Within the last four weeks, the Minister of Power Mamman Sale has suspended two top officials of agencies in the Ministry: Damilola Ogunbiyi, managing director of the Rural Electrifiction Agency (REA) and Marilyn Amobi, the managing director of the Nigerian Bulk Electricity Trader (NBET), decisions that may have damaging impact on the sector analysts say.
Some analysts say the removal of both officials and the manner it was done, portends danger for stability in the troubled sector marked by fractious relations between operators and regulators and even the government.
“No significant reasons have been given for the Minister’s request that the two individuals should step aside; although there was the suggestion that the suspensions were occassioned by some alledged infractions and also part of govenment’s broader attempts to resolve some of the issues facing the sector,” said Wolemi Esan, an energy lawyer and partner at Olaniwon Ajayi.
In the case of Ogunbiyi, the Minister did not give reasons for why she was sent on indefinite suspension. Perhaps even more controversial is that she had already turned in her resignation since October accordng to some media accounts citing sources in the REA, and was suspended barely two weeks to the end of her notice period.
According to the press release from the Minister, ‘infractions’ were cited in the suspension of Amobi. But these supposed infractions have been adjudicated by the Nigerian Electricity Regulatory Commission (NERC) and she had been cleared of any wrongdoing.
Amobi was accused of overpaying two power generating plants – Olorunsogo and Omotosho power plants the sum of N2billlion in 2016. “The attention of the Nigerian Electricity Regulatory Commission (NERC) has been drawn to the allegationso f fraudulent payments to the Olorunsogo and Omotosho power plants by the Nigerian Bulk Electricity Trader (NBET) as widely reported in the press and other news media.
“The Commission initiated the conduct of an investigation of the alleged N2billion overpayment by NBET to Olorunsogo and Omotosho power plants pursuant to the powers of the regulator to approve Power Purchase Agreements NBET executes with generation companies and the imperative to maintain the integrity of the electricity market.
“The findings of the Commission’s investigation are as follows: Payments made by NBET to the two Power plants were done in compliance with the NERC TEM Order pursuant to the provision that sanctity of existing agreemnts be maintained,” NERC said.
However, the minister disregarded the Commission’s findings and proceeded to suspend and replace Amobi, a move that clearly undermine the Commission and confirms concerns that the Commission is succeptible to government interference when it should be independent.
“As I see it, it is very doubtful that the suspensions would bring the much needed stability in the power space, on the contrary, it could darken the cloud of uncertainty currently hanging over the sector,” says Wolemi.
It also presents another thorny problem says Esan. “One queries whether the Minister’s suspension of Marilyn Amobi, the managing director of a company incorporated under Corporate and Allied Matters Act (CAMA), is not ultra vires.
“This is particularly in the light of the provisions of CAMA, as well as seminal decision of the Supreme Court in Longe v First Bank, on the satus of a managing director and the process to be followed for the suspension/removal of Managing Directors of entities subject to the provisions of CAMA,” said Esan.
Mamman’s suspension notice to Ogunbiyi has all the ingredients of the bizarre, because government was firing its personnel who had already issued a notice to leave – which has been accepted. But the irony will be lost on those who issued the query much as any hope that the ministry will be better managed. There are fears by power sector operators that the minister with very limited knowledge of the power sector, could worsen problems in the sector through decisions operators say may not have been properly considered.
Ogunbiyi resumes in January as the United Nations representative for Sustainable Energy and CEO of Sustainable Energy for All (SEforAll). As the UN official tasked with helping the world achieve the Sustainable Development Goals (SDSs) and bridge the energy demand gap with affordable, reliable and clean energy, Ogunbiyi would have needed the support of government officials help Nigeria cut energy poverty for over 100million people. This ministerial overreach threatens further cooperation.
Across Africa, nearly 600million people lack electricity access according to World Bank estimation and SEforAll tracking data showed that the world was off the pace to meet the 2030 goal and roll out clean electricity and cooking everywhere.
The organisation’s recent report found that current investments levels were insufficient to meet the SDG goal with less than 1 percent of the estimated finance required to ensure clean cooking facilities for all by 2030.
“Sub Saharan Africa is “at risk of getting left further behind in the energy transition, the report warned as population growth outstripped the increase of energy access.
Nigeria with Africa’s biggest population and the largest number of people without access to energy, it’s tempting to assume the minister’s priority would be to deepen energy access for the people, but more often than not, the actions of government officials make mockery of the sanest of assumptions.
As the managing director of REA, Ogunbiyi successfully negotiated the Nigerian Electrification Project enabling the construction of solar mini-grids across markets and schools and new investments in solar home system solutions.
‘The whole exercise is confounding,” says one official who didn’t want to be named in order to jeopardise relations with the ministry, “In the case of Damilola, the notice seem to have ignored her accomplishments within the sector.”
Before her departure, Ogunbiyi helped Nigeria secure over $300million world bank funding for the off-grid sector and has been instrumental in moving off-grid energy conversations to the front burner of public discourse. It is not clear if these multilateral agencies will continue to deal with the current Minister as the threat of political interference is a prime concern for them.
Ayodele Oni, energy lawyer and partner at Bloomfield Law firm says an implication of these actions is that competent people will be less enthusiastic to join public service. “They will consider the fact that they have a reputation to protect and will not want someone to rubbish them,” Oni said.
