Management Problems Of Public Corporation.
Management plays an important role in any public corporation. It is important to note that public corporation enterprises in any given economy has important role to play in the rapid socio-economic development of the country. Government owned corporations and business in Nigeria are established to accelerate the pace of economic development in which government is the major investor.
Due to the important roles associated with the major public corporations in Nigeria, There is need for good management for its efficiency.
It is fact that government spends large sums of money in setting up these corporations and thus, looks forward to making profit.
As a result of inefficiency in running these corporation, federal government and state government have in the recent past set up committee which studied the public coroperations and parastatls and recommended privatization and commercialization of some of these corporations.
These corporations perform so poorly than privately owned business. Since public corporations are important in growth of any economy, there is the need to investigate the problems of public corporations in Nigeria. Also, there is need to identify the reasons for criticism leveled against them.
Despite the enormous investment in public corporations, is Nigeria obviously not getting good value for their money being spend or invested on those public corporations? This is the decision of this research on management problems of public corporations using PHCN as a case study.
1.2 Statement of the Problem
In Nigeria, power supply has been problematic, many industries as well as domestic consumers of electricity complain bitterly about irregular or none power supply the Power Holding Company of Nigeria (PHCN).
The organization, PHCN is scornfully looked at also divided by more than 80% to 90% of the citizenry as failure to the nation, hence the public are not friendly even with the staff.
The Acronym NEPA is ill interpreted to mean (NEVER EXPECT POWER ALWAYS) and PHCN as (PLEASE NIGRRIAN’S HOLD YOUR CANDLES).
This problems has raised the issues of privatization, which since 1988 has been lying on hot bed of controversy between various past government Administrations and workers unions.
NUEE(National Union of Electricity Employees) The various governments have made concerted effort to take the issue. One of such efforts was the constitution of a special task force headed by senator Liyel Imoke in the year 2000 to explore how feasible NEPA now PHCN could be revitalized.
The same problem led to the changing/restructuring some key functionaries or management staff in the organization since the government from their own view believed the problems stem from key game players or administrators.
Consequently, the managing of public corporation (PHCN), strategy implementation, operation and its efficiency is therefore under serious questioning and challenge. This project therefore is carried out to reveal the relationship between management of PHCN and how this has affected the corporation in its bid to give adequate power supply to the citizenry.
1.3 Objectives of the Study
This study is aimed at the management problems of public corporation in PHCN with a view to identifying these problems and therefore coming up with solutions to them as related to the aforementioned corporation.
The general objectives of this study is to identify various problem facing PHCN.
Specific objectives include;
1.To find out if some management problems like inadequate finance, poor managerial skills and inadequate infrastructure are responsible for their poor performance.
2. To evaluate the impact of government interference in the operations of PHCN.
1.4 Research questions
2. Does inadequate infrastructure responsible for poor performance of PHCN?
4. Does government interference responsible for poor performance of PHCN?
1.5 Significance of study
In third world countries, public enterprises are noted for their inefficiency and waste of resources. To save the situation, an inquiry is needed in this sector of our economy especially at this time of economic difficulties facing the country.
The country cannot afford to encourage or entertain any kind of economic waste in our public corporations, since if efficiency is maximized, it will definitely have a positive effect on the improvement of the standard of living of the general public. These are the significance of this study.
And it is hoped that the study of the management problems in the public corporations in Nigeria and PHCN in particular will help management sort some managerial problems so that both worker/staffs and organization will benefit, and the public corporations will achieve more in future.
1.6 Scope of the Study
This study will strictly examines management problem in PHCN, but will not probe into some areas the corporation might consider goals band for non staffs or researchers.
1.4 Limitation of the Study
Research studies in Nigeria are usually fraught with problems. These problems in one way or the other limits the research instincts of scholars and results achievable.
These problems range from uncooperative attitudes of respondents’ vis-a-vis the answer given to research questions.
This is essentially because of low level of development and literacy. Other constraints are finance, scope and time allocated to research studies of students.
This one cannot be an exception. These developmental problems and constraints notwithstanding adequate efforts is one course to ensure that envisaged goals of study were achieved. However, the constraints did not in any way invalidate the findings of this study.
DEFINITION OF TERMS
1. GENERATION DIVISION
This refers to a department or division in PHCN organizational structure (organogramine) that generate power of expected magnitude for transmission station based on the available generating plants/machines. Constraints and capacity of the machine take into consideration. This division is now known as GENCO.
This is a division or section in PHCN that take care of secondary electricity transmission as they carry power from generating source to the distribution centres. The transmission division is the nerve centre of PHCN system operation, responsible for exercising system control in accordance with PHCN statutory duty. Presently this is known as TRANSYCO.
This division is responsible for the planning design, construction of power stations, primary transmission lines and bulk supply of substation.
DISTRIBUTION AND SALES DIVISION
This division is responsible for making electric power available for consumption, both for industrial and domestic use. Presently thus division is also called DISCO. All the Business Unit or Districts in all the states of the federation are under distribution and sales.
This is head of distribution and sales division, it supervises the business units and undertaking and substation that under it.
MEGA WATT (MIN)
Mega = One Million
Watt = This refers to measuring unit/magnitude
Mega watt (MW) therefore refers to million(s) watt power measuring unit/magnitude that is generated as per specification or exposed to be distributed and consumed.
132 KV LINE
K. Stands for kilo (One Thousand)
V. Stands for voltage or rate of power Hence 132 KV line refers to 13200 voltage line which is installed to carry power of electric current to a far transmission or distribution centre.
This refers to PHCN stations that do not have the breath of Districts or Business Units offices. They are usually located outside the state capitals. They are responsible for maintaining faults in the rural area. The management set up of undertakings is lesser in power and accountable to districts or Business Units managers of their state.
This is location where heavy power generating plants are installed for generation of power, for transmission and distribution.
HYDRO POWER STATION
HYDRO = Water
Hydro power station therefore refers to power station that the wheel of generating plant is being propelled by water for generation of current.
THERMAL POWER STATION
THERMAL = Heat or warm
POWER = Current
Thermal power station refers to station that the generating plant is connected with heat energy for generation of current.
MANAGEMENT: High rank officers who plan, coordinate, direct, organize, and control e.t.c a business or similar organization.
ORGANIZATION: Establishment or forming of business by group of people to achieve a particular aim.
POLICIES: Are statement of principles and rules, though and action of an organization in the accomplishment of its objectives.
OBJECTIVE: This is a goal expressed in a form by which its attainment can be measured.
MISSION: A general expression of the overall purpose of the organization or the reasons for the existence of the organization.
EFFICIENCY: This refers to quality of doing some thing well with no waste of time and money.
This chapter reviews relevant literature available on the subject matter management problem 0f public corporation. Review of literature according to Abdelah and Levin (1997), serves several important purposes.
First, it shows what has been done previously in the problem area thus revealing the replication of previous studies. Second, review of literature can indicate whether it is feasible to do the planned research by revealing difficulties encountered by previous researchers.
Third, a thorough related literature can serve as the connecting line between the finding of previous research carried out in the problem area and the results of the proposed study.
In the past many authors have reviewed opinions regarding the problems of management in relation to public cooperation.
This is why Uzoaga (1973) maintained that these institutions are very necessary to Nigeria’s struggle for independence. Writing under the problems to management in public corporation, Umegauna (1953) observed that “In Nigeria we have mixed economy which allows public enterprise to operate with private enterprises”
2.2 History of Electricity Development in Nigeria
The history of electricity development in Nigeria can be traced back to the end of the 19th century when the first generating power plant was installed in the city of Lagos in 1898.
from then until 1950,the pattern of electricity development was in form of individual electricity power undertaking scattered all over the towns. Some of the undertakings were federal government bodies under them public works department, some by the Native Authorities and other by the Municipal Authorities.
ELECTRICITY CORPORATION OF NIGERIA (ECN).By 1950, in order to integrate electricity power development and make it effective, the then colonial government passed the ECN ordinance No.15 of 1950. With this ordinance in place, the electricity department and all those undertaking which were controlled came under one body.
The ECN and the Niger Dam Authority (NDA) were merged to become the National Electric Power Authority (NEPA)with effect from the 1st of April 1972.
The actual merger did not take place until the 6th of January 1973 when the first General Manager was appointed. Despite the problems faced by NEPA, the Authority has played an effective role in the nations socio-economic development thereby steering Nigeria into a greater industrial society.
The success story is a result of careful planning and hard-work. The statutory function of the Authority is to develop and maintain an efficient co-ordinate and economical system of electricity supply throughout the federation. The decree further states that the monopoly of all commercial electric supply shall be enjoyed by NEPA to the exclusion of all other organizations.
This however, does not prevent private individuals who wish to buy and run thermal plants for domestic use from doing so.
NEPA, from1989, has since gained another status-that of quasi-commercialization. By this, NEPA has been granted partial autonomy and by implication, it is to itself. The total generating capacity of the six major power stations is 3,450 megawatts.
Inspite of considerate achievement of recent times with regards to its generating capability, additional power plants would be made to complete the on-going power plant projects. Plans are already nearing completion for the extension and reinforcement of the existing transmission system to ensure adequate and reliable power supply to all parts of country.
By 1970, the military Government appointed a Canadian Consultant Firm “Showmen Ltd” to look into the technical details of the merged to become the NEPA with effect from April 1, 1972.The actual merger did not take place until the 6th of January 1973 when the first General Manager was appointed.
The day to day running of the Authority is the responsibility of the Managing Director.
In the early 1960s the Niger Dam Authority, (NDM) and electricity corporation amalgamated to form the electricity Corporation of Nigeria (ECN).
Then, immediately and after the Nigeria civil war, the management of ECN changed its or name-ration to NEPA.
What is currently referred to as the Power Holding Company of Nigeria was formally known as National Electric Power Authority.
For several years, despite consistent perceived cash investment by the federal government power outages have been the standard for the Nigerian populace, however citizens of the country still do not see this as normal.
Generally, the tariff has been criticized as being too low compared to the cost of generating power. The federal government of Nigeria has increased the tariff to attract foreign investors since the 1st of July 2010 in order to meet the growing concern for foreign investors into electricity sector. According Ifedi, V. (2005, March 21). Power Reform and Electricity Generation.
2.3 The Problem of Ownership
Both the federal and state level, the ownership of public corporation/business are very faulty. It hardly reflects the federal character commission of the country. The nature of ownership gives rise to restriction of equity to government alone at most, if not all the government owned business are hundred percent owned by federal or state government.
This government typically, provide inadequate capital funding and working capital even from inception of the corporation/business effect is that, right from the promotional stages such business/corporation begins to suffer from lack of capital and inadequately low cash.
In this view, Umegauwa (1983) observed that where government is the sole owner, the formation and construction of a company at times takes years in one case. Some times a organization lacks the working capital from the day of commission and becomes difficult for it to perform well.
Supporting this view Fubara (1972) said “the restriction of ownership of government owned businesses to government gives rise to insufficient capital funding and poor working capital position since there are many competing priority claims on government funds and since most of these businesses/corporations/ enterprises of are reputed for poor performance they are usually unable to borrow from commercial Banks.
By the time a government owned business starts real operations; it has accumulated heavy cost, which its poor productive performance makes it difficult to wipe off:
According to Osuji (1979) many of the enterprises are under capitalized and over geared or victim of unreliable cash flows.
2.4 The Problem of Conflict of Objectives
The problem of public enterprises among other things are conflict of objectives. Government set up businesses to provide goods and services for profits just as private companies do.
Yet according to Fubara (1972). “Government where behavioral objectives are in conflict with their profit making intention, the forces with the divergent philosophies of welfare and profit making are counter productive in government owned businesses.
Government through its parastatals, invests in risky ventures in backward area and fix the price of products of these government owned businesses below market prices all for welfare reasons.”
Welfare objectives seem more obligatory to government owned companies than business objectives. All these are in conflict with the profit making intent of government in establishing companies limited by shares.
Hence Umegauwe (1953) indicated that “One is not certain that the Federal Government of Nigeria and State Government have clear cut investment policies.
Then Collins (1980) to show the importance and clear objectives in corporate performance asserted that “Basic to effective legal control is a clear definitions of the objectives of the public enterprises, its policies and objectives (including performance criteria) activities and resources”.
2.5 The Problems of Management
Jack Mic Ovuorie (1958) in his article in the business times of 25th May 1981 titled “The efficiency of parastatals or organization is dependents on the management, the management style adopted and its efficiency depends on the board of directors and the Chief executive who implement decisions long laid down polices and interpret the policies to his subordinates.”
Also Gerald K. Helleines (1948) commenting on the management of government owned enterprises thus wrote “it is clear that the problems encountered by government sponsored development efforts are far from solved, through the more acquisition of revenue which can be employed in the efforts.
The manner in which they are employed is greatly influenced by the degree of expertise available to the policy makers and the degree to which the political or personal inclusion are brought to bear upon policy questions.
According to Fubara (1983) stressed that the organization and management of government owned business lead themselves to external controls and tend to be overly politicized. Consequently company executive directors and staff tend to have goals which are in conflict with those of the companies they serve. This militates against positive performance.
This external control contribution immensely to the poor performance of these government owned companies. According to Collins (1980) there is problem of irregular appointment of unqualified relatives of policies influential or Board members various arms of the government owned enterprise as rewards to political patronage.
Furthermore, the poor performances of government owned business arise from the way their management award inflated contracts that is why Aboyede Ojetunji (1986) mentioned that “The extensive use of contract financing and suppliers credit result not only in large leakage of public funds that hampered the operational viability of many public enterprises through over burdened and unrealistic capital structure”.
Supporting the Aboyade’s view, the business times of money 31st January, 1983 saw the dubious contract award as “the revenue which could be declared as profit by these parastatals which are often wasted through the award of many dubious contract which are hardly executed. In most cases, it is very common to find the jobs which workers of these parastatals are employed to perform being award to contractors. Judging from the effect of extraneous influences Osuji (1979) looked beyond the horizon of the management owned business and indicated that “it looks like government goes sometimes to the extent of imposing contract on these enterprises.
Many contractors merely collect down payment or mobilization fees and defaults without doing the work for which that money was paid Osuji (1979) also identify among other problems of government owned business as high cost of equipment which are usually imported at high inflated cost and inadequate arrangements for the maintenance of the equipment.
In addition some of this equipment most of which are imported are too old to function profitability. More-over the problem of marketing also militate against the efficient performance of government owned enterprises particularly those involved in production of goods and services because its survival becomes difficult in the face competition.
In support of this view, Unugauwe Emmanuel (1953) argued that when the market situation is such that advertising and promotion is indispensable it may not be easy to convince the government to provide money for such costly but necessary marketing support, yet, a organization does not have a future without it.
3.6 Origin of Public Owned Enterprise/Corporation
The advent of public enterprises/corporation in Nigeria can be dated back following the end of second world war. These public corporations are bodies set up the federal or state government wholly owned managed and financed by it. The purpose of establishing these enterprises are mainly to be operating certain lines of business.
These enterprises encompass all corporation Authorities Boards and limited companies set up by specific acts and decree outside civil service.
The initial capital cost of establishing these enterprises are so huge that the individual businessmen found it very difficult to prove such adequate funds to start it.
In view of this, the government then deemed it necessary to provide such funds to finance these enterprise for efficiency and effective operation so that it can provide certain basic services for the Nation as a whole.
These Enterprises started as a trickle in the period between the end of Second World War and Nigeria attainment of independence.
But the creation of these public sector enterprises has risen to flood level since Nigeria independence in 1960 and has been maintaining a steady tempo in the Nation economy.
But also in the recent time the performance of these enterprise are extremely poor as they always end operations in losses rarely break even instead of enhancing efficient and effective performance which was one of the reason for their establishment.
2.7 Electricity as it Affects the Economy
Power Holding Company of Nigeria plc, was incorporated into law on March 11th 2005 of the electric power reform bill by National Assembly, the (BPE) being the secretariat of the National council on privatization (NCP) has set out to implement the provision of the act.
The Power Holding Company of Nigeria plc is initial holding company that replaces the National Electric Power Authority (NEPA) in preparation for its privatization.
Then corporation Affair Commission (CAS) registered Power Holding Company of Nigeria plc as a private company on May 5th 2005 following president assent on March 11th 2005. Electricity has great effect in the economy. Unlike situations where there is power failure this may lead to loss of millions of money in the economy.
a. Causes of Intra-Union Disputes and Inter-Union Disputes
i. Inability of the union officials to have a clear idea of their functions e.g. the elected and appointed officer.
ii. Disrespect to the provisions of the union in book/constitution.
iii. Leadership tussle and class of personality
iv. Cases of fraud and mismanagement of union funds.
v. Arbitrary removal of officers from office.
b. Some of the causes of Inter-Union Disputes are:-
a. Misinterpretation of AP or NIC award
b. Coaching of union members
c. Ideological blocs
d. Personality clash among union leaders
e. The effect of re-structuring exercise
f. Government interventionism
g. Refusal to comply with the inter-justification scope of a trade union etc.
2.8 Cause of the Trade Dispute Between Workers and Employers
With the analysis of types of trade dispute lets deal extensively on the causes of these trade disputes.
a. Economic: These can occur as a result of non-payment of wages or lack of proper adjustment of wages to meet cost of living difficult in establishing a definite wage policy and stabilization of prices at a point which would maintain employment at the highest level and stabilize cost of living and in ability to employment collective agreement on the part of employer.
b. Scope of its Union: but also at variance with the rule 14 of the code of practices which every union is expected to incorporated in its constitutions. Craching or “piracy” and comradeship it should be discouraged and it therefore stood condemned by all men of good will in the overall interest of workers.
The most destructive to trade union movement is intra-union dispute it rocks the union to its very foundation. Both the structure and the administration of the unions put into shambles.
The primary purpose for the formation of a trade union is registered to the background. The sole administrator of a trade union Mr. Abolarimn rightly explained that the creation of large unions would be in itself fruitless, unless the unions can be democratically run so that it will have a positive effect on the cohesiveness of its members thus reducing to its barest and managing level, its internal crisis or disputes.
If on the contrary a trade union is undemocratically men the eventually result is internal crisis or intra-union crisis which will ultimately lead to fractionalization and disintegration.
All officials of trade unions should avoid themselves of the provisions of trade disputes Act (amendment) No. 2 of 1988, which empowers the new minister for labour to appoint a trustee for a trade union that engages in intra-union dispute with in the space of time.
Hence power failure in Nigeria has been of serious concern to PHCN management which lead to power reform (ESPR) Act 2005 by the National Assembly, Nigeria stands on the threshold of in a storm and the down of a new era for a reformed financially viable power sector.
In mind unarguably electricity power availability is a crucial index for economic and industrial emancipation. How does it affect the economy in our industries intensive.
Industries will be affected in keeping on repairing their generator and the cost of maintaining it will increase the cost of production which will have a drastic effective the consumers.
Importance of Information
In an organization were maximum motivational tools in an organization helps to increase the service production and also increase the service rendered by the employees to the public which the workers or employees are motivated through increase in salaries, provision of fringe benefits, training programme, promotion, productivity will increase and enhance a better economy and help in achievement of goals and objective of the organization.
This will also enhance good services to the nation by the improvement in supply of electricity so as to minimize constant failure.
Power Holding Company of Nigeria Plc. Has deemed it right to enter into different agreements and negation with the management and workers.
The organization because of its strategic place in the life and development of the nation recognizes as well as priorities the need to achieve and maintain high level of productivity and industrial harmony (in spite of all odds) at all work location for this reason, management has and will always co-operation with the recognized labour (trade) union which came alive from the restructuring of trade unions into industrial union in the country via Gazette Extra or finery No 6. Of February 1978 and Decree No 22 Trade Unions Amendment Decree 1978.
Scope of Labour/Management Relations
Management and labour constitute a sort of continuum with each at one of ends and relation is between them; in pursuance and furtherance of harmonies relationship on the organization.
PHCN management and the labour union as representatives of the staff therefore engage in regular consultations negotiations and settlement of conflicts/grievances on all matters relating to rates a pay, wage and other working terms and conditions subject to the prevailing provisions of the Nigeria labour law.
The consultative machinery provides a regular from routine consultative assessment of the industrial climate as well as final resolution of such matters as may arises from grievance or conflict management procedure. Labour union and management interactions are conducted at four levels.
a. National Corporate Headquarters
b. Zonal Zonal and Regional Offices
c. Area District and Area Operation
d. Local Undertaking
2.10 Conflict or Grievance Management
Conflict management is a very technical aspect of industrial relation which if not discreetly harness effect on the relationship in the industry.
Therefore as a well as structured machinery must be put in place, and both management as well as labour must agree on its modality and ensure compliance with the structure, by delegating power to each level of management union functionaries.
This will ensure the avoidance of energy dissipation and collision in grievance handling.
a. Grievances Machinery
The term grievance refers to any complained arising out of the interpretation or application of the terms and conditions of employment on the trade unions that grievances should be resolved as speedily and effectively as possible.
The representatives of management and the unions at local, Area and Zonal levels have the competence to resolve problems arising out of interpretation or application of the terms and conditions of employment, and also to hold Adhoc meetings to resolve Local industrial relation problems. Grievances which deny satisfactory local solution arenormally addressed to corporate headquarters for appropriate action.
b. Grievance Procedure
The grievance procedure obliges an employee who has a grievance to make this known in the first instance to his supervisor.
The supervisor will discuss the grievance with the employment concerned and if possible seek to resolve the issue, if the employee is not with action of the supervisor. He may exercise his right to put the matter in the hands of the chapter union representatives who will take necessary steps towards resolving the grievance, if not resolved at the local level the issue may be referred to the zonal level or even to Headquarters, where every step is taken to resolved all grievances.
c. Union – Management Dealing at Different Levels
Records of all proceeding arising from the consultative and grievances machinery should promptly be made available to Head of Industrial relations division at corporate Headquarters, for advice and guidance where necessary. However, union and management meetings outside corporate Headquarters must local matters which fall within their competence.
d. Union/Management Negotiating council
There is one management/union Negotiating council which is commonly referred to as the council in PHCN. This was established after due consultation, between the management and the National Union of electricity and gas workers referred as the union.
The main function of the council is to settle by negotiation the terms of the conditions of employment of employees, subject to the prevailing provisions of customs and lands of Nigeria.
In this respect, the council consider matters, reports, and recommendations presented to its by the National Joint Advisory committee concerning the conditions of service of the relating the turns and conditions of employment of PHCN employees that may from time to time be referred to be the management or the union.
It is necessary to note here that all the Negotiations for is all employees, then all the employees who was not members of the (SSA) senior staff Association or officers of management should belong to the union.
e. The Senior Staff Association
The note will be incomplete if reference is not made to the senior staff association (PHCN Branch). The senior staff Association of statutory corporation and Government owned companies (SSASCGOC) other branches of the SSA in the main body by law are:-
i. Nigeria ports Authority
ii. Nigeria Railway corporation
iii. Federal Radio corporation of Nigeria
iv. Nigeria Airways excluding pilots and Allied staff.
v. Post and Telecommunications (NIPOST)
Basically, the function of the senior staff association is to ensure the improvement of the working conditions of its members and by extension, every staff through consultative meetings with management. Again, it is necessary to advise that all senior employees who are not equally members of NUEGO should belong to the association.
f. The Relationship and the Law
Worthy of note is the fact that the industrial relations practice in PHCN is predicated on fairness to all and encouraged by corporate management commitment to peaceful industrial climate. The approach is well favoured by workers and the unions and has reduced the inclination to go arbitration in conflict management.
Nevertheless the role of the law can be under estimated as it.
a. Provides the frame work within which the industrial relations system operates.
b. Establishes minimum standards and condition below which no one is allowed to operate.
c. Ensures that industrial relations is practiced in the interest of the wider community of which the emptier and employee are merely as small part.
d. Regulates supports and restraining the economic and social power of employers and organized labour.
e. Provides in times of dispute, for the determination if the rights and obligations of the parties through mediators, conciliation and arbitration.
1. The FGN through its national council on predation (NCP) intend to reform the electric sector, governments polices for reforming this sector involves.
a. Promoting competition to improve efficiency and service quality.
b. Crediting a new legal regulatory environment for the sector that establishes a fair and open business environment for suppliers and users of electric power encourages private investment and expertise and meet social goals.
c. Restructuring and National Electric Power Authority (NEPA) and privatizating the entities formed from restricting NEPA.
d. Encourage the successors of NEPA to undertake and ambitious investment programme and,
e. Promoting expansion of electricity supply services throughout the country.
2. Implementation of government policies for reforming the power sector that are out lived above will be guided by its policy statement for Nigeria power sector. This statement provides the policy basic for the consultants to work under these terms reference.
3. The National Council of Privatization (NCP) chaired by the vice-president of the Federal Republic, with the support of its secretariat the Bureau of public enterprise (BPE) is in charge various agencies involved in the reform process the NCP has to fulfill this mandate established the Electric Power Sector Reform Implementation (EPIC) as a steering committee to oversee the implementation of the power sector reform.
4. The consultant will report to the BPE which will facilitate coordination with other consultants and relevant government departments. In particular, the consultant will closely coordinate its work with the legal and regulatory consultants who will be designing the legal frame work for the power industry and with privatization strategy for the competentities formed from the restructuring of NEPA. NEPA being prepared by another consultant will be integrated with this assignment.
2.12 Objectives of Power Reform
The objectives of these consulting services (NCP) and BPE are to
i. Prepare a comprehensive plans for restructuring NEPA
ii. Establishing the enterprises formed from restructuring of NEPA as limited liability companies. Under the Reform process, NEPA was unbundled in to 18 No companies made of six Generation companies (Genco), 1 No Transmission and system operation company (Transyco) and 11 No Distribution Companies (Discos) Names, composition and
Headquarters of the new companies are given below;
S/NO NAMES OF COMPANIES COMPOSITION HEADQUARTERS
1 Niger Hydro Electric Plc Kainji and Jebba Station Jebba
2 Shiroro Hydro Electirc plc Shiroro power station Minna
3 Sapele power plc Sapele power station Sapele
5 Afam power plc Afam power Station Afam
6 Delta Power Plc Delta Power Station Uglullu
S/N NAMES OF COMPANY COMPOSITION HEADQUARTERS
1. Abuja Electricity Distribution Plc Abuja, Lafia and Minna Districts Abuja
2. Jos Electricity Distribution Plc Bauchi, Gombe, makuadi and Jos Jos
3 Ibadan Electricity Distribution Plc Abeokuta, Dugbe, Motate, Ijabu-ode, Illorin Osogbo, and Oyo district Ibadan
4 Benin Electricity Distribution Plc Ugbowo, Akpakpara, Ado-Ekiti, Akwe, Asaba, Warri, Auchi Benin
5 Enugu Electricity Distribution Plc Aba, Abakaliki, Abakpa Akwa, Orlu, Owerri, Onitsha, Ogui, Nsuskka, Umuahia etc. Enugu
6 Kaduna Electricity Distribution Plc Makera, Zaira, Birinim kebbi, Gusau Sokoto and Doka Districts Kaduna
7 Kano electricity Distribution Plc Dala, Dutse, Nasarawa and Kastina Districts. Kano
8 Eko Electricity Distribution Plc Island, Festac and Ijora Districts Ijora
9 Ikeja Electricity Distribution Plc Ikeja, Ikorodu, Alimosho, Shomolu and Oshodi Districts Alausa
10 Port Harcourt Electricity Distribution Plc Ahoada, Diobu, Borokin Calabar, Ikom Ogoja, Uyo and Yenogua Districts Port Harcourt
11 Yola Electricity Distribution Plc Yola damaturu, Jalingo and Maidugun Districts Yola
The Transyco is named National Electricity transmission plc with headquarters at Abuja.
2.13 NEPA Transformation Newsletter
(2003 Vol. 004). In addition to these innovations and unbundling NEPA Board of Directors inaugurated 3 no set up teams. Each for gencos, trasyeos and Discos, which were said to have been given road maps.
These roadmaps are set of activities to be accomplished within given time limits to facilitate the restructuring exercise.
Among the set up teams is the Nigerian electricity Regulatory commission (NERC) this is an independent institution and its main function includes.
i. To create, promote and preserve efficient industry and market structure and to ensure the optional utilization of resources for provision of electricity services.
ii. To maximize access to electricity services by promoting and facilitating consumer connections to distribution system in both rural and urban areas.
iii. To ensure that adequate supply of electricity is available to consumers.
iv. To ensure that the price charges by licenses are sufficient to allow the licenses to finance their activities and to allow reasonable earning for efficient operation.
v. To ensure the safety, security, reliability and quality of services in the production and delivery of electricity to consumer.
vi. To ensure the regulation is fair and balanced for licenses, consumers investors and other stake holders NEPA transformation News letter (2003 Vol. 4).
Quest for adequate electricity supply in Nigeria has been both national, corporate and private issues which has to be treated with urgency equal to this, both the federal government, national Electricity power in the nation are making concentrated efforts to ensure that there will be consultant energy supply within shortest foreseeable future. Consequently there has been translation of ideas and proposed into actions.
MEETING THE NATIONAL POWER NEEDS
EXISTING POWER STATION ON-GOING PROJECTS 7 NEW FEDERAL GOVERNMENT PROJECTS IN NIGERIA DELTA COMMISSIONED IPP PROJECTS ON-GOING IPP PROJECTS
Egbin thermal powers section-lagos state 1320mw Geregu thermal power station Kogi state 44MW Omoku thermal power station- Ricver State 230 MW Aes Lagos 300MW Omoku 150 MW
Afam Thermal Porter station Ricver State 9696 MW Omotosho Thermal Power station Ondo State 335 Gbarain /Ubie Thermal power Station bayelsa State 250 Mw `Agip okai480 MW Ibom Power 188 MW
Sapele Thermal power station Delta State 1,020MW Papalanto thermal power station Ogun States 335Mw Sapele Thermal power Station Delta 500Mw Total 780 MW Total 688MW
Delta Thermal/ Power Station. Delta State 912 Mw
Delta III 120 MWS being replaced by c150 MG GTS Alaofi Thermal Power Station –Abia State 378 MW Ikol Abasi Thermal power Station Akwa Ibom State 270 Mw
Ijora Thermal Power Station Lagos State 40 Mw/One GT is Scrapped) Total 1462 Mw Explain Thermal Power station Edo State 500Mw
Kainji Hydro Power Stion-Niger State 760Mw Egbema Thermal Power Station-Imo State 250 Mw
Jebba Hydro Power Stational Nigeria State Calabar Thermal Power Station cross River State 250 Mw
Shiroro Hydro –power station Niger State Calabar thermal Power Station –cross River State 250 Mw
Total 620 Mw Total 2250 mw
Grand Total = 11, 380 MW