By Ihechi Enyinnaya
A former Minister of Power and former Governor of Cross River State, Senator Liyel Imoke, stated on Thursday in Lokoja that the alleged expenditure of a phantom $16 billion on the power sector by the Olusegun Obasanjo administration never occurred.
Imoke, who served as Chairman of the Power Sector Technical Board during Obasanjo’s tenure, made these remarks in his keynote address at the 8th Annual Conference of the Guild of Corporate Online Publishers (GOCOP), themed “Nigeria: Tackling Insecurity, Power Deficit, and Transitioning to Digital Economy.”
He acknowledged that the National Electric Power Authority (NEPA) was a monopoly and noted that electricity distribution also faced similar challenges. Imoke pointed to the undue delays in implementing power sector reforms, which stemmed from investigations into the alleged $16 billion expenditure.
“The power sector probe took about two years,” he said. “This delay led to significant cost overruns, doubling the costs of various contracts awarded during my tenure. Many of these projects were delayed in completion. As we speak, several Independent Power Projects (IPPs) are still ongoing.”
He emphasized that the probe ultimately revealed no missing $16 billion but lamented that the allegation had been used as a political tool against government officials.
Imoke identified inadequate information as the root of the allegation, clarifying that during his tenure as Minister of Power, actual spending ranged between $2 billion and $3 billion, primarily directed toward original equipment manufacturers.
The former minister highlighted the challenges of insecurity, power deficits, and the slow transition to a digital economy as significant obstacles to national growth. “These issues hinder our development and make us less globally competitive,” he stated. “By addressing electricity insecurity and advancing our digital economy, we can stimulate economic growth.”
He pointed out that addressing insecurity is crucial to unlocking Nigeria’s potential, noting the rise of insurgency and the emergence of groups like Boko Haram, which later splintered into ISWAP.
Imoke described the pervasive issues of banditry, kidnapping, and armed violence, emphasizing that such crimes have become part of the new reality for Nigerians. He also attributed communal violence to ethnic tensions and highlighted grievances in the Niger Delta that contributed to insecurity in the 2000s.
Discussing organized crime in the Gulf of Guinea and separatist movements in the southeast, he noted that between 2009 and 2020, Boko Haram alone caused over 40,000 deaths.
Imoke listed poverty and unemployment—rising from 6% in 1999 to nearly 40% today—as key factors fueling insecurity, along with weak governance, corruption, and climate change. He expressed concern over the proliferation of small arms and violent crime, exacerbated by desperate politicians supplying arms to non-state actors.
Despite these challenges, Imoke remarked that hope is not lost. He acknowledged the military’s success in degrading Boko Haram and reclaiming territories in the northeast, citing a 23% reduction in insurgency-related deaths according to the Global Terrorism Index. He also mentioned decreased militancy in the Niger Delta and improved oil production.
Imoke outlined several successful initiatives, including anti-piracy measures in the Gulf of Guinea, the arrest of separatist leader Nnamdi Kanu, and enhanced counterinsurgency operations utilizing drone technology. However, he recognized the ongoing conflicts between herders and farmers, which resulted in over 2,600 deaths in 2021.
He advocated for a multifaceted approach to tackling security issues, recommending community policing, the deployment of vigilance groups, and the decentralization of security efforts. Emphasizing the connection between security and the economy, he argued that addressing economic challenges is vital for improving security.
Education, skill acquisition, entrepreneurship training, and rural development were identified as essential for addressing the roots of banditry and conflict. He urged the government to facilitate dialogue between farmers and herders to reduce competition for land.
On the power deficit, Imoke criticized the lack of policy continuity and stressed the importance of building on previous administrations’ work. He noted that Nigeria’s installed power capacity is approximately 13,000 megawatts, with only 4,000 megawatts distributed, despite a potential capacity of 20,000 megawatts.
He shared sobering statistics on electricity consumption, highlighting Nigeria’s per capita usage of 150 to 200 kilowatt-hours per year compared to higher rates in Ghana and South Africa. Imoke lamented the struggles of the power sector despite numerous reforms and pointed to the growing demand for electricity driven by Nigeria’s population growth.
Regarding the digital economy, Imoke praised the growth of e-commerce platforms and emphasized the need for Nigeria to seize opportunities in the ongoing digital revolution.
He concluded by asserting that addressing security, power, and the digital economy is crucial for Nigeria’s growth, stating, “With collective effort, Nigeria can emerge as a global leader. Let us build a secure, electrified, and digitalized Nigeria that fosters prosperity and development for all.”