This is a trap that would enslave electricity consumers by the banks in an effort to recover their loans. Nigerian banks do not have long-term capital to invest in long-term projects. Setting up a special purpose vehicle by the banks will be a short-term measure that will not resolve the outstanding issue.
The question is: Where are the results of similar interventions in the past? There was intervention in textile, aviation and SMEs? What is the state of these sectors as of today?
Most industries in Nigeria rely on gas supply and LPFO to power their plants as public power supply has become a standby thing, are now suffering as a result of inadequate gas and LPFO supply causing them to produce far below their installed capacity. If firms in the real sector are not producing enough to meet local needs, Nigerians will continue to depend on import for a long time to come.
From what is happening in the country now, the most unfortunate of it all is the fact that LPFO which was supplied to industries from Kaduna and Warri refineries is now being imported by companies. Why is Nigeria going round in circles?
Why can’t Nigeria get just one good head as a leader to break this jinx? Importation of fuel and other things that can be produced locally is appalling and disheartening. Where is this government’s gas master plan? When are Nigerians going to begin to see results? Motions without movement of various administrations in this country is sickening.
Nigeria recently privatized the power sector. The generating companies made huge investment in the various power plants but unknown to many, gas supply will become a hindrance to moving forward. Today, many are struggling to pay through their noses.
The privatization raised the hopes of Nigerians on regular power supply, but that is now far-fetched as hope for gas supply looks very dim.
Many of the power-generating companies (GENCOs), are already facing difficult times as a good number which borrowed money from banks are finding it difficult to meet their obligations to the banks because they cannot generate enough power due to lack of gas. Some of the loans taken by these power operators may go bad and the Asset Management Corporation of Nigeria (AMCON) may be called upon to buy off these non-performing loans in banks. But AMCON has already foreclosed further purchase of non- performing loans in Nigerian banks.
Failure of these loans to perform portend great danger to the banking industry and the economy as a whole. If the situation is not nipped in the bud, another round of banking crisis may rear its ugly head with its attendant consequences.
Every Nigerian should be concerned at this development as it will hinder the prospects of job creation and further compound the unemployment situation in the country.
The unemployment situation in the country is already bad but this situation may cause companies to begin to retrench workers and push more Nigerians into the labour market. So the nation must be prepared for more robberies and militancy by youths from across the country.
Let Nigeria’s refineries begin to work. The National Assembly should open up the oil sector to private investment by passing the PIB bill, and then Nigeria will be free from the shackles of the greed that has held the nation to ransom.
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