Power Station
As new investors prepare to take over the power utilities in line with the privatisation programme, Chika Amanze-Nwachuku, Ejiofor Alike and Chineme Okafor write on the need for efficiency and accountability in the management of the power assets so as to meet expectations of the various stakeholders
The power sector reform and privatisation, which started with the enactment of the Electricity Power Sector Reform Act (EPSR) on March 11, 2005 recorded a landmark success last month as 13 of the preferred bidders for the generation and distribution companies created from the unbundling of Power Holding Company of Nigeria (PHCN) paid up 75 per cent balance of their bid prices for the power assets.
An estimated N517.86 billion has been realised so far from the sale of the generation and distribution companies. The only bidder that failed to pay the outstanding balance was Interstate Electric Limited, a company promoted by billionaire businessman, Mr. Emeka Offor. Interstate Electrics won the bids for the Enugu Disco.
Poor outages have been a major brake on growth in Nigeria, pushing up the cost of business for manufacturers, thus making the country uncompetitive as an investment destination for industry. This is despite a population of over 160 million people, making the country one of the world's largest untapped frontier markets.
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