PRIVATIZATION AND NATIONAL DEVELOPMENT IN NIGERIA: A CASE STUDY OF NIGERIAS POWER SECTOR.

BY

ERUNKE CANICE ESIDENE

REG. NO. NSU/SS/013/MSC/06/0

RESEARC! T!ESIS
IN PARTIAL FULFILLMENT OF T!E AWARD OF MASTERS OF SCIENCE "M.S#$ !ONOUR DEGREE IN PUBLIC POLICY ANALYSIS% DEPARTMENT OF POLITICAL SCIENCE% NASARAWA STATE UNIVERSITY% KEFFI.

SUPERVISOR: MALLAM YAHAYA ADADU

DECEMBER% &00'.
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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 re uirements for the award of !"Sc #$ons% Degree in Public Policy Analysis& of the Nasarawa State 'niversity& (effi"

)))))))))))))))))))))))) Chairman& Supervisory Committee )))))))))))))))))))))))) *esearch Supervisor

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)))))))))))))))))))))))) $ead& Political Science Dept"

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DECLARATION I hereby declare that this research wor- in its original form has been carried out by me& +run-e Canice +sidene with *egistration Number NS'.SS.!S"c./01./2./3 of the Department of Political Science& 4aculty of Social Sciences& Nasarawa State 'niversity& (effi"

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DEDICATION I humbly dedicate this research wor- to 5od Almighty for $is mercy and the strength he has given me to carry out the study" +nough respect goes to all lovers of democracy& good governance& peace and stability across the world"

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ACKNOWLEDGEMENT I wish to than- 5od Almighty for this wor-" !y humble ac-nowledgment goes to my mum& !rs +lizabeth +run-e& my Sweet heart 6lessing& and my little baby 5od 4avour +run-e" I am sincerely indebted to my friend& Austin !bogo& +me-a 7ogu& 6ello 6abanuma& !r 'sman Abu 8om and all my Senior colleagues in Political Science Department" I wish to recognize !aster 6eshiru Abu for his computer s-ills and that he has put in this wor- to ma-e it a success" !ay I specially ac-nowledge my $9D and Dean of Social Science 4aculty Assoc" Prof" S"A" Ibrahim& !allam :ahaya Adadu& my erudite supervisor" $e has been of immense contribution to the success of this research" !ay I recognize specially our vibrant academic gurus in the Political Science Department& Dr" S"!" 9modia #Phd%& Dr" Abdullahi :amma #Phd%" 8his feat is not complete without mentioning my overall mentor& Prof" Inno '-ae;e& Prof" Sam Amdii& Dr" <ibril Abdulmumin& and Alha;i !odibbo may 5od shower his blessing on all of you" And may he -eep you in all you do" Amen=

TABLE OF CONTENTS 8itle Page>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Certification>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Declaration>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Dedication>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Ac-nowledgement>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 8able of Contents>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> ?ist of Acronyms >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Abstract>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> C!APTER ONE: INTRODUCTION Introduction. 6ac-ground to the study>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Statement of the Problem>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> *esearch Buestions>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> *esearch 9b;ectives>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> *esearch !ethodology>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Scope and ?imitations>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> *esearch $ypothesis>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> i ii iii iv v vii viii i,

0"0 0"@ 0"1 0"C 0"A 0"2 0"3

0 A 2 3 3 D E

@"0 @"@ @"1 @"C @"A @"2 @"3 @"D @"E

C!APTER TWO: LITERATURE REVIEW AND T!EORETICAL FRAMEWORK Privatization >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 0/ 8he Concept of Development>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 00 Privatization and Commercialization in Nigeria>>>>>>>>>>>>>>>>>>>>>>>>> 0A Privatization& ?iberalization and National Development>>>>>>>>>>>>>>> 03 8he Concept of 'nderdevelopment>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> @0 8he Concept of +conomic 5rowth>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> @1 Privatization and ?iberalization in 5lobal Perspective>>>>>>>>>>>>>>>>>> @C Privatization of +nterprises in Nigeria >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> @D Accountability in the Power Sector and Nigeria National Development>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 1/
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@"0/ Privatization of P$CN and National Development in Nigeria>>>>>>>>>> @"00 Challenges of Power 5eneration and NigeriaFs Socio>+conomic Development>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> @"0@ NigeriaFs Power Sector *eform >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> @"01 8he Alternative +nergy 9ption>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> @"0C 8heoretical 4ramewor->>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> C!APTER T!REE 1"0 *esearch !ethodology>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 1"@ 8he Study Population>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 1"1 Sampling 8echni ues>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 1"1"0 Stratified Sampling>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 1"1"@ Simple *andom Sampling>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 1"1"1 Cluster Sampling>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 1"C *esearch Instrument and Delimitation>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 1"A !ethod of Data Analysis>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 1"2 1"3

12 C0 A0 A1 AA

20 20 2@ 21 21 2C 2C 2A

Buota Sampling>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 2A Purposive or <udgemental Sampling>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 2A C!APTER FOUR

C"0 C"@ C"1 C"C

Data Presentation& Analysis and Interpretation>>>>>>>>>>>>>>>>>>>>>>>>>>> 8esting of $ypothesis>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Discussion of *esults>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Conclusion.Inferences>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

22 3E D@ D@

A"0 A"@ A"1

C!APTER FIVE Summary >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> D1 Conclusions>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> DA Policy *ecommendations>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> DA *eferences.6ibliography>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> DD

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LIST OF ACRONYMS P$CN: P7D: N+SC9: +CN: NDA: N+PA: I!4: 76: SAP: N++DS: 5NP: !D5: ICPC: +4CC: A*: ND: NIPP: NDP$C: AI8: NASS: Power $olding Company of Nigeria Public 7or- Department Nigerian +lectricity Supply Company +lectricity Corporation of Nigeria Niger Dams Authority National +lectric Power Authority International !onetary 4und 7orld 6anStructural Ad;ustment Programme National +conomic +mpowerment and Development Strategy 5ross National Product !illennium Development 5oals Independent Corrupt Practices Commission +conomic and 4inancial Crimes Commission Aso *ocNational Development National Integrated Power Pro;ect Niger>Delta Power $olding Company Africa Independent 8elevision National Assembly"

viii

ABSTRACT Nigerias public policy thrusts over the years towards the socioeconomic 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 Privati ation and National !evelopment vis-"-vis Nigerias power sector reform. #he 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 Nigerias public space in relations to the welfare of the people at large. #he submission of this research is that the present administrations bid to restructure the power sector does not seem to have the re$uired answer to incessant power outage in Nigeria. Hence, the nuclear energy option remains the available mechanism for effective and efficient power supply in Nigeria. #he research sums up with conclusion and policy recommendations for improved performance of the already comatose power sector in Nigerias %ourth &epublic and beyond.

i,

C!APTER ONE INTRODUCTION 1.1 INTRODUCTION/ BACKGROUND TO T!E STUDY 8he Nigerian political economy is bereft with ab;ect lac- of policy focus& development& progress& stability& efficiency& accountability& participation and responsiveness on the part of state actors in the socio>economic scheme of things" 8his is against the bac-drop of poor governance arising from lac- 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" Conse uent upon the foregoing& there seem to be no closer remedy geared towards revamping the Nigerian che uered 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 ma;or infrastructural development #including the embattled power sector% are diverted into private poc-ets with impunity" All of these clearly define the sorry state of the present Nigerian economy as part of the problems of underdevelopment" 8hings however& are falling apart in the affairs of governance in the Nigerian state while the centre can no longer hold" $owever& 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 e,istentials for the overall interest of its people" $owever& 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 ma;ority interest becomes the core priority of government and its agencies in the distributive processes of the wealth of nations" $owever& such acts of distributive policies would only enhance the uality of lives of the people only through such measures that fosters e uity& fairness& national integration& peace and tran uility& distributive ;ustice& to mention but a few" 8he 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 framewor-s of nation>states in the present era of globalization" Policy ob;ectives of a nation>state directly or indirectly affects the direction of its internal and e,ternal growth and development" 8hus& the Nigerian privatization policies as it affects power sector reforms is a function of its socio>economic and political growth process" 7hile 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 NigeriaFs growth to greater heights in the @0st century and beyond" 8he thrust of this thesis is to e,pouse on the concept of privatization and its impacts on the NigeriaFs power sector as well as e,amine the

various situational constraints that follows such policy actions in relation to the overall well>being of Nigerian citizens" 8he thesis also considers the nuclear energy option as a veritable means of sustainable power generation and distribution in Nigeria"

4or the purpose of clarity& there is the need to trace the ecology of the Nigerian power sector from history and e,amine how it became transformed to the present status of Power $olding Company of Nigeria #P$CN% today" 8he history of the Nigerian power sector is as old as colonialism itself" Power generation in Nigeria could be traced as far bac- as 0DE2 with the installation of the pioneer power station in ?agos under the auspices of the then Public 7or-s Department" 8he process of transmutation then continued via the activities of sta-eholders in the sector& namely& the ?agos State !unicipal Authority" $owever& the emergence of the Nigerian +lectricity Supply Company #N+SC9% latter in 0E@E witnessed an e,tension and diversification of the power sector through the construction of the famous (urra 4alls near the present <os& capital of Plateau state" 8he establishment of the +lectricity Corporation of Nigeria in 0EA0 mar-ed a turning point in the power supply process in Nigeria with the first capacity generation to the tune of 01@-v watt" ?ate in 0E2@& the I;ora 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 0E2@ with the mandate to further develop and enhance the hydropower potentials of the country" $owever& the merger between the +lectricity Corporation of Nigeria and Niger Dams Authority gave rise to the abrupt change of nomenclature to the contentious National +lectricity Power Authority #N+PA% in 0E3@ #Cole& 0E3@%"

Interestingly& however& the enabling Decree No" @C of 0E3@ gave the necessary impetus to the merger of both the +CN and NDA& the essence of which the procedure defines the critical economic& technological and social development of the Nigerian state as a whole" 4rom 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" 8hus& 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" 8he primacy of this research therefore highlights -ey 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 #+-po& 0EE3%"
C

0"@

STATEMENT OF T!E PROBLEM 8he relevance and usefulness of any piece of research is determined to a large e,tent by its ability to address fundamental problems of society #Nigeria inclusive%" 8hus the Nigerian electricity dilemma during the post>colonial era has been a ma;or constrain to socio> economic and political development and sustainability" 8hus& ab;ect lac- 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& ine uality& lac- of transparency and accountability& lac- of responsiveness& money laundering& total blac-out& high maternal and infant mortality& lac- of economic growth& development and sustainability& sudden change from public sector to private>sector driven economy with its attendant conse uences& to mention but a few" 8he fundamental uestions to asfor the purpose of see-ing 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 li-e Niger& 8ogo and 6eninG 7hat positive impact can privatization of the power sector bring to the Nigerian economyG 7hy is there lac- of participation of Nigerian citizens in the privatization e,erciseG 7hy has the privatization of the power sector being s-ewed towards the interest of few wealthy Nigerians to the detriment of ma;ority of the Nigerian masses" 7hat could be the environmental effect of nuclear energy option adopted by !r President and whyG 7hy has there been massive cases of
A

vandalization& illegal connection& theft of P$CN power installations& corruption and the li-eG 7hy is it that there is absolute lac- of faith and hope on the current investigation on the power sector by NigeriansG what is responsible for lac- of public participation& among others" 8hese are ma;or 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 @0 st century and beyond" 1.3 RESEARC! 1UESTIONS 4or the purpose of this study& the following set of research uestions will be considered: 0" Does privatization of NigeriaFs power sector impact positively on national economic developmentG @" 7hat is the e,tent of civil society participation in the privatization of NigeriaFs power sectorG 1" 7hat are the global implications of privatization of NigeriaFs power sectorG C" $as the efficiency of NigeriaFs power sector any lin- with privatization and divestiture of the sectorG A" Is the lac- of competition and enabling environment in Nigeria responsible for the poor state of power supplyG 2" Privatization of NigeriaFs power does not imply e,press national development in Nigeria"

1.2

RESEARC! OB3ECTIVES +ssentially& this research attempts to produce a theoretical e,planation of the privatization policy in relation to NigeriaFs power sector and how it affects national development" 8he following research ob;ectives shall be considered:

i%

8o clearly define the relationship between privatization and the socio> economic well>being of the Nigerian society"

ii%

8o fully understand the ma;or challenges on the part of the Nigerian power reform as well as define appropriate measures out of the dilemma"

iii% 8o ascertain the environmental cost implications of privatizing the energy sub>sector in relation to the Nigerian political economy" iv% 8o e,amine the implications of the global dynamics of privatization& deregulation and di>vestment policies in Nigeria and Africa at large" v% 8o 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% 8o e,amine the environmental impact of nuclear energy option in an attempt by the federal government to profer lasting solution to epileptic power supply in Nigeria" 0"A RESEARC! MET!ODOLOGY 8hus 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 uestionnaires and observation as well as face>to>face contacts with the respondents" 8he secondary source of data collection for the research involves the use of information sources to include& among others& government publications& ;ournals& periodicals& research papers& magazines& papers presented on similar topic by scholars& to mention but a few" 8his is to enhance the efficacy of the study" 8he result of the sample will also be sub;ected to further empirical test through the use of chi>s uare& goodness>of>fit to enhance viability and scientific outloo- of the research"

1.6

SCOPE AND LIMITATIONS 8his research see-s to loo- at the policy underpinnings of privatization of NigeriaFs power sector and its implications on the nationFs development process within the 9basan;oFs regime #0EEE ) @//3%" +ssentially& NigeriaFs socio>economic policies in the @0 st century attaches primacy to the issues of privatization& liberalization& divestment and deregulation which are concepts and practices a-in to the 6retton wood system of the I!4.7orld 6an-" 8hus& the thesis e,poses 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"

6y e,tension& however& the limitations and constraints of this study encountered are enormous" 9f utmost importance is the time factor& finance& inade uacy of documented materials for research& to mention but a few" All these are ma;or encumbrances on the path of the researcher in the process of carrying out this onerous tas-"

1.

RESEARC! !YPOT!ESIS 8he following hypotheses were drawn to guide this research"

0%

8here is a relationship between national development and privatization of NigeriaFs power sector"

@%

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 uantitative analysis to accept or re;ect them"

C!APTER TWO LITERATURE REVIEW &.1 PRIVATIZATION 8he concept of privatization is multidimensional in outloo-" In the first place& privatization could be used to mean the tendency where government shares are sold to private investors" 8his 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& @///%" 6y e,tension 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 governmentFs regulatory roles to chec- abuses of the mar-et focuses #7ogu& @//3%" 5oing by the foregoing analysis& it is the opinion of the researcher to add that there is therefore a moral lin-age between the concept of privatization and national development" $owever& 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 s-ills& sustainability& high standard of living& low death rate& high level of literacy& absence of diseases& low crime rate and absence of

0/

corruption" #'sman& @//1% Development at the national level portends capacity utilization and institutional building& structural

differentiation& nation>building practices& better and sustainable socio> economic policy options" 8his appears to be the actual lin-ages 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" 8he two concepts& however& are mutually reinforcing& liberalization in its real sense therefore could mean some level of openness& removal of obstacles& restrictions& e,cessive tariff and regulation" 8herefore& 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 mar-et system aimed at profit ma,imization #Coo- and Patric-& @///%"

&.&

T!E CONCEPT OF DEVELOPMENT Development has been interpreted in different ways by different people" $owever& this study embraces both traditional& dependency and the contemporary or new development thin-ing"

6y e,tension& 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 5ross National Product #5NP% at a fairly progressive level #8odaro and Smith& @//1%" $owever& to this researcher& development within
00

this conte,t is purely economical and the economic inde, as above may not necessarily reflect the living conditions of the people in NigeriaFs privatization process" It is the conception of this researcher that the benefits of privatization policy in Nigeria should e,tend to all segments of the society" 8his process is referred to as tric-le>down effect" 6esides& 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 #*ogers& 0E2E%"

5oing by the foregoing analysis& development can be used as a synonym of westernization" 8his means for a nation>state to subsist& it must therefore embibe the cultures and traditions of the western capitalist worlds of +urope and America" In the light of the above& A-e #@//0% pointed that development is modernization and the latter is e ual and proportional to the former" 8o A-e #@//0%& development is an off>shoot of capitalism and the two concepts are mutually reinforcing" 8hus we can clearly see from his school of thought that: ' (n its most common form, moderni ation theory posits an original state of backwardness or underdevelopment characteri ed by, among other things, a low rate of economic growth that is at least potentially amenable to alteration through the normal process of capital. #his original state of backwardness is initially universal. )ccording to the theory, the industriali ed countries have managed to overcome it. )ll the other countries could conceivably overcome backwardness too it they adopted appropriate strategies' *+,,-.-/0.

0@

4rom the foregoing& it can be deduced that development can be made possible through the replication of western paradigm of socio> economy development" 6ut the gap in this literature as it relates to Nigerian privatization process is that virtually all economic measures used in developing countries are merely pac-aged and delivered to us from the 7est" And these pac-ages are alien to African cultures and practices" 8herefore& the options can scarcely find a fertile ground to subsist in the African soil" 8herefore& privatization& inspite of its seemingly relevant postures& may not yield the re uired results in terms of national growth& development and sustainability" $owever& the disappointing performance of most 8hird 7orld countries of Africa& Asia and ?atin American may well suggest the move towards a new thin-ing of development practices" 8his is to say that mere increase in per capita income without a corresponding e uity and fairness in the distribution of socio>economic good could bring about disparity& poverty& disease& hunger& illiteracy& high level social malaise& e,am malpractice& corruption in both high and low places& epileptic power supply and gross indiscipline in the Nigerian system as a whole #A-e& @//0%" 8hese 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 thin-ing" $ence there is every need for a shift in paradigm in order to properly address development problems of 8hird 7orld countries"
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According to Seers #0E2E%: #he $uestions to ask about a countrys development are therefore. what has been happening to poverty1 2hat has been happening to unemployment1 2hat has been happening to ine$uality1 (f all three of these have declined from high levels, then beyond doubt this has been a period of development for the country concerns. (f one or two of these central problems have been growing worse, especially if all three have, it would be strange to call the result 3development even if per capita income doubled *-454.6+0. 4rom the above e,cepts& development therefore means the welfare& e uality and sustainability of the people at large" 8hus& the meaning of development is one that ma-es 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 #A-e& @//0%" 4rom this conte,t& development can be seen as multidimensional process involving ma;or societal changes in terms of social structures& popular attitudes and national institutions& as well as the acceleration of economics growth& the reduction of ine uality and eradication of e,treme poverty"

Conversely& *odney #0E3@% sees development from the point of view of the individual in terms of s-ill ac uisition and development& increased capacity& greater freedom& creativity& self>discipline&
0C

responsibility and material well>being" At the societal level& development entails the ability of man to ta-e his destiny in his own hands" 8herefore& development means an overall social process which is dependent upon the outcome of manFs effort to subdue his physical or natural environment" Conversely& development at whatever level of analysis precludes une ual relations and contact between the forces of capital and peripheral nation>states" 8his is the result of dependency in 8hird 7orld today" 9f course& this is the direct conse uences of numerous austerity measures adopted in undeveloped world including the emerging trends of privatization policies& #9ffiiong& @//1%"

&.3

PRIVATIZATION NIGERIA

AND

COMMERCIALIZATION

IN

Privatization and commercialization are popular elements in the process of deregulation in Nigeria" 8he two concepts are however& more specialized processes of government disengagement from those economic functions which it now underta-es but which can be more efficiently carried out by others& in the case of privatization #9laghore& 0EE0%" 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 #9lashore& 0EE0%"

0A

In the past& privatization and commercialization has become very critical socio>economic indices for growth& development and sustainability in Nigeria" 8here is therefore a fair amount of consensus that the oil boom of the 0E3/s in;ected the confidence into the public sector about its central role in economic management" 8his new philosophy of the oil boom era was encouraged by the fact that indigenes were generally capital deficient and could not afford to invest ade uately in most industrial ventures" 8hese inade uacies left the commercial sector largely in foreign hands& ma-ing the indigenization programme inevitable if Nigerians were to have meaningful role in the economy" 8o those in charge in those times& government had an obligation to hold a sta-e 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 too- on a life of its own" 5overnment itself participated in all -inds of ventures including steel production to road haulage& clearing and forwarding services as well as importation and distribution of consumer goods #9lashore& 0EE0%" Shortly after the oil boom flopped& the burden of funding the public sector became too much for government" 8herefore& 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" $owever& an enabling Decree to
02

this effect did not come into place until 0EDD" Speculation gave the impression that ideological and regional balance considerations may have had the effect of delaying movement on privatization and commercialization" 8he 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" 5overnment must& therefore& have felt the need to proceed with some caution on the sub;ect 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 NigeriaFs political economic inde, to date" &.2 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" 6y e,tension therefore& the implication of this is to free up resources for private ownership while government serve as regular or watch>dog" ?iberalization therefore appears to have the same connotation with

03

privatization as the former is aimed at opening barriers to foreign investors who may be willing to invest #9lewe& 0EEA%"

4rom the foregoing& there appears to be a lin-age 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 ;udgement and ethical conduct& good political will& transparency and accountability& responsiveness& participation and democratization" All these variables have the capacity and potentials of -ic->starting an oiling economy li-e those of 8hird 7orld countries #Nigeria inclusive% #N++DS Document& @//C%"

6y any standard& to privatize therefore means to try to avoid economic waste& corruption and mismanagement creation of ;ob opportunities& encouraging foreign investors& among others #9-igbo& 0ED2%" 8his researcher if of the humble opinion that the Nigerian privatization process may not yield the desired e,pected results in terms of national development" 8his is owing to the fact that the managers and actors of the state seem to lac- focus and direction in the privatization policies in the country" 8he staggering revelations in the 9basan;oFs 4ourth *epublic where billions of ta, payerFs money have been cornered to
0D

families and friends in political businessH 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 ma;or set>bac- on NigeriaFs path to greatness" All these are artificial creations that may hinder the realization of NigeriaFs vision @/@/ as being conceived by the :arF AduaFs administration"

Conse uently& the concept of national development according to Arvinal and +verett #0EDE% is a widely participatory process of directed social change in any given society intended to bring about both social and material advancement including greater e uality& freedom and other valued ualities for the ma;ority of the people through active participation and greater controls over their environment in all its ramifications" 7ith specific references to the emerging economies of 8hird 7orld& 9lewe #0EEA% 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& e,pansion of social services and cultural activities& full e,ploitation of human and material resources among others"

?i-e privatization and liberalization& national development plans are more or less aimed at achieving ualitative transformation from a
0E

particular level to a more desirable one" 8hus the transformation should be rooted in such a manner that the e,penditure on national resources should be able to improve upon the living standards of the citizenry #7aldo& 0EDC%" As a encompassing pro;ect& 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" 8hese is therefore the tendency to reduce national development plan to or e uate same with economic development" 8he former however has a larger scope spanning all aspects of a countryFs national lives be they political& cultural or economic"

9-igbo #0ED2% wrote that since NigeriaFs first National Development Plans of 0E2@& all other plans have largely remained the same including the latest N++DS initiatives" $owever& the process of preparing national development plan entails the setting of goals and targets e,pected to be attained within a specific period of time" 8he process also involves the formulation of appropriate policies aimed at facilitating the accomplishment of stated goals and targets" 8o this researcher& one very crucial factor that must be ta-en into cognizance during any planning process of development plan in the ob;ective assessment of resources to be e,pended on the plan" 8his is very important against the bac-drop of the fact that insufficient resource base constitutes a ma;or constraints to the overall realization and
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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" 8his is certainly a way forward in NigeriaFs bid to become the worldFs @/th most industrialized nation>state" &.4 T!E CONCEPT OF UNDERDEVELOPMENT 8here are different views by different scholars on the concept of underdevelopment" *odney #0E3@% wrote that underdevelopment is not absence of development" 8his is because every people have developed in one way or another and to greater or lesser e,tent underdevelopment therefore ma-es 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" 8his is the direct result of undevelopment"

8o this researcher& the main pro>occupation here is with the differences in wealth between +urope and North America on one hand as well as Asia& ?atin 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
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appears to impediments to development" Another critical aspect of underdevelopment can also be e,pressed in terms of a particular relationship of e,ploitation between& for e,ample& the capitalist west and the poor nations of Africa& Asia and ?atin America" According to 9ffing #0ED/%" African and Asian societies were developing independently until they were ta-en over directly or indirectly by the capitalist powers of +urope" 8he tradition of this level of e,ploitation and ine uality was further transferred into the very fabric of African comprador bourgeoisie class" 8his eventually has been part of us and hence& there is tric-le>down effect on the entire socio>economic process" 8hus& 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" 8he power sector and its reform strategies have been grossly high>;ac-ed by the powers that be and the loot unconventionally shared among family and friends& government acolytes and Igood boysF 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 +lumelu as a way out of this sorry state of the Nigerian power sector in recent times"

@@

&.6

T!E CONCEPT OF ECONOMIC GROWT! 8he conte,tual issues in NigeriaFs privatization process can be said to be synonymous with economic growth" 8he contention here is that there cannot be privatization without ade uate and viable socio> economic growth" 8he two concepts therefore are mutually reinforcing as well as complementing for overall economic development and sustainability of any society at large" 6y economic growth& is meant the ability of any given economy to provide goods and services& increase human development and capacity& ;ob creation& poverty alleviation& provision of infrastructures& etc" 6roadly spea-ing& economic growth occurs as the economy increases its human and natural resources and plans how to employ them more productively #5bosi& @//0%" 4rom the economic bac-drop& it is easy to consider the concept of growth from the level of increase in 5ross Domestic Product #5DP%& 5ross National Product #5NP% as well as Net National Product #NNP% respectively" Political scientists however hold contrary views on the concept of growth" 8o 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" 8his means however& that there can be economic growth without development and sustainability as in the case of Nigeria #A-e& @//0%" Conse uently& available data shows that the various macro> economic policy measures adopted in Nigeria apparently have not achieved the desired result" !a;or factors however& are responsible"
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4rom all indications& the Nigerian economy is basically characterized by rising levels of unemployment& high food shortages& inflation& poverty and hunger& disease pandemic li-e $IJ.AIDS& e,am malpractice& electoral malpractice& high crime rates& prostitution& rape& child abuse and traffic-ing& among others" All of these are basic economic indicators to show that NigeriaFs privatization process is still a sham and& so& privatization and socio>economic growth are poles apart in the scheme of things in Nigeria #9gbosi& @//0%" 4rom the foregoing analysis therefore& it becomes difficult to compare or rather e uate the Nigerian privatization process with economic growth because within this framewor-& there can be growth without corresponding development" 8he astronomical increase in NigeriaFs foreign reserve arising from sale of e,cess crude oil in recent times have only left more Nigerians in the dar- while the rhetorics of :ar AduaFs Seven>Point Agenda& of which the power sector ta-es 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 0C/ million citizens" &. PRIVATIZATION AND LIBERALIZATION IN GLOBAL PERSPECTIVE 5lobalization means different things to different people" Privatization has come to mean the same thing with the concept of globalization" 8his is because privatization li-e& liberal democracy is a gospel of +urope and America meant to collapse the entire world system into a
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global village" 8hus& the world has now become bigger and comple, in outloo- with near free entry and e,it in terms of mar-et formations& fewer barriers& faster and better communications and transport lin-ages& freer and easier and more global capital flows& large and vicious competition for mar-et at both local& national& regional& international and& in fact global levels #(ande& @//A%" 8hus 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"

4rom 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" 8he 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> mar-s and the adoption of new innovations and best socio>economic practices& discipline and the aspirations to -ic->start ailing economies of bac-ward and nations of the world" 5lobalization and liberalization therefore is not only an African content" It is a practice emanating from the 7est& and then& imposed on undeveloped worlds as a way
@A

out of misery" In Africa as a whole& various concerns have been e,pressed on anticipated benefits of privatization and liberalization" Central to this school of thought are uestions 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 #7ogu& @//3%"

$owever& social science scholars who have professed privatization and liberalization have e ually 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 sub;ect 8hird 7orld 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 ma;or stumbling bloc- in the development concerns of the people of Africa #A-e& @//0%" 9f 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& li-e those of the +uropean countries of 6ritain& 5ermany& Ireland& among others& have been very slow" $owever& it is not surprising to e ually
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;udge the low level of performance and subsistence of privatization programme in this part of the world due to general lac- of transparency& low political will& corruption and lac- of policy implementation on a general scale #+run-e& @//3%" 8his scenario appears to be an e,isting gap in literature as it concerns privatization and liberalization in global scale"

Apparently& the +uropean 'nion appears to have created a single mar-et for goods and services in the 0EE/s in principle" In actual practice& many barriers to cross border transactions have remained in place #Cole& 0EED%" 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 mar-et until recently where there appear to be sudden s-yroc-eting of crude oil prices" 8he researcher is of the view that while privatization and liberalization in +urope #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& 0EDD%" 4or e,ample& the +uropean 'nion Commission has vowed to continue to promote access to local loop to force down call charges and internet costs" 8his is rather strange in the African conte,t" Nigeria& for e,ample has restricted its communications industry to only few companies #!8N& KAIN& !8+?& and 5?9 networ-s%" 8his largely accounts for why there has been poor networ@3

and service delivery in recent times" $owever& it can be argued that the liberalization of the energy sectors in +urope has proved considerately difficult in recent times" $owever& in @//@& the +' reached an agreement for full energy liberalization by @//3 which was a ma;or step forward" Needless to say that +' countries li-e 4rance& 6elgium& 5reece and Ireland& for e,ample& still control about E/ percent of the electricity mar-et #!a;one& @//1%" 8hese uasi>

monopolies use their dominant position to -eep out competitors" It is rather very doubtful that without the push from the +'& these countries would have succeeded in opening their energy mar-et for competition #!a;one& @//1%"

&.'

PRIVATIZATION OF ENTERPRISES IN NIGERIA 8he abrupt sale of public enterprises in Nigeria has been one of the problems in the Nigerian privatization strategies to date" 8he way and manner that most enterprises are sold have been the sources of contentious debates among scholars" According to (ande #@//A%& the problems of privatization in Nigeria is fraudulent and unfair" 8hus& the e,ercise is bedeviled with lac- of proper valuation& incompetence on the part of the valuers& fraud and high>level lac- of technical s-ills #@//A:A2%" Similarly& there is also the issue of assets& which in some instances& are not ta-en into account in the evaluation process" 8his practice is inimical to NigeriaFs economic growth and development" At the level of the private sector& the process remains inhuman&
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insensitive& callous and e,ploitative" 8here is virtually no safety nets for employees of such sectors" 8hus& many of the private sector employers neither provide insurance nor social security for their employees" 8hey do not obey labour laws and therefore sac- wor-ers arbitrarily& for good or bad reasons" !any of them do not have pension schemes" It can be deduced from the above that the private sector is a very hostile environment" 8hey do not in some cases permit their employees to even unionize" 8hus& while inaugurating the National Council on Privatization& president 9basan;o #as cited by (ande& @//A:A3% stated thus: 7tate enterprises suffer from fundamental problems of defective capital structure, e8cessive bureaucratic control or intervention, inappropriate technology, gross in competence and mismanagement, blatant corruption and crippling complacency which monopoly engenders. )s a result of the foregoing, we are privati ing for the benefit of our economic recovery and benefit of life'. 2e are not about to replace public monopoly with private monopoly. &ather 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 *+,,9.9:0. Incidentally& the researcher is of the view that several issues can be decoded from the policy statement of !r President" Again& the issue of morality in the entire e,ercise comes to the fore as in the above" 8he poser therefore is: If government is not trying to hand over the

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country to a few comprador bourgeoisie class in Nigeria as in the case of the erstwhile 9basan;o regime& how should it e,pect the ma;ority poor and the already impoverished masses of the people to afford colossal capital and resources needed to ac uire such enterprisesG If the government was not replacing state monopoly with private sector monopoly& why would she not emphasize on private sector e,pansion and development of their various business empires instead of buying over those whose original owner is governmentG $owever& the presidential speech of NigeriaFs 4ourth *epublic can be reduced to two critical issues ) those of over politicization and poor management of our national resource endowment" +verything else within the state derives from the above #9badan 0E01%" 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 ine,tricably constitutes the 6oards of management of public enterprises" So it becomes difficult to ;ustify the position of government on enterprises failure in Nigeria #9;o& 0EEC%" &.5 ACCOUNTABILITY IN T!E POWER SECTOR AND

NIGERIA NATIONAL DEVELOPMENT 8he content and conte,t 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 ualitative transformation

from a particular level to a more or less desirable and progressive one"

1/

8hus& the same level of transformation is tailored around e,pending 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 wor-able national development inde, in all spheres of our national lives& the Nigerian power sector inclusive"

6y any standard& Nigeria& the most populous blac- African country with an appro,imate population e,plosion of not less than 0C/ million had under its N++DS agenda& and in line with the much tal-ed about !illennium Development 5oals #!D5% earmar-ed monumental development strategies for an enhanced living conditions of her people& of which the power sector reform is one" 8he Nigerian power sector as a matter of fact& is an indispensable sector the re uires 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" 9n the other hand& NigeriaFs fledging democracy may only survive the test of time thereby enhancing socio>economic development& growth and sustainability when the fundamentals of due
10

process and the rule of law are duely and systematically followed #8he News& @//D%"

8herefore&

the

on>going

investigations

by

the

:ar

AduaFs

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 9lusegun 9basan;o 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" 8hus a close e,amination of such aw-ward leadership tendencies as hypocritical& non>challant& self>aggrandizement&

window>dressing& coverteousness greed etc& are prevalent and& hence act as necessary draw>bac-s to our nationFs wheel of progress"

8hese tendencies are basically characteristic of the 9basan;oFs administration where sumptuous contracts worth billions of Nigeria were distributed to both family and friends to the detriment of our national development plans #8he News& @//D%"

In one of the most startling revelations& the out>gone C6N 5overnor& Prof" Soludo told the Committee investigating the power saga that the
1@

Central 6an- of Nigeria paid a whooping sum of NE03"D billion on the power sector contracts" According to him& out of this figure& NC@@"@ billion was paid for ;obs done locally while NC"@ billion was e ually redressed for items sources abroad #8he 5uardian& @//D%" It was also revealed that N02"@ billion was paid to a 5erman company who does not -now the road leading to the pro;ect site& neither was the contract supervised and religiously e,ecuted #8his Day& @//D%"

8estifying before the $ouse Committee on Power and Steel& the former !inister in the ministry and current governor of 9ndo state& Chief 9lusegun Agagu shoc-ed Nigerians when he said it was not within his schedule to -now whether companies bidding for contracts were registered or not #8he 5uardian& @//D%" 8he humble suggestion and ample opinion of this researcher is to say very well that any public office holder who does not -now his constitutional responsibilities may li-ewise be e,pressing his share irresponsiveness" 8his does not apply in our national development pattern as a matter of fact" 5iving his own account which rather concealed more than it revealed& another former !inister of Power and Steel and now present governor of Cross *iver state& Senator ?iyel Imo-e alledged that he had no -nowledge of how some contractors were paid up to 2/ ) 0//L mobilization fees without evidence of first>phase performance #Daily

11

8rust& @//D%" 8his scenario also is a misnomer and hence suggests traces of sycophancy at the level of top bureaucracy during the said period of 9basan;oFs administration" +ventually& however& Nigerians were not fooled by a team of praise>singers who were literally bought over within the Abu;a vicinity to applaud and distract proceedings to cover up this singular evil" Incidentally& a close e,amination 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" 8here is also a deliberate attempt here to play down the issue and cover up the roles played by former president 9basan;o 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 -ind of leadership traits" 8he most critical and dominant picture of this scenario is that of a bloodiest attempt to conceal corruption& criminality and e,ecutive rec-lessness& cover>ups& greed& avarice& self>aggrandizement and convenience at the e,pense of public interest" 8his constitutes a serious setbac- to overall national development in Nigeria #?eadership& @//D%"

Against all odds& it will be recalled that the emergence of president 9basan;o through the beginning of the first phase of Nigerian
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democratic e,periment 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" 8his appears to be the bac-ground from which the Independent Corrupt Practice Commission #ICPC% and the twin +conomic and 4inancial Crimes Commission #+4CC% were created with the hope of stamping out corruption in public lives in Nigeria" 8herefore& corruption as one of the impediments that causes NigeriaFs bac-wardness thereby distorting national development and the corresponding regeneration of ICPC and +4CC generates a lot of enthusiasm and e,citements that at least Nigeria has a saint in the most powerful public office in the history of the country"

4rom the foregoing analysis& Nigerians are now beginning to understand why the eight years of democracy under 9basan;o did not bring any significant improvement in the uality of lives of millions of Nigerians" 9nce 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" 6ut will :arFAdua muster enough courage and goodwill to investigate his predecessor with the trend of window>
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dressing scenario we have had in such cases involving past leaders in this countryG 7ill the powerful political elite in Aso *oc- who probably are parta-ers in this orchestra ever allow fair>play& credibility and transparencyG Nigerians are however waiting with high level of enthusiasm to see what the outcome of this current power probe loo-s li-e at the end of the day"

&.10 PRIVATIZATION OF POWER !OLDING COMPANY OF NIGERIA "P!CN$ AND NATIONAL DEVELOPMENT National development as a concept finds e,pression in virtually every facet of our national lives as a nation>state" 8he 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 thin-ing especially as it relates to power sector and how the same impacts on the welfare of the people"

8he researcher is of the view that privatization of NigeriaFs power sector and national development are two sides of the same coin" 8his 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 lac- of will power to control public
12

resources in the interest of public goods" 8hese appears to be the ma;or reasons for privatization in Nigeria" $owever& one stri-ing contradiction is that Nigeria has found it difficult to move on her road to development inspite of huge sums of money dished out from the ta,>payerFs money for developmental purposes" 8he uestion is: who is actually responsible for this state of affairsG Again& can this scenario impede or retard developmental efforts in NigeriaG 8hese and many other uestions form part of the discussion to water>down the concept of national development as it relates to the P$CN in Nigeria"

8he 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 wor-ed out in favour of a few comprador bourgeoisie class" 8hey include the powers that be namely& government& cronies and acolytes& state machineries and top bureaucrats respectively" 8hese are ma;or obstacles to NigeriaFs growth& development and sustainability #8he News& @//D%" 8hese agents of government have literally high>;ac-ed 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 #+run-e& @//3%" 8he afore>going does not by any standard guarantee accountability& transparency and probity in the scheme of things" 8here is therefore no survival and smooth ;ourney to nationhood" 9f particular interest to this study is
13

the probe e,ercise on the defunct 9basan;o 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 @//D during President 'mar !usa :arFAduaFs administration according to the then !inister of State for +nergy #Power%& $a;ia 6alarabe Ibarahim was uoted as saying that about M01"@ billion was e,pended by the 9basan;o administration between 0EEE and @//3& both at the commencement and terminal stages of his rulership #8he News& @//D%" Public testimonies accruing to this deliberations revealed that power contracts award was treated as a bazaar by the past government" 8hus contracts were not only awarded without observance of due process& but that most of the contractors poc-eted huge sums of money without e,ecuting pro;ects for which the funds were meant to serve #AI8 News& @//D%" It is also interesting to note that the chief e,ecute was also directly involved in the award of contracts without necessarily involving the !inistry of Power and Steel" 8here were also contractors who have not bothered to visit the various sites of their contracts& but have collected billions as mobilization fees #9luo-un& et al"& @//D%" An e,ample is the N0 trillion National Integrated Power Pro;ect #NIPP% facility embar-ed upon by the 4ederal 5overnment of Nigeria in collaboration with the states and local councils in @//A #Amaechi& @//A%" 8o a large e,tent&
1D

the pro;ect involves the construction of new power stations& mostly in the South>South zone" 8he gas power plant is therefore to be managed by the Niger>Delta Power $olding Company Plc #NDP$C% including those of Calabar in Cross *iver state& +gbema in *iver state& Sepele in Delta state& respectively #8he News& @//D%"

5oing 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 e,ecutives of most states in the country" A clear case is the former !inister of Power and Steel& !r ?yel Imo-e"

9lotu #@//D% rightly points out that collaboration and sabotage is so effective so much so that: ' with ;bsanjo and (moke in control, the National (ntegrated Power Project contracts were handed over to their friends and associates like candies at childrens party. ;ver 6,, contracts were approved, while 6<, payments were made *+,,/.550. 8he aforementioned to the researcher is a negation of civilized practices& due process and the principles of transparency and accountability" 8his to a very significance e,tent does not promote national development" In a similar development& Abdullahi #@//D% wrote that: ' Nigerians were stunned to learn at the public hearing that despite the payment of about N+9: billion, *an e$uipment of =+.-, billion0 to
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contractors, work has not commenced on most of the project sites. >ontractors and supposed supervisors of different projects openly contradicted each other on the e8istence of certain projects, the contract sum and the e8tent of work *+,,/.5:0. 8he episode as captured above is in e,haustive in the e,planation of the level of bac-wardness& underdevelopment& misery& poverty and degradation in which the entire Nigerian state has been plunged into" 8here is no gain saying that these ugly practices has the potential of disrupting the plans& policy targets& aspirations& contents and flavour of NigerianFs dreams towards a highly industrialized political entity" 8here is no doubt that in the midst of epileptic power supply" !a;or infant industries will suffer& hospitals will close down and the e uipment -ept fallow for lac- of power supplyH Nigerian youths will further romans with crime and social vices for lac- of employment opportunity where there no companies to absurb the wor- forceH high level of e,ploitation will reign supreme as imported mini power generators are sold at e,orbitant rates by few importers from China and <apanH many homes are left in star- dar-ness while Nigerians cannot relief stress at home after a hard dayFs ;ob 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

C/

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 #9basi& @//A%" &.11 C!ALLENGES OF POWER GENERATION AND NIGERIAS SOCIO6ECONOMIC DEVELOPMENT Jandalisation of P$CN e uipment and installations for re>circulation accounts for at least 1/L of blac-out e,perienced in Nigeria today" P$CN has embar-ed on a massive campaign against the activities of vandals who perpetrate this heinous acts and cash rewards to those who watch over P$CN installations to apprehend suspects for possible prosecution in the law courts" Also eight C>wheel Isuzu patrol vehicles fitted with communication e uipment has been given to the Police Anti Jandalism 8as->4orce" A cash che ue of NA"AD million was also presented to the Inspector 5eneral of Police for paying allowances and honorarium to members of the tas->force" 8he 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 bro-en>down plants to underta-e turn around maintenance& is the paramount spectre of vandalisation #8anweer& 0EEEH 'sman @//1& Kubairu& @//@%" $ardly any day& wee- or month passes without the ugly face of vandalism being visited on the nationFs already embattled electricity networ-" !edia reports on this are as frightening" 8his menace is another dilemma in the legion of problems and constraints facing the Power $olding Company of Nigeria #P$CN% vested the with mandate
C0

to generate& transmit and distribute electricity in the country" 8he wanton destruction this is infliction on the entire networ- system aside the untold drain on scarce financial resources is better imagined" It is a nightmare to say the least" +normous 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 wa-e of vandalisation of P$CN e uipment" 8he se uences 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 un uantifiable" $owever& vandalism is the product of a comple, society such as ours" 8he craze for material things and the desperate desire to get rich uicin a bid to win the material rat race push people to commit all sorts of offences including vandalisation" 7ell meaning Nigerians and the press have at various times spo-en out on this ugly phenomenon that is not only peculiar to P$CN but also to other vital public utilities" :et& it is as bad that this is evading meaningful solution" Sadly& vital components of the NationFs electricity industry continue to be vandalized and stolen by hoodlums and their faceless sponsors #7i-ipedia& @//C%" 8he 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" !ost of the items so
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carted away re uire huge but scarce foreign e,change to procure" Conse uently& the helpless electricity consumers are left to suffer prolonged period of dar-ness until the authority manages to come to the rescue at a much greater cost #N+PA *eview September& @//1:A3& $artman& 0E3D%" As an important inde, for socio>economic development and growth& electricity occupies a central place in modern societies and economies" +verything must therefore be done to ensure that the system is safeguarded against willful damage" 8he 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" 7e commend the uic- response and patriotic commitment of the president to route the vandals" 8his 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& @//1%" Nigeria certainly has a choice to deal with vandalisation and theft of e uipment since much of the nationFs growth will depend on the sustainance of the electricity industry& the bac-bone of any nationFs economy and industrial leap forward #NCP& @//1%" ?et us consider a profile of vandalisation power installation in Nigeria in recent times viz:

C1

S)77-(8 9: 79/; (,#,*; -#; 9: V-*0-<./-;.9* S/* 0 @ 1 C L9#-;.9* 9: N-;)(, 9: V-*0-<./-;.9* C9/; 9: R,=-.( V-*0-<./-;.9* I-e;a 7est>Ayede 8owers No" C@A collapsed due to @/&200&D0A"// 11/(J line Sapele>Alad;a 11/(J line Delta ) 6enin <os )6auchi 01@(J line A 2 3 5ombe ) 6auchi 01@(J line New $aven vandalisation 8owers 3A collapsed due to fire 0/&@E2&1//"// from pipeline vandalisation 8owers A3 collapsed due to fire +stimated cost from pipeline vandalisation A&///&///"// 8owers No" 011>013& 022>03/& +stimated cost 033>03E& @@0>@@A and 111>113 0C&A//&///"// vandalised 8owers C3C ) C33 were vandalized 8owers 3@ ) 3A were vandalized 0@ collapsed due +stimated cost 1&A//&///"// 3&3C0& C/1"// to +stimated cost

N-alagu 01@-J line Delta ) 6enin 8owers

vandalisation and several other A2&D00&1//"// D New $aven *iver 01@(J line E 0/ 5ombe ) :ola 01@(J line 9shogbo towers and line hardware affected !any towers were vandalized" +stimated cost 8he vandals cut and carted away A2&D00&1//"// line& hardware 8owers @C ) 1/ vanadalised with +stimated cost line& hardware cut and carted away 3&D//&///"// 8owers @D>1/ #8ower @E +stimated cost 0A&///&///"//

11/(J line collapsed and @D damaged% S9)(#,: N+PA *eview Sept" @//1"AD"

9bviously however& some of the ma;or challenges in the generation and distribution of power supply in Nigeria are enumerated as follows:

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0"

Illegal connections and overload of networ- have caused a lot of damage on supply e uipment" P$CN has put in place& field officers to investigate and to disconnect electricity supply to all illegal consumers and bring them to boo-" A massive awareness campaign is also going on to educate the populace on the ills of illegal connection"

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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 lu-ewarm attitude towards settling their electricity bills" 8o curb this& the Authority has adapted the use of prepayment meters& and the grid meeting system in some areas" Nigeria is -nown to be the largest purchaser of stand>by generators in world" 8his 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 e,pensive alternatives"

1"

*ural electrification: P$CNFs goal of electrification for all is a challenge the Authority is determined to achieve& hence the current emphasis on rural electrification" *ural electrification is aimed to the remote areas in the country"

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!ounting 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 e uipment and spare>parts& cost of overhauling outdated e uipment& rising inflation and high foreign e,change rates" 8he 5overnment has recently financed the
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rehabilitation& replacement and e,pansions of the AuthorityFs e uipment and services" A" Aging e uipment: About 01"EL of P$CNFs installed capacity are over @/ yearsH or A3"0L over 0A years or 3E"2L are over 0/ years old" 8hese are impediments to P$CN outputs" 8he 5overnment has ta-en giant steps by funding the rehabilitation and servicing of generating stations across the country" 8he recent participation of the Independent Power Producers #IPP% in the electricity industry would also boost electricity in Nigeria" 2" 7ater level: Nigeria has the hydro power generating stations in (an;i Dam& commissioned in 0E2D& <ebba built dam& the stream of (an;i and Shiroro dam was commissioned in 0ED2" 7ater level of these stations determined the e,tent of generation of electricity" 8he drought which occurred on (an;i less than 0/ years after construction which was e,pected though under probability after about A/ years has become a source of worry to the AuthorityFs inability to provide enough power through the hydro stations"

8he 4ederal 5overnment has sun- huge sums of money into the rehabilitation of the NationFs electricity plants" 9ver N02"E billion Naira has so far been provided to the Power $olding Company of Nigeria by the 9basan;o administration& aimed at ensuring an efficient and uninterrupted power supply in the country while 1// pro;ect sites have been earmar-ed for construction but for the high level of
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corruption scarce leveled against the immediate past government of chief 9basan;o and his cronies"

It is interesting to note that on the @C.@.@//0 N+PA signed a 2@ million 'S dollars rehabilitation contract with !arubeni Corporation of <apan to reactivate Delta II and III 8hermal Power Stations in 'ghelliH Delta state" 8he company would install si, new power> generating turbines to replace the e,isting obsolete ones" 8he new turbines would have a combined generating capacity of 0A/ megawatts" !erubeni is currently e,ecuting a rehabilitation wor- on generating units 2NC of +gbin thermal power station& ?agos #9;o& @//@& 9noche& @//@%"

Series of plans to deregulate the power sectorH the federal 5overnment is inviting private investors to participate in the countryFs power generation sector" +ight states in Nigeria have indicated interest to go into Independent Power Production #IPP%" 8he states include (ano& <igawa& 9sun& 6ayelsa& ?agos& *ivers& +-iti and 6auchi state #9hiorhenuam& @//@%" 8he 0st phase of ?agos state Independent Power Pro;ect being provided by 'S>based +nron Power Company was ready for commissioning by the end of <uly @//0"

+lectricity supply to the country suffered a ma;or set bac- recently as the N+PA system collapsed& throwing the nation in to dar-ness" 8his
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was caused by low 5as pressure to the +gbin power station #Kubairu& @//@%" 5as 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" 8his is a ma;or setbac- to socio>economic development in Nigeria"

8he Authority is wor-ing tirelessly to ensure that it achieves the 5overnment target of electricity for all" 8o ensure this& P$CN will need to add about 0D/D megawatts to the National 5rid" 8he additional megawatts would be made out of the e,isting eight power stations in the country"

8he Asea 6rown 6overi ?imited #A66% a foreign firm currently participating in the on>going rural electrification of the Abu;a Independent Power Pro;ect #IPP% would in;ect CA/ megawatts of electricity into the system" Some of the pro;ects the company had e,ecuted in Nigeria include the 9sogbo Ife.Illesha 01@(J transmission& @O1/.C/!JA10@.11(J Ilesha substations amongst a host of others #Sigmund& 0EE/%"

8he 4ederal 5overnment has chosen firms for the first phase of the schedule 1/ megawatts& +PP plant for Abu;a" 8he power pro;ect is being handled by Aggre-o International Power Pro;ect #AIPP% Plc and 5eometric Nigeria ?imited" 8he pro;ect is split between the two firms
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both of which are e,pected to provide 0A!7 of power each in two phases e,pected to run concurrently" 8he 4ederal 5overnment has so far provided electricity for 0DE rural areas at cost of A"2 6illion Naira since its inception in !ay 0EEE" So far& the government allocated 03"2 billion Naira to run power supply A3A of the 33C local 5overnment $ead uarters had been connected to the National 5rid #Sunday 8ribune& @//D%"

8he first phase of the ?agos State initiated Independent Power Plan #IPP% pro;ect e,pected is to generate an additional E/ megawattsH and was commissioned in <une @//0" 8he second phase which is CA/ !7 gas turbine power plant estimated to cost 21/ million 'S dollars would soon commence #Sunday 8ribune& @//D%"

In Nigeria& more and more states and organizations are embar-ing on setting up their own Independent Power Plants #IPP%& 0/ of such are currently under construction" Some of the new plants which are at various stages of development include the +nron Power Plant in +gbin ?agos& the Agip 9;i Power Pro;ectd in 'ghelli& Delta and *ivers IPP in Port $arcourt" 9thers are state sponsored IPPFs being handled by 9ndo& 6ayelsa& (ano& (wara-& A-wa>Ibom& Delta and +do state #9hiorhenuam& @//@%" P$CN is giving the IPPFs the necessary support to enable them come on stream" 8he Authority also offers necessary technical advice to speed up the ;ob and ensure its success
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so that it could stand the test of time" !ore ways of finding solution to the power generation& distribution and transmission is however still being e,plored #9;o& 0EEC%"

7ith impending conditions li-e the ever>rising consumer debts& vandalisation of P$CNFs installation& high cost of maintenance& inade uate gas supply& low water level at the hydro power stations& high cost of foreign e,change the abysmally low tariff regime& P$CN has always strived to meet its distribution and mar-eting of stable electricity to its numerous residential& commercial and industrial customers against all odds" In spite of some of its familiar operational shortcomings& P$CN has made giant strides in the production and mar-eting of electricity to the nation and beyond #9dife& 0EED%" A principal beneficiary of P$CNFs e,tended electricity program is the *epublic of Niger under an agreement with Nigerlec #Niger +lectricity Company% that countryFs electricity monopoly" Similarly& in Sep" 0EE2& an underta-ing was signed between the erstwhile National +lectric Power Authority #N+PA% and communaute +lectric ue Du 6enin #C+D%& which is responsible for production and transportation of electric energy in the *epublic of 6enin and 8ogo" 8his problem of finding solution to generate& transmit and distribute power in the country called for the reform and privatization of P$CN for an enhanced socio>economic development& growth and

sustainability in the @0st century"

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&.1& NIGERIAS POWER SECTOR REFORM 8he power sector is very capital intensive" It is obvious that 5overnment with its many responsibilities in other sectors of the economy& cannot fund its development as outlined above" 4or 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"

8he electric power policy statement of government therefore is to ensure that Nigeria has an +lectricity Supply Industry #+SI% that can meet the needs of its citizens in the @0st century" 8his in fact will re uire a fundamental reform #liberalization at all levels of the power industry% #N+PA& News& @//1%" i" 8he 4ederal 5overnment will therefore provide overall directive for the development of the electricity supply industry and enabling environment" ii" +nsure the general consistency of electric power policy with all other national policies and specifically with other aspects of the energy policy" iii" +nact promptly the necessary laws& regulations and other measures re uired to support the electricity policy"

A0

It is also e,pected that 5overnment would have an independent regulatory agencies& which will be responsible for the issuance of licenses to companies operating in the electricity supply industry"

8hen one can now say that the main aim of the reform and privatization of N+PA is to reverse the trend that has led to the present dismal state of electricity supply" 8he reform however& would among others: a% 'nbund N+PA along its functional lines into 0D competing 6usiness 'nits #6us%" b% Provide appropriate regulation to ensure industrial growth and safety in operators by the establishment of an Independent Industry *egulator #Nigeria +lectricity *egulatory Commission PN+*CQ%" c% Introduce modern technology into the Nigerian +lectricity Supply Industry #N+S%" d% e% f% Provide ade uate legislation for the operation of N+SI%" Attract foreign investment and positive re>imaging of N+SI" 7ith the e,ception of the transmission.system operations company privatize the N6's starting with distribution" g% Prepare grounds for competition by promoting efficiency and better management of N+SI" h% i% ;% *esolve massive and perennial pension funding gaps" 4oster a focused development of N+SI" 5enerate employment opportunities #N+PA News& @//1%"
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8he process of sector reform and enterprise restructuring and privatization is an intricate and delicate one that needs care in handling" 8his is a ma;or pathway forward in NigeriaFs uest for socio>economic and political development in all its ramifications"

&.13 T!E ALTERNATIVE ENERGY OPTION 9ne very important phenomena in the Nigerian power reform policies is the inade uacies and of course& the inability of government to e,ecute laudable plans that could foster overall socio>economic development and sustainability" 8his has largely informed the adoption of the nuclear energy option by the present administration of President 'mar !usa :arFAdua in recent times" 8hus the intent of government is geared towards integrated power supply targeted at producing and ac uiring more than 2///& megawatts by the year @/0/ #Sunday 8ribune& @//D%" It can be emphasized here that the National integrated Power Pro;ects #NIPP% has a benchmar- of at least generating& transmitting and distributing ade uate power supply to all noo-s and crannies of Nigeria within the shortest limit of time and at low cost" 8hus the power stations under the NIPP agenda includes Calabar #A//mw%& +gbema #1A/mw%& +yaen #A//mw%& 5barain #@A/mw%& I-ot Abasi #1//mw%& Sapele #A//mw%& 9mo-u %@@Amw% and Ibom #0D/mw% respectively #Sunday 8ribune& @//D:1%"

A1

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 conse uences of environmental as well as health hazards posed by the to,ic wastes emanating from nuclear regards leaves much to be desired"

Similarly& contending arguments by nuclear energy e,perts in favour of the former is that: 0% 8he energy produced per amount of material consumed is the highest available" @% 8he cost of nuclear energy is competitive with coal as the ma;or source of energy used in the world" 1% 8hat uranium& the source material of nuclear energy is readily available and abundant" C% 8hat plutonium& a by>product of commercial nuclear plant operation can also be used as fuel and A% 8hat the amount of waste product produced by the source of energy is the least of any ma;or energy process #N+PA News& @//A%"

7ith the benefit of hindsight& we can rightly say that government intention towards reawa-ening the ailing power sector is not a bad one" $owever& the environmental and health conse uences to humanity remains a ma;or constraints" Nigeria as a developing

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country does not possess the wherewithal for proper disposal unli-e developed nations of +urope and America& Canada& <apan etc" 8hese countries appear to have the capacity to properly manage nuclear wastes thereby safeguarding the ecosystem from undue pressure" Nigeria for e,ample uses nuclear plant in Karia& (aduna 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 #+legba& @//D%" 4rom the foregoing& the fears of the possible environmental conse uences through radioactive and ionizing radiations are virtually out of place as the Nigerian Nuclear *egulatory Authorities are combat ready to chec- the activities of operations of power stations and ma;or oil drilling and manufacturing and mining companies ali-e" &.12 T!EORETICAL 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 framewor-" 8his to a large e,tent& guides the economic fortune and direction of the state to the e,tent of which a nation becomes great or dwindles due to the personal whims of state actors involved in the formulation and implementation process" Conse uent upon this therefore& it can be said that the economies of various countries of the global system have always been influenced by the position ta-en by the states in uestion in terms of either regulation or deregulation of the economic base of
AA

the society" 8he 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 NigeriaFs privatization as it patterns power sector can best be analysed using the elite school of thought as a theoretical construct" +litism is a vague concept which has attracted a lot of concern from scholars in the social sciences in contemporary times" 8hus& while an IeliteF is a role player involved in the direction and control of a nationFs 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 e,hibited by the ruling class in their own selfish interest" +litism defines alienation& want& deprivation& poverty& disease& wanton neglect& and above all& the enhancement& ineptitude& greed& to mention but a few #Schuarz& 0ED3%" 6y e,tension& however& the elite school defines a power relations that seem to e,ist between two distinct groups in any society" 4irst is a group of selected few who consider themselves capable and therefore possess the right to supreme leadership" 8he second category are the vast ma;ority 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 nationFs resources to the detriment of the others #A-e& @//0%" +litism therefore subscribes to rule of force"
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8he elite school of thought is largely antithetical to popular views and best democratic practices" It is a ma;or setbac- on the road to peace& corporate governance& ethics& freedom& ethnic strife& electoral malpractice& macro and micro>economic failures mostly in bac-ward nation>states of Asia& Africa and ?atin America #A-e& @//0%" 8he conte,t 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" 8his phenomenon has largely been re>enacted in NigeriaFs privatization process by the erstwhile 9basan;o administration where billions of ta, payerFs money have been allegedly diverted into private poc-ets leaving the economy to suffer #'sman& @//0%" 8he prevailing conse uences of elitism finds e,pression in group interaction" 8hese groups are interested in the balancing and limiting e,cessive powers of one another in a bid to grab public office" 8hus& 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 ac uire power" !ills #0EA2%& ?asswell #0E2A% and Pareto #0EE1% wrote that the conte,t of power defines who gets what& when and how" 8his means that power is synonymous with coercion and therefore undemocratic as it is unacceptable" 8he society should therefore be built around e uity& distributive ;ustice and fairplay& transparency and accountability as cardinal ob;ectives in the overall process of
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privatization either in the power sector or otherwise" 8his will bring about the enthronement of responsiveness& responsibility& accountability and probity in the scheme of things in NigeriaFs 4ourth *epublic and beyond" !orgenthau #0E3D% wrote that the conte,t of power is synonymous with state control by a group of selected few" 8his 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" 6y this definition& power therefore becomes political" And politics clearly defines the authoritative allocation or abduction and hi;ac-ing of the resources of the people as was accentuated in NigeriaFs 4ourth *epublic #0EEE ) @//3%" In any case& political power in any nation> state has a psychological relations between those who e,ercise it and those over whom it is e,ercised" It gives the former control over certain actions of the latter through the impact which the former e,ert on the latterFs minds" 8hat impact derives from three sources: the e,pectation for benefits& the fear of disadvantages and the respect for institutions #?asswell& 0EE1%" Political powers as in the case of the Nigerian conte,t could be e,erted through unpopular orders& threat& unilateral decision ma-ing& glaring connivance with cabinet members or where this fails& unilateral removal and reshufflement of cabinet can be effected where necessary" 4rom the foregoing analysis& political power in Nigeria during the 9basan;oFs 4ourth *epublic could be distinguished viz: between power and influence& between
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power and force& between usable and unusable power and between legitimate and illegitimate power respectively" 6e that as it may& the indiscriminate use of brutal force by government acolytes and cronies was a ma;or setbac- in the process of democracy and democratization during the 9basan;o administration" Significantly& Nigerian elite should e,ercise political powers with decorum and self>control& transparency and accountability& responsiveness and ;ustice in their bid to move the nation forward" !illions of Nigerians can no longer afford the s-yroc-eting prices of -erosene or coo-ing gas anymore" Nigerians can no longer bear the pains of having to sleep in the dar- where thousands of mega>watts of power are being e,pended on neighbouring African countries of Niger& 8ogo and 6enin and other minor countries without a blin-& while industries have rapidly comatosed in an ailing economy li-e oursG 8he tendency is for the current administration to rid itself of e,cessive 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& e,ternal control and the li-e" A logical e,ecution 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 @0 st century" Any socio>political paradigm devoid of the aforementioned can only drag the Nigerian economy some twenty steps bac- into confusion&
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socio>economic stagnation& lac-& deprivation and bac-wardness" Nigeria must move forward in the spirit and e,pectations of the !illennium Development 5oals #!D5% while we loo- forward to becoming the @/th largest economy in less than a decade from here" 4or easy understanding of the conte,t of privatization policy and national development in Nigeria& it is important that we do ;ustice to certain basic concepts viz: privatization& development& underdevelopment and national development respectively"

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C!APTER T!REE 3.1 MET!ODOLOGY 8he 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 uestionnaire to a household population as the re uired target" Similarly& secondary sources of the research is utilize through the use of materials such as newspapers& magazines& ;ournals& periodicals and published wor-s by seasoned authors" 3.& T!E STUDY POPULATION 8he population of this research study is going to be put at 0// as a minimum standard of measurement" 8he target universe used in this research comprises staff of the power $olding Company of Nigeria Corporate $ead uarters in Abu;a and other subsidiary units and service centres across (effi and Abu;a respectively" 8his is however not e,haustive in the actual sense of the word" +ssentially& however& the research uses statistical analysis as ultimate basis of decision ma-ing through simple percentage error" Survey research

methodology is therefore adopted" 8he target population therefore comprises staff of P$CN corporate $ead uarters in both (effi and Abu;a& civil servants& students and the civil population"

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3.3

SAMPLING TEC!NI1UES 8he research study shall adopt the use of multiple sampling techni ues as method of data analysis" 8hus& both random& cluster and stratified sampling techni ues will be adopted" Isaac #@//D% 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" 8he choice of these sampling techni ues is particularly adopted to avoid conclusions that may turn out to be statistically ridiculous" 6asically& the intent also is to eliminate bias because of the comple, nature of the research wor-"

$owever& the study ma-es use of probability and non>probability sampling techni ues as methods of research" probability sample by definition is the one in which every member of a population has a -nown assurance or li-elihood of being included in the sample to be studied #Selltiz& 0E3C%" Non>probability sampling techni ue is the reverse of probability sampling techni ue" Probability sampling methods therefore includes #0% simple random sampling #@% stratified sampling #1% systematic sampling #C% cluster sampling" Similarly& non> probability sampling methods includes uota sampling as well as

purposive or ;udgmental sampling respectively" 7e shall e,plain the concepts in turn"

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PROBABILITY SAMPLING TEC!NI1UES 3.3.1 STRATIFIED SAMPLING 8he assumption underlying the use of stratified sampling techni ue in this study is that certain characteristics are li-ely not to be ta-en care of by the chance factor" 8he research therefore ta-es 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 ade uately represented without stratification and the possible inclusion of different strata before a reliable generalization can be made" As a ma;or advantage& however& stratified sampling has the capabilities of recognizing different groups in the study population" 3.3.& SIMPLE RANDOM SAMPLING 8he use of simple random is e ually used in this research study" Simple random sampling defines a sampling techni ue where every members of the population has e ual and independent chances of being selected in the sample to be studied #6lac- and Champion& 0E32%" 8he selection of one person or element therefore does not affect the chances of another elements being included" 8he merit of this sampling techni ue includes its wide applicabilityH its indispensable use by other probability& freedom from unwanted error and its simple nature for enhanced understanding" Its demerits

21

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 8he ob;ectives of utilizing cluster sampling techni ue 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" 8he implication of this is that members of the universe are grouped into their various geographical locations& occupational clusters and religious groups respectively" 8he merits include reduction in cost of research and reduction of e,tremely large population" 3.2 RESEARC! INSTRUMENT AND DELIMITATION 8he researcher adopted the use of research study that is delineated into sections" 8he first section #A% ta-es note of personal data of respondents including their age brac-et& se,& religious affiliations and occupation" Sections 6 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 NigeriaFs power sector" 4rom 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"

2C

3.4

MET!OD OF DATA ANALYSIS 8he research study uses both statistical and describtive dimensions to analyse data obtained from the uestionnaire" 8he statistical analysis is structured along simple percentage error to enhance understanding and simplification of the research study" 4indings of the research is also added at the end of the data analysis and presentation to enhance effectiveness in the study"

NON PROBABILITY SAMPLING TEC!NI1UES 3.6 1UOTA SAMPLING Buota 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 re uired characteristics" 8he ob;ective is to fill a uota reflecting the

population of the universe as used in the research #Champion& 0E32%" 3. PURPOSIVE OR 3UDGMENTAL SAMPLING 8his method as used in the research involves hand>pic-ing desired sample elements to ensure that such elements are included" 8his high degree of selectivity involved is meant to guarantee that all relevant strata are represented in the sample" 8he reason for this choice is informed by this study to enhance convenience& cost minimization& representativeness and time ma,imization"

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C!APTER FOUR 2.1 DATA PRESENTATION% ANALYSIS AND INTERPRETATION 8he topic under consideration is Privatization Policy and National Development in Nigeria: A case study of NigeriaFs power sector" 8he 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 uestionnaire and observation methods in order to obtain the necessary data>base for empirical analysis" Similarly& ;ournals& boo-s& periodicals and newspapers form part of secondary research and data> base in this study" 8he purpose of this chapter is to carry out empirical analysis of the responses elicited from the sampled population" $owever& out of 1A/ uestionnaire administered& only 0// was retrieved" 8he information in this chapter is therefore premised on the above percentage" 7e shall however begin our analysis with the demographic survey& structured and unstructured samples as follows: T-><, 2.1: A?, V-(.-><,/ 0A ) @A @A ) 1A C/ ) 2A T9;-< P9=)<-;.9* @/ C/ C/ 100 P,(#,*;-?, @/L C/L C/L 100@ uestionnaire

4rom the table C"0 above& the age brac-et for this demographic survey varies from 0A ) @A #representing @/L%& @A ) 1A #representing C/L%

22

and C/ ) CA #representing C/L% respectively" 8he degree of variation in age suggest that those within the ages of @A ) 1A and C/ ) 2A have the potentials of understanding the policies of participation of NigeriaFs power sector and it affects their lives even more" T-><, 2.&: S,A V-(.-><,/ !ale 4emale T9;-< P9=)<-;.9* 3/ 1/ 100 P,(#,*;-?, 3/L 1/L 100@

8he table above reveals that 3/ male respondents #3/L% and 1/ female respondents #1/L% have been reached" 8he implication of this finding shows the high level of participation and representation on policy issues on the part of male than female in Nigeria" T-><, 2.3: R,<.?.9* V-(.-><,/ Christianity Islam 9thers T9;-< P9=)<-;.9* C/ C/ @/ 100 P,(#,*;-?, C/L C/L @/L 100@

8he table shows that the various religious sects including Christianity has C/ #C/L%& Islam C/ #C/L% and others @/ #@/L%" 8he e ual percentage in Islam and Christianity on the privatization process is an indication of e ual participation and corporate governance on the policy concerns of the power sector reform in Nigeria" T-><, 2.2: O##)=-;.9* V-(.-><,/ P9=)<-;.9* P,(#,*;-?,

23

Civil servants 4armers Students 9thers T9;-<

2/ @/ 0/ 0/ 100

2/L @/L 0/L 0/L 100@

8he table above #C"C% has civil servant representation in the survey as 2/ #representing 2/L%& farmers #@/L%s& students #0/L% and others #0/L%" 8his 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 0" Are you aware of the current trend in privatization in NigeriaFs power sectorG 8able C"A V-(.-><,/ :es No Neutral T9;-< P9=)<-;.9* CA 1A @/ 100 P,(#,*;-?, CAL 1AL @/L 100@

8able C"A shows that CAL& 1AL and @/L represents respondents who are saying I:esF& INoF and INeutralF as to their awareness on the current trend of privatization of NigeriaFs power sector" 8his shows that more sensitization programme is re uired to carry the people along in the power sector reform agenda"

2D

@"

In your opinion& is there good management practices in NigeriaFs privatization programmeG 8able C"2 V-(.-><,/ :es No T9;-< P9=)<-;.9* @/ D/ 100 P,(#,*;-?, @/L D/L 100@

8he table has @/L of the population who are agreeing with the logic of good management practices in NigeriaFs privatization programme& and D/L disagreeing on the notion" 8his shows that policy ma-ers need to enhance effective policy management by ob;ective to achieve desired goals in our power sector" 1" Is the public participation in NigeriaFs privatization programmeG 8able C"3 V-(.-><,/ :es No Neutral T9;-< P9=)<-;.9* 0A D/ A 100 P,(#,*;-?, 0AL D/L AL 100@

8his analysis shows that 0AL of the population are agreed that there is public participation in NigeriaFs privatization programme while D/L disagree" AL remain neutral" 8he implication therefore to this researcher proves that public participation is negligible and does not represent ade uate and democratic outloo- in the privatization of NigeriaFs power sector"

2E

C"

7ould you say that privatization of power sector in Nigeria has a global implicationG 8able C"D V-(.-><,/ :es No Neutral T9;-< P9=)<-;.9* 3/ @/ 0/ 100 P,(#,*;-?, 3/L @/L 0/L 100@

8he figure shows that 3/L represents the population who maintain that NigeriaFs privatization process has a global implication" @L say INoF and 0/L of the population remain neutral" 8he position of the researcher therefore is that globalization is privatization and the latter is the former" 6oth practices are mere western concepts which is alien to African political economy" A" $as the efficiency of NigeriaFs power sector any lin-s with privatization and divestiture of the sectorG 8able C"E V-(.-><,/ :es No 'ndecided T9;-< P9=)<-;.9* CA AA 0/ 100 P,(#,*;-?, CAL AAL 0/L 100@

8he table #C"E% indicates that NigeriaFs power efficiency does not have a relationship with privatization and divestiture o the sector as AAL disagree& CAL agree and 0/L of the population remain neutral" +fficiency of NigeriaFs privatization policy is it concerns the power
3/

sector is a function of good political will and building a system of comprehensive accountability to control corruption pandemic in the sector" 2" 7hat is the relationship between privatization and national developmentG 8able C"0/ V-(.-><,/ Collective interest 5ood political will Control of endemic corruption Public participation T9;-< P9=)<-;.9* @/ @/ @/ C/ 100 P,(#,*;-?, @/L @/L @/L C/L 100@

8he above table shows that the relationship between privatization and national development in Nigeria can be enhanced through public participation with C/L& control of endemic corruption with @/L& good political will #@/L% and collective interest scoring @/L from the respondents" 8here is therefore the need for public participation in NigeriaFs privatization process because the public opinion to this effect is high" 3" 5ive your own views on how privatization of the power sector may not enhance efficiency of power supply" 8able C"00

30

V-(.-><,/ Nigerians are not involved Politics of elitism is a wrong step Poor value re>orientation is prevailing in the Nigerian system T9;-<

P9=)<-;.9* C/ @A 1A

P,(#,*;-?, C/L @AL 1AL

100

C/L 100@

4rom the above analysis C/L 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& @AL attribute this reason to policies of elitism and 1AL subscribes to poor value>orientation" C/L is the highest peaof pubic opinion suggesting that public participation is critical in public policy survived in Nigeria" D" 7hat are the necessary options toward solving NigeriaFs power problemsG 8able C"0@ V-(.-><,/ Adoption of independent power source 8he use of nuclear P9=)<-;.9* A/ 0/ C/ P,(#,*;-?, A/L 0/L C/L

energy 8he adoption of solar

3@

energy T9;-<

100

100@

4rom the foregoing& the necessary option for solving NigeriaFs ailing power problem includes the adoption of independent power source #A/L% the use of nuclear energy #0/L% and the ade uate use of solar energy as an addendum to the epileptic power condition in Nigeria" $owever& this study observes that independent power source is popular with A/L responses" Again& nuclear energy has virtually no popularity due largely to the hazards it could cause to the environment" E" 7ould you say that the on>going investigations on the power sector would have impact on improved performance of the sectorG 8able C"01 V-(.-><,/ +lite politics is a barrier ?ip services out>weighs policy action 8he Nigerian system is bereft with sentiments T9;-< P9=)<-;.9* A/ C/ 0/ 100 P,(#,*;-?, A/L C/L 0/L 100@

4rom above& we can say that the on>going sector probe by the present regime may not yield the desired result because of elite politics #A/L%& lip services ta-ing the place of policy actions #C/L% and the sentiment attached to the probe probably as a result of political differences"

31

0/" Assess the environmental impact of adopting nuclear energy option in Nigeria" 8able C"0C V-(.-><,/ !ay cause environmental degradation $ealth hazards Could further degenerate into ozone depletion T9;-< P9=)<-;.9* C/ C/ @/ 100 P,(#,*;-?, C/L C/L @/L 100@

8he analysis as above show that that nuclear as option for NigeriaFs power sector reform may cause environmental degradation #C/L%& health hazards and ris-s to human& a uatic and terrestrial lives #C/L% as well as enhance the depletion of ozone layers which is a ma;or factor propelling global warming across the world"

00" 7hat are your reservations for the on>going power probe by the National Assembly of Nigeria in the :arFAduaFs Administration" 8able C"0A V-(.-><,/ ?ac- of commitment manifested in window> dressing approach to issues by the powers that be 8he syndrome of god> 1/ 1/L P9=)<-;.9* C/ P,(#,*;-?, C/L

3C

fatherism

may

distort 1/ 100 1/L 100@

facts ?ac- of policy direction T9;-<

8able C"0A above shows that the on>going investigations by the National Assembly of Nigeria lac-s commitment manifested by window>dressing attitude of the Nigerian political actors #C/L& the syndrome of godfatherism #1/L% and the absolute lac- of policy direction #1/L%" All these are encumbrances on the path of NigeriaFs power reform"

0@" Suggest a lasting option for solving NigeriaFs power problems in the @0st century" 8able C"02 V-(.-><,/ Controlling endemic corruption in the P$CN 8he use of alternative power sources by all tiers of government. 0/ 100 0/L 100@ individual Sound political will T9;-< P9=)<-;.9* CA CA P,(#,*;-?, CAL CAL

4rom the table above& the study is apt in its analysis in line with devising a lasting solution to NigeriaFs ailing power sector in the @0 st

3A

century" 8hus CAL of the population are in support of controlling endemic corruption in the P$CN and enthroning a system of comprehensive accountabilityH CAL supports alternative power sources through the use of water dams and hydro>power stations& the remaining 0/L encourage the institutionalization of sound political will as a moral value system by NigeriaFs public office holders" 8hese are veritable instruments in the e uitable management of policy framewor-& not only in the power sectorH but also in all factors of our national socio>economic lives in general"

SECTION C 0" 7hat is the relationship between Privatization and National DevelopmentG O=;.9* 5ood Not 5ood Neutral T9;-< P9=)<-;.9* C/ A/ 0/ 100 P,(#,*;-?, C/L A/L 0/L 100@

8he table above shows that the relationship between Privatization and National Development is negligible as the population of A/ disagree& C/L agree and 0/L remain neutral"

@"

Do you thin- Privatization of the power sector could enhance efficiency of power supplyG O=;.9* :es P9=)<-;.9* A/ P,(#,*;-?, A/L

32

No Neutral T9;-<

1/ @/ 100

1/L @/L 100@

4rom the table above A/L of respondents agree that Privatization of NigeriaFs power sector could enhance efficiency of power supply& 1/L disagree while @/L are neutral" 1" 7ould you say on>going investigation would have impact on improved performance of the sector" O=;.9* :es No Neutral T9;-< P9=)<-;.9* 1/ 2/ 0/ 100 P,(#,*;-?, 1/L 2/L 00/L 100@

4rom the above 2/L of respondents are doubtful about the on>going power probe in NigeriaFs power sector by the present administration& 1/L agree while 0/L are neutral" C" 7hat do you thin- is the environmental impact of adopting nuclear energy as alternative energy option for NigeriaG O=;.9* 4riendly 'nfriendly Neutral T9;-< P9=)<-;.9* @/ 3/ 0/ 100 P,(#,*;-?, @/L 3/L 0/L 100@

8he percentage representation as above shows 3/L standing against the nuclear energy option for Nigeria& 0/L agrees that the option is friendly while 0/L are neutral"

33

A"

7hat do you thin- about the on>going power probe by the National AssemblyG O=;.9* 5ood Not 5ood Neutral T9;-< P9=)<-;.9* 3/ 0/ @/ 100 P,(#,*;-?, 3/L 0/L @/L 100@

4rom the table above the respondents in favour of the on>going power probe by the National Assembly are 3/L for I5oodF& 0/L for INot 5oodF and @/L for Neutral" 2.& TEST OF !YPOT!ESIS In testing hypothesis& the study adopts the use of chi>s uare #,@% 5oodness)of)fit which will be tested at "/A level of significance" 8he reason for this choice is because the data analysis is based on one variable with many attributes" 8herefore chi>s uare is represented as R@ S T #9 ) +%@ @ 7here R@ S Chi>s uare 9 S 9bserved fre uency + S +,pected fre uency

!YPOT!ESIS I In testing hypothesis I& table 0"0/ will be used as follows:

3D

$0 ) 8here is a significant relationship between privatization and national development" $/ ) 8here is no significant relationship between privatization and national development" 8he above can be calculated thus: 8o get e,pected S S S O @/ @/ @/ C/ E @A @A @A @A df S C ) 0 S 1 df S 3"D0A from chi>s uare table" 4rom the analysis& calculated R@ U table calculatedH we therefore accept $/ and re;ect $0" 8here is therefore no significant relationship between privatization and national development" !YPOT!ESIS II In testing hypothesis II& table 0"00 will be used thus: Cumulative observed Number of attributes 0// C @A OBE )A )A )A 0A "O B E$& @A @A @A @@A CalS "O B E$& E 0"/ 0"/ 0"/ E"/ T9;-< C 1&.0

3E

$0 ) 8here is a significant relationship between privatization and efficiency of power supply in Nigeria" $/ ) 8here is no significant relationship between privatization and efficiency of power supply in Nigeria" 6ut chi>s uare #R@% S + #9 ) +%@ + where R@ S Chi>s uare 9 S 9bserved fre uency + S +,pected fre uency +,pected S S S Cumulative observed Number of attributes 0// 1 11"11

4rom table 0"00& it can be calculated thus: O C/ @A 1A E 11"11 11"11 11"11 OBE 2"23 )D"11 0"23 "O B E$& CC"CD 2E"1D @"3D Cal S "O B E$& E 0"11 @"/D /"/D T9;-< C 3.25

df S 1 ) 0 S @ df S A"EE0

D/

4rom the above& calculated R@ U table calculatedH we therefore accept $/ and re;ect $0" 8here is therefore no significant relationship between privatization and efficiency of power supply in Nigeria" 2.3 DISCUSSION OF RESULTS It seems from the foregoing findings that privatization of NigeriaFs power sector may be the initiatives of the Nigerian ruling class& otherwise the elite" 8he 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 lac- of political will on the part of the ruling class #8able 0"0/%" Again& table 0"00 shows that efficiency of power supply may be a far ) cry largely because of elitist politics& lac- of participation& poor>value re> orientation and corruption respectively" 2.2 CONCLUSION/ INFERENCES It appears from the above that privatization of NigeriaFs power sector may not be an end in itself" It is probably a means to reaching a desired end" 8herefore& efficiency of power supply in Nigeria lies at the heart of good governance& efficiency& viable government policy direction& sound moral ;udgement& distributive ;ustice& e uity& transparency and accountability& commitment& public participation and the overall national interest& growth& development and sustainability in the @0st century" C!APTER FIVE SUMMARY% CONCLUSION AND RECOMMENDATIONS 4.1 SUMMARY
D0

8his research study focuses on privatization policy and national development in Nigeria with concerns on the revival of the ailing power sector of NigeriaFs economy" 8he 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" 8he research also affirms that ma;ority interest as it concerns service delivery in NigeriaFs power sector should be a core priority of government and its agencies in the distribution of wealth of nations" 8his singular act of responsibility and responsiveness on the part of government vis>V>vis the people could foster the principles of e uity& fairness& distributive ;ustice and national integration in Nigeria" 6esides& NigeriaFs socio>economic and political stability to a large e,tent is a function of the well>being of its citizens as it relates to the provision of social amenities& namely: electricity& good road networ-& communications and portable water" In the light of the aforementioned& electricity appears to be critical in a nationFs development process" 8he absence or near ) absence of power has been a ma;or set>bac- on NigeriaFs path to economic growth& development and sustainability" 8his appears to be the core value of this research study" In spite of tremendous efforts by previous administration in Nigeria #especially the Nigerian 4ourth *epublic under the 9basan;o administration% to revamp the dying power sectorH

D@

these efforts have relatively proved abortive" 8he prevailing conditions with Nigerian 0C/ million population seem to be growing worse as people endure blac->out day ) in day ) out with impunity"

Conse uent upon this& the thesis opens up discussions with introductory notes and bac-ground of the study& problem statement& research ob;ectives& methodology& scope and limitations& hypothesis and theoretical framewor- 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 techni ues& 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 @0st century" 4.& CONCLUSION 8he thrust of this thesis is to enhance the generation and distribution of power supply in the Nigerian socio>economic space" 8his is very

D1

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" 8he e,pectations 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 nationFs image as the giant of Africa not only in name but also in deeds and clear manifestation of its social responsibilities" 4.3 POLICY RECOMMENDATIONS 8he need to restructure the e,isting order in the Nigerian power sector is very critical to this research" 8he import of the thesis therefore is to proffer solutions to the increasing level of NigeriaFs incessant power failure" 8he researcher therefore proposes the following policy recommendations as a way of salvaging the ailing power sector in Nigeria as follows: 0% +nhancing ade uate privatization policy in Nigeria re uires the use of the instrument of public participation" 8his will guarantee ade uate representation and democratization of the entire process thereby giving it a human face"

DC

@%

Institutionalizing good management culture and practices in NigeriaFs privatization process" 8his will enhance conformity and sustainability of e,iting e uipment for ade uate power supply"

1%

Adopting viable economic development strategies that are consistent with African values and principles instead of importing alien cultures to Nigeria which is why ad;ustment policies do not wor- effectively"

C%

+nhancement of the principles of peer>review mechanism on the power sector through routine chec-s by officials of the Independent Corrupt Practices Commission and bring perpetrators of corruption to ;ustice"

A%

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 (ain;i and Shiroro dams"

2%

8he use of nuclear energy option as a way of generating power in Nigeria is also important" Although e,tra care should be ta-en to ensure that the environment& atmosphere& land flora and faunas as well

DA

as water ways are not damaged through harmful emission of gaseous substances and radio>active materials as well as used fuel" 3% Above all& the on>going power sector probe by the :arFAdua administration should e,ercise decorum& political will& commitment& ;ustice& e uity and transparency in the investigation process" All manner of window>dressing& solidarity& godfatherism and sentiments should be divorced from the e,ercise" 7hile at the same time& bringing respective culprits who have tampered with power funds to ;ustice& their socio>economic status in the society notwithstanding" 8he above policy guidelines if ade uately followed will no doubt restore sanity& probity and accountability in NigeriaFs bid towards becoming the @/th largest economy in the world come year @/@/"

REFERENCES/ BIBLIOGRAP!Y BOOKS A;a-aiye& D"9" #0EDC%" W+conomy ) ?ive +ffects of Privatization and *e>organizing NigeriaX Public

D2

+nterprises: Some Critical but neglected issues" Ibadan& Nigeria" A-e C" #0ED0%" A-e& C" #@//0%" Amaechi Nze-we #@//A%" Political +conomy of Africa" ?ondon& ?ongman Publishers" Democracy and Development in Africa" Ibadan: Spectrum 6oo-s ?td" No Past& No Present& No 4uture $ow Nigeria 'nderdeveloped" ?agos Peterson Pub" !ethods and Issues in Social *esearch" New :or-: <N N Sons" 7elfare Conse uences of Selling Public +nterprises Case studies from Chile& !alaysia& !e,ico and the '(" ?ondon: 9,ford 'niversity Press" +lites and Society ?ondon" *outledge" 8he Power of +lite" New :or-: Prentice $all" Politics among Nations: 8he Struggle for Power and Peace" Chicago: !c5raw> $ill" Institutions& Institutional Change and +conomic Performance& ?ondon: Cambridge Press" 7ither Structural Ad;ustment Programme in Nigeria" Ibadan& NC+!A" Privatization in Nigeria: Concepts Issues and !odalities& Simsun Adeyemo Press& ?agos& Nigeria"
D3

6lac-& <" et al #0E32%" 5alal& A" et al #0EE1%"

?asswell& $" #0EE1%" !ills& 7" #0EA2%" !orgenthau& $" #0E3D%"

North& C" et al" #0EE/%"

9badan& !" I" #0EE1%" 9dife& D"9" #0EDD%"

9ffiong& D" #0ED/%: 9gbosi& A"N" #@//0%"

Imperialism and Dependency" +nugu: 4ourth Dimension pub" Contemporary !acro +conomic Problems and Stabilization Policies Port $arcourt: Antovic Pub" Challenges of NigeriaFs +conomic *eform" Ibadan: 9lusanmi Printers" Development 5race 6oo-s" Administration" Aba:

9lashore& 9" #0EE0%" 9lewe& 6"N" #0EEA%: 9lu A" #0EDD%"

8he Structural Ad;ustment Programme and Changes in the Structure of Production in Nigeria NC+!A%" ?agos: *otimi pub" Comparative study of Political +lite" New <ersey: Prentice $all" 8he Competitive Advantage of Nations" New :or-" 4ree Pres" 8he Political +conomy of 8hird 7orld Countries" ?ondon: 9,ford 'niversity Press" $ow +urope 'nderdeveloped Africa: 6ogle 9uyerture" Ineffective Privatization of Public +nterprises" 8he Case of 6angladesh" India: Shazaar 6oo-s" Political +conomy of Ine uality" New :or-: Chess and 6a-er"

Pareto& S" #0EE1%" Poter& +" et al #0EE/%" *ogers& S" #0E2E%"

*odney& 7" #0E3@%" 8anweer A" 9ct"#0EEE%"

8odaro& et al #@//1%"

DD

Schuarz& !" #0ED3%" 7aldo& D" #0EDC%" 7i-ipedia @//C" 3OURNALS Coo- P" #@///%"

8he Structure for Power in America" New :or-: $olms N !eier" 8he Administrative State" New :or-: $olmes N !eier" 8he 4ree +ncyclopedia

8he +valuation and Performance of '( Privatization" http"iiwww"bricoun"org. governance.briefing.iss@int"htm" WPublic Policy Private Sector and Development +valuation from NigeriaX" A <ournal of $umanities& vol" 0& No" 1" Nov" W8he *oad to PrivatizationX 4inance and DevelopmentX" Jol" @D& No" 0& !arch" W8he Nigerian 6ureaucracy under the 9bsan;o AdministrationX in 5ana A"8" N 9melle :"6" #ed%& Democratic *ebirth in Nigeria 0EEE ) @//1" vol" 0" 8he Poverty of Development: Prolegomenon to a Criti ue of Development Policy in Africa: Annuals of Social Science Academy of Nigeria @//@.@//1" <ournal of +conomic !anagement" Jol" No" 0 #Ibadan%" WNew Strategies for the 4uture 5rowth of the Nigerian +conomyX& Nigerian <ournal of Policy and Strategy"

+-po& A"$" #0EE3%"

<ones& !" #0EE0%" 9basi& I"N" #@//A%"

9hiorhiemam& <"4"+" #@//@%"

9;o& !"9" et al& #0EEC%" 9-igbo& P"N"+" #0EE2%"

DE

9labide& !"D" #@//@%"

6enefit Analysis Approach to Jaluation and Pricing of Privatization Decisions: A Proposal for Nigeria& Africa +conomic Analysis" Privatization in Nigeria Critical Issues of Concerns to Civil Society& Social +conomics Initiative #S+*I%& ?agos" Public +nterprises *e>organization in IndiaH 8he content process and the Internal ?abour !ar-ets in India" C9D+S*IA 6ureau of Public +nterprises: Seminar Proceedings of Nigerians in Diaspora 9rganization Inc" #NID9% Professional Convention& ?a5uardia& New :or-& April @3& @//@" Nuclear +nergy in an option for Power 5eneration and +conomic Development" 8he 5uardian& 7ednesday 0C& <une"

9tive& I" #@//1%"

8he Presidency @//@"

SEMINAR PAPERS +legba& S"6" #@//D%"

+l>*ufai& N"A" April #@//@%" 8he Nigerian Privatization Programme ) 8he <ourney so 4ar" A paper presented at 8ranscorp $otel& Abu;a& !ay +run-e& C"+" #@//3%" Privatization Policy in the Power Sector: A 5erman +,perience& being a Paper presented at Public Policy Analysis Seminar NS'(& @//3& !ay #'npublished%" Democracy and 5ood 5overnance in Nigeria" A Case study 9basan;oFs 4ourth *epublic& being a pro;ect wor- submitted to the Department of Political Science& Nasarawa State 'niversity& (effi" #'npublished%"
E/

+run-e& C"+" #@//A%"

!a;one& 5" #@//1%"

Deregulation& ?iberalization and *egulatory *eforms in +uropean 'nion" !e,ico: A Seminar Paper presented at the Ath 5lobal 4orum on *einventing 5overnment& Panel on Deregulated 5overnment& !e,ico 1 ) 3"

Pan African Summit& Nov" @///" Seers& D" #0E2E%" W8he meaning of DevelopmentX Paper presented at the +leventh 7orld Conference of Society for International Development" New>Delhi" Developing W4ree !ar-et +conomics in Africa" 'niversity of Cretel& *ythmnoz& 5reece #'npublished%" Privatization in the +ducation Sector: 8he 6ritish +,perience& being a Seminar Paper presented at NS'(& <une #'npublished%"

Stambuli& P"(" #@//1%"

7ogu& C" #@//3%"

NEWSPAPERS Daily 8rust: WN@0 6illion 5host Contracts 4ound in P$CNX @//D& !arch 01" vol" D& No" 2C" ?eadership: WNew 4acts ?in-s 9b;& 5bengaX" @//D& April I& No" 212" N+PA *eview Dec" 0EEE" 'nderstanding N+PA" 8he New Shape of N+PA and the @//@ Pro;ect Plan"

N+PA *eview 9ct ) Dec #@//@%"

N+PA N+7S Aug" N Sept" #@//1%" 4ederal 5overnment *aises hope New Power Station" N+PA 8ransformation Newsletter" 8ransforming N+PA for 4uture" vol"////@& #@//1%"
E0

the

N+PA 8ransformation Newsletter" 8ransforming N+PA for 4uture vol" ///1& #@//1%" N+PA N+7S <uly& #@//1%"

the

Army Assures N+PA over +lectricity bills" Protection of 4acilities" 'nbundling 5uarantees 4inancial and Administrative Autonomy"

N+PA N+7S <an ) 4eb" #@//C%"

Nze-we& A" #0EE1%" Sunday 8ribune& #@//D%"

Can Nigeria Survive" <os 8ran>African ?in-s"

8he 5uardian: WM2"@2 paid to un-nown forms for Power Pro;ectsX @//D: !arh 0D" 8his Day: Power Probe: $ouse !ay 9rder 9-on;o IwealaFs ArrestX @//D: !arch 0C" vol" 01 No" C30/" 8he 5uardian: W+4CC 6egins Probe of 9basan;o& othersX @//D& !arch @3" vol @A& No" 0/ 2D1" 8he News: W$ow 9b; *uined Power SectorX& @//D& !arch 10" 8he News: Probe of 9b;Fs 5overnment 6eings: Privatization Deals& Power N 9il Sector under ScrutinyX" @//D& !arch @C" vol" 1/& No" 00" 'sman& S" #@//1%" Privatization: progress Prospects in the Post +,press"

DOCUMENTS National Council of Privatization @//0" +lectric Power Sector 6ill

E@

National Council of Privatization @//0" +lectric Power Sector 6ill National Council of Privatization @//0" National +lectric Power Policy National Council of Privatization" National @//@" 8elecommunication" National Council of Privatization" Privatization Share @//1 Purchase ?oan Scheme #PSP?S% Information $andboo-s National Council of Privatization" Privatization !onitor #<an ) !arch @//0% 6P+ *e>Assure 7or-ers" National Council of Privatization" Privatization $andboo- #!ay& @///% Imperative of Privatization" National Council of Privatization #@///%" 6ureau of Public +nterprises W4ourth Pan>African Privatization Summit held International Conference Centre Abu;a& 0E>@@ November& @/// #8he 4ull Proceedings" National +lectric Power Policy 9ct @//0" +lectric Power Sector *eform Implementation Committee" National +lectric Power Authority Annual *eport and Accounts #@//@% *eport"

INTERNET Coo-& P" #@///%"

8he +valuation and Performance of '( Privatization" http"iiwww"bricoun"org. governance.briefing.iss@int"htm" Privatization in Nigeria: 8he efficiency and 4iscal Argument !aiwadaYhotmail" Cm"
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4aculty of Social Sciences Department of Political Science Nasarawa State 'niversity& (effi 1),/;.9**-.(, Dear *espondents& I am a student of the above institution undergoing a research on Privatization Policy and National Development in Nigeria: A case
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study of NigeriaFs Power Sector" 8his uestionnaire is intended to see- your views on this topic for the purpose of research studies" I therefore solicit our cooperation as you respond to the uestions I shall administer to you" :our responses will be treated with the utmost confidentiality it re uires" 8han- you" :ours Sincerely& C-*.#, E. E()*+,. SECTION A C/ ) 22

0" @" 1" C"

Age: 0A ) @A Se,: !ale

@A>1A

4emale Islam 9thers Students others

*eligion: Christianity 9ccupation: Civil servants

4armers

0"

SECTION B Are you aware of the current trend of privatization in NigeriaFs power sectorG :es No Neutral In your own opinion& is there good management practices in NigeriaFs privatization programmeG :es No Is there public participation in NigeriaFs privatization programmeG :es No Neutral 7ould you say that privatization of power sector in Nigeria has a global implicationG :es No Neutral $as the efficiency of NigeriaFs power sector any lin-s with privatization and divestiture of the sectorG

@"

1" C"

A"

EA

:es

No

'ndecided

SECTION C 0" 7hat is the relationship between privatization and national developmentG #a% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> #b% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> #c% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> @" Do you thin- Privatization of the power sector could enhance efficiency of power supplyG :es No Neutral

#a% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> #b% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> #c% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 1" 7hat are the necessary options to solving NigeriaFs power problemsG

#a% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> #b% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> #c% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> C" 7ould you say that the on>going investigation on the power sector would have any impact on improved performance of the sectorG Comment" :es No Neutral

#a% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> #b% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> #c% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

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A"

7hat do you thin- is the environmental impact of adopting Nuclear energy as an alternative option for Nigeria" #a% 4riendly #b% 'nfriendly #c% Neutral

#a% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> #b% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> #c% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 2" 7hat do you thin- about the on>going power Probe by the National AssemblyG #a% 5ood #b% Not 5ood #c% Neutral

#a% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> #b% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> #c% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 3" Suggest a lasting option for solving NigeriaFs power problems in the @0st century" >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

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