Power sector in Nigeria has been enmeshed with controversies in spite privatization which saw the unbundling of power supply in the country paving way for the generating, distribution and transmission companies. The initial plan of the government is to ensure that the three divisions provide adequate supply of power to the country. Surprisingly, the good strategy which apparently worked in other countries before it was adopted in Nigeria has failed.
The restructuring and multi-billion dollar investments, has failed to ensure stable electricity supply, with industries and enterprises worst hit. To give succour to some category of businesses, the federal government’s Rural Electrification Agency (REA) initiated a project tagged Energising Economies Initiative (EEI) that is meant to give stable and affordable power supply to some clusters of Small and Medium Scale Enterprises (SMEs).
The Association for Public Policy Analysis (APPA), in its latest analysis, noted the impact of the EEI of REA under the supervision of the Minister of Power, Works and Housing. The National President of APPA, Princewill Okorie, said the improved power service is remarkable. The REA said it was installing solar power in the Kano market and gas-based technology in the three other SMEs’ clusters. REA said over 50,900 shops and a customer base of over two million Nigerians would benefit from the projects.
The Managing Director of REA, Damilola Ogunbiyi, was of the view that EEI was solely targeted at the Micro, Small and Medium Enterprises (MSMEs) across markets, shopping plazas, complexes and industrial clusters. APPA on its own part said the projects would raise productivity of the MSMEs sector in Nigeria, promote higher payment collection for power operators, and that it had lower Capital Expenditure (CAPEX) requirements to deploy to target MSMEs’ customers.
Although, the Minister of Power, Works and Housing, Babatunde Fashola has assured the country that the sector will improve not much could be delighted since power still hovers around 4000 Megawatts.