Nigerians will get a good deal with $3bn power sector loan - KEDCO MD
The Federal Government recently moved to massively invest in the power sector with a planned $3 billion World Bank loan to address the liquidity challenges hindering expansion and improvement in the sector’s value chain. In this interview, the Managing Director/Chief Executive officer (MD/CEO) of Kano Electricity Distribution Company (KEDCO), Dr. Jamil Isyaku Gwamna, speaks about the impact this investment could make.
KEDCO’s franchise area is getting attention from the Federal Government, is this deliberate?
I know you are driving towards the FG’s plans to spend N32bn to boost power supply in Kano State, as well as build a quad line from Kaduna, Sokoto and Calabar by the Transmission Company of Nigeria (TCN). The truth of the matter is that the Federal Government has shown very strong commitment in addressing the challenges of the power sector. It is not just about KEDCO or Kano State, it is about the entire country.
On our part, we are also expanding our network base to ensure that when the future we yearn for comes, we don’t remain in the past. We have been maintaining our facilities and procuring more transformers, all in a bid to ensure that the effort of the Federal Government towards revamping the power sector is complemented through timely and efficient distribution of power across our franchise areas.
The World Bank recently approved $3bn loan for the power sector; what is your view about it?
The recent approval of $3bn loan request for the expansion of the power transmission and distribution networks by the World Bank is good for the country. A lot has been said on whether it will materialise on the purpose for which it was sought. Some have expressed doubts in view of the several of such by previous administrations like the $16bn that was all used for personal purposes, and the result is where we are today. So the analysts are only giving their opinions based on experiences which no one can fault them on.
However, I know that this loan will meet the purpose for which it was sought because of the sincerity of President Muhammadu Buhari. Take it from me; Nigerians will get a good deal this time around. I will pitch my tent with those that are optimistic about the prospect of the loan to address some of the challenges for which it was sought.
Recently, KEDCO and a team of Nigerian engineers visited the 10MW Wind Farm in Katsina State. Are there plans for that also?
The idea is about our customers. Whatever we do, we do for our numerous customers in all our franchise areas. In KEDCO, we have been self-configured to think satisfaction only for our customers; and that’s it. The idea is that there is a channel through which power supply can be boosted for the people of Katsina State using alternative energy sources in wind and solar. So what we have in mind is collaboration, and when everything works in line with the plans, everyone will see a positive result.
Would you advise the Federal Government to invest more in renewable energy sources?
Yes, why not? The government is already doing that. The future of power lies in the renewable alternative energy sources which I believe is more economic and do not deplete any resources to create energy. They are generated continuously in nature and are inexhaustible.
I will advise instead that more private partnerships be sought towards harnessing the energy potentialities in these renewable energy sources because government alone cannot meet the demand from Nigerians.
KEDCO just held a reward and recognition award for its staff. Is this a motivational strategy for them?
It’s true that we just held an award ceremony to honour our staff who have performed exceptionally well in their assigned and unassigned duties. But to say we are encouraging internal competition is not totally true. In KEDCO, we see ourselves as a team under one goal and vision; with the support of our key partners, especially our customers.
We are only using the award as a strategy to boost performance; that’s all. If an individual performs to a certain level today and strives to better his performance of yesterday; that is good, and in the end if all the staff do same, KEDCO and our customers would be the winners; that’s the KEDCO spirit.
DisCos have complained severally over poor payment of bills by customers. Does KEDCO experience this?
KEDCO is not an isolated case when it comes to having such issues of payment of bills or other economic sabotage in meter by-pass, illegal connections, vandalism and staff assault. The truth is that we have to develop a thicker skin so that we don’t suddenly go out of business. We all in distribution business almost share the same challenges, but how we solve our problems is personal, and in KEDCO, we are steering our ship well in that direction.
KEDCO has reduced its Aggregate Technical, Commercial and Collection Losses (ATC&CL). How would you sustain this?
We in KEDCO work by target, so I can tell you there is a target. From January, 2019, to date, our ATC&C losses have been reducing steadily from 55.90 to 41.27 per cent as at September. The difference is 14.66 per cent improvement, and hopefully we want to further reduce that to about at least 40 per cent by December this year.
The brain behind this is better billing and collection efficiency. We are growing daily, studying the trend and listening to the demands of our customers. By so doing, we intend to improve on the achievements recorded in 2019 by reducing our ATC&C losses to below 35 per cent with a Collection Efficiency (CE) of over 80 per cent by 2020. So that’s our target and we will get there.
What is the impact of the massive investment in operational vehicles and transformers?
We recently commissioned over 100 operational vehicles and transformers, and more are still on the way. I can tell you that with the level of our preparedness, nothing can take us unawares. We know that what we have invested in this business is all for the good of the power sector in Northern Nigeria that we feed. It is to meet operational needs of our customers and to ensure quick and prompt response to emergency issues by our stand-by teams who are ever at alert to see to the resolution of any fault within a record time for the customers not to be put in pain or at a loss.
You keep referring to customers, why do you prioritise meeting customers’ expectations?
If you don’t value your customers, then you don’t value your business. Any business venture irrespective of the sector is anchored on customers because their attitudes can determine whether you stay in the business or fold up. So with this kind of orientation forming the cornerstone of our operation in KEDCO, nothing could be truer than the fact that we are in business because of our numerous customers, and we are grateful always for their corporation and commitment in the business.
Are the customers aware of KEDCO’s goodwill towards them?
We mean business and we are not taking anything for granted. We have good relations with our customers and they know because we communicate frequently. We do not allow for any communication gap at all.
Recently, we observed the Customer Week between October 1 and 7. The feedbacks we got from them show that we are on the same page; and that will be strengthened going forward.