No need for government to increase anything.
They should just come out with their blueprint for the sector, roles and responsibilities, tariff guidelines, and then do their licensing regime.
Then leave the distribution part to the private sector, and let competitive forces determine the rates, just like it did for telecom.

They might as well privatize the power sector!

At least we'll know we'll get value for our money.

hmmm, una me ppl,

i no knw y una dey vex like ds. while ur frustrations is well explained, it is also a matter of fact dt there cant b next step wtout price revaluation of electricity in nigeria. d price is just ridiculously low and dt makes it unattractiv for any investor according to such business setups. befor u respond, abeg try find out hw much it costs nepa to generate a unit of electricity and hw mch dey sell, u will b amazed. also try factor in cost of transmission against its efficiency, u go mad further. ten try find out hw much d gas coys dey sell to nepa against international price, my guys, u go burst. dn finally imput distribution efficiencies, u go faint.

when u wake up, dn u go talk price wey u for charge if na u get d business.

yours truly,

HRH Maazi Odogwo Ogaranya himself

The ultrances of Sanusi in recent times is quite unfortuanate, Despite from the fact that this man has never pay for anything from birth. He has never used his money to buy fuel or pay NEPA bills. What an unfortunate Nation. He should be stoned to death. Sikena

This is my first time on Nairaland and I doff my hat to the regulars here.  I have to say that I agree with Mr Sanusi because what he is saying is nothing but Economics 101 at work.  In short, raising the price of any commodity (including electricity) increases the supply because the producers see an opportunity to increase their profit margins.  However if the price is so low that they can barely make a profit, they reduce their supply and even stop the economic activity altogether while looking elsewhere for more profitable opportunities.  I think some of the commentators here should do a google search of the results of electricity privatisation in other developing countries and in particular the Philippines under President Fidel Ramos  in the early 1990s for confirmation that this is the only way forward for Nigeria.  The same thing was done with increased feed in tariffs for solar power generation in Germany, about 8 years ago and the outcome was that solar power generation in that country increased by over 4 times in 6 years.   In my view the problem with the provision of basic utilities and services in Nigeria is that it is in the hands of corrupt and uncontrollably greedy politicians and civil servants who see these state run companies as a means of lining their pockets.   What needs to be done is that these services just like the telecom sector, should be made subject to the discipline of private capital  and the profit motive.  Anybody who insists that we should continue with the current status quo can keep on dreaming:  in darkness.

well I dont blame him cause right now no one wants to invest in elecity cause its not looking attractive or profitable - If you raise the praise it will attract private investors.

Im for it before they do such they should talk about federalism and job creation-

They should privatise the sector fully, let investors come and charge whatever price they want. . . demand/supply and competition will ensure that everything converges to a fair price.

kulutempa:

This is my first time on Nairaland and I doff my hat to the regulars here.  I have to say that I agree with Mr Sanusi because what he is saying is nothing but Economics 101 at work.  In short, raising the price of any commodity (including electricity) increases the supply because the producers see an opportunity to increase their profit margins.  However if the price is so low that they can barely make a profit, they reduce their supply and even stop the economic activity altogether while looking elsewhere for more profitable opportunities.  I think some of the commentators here should do a google search of the results of electricity privatisation in other developing countries and in particular the Philippines under President Fidel Ramos  in the early 1990s for confirmation that this is the only way forward for Nigeria.  The same thing was done with increased feed in tariffs for solar power generation in Germany, about 8 years ago and the outcome was that solar power generation in that country increased by over 4 times in 6 years.   In my view the problem with the provision of basic utilities and services in Nigeria is that it is in the hands of corrupt and uncontrollably greedy politicians and civil servants who see these state run companies as a means of lining their pockets.   What needs to be done is that these services just like the telecom sector, should be made subject to the discipline of private capital  and the profit motive.  Anybody who insists that we should continue with the current status quo can keep on dreaming:  in darkness.

ok. . .have you considered the inflation rate in nigeria, cost of living and the income of an average nigeria ? What if he increase the tariff,allow more investors to invest in electricity but in the end,the end users could not afford it ? Is that not back to the same old. . ? Why making policies that would make poor people poorer because you want to make profit ?

@Bluetooth. Ah, that is the beauty of supply and demand and free market forces. Once the supply increases you will have some producers cutting their prices to capture more market share. The same thing happened with cellular rates in Nigeria after the gsm auctions. Eventually the rates moved down in line with increased competition. One other thing to bear in mind is that electricity in Nigeria is already in private hands through the widespread use of generators. What privatisation and increased tariffs would simply do is to increase the economics of scale of electricity generation by the Independent power producers, which will be far cheaper and more cost effective, with lower end user prices than individuals producing their own electricity.

i am caught in two minds here, one on hand i think it will be a good idea to hike the charges as this might interest investors, but on the other hand i feel for the masses, the average joe, the barber, the ice block maker etc. considering the already high costs of running their business

citin an old nigerian energy commission document, as at 2006, electricty sold for N4 per unit fron nepa while using generator, it costs abt N45. so adjust d cost of fuel for ur gen now aginst dt time, and o d math. u can make ur decision afterwards.

dont pity d masses, it shall favour dem seriously. presently many of dem run on gens, so at dat time they wont hav wahala over dt.

kulutempa:

@Bluetooth. Ah, that is the beauty of supply and demand and free market forces. Once the supply increases you will have some producers cutting their prices to capture more market share. The same thing happened with cellular rates in Nigeria after the gsm auctions. Eventually the rates moved down in line with increased competition. One other thing to bear in mind is that electricity in Nigeria is already in private hands through the widespread use of generators. What privatisation and increased tariffs would simply do is to increase the economics of scale of electricity generation by the Independent power producers, which will be far cheaper and more cost effective, with lower end user prices than individuals producing their own electricity.

On a per,how has the privatization of the telecommunications sector translate well to the average nigeria ? They only provide service but the rate are still high which means that the effect of the market force are unnoticeable if not why do we still make call for almost #45 with the abundant of telecom companies available.nigeria defy all economic theory. . .i just dont know why,maybe corruption sha.

@bluetooth. We still pay high call charges because the telecoms companies in Nigeria have to buy and run generators to power their base stations. It still goes back to that age old problem with electricity, doesn't it?

~Bluetooth:

On a per,how has the privatization of the telecommunications sector translate well to the average nigeria ? They only provide service but the rate are still high which means that the effect of the market force are unnoticeable if not why do we still make call for almost #45 with the abundant of telecom companies available.nigeria defy all economic theory. . .i just dont know why,maybe corruption sha.

\

brossss no fall my hand o!!!

every tom d-ick and harry get phone o!

gone are the days of 'telephone is not for the poor'


back in the days of nitel when one would have to wait for years to get line - when nitel tossed line and wahala began, when one had to queue at those yeye phone booths to make international calls

even now - 25 to 30 of the people posting on nl are doing it through pirated broadband

Some us can play the ostrich. We know that no one will invest even the One of the old naira notes that was used in the 80s unless they increase prices and gauranty money back to investor.

People love free light and that is what has killed us.

SANUSI, go and sleep. Because you have everything paid by the bank , up to the shoe you put on. Do you know that PHCN or NEPA is like Police. They will use their computer and give you bill for the lite they never gave out. Look at the new meter they brought. Because it does not pay them, they have stopped giving it out to consumers because they now know that if the brake and quench or candle  light they give us, they will not make any money. With the new meter, they have nothing to do with you.

Even if Sanusi wants 1million % increase, it will not change PHCN. Rather, it will increase their urge to be stealing from the tariff collected from people and at te same time, will not give lite. Just look at the cobweb network they have. Some ordinary banbo pole. Only common man in Nigeria pays for any increment. Is the House of Representative or the Senators going to pay?

They have all taken Nigeria money, inclusive of Sanusi hence he wants to increase electricity tariff.

there is nothing like feeling for the masses here cos the masses themselves will benefit. How much do you think that barber joe uses to fuel that his I pass my neighbor? if you consider how many of us use generators with the attendant cost of fuel, fumes and maintenance you will know that privatization is the way to go. We want the good things of life but dont want to work for it. Just because we hate Sanusi we demonise his forthright comment. We admire other countries but fail to realize what sacrifices they made to make things work.

Privatization is the way to go. It reduces critical industries in the hands of the government and enhances efficiency

I didn't see where Sanusi talked about privatization of power sector. He was just advocating the increase in the price of power units. Nobody, except lunatics will ask for an increase in price without talking about how to provide better light and then demand more money. Sanusi is a mad man and is enjoying himself thoroughly, he has finished levelling the banks and is not blaming power for the economic woes. That guy should be in chains in one executive bed in yaba left wing!

rethink:

Some us can play the ostrich. We know that no one will invest even the One of the old naira notes that was used in the 80s unless they increase prices and gauranty money back to investor.

People love free light and that is what has killed us.

Unfortunately that is something people would choose to ignore when talking about the masses like they are just victims. How many people tap into free light illegally and don't pay bills? Yet those same people will shout "NEPA" when power goes out as if they were paying for it in the first place. Let us not be myopic because it is killing the nation.
If Power is sorted the resulting economic boom and opportunities would lift a lot of people out of poverty and the multiplier effect alone would probably be staggering. Let us for once not only think of what we will eat tonight. Investment in power is not cheap, it would require money. I am all for privatisation and think the power sector should be liberated, however, I find it amusing that people would shout "privatise" and not understand that it would probably lead to increased cost of power because infrastructure for power (especially when building from scratch) is not cheap.

if the tariffs are reviewed upwards and people get billed for what they actually used, I believe that everyone would watch their consumption. People will no longer be careless as in leaving things like security lights on all day, leaving the fans/ac on when nobody is in the room etc.
People will also start going for low energy consuming electronics/items starting with power saving bulbs (or is it called energy saving bulb?)

because i really couldnt understand the entirety to the banking industry, i couldnt say whether this guy was good or bad, but after this, its clear to me now that this man is into serious organised crime.

We all know removing subsidy wont solve the electrical problem. Just wan open another door for them them.

The man is taking us for a ride, and enjoying the discomfort he is creating in our polity. Making one useless comment after another. Clearly lacking in ideas.

sanusi does not av adequate grasp of the excruciating economic hardship that Nigerian workers are going through, which is occasioned by poor pay, infrastructure decay and general apathy to the wellbeing of the working class, earlier in June, Sanusi had called on the Federal Government to remove subsidies on petroleum products because he felt the beneficiaries of subsidy are members of an oil cabal and not the people for whom it was meant.”
Sanusi statements are highly misleading and totally anti-people in the face of excruciating mass poverty in the land.Dis mallam certainly talks b4 he thinks.

see bottomline is, privatise the sector first.
how can any body expect me to pay PHCN that much!!!

I WILL NOT A GOVT ENTITY THAT IS NOT ANSWERABLE FOR WRONGS EXTREME AMOUNTS FOR BAD SERVICE!!!

first, phase out postpaid meters entirely. or do u expect me to pay you such sums for estimated bills and adjusted meters that run very fast so they can justify giving me 8k a month bills for 4 hrs a day electricity?

then, for crissakes, let some body let the pple who can run power run it!!! its a quid pro quo!! as usual u pple simply argue for govt to make more money without corresponding increase in value from them. kinda like the increase school fees arguments. how can u advocate that a gvt that is inherently corrupt and insensitive increase costs of essentials when that govt is in turn incapable of giving value?

the amount of money you make is not directly proportionate to the wealth you have even as an individual. were it to be so, lottery winners would be the richest pple in the world, starting off with large sums as capital!!!!!

you must be very myopic if you think that by paying PHCN 1000 per KwH, the power situation will magically improve!!. let them do the right things first.


besides, with all these debats abt power, why is the same govt wasting money on white elephant projects for power when a single, small sized nuclear station will produce 10,000 MW of power!!! two of that will solve nigeria's problems in the interim and for a forseeable future at least.

and 1 will cost less than the 16 billion obasanjo spent on power. yes we cant manage it ourselves, but there are enough professionals the world over who can and will for a handsome fee and again, why is big brother uncle sam playing ostrich when they know quite well that with power, nigeria has the potential to take off. Uncle sam can always help nigeria to set up 1 and manage it if they are nervous abt our corrupt asses!!!


THERE ARE QUESTIONS TO BE ANSWERED ABEG, NOT JUST ONE ABOKI TELLING ME TO PAY THRU MY NOSE BECAUSE ECONOMICS PROFESSORS SAYS THIS OR THAT!!!! more money will not solve nigeria's issues, more sense will

AjanleKoko:

No need for government to increase anything.
They should just come out with their blueprint [/b]for the sector, roles and responsibilities, tariff guidelines, and then do their licensing regime.
Then leave the distribution part to the private sector, and let [b]competitive forces determine the rates, just like it did for telecom.

dead on point man. let others be blowing big economic grammar. nigerians will always find a way to justify unrealistic ideals with grammar. psssew!

me i go just dey watch una dey deceive una selves, short of a price increase, the only way y'all can get constant light in nigeria in the next 5 - 10 years is if we discover another source of income as profitable as oil, then maybe, just maybe. . .

all the 'anti-price increase people' make una wait for me you hear? i dey come. . .let me enter PHCN first you people will see wehn. . .shior!

Y. Sanusi shuld shut up. Where is the electricity for u to suggest for HIKE. Maybe in their nxt generation.Except there is constant power supply, i disagree with such

oloriburuku ni man ti won pe ni sanusi, olorun ani awon omo ati ebi e lara. koni ku si ibi ti aso e bawa

this man is a disaster. how can you advocate a 200% increase in electricity bills in a country where people struggle to feed themselves? will making more money available to NEPA/PHCN make any difference? what efforts have been made to bring to book all the rogues that have fed fat of NEPA/PHCN all these years? will the increase not correspond with increased fraud at PHCN? i beg make we hear word Sanusi.