Friday, June 27, 2008

ISSUE #1: Excess Crude fund
In November 2007, Yar'Adua told Nigerians that the federal government would no longer tap into the excess crude account to fund the nation's power plants. His spokesperson stated that instead, private equity would be used to develop the power industry and that the government had turned to foreign experts "for possible assistance and collaboration in the development of the power supply infrastructure."

Given the above, is it not interesting that the Yar'Adua administration has now declared that $10 billion will be used to re-energize Nigeria's failed power sector?

I honestly do not raise this point as a criticism of the administration. I simply raise it because I am trying to understand the specific plan by the administration to tap into the excess crude account while also using funding from private investors as previously announced by the federal government. Clearly, telling the public that funds from the account would not be used and then, approximately 8 months later, using that same fund to finance power projects appears like a direct contradiction.

ISSUE #2: Agagu, Imoke and the 'Implementation Committee'
Additionally, the decision to ask Agagu and Imoke to join the 'Implementation Committee' which is charged with overseeing the effective use of the billions taken from the excess crude fund, further calls into question the promises made by this administration to brings into question Yardy's promise to provide,
"a purposeful and result-oriented administration that will yield tangible and visible benefits for all Nigerians".
On this Agagu/Imoke issue, I personally believe that Yardy is dealing with 'the devil' because he has to. There are 'principalities' that control Nigeria that have to be 'appeased'. It's nothing personal, it's just politics. However, that reality does not lessen the fact that Yardy's decision to include these men and Danjuma Goje (another former Minister who is tied to Nigeria's failed power sector) suggests business as usual. Unfortunately, as is the case with so much in Nigeria, Nigerians will simply have t watch from the sidelines and hope for some positive change.

Further Reading:
- Can Yar'Adua Accomplish His 'Mission'?
- The Africa Finanace Corporation

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4 Curiosities. Add Yours.:

Standtall said...

Truth is I dont really know why our government kept wasting resources on power generation. Dont get me wrong, I could recall Obasanjo so-called committment to power that he wasted billions in inviting in the chineseto help us. I am a bit confuse, is Yar'adua continuing with this chinese alliance or is it starting up a new initiative?

Cheetarah said...

Ah well i wunt say im back..but sumtimes I still write,tanx for dropping by. As to Yaradua..I havent read this post will come back with my tots afta,k!

snazzy said...

basically there are two reform efforts. There is the presidential committee that came out with the report focusing on private sector led stuff. With AFC taking a lead role on the whole thing. This proved political unpatable for some reason, and lead to the inquiry into the CBN investment in aforementioned AFC.

Then there is the Lukman led committee that decided to have the government play a major role (the only role) in the whole thing by supplying $85 billion to revamp the sector. No one knows where the government is going to get the money from but ask Lukman.

Anyway both reports recommend the completion of the NIPP scheme. Yar Adua has decided to go with Lukman's recommendation at least on the NIPP scheme. Which is why the excess crude account was tapped as opposed to private money.

Most people do not expect Lukman plan for the government to keep power a state thing will succeed but it seems to be more politically palatable at this time.

However according to business day (check website) there are plans to find a way to merge the two plans. Only time will tell I suppose

As per your second point. Only Yardy knows.

guerreiranigeriana said...

...i just can't expect much from a president who finds nothing wrong with flying abroad for health care while his constituents are left to manage...why wouldn't he flip flop and carry on with business as usual?...

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