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'.
i
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 reuirements for the award of !"Sc #$ons% Degree in Public
Policy Analysis& of the Nasarawa State 'niversity& (effi"
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Chairman& Supervisory Committee Date
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*esearch Supervisor Date
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$ead& Political Science Dept" Date
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ii
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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E()*+, C-*.#, E/.0,*, Date
iii
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"
iv
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
v
8itle Page>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> i
Certification>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> ii
Declaration>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> iii
Dedication>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> iv
Ac-nowledgement>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> v
8able of Contents>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> vii
?ist of Acronyms >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> viii
Abstract>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> i,
C!APTER ONE: INTRODUCTION
0"0 Introduction. 6ac-ground to the study>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 0
0"@ Statement of the Problem>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> A
0"1 *esearch Buestions>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 2
0"C *esearch 9b;ectives>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 3
0"A *esearch !ethodology>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 3
0"2 Scope and ?imitations>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> D
0"3 *esearch $ypothesis>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> E
C!APTER TWO: LITERATURE REVIEW AND T!EORETICAL
FRAMEWORK
@"0 Privatization >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 0/
@"@ 8he Concept of Development>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 00
@"1 Privatization and Commercialization in Nigeria>>>>>>>>>>>>>>>>>>>>>>>>> 0A
@"C Privatization& ?iberalization and National Development>>>>>>>>>>>>>>> 03
@"A 8he Concept of 'nderdevelopment>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> @0
@"2 8he Concept of +conomic 5rowth>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> @1
@"3 Privatization and ?iberalization in 5lobal Perspective>>>>>>>>>>>>>>>>>> @C
@"D Privatization of +nterprises in Nigeria >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> @D
@"E Accountability in the Power Sector and Nigeria National
Development>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 1/
@"0/ Privatization of P$CN and National Development in Nigeria>>>>>>>>>> 12
vi
@"00 Challenges of Power 5eneration and NigeriaFs Socio>+conomic
Development>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> C0
@"0@ NigeriaFs Power Sector *eform >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> A0
@"01 8he Alternative +nergy 9ption>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> A1
@"0C 8heoretical 4ramewor->>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> AA
C!APTER T!REE
1"0 *esearch !ethodology>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 20
1"@ 8he Study Population>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 20
1"1 Sampling 8echniues>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 2@
1"1"0 Stratified Sampling>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 21
1"1"@ Simple *andom Sampling>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 21
1"1"1 Cluster Sampling>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 2C
1"C *esearch Instrument and Delimitation>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 2C
1"A !ethod of Data Analysis>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 2A
1"2 Buota Sampling>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 2A
1"3 Purposive or <udgemental Sampling>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 2A
C!APTER FOUR
C"0 Data Presentation& Analysis and Interpretation>>>>>>>>>>>>>>>>>>>>>>>>>>> 22
C"@ 8esting of $ypothesis>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 3E
C"1 Discussion of *esults>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> D@
C"C Conclusion.Inferences>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> D@
C!APTER FIVE
A"0 Summary >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> D1
A"@ Conclusions>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> DA
A"1 Policy *ecommendations>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> DA
*eferences.6ibliography>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> DD
LIST OF ACRONYMS
vii
P$CN: Power $olding Company of Nigeria
P7D: Public 7or- Department
N+SC9: Nigerian +lectricity Supply Company
+CN: +lectricity Corporation of Nigeria
NDA: Niger Dams Authority
N+PA: National +lectric Power Authority
I!4: International !onetary 4und
76: 7orld 6an-
SAP: Structural Ad;ustment Programme
N++DS: National +conomic +mpowerment and Development Strategy
5NP: 5ross National Product
!D5: !illennium Development 5oals
ICPC: Independent Corrupt Practices Commission
+4CC: +conomic and 4inancial Crimes Commission
A*: Aso *oc-
ND: National Development
NIPP: National Integrated Power Pro;ect
NDP$C: Niger>Delta Power $olding Company
AI8: Africa Independent 8elevision
NASS: National Assembly"
ABSTRACT
viii
Nigerias public policy thrusts over the years towards the socio-
economic and political growth, development and sustainability of the
system is largely bereft with abject lack of direction and vision.
Hence, this research attempts a plethora of Privatiation and
National !evelopment vis-"-vis Nigerias power sector reform. #he
thesis argues that social responsibility is an integral aspect of good
governance and must be so guided with caution in the management of
the affairs of Nigerias public space in relations to the welfare of the
people at large. #he submission of this research is that the present
administrations bid to restructure the power sector does not seem to
have the re$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" Conseuent upon the foregoing& there seem
to be no closer remedy geared towards revamping the Nigerian
cheuered 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
0
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 euity& fairness& national integration& peace
and tranuility& 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 @0
st
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"
1
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& ineuality& 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
conseuences& to mention but a few" 8he fundamental uestions to as-
for 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"
2
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
3
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>suare& 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"
D
6y e,tension& however& the limitations and constraints of this study
encountered are enormous" 9f utmost importance is the time factor&
finance& inadeuacy 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"
E
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 eual 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, moderniation theory posits
an original state of backwardness or underdevelopment
characteried 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 industrialied 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 reuired 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
euity 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"
01
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&
euality 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 ineuality and
eradication of e,treme poverty"
Conversely& *odney #0E3@% sees development from the point of view
of the individual in terms of s-ill acuisition 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 uneual 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 conseuences of
numerous austerity measures adopted in undeveloped world including
the emerging trends of privatization policies& #9ffiiong& @//1%"
&.3 PRIVATIZATION AND COMMERCIALIZATION IN
NIGERIA
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 adeuately in most industrial ventures" 8hese inadeuacies 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 privatization as the former
03
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"
Conseuently& 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 euality&
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 euate 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
@/
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 appears to
@0
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 ineuality 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 adeuate 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%" Conseuently& 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"
@1
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 euate 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
@C
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 out
@A
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 eually 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 eually
@2
;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&
@D
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 privatiing 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
@E
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 acuire 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 reuires
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
eually 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
1C
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>
1A
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 ;basanjo 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$uipment of =+.-, billion0 to
1E
contractors, work has not commenced on most of
the project sites. >ontractors and supposed
supervisors of different projects openly
contradicted each other on the e8istence of certain
projects, the contract sum and the e8tent of work
*+,,/.5:0.
8he episode as captured above is in e,haustive in the e,planation of
the level of bac-wardness& underdevelopment& misery& poverty and
degradation in which the entire Nigerian state has been plunged into"
8here is no gain saying that these ugly practices has the potential of
disrupting the plans& policy targets& aspirations& contents and flavour
of NigerianFs dreams towards a highly industrialized political entity"
8here is no doubt that in the midst of epileptic power supply" !a;or
infant industries will suffer& hospitals will close down and the
euipment -ept fallow for lac- of power supplyH Nigerian youths will
further romans with crime and social vices for lac- of employment
opportunity where there no companies to absurb the wor- forceH high
level of e,ploitation will reign supreme as imported mini power
generators are sold at e,orbitant rates by few importers from China
and <apanH many homes are left in star- dar-ness while Nigerians
cannot relief stress at home after a hard dayFs ;ob in the office" All
these are parallel and does not tally with national development&
growth and sustainability" National development must not be tailored
to few rich individuals" National development must be a holistic and
universes concept capable of steering the collective interests of the
C/
people without which it is impossible to want to present the on>going
affairs of the Nigerian state as democratic in line with group
aspirations #9basi& @//A%"
&.11 C!ALLENGES OF POWER GENERATION AND NIGERIAS
SOCIO6ECONOMIC DEVELOPMENT
Jandalisation of P$CN euipment 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 euipment has been given to the
Police Anti Jandalism 8as->4orce" A cash cheue 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 euipment"
8he seuences 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
unuantifiable"
$owever& vandalism is the product of a comple, society such as ours"
8he craze for material things and the desperate desire to get rich uic-
in a bid to win the material rat race push people to commit all sorts of
offences including vandalisation" 7ell meaning Nigerians and the
press have at various times spo-en out on this ugly phenomenon that
is not only peculiar to P$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
C@
carted away reuire huge but scarce foreign e,change to procure"
Conseuently& 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
euipment 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/* L9#-;.9* 9:
V-*0-<./-;.9*
N-;)(, 9: V-*0-<./-;.9* C9/; 9: R,=-.(
0 I-e;a 7est>Ayede
11/(J line
8owers No" C@A collapsed due to
vandalisation
@/&200&D0A"//
@ Sapele>Alad;a
11/(J line
8owers 3A collapsed due to fire
from pipeline vandalisation
0/&@E2&1//"//
1 Delta ) 6enin 8owers A3 collapsed due to fire
from pipeline vandalisation
+stimated cost
A&///&///"//
C <os )6auchi
01@(J line
8owers No" 011>013& 022>03/&
033>03E& @@0>@@A and 111>113
vandalised
+stimated cost
0C&A//&///"//
A 5ombe ) 6auchi
01@(J line
8owers C3C ) C33 were vandalized +stimated cost
1&A//&///"//
2 New $aven
N-alagu 01@-J line
8owers 3@ ) 3A were vandalized 3&3C0& C/1"//
3 Delta ) 6enin 8owers 0@ collapsed due to
vandalisation and several other
towers and line hardware affected
+stimated cost
A2&D00&1//"//
D New $aven *iver
01@(J line
!any towers were vandalized"
8he vandals cut and carted away
line& hardware
+stimated cost
A2&D00&1//"//
E 5ombe ) :ola
01@(J line
8owers @C ) 1/ vanadalised with
line& hardware cut and carted away
+stimated cost
3&D//&///"//
0/ 9shogbo
11/(J line
8owers @D>1/ #8ower @E collapsed
and @D damaged%
+stimated cost
0A&///&///"//
S9)(#,: N+PA *eview Sept" @//1"AD"
9bviously however& some of the ma;or challenges in the generation
and distribution of power supply in Nigeria are enumerated as
follows:
CC
0" Illegal connections and overload of networ- have caused a lot of
damage on supply euipment" P$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"
@" 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$CNFs goal of electrification for all is a
challenge the Authority is determined to achieve& hence the current
emphasis on rural electrification" *ural electrification is aimed to the
remote areas in the country"
C" !ounting operational cost of production and distributing electricity
has its own way& weighed down the operation of the Authority" Cost
referred to here includes: cost of imported euipment and spare>parts&
cost of overhauling outdated euipment& rising inflation and high
foreign e,change rates" 8he 5overnment has recently financed the
CA
rehabilitation& replacement and e,pansions of the AuthorityFs
euipment and services"
A" Aging euipment: About 01"EL of P$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 $olding Company of
Nigeria by the 9basan;o administration& aimed at ensuring an efficient
and uninterrupted power supply in the country while 1// pro;ect sites
have been earmar-ed for construction but for the high level of
C2
corruption scarce leveled against the immediate past government of
chief 9basan;o and his cronies"
It is interesting to note that on the @C.@.@//0 N+PA signed a 2@
million 'S dollars rehabilitation contract with !arubeni Corporation
of <apan to reactivate Delta II and III 8hermal Power Stations in
'ghelliH Delta state" 8he company would install si, new power>
generating turbines to replace the e,isting obsolete ones" 8he new
turbines would have a combined generating capacity of 0A/
megawatts" !erubeni is currently e,ecuting a rehabilitation wor- on
generating units 2NC of +gbin thermal power station& ?agos #9;o&
@//@& 9noche& @//@%"
Series of plans to deregulate the power sectorH the federal 5overnment
is inviting private investors to participate in the countryFs power
generation sector" +ight states in Nigeria have indicated interest to go
into Independent Power Production #IPP%" 8he states include (ano&
<igawa& 9sun& 6ayelsa& ?agos& *ivers& +-iti and 6auchi state
#9hiorhenuam& @//@%" 8he 0
st
phase of ?agos state Independent Power
Pro;ect being provided by 'S>based +nron Power Company was
ready for commissioning by the end of <uly @//0"
+lectricity supply to the country suffered a ma;or set bac- recently as
the N+PA system collapsed& throwing the nation in to dar-ness" 8his
C3
was caused by low 5as pressure to the +gbin power station #Kubairu&
@//@%" 5as supply to the power station was cut>off when the bye>pass
valve of the gas pipeline failed to open up& thus leading to a cascading
effect on the system& shutting down all the power generation" 8his is a
ma;or setbac- to socio>economic development in Nigeria"
8he Authority is wor-ing tirelessly to ensure that it achieves the
5overnment target of electricity for all" 8o ensure this& P$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
CD
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
$eaduarters 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 so that it
CE
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$CNFs installation& high cost of maintenance&
inadeuate gas supply& low water level at the hydro power stations&
high cost of foreign e,change the abysmally low tariff regime& P$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
+lectricue 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 @0
st
century"
A/
&.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 @0
st
century" 8his in fact will
reuire 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
reuired 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% Provide adeuate legislation for the operation of N+SI%"
e% Attract foreign investment and positive re>imaging of N+SI"
f% 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% *esolve massive and perennial pension funding gaps"
i% 4oster a focused development of N+SI"
;% 5enerate employment opportunities #N+PA News& @//1%"
A@
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 inadeuacies 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 acuiring 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 adeuate 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 conseuences 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 conseuences to
humanity remains a ma;or constraints" Nigeria as a developing
AC
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 conseuences 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" Conseuent 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"
A2
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 conseuences 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 acuire 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
euity& distributive ;ustice and fairplay& transparency and
accountability as cardinal ob;ectives in the overall process of
A3
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
AD
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&
AE
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"
2/
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 reuired 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 $eaduarters in Abu;a and other subsidiary units and
service centres across (effi and Abu;a respectively" 8his is however
not e,haustive in the actual sense of the word" +ssentially& however&
the research uses statistical analysis as ultimate basis of decision
ma-ing through simple percentage error" Survey research
methodology is therefore adopted" 8he target population therefore
comprises staff of P$CN corporate $eaduarters in both (effi and
Abu;a& civil servants& students and the civil population"
20
3.3 SAMPLING TEC!NI1UES
8he research study shall adopt the use of multiple sampling
techniues as method of data analysis" 8hus& both random& cluster and
stratified sampling techniues 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 techniues 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 techniues 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 techniue is the
reverse of probability sampling techniue" 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"
2@
PROBABILITY SAMPLING TEC!NI1UES
3.3.1 STRATIFIED SAMPLING
8he assumption underlying the use of stratified sampling techniue 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
adeuately 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 eually used in this research study"
Simple random sampling defines a sampling techniue where every
members of the population has eual 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 techniue 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 techniue 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 reuired
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"
2A
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 uestionnaire
samples as follows:
T-><, 2.1: A?,
V-(.-><,/ P9=)<-;.9* P,(#,*;-?,
0A ) @A @/ @/L
@A ) 1A C/ C/L
C/ ) 2A C/ C/L
T9;-< 100 100@
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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
!ale 3/ 3/L
4emale 1/ 1/L
T9;-< 100 100@
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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
Christianity C/ C/L
Islam C/ C/L
9thers @/ @/L
T9;-< 100 100@
8he table shows that the various religious sects including Christianity
has C/ #C/L%& Islam C/ #C/L% and others @/ #@/L%" 8he eual
percentage in Islam and Christianity on the privatization process is an
indication of eual 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 2/ 2/L
4armers @/ @/L
Students 0/ 0/L
9thers 0/ 0/L
T9;-< 100 100@
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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
:es CA CAL
No 1A 1AL
Neutral @/ @/L
T9;-< 100 100@
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 reuired 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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
:es @/ @/L
No D/ D/L
T9;-< 100 100@
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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
:es 0A 0AL
No D/ D/L
Neutral A AL
T9;-< 100 100@
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 adeuate 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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
:es 3/ 3/L
No @/ @/L
Neutral 0/ 0/L
T9;-< 100 100@
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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
:es CA CAL
No AA AAL
'ndecided 0/ 0/L
T9;-< 100 100@
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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
Collective interest @/ @/L
5ood political will @/ @/L
Control of endemic
corruption
@/ @/L
Public participation C/ C/L
T9;-< 100 100@
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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
Nigerians are not
involved
C/ C/L
Politics of elitism is a
wrong step
@A @AL
Poor value re>orientation
is prevailing in the
Nigerian system
1A 1AL
C/L
T9;-< 100 100@
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 pea-
of 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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
Adoption of independent
power source
A/ A/L
8he use of nuclear
energy
0/ 0/L
8he adoption of solar C/ C/L
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 adeuate 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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
+lite politics is a barrier A/ A/L
?ip services out>weighs
policy action
C/ C/L
8he Nigerian system is
bereft with sentiments
0/ 0/L
T9;-< 100 100@
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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
!ay cause environmental
degradation
C/ C/L
$ealth hazards C/ C/L
Could further degenerate
into ozone depletion
@/ @/L
T9;-< 100 100@
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& auatic 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-(.-><,/ P9=)<-;.9* P,(#,*;-?,
?ac- of commitment
manifested in window>
dressing approach to
issues by the powers that
be
C/ C/L
8he syndrome of god> 1/ 1/L
3C
fatherism may distort
facts
?ac- of policy direction 1/ 1/L
T9;-< 100 100@
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
@0
st
century"
8able C"02
V-(.-><,/ P9=)<-;.9* P,(#,*;-?,
Controlling endemic
corruption in the P$CN
CA CAL
8he use of alternative
power sources by all
tiers of government.
individual
CA CAL
Sound political will 0/ 0/L
T9;-< 100 100@
4rom the table above& the study is apt in its analysis in line with
devising a lasting solution to NigeriaFs ailing power sector in the @0
st
3A
century" 8hus CAL of the population are in support of controlling
endemic corruption in the P$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 euitable 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* P9=)<-;.9* P,(#,*;-?,
5ood C/ C/L
Not 5ood A/ A/L
Neutral 0/ 0/L
T9;-< 100 100@
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* P9=)<-;.9* P,(#,*;-?,
:es A/ A/L
32
No 1/ 1/L
Neutral @/ @/L
T9;-< 100 100@
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* P9=)<-;.9* P,(#,*;-?,
:es 1/ 1/L
No 2/ 2/L
Neutral 0/ 00/L
T9;-< 100 100@
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* P9=)<-;.9* P,(#,*;-?,
4riendly @/ @/L
'nfriendly 3/ 3/L
Neutral 0/ 0/L
T9;-< 100 100@
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* P9=)<-;.9* P,(#,*;-?,
5ood 3/ 3/L
Not 5ood 0/ 0/L
Neutral @/ @/L
T9;-< 100 100@
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>suare #,
@
%
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>suare is represented as
R
@
S T #9 ) +%
@
@
7here R
@
S Chi>suare
9 S 9bserved freuency
+ S +,pected freuency
!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 Cumulative observed
Number of attributes
S 0//
C
S @A
O E O B E "O B E$
&
"O B E$
&
E
@/ @A )A @A 0"/
@/ @A )A @A 0"/
@/ @A )A @A 0"/
C/ @A 0A @@A E"/
CalS T9;-< C 1&.0
df S C ) 0
S 1
df S 3"D0A from chi>suare 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:
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>suare #R
@
% S + #9 ) +%
@
+
where R
@
S Chi>suare
9 S 9bserved freuency
+ S +,pected freuency
+,pected S Cumulative observed
Number of attributes
S 0//
1
S 11"11
4rom table 0"00& it can be calculated thus:
O E O B E "O B E$
&
"O B E$
&
E
C/ 11"11 2"23 CC"CD 0"11
@A 11"11 )D"11 2E"1D @"/D
1A 11"11 0"23 @"3D /"/D
Cal S 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& euity&
transparency and accountability& commitment& public participation and
the overall national interest& growth& development and sustainability in
the @0
st
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 euity& 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"
Conseuent 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 techniues&
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 @0
st
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 adeuate privatization policy in Nigeria reuires the use of
the instrument of public participation" 8his will guarantee adeuate
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 euipment for adeuate 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& euity 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 adeuately followed will no doubt
restore sanity& probity and accountability in NigeriaFs bid towards
becoming the @/
th
largest economy in the world come year @/@/"
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9basi& I"N" #@//A%" W8he Nigerian 6ureaucracy under the
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+run-e& C"+" #@//3%" Privatization Policy in the Power Sector:
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presented at the +leventh 7orld
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Africa" 'niversity of Cretel& *ythmnoz&
5reece #'npublished%"
7ogu& C" #@//3%" Privatization in the +ducation Sector:
8he 6ritish +,perience& being a Seminar
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#'npublished%"
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"
N+PA *eview 9ct ) Dec #@//@%" 8he New Shape of N+PA and the
@//@ Pro;ect Plan"
N+PA N+7S Aug" N Sept" #@//1%" 4ederal 5overnment *aises hope
New Power Station"
N+PA 8ransformation Newsletter" 8ransforming N+PA for the
4uture" vol"////@& #@//1%"
E0
N+PA 8ransformation Newsletter" 8ransforming N+PA for the
4uture vol" ///1& #@//1%"
N+PA N+7S <uly& #@//1%" Army Assures N+PA over
+lectricity bills" Protection of
4acilities"

N+PA N+7S <an ) 4eb" #@//C%" 'nbundling 5uarantees 4inancial
and Administrative Autonomy"
Nze-we& A" #0EE1%" Can Nigeria Survive" <os 8ran>African
?in-s"
Sunday 8ribune& #@//D%"
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"
Kubairu& !" #@//@%" Privatization in Nigeria: 8he efficiency
and 4iscal Argument !aiwadaYhotmail"
Cm"
E1
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
EC
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 reuires" 8han- you"
:ours Sincerely&
C-*.#, E. E()*+,.
SECTION A
0" Age: 0A ) @A @A>1A C/ ) 22
@" Se,: !ale 4emale
1" *eligion: Christianity Islam 9thers
C" 9ccupation: Civil servants 4armers Students others
SECTION B
0" 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
1" Is there public participation in NigeriaFs privatization programmeG
:es No Neutral
C" 7ould you say that privatization of power sector in Nigeria has a
global implicationG
:es No Neutral
A" $as the efficiency of NigeriaFs power sector any lin-s with
privatization and divestiture of the sectorG
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% >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
E2
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
@0
st
century"
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
E3