*Says alleged $16b wasted on electricity mere political tool to criticize power sector reforms
WorldStage Newsonline– Former Cross River State Governor, Sen Liyel Imoke on Thursday proffered solutions to the security challenges facing the Nigeria as well as how to fix electric power deficit and seeing the nation transiting to a digital economy.
Delivering the keynote speech at the 8th Guild of Corporate Online Publishers (GOCOP) annual conference in Lokoja, Kogi State, he said, Nigeria in the 21st Century faced challenges that not only impede growth but also compromise its global competitiveness.
Speaking on the theme of the conference Nigeria’s Path Forward: Tackling Insecurity, Electric Power Deficit, And Transitioning To A Digital Economy, he said tackling insecurity, solving the electric power deficit, and transitioning to a digital economy were three intertwined challenges that Nigeria must address to unlock its potential.
“The road ahead is long, but it is not insurmountable. With the right policies, investments, and collective efforts from both the public and private sectors, Nigeria can emerge as a leader in Africa and the world,” he said.
The former Minister of Power during the Obasanjo regime said while Nigeria had made some strides in reducing insurgency and addressing maritime insecurity, the country continued to face significant security challenges, especially related to banditry, kidnapping, and communal clashes.
“Addressing these challenges will require a multifaceted approach involving better governance, regional cooperation, security sector reforms, and sustainable development programs aimed at tackling the root causes,” he said.
Among the recommendations he listed include strengthening Local Security Architecture through Community Policing and decentralization of security; Improving the Condition of the Economy; Implementing Comprehensive Rural Development Programs, Deploy Advanced Technology for Intelligence Gathering; Implement Sustainable Peace and Mediation Programs; Enhance Funding for Security Agencies; Strengthening Legal and Judicial Systems; Bolstering Regional and International Cooperation; Border Control and Arms Regulation; and Rehabilitation and Reintegration Programs.
“I’m an advocate for expanding community policing programs and integrating local vigilante groups into formal security operations,” he said.
“This will improve intelligence gathering, foster trust between security forces and communities, and ensure a more proactive response to local threats.”
To address the root causes of banditry, kidnapping, and farmer-herder conflicts, he said the government should implement development initiatives that target rural poverty, job creation, and resource management.
“Special focus should be placed on providing education and employment for young people vulnerable to criminal groups,” he said.
“Resolving the farmer-herder crisis requires a combination of short-term security measures and long-term resource management. The government should establish dialogue platforms between herders and farmers and promote sustainable grazing reserves and agricultural policies that reduce competition over land and water.”
On Nigeria’s electric power deficit, he said the electricity supply in Nigeria remained one of the most significant constraints to economic growth as the country’s electricity generation and distribution remain grossly inadequate with several power sector reforms since 1999.
“With an estimated population of over 220 million, Nigeria’s current installed capacity of around 13,000 MW only manages to deliver 4,000-5,000 MW on average,” he said.
“This is far below the demand of over 20,000 MW, leading to frequent blackouts and reliance on expensive diesel generators.”
He said to reduce Nigeria’s power deficit would require a comprehensive approach that addresses generation, transmission, and distribution constraints.
“The solutions involve infrastructure investments, regulatory reforms, increased private sector participation, and the adoption of new technologies such as renewable energy and decentralized systems. By tackling these challenges holistically, Nigeria can significantly improve its electricity supply, support economic growth, and improve the wellbeing of its citizens.”
The former Minister of Power specifically blamed a previous $16 billion power probe for the delay in the execution of some of the reforms in the power sector, claiming that actual spending during his tenure was estimated to be around $2–$3 billion.
He said, “While these reforms laid the foundation for eventual privatization and restructuring, the actual execution of some of these reforms faced challenges, one of which was the undue and unnecessary delays in the implementation of the NIPP and other projects as a result of a phantom $16 billion power probe.
“The claim that $16 billion was spent on the power sector has been repeated without sufficient verification by media outlets and critics, often creating the impression that the money was “wasted” during my tenure.
“However, subsequent investigations have revealed that much of the criticism was based on incomplete or inaccurate information regarding how the funds were managed.
“It is on record that actual spending during my tenure is estimated to be around $2–$3 billion, much of which was targeted toward the launch of the NIPP and other infrastructure upgrades.
“The $16 billion figure has been repeatedly used as a political tool to criticize power sector reforms, but it lacks proper context and a breakdown of actual expenditures.
“Unfortunately, these delays led to huge cost overruns, largely due to inflation and breaches in contract terms caused by the effusion of time. It is important to note that the delays led to at least a doubling of the various contact costs and the overall cost of the NIPP. Furthermore, many of these projects were not completed until several years later and several of them are still ongoing as I speak.
“However, overall, these reforms were instrumental in steering Nigeria’s power sector toward modernization, deregulation, and private sector participation, even though many of the challenges of the sector persist to this day.”
On the way forward in address Nigeria’s power deficit, he called for Expand and Diversify Generation Capacity; Strengthen Transmission Infrastructure; Improve Distribution and Metering; Address Gas Supply Issues; Ensure Cost-Reflective Tariffs; Encourage Private Sector Investment; Improve Governance and Accountability; Leverage Decentralized Solutions; and Enhance Regional Power Integration.
“Nigeria needs to invest in expanding its gas pipeline network, ensuring more stable gas supply to power plants. This will require collaboration between the government and private sector, as well as improving security in the Niger Delta to reduce pipeline vandalism,” he said.
“Significant investment is required to upgrade and expand the transmission grid. This includes the construction of new transmission lines, upgrading existing ones, and increasing substation capacity. The government should prioritize public-private partnerships (PPPs) to mobilize financing for transmission projects.
“The government should review and update gas pricing policies to make them more cost-reflective, ensuring that power plants can access affordable and reliable gas supplies. This could involve revising the domestic gas obligations and introducing incentives for gas producers to prioritize the domestic market.”
On the transitioning to a digital economy he listed notable challenges to include Digital Infrastructure; Digital Literacy Gap; Regulatory and Legal Framework; Access to Finance; and Cybersecurity Risks.
The way forward for transition to digital economy he said will require Government Commitment and Policy Framework; Investing in Infrastructure Development; Digital Literacy and Workforce Development; Support for Startups; Promotion of Fintech and Digital Financial Inclusion; Government Initiatives; Enabling Regulatory Environment.
“Although Nigeria boasts a young and dynamic population, digital literacy remains low, limiting the ability of the workforce to participate in the global digital economy,” he said.
“The absence of robust laws governing data protection, cybersecurity, and intellectual property creates an environment of uncertainty for tech entrepreneurs and investors.
“Many tech startups in Nigeria struggle to access the financing necessary to scale their businesses and compete globally.”
“Partnerships with the private sector and international organizations can enhance STEM education (Science, Technology, Engineering, and Mathematics) at all levels of education and boost training programs for tech and non-tech industries.
“The government should create a more favourable environment for tech startups by providing access to venture capital, tax incentives, and incubation hubs. Partnerships with international tech companies and organizations can further bolster the growth of Nigeria’s digital sector.
“To foster a thriving digital economy, Nigeria needs a modern legal and favourable regulatory framework that supports innovation while safeguarding data privacy and cybersecurity. This is crucial for fostering innovation. Regulatory clarity around emerging sectors like cryptocurrency, e-commerce, data protection, and cybersecurity is necessary to build investor confidence and protect consumers.
“Nigeria’s transition to a digital economy holds immense potential for transforming its economic landscape, creating jobs, and driving inclusive growth. To fast-track this transition, the government must prioritize infrastructure development, digital literacy, favourable regulations, and indigenous innovation. “While challenges such as poor internet access, regulatory uncertainty, and cybersecurity risks remain, the opportunities in fintech, e-commerce, agritech, and digital services present significant growth potential. With the right policies, partnerships, and investments, Nigeria can become a digital leader in Africa.”
