NLC Opposes FG’s Plan to Restructure Power Transmission Company

•Alleges plot to hand-over facility to cronies  

•As TCN pays N1.7bn compensation to over 1,000 landlords in Kano

Onyebuchi Ezigbo in Abuja and Ahmad Sorondinki in Kano

The Nigeria Labour Congress (NLC) has faulted the proposed plan by the federal government to restructure the Transmission  Company of Nigeria (TCN), as stated by the Minister of Power; Mr. Adebayo Adelabu.

It alleged that the move was laden with similar hidden agenda employed to foist on Nigerians the privatization of power generation and distribution companies to non performing entities.

Meanwhile, in Kano, TCN has paid over N1billion to about 1,000 houses and 500 uncompleted buildings marked for the passage of electricity transmission line in Kumbotso, Ungogo and Gwale Local Government Councils in the metropolis.

The affected areas include Samegu, Gaida, Rijiyar Zaki, Unguwar Jakada, Danbare, Rimin Gata, Chiranchi, Kuyan Ta Inna, Rimin Zakara, and Unguwar Kwari among others.

According to NLC, the new plan of government will bring more crises to the power sector if not jettisoned.

In a statement signed by NLC President Comrade Joe Ajaero, the labour movement said the proposed restructure of TCN portends great danger to the power sector and holds great fear and trepidation for major stakeholders within the power sector.

According to NLC, “It imperils the ability of the state to control, regulate and guarantee the safety of the nation’s grid system at all times.

“We want to quickly say that the idea behind the so-called plans to restructure is the same big grammar that was spoken before and during the failed privatisation exercise of the sector.

“They are the same stories that Nigerians have heard over the years which have largely yielded no significant results except the increased suffering that the exercise became for Nigerian people and the economy.

“It is clear that the main motive behind the plans for the proposed restructuring is none other than to prepare the TCN for eventual take over by the cronies and lackeys of the ruling elite.”

While recalling past experience with privatization in the power sector, NLC said that though arguments like the unbundling of power sector entities were adduced, the exercise failed impress Nigerians in the end.

It said: “Unbundling heralded the death of the downstream sector of the nation’s petroleum sector, it sounded the death knell on the power sector and raising its ugly specter once again at this time when the people are facing serious socioeconomic challenges may compound the woes of the people.

“NLC believes that the President is making the same mistake previous administrations have made with the policy direction his Minister of power is trying to follow in seeking to unbundle TCN for privatization.”

With regard to the privatized power sector entities, NLC said Federal government had paid about N2.8 trillion in subsidy for the companies it handed over to the private sector.

It said whereas the companies were sold at about N400 billion yet, government has spent multiples of that in tax payers’ funds as pay outs to those who bought the privatised entities.

“Consequently, the sector has been handed over to banks due to the inability of the proxy investors to pay their loans to the banks. The, managerial and technical competence as well as Foreign Direct Investment has eluded the power sector as result of this primitive economic policy. It is this same route that the Government is proposing to follow again,’ it said.

NLC also faulted the President’s inability to convene a genuine national stakeholders’ forum to critically review the privatisation exercise in the sector which the government itself agrees has failed to attain its major objective.

It argued that embarking on a similar privatization exercise would bring more crisis to the Power sector.

“The disaster that will befall the nation’s power sector would be multidimensional. The quest to ultimately handover the Transmission infrastructure would expose the nation to blackmail and weaken the ability of the sector to transmit and distribute power around the country.

“Privatizing it will create the same crisis prevailing within the DISCOs and GENCOs and will impact the quality-of-service deliverance by the Power sector to Nigerians.

“It has to be remembered that we protested against a nation that was hell bent on committing suicide in the power sector 10 years ago.

“We talked about the consequences that Privatisation exercise was going to be for the Power sector and for Nigerians but it was not heeded.

Today, Nigerians have witnessed 500 percent tariff increase yet, there is no improvement in services to Nigerians.

“The Power sector remains stagnant as no significant investment was made by those who bought the GENCOs and DISCOs through proxies. What we are reaping today are the unfortunate outcomes of the errors of yesterday and it is obvious that we are bent on going the same route.

NLC said the Nigeria’s economy would be worse in the next 10 years if a conscious power policy devoid of undue influence by neoliberal economic apologists is not designed.

“We need to wean not only our power sector but our entire economy from the apron strings of the forces of capitalism and its philosophical foundations if we are to make real progress as a nation.

“It is important that we learn from the mistakes of the past so that its errors are not repeated and the same consequences befall our nation again. If care is not taken, this may be another hope betrayed”.

Meanwhile, in a press conference in Kano, Engineer Bashir Mohammed Gote, the General Manager of the Company in the state, explained that TCN has paid its own part of the compensation to the owners of the buildings.

He said the TCN acquired the structures as part of the effort to boost power transmission by 1200MVA at 330kV and 1800MVA at 132kV before the end of next year.

The General Manager pointed out that the region as of now boasts of 600MVA at 330kV level and 1295MVA at 132kV level, adding that upon completion of the ongoing works, it is expected to be 1200MVA at 330kV and 1800MVA at 132kV by the year 2024.

His words: “With the ongoing transmission rehabilitation and expansion programs across the nation, some projects are sited in some of the transmission substations in the region. Some of the project were completed this year while some are ongoing.

“Construction of 2x150mva 330/132kv and 2x60mva 132/33kV transmission stations at Rimin Zakara Kano. The substation is the second 330/132kV transmission station in Kano. It was completed early this year without line.

“The station is expected to get supply from Kumbotso before the construction of the quad line from Kaduna but due to some right of way issue between Kumbotso to Rimin Zakara which must be address before the line will be completed.”

The General manager explained that the TCN Kano region covers three transmission sub region of Kano, Katsina and Hadejia in Jigawa State transmission substations.