TheCable

In summary, when our Administration came in in 1999, we met seven power stations – Kainji, Jebba, Shiroro, Egbin, Afam, Sapele and Delta – all together in different stages of disrepair and obsolescence, generating about 1500MW.

By 2007, we have added six new stations as follows with the seventh almost completed at Alaoji:

1. Okpai in Delta – 480MW by Agip
2. Afam II – 276MW
3. Omotosho – 330MW
4. Palalanto – 330MW
5. Geregu – 414MW
6. Ikot Abasi-Ibom Power – 145MW – to which Federal Government is a partner.
7. Alaoji – 545MW

To these must be added about 2000MW produced by Rivers State.

We must also take cognizance of the heavy rehabilitation works in all the existing power stations: increasing their available capacity significantly.

There are six NIPP projects in the pipeline and the expansion of Omotosho, Papalanto, Geregu and Alaoji to about 1000MW each by combined cycle and 2500MW from Mambilla.

In other words, in eight years of our Administration, we have provided six new power generating units of almost 2000MW.

There was no transmission work embarked upon between 1982 and 2000.  But by May 2007, we have taken transmission to Bayelsa State for the first time, double the transmission from Shiroro to Abuja to ensure stability of supply.  We have also awarded all the transmission contracts to close the transmission loop and ensure that vandalism of transmission or any fault in the transmission line will no longer keep any part of the country in the dark if there is adequate power generation.  This is to ensure stability of power supply nationwide.  At the same time, we have embarked on pre-paid meter system to reduce non-payment of electricity bills and eliminate unauthorised connection.  We moved from revenue generation of about N2billion per month in year 2000 to about N7 billion per month in 2007.  Repairs on the pipeline that was vandalised in February 2006 and which began immediately were completed only in March 2008.

MONEY SPENT

Finally, let me come to the quantum of money spent on power from 1999 to 2007.  Various figures have been banded around ranging from US$4 billion to US$16 billion.  They may all be right or they may all be wrong depending on what anybody takes as expenditure most of which is constant no matter what amount of power is generated, transmitted or distributed, your figure can be as high as you want to make it.  That figure will include personal emolument of staff, pensions, gratuities, transportation, maintenance, rural electrification, etc.

If you take staff emolument, etc, out and limit expenditure to only running or operating costs and capital expenditure for generation, transmission and distribution, you will get a new set of figures.  If you add power-related training and expenditure in other ministries and departments such as education, NNPC and industry you will get yet another set of figures.  If you limit yourself to capital expenditure and running costs you will get a set of figures that can truly be said to be really expenditure on power.

I have been told that the figure in this regard from 1999 to 2007 is in the region of $6.5 billion including outstanding letters of credit.  But whatever figure you choose to take, to say that there is little or nothing to show for it is the greatest understatement of the year which will tend to portray inadequate knowledge or ignorance.

From what I have said above, there are results to show for the expenditure. What is required is serious, adequate and committed follow-up and sustenance from where we stopped. If the total expenditure has not translated to power availability at our homes and for our industries, it is because the little additional expenditure that is necessary for completion or for sustenance has not been made.  For example, if you spend $200 million on a power station and the switch gear costing less than half a million dollar is not installed, you will not get the benefit of the $200 million already invested.  For the uninitiated, nothing has happened.

Let me, at this juncture, crave the Committee’s indulgence to express appreciation, once again, to those my colleagues, collaborators and assistants who joined hands with me in serving Nigeria loyally, committedly, honestly and sacrificially.  You have done your best for your country, you have made your mark and I am sure the fruits of your labour will continue to be seen and surely appreciated.  I am proud of the achievement we have made together. One thing that anybody may charge against almost all of us under our Administration who were involved in solving the power problem from 1999 to 2007 is passion and zealousness.  I will, however, accept such a charge without any apologies as I see passion and zealousness for the good of Nigeria as a virtue worthy of emulation.

I thank friends, relations, well-wishers and concerned citizens who have got in touch with me by letters, telephone calls, e-mails and text messages to express their feelings and concerns.  The lot of reformers must be understood is not without its pain and stress.  We have no regret for all that we have done for our country and humanity. We thank God for the opportunity to serve Him by devotedly serving our country and we thank Him for His grace. We also thank Nigerians and friends outside Nigeria who appreciate what we have done. I am so confirmed and encouraged by the good we have done for this country politically, economically and socially that I have no regret whatsoever.  We have taken Nigeria to where it should be within the limited time we had.

Honourable Chairman and Honourable Members, thank you.  I am ready to deal with any allegations or approvals which my presentation to you so far has not clarified or adequately explained.  But let me just add that no approval or programme or policy was granted or embarked upon for personal enrichment or aggrandisement.  If, however, any official or public officer has made a genuine mistake, he or she should be sanctioned and corrected at the same time.  I understand that threats for all sorts of spurious reasons are being issued for other investigations, no honest officials or political officers who served in my Administration should feel threatened by such threats if their hands are clean and clear.

Chief Olusegun Obasanjo, GCFR

May 12, 2008