PRIVATIZATION AND NATIONAL DEVELOPMENT IN NIGERIA:
A CASE STUDY OF NIGERIA’S POWER SECTOR.
BY
ERUNKE CANICE ESIDENE
REG. NO. NSU/SS/013/MSC/06/07
RESEARCH THESIS
IN PARTIAL FULFILLMENT OF THE AWARD OF MASTERS OF
SCIENCE (M.Sc) HONOUR DEGREE IN PUBLIC POLICY ANALYSIS, DEPARTMENT OF POLITICAL
SCIENCE, NASARAWA STATE UNIVERSITY, KEFFI.
SUPERVISOR:
MALLAM YAHAYA ADADU
DECEMBER, 2008.
CERTIFICATION
I hereby
certify that this research thesis on Privatization and National Development in
Nigeria: A Case study of the Power Sector has meet the requirements for the
award of M.Sc (Hons) Degree in Public Policy Analysis, of the Nasarawa State
University, Keffi.
–––––––––––––––––––––––– –––––––––––––––
Chairman,
Supervisory Committee Date
–––––––––––––––––––––––– –––––––––––––––
Research
Supervisor Date
–––––––––––––––––––––––– –––––––––––––––
Head,
Political Science Dept. Date
–––––––––––––––––––––––– –––––––––––––––
Internal
Examiner Date
–––––––––––––––––––––––– –––––––––––––––
External
Examiner Date
–––––––––––––––––––––––– –––––––––––––––
Dean,
Postgraduate School Date
DECLARATION
I hereby
declare that this research work in its original form has been carried out by me,
Erunke Canice Esidene with Registration Number NSU/SS/MS.c/013/06/07 of the
Department of Political Science, Faculty of Social Sciences, Nasarawa State
University, Keffi.
–––––––––––––––––––––––– –––––––––––––––
Erunke Canice Esidene Date
DEDICATION
I humbly
dedicate this research work to God Almighty for His mercy and the strength he
has given me to carry out the study. Enough respect goes to all lovers of
democracy, good governance, peace and stability across the world.
ACKNOWLEDGEMENT
I wish to
thank God Almighty for this work. My humble acknowledgment goes to my mum, Mrs
Elizabeth Erunke, my Sweet heart Blessing, and my little baby God Favour Erunke.
I am sincerely indebted to my friend, Austin Mbogo, Emeka Wogu, Bello Babanuma,
Mr Usman Abu Tom and all my Senior colleagues in Political Science Department.
I wish to recognize Master Beshiru Abu for his computer skills and that he has
put in this work to make it a success.
May I
specially acknowledge my HOD and Dean of Social Science Faculty Assoc. Prof.
S.A. Ibrahim, Mallam Yahaya Adadu, my erudite supervisor. He has been of
immense contribution to the success of this research. May I recognize specially
our vibrant academic gurus in the Political Science Department, Dr. S.M. Omodia
(Phd), Dr. Abdullahi Yamma (Phd). This feat is not complete without mentioning
my overall mentor, Prof. Inno Ukaeje, Prof. Sam Amdii, Dr. Jibril Abdulmumin,
and Alhaji Modibbo may God shower his blessing on all of you. And may he keep
you in all you do. Amen!
TABLE OF CONTENTS
Title
Page--------------------------------------------------------------------- i
Certification------------------------------------------------------------------- ii
Declaration--------------------------------------------------------------- ---- iii
Dedication-------------------------------------------------------------------- iv
Acknowledgement---------------------------------------------------------- v
Table of
Contents------------------------------------------------------------ vii
List of Acronyms
------------------------------------------------------------ viii
Abstract----------------------------------------------------------------------- ix
CHAPTER ONE: INTRODUCTION
1.1
Introduction/
Background to the study------------------------------------ 1
1.2
Statement
of the Problem--------------------------------------------------- 5
1.3
Research
Questions--------------------------------------------------------- 6
1.4
Research
Objectives--------------------------------------------------------- 7
1.5
Research
Methodology------------------------------------------------------ 7
1.6
Scope
and Limitations------------------------------------------------------- 8
1.7
Research
Hypothesis--------------------------------------------------------- 9
CHAPTER
TWO: LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.1
Privatization
------------------------------------------------------------------- 10
2.2
The
Concept of Development----------------------------------------------- 11
2.3
Privatization
and Commercialization in Nigeria------------------------- 15
2.4
Privatization,
Liberalization and National Development--------------- 17
2.5
The
Concept of Underdevelopment---------------------------------------- 21
2.6
The
Concept of Economic Growth----------------------------------------- 23
2.7
Privatization
and Liberalization in Global Perspective------------------ 24
2.8
Privatization
of Enterprises in Nigeria ------------------------------------ 28
2.9
Accountability
in the Power Sector and Nigeria National
Development------------------------------------------------------------------ 30
2.10 Privatization of PHCN and National
Development in Nigeria---------- 36
2.11 Challenges of Power Generation and
Nigeria’s Socio-Economic
Development------------------------------------------------------------------- 41
2.12 Nigeria’s Power Sector Reform --------------------------------------------- 51
2.13 The Alternative Energy
Option---------------------------------------------- 53
2.14 Theoretical
Framework------------------------------------------------------- 55
CHAPTER THREE
3.1
Research
Methodology------------------------------------------------------- 61
3.2
The
Study Population--------------------------------------------------------- 61
3.3
Sampling
Techniques--------------------------------------------------------- 62
3.3.1 Stratified
Sampling----------------------------------------------------------- 63
3.3.2 Simple
Random Sampling--------------------------------------------------- 63
3.3.3 Cluster
Sampling-------------------------------------------------------------- 64
3.4
Research
Instrument and Delimitation------------------------------------- 64
3.5
Method
of Data Analysis----------------------------------------------------- 65
3.6
Quota
Sampling--------------------------------------------------------------- 65
3.7
Purposive
or Judgemental Sampling--------------------------------------- 65
CHAPTER FOUR
4.1
Data
Presentation, Analysis and Interpretation--------------------------- 66
4.2
Testing
of Hypothesis-------------------------------------------------------- 79
4.3
Discussion
of Results--------------------------------------------------------- 82
4.4
Conclusion/Inferences--------------------------------------------------------- 82
CHAPTER FIVE
5.1
Summary
----------------------------------------------------------------------- 83
5.2
Conclusions--------------------------------------------------------------------- 85
5.3
Policy
Recommendations----------------------------------------------------- 85
References/Bibliography------------------------------------------------------ 88
LIST OF ACRONYMS
PHCN: Power
Holding Company of Nigeria
PWD: Public
Work Department
NESCO: Nigerian Electricity Supply Company
ECN: Electricity
Corporation of Nigeria
NDA: Niger
Dams Authority
NEPA: National
Electric Power Authority
IMF: International
Monetary Fund
WB: World
Bank
SAP: Structural
Adjustment Programme
NEEDS: National Economic Empowerment and Development Strategy
GNP: Gross
National Product
MDG: Millennium
Development Goals
ICPC: Independent
Corrupt Practices Commission
EFCC: Economic
and Financial Crimes Commission
AR: Aso
Rock
ND: National
Development
NIPP: National
Integrated Power Project
NDPHC: Niger-Delta Power Holding Company
AIT: Africa
Independent Television
NASS: National
Assembly.
ABSTRACT
Nigeria’s public policy thrusts over the years towards
the socio-economic and political growth, development and sustainability of the
system is largely bereft with abject lack of direction and vision. Hence, this
research attempts a plethora of Privatization and National Development
vis-à-vis Nigeria’s power sector reform. The thesis argues that social
responsibility is an integral aspect of good governance and must be so guided
with caution in the management of the affairs of Nigeria’s public space in
relations to the welfare of the people at large. The submission of this
research is that the present administration’s bid to restructure the power
sector does not seem to have the required answer to incessant power outage in
Nigeria. Hence, the nuclear energy option remains the available mechanism for
effective and efficient power supply in Nigeria. The research sums up with
conclusion and policy recommendations for improved performance of the already
comatose power sector in Nigeria’s Fourth Republic and beyond.
CHAPTER ONE
INTRODUCTION
1.1 INTRODUCTION/
BACKGROUND TO THE STUDY
The Nigerian
political economy is bereft with abject lack of policy focus, development,
progress, stability, efficiency, accountability, participation and
responsiveness on the part of state actors in the socio-economic scheme of
things. This is against the backdrop of poor governance arising from lack of
political will by the elite or ruling class who have literally sabotaged the
ailing Nigerian economy to a stand still. Inspite of very many economic
measures put in place to cushion the harsh realities of our time, the various
policies of government have grossly remained at the level of rhetorics without
corresponding outcome. Consequent upon the foregoing, there seem to be no
closer remedy geared towards revamping the Nigerian chequered economy, while
infrastructures are decaying, value orientation of both the elite and the
governed are diminishing at an alarming rate. Corruption through the art of
siphoning billions of public funds meant for major infrastructural development
(including the embattled power sector) are diverted into private pockets with
impunity. All of these clearly define the sorry state of the present Nigerian
economy as part of the problems of underdevelopment. Things however, are
falling apart in the affairs of governance in the Nigerian state while the
centre can no longer hold. However, it is interesting to note that one of the most critical aspect of
good governance and social responsibilities on the path of the state system is
the provision of goods and services as well as ensuring efficient service
delivery of such existentials for the overall interest of its people. However,
the capacity and the capability of the nation-state to cater for the teeming
population clearly defines who gets what, when and how. At the same time, the
majority interest becomes the core priority of government and its agencies in
the distributive processes of the wealth of nations. However, such acts of
distributive policies would only enhance the quality of lives of the people
only through such measures that fosters equity, fairness, national integration,
peace and tranquility, distributive justice, to mention but a few. The
aforementioned therefore becomes a veritable instrument for national cohesion,
stability and cooperation, socio-economic and political growth, development and
sustainability. All these are crucial as they are critical in policy frameworks
of nation-states in the present era of globalization. Policy objectives of a
nation-state directly or indirectly affects the direction of its internal and
external growth and development. Thus, the Nigerian privatization policies as
it affects power sector reforms is a function of its socio-economic and
political growth process. While this assertion is true, the policy and policy
directions of government shape as well as reinforces the level and direction of
change in the Nigerian political system as a whole. Privatization of the
Nigerian power sector constitutes an all-important area of government economic
reform strategy aimed at propelling Nigeria’s growth to greater heights in the
21st century and beyond.
The thrust of this thesis is to
expouse on the concept of privatization and its impacts on the Nigeria’s power
sector as well as examine the various situational constraints that follows such
policy actions in relation to the overall well-being of Nigerian citizens. The
thesis also considers the nuclear energy option as a veritable means of
sustainable power generation and distribution in Nigeria.
For the purpose of clarity, there is
the need to trace the ecology of the Nigerian power sector from history and
examine how it became transformed to the present status of Power Holding
Company of Nigeria (PHCN) today. The history of the Nigerian power sector is as
old as colonialism itself. Power generation in Nigeria could be traced as far
back as 1896 with the installation of the pioneer power station in Lagos under
the auspices of the then Public Works Department. The process of transmutation
then continued via the activities of stakeholders in the sector, namely, the
Lagos State Municipal Authority. However, the emergence of the Nigerian
Electricity Supply Company (NESCO) latter in 1929 witnessed an extension and
diversification of the power sector through the construction of the famous
Kurra Falls near the present Jos, capital of Plateau state.
The establishment of the Electricity
Corporation of Nigeria in 1951 marked a turning point in the power supply
process in Nigeria with the first capacity generation to the tune of 132kv
watt. Late in 1962, the Ijora power station in Ibadan was also put in place to
enhance further generation in Nigeria.
It is interesting to note that the
Niger Dams Authority was established in 1962 with the mandate to further
develop and enhance the hydropower potentials of the country. However, the
merger between the Electricity Corporation of Nigeria and Niger Dams Authority
gave rise to the abrupt change of nomenclature to the contentious National
Electricity Power Authority (NEPA) in 1972 (Cole, 1972).
Interestingly, however, the enabling
Decree No. 24 of 1972 gave the necessary impetus to the merger of both the ECN
and NDA, the essence of which the procedure defines the critical economic,
technological and social development of the Nigerian state as a whole. From the
foregoing, therefore, electricity consumption in Nigeria has become one of the
most crucial indices of growth, development and sustainabilities of both
government institutions and the people at large. Thus, a deliberate and
carefully planned effort by government to institutionalize a good maintenance
culture, due process, efficiency and productivity in the power sector informs
the present attempt to relieve the pressures on the public sector, and hence
place the responsibilities of generation and distribution of energy in private
hands. The primacy of this research therefore highlights key areas of concern
aimed at revitalizing the ailing power sector for an enhanced socio-economic
growth, development and sustainability of the Nigerian economy, in all its
ramifications (Ekpo, 1997).
1.2 STATEMENT
OF THE PROBLEM
The
relevance and usefulness of any piece of research is determined to a large
extent by its ability to address fundamental problems of society (Nigeria
inclusive). Thus the Nigerian electricity dilemma during the post-colonial era
has been a major constrain to socio-economic and political development and
sustainability. Thus, abject lack of electricity supply has largely
institutionalized the culture of absolute poverty, deprivation, want,
unemployment, high cost of generating sets, crippling of infant industries,
down-turn of medium and small scale enterprises, corruption, ineptitude,
inequality, lack of transparency and accountability, lack of responsiveness,
money laundering, total blackout, high maternal and infant mortality, lack of
economic growth, development and sustainability, sudden change from public
sector to private-sector driven economy with its attendant consequences, to
mention but a few. The fundamental questions to ask for the purpose of seeking
answers or solutions to the problem under review are: why has Nigeria not been
able to solve her problems of persistent power outage while she is busy
brandishing her big-brother status before other African countries like Niger,
Togo and Benin? What positive impact can privatization of the power sector
bring to the Nigerian economy? Why is there lack of participation of Nigerian
citizens in the privatization exercise? Why has the privatization of the power
sector being skewed towards the interest of few wealthy Nigerians to the
detriment of majority of the Nigerian masses. What could be the environmental
effect of nuclear energy option adopted by Mr President and why? Why has there
been massive cases of vandalization, illegal connection, theft of PHCN power
installations, corruption and the like? Why is it that there is absolute lack
of faith and hope on the current investigation on the power sector by
Nigerians? what is responsible for lack of public participation, among others.
These are major problems demanding solutions as far as this study is concerned.
It is in the interest of the aforementioned that the research is focused,
hence, geared towards the possibilities of enhancing power supply to all
Nigerians in the 21st century and beyond.
1.3 RESEARCH
QUESTIONS
For the
purpose of this study, the following set of research questions will be
considered:
1.
Does
privatization of Nigeria’s power sector impact positively on national economic
development?
2.
What
is the extent of civil society participation in the privatization of Nigeria’s
power sector?
3.
What
are the global implications of privatization of Nigeria’s power sector?
4.
Has
the efficiency of Nigeria’s power sector any link with privatization and
divestiture of the sector?
5.
Is
the lack of competition and enabling environment in Nigeria responsible for the
poor state of power supply?
6.
Privatization
of Nigeria’s power does not imply express national development in Nigeria.
1.4 RESEARCH
OBJECTIVES
Essentially, this research attempts
to produce a theoretical explanation of the privatization policy in relation to
Nigeria’s power sector and how it affects national development. The following
research objectives shall be considered:
i)
To
clearly define the relationship between privatization and the socio-economic
well-being of the Nigerian society.
ii)
To
fully understand the major challenges on the part of the Nigerian power reform
as well as define appropriate measures out of the dilemma.
iii)
To
ascertain the environmental cost implications of privatizing the energy
sub-sector in relation to the Nigerian political economy.
iv)
To
examine the implications of the global dynamics of privatization, deregulation
and di-vestment policies in Nigeria and Africa at large.
v)
To
evaluate the efficacy and commitment of the present administration in her bid
to probe public power funds that are being misappropriated by public officials
in Nigeria.
vi)
To
examine the environmental impact of nuclear energy option in an attempt by the
federal government to profer lasting solution to epileptic power supply in
Nigeria.
1.5 RESEARCH
METHODOLOGY
Thus the researcher adopts the use of
both primary and secondary sources of data for a better understanding of the
issue being researched. Primary sources of data therefore includes the use of
questionnaires and observation as well as face-to-face contacts with the
respondents. The secondary source of data collection for the research involves
the use of information sources to include, among others, government
publications, journals, periodicals, research papers, magazines, papers
presented on similar topic by scholars, to mention but a few. This is to
enhance the efficacy of the study. The result of the sample will also be
subjected to further empirical test through the use of chi-square,
goodness-of-fit to enhance viability and scientific outlook of the research.
1.6 SCOPE
AND LIMITATIONS
This research seeks to look at the
policy underpinnings of privatization of Nigeria’s power sector and its
implications on the nation’s development process within the Obasanjo’s regime
(1999 – 2007). Essentially, Nigeria’s socio-economic policies in the 21st
century attaches primacy to the issues of privatization, liberalization,
divestment and deregulation which are concepts and practices akin to the
Bretton wood system of the IMF/World Bank. Thus, the thesis exposes the
researcher into further evaluation of the aforementioned as well as assessing
the level of significance on the political, socio-economic and cultural lives
of the people and the Nigerian nation state.
By extension, however, the
limitations and constraints of this study encountered are enormous. Of utmost
importance is the time factor, finance, inadequacy of documented materials for
research, to mention but a few. All these are major encumbrances on the path of
the researcher in the process of carrying out this onerous task.
1.7 RESEARCH
HYPOTHESIS
The following hypotheses were drawn
to guide this research.
1)
There
is a relationship between national development and privatization of Nigeria’s
power sector.
2)
Privatization
of the power sector does not have the potential of enhancing efficiency of
power supply in Nigeria.
All the above mentioned hypotheses
shall be tested through the use of quantitative analysis to accept or reject
them.
CHAPTER TWO
LITERATURE REVIEW
2.1 PRIVATIZATION
The concept of
privatization is multidimensional in outlook. In the first place, privatization
could be used to mean the tendency where government shares are sold to private
investors. This definition means that such government enterprises and its
ownership are now being transferred to individuals while government only step
aside as a regulatory agent (Pan Africa Summit, 2000). By extension therefore,
the concept of privatization does not in anyway suggests outright sale of
government property per se. It however partially removes government from the
scene as rightful owner while at the same time, ensuring government’s
regulatory roles to check abuses of the market focuses (Wogu, 2007).
Going by the
foregoing analysis, it is the opinion of the researcher to add that there is
therefore a moral linkage between the concept of privatization and national
development. However, the concept of development here can be said to be a vague
concept. Privatization therefore may not necessarily enhance socio-economic
development. Development in this sense, can be used in its actual sense to
refer to individual human and societal growth, progress, increased skills,
sustainability, high standard of living, low death rate, high level of
literacy, absence of diseases, low crime rate and absence of corruption.
(Usman, 2003) Development at the national level portends capacity utilization
and institutional building, structural differentiation, nation-building
practices, better and sustainable socio-economic policy options. This appears
to be the actual linkages between the privatization policy and national
development in Nigeria. Similarly, the researcher is here left with no option
than to emphasize that privatization is an adaptation of liberalization. The two
concepts, however, are mutually reinforcing, liberalization in its real sense
therefore could mean some level of openness, removal of obstacles,
restrictions, excessive tariff and regulation. Therefore, we can also say that
a liberalized economy is an open economy, free and competitive economy where
everyone is at liberty to compete in a free market system aimed at profit
maximization (Cook and Patrick, 2000).
2.2 THE CONCEPT OF
DEVELOPMENT
Development has been interpreted in
different ways by different people. However, this study embraces both
traditional, dependency and the contemporary or new development thinking.
By extension, traditional development
means the capacity of national economy, whose initial economic condition has
been more or less static for a long time, to generate and sustain an annual
increase in its Gross National Product (GNP) at a fairly progressive level
(Todaro and Smith, 2003). However, to this researcher, development within this
context is purely economical and the economic index as above may not
necessarily reflect the living conditions of the people in Nigeria’s
privatization process. It is the conception of this researcher that the
benefits of privatization policy in Nigeria should extend to all segments of
the society. This process is referred to as trickle-down effect. Besides,
development by implication can only be given the rightful coloration in terms
of change, new innovation and meanings it brings to the lives of the people
(Rogers, 1969).
Going by the foregoing analysis,
development can be used as a synonym of westernization. This means for a
nation-state to subsist, it must therefore embibe the cultures and traditions
of the western capitalist worlds of Europe and America. In the light of the
above, Ake (2001) pointed that development is modernization and the latter is
equal and proportional to the former. To Ake (2001), development is an
off-shoot of capitalism and the two concepts are mutually reinforcing. Thus we
can clearly see from his school of thought that:
… In its most common form, modernization theory posits
an original state of backwardness or underdevelopment characterized by, among
other things, a low rate of economic growth that is at least potentially
amenable to alteration through the normal process of capital. This original
state of backwardness is initially universal. According to the theory, the
industrialized countries have managed to overcome it. All the other countries
could conceivably overcome backwardness too it they adopted appropriate strategies…
(2001:18).
From the foregoing, it can be deduced
that development can be made possible through the replication of western
paradigm of socio-economy development. But the gap in this literature as it
relates to Nigerian privatization process is that virtually all economic
measures used in developing countries are merely packaged and delivered to us
from the West. And these packages are alien to African cultures and practices.
Therefore, the options can scarcely find a fertile ground to subsist in the African
soil. Therefore, privatization, inspite of its seemingly relevant postures, may
not yield the required results in terms of national growth, development and
sustainability.
However, the disappointing
performance of most Third World countries of Africa, Asia and Latin American
may well suggest the move towards a new thinking of development practices. This
is to say that mere increase in per capita income without a corresponding
equity and fairness in the distribution of socio-economic good could bring
about disparity, poverty, disease, hunger, illiteracy, high level social
malaise, exam malpractice, corruption in both high and low places, epileptic
power supply and gross indiscipline in the Nigerian system as a whole (Ake,
2001).
These phenomena can aptly be
described as growth without development which shows that every other approach
to national development is traditional and fall short of acceptable standard of
socio-economic development thinking. Hence there is every need for a shift in
paradigm in order to properly address development problems of Third World
countries.
According to Seers (1969):
The questions to ask about a country’s development are
therefore: what has been happening to poverty? What has been happening to
unemployment? What has been happening to inequality? If all three of these have
declined from high levels, then beyond doubt this has been a period of
development for the country concerns. If one or two of these central problems
have been growing worse, especially if all three have, it would be strange to
call the result ‘development’ even if per capita income doubled (1969:32).
From the above excepts, development
therefore means the welfare, equality and sustainability of the people at
large. Thus, the meaning of development is one that makes people the target or
end of development. Development is thus the process by which people create and
recreate themselves and their life circumstances to realize higher levels of
civilization in accordance with their own choices and values (Ake, 2001). From
this context, development can be seen as multidimensional process involving
major societal changes in terms of social structures, popular attitudes and
national institutions, as well as the acceleration of economics growth, the
reduction of inequality and eradication of extreme poverty.
Conversely, Rodney (1972) sees
development from the point of view of the individual in terms of skill
acquisition and development, increased capacity, greater freedom, creativity,
self-discipline, responsibility and material well-being. At the societal level,
development entails the ability of man to take his destiny in his own hands.
Therefore, development means an overall social process which is dependent upon
the outcome of man’s effort to subdue his physical or natural environment.
Conversely, development at whatever level of analysis precludes unequal
relations and contact between the forces of capital and peripheral
nation-states. This is the result of dependency in Third World today. Of
course, this is the direct consequences of numerous austerity measures adopted
in undeveloped world including the emerging trends of privatization policies,
(Offiiong, 2003).
2.3 PRIVATIZATION
AND COMMERCIALIZATION IN NIGERIA
Privatization
and commercialization are popular elements in the process of deregulation in
Nigeria. The two concepts are however, more specialized processes of government
disengagement from those economic functions which it now undertakes but which
can be more efficiently carried out by others, in the case of privatization
(Olaghore, 1991). Similarly, commercialization connotes the differences between
ownership and dependency because government retains ownership but severes the
umbilical cord of dependency so that the enterprises can operate commercially
without any subvention from government (Olashore, 1991).
In the
past, privatization and commercialization has become very critical
socio-economic indices for growth, development and sustainability in Nigeria.
There is therefore a fair amount of consensus that the oil boom of the 1970s
injected the confidence into the public sector about its central role in
economic management. This new philosophy of the oil boom era was encouraged by
the fact that indigenes were generally capital deficient and could not afford
to invest adequately in most industrial ventures. These inadequacies left the
commercial sector largely in foreign hands, making the indigenization programme
inevitable if Nigerians were to have meaningful role in the economy. To those
in charge in those times, government had an obligation to hold a stake in trust
for the people of Nigeria.
As critical
and well meaning as the foregoing may have been, the participation of
government in the economy took on a life of its own. Government itself
participated in all kinds of ventures including steel production to road
haulage, clearing and forwarding services as well as importation and
distribution of consumer goods (Olashore, 1991). Shortly after the oil boom
flopped, the burden of funding the public sector became too much for
government. Therefore, there was the need to reduce the burden of dependency by
the companies and parastatals of government on the public purse, and the desire
for increasing efficiency by government-owned companies whose inefficiency was
causing government much embarrassment and costing the public much money in
losses, led to the consideration of privatization and commercialization.
However, an enabling Decree to this effect did not come into place until 1988.
Speculation gave the impression that ideological and regional balance
considerations may have had the effect of delaying movement on privatization
and commercialization. The ideological issue was played up by those who saw a
cleavage between the haves and there have-nots with the haves supposedly
waiting on the wings to buy up for their personal gain, that which belongs to
all Nigerians. Government must, therefore, have felt the need to proceed with
some caution on the subject allowing a process of information dissemination to
help prepare people for the reality of the need for privatization and
commercialization which has become part of Nigeria’s political economic index
to date.
2.4 PRIVATIZATION,
LIBERALIZATION AND NATIONAL DEVELOPMENT
Privatization, liberalization and
national development are concepts that cannot be treated in isolation.
Privatization and liberalization therefore are more or less development
strategies imbibed by nation-states to enhance the growth, stability and
progress of their home countries. As earlier mentioned in the preceeding
chapters, to privatize means to reduce government involvement in the management
of socio-economic affairs of a nation-state. By extension therefore, the
implication of this is to free up resources for private ownership while
government serve as regular or watch-dog. Liberalization therefore appears to
have the same connotation with privatization as the former is aimed at opening
barriers to foreign investors who may be willing to invest (Olewe, 1995).
From the foregoing, there appears to
be a linkage between privatization, liberalization and national development
because the effective administration of privatization could in some respect
bring about change, progress, development and sustainability in the overall
socio-economic spheres of lives. Privatization and liberalization and its
policy directions therefore must be people-oriented, guided by sound moral
judgement and ethical conduct, good political will, transparency and
accountability, responsiveness, participation and democratization. All these
variables have the capacity and potentials of kick-starting an oiling economy
like those of Third World countries (Nigeria inclusive) (NEEDS Document, 2004).
By any standard, to privatize
therefore means to try to avoid economic waste, corruption and mismanagement
creation of job opportunities, encouraging foreign investors, among others
(Okigbo, 1986). This researcher if of the humble opinion that the Nigerian
privatization process may not yield the desired expected results in terms of
national development. This is owing to the fact that the managers and actors of
the state seem to lack focus and direction in the privatization policies in the
country. The staggering revelations in the Obasanjo’s Fourth Republic where
billions of tax payer’s money have been cornered to families and friends in
political business; sumptuous contracts offered to bidders without proper
inspection, among others as is being revealed in the current and on-going
investigations by the National Assembly of Nigeria. All these are major
set-back on Nigeria’s path to greatness. All these are artificial creations
that may hinder the realization of Nigeria’s vision 2020 as being conceived by
the Yar’ Adua’s administration.
Consequently, the concept of national
development according to Arvinal and Everett (1989) is a widely participatory
process of directed social change in any given society intended to bring about
both social and material advancement including greater equality, freedom and
other valued qualities for the majority of the people through active
participation and greater controls over their environment in all its
ramifications. With specific references to the emerging economies of Third
World, Olewe (1995) has documented that development-centered programmes and
policies designed in these economies are aimed at achieving higher incomes and
living standards through industrialization and modernization, expansion of
social services and cultural activities, full exploitation of human and
material resources among others.
Like privatization and
liberalization, national development plans are more or less aimed at achieving
qualitative transformation from a particular level to a more desirable one.
Thus the transformation should be rooted in such a manner that the expenditure
on national resources should be able to improve upon the living standards of
the citizenry (Waldo, 1984). As a encompassing project, national development
plan represents a demonstrated commitment of the state leadership to deploy national
resources, human and capital to secure a better living standard of the people.
These is therefore the tendency to reduce national development plan to or
equate same with economic development. The former however has a larger scope
spanning all aspects of a country’s national lives be they political, cultural
or economic.
Okigbo (1986) wrote that since
Nigeria’s first National Development Plans of 1962, all other plans have
largely remained the same including the latest NEEDS initiatives. However, the process
of preparing national development plan entails the setting of goals and targets
expected to be attained within a specific period of time. The process also
involves the formulation of appropriate policies aimed at facilitating the
accomplishment of stated goals and targets. To this researcher, one very
crucial factor that must be taken into cognizance during any planning process
of development plan in the objective assessment of resources to be expended on
the plan. This is very important against the backdrop of the fact that
insufficient resource base constitutes a major constraints to the overall
realization and achievement of development goals or set targets. National
Development in Nigeria should therefore be pursued with the desired vigour, coloration
and determination as well as sound political will. This is certainly a way
forward in Nigeria’s bid to become the world’s 20th most
industrialized nation-state.
2.5 THE
CONCEPT OF UNDERDEVELOPMENT
There are different views by
different scholars on the concept of underdevelopment. Rodney (1972) wrote that
underdevelopment is not absence of development. This is because every people
have developed in one way or another and to greater or lesser extent
underdevelopment therefore makes sense only as a means of comparing levels of
development. It is very much tied to the fact that human, social and economic
development has been uneven, and from a strict economic sense of the word, a
section of human race have advanced further in terms of technology, manpower
and wealth for more than others. This is the direct result of undevelopment.
To this researcher, the main
pro-occupation here is with the differences in wealth between Europe and North
America on one hand as well as Asia, Latin America and Africa on the other.
Comparatively, the second category can be said to be witnessing misery,
dwindling basic social infrastructures, corruption, thuggery, insecurity of
lives and property among other social vices. All these appears to impediments
to development. Another critical aspect of underdevelopment can also be
expressed in terms of a particular relationship of exploitation between, for
example, the capitalist west and the poor nations of Africa, Asia and Latin
America. According to Offing (1980). African and Asian societies were
developing independently until they were taken over directly or indirectly by
the capitalist powers of Europe. The tradition of this level of exploitation
and inequality was further transferred into the very fabric of African
comprador bourgeoisie class. This eventually has been part of us and hence,
there is trickle-down effect on the entire socio-economic process. Thus, the Nigerian
privatization policy is hinged on colonial mentality that is more or less
unacceptable to the people. Privatization policy at whatever level of analysis
in Nigeria is a thing of the few Nigerian elite at the helm of affairs of
governance. The power sector and its reform strategies have been grossly
high-jacked by the powers that be and the loot unconventionally shared among
family and friends, government acolytes and ‘good boys’ running around for the
incumbent. At the same time designated power sites have been literally
abandoned to their own fate while billions of naira are being lost without
anybody accounting for it. Nigeria however, seem to be relying on the
power-probe panel headed by senator Elumelu as a way out of this sorry state of
the Nigerian power sector in recent times.
2.6 THE
CONCEPT OF ECONOMIC GROWTH
The
contextual issues in Nigeria’s privatization process can be said to be
synonymous with economic growth. The contention here is that there cannot be
privatization without adequate and viable socio-economic growth. The two
concepts therefore are mutually reinforcing as well as complementing for
overall economic development and sustainability of any society at large. By
economic growth, is meant the ability of any given economy to provide goods and
services, increase human development and capacity, job creation, poverty
alleviation, provision of infrastructures, etc. Broadly speaking, economic
growth occurs as the economy increases its human and natural resources and
plans how to employ them more productively (Gbosi, 2001).
From the
economic backdrop, it is easy to consider the concept of growth from the level
of increase in Gross Domestic Product (GDP), Gross National Product (GNP) as
well as Net National Product (NNP) respectively. Political scientists however
hold contrary views on the concept of growth. To them economic growth which
does not reflect the interest, aspiration, welfare as well as guarantee the
greatest happiness for the greatest number cannot be called growth in the sense
of the word. This means however, that there can be economic growth without
development and sustainability as in the case of Nigeria (Ake, 2001).
Consequently, available data shows that the various macro-economic policy
measures adopted in Nigeria apparently have not achieved the desired result.
Major factors however, are responsible. From all indications, the Nigerian
economy is basically characterized by rising levels of unemployment, high food
shortages, inflation, poverty and hunger, disease pandemic like HIV/AIDS, exam
malpractice, electoral malpractice, high crime rates, prostitution, rape, child
abuse and trafficking, among others. All of these are basic economic indicators
to show that Nigeria’s privatization process is still a sham and, so,
privatization and socio-economic growth are poles apart in the scheme of things
in Nigeria (Ogbosi, 2001).
From the foregoing
analysis therefore, it becomes difficult to compare or rather equate the
Nigerian privatization process with economic growth because within this
framework, there can be growth without corresponding development. The
astronomical increase in Nigeria’s foreign reserve arising from sale of excess
crude oil in recent times have only left more Nigerians in the dark while the
rhetorics of Yar Adua’s Seven-Point Agenda, of which the power sector takes the
top-most priority, is only at the level of policy statement. Nigerians are
still waiting patiently to have such policies translated into creative and
meaningful outcome in the interest of over 140 million citizens.
2.7 PRIVATIZATION
AND LIBERALIZATION IN GLOBAL PERSPECTIVE
Globalization means different things
to different people. Privatization has come to mean the same thing with the
concept of globalization. This is because privatization like, liberal democracy
is a gospel of Europe and America meant to collapse the entire world system
into a global village. Thus, the world has now become bigger and complex in
outlook with near free entry and exit in terms of market formations, fewer
barriers, faster and better communications and transport linkages, freer and
easier and more global capital flows, large and vicious competition for market
at both local, national, regional, international and, in fact global levels
(Kande, 2005). Thus organizations and nations state are constantly
repositioning for their own advantage as product cycles and design cycles have
become shorter bringing about faster reaction cycles.
From the foregoing, privatization and
liberalization have almost become a collective development responsibility of
nation-states with each synchronizing and harmonizing its socio-economic,
political and cultural interests with other nations of the world. The import of
the mutual relationship, to this researcher is largely to share with others the
responsibility for repair and maintenance of building natural development plans
for overall socio-economic growth, development and sustainability.
Privatization and liberalization in global perspective therefore preoccupies
itself with the setting of bench-marks and the adoption of new innovations and
best socio-economic practices, discipline and the aspirations to kick-start ailing
economies of backward and nations of the world. Globalization and
liberalization therefore is not only an African content. It is a practice
emanating from the West, and then, imposed on undeveloped worlds as a way out
of misery. In Africa as a whole, various concerns have been expressed on
anticipated benefits of privatization and liberalization. Central to this
school of thought are questions of ownership, the fate of labour, the idea of
transparency, the socio-economic implications of these practices and the
considerations of social contracts and responsibility and responsiveness on the
part of state actors in the interest of all and sundry (Wogu, 2007).
However, social science scholars who
have professed privatization and liberalization have equally outlined long term
advantages, particularly in the area of promoting economic growth, development
and sustainability. A critical assessment of this trends of global dimension
could and of course, may subject Third World states on highly disadvantaged
position. Conversely, despite the many sides of privatization and
liberalization as a universal tradition, the issue of ownership and
participation becomes a major stumbling block in the development concerns of
the people of Africa (Ake, 2001). Of utmost interest to this researcher is that
these appears to be gross absence of any form of mass privatization or
capitalization programme anywhere in sub-Saharan Africa.
It is therefore indisputable that
privatization process in Africa, like those of the European countries of
Britain, Germany, Ireland, among others, have been very slow. However, it is
not surprising to equally judge the low level of performance and subsistence of
privatization programme in this part of the world due to general lack of
transparency, low political will, corruption and lack of policy implementation
on a general scale (Erunke, 2007). This scenario appears to be an existing gap
in literature as it concerns privatization and liberalization in global scale.
Apparently, the European Union
appears to have created a single market for goods and services in the 1990s in
principle. In actual practice, many barriers to cross border transactions have
remained in place (Cole, 1998). A glaring case of cross-border distortions assumes
greater dimensions when one consider the upward and/or downward swing of global
crude oil prices in the international market until recently where there appear
to be sudden skyrocketing of crude oil prices. The researcher is of the view
that while privatization and liberalization in Europe (especially in such areas
as telecom, education, railway and water supply, among others) and America has
assumed a successful dimensions, African privatization process has failed
(Cole, 1988). For example, the European Union Commission has vowed to continue
to promote access to local loop to force down call charges and internet costs.
This is rather strange in the African context. Nigeria, for example has
restricted its communications industry to only few companies (MTN, ZAIN, MTEL,
and GLO networks). This largely accounts for why there has been poor network
and service delivery in recent times. However, it can be argued that the
liberalization of the energy sectors in Europe has proved considerately
difficult in recent times. However, in 2002, the EU reached an agreement for
full energy liberalization by 2007 which was a major step forward. Needless to
say that EU countries like France, Belgium, Greece and Ireland, for example,
still control about 90 percent of the electricity market (Majone, 2003). These
quasi-monopolies use their dominant position to keep out competitors. It is
rather very doubtful that without the push from the EU, these countries would
have succeeded in opening their energy market for competition (Majone, 2003).
2.8 PRIVATIZATION
OF ENTERPRISES IN NIGERIA
The abrupt sale of public enterprises
in Nigeria has been one of the problems in the Nigerian privatization
strategies to date. The way and manner that most enterprises are sold have been
the sources of contentious debates among scholars. According to Kande (2005),
the problems of privatization in Nigeria is fraudulent and unfair. Thus, the
exercise is bedeviled with lack of proper valuation, incompetence on the part
of the valuers, fraud and high-level lack of technical skills (2005:56).
Similarly, there is also the issue of assets, which in some instances, are not
taken into account in the evaluation process. This practice is inimical to
Nigeria’s economic growth and development. At the level of the private sector,
the process remains inhuman, insensitive, callous and exploitative. There is
virtually no safety nets for employees of such sectors. Thus, many of the
private sector employers neither provide insurance nor social security for
their employees. They do not obey labour laws and therefore sack workers
arbitrarily, for good or bad reasons. Many of them do not have pension schemes.
It can be deduced from the above that the private sector is a very hostile
environment. They do not in some cases permit their employees to even unionize.
Thus, while inaugurating the National
Council on Privatization, president Obasanjo (as cited by Kande, 2005:57)
stated thus:
State enterprises suffer from fundamental problems of
defective capital structure, excessive bureaucratic control or intervention,
inappropriate technology, gross in competence and mismanagement, blatant
corruption and crippling complacency which monopoly engenders. As a result of
the foregoing, we are privatizing for the benefit of our economic recovery and
benefit of life…. We are not about to replace public monopoly with private
monopoly. Rather in our determination to be unyielding and uncompromising in
the best interest of this country, we want to remove the financial burden which
these enterprises constitute on the public and release resources for essential
functions of government (2005:57).
Incidentally, the researcher is of
the view that several issues can be decoded from the policy statement of Mr
President. Again, the issue of morality in the entire exercise comes to the
fore as in the above. The poser therefore is: If government is not trying to
hand over the country to a few comprador bourgeoisie class in Nigeria as in the
case of the erstwhile Obasanjo regime, how should it expect the majority poor
and the already impoverished masses of the people to afford colossal capital
and resources needed to acquire such enterprises? If the government was not
replacing state monopoly with private sector monopoly, why would she not
emphasize on private sector expansion and development of their various business
empires instead of buying over those whose original owner is government?
However, the presidential speech of Nigeria’s Fourth Republic can be reduced to
two critical issues – those of over politicization and poor management of our
national resource endowment. Everything else within the state derives from the
above (Obadan 1913). Indisputably, however, the plenary speech appears to be
shielding the role of government by way of poor handling and management of
state enterprises. Interestingly, however, the same government and its agencies
are involved in or inextricably constitutes the Boards of management of public
enterprises. So it becomes difficult to justify the position of government on enterprises
failure in Nigeria (Ojo, 1994).
2.9 ACCOUNTABILITY
IN THE POWER SECTOR AND NIGERIA NATIONAL
DEVELOPMENT
The content and context of national
development as it relates to the Nigerian current trend in the power sector
reform strategies is a misnomer. Incidentally, every national development plans
is largely people-centred geared towards achieving qualitative transformation
from a particular level to a more or less desirable and progressive one. Thus,
the same level of transformation is tailored around expending national resource
endowment at the levels of both human and material dimensions in such a manner
that could bring about improved material conditions for the generality of the
citizenry. In a more broader perspective, national development strategies
represents a demonstrated commitment of the leadership and of course, the
followership, good political will and vision and mission. All these are
necessary variables that could rightly generate the desired results and dire
aspirations for a workable national development index in all spheres of our
national lives, the Nigerian power sector inclusive.
By any standard, Nigeria, the most
populous black African country with an approximate population explosion of not
less than 140 million had under its NEEDS agenda, and in line with the much
talked about Millennium Development Goals (MDG) earmarked monumental
development strategies for an enhanced living conditions of her people, of
which the power sector reform is one. The Nigerian power sector as a matter of
fact, is an indispensable sector the requires utmost attention in order to be
effective and efficient in all its ramifications. Power, however, is very
crucial in boosting business activities either at the level of individual or
government circles respectively. On the other hand, Nigeria’s fledging
democracy may only survive the test of time thereby enhancing socio-economic
development, growth and sustainability when the fundamentals of due process and
the rule of law are duely and systematically followed (The News, 2008).
Therefore, the on-going
investigations by the Yar Adua’s administration appears to have come as a right
step in the right direction to bring to the fore all tendencies of grafts and
corrupt legacies of the immediate past administration of chief Olusegun
Obasanjo and his cronies in government circles. It is interesting to note that
the various mind-boggling revelations that played out in the on-going public
hearing by the National Assembly of Nigeria to actually salvage the comatose
state of the power sector is of utmost interest to this researcher and any
concerned citizen of this great country. Thus a close examination of such
awkward leadership tendencies as hypocritical, non-challant,
self-aggrandizement, window-dressing, coverteousness greed etc, are prevalent and, hence act as
necessary draw-backs to our nation’s wheel of progress.
These tendencies are basically
characteristic of the Obasanjo’s administration where sumptuous contracts worth
billions of Nigeria were distributed to both family and friends to the
detriment of our national development plans (The News, 2008).
In one of the most startling
revelations, the out-gone CBN Governor, Prof. Soludo told the Committee
investigating the power saga that the Central Bank of Nigeria paid a whooping
sum of N917.8 billion on the power
sector contracts. According to him, out of this figure, N422.2 billion was paid for jobs done locally while N4.2 billion was equally redressed for
items sources abroad (The Guardian, 2008). It was also revealed that N16.2 billion was paid to a German company
who does not know the road leading to the project site, neither was the
contract supervised and religiously executed (This Day, 2008).
Testifying before the House Committee
on Power and Steel, the former Minister in the ministry and current governor of
Ondo state, Chief Olusegun Agagu shocked Nigerians when he said it was not
within his schedule to know whether companies bidding for contracts were
registered or not (The Guardian, 2008). The humble suggestion and ample opinion
of this researcher is to say very well that any public office holder who does
not know his constitutional responsibilities may likewise be expressing his
share irresponsiveness. This does not apply in our national development pattern
as a matter of fact.
Giving his own account which rather
concealed more than it revealed, another former Minister of Power and Steel and
now present governor of Cross River state, Senator Liyel Imoke alledged that he
had no knowledge of how some contractors were paid up to 60 – 100% mobilization
fees without evidence of first-phase performance (Daily Trust, 2008). This
scenario also is a misnomer and hence suggests traces of sycophancy at the
level of top bureaucracy during the said period
of Obasanjo’s administration. Eventually, however, Nigerians were not
fooled by a team of praise-singers who were literally bought over within the
Abuja vicinity to applaud and distract proceedings to cover up this singular
evil. Incidentally, a close examination of the testimonies of Nigerian public
office holders as above shows clearly that no body seems to be bothered about
the impact of the power sector scandal and the implications on our growing or
dying economy. There is also a deliberate attempt here to play down the issue
and cover up the roles played by former president Obasanjo in throwing away
huge public funds without due process and accountability and responsibility.
Nigerian public office holders at this level have largely remained remorseless
as a result of the culture of impurity entrenched and institutionalized by the
former administration which is notorious for this kind of leadership traits.
The most critical and dominant picture of this scenario is that of a bloodiest
attempt to conceal corruption, criminality and executive recklessness,
cover-ups, greed, avarice, self-aggrandizement and convenience at the expense
of public interest. This constitutes a serious setback to overall national
development in Nigeria (Leadership, 2008).
Against all odds, it will be recalled
that the emergence of president Obasanjo through the beginning of the first
phase of Nigerian democratic experiment was greeted by higher ethical standard
initiated by the same regime and further transposed into the Nigerian public
life geared towards decapitating and incapacitating the monster of corruption.
This appears to be the background from which the Independent Corrupt Practice
Commission (ICPC) and the twin Economic and Financial Crimes Commission (EFCC)
were created with the hope of stamping out corruption in public lives in
Nigeria. Therefore, corruption as one of the impediments that causes Nigeria’s
backwardness thereby distorting national development and the corresponding
regeneration of ICPC and EFCC generates a lot of enthusiasm and excitements
that at least Nigeria has a saint in the most powerful public office in the
history of the country.
From the foregoing analysis,
Nigerians are now beginning to understand why the eight years of democracy
under Obasanjo did not bring any significant improvement in the quality of
lives of millions of Nigerians. Once can as well understand the shortfall and
glaring hypocracy coming in the hills of the so-called anti-corruption crusade
introduced to institutionalize sanity in the same system of wrongs in Nigeria.
In any case however, the
anti-corruption gospel is now facing its own credibility problem. But will
Yar’Adua muster enough courage and goodwill to investigate his predecessor with
the trend of window-dressing scenario we have had in such cases involving past
leaders in this country? Will the powerful political elite in Aso Rock who
probably are partakers in this orchestra ever allow fair-play, credibility and
transparency? Nigerians are however waiting with high level of enthusiasm to
see what the outcome of this current power probe looks like at the end of the
day.
2.10 PRIVATIZATION
OF POWER HOLDING COMPANY OF NIGERIA
(PHCN) AND NATIONAL DEVELOPMENT
National development as a concept
finds expression in virtually every facet of our national lives as a
nation-state. The Nigerian socio-political system therefore becomes the
centre-piece of development agenda carried out by government in the interest of
the entire citizenry. Privatization therefore as an appendage of government
policy becomes crucial in any development thinking especially as it relates to
power sector and how the same impacts on the welfare of the people.
The researcher is of the view that
privatization of Nigeria’s power sector and national development are two sides
of the same coin. This is strictly because of one singular reason that the
agenda of privatizing any sector into private trends is to avoid the ills
perpetrated by the public sector including, among other things, corruption,
waste, mismanagement, ineptitude and lack of will power to control public
resources in the interest of public goods. These appears to be the major
reasons for privatization in Nigeria. However, one striking contradiction is
that Nigeria has found it difficult to move on her road to development inspite
of huge sums of money dished out from the tax-payer’s money for developmental
purposes. The question is: who is actually responsible for this state of
affairs? Again, can this scenario impede or retard developmental efforts in
Nigeria? These and many other questions form part of the discussion to
water-down the concept of national development as it relates to the PHCN in
Nigeria.
The contention in this study his that
privatization in Nigeria does not necessarily translate into national
development. Privatization and its twin policies of deregulation and
liberalization are worked out in favour of a few comprador bourgeoisie class.
They include the powers that be namely, government, cronies and acolytes, state
machineries and top bureaucrats respectively. These are major obstacles to
Nigeria’s growth, development and sustainability (The News, 2008). These agents
of government have literally high-jacked the goodwill and aspirations of public
policies and converted the same into private initiatives in favour of
themselves, business associates, their family and friends at both home and
abroad (Erunke, 2007). The afore-going does not by any standard guarantee
accountability, transparency and probity in the scheme of things. There is
therefore no survival and smooth journey to nationhood. Of particular interest
to this study is the probe exercise on the defunct Obasanjo administration
which has given a startling economic development is still far from being
realistic.
Conversely, the first public hearing
on allegations of mismanagement of power funds in 2008 during President Umar
Musa Yar’Adua’s administration according to the then Minister of State for
Energy (Power), Hajia Balarabe Ibarahim was quoted as saying that about $13.2 billion
was expended by the Obasanjo administration between 1999 and 2007, both at the
commencement and terminal stages of his rulership (The News, 2008). Public
testimonies accruing to this deliberations revealed that power contracts award
was treated as a bazaar by the past government. Thus contracts were not only
awarded without observance of due process, but that most of the contractors
pocketed huge sums of money without executing projects for which the funds were
meant to serve (AIT News, 2008). It is also interesting to note that the chief
execute was also directly involved in the award of contracts without
necessarily involving the Ministry of Power and Steel. There were also
contractors who have not bothered to visit the various sites of their contracts,
but have collected billions as mobilization fees (Oluokun, et al., 2008). An
example is the N1 trillion National
Integrated Power Project (NIPP) facility embarked upon by the Federal
Government of Nigeria in collaboration with the states and local councils in
2005 (Amaechi, 2005). To a large extent, the project involves the construction
of new power stations, mostly in the South-South zone. The gas power plant is
therefore to be managed by the Niger-Delta Power Holding Company Plc (NDPHC)
including those of Calabar in Cross River state, Egbema in River state, Sepele
in Delta state, respectively (The News, 2008).
Going by the instance given above,
the researcher is of the opinion that there must have been an act of sabotage
by those at the helm of affairs including state chief executives of most states
in the country. A clear case is the former Minister of Power and Steel, Mr Lyel
Imoke.
Olotu (2008) rightly points out that
collaboration and sabotage is so effective so much so that:
… with Obsanjo and Imoke in control, the National
Integrated Power Project contracts were handed over to their friends and
associates like candies at children’s party. Over 300 contracts were approved,
while 340 payments were made (2008:66).
The aforementioned to the researcher
is a negation of civilized practices, due process and the principles of
transparency and accountability. This to a very significance extent does not
promote national development. In a similar development, Abdullahi (2008) wrote
that:
… Nigerians were stunned to learn at the public
hearing that despite the payment of about N257
billion, (an equipment of $2.10 billion) to contractors, work has not commenced
on most of the project sites. Contractors and supposed supervisors of different
projects openly contradicted each other on the existence of certain projects,
the contract sum and the extent of work (2008:67).
The episode as captured above is in
exhaustive in the explanation of the level of backwardness, underdevelopment,
misery, poverty and degradation in which the entire Nigerian state has been
plunged into. There is no gain saying that these ugly practices has the
potential of disrupting the plans, policy targets, aspirations, contents and
flavour of Nigerian’s dreams towards a highly industrialized political entity.
There is no doubt that in the midst of epileptic power supply. Major infant
industries will suffer, hospitals will close down and the equipment kept fallow
for lack of power supply; Nigerian youths will further romans with crime and social
vices for lack of employment opportunity where there no companies to absurb the
work force; high level of exploitation will reign supreme as imported mini
power generators are sold at exorbitant rates by few importers from China and
Japan; many homes are left in stark darkness while Nigerians cannot relief
stress at home after a hard day’s job in the office. All these are parallel and
does not tally with national development, growth and sustainability. National
development must not be tailored to few rich individuals. National development
must be a holistic and universes concept capable of steering the collective
interests of the people without which it is impossible to want to present the
on-going affairs of the Nigerian state as democratic in line with group
aspirations (Obasi, 2005).
2.11 CHALLENGES
OF POWER GENERATION AND NIGERIA’S SOCIO-ECONOMIC
DEVELOPMENT
Vandalisation of PHCN equipment and
installations for re-circulation accounts for at least 30% of blackout
experienced in Nigeria today. PHCN has embarked on a massive campaign against
the activities of vandals who perpetrate this heinous acts and cash rewards to
those who watch over PHCN installations to apprehend suspects for possible
prosecution in the law courts. Also eight 4-wheel Isuzu patrol vehicles fitted
with communication equipment has been given to the Police Anti Vandalism
Task-Force. A cash cheque of N5.58
million was also presented to the Inspector General of Police for paying
allowances and honorarium to members of the task-force. The poor state of our
electrical generating plants across the country, the long decline in capital
investment in the industry and the shortage of funds to rehabilitate
broken-down plants to undertake turn around maintenance, is the paramount
spectre of vandalisation (Tanweer, 1999; Usman 2003, Zubairu, 2002).
Hardly any day, week or month passes
without the ugly face of vandalism being visited on the nation’s already
embattled electricity network. Media reports on this are as frightening. This
menace is another dilemma in the legion of problems and constraints facing the Power
Holding Company of Nigeria (PHCN) vested the with mandate to generate, transmit
and distribute electricity in the country. The wanton destruction this is
infliction on the entire network system aside the untold drain on scarce
financial resources is better imagined. It is a nightmare to say the least.
Enormous resources have been lost to the callous acts of vandalism which have
since become a social problem in the country. Several areas and communities
have suffered contrived power failures in the wake of vandalisation of PHCN equipment.
The sequences of such heinous crimes
are devastating indeed. In addition to the huge economic loss the country
suffers, while the damage in terms of both material and human resources is
unquantifiable.
However, vandalism is the product of
a complex society such as ours. The craze for material things and the desperate
desire to get rich quick in a bid to win the material rat race push people to
commit all sorts of offences including vandalisation. Well meaning Nigerians
and the press have at various times spoken out on this ugly phenomenon that is
not only peculiar to PHCN but also to other vital public utilities. Yet, it is
as bad that this is evading meaningful solution. Sadly, vital components of the
Nation’s electricity industry continue to be vandalized and stolen by hoodlums
and their faceless sponsors (Wikipedia, 2004).
The ugly phenomenon has no doubt
compounded our development problems as the nation continues to witness retarded
growth through mindless pillage in the hands of the culprits. Most of the items
so carted away require huge but scarce foreign exchange to procure.
Consequently, the helpless electricity consumers are left to suffer prolonged
period of darkness until the authority manages to come to the rescue at a much
greater cost (NEPA Review September, 2003:57, Hartman, 1978).
As an important index for
socio-economic development and growth, electricity occupies a central place in
modern societies and economies. Everything must therefore be done to ensure
that the system is safeguarded against willful damage. The current war against
vandalisation which the federal government in its wisdom is involved, is
appropriate in order to influence a change of attitude in our society. We
commend the quick response and patriotic commitment of the president to route
the vandals. This position raises hopes that with the co-operation and support
of all well meaning Nigerians, the nation will soon reap the benefits, which
will translate into significant reliability in power supply (NCP, 2003).
Nigeria certainly has a choice to
deal with vandalisation and theft of equipment since much of the nation’s
growth will depend on the sustainance of the electricity industry, the backbone
of any nation’s economy and industrial leap forward (NCP, 2003). Let us
consider a profile of vandalisation power installation in Nigeria in recent
times viz:
Summary of most recent act of Vandalisation
|
S/n
|
Location of Vandalisation
|
Nature
of Vandalisation
|
Cost
of Repair
|
|
1
|
Ikeja West-Ayede 330KV line
|
Towers No. 425 collapsed due to
vandalisation
|
20,611,815.00
|
|
2
|
Sapele-Aladja
330KV line
|
Towers 75 collapsed due to fire
from pipeline vandalisation
|
10,296,300.00
|
|
3
|
Delta – Benin
|
Towers 57 collapsed due to fire
from pipeline vandalisation
|
Estimated cost
5,000,000.00
|
|
4
|
Jos –Bauchi
132KV line
|
Towers No. 133-137, 166-170,
177-179, 221-225 and 333-337 vandalised
|
Estimated cost
14,500,000.00
|
|
5
|
Gombe – Bauchi
132KV line
|
Towers 474 – 477 were vandalized
|
Estimated cost
3,500,000.00
|
|
6
|
New Haven Nkalagu 132kV line
|
Towers 72 – 75 were vandalized
|
7,741, 403.00
|
|
7
|
Delta – Benin
|
Towers 12 collapsed due to
vandalisation and several other towers and line hardware affected
|
Estimated cost
56,811,300.00
|
|
8
|
New Haven River
132KV line
|
Many towers were vandalized. The
vandals cut and carted away line, hardware
|
Estimated cost
56,811,300.00
|
|
9
|
Gombe – Yola
132KV line
|
Towers 24 – 30 vanadalised with
line, hardware cut and carted away
|
Estimated cost
7,800,000.00
|
|
10
|
Oshogbo
330KV line
|
Towers 28-30 (Tower 29 collapsed
and 28 damaged)
|
Estimated cost
15,000,000.00
|
Source: NEPA Review Sept. 2003.58.
Obviously however,
some of the major challenges in the generation and distribution of power supply
in Nigeria are enumerated as follows:
1.
Illegal
connections and overload of network have caused a lot of damage on supply
equipment. PHCN has put in place, field officers to investigate and to
disconnect electricity supply to all illegal consumers and bring them to book.
A massive awareness campaign is also going on to educate the populace on the
ills of illegal connection.
2.
Settlement
of electricity bills: It is interesting to note that from the sale of
electricity is used to sustain the electricity industry. Some customers have lukewarm
attitude towards settling their electricity bills. To curb this, the Authority
has adapted the use of prepayment meters, and the grid meeting system in some
areas. Nigeria is known to be the largest purchaser of stand-by generators in
world. This indicates that the ability to pay for regular electricity will pose
a problem once there is constant supply of electricity. Seeing that there is
already a very substantial pen-up demand employing much more expensive
alternatives.
3.
Rural
electrification: PHCN’s goal of electrification for all is a challenge the
Authority is determined to achieve, hence the current emphasis on rural
electrification. Rural electrification is aimed to the remote areas in the
country.
4.
Mounting
operational cost of production and distributing electricity has its own way,
weighed down the operation of the Authority. Cost referred to here includes:
cost of imported equipment and spare-parts, cost of overhauling outdated
equipment, rising inflation and high foreign exchange rates. The Government has
recently financed the rehabilitation, replacement and expansions of the
Authority’s equipment and services.
5.
Aging
equipment: About 13.9% of PHCN’s installed capacity are over 20 years; or 57.1%
over 15 years or 79.6% are over 10 years old. These are impediments to PHCN outputs.
The Government has taken giant steps by funding the rehabilitation and
servicing of generating stations across the country. The recent participation
of the Independent Power Producers (IPP) in the electricity industry would also
boost electricity in Nigeria.
6.
Water
level: Nigeria has the hydro power generating stations in Kanji Dam,
commissioned in 1968, Jebba built dam, the stream of Kanji and Shiroro dam was
commissioned in 1986. Water level of these stations determined the extent of
generation of electricity. The drought which occurred on Kanji less than 10
years after construction which was expected though under probability after
about 50 years has become a source of worry to the Authority’s inability to
provide enough power through the hydro stations.
The Federal Government has sunk huge
sums of money into the rehabilitation of the Nation’s electricity plants. Over N16.9 billion Naira has so far been
provided to the Power Holding Company of Nigeria by the Obasanjo administration,
aimed at ensuring an efficient and uninterrupted power supply in the country
while 300 project sites have been earmarked for construction but for the high
level of corruption scarce leveled against the immediate past government of
chief Obasanjo and his cronies.
It is interesting to note that on the
24/2/2001 NEPA signed a 62 million US dollars rehabilitation contract with
Marubeni Corporation of Japan to reactivate Delta II and III Thermal Power
Stations in Ughelli; Delta state. The company would install six new
power-generating turbines to replace the existing obsolete ones. The new
turbines would have a combined generating capacity of 150 megawatts. Merubeni
is currently executing a rehabilitation work on generating units 6&4 of
Egbin thermal power station, Lagos (Ojo, 2002, Onoche, 2002).
Series of plans to deregulate the
power sector; the federal Government is inviting private investors to
participate in the country’s power generation sector. Eight states in Nigeria
have indicated interest to go into Independent Power Production (IPP). The
states include Kano, Jigawa, Osun, Bayelsa, Lagos, Rivers, Ekiti and Bauchi
state (Ohiorhenuam, 2002). The 1st phase of Lagos state Independent
Power Project being provided by US-based Enron Power Company was ready for
commissioning by the end of July 2001.
Electricity supply to the country
suffered a major set back recently as the NEPA system collapsed, throwing the
nation in to darkness. This was caused by low Gas pressure to the Egbin power
station (Zubairu, 2002). Gas supply to the power station was cut-off when the
bye-pass valve of the gas pipeline failed to open up, thus leading to a
cascading effect on the system, shutting down all the power generation. This is
a major setback to socio-economic development in Nigeria.
The Authority is working tirelessly
to ensure that it achieves the Government target of electricity for all. To
ensure this, PHCN will need to add about 1808 megawatts to the National Grid.
The additional megawatts would be made out of the existing eight power stations
in the country.
The Asea Brown Boveri Limited (ABB) a
foreign firm currently participating in the on-going rural electrification of
the Abuja Independent Power Project (IPP) would inject 450 megawatts of
electricity into the system. Some of the projects the company had executed in
Nigeria include the Osogbo Ife/Illesha 132KV transmission, 2×30/40MVA312/33KV
Ilesha substations amongst a host of others (Sigmund, 1990).
The Federal Government has chosen
firms for the first phase of the schedule 30 megawatts, EPP plant for Abuja.
The power project is being handled by
Aggreko International Power Project (AIPP) Plc and Geometric Nigeria Limited.
The project is split between the two firms both of which are expected to
provide 15MW of power each in two phases expected to run concurrently. The
Federal Government has so far provided electricity for 189 rural areas at cost
of 5.6 Billion Naira since its inception in May 1999. So far, the government allocated
17.6 billion Naira to run power supply 575 of the 774 local Government
Headquarters had been connected to the National Grid (Sunday Tribune, 2008).
The first phase of the Lagos State
initiated Independent Power Plan (IPP) project expected is to generate an
additional 90 megawatts; and was commissioned in June 2001. The second phase
which is 450 MW gas turbine power plant estimated to cost 630 million US
dollars would soon commence (Sunday Tribune, 2008).
In Nigeria, more and more states and
organizations are embarking on setting up their own Independent Power Plants
(IPP), 10 of such are currently under construction. Some of the new plants
which are at various stages of development include the Enron Power Plant in
Egbin Lagos, the Agip Oji Power Projectd in Ughelli, Delta and Rivers IPP in
Port Harcourt. Others are state sponsored IPP’s being handled by Ondo, Bayelsa,
Kano, Kwarak, Akwa-Ibom, Delta and Edo state (Ohiorhenuam, 2002). PHCN is
giving the IPP’s the necessary support to enable them come on stream. The
Authority also offers necessary technical advice to speed up the job and ensure
its success so that it could stand the test of time. More ways of finding
solution to the power generation, distribution and transmission is however
still being explored (Ojo, 1994).
With impending conditions like the
ever-rising consumer debts, vandalisation of PHCN’s installation, high cost of
maintenance, inadequate gas supply, low water level at the hydro power
stations, high cost of foreign exchange the abysmally low tariff regime, PHCN has
always strived to meet its distribution and marketing of stable electricity to
its numerous residential, commercial and industrial customers against all odds.
In spite of some of its familiar operational shortcomings, PHCN has made giant
strides in the production and marketing of electricity to the nation and beyond
(Odife, 1998). A principal beneficiary of PHCN’s extended electricity program
is the Republic of Niger under an agreement with Nigerlec (Niger Electricity Company)
that country’s electricity monopoly. Similarly, in Sep. 1996, an undertaking
was signed between the erstwhile National Electric Power Authority (NEPA) and
communaute Electricque Du Benin (CED), which is responsible for production and
transportation of electric energy in the Republic of Benin and Togo. This
problem of finding solution to generate, transmit and distribute power in the
country called for the reform and privatization of PHCN for an enhanced
socio-economic development, growth and sustainability in the 21st
century.
2.12 NIGERIA’S
POWER SECTOR REFORM
The power sector is very capital
intensive. It is obvious that Government with its many responsibilities in
other sectors of the economy, cannot fund its development as outlined above.
For that reason, there is genuine need to reform the sector so as to attract
and encourage private sector participating to attract capital to fund the
sector and to ensure a level playing ground for both local and foreign
investors.
The electric power policy statement
of government therefore is to ensure that Nigeria has an Electricity Supply
Industry (ESI) that can meet the needs of its citizens in the 21st
century. This in fact will require a fundamental reform (liberalization at all
levels of the power industry) (NEPA, News, 2003).
i.
The
Federal Government will therefore provide overall directive for the development
of the electricity supply industry and enabling environment.
ii.
Ensure
the general consistency of electric power policy with all other national policies
and specifically with other aspects of the energy policy.
iii.
Enact
promptly the necessary laws, regulations and other measures required to support
the electricity policy.
It is also expected that Government
would have an independent regulatory agencies, which will be responsible for
the issuance of licenses to companies operating in the electricity supply
industry.
Then one can now say that the main
aim of the reform and privatization of NEPA is to reverse the trend that has
led to the present dismal state of electricity supply. The reform however,
would among others:
a)
Unbund
NEPA along its functional lines into 18 competing Business Units (Bus).
b)
Provide
appropriate regulation to ensure industrial growth and safety in operators by
the establishment of an Independent Industry Regulator (Nigeria Electricity
Regulatory Commission {NERC}).
c)
Introduce
modern technology into the Nigerian Electricity Supply Industry (NES).
d)
Provide
adequate legislation for the operation of NESI).
e)
Attract
foreign investment and positive re-imaging of NESI.
f)
With
the exception of the transmission/system operations company privatize the NBUs
starting with distribution.
g)
Prepare
grounds for competition by promoting efficiency and better management of NESI.
h)
Resolve
massive and perennial pension funding gaps.
i)
Foster
a focused development of NESI.
j)
Generate
employment opportunities (NEPA News, 2003).
The process of sector reform and
enterprise restructuring and privatization is an intricate and delicate one
that needs care in handling. This is a major pathway forward in Nigeria’s quest
for socio-economic and political development in all its ramifications.
2.13 THE
ALTERNATIVE ENERGY OPTION
One very important phenomena in the
Nigerian power reform policies is the inadequacies and of course, the inability
of government to execute laudable plans that could foster overall
socio-economic development and sustainability. This has largely informed the
adoption of the nuclear energy option by the present administration of
President Umar Musa Yar’Adua in recent times. Thus the intent of government is
geared towards integrated power supply targeted at producing and acquiring more
than 6000, megawatts by the year 2010 (Sunday Tribune, 2008). It can be
emphasized here that the National integrated Power Projects (NIPP) has a
benchmark of at least generating, transmitting and distributing adequate power
supply to all nooks and crannies of Nigeria within the shortest limit of time
and at low cost. Thus the power stations under the NIPP agenda includes Calabar
(500mw), Egbema (350mw), Eyaen (500mw), Gbarain (250mw), Ikot Abasi (300mw),
Sapele (500mw), Omoku )225mw) and Ibom (180mw) respectively (Sunday Tribune,
2008:3).
In any case, however, the
possibilities of adopting the nuclear option as a way of salvaging the Nigerian
power sector from total collapse is of utmost importance to this researcher,
and hence, raises a lot of concerns. It is interesting to state that the
adverse consequences of environmental as well as health hazards posed by the
toxic wastes emanating from nuclear regards leaves much to be desired.
Similarly, contending arguments by
nuclear energy experts in favour of the former is that:
1)
The
energy produced per amount of material consumed is the highest available.
2)
The
cost of nuclear energy is competitive with coal as the major source of energy
used in the world.
3)
That
uranium, the source material of nuclear energy is readily available and
abundant.
4)
That
plutonium, a by-product of commercial nuclear plant operation can also be used
as fuel and
5)
That
the amount of waste product produced by the source of energy is the least of
any major energy process (NEPA News, 2005).
With the benefit of hindsight, we can
rightly say that government intention towards reawakening the ailing power
sector is not a bad one. However, the environmental and health consequences to
humanity remains a major constraints. Nigeria as a developing country does not
possess the wherewithal for proper disposal unlike developed nations of Europe
and America, Canada, Japan etc. These countries appear to have the capacity to
properly manage nuclear wastes thereby safeguarding the ecosystem from undue
pressure. Nigeria for example uses nuclear plant in Zaria, Kaduna state.
Although the nuclear energy there is strictly used for research purposes. It
can be maintained here that the used fuel and indeed, all spent fuel must be
returned to China, its country of origin where it came from (Elegba, 2008).
From the foregoing, the fears of the possible environmental consequences through
radioactive and ionizing radiations are virtually out of place as the Nigerian
Nuclear Regulatory Authorities are combat ready to check the activities of
operations of power stations and major oil drilling and manufacturing and
mining companies alike.
2.14 THEORETICAL FRAMEWORK
It is interesting to note that the
socio-economic and political dynamics of a nation state is directly or
indirectly influenced by the paraphernalia of government and its policy
framework. This to a large extent, guides the economic fortune and direction of
the state to the extent of which a nation becomes great or dwindles due to the
personal whims of state actors involved in the formulation and implementation
process. Consequent upon this therefore, it can be said that the economies of
various countries of the global system have always been influenced by the
position taken by the states in question in terms of either regulation or
deregulation of the economic base of the society. The import of this position
in the scheme of economic life of any state is buttressed by a particular
theoretical analysis.
Drawing
from the foregoing, therefore, the underpinning for Nigeria’s privatization as
it patterns power sector can best be analysed using the elite school of thought
as a theoretical construct.
Elitism is
a vague concept which has attracted a lot of concern from scholars in the
social sciences in contemporary times. Thus, while an ‘elite’ is a role player
involved in the direction and control of a nation’s wherewithal, resources, persons
or groups of people, elitism on the other hand defines the power configuration
and inter-play of group influence, authority, charisma, egocentrism,
selfishness, etc. All of these characteristics are practically exhibited by the
ruling class in their own selfish interest. Elitism defines alienation, want,
deprivation, poverty, disease, wanton neglect, and above all, the enhancement,
ineptitude, greed, to mention but a few (Schuarz, 1987).
By
extension, however, the elite school defines a power relations that seem to
exist between two distinct groups in any society. First is a group of selected
few who consider themselves capable and therefore possess the right to supreme
leadership. The second category are the vast majority of the poorest of the poor
or the downtrodden masses who are destined to be ruled. In this scheme of
obvious differences, one group therefore assumes an upper-most as well as
superior stronghold in the control of the nation’s resources to the detriment
of the others (Ake, 2001). Elitism therefore subscribes to rule of force. The
elite school of thought is largely antithetical to popular views and best democratic
practices. It is a major setback on the road to peace, corporate governance,
ethics, freedom, ethnic strife, electoral malpractice, macro and micro-economic
failures mostly in backward nation-states of Asia, Africa and Latin America
(Ake, 2001). The context of elitism defines coercion and brutal use of force
against social groups in the society, intimidation, circumvention of
constituted authorities and the outright neglect of the rule of law. This
phenomenon has largely been re-enacted in Nigeria’s privatization process by
the erstwhile Obasanjo administration where billions of tax payer’s money have
been allegedly diverted into private pockets leaving the economy to suffer
(Usman, 2001).
The
prevailing consequences of elitism finds expression in group interaction. These
groups are interested in the balancing and limiting excessive powers of one
another in a bid to grab public office. Thus, the driving force of these elites
to interact and confront themselves is the irrepressible urge in human beings
to come to power and maintain the same. So behind the perpetual struggle
between elite groups is the desire to acquire power.
Mills
(1956), Lasswell (1965) and Pareto (1993) wrote that the context of power
defines who gets what, when and how. This means that power is synonymous with
coercion and therefore undemocratic as it is unacceptable. The society should
therefore be built around equity, distributive justice and fairplay,
transparency and accountability as cardinal objectives in the overall process
of privatization either in the power sector or otherwise. This will bring about
the enthronement of responsiveness, responsibility, accountability and probity
in the scheme of things in Nigeria’s Fourth Republic and beyond.
Morgenthau
(1978) wrote that the context of power is synonymous with state control by a
group of selected few. This is different from the control of nature, artistic
medium, language, colour or such powers over means of production and
consumption or over oneself in the sense of self-control. Power however, means
the control over the minds, self-consciousness and actions or inactions of
other men. By this definition, power therefore becomes political. And politics
clearly defines the authoritative allocation or abduction and hijacking of the
resources of the people as was accentuated in Nigeria’s Fourth Republic (1999 –
2007). In any case, political power in any nation-state has a psychological
relations between those who exercise it and those over whom it is exercised. It
gives the former control over certain actions of the latter through the impact
which the former exert on the latter’s minds. That impact derives from three
sources: the expectation for benefits, the fear of disadvantages and the
respect for institutions (Lasswell, 1993). Political powers as in the case of
the Nigerian context could be exerted through unpopular orders, threat,
unilateral decision making, glaring connivance with cabinet members or where
this fails, unilateral removal and reshufflement of cabinet can be effected
where necessary. From the foregoing analysis, political power in Nigeria during
the Obasanjo’s Fourth Republic could be distinguished viz: between power and
influence, between power and force, between usable and unusable power and
between legitimate and illegitimate power respectively. Be that as it may, the
indiscriminate use of brutal force by government acolytes and cronies was a
major setback in the process of democracy and democratization during the
Obasanjo administration.
Significantly,
Nigerian elite should exercise political powers with decorum and self-control,
transparency and accountability, responsiveness and justice in their bid to
move the nation forward. Millions of Nigerians can no longer afford the
skyrocketing prices of kerosene or cooking gas anymore. Nigerians can no longer
bear the pains of having to sleep in the dark where thousands of mega-watts of
power are being expended on neighbouring African countries of Niger, Togo and
Benin and other minor countries without a blink, while industries have rapidly
comatosed in an ailing economy like ours?
The
tendency is for the current administration to rid itself of excessive elite
control, scape-goatism, godfatherism and political machinations, greed,
self-aggrandizement, nepotism, lip-service, brutal use of force, unilateral
decisions on sensitive policy concerns that are of national interest, external
control and the like. A logical execution of the above guidelines would have
been enough panacea for an enhanced power supply in the Nigerian privatization
feat while creating meaningful conditions of living for millions of dying
Nigerians in the 21st century. Any socio-political paradigm devoid
of the aforementioned can only drag the Nigerian economy some twenty steps back
into confusion, socio-economic stagnation, lack, deprivation and backwardness.
Nigeria must move forward in the spirit and expectations of the Millennium
Development Goals (MDG) while we look forward to becoming the 20th
largest economy in less than a decade from here.
For easy
understanding of the context of privatization policy and national development
in Nigeria, it is important that we do justice to certain basic concepts viz:
privatization, development, underdevelopment and national development
respectively.
CHAPTER
THREE
3.1 METHODOLOGY
The foregoing research will adopt the
use of data collection from both primary and secondary sources. In the case of
primary sources, data is obtained through the administration of questionnaire
to a household population as the required target. Similarly, secondary sources
of the research is utilize through the use of materials such as newspapers,
magazines, journals, periodicals and published works by seasoned authors.
3.2 THE
STUDY POPULATION
The population of this research study
is going to be put at 100 as a minimum standard of measurement. The target
universe used in this research comprises staff of the power Holding Company of
Nigeria Corporate Headquarters in Abuja and other subsidiary units and service
centres across Keffi and Abuja respectively. This is however not exhaustive in
the actual sense of the word. Essentially, however, the research uses
statistical analysis as ultimate basis of decision making through simple
percentage error. Survey research methodology is therefore adopted. The target
population therefore comprises staff of PHCN corporate Headquarters in both
Keffi and Abuja, civil servants, students and the civil population.
3.3 SAMPLING
TECHNIQUES
The research study shall adopt the
use of multiple sampling techniques as method of data analysis. Thus, both
random, cluster and stratified sampling techniques will be adopted. Isaac (2008)
wrote that random sampling involves wide range of choices made by the
individual given that such individuals are faced with challenges of diversity
and heterogeneity in terms of the study population. The choice of these
sampling techniques is particularly adopted to avoid conclusions that may turn
out to be statistically ridiculous. Basically, the intent also is to eliminate
bias because of the complex nature of the research work.
However, the study makes use of
probability and non-probability sampling techniques as methods of research.
probability sample by definition is the one in which every member of a
population has a known assurance or likelihood of being included in the sample
to be studied (Selltiz, 1974). Non-probability sampling technique is the
reverse of probability sampling technique. Probability sampling methods
therefore includes (1) simple random sampling (2) stratified sampling (3)
systematic sampling (4) cluster sampling. Similarly, non-probability sampling
methods includes quota sampling as well as purposive or judgmental sampling
respectively. We shall explain the concepts in turn.
PROBABILITY SAMPLING TECHNIQUES
3.3.1 STRATIFIED SAMPLING
The assumption underlying the use of stratified
sampling technique in this study is that certain characteristics are likely not
to be taken care of by the chance factor. The research therefore takes note of
critical conditions as being important in the adoption of stratified sampling
method viz: the awareness of different characteristics of target population,
the conviction that such characteristics may not be adequately represented
without stratification and the possible inclusion of different strata before a
reliable generalization can be made. As a major advantage, however, stratified
sampling has the capabilities of recognizing different groups in the study
population.
3.3.2 SIMPLE RANDOM SAMPLING
The use of simple random is equally
used in this research study. Simple random sampling defines a sampling
technique where every members of the population has equal and independent
chances of being selected in the sample to be studied (Black and Champion,
1976). The selection of one person or element therefore does not affect the
chances of another elements being included. The merit of this sampling technique
includes its wide applicability; its indispensable use by other probability,
freedom from unwanted error and its simple nature for enhanced understanding.
Its demerits includes the possibilities of falling into large sample error and
also the possibility of missing out the chances of entering specific samples.
3.3.3 CLUSTER SAMPLING
The objectives of utilizing cluster
sampling technique in this research is critical to the research study. Cluster
or area sampling therefore involves selecting members of a sample in a group
rather than individual element. The implication of this is that members of the
universe are grouped into their various geographical locations, occupational
clusters and religious groups respectively. The merits include reduction in
cost of research and reduction of extremely large population.
3.4 RESEARCH
INSTRUMENT AND DELIMITATION
The researcher adopted the use of
research study that is delineated into sections. The first section (A) takes
note of personal data of respondents including their age bracket, sex,
religious affiliations and occupation. Sections B and C are designed in such a
way that appropriate respondents should be elicited from the population on the
relevance of privatization policy in Nigeria and how it impact on national
development especially in Nigeria’s power sector. From the foregoing, the
samples by numerical strength and other characteristics refers the composition
of the parent population sufficient enough to represent the total population as
well as safeguard undue generalizations and validity of this research
conclusions.
3.5 METHOD
OF DATA ANALYSIS
The research study uses both
statistical and describtive dimensions to analyse data obtained from the
questionnaire. The statistical analysis is structured along simple percentage
error to enhance understanding and simplification of the research study.
Findings of the research is also added at the end of the data analysis and
presentation to enhance effectiveness in the study.
NON PROBABILITY SAMPLING TECHNIQUES
3.6 QUOTA SAMPLING
Quota sampling as a research method
used in this study is geared towards obtaining the desired number of elements
by selecting those that are most accessible and those that have certain
required characteristics. The objective is to fill a quota reflecting the
population of the universe as used in the research (Champion, 1976).
3.7 PURPOSIVE OR JUDGMENTAL
SAMPLING
This method as used in the research
involves hand-picking desired sample elements to ensure that such elements are
included. This high degree of selectivity involved is meant to guarantee that
all relevant strata are represented in the sample. The reason for this choice
is informed by this study to enhance convenience, cost minimization,
representativeness and time maximization.
CHAPTER
FOUR
4.1 DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
The topic under consideration is
Privatization Policy and National Development in Nigeria: A case study of
Nigeria’s power sector. The researcher adopted both primary and secondary
methods as means of obtaining data for this research study. As earlier
mentioned the primary source of the research is based on the administration of
questionnaire and observation methods in order to obtain the necessary
data-base for empirical analysis. Similarly, journals, books, periodicals and
newspapers form part of secondary research and data-base in this study. The
purpose of this chapter is to carry out empirical analysis of the responses
elicited from the sampled population. However, out of 350 questionnaire
administered, only 100 was retrieved. The information in this chapter is
therefore premised on the above percentage. We shall however begin our analysis
with the demographic survey, structured and unstructured questionnaire samples
as follows:
Table 4.1: Age
|
Variables
|
Population
|
Percentage
|
|
15 – 25
|
20
|
20%
|
|
25 – 35
|
40
|
40%
|
|
40 – 65
|
40
|
40%
|
|
Total
|
100
|
100%
|
From the table 4.1 above, the age
bracket for this demographic survey varies from 15 – 25 (representing 20%), 25
– 35 (representing 40%) and 40 – 45 (representing 40%) respectively. The degree
of variation in age suggest that those within the ages of 25 – 35 and 40 – 65
have the potentials of understanding the policies of participation of Nigeria’s
power sector and it affects their lives even more.
Table 4.2: Sex
|
Variables
|
Population
|
Percentage
|
|
Male
|
70
|
70%
|
|
Female
|
30
|
30%
|
|
Total
|
100
|
100%
|
The table above reveals that 70 male
respondents (70%) and 30 female respondents (30%) have been reached. The
implication of this finding shows the high level of participation and
representation on policy issues on the part of male than female in Nigeria.
Table 4.3: Religion
|
Variables
|
Population
|
Percentage
|
|
Christianity
|
40
|
40%
|
|
Islam
|
40
|
40%
|
|
Others
|
20
|
20%
|
|
Total
|
100
|
100%
|
The table shows that the various
religious sects including Christianity has 40 (40%), Islam 40 (40%) and others
20 (20%). The equal percentage in Islam and Christianity on the privatization
process is an indication of equal participation and corporate governance on the
policy concerns of the power sector reform in Nigeria.
Table 4.4: Occupation
|
Variables
|
Population
|
Percentage
|
|
Civil servants
|
60
|
60%
|
|
Farmers
|
20
|
20%
|
|
Students
|
10
|
10%
|
|
Others
|
10
|
10%
|
|
Total
|
100
|
100%
|
The table above (4.4) has civil
servant representation in the survey as 60 (representing 60%), farmers (20%)s,
students (10%) and others (10%). This shows that civil servants are the most
affected in Nigeria privatization process as it concerns the power sector
reform, students and farmers are the least affected largely became of their
non-involvement in the policy process.
SECTION B
1.
Are
you aware of the current trend in privatization in Nigeria’s power sector?
Table 4.5
|
Variables
|
Population
|
Percentage
|
|
Yes
|
45
|
45%
|
|
No
|
35
|
35%
|
|
Neutral
|
20
|
20%
|
|
Total
|
100
|
100%
|
Table 4.5 shows that 45%, 35% and 20%
represents respondents who are saying ‘Yes’, ‘No’ and ‘Neutral’ as to their
awareness on the current trend of privatization of Nigeria’s power sector. This
shows that more sensitization programme is required to carry the people along
in the power sector reform agenda.
2.
In
your opinion, is there good management practices in Nigeria’s privatization
programme?
Table 4.6
|
Variables
|
Population
|
Percentage
|
|
Yes
|
20
|
20%
|
|
No
|
80
|
80%
|
|
Total
|
100
|
100%
|
The table has 20% of the population
who are agreeing with the logic of good management practices in Nigeria’s
privatization programme, and 80% disagreeing on the notion. This shows that
policy makers need to enhance effective policy management by objective to
achieve desired goals in our power sector.
3.
Is
the public participation in Nigeria’s privatization programme?
Table 4.7
|
Variables
|
Population
|
Percentage
|
|
Yes
|
15
|
15%
|
|
No
|
80
|
80%
|
|
Neutral
|
5
|
5%
|
|
Total
|
100
|
100%
|
This analysis shows that 15% of the
population are agreed that there is public participation in Nigeria’s
privatization programme while 80% disagree. 5% remain neutral. The implication
therefore to this researcher proves that public participation is
negligible and does not represent
adequate and democratic outlook in the privatization of Nigeria’s power sector.
4.
Would
you say that privatization of power sector in Nigeria has a global implication?
Table 4.8
|
Variables
|
Population
|
Percentage
|
|
Yes
|
70
|
70%
|
|
No
|
20
|
20%
|
|
Neutral
|
10
|
10%
|
|
Total
|
100
|
100%
|
The figure shows that 70% represents
the population who maintain that Nigeria’s privatization process has a global
implication. 2% say ‘No’ and 10% of the population remain neutral. The position
of the researcher therefore is that globalization is privatization and the latter
is the former. Both practices are mere western concepts which is alien to
African political economy.
5.
Has
the efficiency of Nigeria’s power sector any links with privatization and
divestiture of the sector?
Table 4.9
|
Variables
|
Population
|
Percentage
|
|
Yes
|
45
|
45%
|
|
No
|
55
|
55%
|
|
Undecided
|
10
|
10%
|
|
Total
|
100
|
100%
|
The table (4.9) indicates that
Nigeria’s power efficiency does not have a relationship with privatization and
divestiture o the sector as 55% disagree, 45% agree and 10% of the population
remain neutral. Efficiency of Nigeria’s privatization policy is it concerns the
power sector is a function of good political will and building a system of
comprehensive accountability to control corruption pandemic in the sector.
6.
What
is the relationship between privatization and national development?
Table 4.10
|
Variables
|
Population
|
Percentage
|
|
Collective interest
|
20
|
20%
|
|
Good political will
|
20
|
20%
|
|
Control of endemic corruption
|
20
|
20%
|
|
Public participation
|
40
|
40%
|
|
Total
|
100
|
100%
|
The above table shows that the
relationship between privatization and national development in Nigeria can be
enhanced through public participation with 40%, control of endemic corruption
with 20%, good political will (20%) and collective interest scoring 20% from
the respondents. There is therefore the need for public participation in
Nigeria’s privatization process because the public opinion to this effect is
high.
7.
Give
your own views on how privatization of the power sector may not enhance
efficiency of power supply.
Table 4.11
|
Variables
|
Population
|
Percentage
|
|
Nigerians are not involved
|
40
|
40%
|
|
Politics of elitism is a wrong step
|
25
|
25%
|
|
Poor value re-orientation is prevailing in the Nigerian
system
|
35
|
35%
|
|
|
|
40%
|
|
Total
|
100
|
100%
|
From the above analysis 40% of the
population agree that privatization of the power sector may not necessarily
enhance efficiency of power supply because millions of Nigerians are not
involves in the process, 25% attribute this reason to policies of elitism and
35% subscribes to poor value-orientation. 40% is the highest peak of pubic
opinion suggesting that public participation is critical in public policy
survived in Nigeria.
8.
What
are the necessary options toward solving Nigeria’s power problems?
Table 4.12
|
Variables
|
Population
|
Percentage
|
|
Adoption of independent power
source
|
50
|
50%
|
|
The use of nuclear energy
|
10
|
10%
|
|
The adoption of solar energy
|
40
|
40%
|
|
Total
|
100
|
100%
|
From the foregoing, the necessary
option for solving Nigeria’s ailing power problem includes the adoption of
independent power source (50%) the use of nuclear energy (10%) and the adequate
use of solar energy as an addendum to the epileptic power condition in Nigeria.
However, this study observes that independent power source is popular with 50%
responses. Again, nuclear energy has virtually no popularity due largely to the
hazards it could cause to the environment.
9.
Would
you say that the on-going investigations on the power sector would have impact
on improved performance of the sector?
Table 4.13
|
Variables
|
Population
|
Percentage
|
|
Elite politics is a barrier
|
50
|
50%
|
|
Lip services out-weighs policy
action
|
40
|
40%
|
|
The Nigerian system is bereft with sentiments
|
10
|
10%
|
|
Total
|
100
|
100%
|
From above, we can say that the
on-going sector probe by the present regime may not yield the desired result
because of elite politics (50%), lip services taking the place of policy
actions (40%) and the sentiment attached to the probe probably as a result of
political differences.
10. Assess the environmental impact of
adopting nuclear energy option in Nigeria.
Table 4.14
|
Variables
|
Population
|
Percentage
|
|
May cause environmental degradation
|
40
|
40%
|
|
Health hazards
|
40
|
40%
|
|
Could further degenerate into ozone depletion
|
20
|
20%
|
|
Total
|
100
|
100%
|
The analysis as above show that that
nuclear as option for Nigeria’s power sector reform may cause environmental
degradation (40%), health hazards and risks to human, aquatic and terrestrial
lives (40%) as well as enhance the depletion of ozone layers which is a major
factor propelling global warming across the world.
11. What are your reservations for the
on-going power probe by the National Assembly of Nigeria in the Yar’Adua’s
Administration.
Table 4.15
|
Variables
|
Population
|
Percentage
|
|
Lack of commitment manifested in
window- dressing approach to issues by the powers that be
|
40
|
40%
|
|
The syndrome of god- fatherism may
distort facts
|
30
|
30%
|
|
Lack of policy direction
|
30
|
30%
|
|
Total
|
100
|
100%
|
Table 4.15 above shows that the
on-going investigations by the National Assembly of Nigeria lacks commitment
manifested by window-dressing attitude of the Nigerian political actors (40%,
the syndrome of godfatherism (30%) and the absolute lack of policy direction
(30%). All these are encumbrances on the path of Nigeria’s power reform.
12. Suggest a lasting option for solving
Nigeria’s power problems in the 21st century.
Table 4.16
|
Variables
|
Population
|
Percentage
|
|
Controlling endemic corruption in the PHCN
|
45
|
45%
|
|
The use of alternative power
sources by all tiers of government/ individual
|
45
|
45%
|
|
Sound political will
|
10
|
10%
|
|
Total
|
100
|
100%
|
From the table above, the study is
apt in its analysis in line with devising a lasting solution to Nigeria’s
ailing power sector in the 21st century. Thus 45% of the population
are in support of controlling endemic corruption in the PHCN and enthroning a
system of comprehensive accountability; 45% supports alternative power sources
through the use of water dams and hydro-power stations, the remaining 10%
encourage the institutionalization of sound political will as a moral value
system by Nigeria’s public office holders. These are veritable instruments in
the equitable management of policy framework, not only in the power sector; but
also in all factors of our national socio-economic lives in general.
SECTION C
1.
What
is the relationship between Privatization and National Development?
|
Option
|
Population
|
Percentage
|
|
Good
|
40
|
40%
|
|
Not Good
|
50
|
50%
|
|
Neutral
|
10
|
10%
|
|
Total
|
100
|
100%
|
The table above shows that the
relationship between Privatization and National Development is negligible as the
population of 50 disagree, 40% agree and 10% remain neutral.
2.
Do
you think Privatization of the power sector could enhance efficiency of power
supply?
|
Option
|
Population
|
Percentage
|
|
Yes
|
50
|
50%
|
|
No
|
30
|
30%
|
|
Neutral
|
20
|
20%
|
|
Total
|
100
|
100%
|
From the table above 50% of
respondents agree that Privatization of Nigeria’s power sector could enhance
efficiency of power supply, 30% disagree while 20% are neutral.
3.
Would
you say on-going investigation would have impact on improved performance of the
sector.
|
Option
|
Population
|
Percentage
|
|
Yes
|
30
|
30%
|
|
No
|
60
|
60%
|
|
Neutral
|
10
|
110%
|
|
Total
|
100
|
100%
|
From the above 60% of respondents are
doubtful about the on-going power probe in Nigeria’s power sector by the
present administration, 30% agree while 10% are neutral.
4.
What
do you think is the environmental impact of adopting nuclear energy as
alternative energy option for Nigeria?
|
Option
|
Population
|
Percentage
|
|
Friendly
|
20
|
20%
|
|
Unfriendly
|
70
|
70%
|
|
Neutral
|
10
|
10%
|
|
Total
|
100
|
100%
|
The percentage representation as
above shows 70% standing against the nuclear energy option for Nigeria, 10%
agrees that the option is friendly while 10% are neutral.
5.
What
do you think about the on-going power probe by the National Assembly?
|
Option
|
Population
|
Percentage
|
|
Good
|
70
|
70%
|
|
Not Good
|
10
|
10%
|
|
Neutral
|
20
|
20%
|
|
Total
|
100
|
100%
|
From the table above the respondents
in favour of the on-going power probe by the National Assembly are 70% for
‘Good’, 10% for ‘Not Good’ and 20% for Neutral.
4.2 TEST OF HYPOTHESIS
In testing hypothesis, the study
adopts the use of chi-square (x2) Goodness–of–fit which will be
tested at .05 level of significance. The reason for this choice is because the
data analysis is based on one variable with many attributes.
Therefore chi-square is represented
as
X2
= Σ (O – E)2
2
Where
X2 = Chi-square
O = Observed frequency
E
= Expected frequency
HYPOTHESIS I
In testing hypothesis I, table 1.10
will be used as follows:
H1 – There
is a significant relationship between privatization and national development.
H0 – There
is no significant relationship between privatization and national development.
The above can be calculated thus:
To get expected
= Cumulative
observed
Number
of attributes
= 100
4
= 25
|
O
|
E
|
O – E
|
(O – E)2
|
(O – E)2
E
|
|
20
|
25
|
–5
|
25
|
1.0
|
|
20
|
25
|
–5
|
25
|
1.0
|
|
20
|
25
|
–5
|
25
|
1.0
|
|
40
|
25
|
15
|
225
|
9.0
|
|
|
|
|
Cal=
|
Total = 12.0
|
df = 4 –
1
= 3
df = 7.815 from chi-square table.
From the analysis, calculated X2
< table calculated; we therefore accept H0 and reject H1.
There is therefore no significant relationship between privatization and
national development.
HYPOTHESIS II
In testing hypothesis II, table 1.11
will be used thus:
H1 – There
is a significant relationship between privatization and efficiency of power
supply in Nigeria.
H0 – There
is no significant relationship between privatization and efficiency of power
supply in Nigeria.
But chi-square (X2) = E (O – E)2
E
where
X2 = Chi-square
O = Observed frequency
E = Expected frequency
Expected = Cumulative observed
Number
of attributes
= 100
3
= 33.33
From table 1.11, it can be calculated
thus:
|
O
|
E
|
O – E
|
(O – E)2
|
(O – E)2
E
|
|
40
|
33.33
|
6.67
|
44.48
|
1.33
|
|
25
|
33.33
|
–8.33
|
69.38
|
2.08
|
|
35
|
33.33
|
1.67
|
2.78
|
0.08
|
|
|
|
|
Cal =
|
Total = 3.49
|
df = 3 –
1
= 2
df =
5.991
From the above, calculated X2
< table calculated; we therefore accept H0 and reject H1.
There is therefore no significant relationship between privatization and
efficiency of power supply in Nigeria.
4.3 DISCUSSION OF RESULTS
It seems from the foregoing findings
that privatization of Nigeria’s power sector may be the initiatives of the
Nigerian ruling class, otherwise the elite. The results from the analysis as
shown by the attributes of respondents privatizing the power sector in Nigeria
is devoid of collective interest, public participation and lack of political
will on the part of the ruling class (Table 1.10). Again, table 1.11 shows that
efficiency of power supply may be a far – cry largely because of elitist
politics, lack of participation, poor-value re-orientation and corruption
respectively.
4.4 CONCLUSION/ INFERENCES
It appears from the above that
privatization of Nigeria’s power sector may not be an end in itself. It is
probably a means to reaching a desired end. Therefore, efficiency of power
supply in Nigeria lies at the heart of good governance, efficiency, viable government
policy direction, sound moral judgement, distributive justice, equity,
transparency and accountability, commitment, public participation and the
overall national interest, growth, development and sustainability in the 21st
century.
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY
This research study focuses on
privatization policy and national development in Nigeria with concerns on the
revival of the ailing power sector of Nigeria’s economy. The study asserts that
one critical aspect of good governance and social responsibility on the path of
the state system is the provision of social goods and services for the common
good of all in the society. The research also affirms that majority interest as
it concerns service delivery in Nigeria’s power sector should be a core
priority of government and its agencies in the distribution of wealth of
nations. This singular act of responsibility and responsiveness on the part of
government vis-à-vis the people could foster the principles of equity,
fairness, distributive justice and national integration in Nigeria. Besides,
Nigeria’s socio-economic and political stability to a large extent is a
function of the well-being of its citizens as it relates to the provision of
social amenities, namely: electricity, good road network, communications and
portable water. In the light of the aforementioned, electricity appears to be
critical in a nation’s development process. The absence or near – absence of
power has been a major set-back on Nigeria’s path to economic growth,
development and sustainability. This appears to be the core value of this
research study. In spite of tremendous efforts by previous administration in
Nigeria (especially the Nigerian Fourth Republic under the Obasanjo
administration) to revamp the dying power sector; these efforts have relatively
proved abortive. The prevailing conditions with Nigerian 140 million population
seem to be growing worse as people endure black-out day – in day – out with
impunity.
Consequent upon this, the thesis
opens up discussions with introductory notes and background of the study,
problem statement, research objectives, methodology, scope and limitations,
hypothesis and theoretical framework in chapter one. Chapter two begins with
the review of relevant literature on what social science scholars have said
about privatization, development, national development, underdevelopment and
the global perspective of privatization and deregulation respectively. Chapter
three focuses on methodology with particular emphasis on the study population,
sampling techniques, research instrument and method of data analysis. Chapter
four deals strictly with data presentation, analysis and interpretation to
enhance understanding of the research study. Chapter five deals with summary,
conclusions and policy recommendations as a way of improving on the comatose
state of the power sector in Nigeria at both present and beyond the 21st
century.
5.2 CONCLUSION
The thrust of this thesis is to
enhance the generation and distribution of power supply in the Nigerian
socio-economic space. This is very essential in the development process of the
nation as a whole because electricity supply is relevant in the growth and
sustainability of Nigerian industries, security concerns and also as a source
of social development and good living standard of the people at large. The
expectations of this research therefore is to see a new Nigeria with a new face
of power supply in order to enhance the living conditions of the people and
redeem the nation’s image as the giant of Africa not only in name but also in
deeds and clear manifestation of its social responsibilities.
5.3 POLICY
RECOMMENDATIONS
The need to restructure the existing
order in the Nigerian power sector is very critical to this research. The import
of the thesis therefore is to proffer solutions to the increasing level of Nigeria’s
incessant power failure. The researcher therefore proposes the following policy
recommendations as a way of salvaging the ailing power sector in Nigeria as
follows:
1)
Enhancing
adequate privatization policy in Nigeria requires the use of the instrument of
public participation. This will guarantee adequate representation and
democratization of the entire process thereby giving it a human face.
2)
Institutionalizing
good management culture and practices in Nigeria’s privatization process. This
will enhance conformity and sustainability of exiting equipment for adequate
power supply.
3)
Adopting
viable economic development strategies that are consistent with African values
and principles instead of importing alien cultures to Nigeria which is why
adjustment policies do not work effectively.
4)
Enhancement
of the principles of peer-review mechanism on the power sector through routine
checks by officials of the Independent Corrupt Practices Commission and bring
perpetrators of corruption to justice.
5)
Adoption
of necessary options order than over-reliance on government for provision and
distribution of power supply in Nigeria. In this case the researcher is of the
view that the use of independent power source, including, hydropower stations,
nuclear reactor, geothermal as well as oil and gas sources could help solve the
prevailing pressures on the already tensed Kainji and Shiroro dams.
6)
The
use of nuclear energy option as a way of generating power in Nigeria is also
important. Although extra care should be taken to ensure that the environment,
atmosphere, land flora and faunas as well as water ways are not damaged through
harmful emission of gaseous substances and radio-active materials as well as
used fuel.
7)
Above
all, the on-going power sector probe by the Yar’Adua administration should
exercise decorum, political will, commitment, justice, equity and transparency
in the investigation process. All manner of window-dressing, solidarity,
godfatherism and sentiments should be divorced from the exercise. While at the
same time, bringing respective culprits who have tampered with power funds to
justice, their socio-economic status in the society notwithstanding. The above
policy guidelines if adequately followed will no doubt restore sanity, probity
and accountability in Nigeria’s bid towards becoming the 20th
largest economy in the world come year 2020.
REFERENCES/
BIBLIOGRAPHY
BOOKS
Ajakaiye, D.O. (1984). “Economy – Live Effects of
Privatization and Re-organizing Nigeria” Public Enterprises: Some Critical but neglected
issues. Ibadan, Nigeria.
Ake C. (1981). Political Economy of Africa. London,
Longman Publishers.
Ake, C. (2001). Democracy and Development in Africa.
Ibadan: Spectrum Books Ltd.
Amaechi Nzekwe (2005). No Past, No Present, No Future How Nigeria
Underdeveloped. Lagos Peterson Pub.
Black, J. et al (1976). Methods and Issues in Social Research.
New York: JN & Sons.
Galal, A. et al (1993). Welfare Consequences of Selling
Public Enterprises Case studies from Chile, Malaysia, Mexico and the UK.
London: Oxford University Press.
Lasswell, H.
(1993). Elites and Society
London. Routledge.
Mills, W.
(1956). The Power of Elite.
New York: Prentice Hall.
Morgenthau,
H. (1978). Politics among Nations:
The Struggle for Power and Peace. Chicago: McGraw-Hill.
North, C. et al. (1990). Institutions, Institutional Change and
Economic Performance, London: Cambridge Press.
Obadan, M. I. (1993). Wither Structural Adjustment
Programme in Nigeria. Ibadan, NCEMA.
Odife, D.O. (1988). Privatization in Nigeria:
Concepts Issues and Modalities, Simsun Adeyemo Press, Lagos, Nigeria.
Offiong, D. (1980): Imperialism and Dependency.
Enugu: Fourth Dimension pub.
Ogbosi, A.N.
(2001). Contemporary Macro
Economic Problems and Stabilization Policies Port Harcourt: Antovic Pub.
Olashore, O.
(1991). Challenges of Nigeria’s
Economic Reform. Ibadan: Olusanmi Printers.
Olewe, B.N. (1995): Development Administration.
Aba: Grace Books.
Olu A. (1988). The Structural Adjustment Programme and
Changes in the Structure of Production in Nigeria NCEMA). Lagos: Rotimi
pub.
Pareto, S.
(1993). Comparative study of
Political Elite. New Jersey: Prentice Hall.
Poter, E. et al (1990). The Competitive Advantage of Nations.
New York. Free Pres.
Rogers, S. (1969). The Political Economy of Third
World Countries. London: Oxford University Press.
Rodney, W. (1972). How Europe Underdeveloped Africa:
Bogle Ouyerture.
Tanweer A. Oct.(1999). Ineffective Privatization of Public
Enterprises. The Case of Bangladesh. India: Shazaar Books.
Todaro, et al (2003). Political Economy of Inequality.
New York: Chess and Baker.
Schuarz, M.
(1987). The Structure for Power
in America. New York: Holms & Meier.
Waldo, D. (1984). The Administrative State.
New York: Holmes & Meier.
Wikipedia 2004. The Free Encyclopedia
JOURNALS
Cook P. (2000). The Evaluation and Performance of UK
Privatization. http.iiwww.bricoun.org/ governance/briefing/iss2int.htm.
Ekpo, A.H. (1997). “Public Policy Private Sector and
Development Evaluation from Nigeria”. A Journal of Humanities, vol. 1, No.
3. Nov.
Jones, M. (1991). “The
Road to Privatization” Finance and Development”. Vol. 28, No. 1, March.
Obasi, I.N. (2005). “The Nigerian Bureaucracy under
the Obsanjo Administration” in Gana A.T. & Omelle Y.B. (ed), Democratic
Rebirth in Nigeria 1999 – 2003. vol. 1.
Ohiorhiemam, J.F.E. (2002). The Poverty of Development: Prolegomenon to
a Critique of Development Policy in Africa: Annuals of Social Science Academy
of Nigeria 2002/2003.
Ojo, M.O. et al, (1994). Journal of Economic Management.
Vol. No. 1 (Ibadan).
Okigbo, P.N.E. (1996). “New Strategies for the Future Growth of
the Nigerian Economy”, Nigerian Journal of Policy and Strategy.
Olabide, M.D. (2002). Benefit Analysis Approach to
Valuation and Pricing of Privatization Decisions: A Proposal for Nigeria,
Africa Economic Analysis.
Otive, I. (2003). Privatization in Nigeria
Critical Issues of Concerns to Civil Society, Social Economics Initiative
(SERI), Lagos. Public Enterprises Re-organization in India; The content
process and the Internal Labour Markets in India. CODESRIA
The Presidency 2002. Bureau of Public Enterprises:
Seminar Proceedings of Nigerians in Diaspora Organization Inc. (NIDO)
Professional Convention, LaGuardia, New York, April 27, 2002.
SEMINAR PAPERS
Elegba, S.B. (2008). Nuclear Energy in an option for Power
Generation and Economic Development. The Guardian, Wednesday 14, June.
El-Rufai, N.A. April (2002). The Nigerian Privatization Programme – The
Journey so Far. A paper presented at Transcorp Hotel, Abuja, May
Erunke, C.E. (2007). Privatization Policy in the Power
Sector: A German Experience, being a Paper presented at Public Policy Analysis
Seminar NSUK, 2007, May (Unpublished).
Erunke, C.E. (2005). Democracy and Good Governance in
Nigeria. A Case study Obasanjo’s Fourth Republic, being a project work
submitted to the Department of Political Science, Nasarawa State University,
Keffi. (Unpublished).
Majone, G. (2003). Deregulation, Liberalization and
Regulatory Reforms in European Union. Mexico: A Seminar Paper presented at
the 5th Global Forum on Reinventing Government, Panel on Deregulated
Government, Mexico 3 – 7.
Pan African Summit, Nov. 2000.
Seers, D. (1969). “The meaning of Development”
Paper presented at the Eleventh World Conference of Society for International
Development. New-Delhi.
Stambuli, P.K. (2003). Developing “Free Market Economics in
Africa. University of Cretel, Rythmnoz, Greece (Unpublished).
Wogu, C. (2007). Privatization in the Education
Sector: The British Experience, being a Seminar Paper presented at NSUK, June
(Unpublished).
NEWSPAPERS
Daily
Trust: “N21 Billion Ghost Contracts
Found in PHCN” 2008, March 13. vol. 8, No. 64.
Leadership:
“New Facts Links Obj, Gbenga”. 2008, April I, No. 636.
NEPA Review Dec. 1999. Understanding NEPA.
NEPA Review Oct – Dec (2002). The New Shape of NEPA and the 2002 Project
Plan.
NEPA NEWS Aug. & Sept. (2003).
Federal Government Raises hope New Power Station.
NEPA Transformation Newsletter. Transforming NEPA for the Future.
vol.00002, (2003).
NEPA Transformation Newsletter. Transforming NEPA for the Future
vol. 0003, (2003).
NEPA NEWS July, (2003). Army Assures NEPA over Electricity
bills. Protection of Facilities.
NEPA NEWS Jan – Feb. (2004). Unbundling Guarantees Financial and
Administrative Autonomy.
Nzekwe, A. (1993). Can Nigeria Survive. Jos
Tran-African Links.
Sunday Tribune, (2008).
The
Guardian: “$6.26 paid to unknown forms for Power Projects” 2008: Marh 18.
This
Day: Power Probe: House May Order Okonjo Iweala’s Arrest” 2008: March 14. vol.
13 No. 4710.
The
Guardian: “EFCC Begins Probe of Obasanjo, others” 2008, March 27. vol 25, No.
10 683.
The
News: “How Obj Ruined Power Sector”, 2008, March 31.
The
News: Probe of Obj’s Government Beings: Privatization Deals, Power & Oil
Sector under Scrutiny”. 2008, March 24. vol. 30, No. 11.
Usman, S. (2003). Privatization: progress
Prospects in the Post Express.
DOCUMENTS
National Council of Privatization 2001.
Electric Power Sector Bill
National Council of Privatization 2001.
Electric Power Sector Bill
National Council of Privatization 2001.
National Electric Power Policy
National Council of Privatization. National 2002.
Telecommunication.
National Council of Privatization. Privatization Share 2003 Purchase
Loan Scheme (PSPLS) Information Handbooks
National Council of Privatization. Privatization Monitor (Jan – March
2001) BPE Re-Assure Workers.
National Council of Privatization. Privatization
Handbook (May, 2000) Imperative of Privatization.
National Council of Privatization
(2000). Bureau of Public Enterprises “Fourth Pan-African Privatization
Summit held International Conference Centre Abuja, 19-22 November, 2000 (The
Full Proceedings.
National Electric Power Policy Oct 2001.
Electric Power Sector Reform Implementation Committee.
National Electric Power Authority Annual Report and Accounts (2002)
Report.
INTERNET
Cook, P. (2000). The Evaluation and Performance of UK Privatization.
http.iiwww.bricoun.org/ governance/briefing/iss2int.htm.
Zubairu, M. (2002). Privatization in Nigeria: The
efficiency and Fiscal Argument Maiwada@hotmail. Cm.
Faculty of Social Sciences
Department of Political Science
Nasarawa State University, Keffi
Questionnaire
Dear Respondents,
I am a
student of the above institution undergoing a research on Privatization Policy
and National Development in Nigeria: A case study of Nigeria’s Power Sector.
This questionnaire is intended to seek your views on this topic for the purpose
of research studies. I therefore solicit our cooperation as you respond to the
questions I shall administer to you. Your responses will be treated with the
utmost confidentiality it requires. Thank you.
Yours Sincerely,
Canice E. Erunke.
SECTION A
1. Age: 15 – 25 
25-35 40 – 66
25-35 40 – 66
2. Sex: Male Female
Female
3. Religion: Christianity
Islam Others
Islam Others
4. Occupation: Civil servants Farmers Students others
Farmers Students others
SECTION B
1.
Are
you aware of the current trend of privatization in Nigeria’s power sector?
Yes No Neutral
No Neutral
2.
In
your own opinion, is there good management practices in Nigeria’s privatization
programme?
Yes
No
No
3.
Is
there public participation in Nigeria’s privatization programme?
Yes
No Neutral
No Neutral
4.
Would
you say that privatization of power sector in Nigeria has a global implication?
Yes
No Neutral
No Neutral
5.
Has
the efficiency of Nigeria’s power sector any links with privatization and
divestiture of the sector?
Yes
No Undecided
No Undecided
SECTION C
1.
What
is the relationship between privatization and national development?
(a)
------------------------------------------------------------------------------------
(b)
------------------------------------------------------------------------------------
(c)
------------------------------------------------------------------------------------
2.
Do
you think Privatization of the power sector could enhance efficiency of power
supply?
Yes No Neutral
No Neutral
(a)
------------------------------------------------------------------------------------
(b)
------------------------------------------------------------------------------------
(c)
------------------------------------------------------------------------------------
3.
What
are the necessary options to solving Nigeria’s power problems?
(a)
------------------------------------------------------------------------------------
(b)
------------------------------------------------------------------------------------
(c) ------------------------------------------------------------------------------------
4.
Would
you say that the on-going investigation on the power sector would have any
impact on improved performance of the sector? Comment.
Yes No Neutral
No Neutral
(a)
------------------------------------------------------------------------------------
(b)
------------------------------------------------------------------------------------
(c) ------------------------------------------------------------------------------------
5.
What
do you think is the environmental impact of adopting Nuclear energy as an
alternative option for Nigeria.
(a) Friendly (b) Unfriendly (c) Neutral
(b) Unfriendly (c) Neutral
(a)
------------------------------------------------------------------------------------
(b)
------------------------------------------------------------------------------------
(c) ------------------------------------------------------------------------------------
6.
What
do you think about the on-going power Probe by the National Assembly?
(a)
Good (b) Not Good (c) Neutral
(b) Not Good (c) Neutral
(a)
------------------------------------------------------------------------------------
(b)
------------------------------------------------------------------------------------
(c)
------------------------------------------------------------------------------------
7.
Suggest
a lasting option for solving Nigeria’s power problems in the 21st
century.
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
Hello please can you kindly send the soft copy of this dissertation to my mail box: princewalay@yahoo.com I am writing a similar dissertation on this topic. Thanks
ReplyDelete