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© Nigerian Army Quarterly JournalPublished by Institute of AmlY Education, Ikeja Milital)' Cantonment,

PMB 21109, Ikeja, Lagos. Tel. & Fa" 01-7227026

E-Mail: hqiae@yahoo.com

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Designed & Printed by MEGAVONS (WEST AFRICA) LTD. Onipanll. Lagos. -';'1: 01-8181860

THE NIGERIAN ARMY QUARTERLY JOURNAL

Yol. 2 \.-,_::: ISSN: 0794-8201

Pages

Editorial AdvisoryBoard iii

Instructionsfor Contributors IV

Editorial Comments. VI

Military Applications of Geographical Information 115System: Opporttmities for The Nigerian ArmyBy Lieutenant Colonel Benson Ikechi Ezeh

Socio-Economic Impact of Market-Driven 131Research And Development in NationalSecurity And GrowthBy Dr. 0 B C Nwolise

Evolution And Issues of Peace Support Operations 155By Dr. I S Zabadi

ECOWASParliament And Conflict·Management 174in West Mrica

By Dr. Isaac Olawale Albert

Logistics for The Nigerian Armed Forces 197By Major General J Aondo

Effect of Energy Crisis on Nigerian Economic 211Transformation and Growth Process ­

The Way ForwardBy D" Uche C C Nwogwugwu

THE NIGERIAN ARMY QUARTERLY JOURNAL

Vol. 2 No.1

EditorialAdvisoryBoard

ISSN: 079 .•-3201 March 2006

Pages

ii

Instructions for Contributors

Editorial Comments

iii

v

Defence Budgeting and TIle Economics of ShipP~ocu~ement and Maintenance in TIle Nigerian NavyBy Engineer Rabiu Musa Kwankwaso, FNSE

EtImic Militias, National Security and The Role of 22The Nige~ian A~med Forces in A Democracy:The Niger Delta Crisis in Pe~spectiveBy Brigadier General J 0 Olorunfemi, Dss

Gulf of Guinea: A Growing Strategic Proftle 39By Dr. L 0 CAnene

The Nigeria Police in International Peace~KeeIJing: 52An Explo~atory Study into Contributions andP~oblems, and Strategisillg for the FutureBy Colonel M G Mustapha

Resolving the Darfur C~isis:The Inevitability of 67United Nations Peace-Keeping Force in SudanBy Dr. Osisioma B C Nwolise

Towa~dsAn Agenda for Peace and Security in Africa 91By Dr. Charles Dokubo

ii

Editorial Advisory BoardMajor General 0 I Williams (rtd)Major General A A Mshelhwala (rtd)

Major General J W T Ghar (rtd)

Prof Adigun Agbaje, Professor of Political Sciene", Irzirersity of Ibadan.

Dr Sunday 0 Ochoche, Director General, Irz.slltC:' .: Polic," and Conflict

Resolution, Abuja.

Editorial BoardEditor in ChiefBrigadier General] 0 OIomnfemi. C~,rr;;'Tkmfiiln1 •. '-igerz"an Ann." Educalwn

Corps and School.

EditorColonel M 0 Ideh. Director. Institute of.4rmy Education.

Editorial Members

Colonel 0 0 T I.iraoje. Representative, Training and Doctrine Command,Nigerian Arm):

Colonel 0 Adebayo, Representative, General Officer Commanding 82

Division, Nigerian Army.

Colonel L W Wiwa, Representative, Directorate of Military Intelligence,

Nigerian Army.

Coopted Editorial MembersColonel M I 1siga, Chief Librarian, Nigerian Army Library Service.

Colonel M D Bolarinwa, Chief Research Officer, Institute of Army Education.

Lieutenant Colonel B I Ezeh. -Senior Research Officer, Institute of ArmyEducation.

Editorial/Ex-officio MemberColonel B Y Bukar, Representative, Department of Army Policy and Plans.

Secretary, Editorial BoardMajor A D Olaitan, Research Officer, Institute of Army Education.

Editorial ConsultantsLieutenant Colonel L F Abudullahi Ph.D, Commandant, Command

Secondary School, Kaduna.

Dr Adedoyin J Omede, Senior Lecturer in Political Science, University offlorin, florin.

Dr Osisioma B C Nwolise,Senior Lecturer in Political Science, Universityof Ibadan, Ibadan.

iii

I:\STRUCTIONS FOR CO:\TRIBUTORS

The Editor will be pleased to con;ider article-length submissions

of scholarly research, critical <iIL.-lI~-si~ d.l1d ~peculative studies in

defence, peace, conflict, science J,nd technqlogy. The criteria for

acceptance of an article are excellence' I)f research and of writing.

Submitted articles for publication should be in hoth hard and soft

copies for ease of editing. A.ll article; fomarded for publication must

confonn with the standard and regulations spelt out below.

The journal will publish articles not previously published or

submitted for publication and authors will not publish elsewhere a

paper submitted to and accepted by the journal. Authors will usually

be notified of acceptance, rejection, or need for revision.

The manuscript should be in English and not exceed 20 pages

quarto sized paper. To simplify communication across disciplines,

jargon should be minimized. Submit three douhle spaced throughout,

including tables, legends, and citations. Size preferred is Sl/z x 11 It.

Pages should be numbered consecutively, including the title page.

(Manuscript are generally not returned).

Along with the title of the article, the author's name and address

should be written. In the cases of co-authors, respective addresses

sbould be clearly indicated, as well as which author is to receive

correspondence.

The essential contents of each paper shollid be briefly stated in

an abstract following the title page.

Tables should be submitted on separate sheets of paper, be

numbered consequently, and should have information titles. Their

positions in the manuscript should be indicated.

The cndnote system of reference (1hrabian style) is used in this

journal e.g.

The Nigerian Army has proven once again ... that theECOMOG experiences was a platform which the NA

showcased its military prowess as a "giant of Mrica"and "a regional policeman" was never in doubt. I

iv

The full reference should then be typed at the end of the article

to confonn with the numbering in the text - according to the following:

1. Omede A. 1. (2004) in, Gbor JWT (ed.,) TheNigerian Army in Global Security, Lagos: Megavons(West Mrica) Ltd. p. 218.

Authors of accepted articles are entitled to complimentary copies'of the issues in which their articles appear and a total sum of tenthousand Naira only as research grant.

Manuscripts submitted for publication and all editorial inquiriesshould be directed to the Editor-in-Chief, The Nigerian ArmyQuarterly Journal, Institute of Army Education, Ikeja MilitaryCantonment, PMB 21109, Ikeja, Lagos, Tel. & Fax: 01-7227026.

NOTE

The views expressed in the articles and other contributions which appear in tbis Journal arethose of the individual authors and should not be interpreted as the views of the Nigerian Army,

the Editorial Advisory Board, or the Editorial Committee.

EDITORIAL COMMENTS

Energy, Logistics, Science and Technology coupled with

Research and Development (R & DI clre the key areas in this editionof the Nigerian Army Quarterlv Journal (NAQJ). The clam our forenhanced professionalism in the military informed our choice of topics

anchored on sciencc and technology. The realisable goals and benefitsof R & D on national growth and its impact on security were also

given worthy considerations among the articles presented.

First is Lt. Col Bl i::zeh's work titled 'Military Applications ofGeographical Information System: Opportnnities for theNigerian Arm~·.' The paper adequately justified the extent of theuse of GIS generated data in planning range of activities during militaryoperations that are Land, Sca and Air based. Closely related to thisarc the pieces from Drs O.B.C. Nwolise and V.C.C. Nwogwugwurespectively. The former traced the origins, analyscd the usefulnessand categorically placed Research and Development in the upperechelon of national development priority scale. It is titled 'SocioEconomic Impact of Market-Driven Research andDevelopment in National Security aud Growth.' The latter istitled 'The Effect of Euergy Crisis On Nigerian EconomicTransformation and Growth: The Way Forward.' This dwelt onthe intricacies of energy crisis in Nigeria which centres upon disruption

in supplies and rapid increases in price wit~ attendant repercussions

on socia - economic and political security of the nation.

In 'Logistics for the Nigerian Armed Forces,' Maj Gen JAondo laments the absence of much needed technology base toproduce most of the equipment, amlS and ammunition the countryneeded. He highlighted the problems of uncoordinated logisticsprocurement, the weak infrastructure base and lack of supportivefacilities. Hc concluded with some useful submissions that could take

the Armed Forces out of the woods of logistics logjam.'Evolution and Issues of Peace Support Operations'

contributed by Dr. IS Zabadi traced the origin of this phenomenon inworld peace initiative. He made a careful analysis of the concept, itscoverage, its successes and shortcomings for an interesting readingon the subject. Almost identical to this is the piece from Dr. 1.0.

vi

~-<--1\10 IDEHColonelEditor

Albert titled 'ECOWAS Parliament And Conflict ManagementIn West Africa.' The don traced the ~fforts of ECOWAS at peacebuilding in the sub-region and concluded ,hat its Parliament has notdone much as expected in this direction. The reasons for thisshortcoming were identified as the financial an,:: political freedomthat the body lacks. He recommended ways by which the parliamentcan he autonomous for more active and effective roles" pcrfonnance.

This second edition in the year can therefore be descriLed as acareful blend of research works on science, political economy dnd

military logi5tics all combined to give our numerous readers a

balanced view on security and national development issues. It shouldbe reiterated that all views and opinions expressed are those of theeontributors.

I wish you all happy reading.

vii

THE EFFECT OF ENERGY CRISIS ONNIGERIAN ECONOMIC TR...\.l,,"SFORMATION

AND GROWTH PROCESS:THE WAY FORWARD

By

DR. UCHE C C ltTOG1rUCtJ'l'

Department of Economia. Nruundi Azikiwe University.Awka.

ABSTRACT

Energy is the basis of industrial civilization;witllout energy, modern life would cease to exist.Without electricity, for example, no country canreally be industrialized. Energy crisis is tIlereforea situation in which tile nation suffers from adisruption of energy supplies accompanied byrapidly increasing energy prices, t1lat t1lrealeneconomic and national security. The threat toeconomic security is represented by thepossibility of declining economic growth,increasing inflation, rising unemployment, andlosing billions of naira in investment. TIle paperraised an optimism of possible industrialrejuvenation if and ouly if the energy sector isgiven the necessary boost. But tile question isthat how soon will that time ever come underthe present dispensation?

Keywords: Electric PowerSector,Energy,Nigerianeconomy,Strategy.

INTRODUCTION

Energyis the basis of industrialcivilizationand withoutenergy,modemlife wouldcease to exist. Withoutelectricity,for example,no

211

T_ll{~ An.y~J-..iI _

country call really develop or be industrialized to say the least. IJ.iIwthe 1970.. the world began a painful adj\Istment to the ~of """'!Y supplies. In the long run, conserving en"'llY reSOUICel•••provide the time needed to develop new sources of energy, sudo _hydrogen fuel cells, or to further develop alternative en"'llY S<lUI'<leL

such as solar energy and wind energy. While this development •••••••however, the world will continue to be vulnerable to disruptions ill .­

supply of oil, which, after World War II (1939-1945), became _most favoured energy source.

The threat to economic security is represented by the ~of declining economic growth, increasing inflation, risi~unemployment, and losing billions of naira in investment. A~to A1haji and Williams:

Wood. was the first and, (or most o( hnmanhistory, the major source o( enel'8)". It wureadily 1i¥liiIable, becaDBe extenBive (orellfll fP'CW

in many parIB o( the world _d the amount ofwood needed (or heating and cookingwasrelatively modest. e•••.•ain other energy 8ODrceB,(ound only in localized are ••• were aIBo UBed iaaneient times: asphalt, coal, and peat (ro ••surface deposits and oil (rom seepages o(underground depoBil8. J

This situation changed when wood began to be used duri~ _Middle Ages to make charcoal. The charcoal WBJI heated with -.tillore to break up chemical compounds and free the metal. As f_were cut and wood supplies dwindled at the onset of the IndustrialRevolution in the mid-18th century, charcoal was replaced hy .,.(produced from coal) in the reduction of ores. Coal. which also bepIto be used to drive steam engines, became the dominant energy llOUIClI:as the Industrial Revolution proceeded. Here in Nigeria, wood isstill being relied upon as a primary and regular source of cookUIsenergy especially in the suhurban and rural areas. Thou~ tbeecological and environmental impact is not sustainable, n~ serato be done to ameliorate the nuisance which of course constitutes •

212

_________ 1''''' "Jfod "'~Crifto ••••NiBori- " ••••••••

crisis.2

Although Cor cenhlrie5 petroleu. bad been used in smallquantities CorplJ1'llll6e&as diverse as ~ ...d ship caulking, themodem petroleum era began when a ~ well was broughtinto production in Pennsylvania in 1859. 110eoil industry in the UnitedSlales expanded rapidly as refmeries spr...,; up 10 BIlIkeoil productsfrom crude oil. The oil companies soon ~ ~ their principalproduct, Item- - used for lighting - to all parts <Ii \be world. Thedevelopment of tbe iitternal-combustion engine and \be automobileat the end of the 19th century created a vast new market for anotbermajor product, guoline. A third major product, heavy oil, began toreplace coal in some energy markets after World War II.

The major oil companies, which are based principally in theUnited Slates, initially found large oil supplies in the United Slates.As a result, oil companies from other countries - especially Brilain,the Netherlands, and France - began to search for oil in many partsof the world, especially the Middle East. The British brought the firstfield there (in Iran) into production just before World War I (1914­1918). During this World War I, the U.S. oil industry produced two­thirds of the world's oil supply from domestic sources and importedanother one-sixth from Mexico. At the end of the war and before the

discovery of the productive East Texas fields in 1930, howeveG theUnited Slates, with its reserves strained by the waG became a net oilimporter for a few years. .

During the next three decades, with occasional federal support,the U.S. oil companies were enormously successful in expanding tothe rest of the world. By 1955 the five major U.S. oil companiesproduced two-thirds of the oil for the world oil market (not includingNorth America and the Soviet bloc). Two British-based companiesproduced almost one-third of the world's oil supply, and the Frenchproduced a mere one-fiftieth. The next 15 years were a period ofserenity for energy supplies. The seven major U.S. and British oilcompanies provided the world with increasing quantities of cheapoil. The price of oil at that time was about a dollar per barrel, andUnited States of America was largely self-sufficient, with its importslimited by quota.

213

The Nigerian Army Qoorterly Journal _

='igeria on her own part got her fi",t oil in commercial quantity

in 1956 at Oloibiri in the present Baveha State of Nigeria by the

vel!· efforts of Shell Petroleum Development Company (It is interesting

to note that that particular well soon got dried up). The exploration

and exploitation of more oil in '\igeria was almost silent until 1973

when the whole world was fi",t exposed to oil related energy crisis.

The Emergence of Gas in Nigeria

The production of natural gas in Nigeria is incidental to oil

production, but observations have shown that Nigeria is perhaps richer

in natural gas than even in oil. This was captured by the statements

of a former Managing Director of Shell Petroleum Development

Company in 1980 when he said that the country is "a gas province

with a bit of oil in it. .. In oil equivalent terms we have discovered

more gas than oil, even though we have not begun looking for gas

yet.'" The nation's proven natural gas reserves are abundant: some

2,600 billion cubic metres. Of this tremendous quantity, only 20

billion cubic metres or thereabout is produced annually. Less than

ten percent of this annual production figure is utilized, while the

remaining percentage being deliberately flared as constituting a

nuisance in oil exploitation operations.4 Though in the present, perhaps

following the current urgent need to ameliorate energy crisis in Nigeria,

policy efforts have focused on gas 'turbine' to' augment other sources

of electricity.

Coal

Coal was discovered in the Enugu area in 1909. Production

started in 1915. Later, it was discovered in other parts of Enugu

State, Benue and Plateau States. Nigeria has well over 1.5 billion

tones of coal, out of which only 25 million tones or less than two

percent has been mined. At a production rate of five million tonnes

per annum, the present proven reserve of 639 million tones will last

the next 128 years while the nearly one billion tones (from inferred

calculations) may last the next 200 years.

In addition to coal, which is mostly of the bituminous variety,

large quantities of lignite sometimes referred to as brown coal exist

214

___________ The Effect oj Energy Cri!lis on Nigerian Economic...

in the Nigerian States of Anambra, Delta. Edo, Benue and Imo. Theexploitation of the lignite has not "et commenced. Its reserves maywell parallel those of coal.

The production of coal in Nigeria has fluctuated wildly, varyingfrom over one million tonnes per annum in the best of years to nearzero tonnage in the worst of years, :\rnoog the many causes of thesefluctuations has been the rise of petroleum and natural gas both asforeign exchange earners and as sources of domestically utilizedfuel. The low productivity of coal have been traced to the followingfactors:

**

The civil war in Nigeria;

The 'dieselization' of the Nigerian railway system;

* Drastically reduced international demand for the commodity;

* Obsolescence of equipments;

* Shortage of operating capital and non inflow of direct foreigninvestment in the sector;

* Loss of interest by government in the sector; and theirinability to originate effective policy; and

* Low linkage/integrative effect of the commodity and theabsence of technology to explore such a possibility.

Given these problems the role coal played in the energy sectorwas relegated to the background"

THE ENERGY CRISIS: A WORW OVERVIEW

The year 1973 brought an end to the era of secure and cheapoil. In October, as a result of the Arab-Israeli War, the Arab oil­

producing countries cut back oil production and embargoed oilshipments to the United States and the Netherlands. Although theArab cutbacks represented a loss of less than 7 percent in worldsupply, they created panic on the part of oil companies, consumers,oil traders, and some governments. Wild bidding for crude oil ensuedwhen a few producing nations began to auction off some of their oil.This bidding encouraged the OPEC nations, which numbered 13, toraise the price of all their crude oil to a level as high as eight times

215

n.. N~'" A•.••r Q-urlr 1 _

that of a few years earlieo: The wodd oil &CelIe~y calmed, ••a worldwide recession broullbt on, in part by the higher oil pricestrimmed the demand for oil.· In the meantime, most OPEC

governments took over ownership of the oil fidds in their countries.In 1978 a second oil crisis be~ when, as a result of the

revolution that eventually drove the Shah of Iran from his throne,Iranian oil production and exports dropped precipitously. Since Iranhad been a major exporter, llOI1SUIDCI'S ~n panicked. A replay of1973 events, coupled with wild bidding, again forced up oil pricesduring 1979. The outbreak of war between Iran and Iraq in 1980gave a further boost to oil prices. By the end of 1980 the price ofcrude oil stood at 19 times what it had been just ten years earlier.

The very high oil prices again contributed to a worldwiderecession and gave energy conservation a big push. As oil demandslackened and supplies increased, the world oil market slumped.Significant increases in non-OPEC oil supplies, such as those in theNorth Sea, Mexico, Brazil, Egypt, China, and India. pushed oil priceseven lower. Production in the Soviet Union reached 11.42 million

barrels per day by 1989, accounting for 19.2 percent of worldproduction in that year.

Despite the low world oil prices that have prevailed since1986, concern over disruption has continued to be a major focus ofenergy policy in the industrialized countries. The short-term increasesin prices following Iraq's invasion of Kuwait in 1990 reinforced thisconcern. Owing to its vast reserves, the Middle East will continue tobe the major source of oil for the foreseeable future. However, newdiscoveries in the Caspian Sea region suggest that countries such asKazakhstan may become major sources of petroleum in the 21stcentury.

Nigeria's proven oil reserves are close to 3 billion tonnes orover 19 billion barrels of "flowing" oil. The non-flowing or 'trapped'petroleum consists of vast quantities which are left over after themore readily accessible oil has been pumped out. Trapped in rockpores and cracks, the amount of oil involved may range up to 50 or60 percent of the original gross oil deposit estimates. As oil recoverytechnology improves, Nigeria is certain 10 succeed in extracting moreand more of this trapped oil." As at 2002. Iotal oil. produced in Ni.geria

216

__________ T••• E/f«. ofE,..,,1JYtn.u Oft IV,..,. _

was 685,773.0 million barrels. from this total, 521,973.0 was

expoJ1ed while 163,800.0 was the worth of domestic consumption.

ENERGY· CRISIS: THE N1GEIUAN EXPERIENCE

The Arab-Israeli war that led the Arab Oil producing countriesto cut back oil supplies slaJ1ed the ~ crisis at ~obal levels. ToNigeria, the unexpected surplus from the 8Uqle in oil prices in 1973- 74 genernted substantial funds for the government and that broughtabout large-scale direct investment in a long list of industrial venturesin which neither the government that made the investment nor theeconomy had any experience in implementing.7 No official effoJ1swere directed towards lifting the energy sector from the levels colonialmasters left it despite the huge funds inflow. In fact it genernted whatis known in energy/economic circle as "Dutch disease,"

The energy crisis that ensued in Nigeria thereafter was notaddressed on a sustainable basis. Rather government. at the timewith her. multinational corporntion collaborntors pennilled excessiveimpoJ1ation of electricity generating sets of all sizes from Japan.Despite all these, the gap between supply and demand of energy tovarious facets of human activity· remained to this day unbridged. TheManufacturers Association Of Nigeria (MAN) in her semiannuallyeconomic reviews (1995-1999) observes that there is no facet ofthe national economy that has not been adversely affected by theenergy crisis but the worst hit is "the main engine of economic growthand progress" - the manufacturing or industrial sector.8 The sectorhas suffered the greatest set back yet modern economy is indexed onthe manufacturing sector.

The observed unimpressive industry performance was attributedmainly to the energy crisis that has almost become the character ofNigerian economy. Episodes of energy crisis in Nigeria, includesscarcity of diesel (AGO), Low Pour fuel Oil (LPFO) white oil, andkerosene needed by industries either as motive force to fire theirgenerntors and tutnine or as input to production. This led to a situationwhere the operntions of companies were interrupted intermillentiy orcompletely put on hold in some cases. The situation was compoundedby the viJ1ual "collapse" of power supply by NEPA now Power Holding

217

The Nigerian Army Quarterly Journal _

Company Of Nigeria. (PHCN). At the sar..t time, the scarcity ofpetrol (premium motor Spirit) hampered not onl~ distribution of goodsbut also the ability of workers to report for duty as commuter movementwas seriously paralyzed. The net efie.'t 0: these unfortunatedevelopments was to aggravate the sales difficulties that industrieshave been experiencing in recent years due to """eak consumerpurchasing power. The lingering problerru; of 10"-capacity utilizationhave thus been exacerbated as a result. (~ Table 1).

Table 1

Nigeria'. AverageManuf-.... e..-;ty UIiIioodionKales (Seleeted years1975.2003)

Sub-oeetor 197519801985199019952000200120022003

Meat&DoiryProdaeto

37.824.112.743.251.454.30.0

Vegetable & Grain

84.551.225.040.416.839.243.245.8

Bakery Product

66.474.442.742.319.130.154.360.643.0

Sugar Ccx:oaConfectionery

54.331.642.618.331.035.624.533.1

Miscellaneous Food Preparation

82.4.22.535.8-39.245.250.854.0

8eer&Slou'

76.091.959.059.231.949.454.656.356.7

Soft Drinks

-72.527.747.041.527.040.244.446.5

Textiles

79.784.444.652.244.321.431.835.534.6

Knitting Carpet & Rug

27.623.131.235.842.145.8.7.0

Leather Footwear

77.278.425.553.027.637.936.731.828.0

Saw Milling

37.564.533.5 23.122.930.7.0.0

Wood & Cork Products

72.268.3 43.826.835.940.90.0

Leather Footwear

22.036.635.20.00.049.737.5

Saw Mitling

58.767.628.634.135.425.127.123.744.1

Wood & Cork

45.344.237.838.045.647.444.4

Printing & Publishing

80.853.260.549.130.451.867.557.4

Basic Industrial Chemical Paints71.037.434.031.747.'049.236.654.3

Drugs & Medicine

34.744.139.938.640.839.241.5

218

___________ The Effect of Energy Crisis on Nigerian ECOIIOIa6C-

Soap & Perfumes 64.032.5 1+8·835.345.648.242.144.4

Other chemicals &

I

Petroleum Products39.1 149.4 '29.4

46.847.654.423.8

Tyres & Tubes

36.1 157-231.832.838.423.8

Plastic Products

69.874.139.9 149.528.345.147.738.751.1

GI••• & Glass Products

31.0; -, 33.042.344.948.359.6

Cement & Cement Products

71.846.335.649.148.861.737.5

Basic Metal Industries

72.466.6 15.025.60.00.080.080.0

Structural MetalProducts

-37.228.140.00.00.039.935.9

Fabricated Metal Products

31.633.628.347.158.760.237.9

Radio, T.Y.&Communication"JUipmeuts

100.043.333.942.329.836.735.639.633.5

Motor Vehicle Assembly

84.088.526.127.935.141.94'1.432.827.7

Roofiug Sheets

47.839.80.00.00.0

Wine. Spirits &Distilleries

-- 35.60.00.041.4

Average Utilized Rates(%)

76.670.138.340.329.336.142.744.341.1

Souree: Central Bank or Nigeria, SIa\iatieal Bulletiu. Vol. 14 Dec. 2003

Nigeria is described as a storehouse of energy. Thble 2 providesinformation on the quantum of the deposits of some of these primaryenergy resources in Nigeria while '!able 3 presents some data on therate of energy consumption in the country.

219

no1'1•••••• ..,.~Jm __ •....•--,-""-----------

T•••••2

~ •• ~ EnerwY Depooit8

Raene7Av •••••T••••~~- Vaile .f~R_RIIlio orJUlio of'moo

MellRlftlJlelllConlentF..otwR••••••••T••••(KJ)

e-_(KJ)Oil (Ok)R•••••••.•••(Ok)

Cool

650(short Ion)22.7.10'14.75. 10"1I.23.86

Gas

3.615.10"38.55.10'139.4.10"105.936.49

Crude Oil

3.42.10' M'38.48.10'131.6.10"100.034.45

Hydro

31.5. 10"

kwf>.IOOyrs

3.6.10'Il.34sIO"8.62.97

Sol••.

180 sIO"kwh-loo

,3.6.10'64.8sl0"15.25.26

Woodfuel

25ynavailable KJ

2.2.IO'v ••••2O.075sIO"15.25.26

Souree: A~I~ and Seriki (eds.) EnersY 1_ iD Nft!eria. 1991.

Due to lack of any reliable data, the Tables do not includestatistical infonnatioil on the extensively utilized non-commercialene~ fonns. A critical analysis of Table 2 and 3 shows that Nigeria'spriniary energy resources endowments are in excess of its domesticelectric energy requirements such that it should not experienceelectricity inadequacy at all but the .institution responsible forproviding electricity energy have signally proved ineffective. Withthis inference given, the degree of the technical operations relatingto the generation capacity, transmission and distribribution, emanatingfrom the abundance of primary resources deserve someinvestigation. Table 4 presents some infonnation on Nigeria'selectricity plants capacities while Table 5 shows the quantum ofelectricity output vis-a-vis the levels of supply and distribution. Totalinstalled capacity from thermal (gas and steam) and hydro electricitytechnologies as at 1999 was 5,860 mw out of which about 5,400 row(92.2%) constituted available capacity while the effective capacity,was 1600 mw (27.3%). The transmission grid consisted of about5,000 of 330 kv lines and also about 6,OOOkmof 132 kv lines which

were heavily loaded.

220

.•••••••3:Eneqy Consumption in Nifleria (T- .e-i•...•••••.••.tee)

E-wY1YPe •••••199219931'"41M.1_1997199.1999

CaoI (10 +ee

0.1371.842.8312.9':16.5117.0117.719.8511.25

%.hare

0.2 0.10.10.10.10.0030.04

Hydro(HI" + ee)

•0.937.427.25;~.•.3.673.083.062.862.88

% Shan

23.72U%9.715.010.211.18.99.0

G•• (HI" + ee)

0.047.329.7610.6710•.4913.6113.9415.9716.99

%share

23.332.443.842.945.350.549.953.2

Crude oil (10' + ee)

98.916.9914.3312.1710.3013.3210.5813.1412.06

%share

54.249.649.942.144.4387.341.137.7

10tal (IO'+ee)

10031.831.3530.0924.483M227.5931.9831.94

Index1985=100

124.3132.710473.896.976.394.786.9

Source: Adegbuklue and Seriki (eds.) Energy Isonea in Nigeria, 1991.

The .'Vi!:<?~i'J"" 4...--:. (l;"•.c·"url:- JournnJ _

Tabl. -t

£lectrxity Plant;; capacity Utilization in Nigeria (1999)

Plants Installed capaeityAvailable Capacity ,

T:'P""

Locationmw% of Totalmv'7< of

InstallationThermal (Gas)

,--VarnI-II,

580 9.9580100

Delta I-II

84014.331237.1

Ijora

601.060100

Sapele

2804.8--

Thermal (Steam)Egbin1,32022.5-

Sapele

68011.634851.2

Hydro

Kainji96016.452054.2

Jebba

5409.214025.9

Sbiroro

60010.2 -Total

5860100300051

Source: NEPA, Lagos.

Table 5:

Electricity Output and Distribution in Nigeria (10· KWH)

PeriotlTotal Sal •• (S)To Niger

Output (Y)

ResidentialIndU8trialCommerce

kwh

o/c ofkwh0/10 ofkwh% of kwh0/10 ofKwhS

SS Y

1990

13463394850201626190624269.325323.239

1991

14167402349204227222627212.51.55662.539

1992

14834434050217725218225252.21.75785.339

1993

14504521752206721271427145.01.0436130

1994

15531564155188818270926139.80.95153.233

1995

13783478052188820259628124.10.94394.932

1996

16233452850206123245327162.3I719144

1997

16128452251189721242427161.3I727445

1998

15112435951185522230827151.1I658944

Source: CBN, Annual Report and Statement of Accounts (Various series)1999

222

__ ~ Th~ Ef(f"fl ,4 Energy Crisi.~ on Nigerian Econornie-

However, electricity supply programme, keep expanding in thecountry without necessarily allowing the tran,mi"ion grids to keeppace with the programme requirements. Be,ides. many of theassociated equipment, machines and other facilities for generation,

transmission and distribution had operated for several years beyondtheir normal life span without adequate and regular maintenance,servicing and rehabilitation. Thus, the National Electric PowerAuthority, the then Nigeria's national electricity institution, establishedby Decree No 24 of 1972 with statutory monopoly power to over seeelectricity development throughout the expansive country produceselectricity under a high proportion of:

a. In-operational generating plants' capacities (27%), and

b. Overloaded and overstretched transmission lines

To compound these problems in the Nigerian Electricity Sectoris the problem of hydrological inadequacies in hydroelectric plants,particularly within the period of the dry season. The vandalization ofelectricity equipment in several points in the country does not seemto help matters. All of these have culminated in frequent break downof electricity equipment due to system over-load; and a large quantumof electricity losses in the transmission system (a range of 20 ­30%) annually.

The overall consequences of these anomalies are the variousdevices adopted by NEPA then to create an electricity supply - demandartificial balance in the face of supply inadequacies. These includerationing, shedding and suppressed demand devices. These devicesresult in one or a combination of the following developments in theNigerian electricity market:

• Very low voltage, especially in the rural areas whenavailable;

• Power outages at alarming frequencies;

• Illegal electricity consumption practices amongconsumers.

Against the background of the enormity of the cost of thefrequency of the interruption in public electricity supply which shows

223

The Nigerian Army Quarterly Journal _

up in considerable loss of industrial and domestic output, damages tomachinery and equipment and idle labour time, the sustenance ofprivate electricity supply substitution is reinforced in Nigeria.Currently, all major newly established pri"ately or even publicly ownedcommercial/industrial enterprises undertake substantial investment

in private supply of electricitv rel~'in~ on privatelv owned generatingplants at high costs which tend to aggra"ate the high cost of productionand subsequently the count" •.'s high rate of inflation. The wide spreadsubstitution of pri"ate for public provision of electricity explains whythe residential electricitv consuming class has taken over theleadership of the consumption of electricity from the industrial classin Nigeria contrary to, what obtains in most industrialized economies.

Given the foregoi~ developmcnts in the Nigerian electricitymarket, especially NE~s (PHCN) devices to allocate availableelectricity to consumers,' it is evident that the quantum of electricitysales to consumers do not in reality reflect in any form the actualdemand for electricity in the counlly. At best it merely connotes whatNEPA could supply, In view of the implications of the on-goingelectricity crises in the economy, many Nigerians have been madepoor, uncomfortable and miserable. Power outages have also damagedthe electrical appliances of thousands of people, and companies. Theimplications of this undesirable development are the creation of asituation of great stress, tension, suspicion and conflicts on the entire

Nigerian system which unofficially encourage some illegitimateactivities such as

• lllegal electricity connections either to the national gridor the existing residential/industrial electricity outfit;

• Illegal sales of electricity metres to prospective consumers;

• Over/under billing and payment via unscrupulous businesscollusion;

• Vandalization of equipment, resold in most cases to publiciprivate electricity institutions and others.

The issue beyond controversy is that the current status ofelectricity supply in Nigeria reflects that of an electricity supply crisisin which industrial growth and socio-economic development paces

224

____________ The Effect of Energy Cri&u on Nigerian Economic ...

are kept below what is attainable b,. the economy! There is theexistence of an abnormal electricity suppl~' situation in which supplycannot catch up with electricity demand. This has created anelectricity supply-cum-demand imbalance in the "igerian electricitymarket.

Table 6

Electricity Generation and Consumption in Nigeria 1970 - 2003y~ Generation Coll8lllllption (Million kilowaU Houn)

........,

To'" Comme...

('.,pa<hy

•.....•...IndoooriaIo/r> ofdal&o/c ofn..ideo-0/" of

(MiI6on

(MiI6on 10'"StreetTo'"...•Th'"Total

walt)!<ph) 1igIWng

1970

804.71547.0801.062.9 471.837.11272.8

1971

804.71887.31006.463.5 579.636.51586.0

1972

786.72237.21210.565.5 638.434.51848.9

1973

670.62625.21280.162.8 758.337.22038.4

1974

721.02287.21429.261.3 901.938.7233Ll

1975

926.23463.51755.662.9 1036.037.12791.6

1976

1125.24106.21879.658.0 1359.742.03239.3

1977

1114.24712.62210.558.1 1600.441.93816.9

1978

1793.74579.11381.731.3819.918.52218.350.24419.1

1979

2230.66225.51404,234.8682.516.91943.648.24030.3

1980

2230.57140.41749.037.2824.517.52129.645.34703.1

1981

2430.07776.433.00.9747.121.32723.648.43503.7

1982

2902.18531.72294.738.4657.011.63018.250.65969.9

1983

2856.88713.02228.936.5738.512.13135.751.46103.1

1984

3178.08983.61902.334.7715.313.12860.952.25478.5

1985

3695.51022Ll2275.936.2750.211.93258.951.96285.0

1986

4016.010765.62457.633.3742.410.14174.756.67374.7

1987

4548.011265.42576.534.5789.810.64105.154.97471.4

1988

4548.011654.12549.634.11039.113.93888.052.07476.7

1989

4548.012813.12258.826.41710.720.04586.853.68556.3

1990

4548.013462.92015.625.61906.324.23948.650.27870.5

1991

4548.014166.62042.326.82225.926.84023.848.58292.0

225

19-;::::~.s::j(l.O14833.82177.0 1100':213l.6[100.2.5217.0

199.38698.9

1993

..(.5..(.8.614504.62066.9! 20.8 i :;7l-t...f.::n.35036.851.99998.3

1994

4548.615531.02043.521.312513.628.04949.852.59593.9

1995

4548.615856.62037.220.32-148.926.04537.651.39435.9

1996

4548.616242.82061.322.82452.827.14452.350.19051.7

1997

4548.616116.920;·1.023.52317.426.243891.150.38843.7

1998

4548.615110.01918.022.52222.126.14416.851.48521.2

1999

4548.616088.71861.121.72296 .. 426.84431.351.58576.3

2000

4548.6 '14727.01011.622.02346.027.04608.451.08688.9

2001

45-18.615463.01987.221.92439.027.07714.851.19034.6

2002

4548.621544.01830.011.83297.630.47668.560.112842.4

2003

4548.620183.21659.81293538.327.57668.559.612866.6

Source: Central Bank Of Nigeria, Statistical Bulletin, Vol. 14, December 2003.

THE EFFECTS OF ENERGY CRISIS ON NIGERIANECONOMY

The impact of energy crisis on the economy could further beexplained by reference to some of the macroeconomic indicatorssuch as Nigeria's Average Manufacturing Capacity Utilization Rates;the level or rate of unemployment; the magnitude of import of finishedgoods from abroad and finally the Gross Domestic Product.

Manufacturing Capacity Utilization

The average manufacturing capacity rates of the nation'seconomy stood at 76.6, 77.4, 78.1, 72.9, 71.5, 70.1, 73.3, 63.2,for the periods between 1975 to 1982 respectively. Ever since thecapacity rates have been oscillating between 40. 32, and 41.1, forthe periods between 1983 through 2003. (See Table 1 above).

Understandably, the issues of economic growth and economictransformation have been predicated on the ability of an economy toutilize her capacity fully, consistently and efficiently. The picturepresented tells a lot about our economy; not only the extent energycrisis have devastated the economy but also how much vulnerable itis to the external sector.

226

___________ TIu! Effect of £nerg~' Cruis on Nigerian EcononUc.-

Rate of Employment

The slow-down in the manufacturing sector and the activitytherein resulted in labour-shedding as fll'1DS adopted \'arying degreesof rationalization strategies to shore up profit margins which werebeing eroded by rising cost of running the machines and poor sales.The results were drop in employment. Energy crisis is also a suspecthere as the irregular electric supply and non-availability of dieselgas made operation very uneconomical.

Value of Import

Table 7 on the value of major import groups shows that in 1970,the value of import of manufactured goods is N2,726.4 million. In1980 the value was Nll,075.6 million, by 1985, the year of StructuralAdjustment in Nigeria, it was N9,047.6 million, 1990 was N47,707.9million, the year 2000 it was N964,963.9 million while in 2003, thevalue was N1,958,1l3.4 million.

Table 7

Value of Major Import Group by S.1.T.e. Sectious (N MiIliou)

Manu~MaehineryMiscella-Miecella-Year!

ChemicalsfacturedAndDeousDeousTotal

Quarter

GoodeTraD8portManufac-lhU188C-

Equipment

luredtionsGoods

1970

88.5227.0285.339.515.02726.4

1971

121.5319.3417.868.528.93049.9

1972

102.6267.7391.983.112.42962.1

1973

133.4323.9491.494.28.43197.8

1974

281.0493.4561.8104.010.53711.3

1975

333.21007.41561.0278.710.65696.5

1976

398.51130.12467.2351.410.57124.5

1977

504.01500.03311.0441.3171.29070.7

1978

642.81855.93573.4631.289.110189.7

1979

846.71742.22905.1349.524.89451.5

227

The Nigerian _-trm~' Quar,erly Journal _

1930 913.51981.53650.4645.129.011075.6

1981

1250.42590.75668.1tg7.;47.914820.6

1982

1031.62287.04569.9692356.912752.5

1983

969.72006.13213.4~O.O12.610886.7

1984

1050.7135--+.2c568.1274.018.59162.3

1985

1108.21611.8U14.4224.512.79047.6

1986

1039.0123:-.12277.8252.410.17969.6

1987

3016.5+lS4.96827.7678.57.819848.7

1988

41z;,24547.48900.6957.315.323433.7

1989

7041.96541.412362.71250.39.332849.2

1990

90006.410240.818515.82194.5137.147707.9

1991

9311.251951.117926.22262.3174.089011.2

1992

23199.935310.662158.34961.0437.6147903.4

1993

24749.042023.474579.16644.0166.1168093.4

1994

46394.840046.046232.06348.81953.5164782.8

1995

199353.7175944.8206905.030960.21510.3757122.7

1996

132779.9156410.2129404.121379.82813.1564622.6

1997

192187.3246963.6202964.935359.01913.6847713.6

1998

192606.3248713.4195956.038518.81674.8839416.9

1999

196630.6253550.0204392.354308.11825.6864514.7

2000

218594.2279261.3232075.873641.92882.7964963.9

2001

308198.7393734.1327206.654308.14064.31359695.9

2002

350352.4456074.5376901.513641.94582.81582529.2

2003

418233.9561281.0465462.2103682.35784.11958113.4

Source: Central Bank of Nigeria, Statistical Bulletin. Vol. 14 Dec. 2003, FederalOffice of Statistics. Ahuja

Gross Domestic Product (GDP)

'The nation's Gross Domestic Product from the Table 8 shows

some acceptable increasing rate of growth. This does not say all iswell but the impact of Oil Gross Domestic Product covers orcompensates that of non-oil.

228

_________ The Effect of En.erg)· Crisis on Nigerian Economic ...

Table 8

Nigeria Gross Domestic Product at Current Basic Prices (Oiland Non-Oil Categories)

Yr GDPOil-GDP

1981

47619.7373999.9

1982

49069.340556.3

1983

53107.445718.7

1984

59622.550585.1

1985

67908.656533.4

1986

69147.059588.1

1987

105222.2785000.0

1988

139085.3109226.1

1989

216797.5140267.2

1990

267550.0167326.6

1991

312139.8195614.0

1992

532613.8285785.9

1993

683869.8441 '760.1

1994

899863.2680754.0

1995

1933211.61166693.6

1996

27027191544807.8

1997

2801972.61732994.1

1998

2708430.91971635.6

1999

31940232.62169559.3

2000

4537640.02350957.5

2001

5178150.02954479.32002

5454150.03364680.1

2003

7180140.04069030.1

Source: eBN, Statistical Bulletin, December 2003.

229

The Nigerian Army Quarterly Journal _

'iote: the monoculture nature of the "ligerian economy ismanifested by the data on Gross Dome5tic Product, which shows thatthe oil sector dominates in terms of contribution to total GDP.It simplymeans that other sectors are not much 5iplificant. The most advancedeconomies are heavily industlialized and diveroified which is a functionof stable energy supply.

THE PROBLEMS OF ~EPA (PHCN)

a. Vandalism: One of the major problems of power sector inNigeria i5 vandalization of NEPA (PHCN) properties.Distribution and transmission infrastructure have been destroyedas a result of the activities of vandals.

b. Weather and Thunder: Up till present the institutionhandling power sector has not found solution to light outagesdue to thunder strikes. In most cases, it has led to fire outbreaksand properties worth millions of naira being lost in the incidents.

c. Erosion is another menace to electricity generation andtransmission in Nigeria. These need urgent consideration if thedesired polices will see the light of the day.

d. Theft by Own Staff: It .is always surprising when thegeneral public observe that high-tension cable got cut even whileelectric current flows or that transformer oil is drained. Suchactivities take place with connivance of staff. The creation ofsemi autonomous unit with private sector participation will helpto overcome this.

e. Debt by Small and Large-Scale Consumers: Debt byelectricity consumers in Nigeria is so huge that collection hasbecome a herculean task. The industrial sector, governments,and other heavy users are the culprits. Strategies to ensure thatconsumers pay as they consume will most likely solve theproblems.

GOVERNMENT INTERVENTION STRATEGIES

Epileptic power supply that has increased the cost of doingbusiness is a major concern to Government as it affects economicdevelopment. Government's intervention strategies are based on the

230

___________ The Effect of Energy Crisis on Nigerian EcolllO.ae_

policy thrust and targets set for the power sector before 2007, whichinclude the following:

• Increase generation capaci~' froI::!·LWO ~IW to 10,000MW (an increase of 138 per centl.

• Increase transmission capacit~- from .3.838 megavoltampere (MVA) to 9,340 ~IY__\. a 60 percent increase.

Increase distribution capacity from 8.425 ~ry.-\to 15,165MVA (an increase of 80 percent)

• Increase tariff collections from 70 percent to 95 percent

• Reduce controllable costs by at least 30 percent.

• Rightsize to reduce staff strength by about 15 percent.

• Create 11 semiautonomous business units (profit centers).(This target was met in January 2004.)

• Make the transmission company a semiautonomous unitby April 2004.

• Unbundle generation by the fourth quarter of 2004.

• Reform to attract private sector participation.

Based on the policy thrust and targets, the following strategieshave been evolved by government to inject efficiency into theeconomy through the resolutio~ of the energy crisis.

a. Appropriate Legal and Regulatory Sector Reform.The enactment of the Electric Power Sector Reform Bill is toinduce competition and it contains among others:

(1) Unbundling NEPA into distinct business units.

(2) Establishing a regulatory agency for the electricityindustry.

(3) Establishing a rural electrification agency and fund.

(4) Increasing access to electricity.

(5) Privatizing business units that will emerge fromunbundling NEPA (PHCN).

231

fr.e Nigerian Army Quarterly Journal _

b. Revenue Enhancement Measures

This is within the vehicular framework called Commercial Re­Orientation of Electricity Sector Toolkit (CRESTS) initiatives.It is a metering programme that is capable of metering allcustomers within the next two to three yeaI5. This measure ismeant to discourage late payment of bills by heayy energyconsumers.

c. Distribution and Customer Service

This, according to the strategy will be provided to the unbundledentities. Also, expansion and reinforcement of the distributionnetwork will be carried out to improve the quantity and qualityof supply and reduce losses. The fund would be provided frominternally generated sources.

d, Transmission

The Transmission Company will remain government owned butcompanies could operate transmission under managementcontract. They would be responsible for electricity transmissionand for market and systems operations. World Bank is alreadyassisting in the area of transmission development plan.Multilateral loans to the tune of $500 million to develop theadditional transmission capacity required for the enhancedgeneration was also secured.

e. Generation

Government is already funding four new stations with a totalcapacity of about 1,400 MV. Coal-fired generation will bedeveloped as a strategic alternative source of electricity, mainlythrough private-public partnership. An initial integrated coalutilization project proposed for Enugu will incorporate a 500­1,000 MV power station. The Mambilla and Zungeru hydrostations and the commencement of the second phase of majorrehabilitation of some power stations (Jebba, Kainji, Egbin) toprevent a reduction in capacity are also within the programmeplan.

f. Gas Pricing

The gas and electricity industries in Nigeria are interdependent.Reform in the sector is necessary to enable gas producers make

232

___________ The Effect of Energy erUis on Niserion ECDrtOfrUc_

gas-gathering investment while the Nigeria Gas Company willneed to expand or upgrade its transportation infrastructure.

g. Prevention of Vandalism

Preventing vandalism of distribution and transmissioninfrastructure is a major concern to government. Delay in thecompletion of Abuja-Shiroro line was attributable to this for itinvolved high cost of repair. Loss of revenue during periods ofrepairs are enormous and a threat to reforms.u

The reform package also has projections to raise the generationcapacity to 10,000 megawatts by 2010 when several of theindependent Power Producers now in various stages of completionwould be fully operational." To ensure the achievement of thisgoal, government has perfected an ingenious method ofpersuading oil companies to include the building of power plantsin their expansion programmes. Major oil companies such asMobil and Agip now have such projects at different stages ofcompletion. The first set of private power plants are getting setto go on stream in the Niger Delta area of the country with themultinational oil companies.

The success or failure of these outlined government strategiestowards ameliorating the power or energy sector of Nigeria is afunction of many factors. Unbundling the corporation thoughgood to decentralize but there is no guarantee that they wouldwork in tandem to ensu~e efficient product delivery.

It is also worthy of note that the problem with NEPA as wasconstituted is not that consumers never settled their bills butare money paid actually directed to appropriate quarters? Theworkability of the entire programme may not succeed entirelyagainst the background of incohererent political system andpoliticking.

CONCLUSION

The shocks from energy crisis in Nigeria have created a lot ofproblems in the national wheel of effective management of industrialand socia-economic transformation and growth. The magnitude ofthe problems is manifested in the level of industrial capacityutilization, the rate of closure of manufacturing firms, unemployment

233

The Nigerian Army Quarterly JounuJ _

rate and low rate of growth of the small and medium scale industriesand perhaps rural areas underdevelopmect.

Accepted that government is now poised to turn around the uglytrend of energy crisis that for more than three decades ravaged theeconomy. One only hope that the implementation process would notbe bedeviled with bureaucracy and lack of transparency that hasbecome the nature of Nigeria policy implementation.

The privatization of PHCJIi may be good, but what positivechange will come from it? Though this is in line with the currentthinking but to what extent will it guarantee the welfare of the peoplevis-a-vis the efforts directed towards employment generation andpoverty alleviation? lf PHCN facilities are vandalized, it presents asteady threat to security and the continued efforts to supply electricityto all people. What ever government strategy that is contained inNational Economic Empowerment and Development Strategy(NEEDS) documents must not loose sight of this problem. Nigeriansmust guide and wage war against vandalization of PHCN facilitieswithout which the benefits of the impending revolution in the electricpower sector cannot reach the doorsteps of the citizenry.

Our expectations are that if the energy crisis is ameliorated,industrial growth would automatically be the response from thestimulus and the issue of economic transformation and growth wouldbe a given because without electricity there will be no development.

REFERENCES

1. A.F.Alhaji and James Williams,"The ComingEnergyCrisis." EnergyEconomics Newslette~2003.

2. Fordetails, See PearceDavidand JeremyWarford,Ifbrld Without Erui,

International Bank ForReconstructionand Development/WorldBankWashington,1993; World Devewpmem Report, 1991.

3. P.F. Holmes,"FutnreProspectsofOilIndustryinNigeria,"SheU Bulletin,

Lagos,January, 1980. P.6.Also see, IwayemiAkin, "DeregulationofPublic Utilities in Nigeria: An The EconometricAnalysis" In CEARPublishedAnalysisofKeyPublicSectorUtilitiesin Nigeria:U.Llhadan,1991.

234

___________ T.he Effect of Energy Crisis on Nigerian Economic ...

4. Nigerian Environmental Study/Action Team (NEST), Nigeria s Threatened

Erwiron.meru - A Natwnal Profile. Ibadan, 1999.5. NEST,lbid.

6. NEST, 1980. Note that I tonne is equivalent to 7 barrels of crude oiL7. U.C.C Nwogwugwu, Industrial Policies In Nigeria: From Indegenization

To Foreign Investment Promotion. Owerri, Colon Concept, 2005. Also

see Nwogwugwu, U.C.C. Good Governance, Transparency And Due

Process - A Paradigm for Socio-political and Economic Progress, Owerri,

Colon Concepts Ltd, 2005.

8. MAN, Half-Yearly Economic Review 1996-1999. Manufacturers

Association of Nigeria, Obafemi Awolowo Way, Ikeja, 1999.

9. Federal Republic Nigeria, Th£ Third Natwnal Developmeru Plan: 1975­1980. Also see World Bank, World Development Report, 1991, Ayodele,

A. 'Sesan (1998): "Energy Crisis in Nigeria: The Case of Electric Energy

Market:" Bullion, Publication of CBN VoL22 No. CBN. (1998) "Energy

Crisis in Nigeria" In CBN Ed Bullion, A Publication of tbe CBN Vol. 22No.4.

Ayodele, A. 'Sesan (1999): "Illegitimate Energy Market Activities inthe Nigerian Energy Industry: The Cases of Electricity and Petroleum

Products" Working Paper No.2 •. DPC, Ibadan, Nigeria; and

Ayodele, A. Sesan (1992):'''Public Enterprises Institutional Reforms,

The NEPA and Electricity Development in Nigeria: An Economic

Analysis:" A Commissioned Papel;'NEPA District Commercial Managers

Workshop 8-10 April, 1992, in Calabar.

10. MAN, Economic Review, (Various years).

11. National Planning Commission, 2004: National Economic Empowerment

and Development Strategy (NEEDS). Abuja, Central Bank of Nigeria.12. The Punch. Thursday July 27, 2006. p.28

235