The Local Content Act that has been enacted for the oil and gas industry would be extended to Nigeria’s power sector, post-privatization, to ensure that local investors are given opportunity to play a role in a reformed power sector.
This was the promise of the Federal Government through the Minister of Power, Prof. Chinedu Nebo who assured that the federal government would not allow foreigners to dominate the post-privatisation process.
Nebo, who spoke at the recent commissioning of some injection sub-stations under Eko Electricity Distribution Company in Lagos, said that the present administration considers local content critical in ensuring ownership of the sector.
“The PHCN workers will be involved actively when the new power sector privatisation kick-starts,” he stated, adding: “Local content is key to this present government and I’m so serious that the new power investors will not dominate the power sector market.
“We are not going to allow the new power sector investors to flood the entire power market with foreigners.”
Nebo said government would allow Nigerians to be part of the new investors’ team at all levels including the management level.
The minister appealed to workers to ensure that they make themselves available and demonstrate commitment to duty and endeavour to work with the new investors.
“It will not be acceptable; our people must be seen working with them. We have told the investors ahead of time to provide their work company structures and schedule ahead of time. Those of them who will bring foreigners should indicate the role and position they will be occupying, so as to involve Nigerians in their duties and dealings.”
Nebo said that the agreement was part of what they have signed in the course of the power sector privatisation process, adding that government will not allow foreigners to take over the entire power market.
Speaking on the handing over of power stations to investors, the minister said that the possibility of government relinquishing power stations to assets bidders in July might not be realistic.
He said that many investors who have variously paid the initial mandatory 25 per cent part-payment for the value of the assets are willing to take over, but added that 75 per cent balance payment was also yet to be made by the investors.
“They have been given a timeline of end of September 2013 to pay up and we are hoping that by then they will be through; but we are eager and gingering them to make it happen before the time. “I’m one of those that think that the revolution that would soon happen in the power sector will beat that of telecommunications sector,” he said.
Mr Oladele Amoda, the chief executive officer, Eko Electricity Distribution Company, in his remark complained of funding which, he said, has challenged service delivery of the zone.
Amoda therefore appealed to the minister to assist in allocating fund to the zone as the company was faced with challenges of underground cables which had been installed 30 to 35 years ago.
The age of the cables, he stressed, makes it impossible for them to address certain technical issues.
“`The technical section of the workforce is depleting at a very high range. `We also face an obsolete 3KVA switch gear in the zone while vandalism of our network has been on the high side,” he said.