FG hands over Ibadan electricity distribution plant to private owner

Plants serves several South West states
The Federal Government, on Friday, formally transferred its ownership of an electricity distribution plant in Ibadan to a private company, Integrated Energy Distribution and Marketing Company Limited.

The plant distributes electricity to consumers in Oyo, Osun, Ogun, Ondo, Ekiti and parts of Kogi, Kwara and Niger States.

The ceremony which took place at the Banquet Hall of Premier Hotel, saw Anastasia Daniel-Nwaobia, a permanent secretary in the Federal Ministry of Finance, who represented Vice President, Namadi Sambo, sign and present a certificate of transfer of ownership to the new owner on behalf of the Federal Government.

The handing over was witnessed by the governors of Oyo and Ogun States, Abiola Ajimobi and Ibikunle Amosun, respectively.

Mr. Sambo described the move as indispensable to the resuscitation and effective performance of the power sector, adding that it was done in realisation that Nigeria could not attain the desired economic growth without adequate and effective power supply.

"The reform is a necessary tool for laying a solid foundation for sustainable power generation and service efficiency in the sector. The privatisation of the sector is a key component of the reform and is one of the pre-condition for the start up of a competitive electricity market in Nigeria."

"It needs to be restated that the electric power reform program became imperative in order to improve efficiency, reduce losses and cost.
No doubt, this reform will lead to increased access to electricity, engender private sector investment, improve infrastructure, and create employment for the growing population of our citizenry," he said.

The management of the new company said the Federal Government decided to unbundle and privatise the power sector to give effect to its mandate to provide the nation with adequate and reliable power supply.

The Chairman of Integrated Energy, represented by Olatunde Ayeni, noted that this was achieved through the personal commitment and political will of President Goodluck Jonathan.

"This move marks the beginning of a new journey. It is to ensure that epileptic power supply does not paralyse economic development.
He stated that the privatisation process was part of the on-going transformation agenda of the president.

"Our vision is to transform into a world class organisation and a leader in the electricity distribution industry. The radiant smiles on the faces of our customers shall be the ultimate yardstick of our success."

Also speaking, Governor Amosun said, "In any nation, without getting the power right, there will be no progress. Within the next two years when they have settled down, we would look back and thank God. Government has no business handling power. It should be given to a private sector".

He urged the new company taking over the distribution company to look inward and give its best.

"Try and see that within the next one year, meters are produced in Ogun , Ekiti, Oyo, Kwara and other parts."
Mr. Ajimobi, on his part, said,"At the end of every darkness, there must be light".

He urged the new owners to make effort to improve on power supply, adding that privatisation was a product of economic theory.

"Nigerian government has realised that there is need to leave the whole process in the hands of private sector. Private ownership is very important and would improve quality. The world is moving towards privatisation and Nigeria cannot afford to stay behind," he noted.