August 1 1999, Jagaban attempted to break the monopoly of NEPA with an IPP in Lagos, a 290MW private sector funded power project with Yinka Folawiyo power Limited. This singular move would have transformed power generation in Nigeria. Instead the FG, Obasanjo and NEPA fought him
The model was simple, the IPP would generate power, send it to the National grid, NEPA will receive, transmit and distribute the power. Lagos will determine the final consumers and also market the power generated. The target areas were the business districts, industrial areas
Commercial zones, public places and residential homes. Jagaban agreed to contribute 21% of the monthly power purchase agreement bills if all the power generated would be distributed to Lagos. He further instructed the ministry of finance to debit his allocation directly...
Just supply my people light as instructed and I will ensure that all bills are collected. In 2001 the power plant began operations, supply energy to the National grid but certain order from above instructed them not to distribute power to Lagos as agreed in the agreement.
Few years after, a $16bn IPP project was launched by Obj, and he started building independent power plants across the country, same thing they opposed in Lagos. 13 years after PHCN and NEPA died naturally. The FG finally saw the need to kill the monopoly as envisioned by Jagaban
The FG adopted the same template but messed up the privatisation, distribution and billing system. Jagaban said, send this light to my people in Lagos, they are willing to pay, don't fix the rate, I will collect the bills through a metered system.
The FG should have used Lagos as a template for IPP generation, targeted distribution and collection of bills. Success in Lagos would have galvanised private sector investment in power across the country.
Unfortunately, 21 years after we have refused to take off.
Unfortunately, 21 years after we have refused to take off.
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