Bulk trader en­gages firm to re­view elec­tric­ity mar­ket­ing roles

Daily Trust - - BUSINESS - By Si­mon Echewo­fun Sun­day

The Nige­rian Bulk Elec­tric­ity Trad­ing Com­pany (NBET) Plc has en­gaged a con­sult­ing firm, Deloitte Nige­ria, to re­view its or­ga­ni­za­tional op­er­a­tions to fac­tor re­al­i­ties in the pri­va­tized power sec­tor.

Man­ag­ing Di­rec­tor of NBET, Mr Ru­mundaka Wonodi who dis­closed this yes­ter­day while re­ceiv­ing a del­e­ga­tion from Deloitte Nige­ria yes­ter­day at its of­fice in Abuja said, “The industry (power) is open­ing up, and ca­pac­ity build­ing is im­por­tant, work­ing with firms to bet­ter un­der­stand our busi­ness is im­por­tant.”

Al­though Wonodi said there is an ap­proved struc­ture in place when the Bulk The Man­ag­ing Di­rec­tor and Chief Ex­ec­u­tive Of­fi­cer of Cole­man Tech­ni­cal Industry Lim­ited, Mr. Ge­orge Onafowokan has ex­pressed dis­sat­is­fac­tion over the fed­eral gov­ern­ment’s at­ti­tude to­wards lo­cal wires and ca­bles man­u­fac­tur­ers.

Onafowokan, while speak­ing with Daily Trust in Lagos, said lo­cal wires and ca­bles man­u­fac­tur­ers are not pa­tron­ized by gov­ern­ment.

Ac­cord­ing to him, “Pa­tron­age for lo­cal jobs, es­pe­cially from gov­ern­ment, is poor; there is no zeal by lo­cal man­u­fac­tur­ers of ca­bles to look for gov­ern­ment Trader was es­tab­lished, he main­tained that the re­al­i­ties of en­sur­ing a con­sis­tent mar­ket process be­tween the pri­va­tized Gen­er­a­tion com­pa­nies (Gen­cos) and the Dis­tri­bu­tion com­pa­nies (Dis­cos) calls for the re­view to take in clear tar­gets and or­ga­ni­za­tional roles.

NBET in­cor­po­rated in 2010 buys power through a Power Pur­chase Agree­ment (PPA) with Gen­cos and re­sells to Dis­cos through the vest­ing con­tracts. It is po­si­tioned as a credit-wor­thy agency with over $800mil­lion cap­i­tal­iza­tion fund to sta­bi­lize elec­tric­ity trans­ac­tions.

“Deloitte is help­ing NBET in re­view­ing our organogram to bet­ter po­si­tion the com­pany to de­liver its man­date and pa­tron­age be­cause you can­not give any guar­anty of pay­ment.”

He said Cole­man has man­aged to grow its busi­ness to be the largest wires and ca­bles com­pany in the West African coast with qual­ity, stan­dard and timely de­liv­er­able of ca­bles and wires.

“I have been to a fac­tory out­side this coun­try that had a job guar­an­teed for three months. It was fully booked do­ing gov­ern­ment jobs be­cause gov­ern­ment was ex­pand­ing. It is sad when you see im­por­ta­tion of ca­bles done at zero duty to sup­port our power projects, while lo­cal cable com­pa­nies in the coun­try are ig­nored.”

Onafowokan noted

that meet with re­al­i­ties in the present elec­tric­ity mar­ket. “Un­like most com­pa­nies in the elec­tric­ity sec­tor, we do not hold phys­i­cal as­sets but peo­ple, to uti­lize that hu­man as­sets, the organogram be­comes crit­i­cal,” he said.

On the se­lec­tion of Deloitte, NBET said it opened a bid ses­sion of which the firm emerged for the project among other bid­ders in­clud­ing KPMG and PWC. Wonodi who expects a sig­nif­i­cant im­pact of the re­viewed struc­ture said, “Once we have this struc­ture, we can now ef­fi­ciently eval­u­ate and ap­praise per­for­mance within one to two years.

“There is some sort of in­ter­nal mea­sure­ment sys­tem to eval­u­ate the strat­egy and al­most ev­ery Nige­rian know that made-in-Nige­ria ca­bles are bet­ter than the im­ported ones as the stan­dard and qual­ity of lo­cal ca­bles are high.

The wires and ca­bles manufacturing boss said the vi­sion of the com­pany is to make Cole­man a ‘one-stop­shop’ for a va­ri­ety of wires and ca­bles in West Africa.

Speak­ing on the reper­cus­sion of this on the Nige­ria econ­omy, he said un­em­ploy­ment would per­sist if gov­ern­ment at­ti­tudes to­wards lo­cal pro­duc­tion did not change.

“If gov­ern­ment can pa­tron­ize lo­cal pro­duc­tion, it will cre­ate more jobs for cit­i­zens and it will be eas­ier for us to do our pe­ri­od­i­cally as the Board deems, they may de­cide if they should get ex­ter­nal firm to as­sess the roles be­ing played in the or­ga­ni­za­tion,” he ex­plained.

Leader of the del­e­ga­tion and Man­ag­ing Di­rec­tor, Deloitte Africa, Mr. Thiru Pil­lay said the au­dit and financial ad­vi­sory firm which has pres­ence in 15 African coun­tries has over 6,500 staff. He noted that the key to or­ga­ni­za­tional suc­cess lies on the need to have good strate­gies and also ex­e­cute them well say­ing, “A good plan poorly ex­e­cuted is the same as a bad plan.”

He com­mended NBET for the re­view say­ing suc­cess­ful firms are those who re­view their op­er­a­tions to ab­sorb re­al­i­ties in their sec­tors. busi­ness. We’ve done some oil & gas projects for the pri­vate sec­tor who are driv­ing our busi­ness. But the gov­ern­ment is not. The gov­ern­ment should be able to drive the cable industry. To­day, Nige­ria with huge pop­u­la­tion, should have noth­ing less than 40 cable com­pa­nies if gov­ern­ment is do­ing it right,” he said.

The Ex­ec­u­tive Di­rec­tor of the com­pany, Mr Oluse­gun Onafowokan, dis­closed that the com­pany would com­mis­sion a new plant in the north­ern part of the coun­try be­fore the end of the first quar­ter of 2016. It al­ready has plants at Arepo1, Arepo 2, Sagamu 1 and 2 in Ogun State. As Nige­ria joins the world to mark the World En­ergy Day to­day, the Nige­rian As­so­ci­a­tion of En­ergy Eco­nom­ics (NAEE) has ad­vised the present ad­min­is­tra­tion to in­crease ef­forts to un­lock the nu­mer­ous po­ten­tials for the de­vel­op­ment of so­lar, hy­dro and wind en­ergy.

The as­so­ci­a­tion made the call yes­ter­day at a press brief­ing in Abuja as part of ac­tiv­i­ties to mark the day. This year’s cel­e­bra­tion is cen­tred on the theme “En­ergy Ac­cess”.

The NAEE noted that great op­por­tu­ni­ties ex­ist in re­new­able en­ergy in off-grid area, new bio­fuel op­por­tu­ni­ties, en­ergy stor­age de­vices, dis­tri­bu­tion sys­tems and new trans­port mod­els.

The pres­i­dent of the as­so­ci­a­tion, Pro­fes­sor Wumi Iledare lamented that a large pro­por­tion of Nige­ri­ans still don’t have ac­cess to mod­ern en­ergy, while avail­abil­ity and qual­ity re­main ma­jor con­cerns for those with ac­cess.

Prof Iledare in his speech, which was read by the im­me­di­ate past pres­i­dent of the NAEE, Prof Ade­ola Adenikinju said se­ri­ous en­ergy poverty con­tin­ues de­spite the huge in­vest­ments in the en­ergy industry and the coun­try’s vast and var­ied resources.

He iden­ti­fied en­demic and sys­tem cor­rup­tion, poor main­te­nance, in­ad­e­quate gas sup­ply, trans­mis­sion in­fras­truc­ture, and in­con­sis­tent gov­ern­ment pol­icy as some of the rea­sons for the poor state of elec­tric­ity in Nige­ria.

“Un­til we are able to re­solve the huge elec­tric­ity deficit of the coun­try, huge po­ten­tials of the econ­omy would re­main un­tapped and un­avail­able to cur­rent and fu­ture gen­er­a­tions,” he stressed.

As part of so­lu­tions to the en­ergy prob­lem, the NAEE called on the present gov­ern­ment to adopt the pol­icy frame­works de­vel­oped by the En­ergy Com­mis­sion of Nige­ria and pro­vide the leg­isla­tive back­ing for them.

The NAEE, through the World En­ergy Day, is pro­vid­ing a fo­rum for schol­ars, pol­icy mak­ers and industry prac­ti­tion­ers to high­light and dis­cuss pol­icy op­tions to ad­dress en­ergy chal­lenges. It has out­lined a num­ber of ac­tiv­i­ties to­day, in­clud­ing pa­rade and speeches by rel­e­vant en­ergy or­gan­i­sa­tions.

From right: Mr. Ele Peters, Chief Ex­ec­u­tive Of­fi­cer, Clovers Nige­ria Lim­ited; Mrs. Mary Akpobome, Ex­ec­u­tive Di­rec­tor, Her­itage Bank Lim­ited; Mr. Ahonsi Unuigbe, Chief Ex­ec­u­tive Of­fi­cer, Pe­tralon En­ergy; and Umar A. Mustapha, Chief Ex­ec­u­tive Of­fi­cer, Mo­mar En­ergy Trad­ing Lim­ited, at a din­ner spon­sored by the bank dur­ing the just con­cluded 21st Nige­ria Eco­nomic Sum­mit Group in Abuja re­cently.

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