\ngeneration. Looking at his own sector, the Chairman of Toiletries and
\nCosmetics Manufactur\u00aders Group, Mr. Ikpong Umoh, said \u2018 hopes were
\ndashed following the inability of the power generation companies
\n(Gencos) and Distribution Companies (Discos) to pro\u00advide the power
\nsupply needs of the citizens two years af\u00adter the privatization
\nexercise. He observed that the role of manufacturing in a develop\u00ading
\ncountry like Nigeria can\u00adnot be trivialized. He called on President
\nMuhammadu Buhari led the government to urgently save the manufacturing
\nsector from total collapse by providing constant power supply.<\/p>\n

At the time of the inauguration of President Muhammadu Buhari on May 29,
\nthe available electrical power in Nigeria was about 2,500 MW. But in
\nless than six months it has almost doubled. The Nigerian Ministry of
\nPower attributes this to the enhanced supply of gas to the nation\u2019s
\nnewly constructed gas power plants. Many Nigerians, however, believe
\nthat\u2019s only part of the explanation. The new owners of the electricity
\ngeneration and distribution entities that were part of the government
\nmonopoly before the liberalization of the electricity industry had to
\nsit up in view of the well-known no-nonsense disposition of the new
\npresident.<\/p>\n

Nigeria\u2019s National Population Commission reports there are 178.5
\nmillion people in the country. Electricity supply of 5,000 MW is grossly
\ninadequate for that many Nigerians. Even though access to electricity is
\navailable to only to about 55 per cent of the people, load-shedding for
\nrationing electricity is widely practised all over the country \u2014
\ndespite the big jump in the supply figure noted above. Much more than
\n5,000 MW of electricity is required for the socio-economic growth of the
\nnation. Energy planning experts using modern energy modelling tools
\nestimate that for the Nigerian economy to grow at a rate of 10 per cent
\nthe country\u2019s electricity requirement by 2020 will be of the order of
\n30,000 MW, and by 2030 it will be 78,000 MW. A greatly expanded
\nelectricity supply regime for Nigeria will require a detailed assessment
\nof the recent privatization of the nation\u2019s electricity generation and
\ndistribution infrastructure. The energy mix for electricity supply will
\nneed to be broadened from the current two of hydro and gas sources to
\nseven sources: hydro, gas, solar, wind, biomass\/biofuels, coal and
\nnuclear. Additionally, there will be a requirement for the strengthening
\nand expansion of the national grid along with improvement of
\ndistribution systems as well as promoting the development of fuels for
\ngas, coal and nuclear power plants. There is also the need to update
\nboth the National Energy Policy and the National Energy Masterplan and
\npass them into law.<\/p>\n

For enhanced security of electricity supply, there is the urgent need
\nfor expanding energy sources, from gas and large hydro to gas, hydro,
\nsolar energy, wind energy, biomass\/biofuels, coal and nuclear. The new
\npower plants can be built on the basis of public-private partnerships.
\nThe Government would then divest its involvement after some years in
\nline with the current policy of getting the private sector to handle
\ngeneration and distribution systems. Many advanced countries, along with
\nthe International Renewable Energy Agency and the Energy Commission of
\nNigeria, will guide the development of the large-scale renewable
\nenergy-based power plants. The Ministry of Mines and Steel Development
\nwould guide the development of clean coal power plants, while the
\nInternational Atomic Energy Agency and the Nigeria Atomic Energy Agency
\nwould guide the development of the nuclear power plants.<\/p>\n

Projects of the embedded generator type should be vigorously promoted at
\ndistribution networks to close the gap in local demand and supply of
\nelectricity. One way of doing this is to invite investors to be part of
\npre-packaged pilot projects in all the distribution companies. State
\ngovernments should take interest in embedded generation, as is already
\nthe case in Lagos State. It is observed that despite the government\u2019s
\nproclaimed desire to deploy renewable energy sources (RES) in the
\nnation\u2019s energy mix, there is no supporting legislation to support the
\nstated position. Government, rather, advocates \u201csome limited
\ninvolvement\u201d in financing renewable energy technologies, mainly in the
\nform of differential wholesale tariffs rather than direct capital
\ninjections. Government should as a matter of urgency embrace the current
\ntrend where many developing and emerging economies are vigorously
\npromoting renewable energy efforts through direct policy initiatives and
\nincentives.<\/p>\n

Solar power generation which seemed neglected is now receiving huge
\nattention, forming the centre of many power generation-focused
\nconversations in Nigeria. Power problems in the country mirror that of
\nmany energy markets in Africa. Nigeria\u2019s power ministry estimates that
\nabout 40,000 MW of electric power is required to satisfy the country\u2019s
\nindustrial demand but Nigeria only has about 12,000 MW of installed
\ngeneration capacity, of which around 3,500 MW is supplied by gas-fired
\nplants and hydropower systems. The majority of the gas-fired power
\nplants are now burdened by problematic gas supplies, arising from
\npipeline vandalism by militant groups operating in the gas-producing
\nregion of the Niger Delta. The Renewable energy program of the Nigerian
\ngovernment says \u201cabout 600,000 MW of electricity can be generated from
\njust one per cent of Nigeria\u2019s landmass.\u201d This implies that Nigeria
\ncan procure 100 per cent of its power from a renewable source such as
\nsolar. Nigeria has the potential to lead in utility-scale solar power in
\nAfrica, given its well-structured regulatory frameworks, the standard of
\nwhich is mostly absent in many other African countries.<\/p>\n

Nigeria has often been heralded for overcoming numerous systemic
\nobstacles but there remains one obstacle which many believe holds the
\ncountry back: a chronic shortage of power supply. With about 90 million
\nNigerians living without power, citizens are forced to live on
\nexpensively maintained generator sets. The effect of the lack of
\nelectricity is significant as it continues to hamper economic growth and
\nhurts investor confidence. However, a partnership between the World
\nBank, International Financial Corporation as well as local banks and
\nenergy firms in Nigeria could help assuage the pressing issue. The
\nLighting Africa Project, as it has been tagged, will focus on helping to
\ndevelop a private sector that will provide electricity, using solar
\npower, to up to a million households in Nigeria. The project will target
\nhouseholds without access to the national grid in rural communities over
\nthe next five years.<\/p>\n

To make this happen, the World Bank will play a key role as it will
\nprovide low-interest financing for investors and energy firms involved
\nin the partnership. One of the major goals of the project is to reduce
\nthe heavy dependence on kerosene lamps and gasoline-powered generators
\nwhich pose various health and environmental risks. Exploring solar
\nenergy could be a more realistic option to fix some of Nigeria\u2019s power
\nissues since building new national grids could cost billions of dollars.
\nIn the long-term, alternative clean energy will also help the country
\nmeet its ambitious plan to down emissions by as much as 45% by 2030 as
\npart of the landmark climate change deal reached in Paris. In line with
\nthis, Nigeria recently announced a ban on low-cost generators citing
\nhealth risks caused by emissions and fire hazards.<\/p><\/div>\n<\/div>\n

<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

BY JIDE AYOBOLU Accounts of the Electricity Distribution Companies (DisCos) are to be subjected to a forensic audit by the Federal Government. Besides, governors have invited Minister of Power Sale…<\/p>\n","protected":false},"author":1,"featured_media":38414,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-72007","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-opinions"],"yoast_head":"\nFORENSIC AUDIT AND THE CLAMOUR FOR REGULAR POWER SUPPLY - Pointblank News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FORENSIC AUDIT AND THE CLAMOUR FOR REGULAR POWER SUPPLY - Pointblank News\" \/>\n<meta property=\"og:description\" content=\"BY JIDE AYOBOLU Accounts of the Electricity Distribution Companies (DisCos) are to be subjected to a forensic audit by the Federal Government. 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MINISTER OF STATE FOR POWER, MOHAMMED WAKIL; GOV. RAMALAN YERO OF KADUNA STATE ; VICE PRESIDENT NAMADI SAMBO AND GOV. 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Besides, governors have invited Minister of Power Sale…","og_url":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/","og_site_name":"Pointblank News","article_published_time":"2020-03-02T17:17:44+00:00","og_image":[{"width":3500,"height":2336,"url":"https:\/\/pointblanknews.com\/pbn\/wp-content\/uploads\/2015\/05\/pic-6commission-of-transmmission-substatin-in-makurdi.jpg","type":"image\/jpeg"}],"author":"Our Reporter","twitter_misc":{"Written by":"Our Reporter","Est. reading time":"10 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/#article","isPartOf":{"@id":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/"},"author":{"name":"Our Reporter","@id":"https:\/\/pointblanknews.com\/pbn\/#\/schema\/person\/ba61acbe7e8967bcf3f3ba603d9db23c"},"headline":"FORENSIC AUDIT AND THE CLAMOUR FOR REGULAR POWER SUPPLY","datePublished":"2020-03-02T17:17:44+00:00","mainEntityOfPage":{"@id":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/"},"wordCount":1955,"commentCount":0,"image":{"@id":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/#primaryimage"},"thumbnailUrl":"https:\/\/pointblanknews.com\/pbn\/wp-content\/uploads\/2015\/05\/pic-6commission-of-transmmission-substatin-in-makurdi.jpg","articleSection":["Articles & Opinions"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/","url":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/","name":"FORENSIC AUDIT AND THE CLAMOUR FOR REGULAR POWER SUPPLY - Pointblank News","isPartOf":{"@id":"https:\/\/pointblanknews.com\/pbn\/#website"},"primaryImageOfPage":{"@id":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/#primaryimage"},"image":{"@id":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/#primaryimage"},"thumbnailUrl":"https:\/\/pointblanknews.com\/pbn\/wp-content\/uploads\/2015\/05\/pic-6commission-of-transmmission-substatin-in-makurdi.jpg","datePublished":"2020-03-02T17:17:44+00:00","author":{"@id":"https:\/\/pointblanknews.com\/pbn\/#\/schema\/person\/ba61acbe7e8967bcf3f3ba603d9db23c"},"breadcrumb":{"@id":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/#primaryimage","url":"https:\/\/pointblanknews.com\/pbn\/wp-content\/uploads\/2015\/05\/pic-6commission-of-transmmission-substatin-in-makurdi.jpg","contentUrl":"https:\/\/pointblanknews.com\/pbn\/wp-content\/uploads\/2015\/05\/pic-6commission-of-transmmission-substatin-in-makurdi.jpg","width":3500,"height":2336,"caption":"FROM LEFT. MINISTER OF STATE FOR POWER, MOHAMMED WAKIL; GOV. RAMALAN YERO OF KADUNA STATE ; VICE PRESIDENT NAMADI SAMBO AND GOV. GABRIEL SUSWAM OF BENUE STATE DURING OFFICIAL COMMISSIONING OF NDPHC\/ NIPP 330\/132\/33KV TRANSMISSION IN APIR, MAKURDI ON THURSDAY (7\/5\/15)."},{"@type":"BreadcrumbList","@id":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/forensic-audit-and-the-clamour-for-regular-power-supply\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/pointblanknews.com\/pbn\/"},{"@type":"ListItem","position":2,"name":"FORENSIC AUDIT AND THE CLAMOUR FOR REGULAR POWER SUPPLY"}]},{"@type":"WebSite","@id":"https:\/\/pointblanknews.com\/pbn\/#website","url":"https:\/\/pointblanknews.com\/pbn\/","name":"Pointblank News","description":"Just the news","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/pointblanknews.com\/pbn\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/pointblanknews.com\/pbn\/#\/schema\/person\/ba61acbe7e8967bcf3f3ba603d9db23c","name":"Our Reporter","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/pointblanknews.com\/pbn\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/83b3820ef93d502ae3a617b2c881ca42?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/83b3820ef93d502ae3a617b2c881ca42?s=96&d=mm&r=g","caption":"Our Reporter"},"url":"https:\/\/pointblanknews.com\/pbn\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/pointblanknews.com\/pbn\/wp-json\/wp\/v2\/posts\/72007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pointblanknews.com\/pbn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pointblanknews.com\/pbn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pointblanknews.com\/pbn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pointblanknews.com\/pbn\/wp-json\/wp\/v2\/comments?post=72007"}],"version-history":[{"count":0,"href":"https:\/\/pointblanknews.com\/pbn\/wp-json\/wp\/v2\/posts\/72007\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pointblanknews.com\/pbn\/wp-json\/wp\/v2\/media\/38414"}],"wp:attachment":[{"href":"https:\/\/pointblanknews.com\/pbn\/wp-json\/wp\/v2\/media?parent=72007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pointblanknews.com\/pbn\/wp-json\/wp\/v2\/categories?post=72007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pointblanknews.com\/pbn\/wp-json\/wp\/v2\/tags?post=72007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}