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Nigeria has flirted with energy privatization since the second administration of President Olusegun Obasanjo in the early s. These initiatives were the result of the structural adjustment packages imposed by the World Bank and the International Monetary Fund as the country tried to right itself after the economic horrors of the s and 90s. In August , Barth Nnaji, the minister of power, resigned, and thereafter claimed that the energy sector was not operating cleanly.
Nnaji likely had a point: More important, it was assumed that the Nigerian government would negotiate with the unions allowing for a smoother transition to new ownership down the road.
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This is hardly new territory as far as privatization is concerned, especially in developing nations. The best way to think of CPCS is as a vehicle for transferring indebted state-owned corporations into private hands, often at the encouragement of international lending agencies.
As MHI came under increasing fire from politicians and the media, workers promised to make the environment as difficult as possible for the company. The TCN was one of the final pieces of the Nigerian power sector to be privatized. But most of the local management were not hired by the Canadian consultants.
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They were instead imposed upon them, a setup that appeared to be dysfunctional. This made it very challenging to integrate, and it probably doomed things to fail from the outset. While Manitoba Hydro and its subsidiaries are taxpayer funded entities, they were unwilling to respond to questions regarding their experience in Nigeria. That said, Asante feels that MHI was hard done by. Had there been a bit of political support for them, this might have turned out differently. Oil continues to ooze from the ground in southern villages.
And still, no one has figured out how to keep the lights on. The story w as edited by Lindsay Sample and Daina Lawrence, with fact-checking and copy editing by Jonathan von Ofenheim. A previous version of this story stated that the Mo Ibrahim Foundation is headquartered in Nairobi.
It is in fact headquartered in London, U. Together, we can create a healthier and more inclusive democracy.
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