Dearth of local capacity in power sector worries experts

The Nigerian electricity sector has been described as a priority for the Federal Government due to both the demand from citizens and general economic expectations in the coming years.
Though financing, technology and political-will have a part to play in making the electricity sector more competitive, there is a persistent call for local content development in the industry to secure the benefits of employment generation, cheaper electricity, and real capacity and entrepreneurship development.

With the massive injection of funds expected to accrue from new lines of businesses created by the power sector reforms, the Nigerian Society of Engineers (NSE) has expressed fears that there will be an overwhelming influx of foreign investors and professionals; advocating for preferential selection to be given to companies owned by Nigerian engineering professionals.

The fear however, remains that there is not enough skilled workers and professionals to sustain requisite local content quota in the sector and which will invariably lead to these crucial jobs going to foreign interests; a scenario already being played out in the oil and gas industry.

Bolanle Onagoruwa, director general, Bureau of Public Enterprise (BPE), noted that though the BPE does not discriminate against Nigerians and indeed appreciates the Nigerian capacity, there was a need to engage the right technical expertise to drive the sector.

She said: “We must be able to attract the required technical capacity who can take us from where we are to where we are dreaming to be.” Emeka Ezeh, director general, Bureau of Public Procurement (BPP), noted that an area of worry is the failure of engineers in the system, adding that there is an apparent lack of training programmes and institutions in the country which would ensure that competent local experts are groomed to run the sector.

Ezeh, who was speaking at a meeting in Abuja which also had in attendance Onagoruwa and Barth Nnaji, head of the presidential task force on power, noted that the training school in Lagos for Power Holding Company of Nigeria (PHCN) staff was moribund.

“In the past years there has been no structured training for employees. We don’t have it right now as we speak. There has to be a structured training programme as you recruit from the university so that when you have the company privatised you have Nigerians that can do the job,” the BPP boss said.

According to Olufemi Olaniyan, chairman, Nigerian Institute of Electronic and Electrical Engineers, the Federal Government must ensure that before the influx of foreign investors overwhelms the industry, Nigerians get the utmost benefit from the ongoing reforms in the power sector, adding that regulators needed to mandate foreign investors in the power sector to integrate the Nigerian Content policy for the capacity development of professionals in the country.

“A bid-analysis template should be developed on the basis of which the proposals submitted by the bidders would be analysed and scored. This should include a Nigerian Content scoring criteria of, at least, 20 percent maximum premium,” he stressed.

Nnaji disclosed that government was already working on a partnership with the National Power Training Institute of Nigeria (NAPTIN) that would train competent power engineers.
He said: “You can be sure that the hope of government is to have our people drive the train. We cannot perpetually buy labour from abroad, particularly for the professional level. In the power sector, we should ensure we train those who would be technicians (in the sector).”

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