Politically
speaking, the privatization of public entities is meant to inject efficiency
into such sector for improved and better performance because it has been
globally agreed that government is a bad manager of resources and has no
business in business but should only provide enabling environment for private
enterprises with competence and relevant skills to thrive.
In
line with the above objective of privatization, the administration of President
Bola Ahmed Tinubu is considering unbundling the Transmission Company of Nigeria
(TCN) because the power sector is yet to deliver on its mandate to make stable
and reliable electricity available to Nigerians.
Left
to some analysts, TCN is better managed as a single entity that should be
fortified with additional investment into making available basic infrastructure
like a functional Supervisory Control and Data Acquisition (SCADA), upgrading
and rehabilitation of existing equipment and substations etc for it to perform
better.
Lofty
as the unbundling plan is, the government should carry out an evaluation of the
already privatized outfits before taking a final decision in this regard.
Since
the privatization of the generation and distribution arms of the value chain in
the power sector in 2013, the output has been a mixed bag of fortunes with some
doing well while others have become retrogressive in their performance. This is
why government must not rush but do due diligence of the privatized outfits so
as to be properly guided on its decision.
Also,
the government should be careful with regards to the privatization model to be selected
for TCN. This is necessary because the failure of some of the existing privatized
outfits is traceable to the model adopted and the type of persons entrusted
with the privatized companies. Excessive political consideration was used in
picking those declared as preferred bidders at the detriment of competence and
capability. A cursory view of the performance of these outfits will show that
those doing well are being controlled by knowledgeable people with
industry-wide experience.
Furthermore,
as a critical national asset, serious consideration must be given to the
security implication of unbundling TCN so as not to inadvertently expose the
security of the nation to anonymous entities.
With
an effective monitoring mechanism in place to periodically evaluate their
performances, privatization could attract good dividends to the sector and free
up the sector to receive injectable funds for necessary investments that are aimed
at upgrading facilities and improving the overall performance of the sector.
Nigerians
are eagerly waiting for the day when available installed generation capacity
together with transmission wheeling capacity and disco network will be able and
capable to give them 24 hours uninterrupted power supply.
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