Donbigi2:


I think it cost 19naira per unit of electricity for pay as you go (which is by far the cheapest around the world)
Even us that uses cheaper source of electricity (nuclear) it's arround 25-30naira per unit depending on your location.
By the way I was talking about the country adoption g this method not the 38mw..
Am simply saying it won't be sustainable at 300-3000mw
I hope you are getting what I mean

You have given half an answer. What is the cost of production per unit ?

Donbigi2:


If at all everyone will use meter, I see profit in it, here is why:
All exchange rate are at 396/dollar

Cost to power = $12960000.00 per year
Convert to naira=5132160000
If it gives light offer 12hrs we can say it generates 5132160000/2 = N2566080000
Let's say they bought diesel for 150 naira per liter =N4950000 per day (150x33000)
Let's say it supply's light for 12hrs only =
4950000 x 15 (half of 30days equivalent of 12hrs per day)
=N74250000
1yr will cost =891000000

Profit for the yr= 1, 675, 080, 000
Let's say 600 000 000 is cost of maintenance nd workers salary

Profit is 1 075,080,000

Cost of generator = 3 800 000 000
Within 3yrs they should get their capital back..
This would have been profitable if at all the north uses meter for electricity (19 naira per kwa)
Sadly they pay Nepa bill manually (highest 1k per month, even at 3k per month it is not sustainable)

here is a more comprehensive analysis.
the current cost of elec in Nig. is about 19 naira. but remember that both transmission and distribution have a cut in that 19 naira but for the purpose of simplicity let's assume the gen plant gets the entire 19 naira per kW.

cost of 1 mW of power------ 19 x 1000(1000 kW make 1 mW)=19000 naira

cost of 38 mW daily output------- 38 x 19000=732000 naira per day

cost of diesel 33000 litres @ 100 naira per litre( conservative subsidized estimate)------33000 x 100=3,300,000 daily

bottom line------- daily revenue(732000) - daily cost (3.3 million) = -2,568,000 (daily loss)

note this analysis is based on the gen plant getting the entire 19 naira per kW which is not possible because trans and distribution will collect a cut

also the analysis is based on a subsidized 100 per litre of diesel.

blackprowler:


Many people make me laugh in this country with their age-old narratives without ever thinking. So because the Nigerian government commissions some oyibo people to prospect for oil and they find oil somewhere in Nigeria, and use their own knowhow to obtain the oil from the ground and refine it and make money for Nigeria and themselves, it means in your own skull that the people who happen to be living in the areas where the oil was found are being productive? Does that make any sense to you? If the economic activities of the North is stopped today, do you know what will happen to your own life? Go to any market and itemise each foodstuff and find out where it emanates. It is the places where oil exist in Nigeria that has the absolute laziest, idlest and most stupid troublemakers in this country other than those cursed by religion

Dude get a clue. The IGR In the north is lowest of any region. Second yes people would get cut either way due to royalty check if federal government didn't hold exclusive domain over land and mineral resources.

Stop lying to yourself. The north has highest poverty rates, lowest standard of living, lowest GDP, lowest gdp per capita, lowest IGR, lowest igr to Allocation ratios.

Ps: I find allocation system to be bad system because it enables laziness especially the laggard north. Fiscal federalism would be better.

SBG04:

33,000 litres to get 30megawatts! That's the best deal ever! Do you know what 30megawatts can power? A whole state!

Good idea if the people can pay right? Have you asked yourself why the FG haven't done the same?

Blue3k:


The government grants them the blocks to private businessmen. The profits being kept by them isn't issue. Second the economic tax revenue is generates exclusively in South hence why it goes to south as their gdp. The tax money is then given to economicly laggard northrrn states that don't produce or contribute to federal government. That's why your states are called paradites.

Chai! chai!
I no know say na shop boy I dey argue wit - see your level.
Dem tell you say na northerners dey generate de revenue and you dey talk rubbish.
What a waste of my time.

mmsen:


What 'waves'?

They still have the highest poverty and illiteracy rates in the country.

If this makes the north more productive, then that is wonderful but from what I can see they have simply imported technology and imported the manpower to run a power plant - how has that assisted the north in dealing with its educational deficit or its unemployment issue?

And beg to ask what technology have you created yourselves (not imported) in your enclave that made you more productive?

Some positive news in the midst of the negativity tsunami threatening to drown Nigeria

Blue3k:


Dude get a clue. The IGR In the north is lowest of any region. Second yes people would get cut either way due to royalty check if federal government didn't hold exclusive domain over land and mineral resources.

Stop lying to yourself. The north has highest poverty rates, lowest standard of living, lowest GDP, lowest gdp per capita, lowest IGR, lowest igr to Allocation ratios.

Ps: I find allocation system to be bad system because it enables laziness especially the laggard north. Fiscal federalism would be better.

You don't get it and I don't blame you. You belong to the 99.9999% so for you to get it would be the miracle. If you're willing to widen your vista, I would be glad; otherwise, if you got it all figured out and can never see otherwise, then good luck. Afterall, that's why Nigeria is dying in the first place

MeAboki:


Chai! chai!
I no know say na shop boy I dey argue wit - see your level.
Dem tell you say na northerners dey generate de revenue and you dey talk rubbish.
What a waste of my time.

The northern business men do and keep profit. Then tax revenue is shared to state government who didn't have involement in projects. Your arguements is essentially if person from northern states generate money in south. The federal government should take majority of tax revenue and share it with states have nothing to do with process.

Your arguements is dumb. Try an use reason. Person from Abia starts diamond mine in Borno. That means in your head the federal government should take majority of tax revenue and share it with OYO, Abia, and rest of states. NE just deserves bigger chuck. That's a dumb concept.

That's why fiscal federalism better model. It stop paradites from looking for tax revenue generated outside state. The statte, local gov and, lfederal government take their cut. The rest of states figure out way to become productive.

Ps: the oil block thing. I don't know if it's really true. The articles don't seem credible. I'd rather have politicians, minister or government source. (Ng.gov)

blackprowler:


You don't get it and I don't blame you. You belong to the 99.9999% so for you to get it would be the miracle. If you're willing to widen your vista, I would be glad; otherwise, if you got it all figured out and can never see otherwise, then good luck. Afterall, that's why Nigeria is dying in the first place

Lol stop running your mouth if you can't back up points about north being economic engine. The are laggard region. You also make point about allocation which o debunked. Now don't mention me again if you want to defend parasite system that ecourage laziness.

If you have no futher point don't points don't mention. If you do present them here or make topic.

Just ordinary 38kw that can't even power my entire house.... Buhari is a cow

Blue3k:


The northern business men do ans keep profit. Then tax revenue is shared to state government who didn't have involement in projects. Your arguements is essentially if person from northern states generate money in south. The federal government should take majority of tax revenue and share it with states have nothing to do with process.

Your arguements is dumb. Try an use reason. Person from Abia start diamond mine in Borno. That means in your head the federal government should take majority of tax revenue and share it with OYO, Abia, and rest of states. SE just deserves bigger chuck. That's a dumb concept.

That's why fiscal federalism better model. It stop paradites from looking for tax revenue generated outside state. The statte, local gov and, lfederal government take their cut. The rest of states figure out way to become productive.

It is obvious you do not understand how the revenue you love to take credit for is generated.
The Nigerian govt leases out oil blocs to companies who in turn produce the crude oil and pay the FG royalties (taxes) for this oil, which is goes into the federation account that is subsequently shared out between the states using an agreed formula backed by law.
The FG merely sits there like a landlord collecting rent that it shares within its family members.
Northerners who own some of these oil well are part of those generating this wealth; while southerners like you contribute nothing but sit under the mango tree sipping ogogoro and calling others lazy and parasites - pls tell me how are you guys responsible for this generated revenue?

MeAboki:


It is obvious you do not understand how the revenue you love to take credit for is generated.
The Nigerian govt leases out oil blocs to companies who in turn produce the crude oil and pay the FG royalties (taxes) for this oil, which is goes into the federation account that is subsequently shared out between the states using an agreed formula backed by law.
The FG merely sits there like a landlord collecting rent that it shares within its family members.
Northerners who own some of these oil well are part of those generating this wealth; while southerners like you contribute nothing but sit under the mango tree sipping ogogoro and calling others lazy and parasites - pls tell me how are you guys responsible for this generated revenue?

Then federal government dolls out money to useless northern son right. You explanation still shows it is parasites system. The federal government tax majority then shares it with all the states in break down formula. The states that produce get biggest allocation just like my example. The other states that nothing to do with tax generation get money like welfare queen's.

My diamond example showed reality same because Nigeria government has exclusive dominan overy mineral resource. I assume diamonds are included.

Please stop clowning the south also boast better igr then the north aswell. The south has better GDP number's, per capita, less poverty, better igr to allocation ratio. The south is more productive. Northern states produce least and receive money like useless children then talk about their more successful brother bringing money to house.

ELKHALIFAISIS:
Just ordinary 38kw that can't even power my entire house.... Buhari is a cow

Why mention Buhari if he has nothing to do with this.

Btw it's 38 mw not kw. It's seem like good start. I don't think it will power wholeveling state like article states but we'll see.

Blue3k:


Then federal government dolls out money to useless northern son right. You explanation still shows it is parasites system. The federal government tax majority then shares it with all the states in break down formula. The states that produce get biggest allocation just like my example. The other states that nothing to do with tax generation get money like welfare queen's.

My diamond example showed reality same because Nigeria government has exclusive dominan overy mineral resource. I assume diamonds are included.

Please stop clowning the south also boast better igr then the north aswell. The south has better GDP number's, per capita, less poverty, better igr to allocation ratio. The south is more productive. Northern states produce least and receive money like useless children then talk about their more successful brother bringing money to house.



Why mention Buhari if he has nothing to do with this.

Btw it's 38 mw not kw. It's seem like good start. I don't think it will power wholeveling state like article states but we'll see.

Opunu! everything you talked about: IGR, GDP etc are all related to the oil revenue being locally generated by northern oil bloc owners while you greedy, lazy and parasitic lot do fvck all.

Is this not the type Redeem Camp is using .? It really looks alike

MeAboki:


Opunu! everything you talked about: IGR, GDP etc are all related to the oil revenue being locally generated by northern oil bloc owners while you greedy, lazy and parasitic lot do fvck all.

Lol no its not. The igr is not dependant on northern block owners. Hence why kano in top 10. Second lagos is number one because oil nope. Another failure on your part. You keep switchin points. I proved the north generates least economicly now you hide failures.

Why is Anambra on top ten in igr. Quit talking nonsense and think. North is laggard region because you're pathetic lot hates facts and reason. They need to invest in educating so you children don't grow up to be mouth breathers like yourself.

Your myopic world view makes you think every economic development is all about oil.

Blue3k:


Lol no its not. The igr is not dependant on northern block owners. Hence why kano in top 10. Second lagos is number one because oil nope. Another failure on your part. You keep switchin points. I proved the north generates least economicly now you hide failures.

Why is Anambra on top ten in igr. Quit talking nonsense and think. North is laggard region because you're pathetic lot hates facts and reason. They need to invest in educating so you children don't grow up to be mouth breathers like yourself.

I guess you have never heard of cascade or multiplier effect - go figure.

MeAboki:


I guess you have never heard of cascade or multiplier effect - go figure.

Allocation money doesn't count towards multiplier effect because it transfer payment.

As usual both your points are stupid. Now your using terms you dont understand. All the states received revenue and northern region recieving most in aggrigate. Second neither of those two things explain why those states out do the north. The multiplier effect has nothing to do with economic growth of south vs north because we both opperate under same banking rules.



The multiplier effect is the expansion of a country's money supply that results from banks being able to lend.

Second term could be fiscal multipler your thinking where government spends money. The Allocation money is transfer payment. It wouldn't count towards multiplier.

Cascade an inevitable and sometimes unforeseen chain of events due to an act affecting a system.

Blue3k:


Then federal government dolls out money to useless northern son right. You explanation still shows it is parasites system. The federal government tax majority then shares it with all the states in break down formula. The states that produce get biggest allocation just like my example. The other states that nothing to do with tax generation get money like welfare queen's.

My diamond example showed reality same because Nigeria government has exclusive dominan overy mineral resource. I assume diamonds are included.

Please stop clowning the south also boast better igr then the north aswell. The south has better GDP number's, per capita, less poverty, better igr to allocation ratio. The south is more productive. Northern states produce least and receive money like useless children then talk about their more successful brother bringing money to house.



Why mention Buhari if he has nothing to do with this.

Btw it's 38 mw not kw. It's seem like good start. I don't think it will power wholeveling state like article states but we'll see.

well 38kw is not bad for a state, that only 10% of it citizen can afford Home appliances...

Donbigi2:


If at all everyone will use meter, I see profit in it, here is why:
All exchange rate are at 396/dollar

Cost to power = $12960000.00 per year
Convert to naira=5132160000
If it gives light offer 12hrs we can say it generates 5132160000/2 = N2566080000
Let's say they bought diesel for 150 naira per liter =N4950000 per day (150x33000)
Let's say it supply's light for 12hrs only =
4950000 x 15 (half of 30days equivalent of 12hrs per day)
=N74250000
1yr will cost =891000000

Profit for the yr= 1, 675, 080, 000
Let's say 600 000 000 is cost of maintenance nd workers salary

Profit is 1 075,080,000

Cost of generator = 3 800 000 000
Within 3yrs they should get their capital back..
This would have been profitable if at all the north uses meter for electricity (19 naira per kwa)
Sadly they pay Nepa bill manually (highest 1k per month, even at 3k per month it is not sustainable)

Sir, the gencos sell tobthe discos. The problems you highlighted about payments are disco issues not genco

crisycent:


Can you buy a car for N5m and the car costs N10m to run yearly?

This your analogy doesnt fit here. Just accept you dont know how much gencos sell to discos and stop jumping to conclusions

ELKHALIFAISIS:
well 38kw is not bad for a state, that only 10% of it citizen can afford Home appliances...

I guess that might be true I didn't take that into consideration. It's actually 38 mw. You also have to think about industry aswell. Oh well best of luck to them either way.

I mean akwa ibom wit 100 mw can't get 24hr power that's place has 5 million population.

ernieboy:

here is a more comprehensive analysis.
the current cost of elec in Nig. is about 19 naira. but remember that both transmission and distribution have a cut in that 19 naira but for the purpose of simplicity let's assume the gen plant gets the entire 19 naira per kW.

cost of 1 mW of power------ 19 x 1000(1000 kW make 1 mW)=19000 naira

cost of 38 mW daily output------- 38 x 19000=732000 naira per day

cost of diesel 33000 litres @ 100 naira per litre( conservative subsidized estimate)------33000 x 100=3,300,000 daily

bottom line------- daily revenue(732000) - daily cost (3.3 million) = -2,568,000 (daily loss)

note this analysis is based on the gen plant getting the entire 19 naira per kW which is not possible because trans and distribution will collect a cut

also the analysis is based on a subsidized 100 per litre of diesel.

Kilowatt hour, you need to multiply your daily revenue by 24.

Blue3k:


I guess that might be true I didn't take that into consideration. It's actually 38 mw. You also have to think about industry aswell. Oh well best of luck to them either way.

I mean akwa ibom wit 100 mw can't get 24hr power that's place has 5 million population.

which industry the only industry in north is Kaduna textile mill and it's no longer functioning.. unless those kunu industries will be making use of the power

Dem just take money go buy big generator

Blue3k:


As usual both your points are stupid. Now your using terms you dont understand. All the states received revenue and northern region recieving most in aggrigate. Second neither of those two things explain why those states out do the north.

The multiplier effect has to do with government spending helping economy due to expansionary economic policy if I remember my macro class.

Cascade an inevitable and sometimes unforeseen chain of events due to an act affecting a system.

Bullcrap!
You write lengthy poor grammar with no intelligence at all - you should be ashamed of yourself for lacking the concept of even the most basic of terms such as cascade/multiplier effects.
Why should I bother bother arguing with a brick wall.

MeAboki:


Bullcrap!
You write lengthy poor grammar with no intelligence at all - you should be ashamed of yourself for lacking the concept of even the most basic of terms such as cascade/multiplier effects.
Why should I bother bother arguing with a brick wall.

The multiplier effect has nothing to do with transfer payments such as allocation money. Stop using terms you dont know. You embarrass yourself enough. Both terms were correct.

The multiplier effect and cascade effect have nothing to do with why south is economic engine of nigeria. Allocation doesn't have anything to do with multiplier. The money goes to state govenment as tax revenue not to business or individuals.

Explain why you are using terms you dont understand. We are talking about allocation. I left definitions I could find.

http://www.dictionary.com/browse/multiplier-effect

An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. For example, if a corporation builds a factory, it will employ construction workers and their suppliers as well as those who work in the factory. Indirectly, the new factory will stimulate employment in laundries, restaurants, and service industries in the factory's vicinity.


https://en.m.wikipedia.org/wiki/Cascade_effect

A cascade effect is an inevitable and sometimes unforeseen chain of events due to an act affecting a system.


http://www.investopedia.com/terms/m/multipliereffect.asp#ixzz4RcbNDZNU

What is the 'Multiplier Effect'
The multiplier effect is the expansion of a country's money supply that results from banks being able to lend.

Lng lv de north sai BUHARI

1wolex85:


This your analogy doesnt fit here. Just accept you dont know how much gencos sell to discos and stop jumping to conclusions

Tell me how much they sell and let's analyse it here.

obailala:

These are interesting figures. If just N3.8billion could build a 30mw gas/diesel plant, then I would assume N38 billion can build a 300mw plant and N380billion (~$1bn) can build a 3000mw plant.

If these above figures are real, one begins to wonder how OBJ spent $16billion and GEJ spent about $8billion, yet power generation capacity is still not up to 6000mw.

This is one bloody expensive venture to operate, reason Nigeria should forget the initial capital cost and consider solar power.

Some Dark power with dark mind operating from the dark room are involved, You think na natural occurrence for $24 Billion to Disappear w/o improvement

obailala:
It's extremely cheap compared to typical Nigerian standards. I can't say mush about the running cost though.

Over #9b fueling cost in 5yrs,at a constant of #150/litre.
Not sustainable