Feature/OPED

DISCOS and the Case for an Encore for Fashola

Published

6 years ago

29/05/2019

By Segun Odunuyi

Way back in the 60’s and 70’s in Lagos, Discos – short for Discotheques- were the places to be on Friday nights when the weekend spell of fun and entertainment took off in earnest. At the Disco parties and clubs, you really let off steam, gyrating wildly to the heavy bass and percussive beats of recorded pop music.

Fast forward to here and now in Lagos. The word “Discos”, to the average Lagos resident, now evokes anything but fun. Rather, it evokes the terrifying image of the bogeyman from the Power Distribution Companies (DisCos), who arrives at your homes monthly with his package of “double jeopardy” in the forms of electricity bills for energy you have most probably not used – called estimated billing – and an unending reluctance or incapacity to provide you with meters -or “pre-paid meters” in popular parlance- which, at least, enables consumers to pay for the quantum of energy consumed.

Clearly, drawing from the drift of the national conversation on the performance of the power sector, the Discos have been and remain the weakest link in the power value chain. In a recent interview, Usman Mohammed, the Managing Director/Chief Executive of Transmission Company of Nigeria (TCN) declared that “we cannot have a stable grid (electricity) unless we have an adequate investment on the distribution side and that is why TCN has been calling on the Discos to be recapitalized.” The TCN, like the Discos, is a creation of the unbundling of the former Power Holding Company of Nigeria (PHCN) in 2011 under the 2005 Electric Sector Power Reform Act, which privatized the nation’s power assets.

When he emerged on the power scene in November 2015 as the Minister of the three-in-one Ministry of Power, Works and Housing, which constituted about 80 percent of the basic physical infrastructure on which hopes for the revival of the then comatose economy rested, Mr Babatunde Raji Fashola was still basking in the public adulation of his exceptional performance as Executive Governor of Lagos State. His appointment by President Muhammadu Buhari to oversee such a “super-portfolio” elicited vehement protests from some quarters but Mr President knew that he had hit on the man to oversee the revival of physical infrastructure to drive the resuscitation of the economy.

From the 2005 Act and the subsequent unbundling also emerged entities like the National Electricity Regulatory Commission (NERC), the all-powerful regulator and licensor, and the Power Generation Companies (Gencos) who buys gas from the gas companies to produce power and sells to the Discos who rely on the TCN to get the power to their substations and distribute to homes and factories in their allocated distribution areas.

The “sin” of the Discos, then and now, is that they have never been able to fully evacuate the power load generated by the Gencos. The result is that there is a perpetual gap between power demand and supply and hence the power outages. The irony is that, contrary to popular impression in the media and among energy consumers, Fashola does not supervise the Discos. They were not licensed by his ministry but by the NERC which does not report to the Minister. So, Fashola, cannot, for example, withdraw the licence of a non-performing Disco or alter the terms or scope of operations of such licensee. That apparent absurdity in supervision was a product of privatization. Still, the minister had to navigate his way around such limitations and others to deliver on his agenda for profound and enduring change in the sector.

And, going by the incredible strides and achievements he has demonstrably notched up in just there and a half year to fast-track infrastructural development in Nigeria, Fashola’s performance has been top-drawer. But as he has stated often, the journey he had patriotically and passionately embarked upon was a “marathon and not a sprint”. Clearly, there is still a lot to do and accomplish if the Buhari government must equal or even surpass the spirited and enduring physical infrastructure development feats of the General Yakubu Gowon regime in the late 60s and 70s. Fashola undoubtedly deserves an encore on the second term Cabinet of the Buhari Administration, to reach a greater distance in the “marathon” especially in the power and works sectors.

It had not been easy, though, for the man once dubbed “the Actualizer” when he was at the helm of affairs in Lagos State. Indeed, Fashola must have been jolted by what he inherited in the power, works and housing sectors: structural rigidities, convoluted supervisory arrangements and crippling underfunding amidst huge liabilities to contractors, amongst the many unenviable legacies of the long and mindless neglect of the country’s primary and secondary infrastructures. But he also had a free hand from Mr President as well as his own his vision and rare capacity to understand, dissect and proffer solutions to knotty issues; his legendary fervour for long and hard work and, of course, a number of able lieutenants. He was not about to fail on his set deliverables.

Take the power sector. Fashola knew he had to, literarily, “crack the DNA” of the seemingly intractable power sector, which is the livewire of industry, by introducing fresh ideas. He did not take long to arrive at his eureka moment, and he set out to deliver to the following goals: increasing power generation from the 4,000 MW the administration met at inception, to a peak of 7,000 mw, in order to achieve “Incremental Power” -as the first visible and practical results of new initiatives; ending the mind-budgetary under-provisioning in order to get abandoned projects back on track and to execute new power projects , and improved interface with power stakeholders and consumers to secure the critical buy-in for the ministry’s road map . After three and half years in office, Fashola and his ministry have delivered satisfactorily on all these power sector goals.

Under Fashola’s watch, the initiatives which have driven the “Incremental Power” phase of his ministry’s road map include the promotion of off-grid connections and licensing of private Meter Asset Providers (MAP). The result is that, nine universities in the country will have 24-hour supply by the end of the year while major markets across the country, including Ariaria, Sabon Gari, Sura, Iponri and a couple of others in Ondo and Ibadan now have reliable power supply from the off-grid model. Twelve private meter providers have also been licensed to roll out from May 1, 2019 nationwide in a move that will help assuage vociferous and unending consumer protests against the present regime of estimated billing by the Discos.

Budgetary allocations from 2015 till date have also reflected the administration’s success in breaking from the mold of the past, when promises to bridge the nation’s gaping infrastructure deficits were mere political statements totally unmatched by financial provisions and commitments. In 2015 the total budget for the Power ministry was a N9.06 billion with about 50 percent or N4.47 billion earmarked for salaries and other recurrent expenses, leaving a paltry N5.13 billion left for capital expenditure. That sum could barely fund 22 out of the 142 outstanding transmission projects valued at N40 billion which Fashola met on ground.

Such budget under-provisioning was, indeed, the fate of the ministries saddled with infrastructure development, a recipe for abandoned projects and worsening of the infrastructure deficit. The Muhammadu Buhari administration halted the trend. From its very first budget in 2016, the government raised the pathetic N93.66 billion for Power, Works, Aviation, Transport and the Federal Capital Territory in 2015 to a healthy N433.4 billion the next year for Fashola’s Works Power and Housing ministry alone. Indeed, by 2018, the government, even in the face of other pressing obligations and dwindling earnings, had spent a whopping N2.7 trillion on infrastructure in three years, an unprecedented record.

And, unlike the past when the nation has had little to show for the billions of naira expended on infrastructure, demonstrable and visible results have emerged under Fasola’s watch. Yes, power outages still subsist, no thanks to the Discos who lack the capacity to evacuate power load generated by the Gencos. The difference now, however, is that today with Fashola’s “Incremental Power”, the consumer knows he does not need to wait endlessly for power to be restored. Now, unless there is a major transmission fault in his locality, power is back soon for the consumer’s use after an outage. So, consumers now run generators for shorter periods and spend less money on fuel to power their generators. This is a far cry from the situation up till 2015. Under Fashola’s watch, power generation has increased from 4,000 MW to 7,000 MW and distribution from 2690 MW to 5222 MW as at November 2018.

Meanwhile Fashola has initiated and led a bold effort to help out the problematic Discos by proposing and securing a N72 billion funding from the federal government, which owns 40 percent states in the Discos, for the distribution companies to invest in their equipment and operations in order to evacuate excess power. With this, the gains from the “Incremental Power” phase of the ministry’s road map will improve significantly since power outages should be fewer.

On the works front, Fashola got contractors back on site at hundreds of abandoned road projects. Indeed, by the beginning of 2017, work was going on simultaneously on at least two roads in each of the 36 states of the federation. The roads, including the seemingly jinxed Lagos-Ibadan Expressway, were mainly strategic arterial roads connecting states and major cities, with significant socio-economic benefits in the nation’s six geo-political zones. Construction and rehabilitation of roads involving 565 contracts are currently on-going across the nation under Fashola’s watch.

The minister’s strategy on housing growth strategy was hinged on the pilot of a National Housing Programme in 34 of the 36 states and FCT that had provided land for the scheme. Ongoing construction of different models of houses across the nation with at least 1,000 people – artisans, vendors, craftsmen and suppliers – engaged in each of the sites. Characteristically, Fashola has also sought the buy-in of the private sector by creating a better enabling environment for their participation in housing construction and development. Equity contributions for prospective home owners seeking mortgage loans from the Federal Mortgage Bank of Nigeria (FMBN) and the Federal Housing Authority (FHA) have been slashed drastically to provide easier access to housing. The institutions, which are parastatals under Fashola’s ministry now require zero percent (from 5 percent) contribution from those seeking mortgage loans up to N5 million and 10 percent (down from 15 percent) from those who want loans of over N5 million.

Even with the prodigious achievements he has notched up in the first term of the President Muhammadu Buhari’s administration, Mr Babatunde Fashola , the Honourable Minister of Power, Works and Housing, still has quite some distance to cover to reach the finish line of the “marathon“ which his ministry’s infrastructure road map has been. An encore for him on the next Federal Cabinet is what the nation deserves. Never mind the Discos.

Segun Odunuyi is a Lagos-based public commentator

Feature/OPED

Unlocking Full Human Potential: Growth, Diversity, and Purpose

Published

3 days ago

13/01/2025

Business Post Contributor

In Nigeria’s diverse workforce, the conversation around diversity and inclusion (DEI) extends beyond gender to address tribal diversity, socioeconomic representation, and other cultural nuances. Policies that promote inclusivity are crucial for fostering collaboration in Nigeria’s multicultural corporate environment.

“An organisation is only as good as its people. Ensuring those people perform to their best is the role of human capital. Today, the field has a range of tools to ensure real-time engagement and agile interventions for optimal job satisfaction and performance”, – Catia Teixeira, MultiChoice Africa Holdings Group Executive Head of Human Capital.

In both our professional and personal lives, we all strive for growth and development. These opportunities are deeply rewarding, supporting the kind of self-actualisation that makes life most fulfilling. In the Nigerian workplace, where career growth often intertwines with societal expectations and the drive for self-improvement, human capital plays an even more significant role. Opportunities to grow are not just fulfilling but are deeply rooted in our collective ambition for a better future.

Employee engagement is a reflection of how actualised individuals feel in their roles. Engaged employees are more likely to perform at their peak and contribute positively to the workplace. In Nigeria, where the “hustle culture” is celebrated, organizations must create environments that not only nurture growth but also recognize and reward the efforts of their people.

When employees feel enriched and their work aligns with their aspirations, the results are transformative. Growth and development are not just personal milestones—they are the foundation of a thriving organization and, by extension, a more productive society.

Identifying Growth Opportunities

In every workplace, some employees stand out from the first day, while others take time to grow into their potential. Talent management processes must cater to both. For instance, a twice-yearly organizational talent review can help Nigerian companies identify where employees excel and where they need support.

Interactions within the workplace also play a crucial role. In Nigeria’s highly networked professional landscape, creating opportunities for cross-departmental collaboration can open new doors for employees. Systematic development plans, supported by tailored training, ensure that these opportunities translate into tangible growth.

Take the MultiChoice Academy, for example, which offers over 4,000 online courses spanning finance, HR, marketing, and other fields. This mirrors the Nigerian appetite for continuous learning, especially as industries rapidly embrace digital transformation. While face-to-face training remains valuable, customized e-learning platforms are pivotal in bridging knowledge gaps and preparing employees for the future of work.

For any training program, balance is key. Organizations must align employee development with business goals while ensuring individuals feel empowered to pursue their aspirations. In Nigeria, induction programs that connect new hires with company visions and purpose are critical to building this alignment.

One of the most rewarding aspects of human capital management is witnessing success stories unfold. In a country like Nigeria, where talent is abundant, but opportunities may be unevenly distributed, developing talent internally can make a significant impact. Long-term employees bring invaluable institutional knowledge, and nurturing their growth ensures they continue to drive organizational success.

At MultiChoice, we are deeply committed to equipping our workforce with the skills and confidence needed to excel. Whether it’s training young leaders, empowering women in leadership, or developing heads of departments, every investment in our people enhances their value – as individuals and as indispensable assets to the company.

What Diversity Means

At MultiChoice, gender equity remains a key focus. Women make up 46% of our workforce, and 46% of leadership roles are held by women—a significant achievement in a society where women often juggle professional aspirations with traditional family roles. Our promotions policy is designed to push these numbers to 50%, ensuring equity across all levels of the organization.

When entering new markets, MultiChoice intentionally applies its culture of inclusion, empowering women to excel in leadership positions. This commitment extends to addressing barriers unique to Nigeria, such as access to resources and mentorship for women in underrepresented fields.

Data Drives Change

To drive meaningful change, data is indispensable. Nigerian companies often face challenges like high employee turnover and workplace inefficiencies. By leveraging data, organizations can address these issues strategically.

MultiChoice uses platforms like Office Vibe to generate insights into employee engagement, satisfaction, and work-life balance. Weekly surveys and random polls provide actionable feedback, enabling quick interventions and fostering a culture of continuous improvement.

In Nigeria, where trust in leadership significantly influences workplace morale, data can also help bridge gaps between management and employees. Regular focus groups, coupled with robust analytics, ensure employees feel heard and supported. When organizations align employee needs with business goals, the result is a workforce driven by purpose and achievement.

The Collective Goal

In Nigeria, where community and collective growth are deeply valued, human capital strategies should emphasize the power of shared purpose. By investing in people, organizations contribute to a larger vision of national development.

At MultiChoice, every success story is a testament to this philosophy. From training young leaders to empowering women in leadership, the organization demonstrates that growth is a journey best undertaken together. For Nigeria, this represents a powerful blueprint for building a future where individuals and organizations thrive in harmony.

Feature/OPED

Between Governor Bala and the Presidency

Published

3 days ago

13/01/2025

Business Post Contributor

Abba Dukawa

Although I’ve never met Governor Bala Muhammad in person, only seeing him on television, his recent outburst against the federal government’s economic policies resonates deeply with poor citizens’ view.

His concerns stem from empathy for the citizens’ going through unbearable hardships, which have worsened due to the economic situation where millions of citizens struggling with high cost of living, poverty and hardship, reflecting the reality on the ground where citizens face significant economic challenges.

His view resonated with the people in respect of political affiliations have praised Governor Bala for speaking truth to power, acknowledging that the economic policies aren’t working. But his outburst of the economic policies has sparked a heated response from presidency.

Even though President Bola Tinubu claims to have no regrets about his economic policies, aiming to strengthen the country’s economy, policies must be empathetic.

The Tax Reform Bills, in particular, have generated widespread concern, with experts warning of negative implications and advising the government to postpone the bill and engage in further consultations.

The National Economic Council, comprising 36 state governors and led by the Vice President, had expressed reservations about the bill, emphasizing the need for adequate consultation with stakeholders.

However, the Presidency swiftly rejected the NEC’s advice, stressing that the bill is crucial for supporting President Tinubu’s administration in bolstering the country’s fiscal institutions.

Governor Bala Muhammad’s expressed his concerns when hosting Sheikh Yahaya Jangir, a frontline campaigner for the Muslim-Muslim presidency, at the Bauchi Government House.

The governor urged President Tinubu to listen to Nigerians and correct his errors, stating that it’s his duty as a leader to tell the truth.

As Governor Mohammed noted, “I am sure you have heard that we are quarrelling with the president. Yes, it is true we are quarrelling because our people are suffering, and the president has refused to listen to us.”

His comments should not be seen as a critique of the president’s policies, not a personal attack. It’s essential for President Tinubu’s administration to understand the growing concern among Nigerians about the country’s economic direction and the need for effective strategies to address the current economic hardship.

The Presidency, through his Special Adviser, Sunday Dare, responded by urging Governor Mohammed to prioritize the welfare of Bauchi citizens instead of engaging in political posturing. Dare emphasized that the President’s administration is focused on national development and collaboration with state leaders.

It’s worth noting that Governor Mohammed has implemented various poverty alleviation programs, including the Kaura Economic Empowerment Programme (KEEP), to reduce the state’s high poverty rate. He has also prioritized education, with a focus on reducing the number of out-of-school children in the state.

Additionally, Governor Mohammed has taken steps to improve the state’s healthcare system, His administration’s efforts to address these challenges echo the experiences of poor citizens in Bauchi State and across Nigeria.

Overall, Governor Mohammed’s commitment to addressing the pressing issues faced by his state and its citizens resonates deeply with the experiences of poor Nigerians..

Dukawa write it from Abuja can be reached at [email protected]

Feature/OPED

Tinubu’s Titanic Wahala

Published

1 week ago

08/01/2025

Business Post Contributor

By Tony Ogunlowo

‘Titanic’ can mean something that is very big, gigantic or enormous and it was also the name of a ship that sank on its maiden voyage.

When the Titanic sank in 1912 it sank due to a number of avoidable factors: a ship deemed unsinkable that wasn’t fitted with watertight compartments, a ‘unprofessional’ seasoned captain who was apparently bullied into going at full speed through known ice-berg strewn waters, lack of common binoculars for the deck watch and the unavailability of enough life boats for all the passengers.

This all put together, as they say, was a recipe for disaster. Red flags were ignored.

Translating this to President Tinubu’s modern-day Nigeria, the avoidable factors that can sink the country are way too obvious.

Nigerians have long enjoyed the benefits of fuel subsidy. Costly as it is to maintain it’s enabled the economy to keep running by keeping the cost of things low. It’s removal, as can be seen, has created a domino effect, as the experts predicted, resulting in the prices of even the basic commodities skyrocketing as everyone passes on the additional costs.

With inflation currently at 32.7% and still rising, things are only going to keep on getting more and more expensive. As a result, the new minimum wage of N70,000 will have less purchasing power than the previous 2021 minimum wage of N30,000. If fuel subsidy removal was meant to boost the economy it has done the opposite and will stagnate any efforts to kickstart it.

The governments inability to control corruption or severely punish corrupt officials which is robbing the country’s coffers of billions and billions of Naira every year is a stumbling block for development.

If a corrupt government official who built 750 houses with stolen funds or an ex-governor accused of misappropriating N80 billion are allowed to walk around freely, supposedly on bail, without fear of eventual conviction it questions the message the government is sending out to future looters: if the culprits were in Russia or China the outcome will be totally different.

Even though an austerity economic policy may seem harsh like it was designed to rob Peter to pay Paul, it should be short, sharp hardship with green pastures in the foreseeable future – not ever! A good start will be to cut down on the number of foreign loans being obtained every year as their repayment can take a huge chunk out of the country’s annual income.

The new tax laws are long overdue and it should include that VAT earned in a state stays in that state: so, if your state doesn’t generate any VAT (- such as from the sale of alcohol products) you don’t get to share in what other states have collected.

Insecurity in the country is not something that started yesterday. Previous governments have blood on their hands for not nipping these insurrections in the bud before they grew to become monstrosities. You don’t pat yourself on the back, like the Nigerian Army likes to do believing you have the threat ‘under control’ – you eliminate the threat completely using what ever means necessary.

Unless the order (given by ‘Somebody’) is not to destroy them completely and to quote the late Sani Abacha,”…any insurgency that lasts more than 24 hours, a government official has a hand in it..”, no wonder Boko Haram continues to flourish and bandits like Turji Bello continue to taut the government. When the armed robber Lawrence Anini did something similar in 1986 he was fished out within months, tried and executed.

As I’ve written before the Nigerian Police Force is long past its sell by date and considering the ever growing population of Nigeria with its associated acts of anti-social behaviour its time to seriously consider devolving the NPF into state-run outfits. The growing popularity of state-run security outfits, such as Amotekun, proves this is feasible and effective.

Considering the fact the country is going through severe economic hardship the President, himself, should curb frivolous spending where possible: no more new Presidential yachts or planes ( – that includes the new one for the VP), a cap on ridiculous-no-real-job SA and SSA appointments and most important of all a cap on ALL politicians salaries and perks (which is to say if politicians are patriotic enough they’ll agree to a pay cut, forgo some of their benefits and pay for their own jaunts abroad).

Implementing the Steve Oronsaye Report which recommends merging and closing of ministries etc that has been passed over by every President since President Goodluck commissioned it in 2011 will cut government operating costs even further. This should not just be at Presidential level but extended to all the states: this will not just streamline the bloated and largely inefficient civil service but will also weed out ghost workers and white elephant project.

The ‘japa’ movement which the government is trying to discourage should be allowed to continue. It’s morally wrong for a government that can’t provide suitable employment for its citizens to try and prevent them from seeking opportunities abroad : ‘japa’ is not just limited to Nigerians, it’s a worldwide phenomenon.

People, British, American, Filipinos, are migrating worldwide to where ever there are opportunities for them to prosper. That’s the way the world works now: nobody is going to stay in a ‘sh*t-hole’ country if there are no opportunities for them to grow. Scr3w patriotism! It’s every man for himself! So, if a country can’t provide adequate employment opportunities people will pack their bags and ‘japa’! And if you restrict them from leaving the country what are they going to do? Get up to mischief – 419, cultism, kidnapping!

These same people send money back to their home countries all the time: Nigerians in diaspora in 2023 alone sent home more than $19.5 Billion Dollars. This is a huge injection of foreign currency for a country that desperately needs it.

So, just like the Titanic the warning signs are there and the inevitable that will happen should they be ignored. The question is which way is President Tinubu going to go. This is what I call the ‘Titanic Wahala’, ignore the obvious and the proverbial will hit the fan, sooner or later.