Tuesday, January 12, 2010

Failed 6000 MW Target

Nigerians who looked forward to seeing the President Umaru Yar'Adua government raise power generation to 6000 mega watts (MW) by December 31, 2009 as promised must be disappointed. The promise has clearly failed, as according to the minister of power, Mr. Lanre Babalola only 3,500mw was realized.


There is, however, no need to feel disappointed because it now seems in the character of this government not to keep any promise.


For example, the earlier promise of declaring a state of emergency in the power sector was not kept. The same government has not been able to fix the refineries as promised, a development that has led to the excruciating pains Nigerians have been going through to obtain petroleum products especially in the last three months.


Having failed to declare a state of emergency in the power sector, President Yar'Adua promised that his government would raise power generation to 6000mw by December 31, 2009. The promise included developing the capacity of Power Holding Company of Nigeria (PHCN) to evacuate and distribute same to the consumers.


To match words with action, the government followed its promise by releasing a princely $1.6 billion to International Oil Companies (IOCs) to ensure that they provided the needed gas delivery infrastructure to enable the power stations to stream their plants. Some other funds were also released to the Nigeria Integrated Power Projects (NIPPs) and the PHCN to ensure that they fulfilled contractual obligations regarding delivery, transmission and distribution facilities and accessories.


The 6000mw generation target was actually a short-term policy measure to quickly bailout the country from years of lingering darkness. The medium-term is to generate 10, 000 mw by the end of 2010 and to steadily increase the pool by a sustainable percentage each year, thereafter.


This was in line with the recommendations of Alhaji Lukman Rilwan, petroleum minister, who as Presidential Adviser on Energy, had headed a committee which submitted the blueprint on how to address the country's energy crises.


Unfortunately, 2009 has ended with the country not being capable of generating the targeted 6000mw. Only 3,500mw of power was attained with the PHCN being able to only evacuate and distribute less than that amount due to inadequate infrastructure.


The implications of this failure, apart from the dent it has given to the image of this administration as one not given to keeping faith with its citizenry, are grave. No doubt, the development poses serious danger to the economy as more businesses would have to collapse or shut down with loss of jobs, high cost of production, rising inflation and growing mass poverty.


The picture of a Nigeria without adequate and sustainable power supply does not augur well for a country which wishes to join the league of 20 leading world economies by 2020. Moreso, for an economy which is in pursuit of the attainment of the Millennium Development Goals (MDGs) by 2015.


Yet, we do not believe that the provision of stable power supply, taken for granted in other climes, cannot be achieved here in Nigeria. We, therefore, insist that the government should go ahead and deliver the 6000mw target, before the end of the first quarter of this year and deliver the 10, 000mw by the end of the year as earlier proposed.


We insist on these demands based on the fact that the foundations for their attainment have been laid. Besides, much money has been committed to the sector in recent years. Apart from the several billions of dollars currently being sunk into the sector by the Yar'Adua government, its predecessor, Chief Olusegun Obasanjo's regime also devoted over $12 billion to the same sector.


The Federal Government should, additionally, investigate the cause of its inability to deliver on promise. This is imperative given that the militancy in the Niger Delta, which had earlier been cited by the IOCs for their inability to ensure steady gas supply has been curtailed, thereby making it possible for them to operate. It is not impossible that some saboteurs are behind the failure, so that the merchants of generators, fuel and allied products can continue to thrive at the expense of Nigerians. This must be checked and those responsible punished.


Daily Champion


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Monday, January 11, 2010

Poverty rate drops in Nigeria

The man saddled with the responsibility of fighting poverty in Nigeria has told Daily Trust that poverty rate has dropped and that Nigerians are better off. Senior Special Adviser to the President and Coordinator of the National Poverty Eradication Programme Dr. Magnus Kpakol also said the illness of President Umaru Musa Yar'adua does not affect his performance.


He also disagreed that constant power outage and low performance of the economy generally have affected his war against poverty. He said the 6.90 per cent growth rate recorded in the preceding year further confirms that poverty rate is falling.


He said some of the programmes put in place by his office in 2009 including the Cash Transfer Programme (COPE) and the involvement of state governments have helped in the fight against poverty in Nigeria.


Daily Trust had reported that in 1980, 28% of Nigerians were poor; in 1985 the poverty ratio grew to 46% and dropped to 42% in 19992. In 1996, the ratio was 65.6%, in 1990 it was 70% and in 2004 it fell to 54.4%. He said the current poverty rate is less than 50 per cent and that Nigerians are richer.


He said though the actual data is collated by the National Bureau of Statistics which is expected to come up this year.


He said: "The poverty rate has drop because for example if you look at the economy, and look at what happens in say agriculture, you will realise that there is growth in the sector last year and that growth in output means something happened there. If you look across board, you will see that the overall GDP growth rate in the economy grew by about 6%.All of that growth took place in the non-oil sector where you have people getting jobs."


"If we manage to grow and the oil sector accounts for 30% of the economy and if close to 30% of the economy has decline and yet we were able to get 6% growth rate, it means that the other sectors had significant growth rate. So if you take that now and add to the consistency in the economic growth rate that we had since 2000, which help to bring the poverty rate from 70 % in 1999 to 54.4% in 2004,and the momentum continues, then it is not unreasonable to believe that the poverty rate must have dropped more than 4 points between 2004 and 2009."


"If between 1999 and 2004, that is 5 years the poverty rate dropped 16 points, it is not unreasonable to think that in another 5 years, the poverty rate couldn't have dropped more than 4 points. As an economist, doing the back of envelop calculations, I know at the back of my mind that unless we change the yardstick that we use in measurement, the poverty rate will be under 50%."


Daily Trust


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Police officer kills driver over bribe

A commercial bus driver in Enugu, Mr. Chijioke Ugwu, was shot and killed by a Police Inspector attached to Enugu State Police Command, Mr. Pius Agbo on Saturday for allegedly refusing to give the bribe demanded by the policeman.


The late Ugwu, who hailed from Amagunze in Nkanu East Local Government Area, was shot dead by the trigger-happy policeman during a heated argument over payment of a certain amount of money as bribe.


An eyewitness said Ugwu, driver of an L-300 Mitsubishi bus with plate number, AA 756 AYB, refused to give money at the police check point, insisting he had paid earlier but the Police Inspector, who was provoked by his explanation pulled his trigger suddenly and shot him.


The driver was said to have died on the spot.


Confirming the incident, the State Police Public Relation Officer, Mr. Ebere Amaraizu described the incident, which occurred at Awkunanaw area of the coal city as unfortunate.


Amaraizu said Inspector Agbo had since been arrested and was facing "orderly room trial" at the Criminal Investigation Bureau of the Command.


He said Agbo would be dismissed and charged to court to face the full weight of the law if found guilty as charged.


Citing Force Order 237, the command's spokesman said every policeman was trained on how and when to use the gun as well as the implications of being careless with it.


The PPRO said, "this matter is really unfortunate because the said Ugwu is dead. But we are not taking the matter lightly. Agbo already knows what he is in for. Investigation is on-going in the matter and by Monday (today), you know what next.


"It is sad that such an incident is coming now that the police is doing everything possible to restore people's confidence in the Force. We will keep the fight on because there is a tremendous change," Amaraizu said.


Vanguard


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Friday, January 8, 2010

CNN shows Nigerian children learning a life of poverty and violence



CNN's Christian Purefoy reports on how poor families from rural areas across West Africa send their children to a network of Islamic boarding schools in the cities of northern Nigeria.


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Super Eagles to get U.S.$33,000 each as match bonus


Nigeria football authorities have jerked up winning bonus for members of the Super Eagles who are to begin their campaign to win the African Nations Cup for the third time with their January 12 opener against defending champions Egypt in Benguela, Angola.


According to figures released by the Nigeria Football Federation (NFF) yesterday, each member of the team will receive $30,000 (about N4.6 million) as match bonus for the group matches in Angola.


Aside the bonus, the players will also get $3,000 as appearance fee in every match featured.


The breakdown further shows that the NFF had increased the players' pay from the initial $5,000 to $15,000 backed by the support of the Presidential Task Force (PTF) who ensured that the Eagles' 2010 World Cup qualification did not suffer from lack of motivation. When viewed from the same $15,000 package from the PTF, the total take home of each player rose to $30,000 as bonus up to the quarterfinals of the continental tournament.


Ademola Olajire, chief media officer of the NFF, while confirming the package yesterday further revealed that the players' earnings would still be reviewed upward after the quarterfinal game.


"The NFF will certainly review the players' bonus after the quarter finals stage. Definitely, I don't know the figure they will agree upon," stressed the image-maker last night.


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