Housing Minister Babatunde Fashola believes the Federal Government has not been soft on players in the power sector since privatisation in forex trading magazine uk band. I want to correct some assumptions and inaccuracies about the role of the ministry in a privatised power sector.
I think it is important that members of the public should know the true position of things. With a better understanding, you will understand that it is not that I’m handicapped or that I was being soft. I said this because privatisation has brought in some benefits. Some people may ask what such benefits are. In Europe and America when they privatised power and rail, they privatised functional concerns that were operating.
When they privatised British telecoms, it was operating. So, in view of this, the government decided not to spend money on these services for the private sector to manage them. Those are the things that I will get to if you allow me to set that background because I think the most important thing I want to achieve in this meeting is just share information, give you the facts and let you form your own editorial and journalistic opinions. Let me give some examples, Jebba hydro power plant for instance, out of about four turbines, only one was working when the private sector took it over. People steal energy whether you like it or not. But in that picture, are we making progress?
Perhaps it is not quick enough or perhaps also because of our understanding. Maybe our expectations had been set rather high. I think four years of privatisation, is still a transitionary period by any fair right-thinking assessment. No, you have to understand how these things work. I’m only able to say this because of what I have seen and learnt in two years as minister as well as what I have read.
Every electricity utility suffers losses everywhere in the world without exception. What is good practice is to reduce the losses over time. That is why it is difficult to eliminate subsidies completely. It is just like the price of any other commodity that goes up or down.