BETTER DAYS AHEAD ... KUDOS TO THE COURAGE TO TRANSFORM : Jonathan hands over PHCN’s successor firms to buyers ... TheNation

…. Says, ‘Better days ahead for Nigerians’
President Goodluck Jonathan on Monday read riot act to Ministries, Departments and Agencies (MDAs) cautioning the power sector staff to re-orientate themselves in order to be able to meet up with their new roles under the on-going reforms in the power sector.
Giving the warning after formally handing over share certificates and licenses to new core owners of Power Holding Companies of Nigeria (PHCN) successor companies at the Banquet Hall, Abuja, to 10 Distribution Companies (DISCOs) and four Generating Companies (GENCOs), he said that it is no longer going to be business as usual.
He said the government is committed to providing the investors with all enabling environment in order to make them succeed in giving Nigerians uninterrupted power supply.
According to him, the Federal Government has provided the Nigeria Bulk Electricity Trading Company (NBET) capitalization fund of over $750 million to carry out its functions without financial constraints.
He said: “However, I must remind you that the work is not over. Your staff must re-orient themselves to play the needed new roles that have been assigned to them as a result of the reform.
“They must be prepared to collaborate efficiently with our private sector partners; business it can no longer be as usual; all the relevant MDAs must be ready to work in a more determined, proactive and result-driven manner,” he said.
On the government support for the investors, he said: “The administration is committed to providing all elements that are necessary for our private sector partners to succeed in providing Nigerians with uninterrupted power supply.”
“To start with, the Nigerian Bulk Electricity Trading Company (NBET), the off-taker, has been provided with a capitalization of $750 million positioning it to carry out its mandate without financial constraints.
“Arrangements are also on-going to ensure that the Nigerian Electricity Liability Company (NELMCO) is adequately funded, to assume all of the liabilities associated with the privatisation of the PHCN successor companies, as well as other related liabilities.”
He continued: “The new GENCOs owners are inheriting signed gas supply and transportation agreements, a new phenomenon in the gas-to-power industry, thereby moving the industry away from the prior status of best endeavor supply and transportation basis.
“Accordingly, we will maintain the agreed gas pricing policy in order to encourage new investments in gas supply and infrastructure development. The implementation of the gas policy will culminate in a willing buyer-will seller structure to establish a fully market-driven environment,” he added.
Stressing that adequate measures have been taken to resolve all labour related issues in the sector, he said that contributions of relevant MDAs in the realisation of the privatisation of the power sector was critical.
While urging Nigerians to exercise patience with the government, President Jonathan declared that better days are ahead in the power sector.
Also speaking at the occasion, Vice President, Namadi Sambo maintained that it is only the private sector investment in the power sector that can guarantee satisfying Nigeria’s yearning for stable power supply.
He said the new owners of the generating companies are expected to build up capacity from the present levels of performance to additional 5,000 megawatts within a period of five years.
“It is noteworthy to state that the privatization of the power utility is unique and different from previous privatization programmes in the country, that of the power sector is driven by the need for efficiency and investment rather than optimisation of proceeds to the government. Moreover, only bidders’ technical ability and financial capability influenced outcomes,” he stated.