adenigga:



Source: https://punchng.com/FG-warns-saboteurs-as-power-generation-rises-to-4,800MW

There is no cabal anywhere. if you do the right things, the right things will happen.

We sow maize, but we want to reap yam!

Why didn't the NITEL cabals stop MTN and ECONET then? When you make the right amount of investible funds available and execute the projects diligently, we will have the desired outcomes.

Why should you plead with the cartels?just Go ahead and fix the power sector and throw whoever is sabotaging your effort into prison.

This does not concern consumers.

Citizens are out of this situation.

We are talking about a bigger issue here that involves government, investors, companies in charge of power sector business.

nairalanda1:


It's because we don't want to pay market price for electricity

Other African countries do that, that is why they have better power outcomes. We don't, here we are.

You get what you pay for. No profit , no money to fix transmission and generation.

Right now, we should be paying 184 per kWh . Apart from band a, most of us pay 50 to 70 naira per kWh. That's 80% of consumers. Naturally no profit is made, and government subsidies are not enough.

And gas suppliers are getting fed up with being owed.

Dis is not a matter of tariffs.

And who you is from our tax dat Federal government must use to develop the power sector? What is dis!

nairalanda1:


Respectfully, I disagree

The experts have repeatedly stated that our lack of a cost reflective tarrif is why we don't have good enough power.

We are paying less than 70 naira per kWh, meanwhile the cost reflective tarrif is supposed to be 184 naira per kWh

In 2019, we were.paying between 20 to 30 naira per kWh. Cost reflective tarrif was 58 naira at least.

I agree most of us are poor and I agree most of us have never had good government, but you cannot run a power company at a loss and expect miracles

Indeed many discos have fallen because of low profit. The nesi owes the gas companies trillions of naira.

Even the corruption and lack of planning is a result of lack of profitability. Similar things do not exist in sectors that are allowed to set their prices because it would harm their bottom line.

The only way this system we have can work is if government raises tax to gdp above 30% or even 50 % or more. Especially since a subsidy of at least 3 Trillion naira per annum is needed. But sadly that is not possible. Even fighting corruption, which we got to do, and must do, won't raise the cash. And no investor is going to come and invest in a sector where 80% of people are paying below the cost reflective tarrif. I mean it harms their bottom line.

We need money to harness all that latent gas and hydro power. And unless government is ready to raise money via taxes, nothing will change.

God knows I wish there was another way. I effing wish so.

What has tariffs got to do with the situation on ground? Thats not the issue.

nairalanda1:


I wish it was a lie.

But at the moment, the cost reflective tarrif is 184 naira per kWh. 80% of consumers pay below 75 naira per kWh

That means losses of 110 naira per kWh of power sold. To cover the losses, government has to pay a subsidy of 3.7 trillion naira or more

We are paying for darkness because we aren't paying enough for 24/7 light

Would you run your business at a loss to help the poor.

That's why you buy transformers and poles and wires. You ain't paying enough for the disco to buy them in the first place

Corruption is the main thing.
Even if we pay high tariff, will the government play their own part?

nairalanda1:


Yes.

Plus billions aren't enough, the electricity sector needs trillions of naira in investment yearly. Like now the government need to pay subsides of 3.7 trillion naira yearly, which is what they spent in 16 years for power.

And once there is a cost reflective tarrif, there would be profits and no room for corruption in the sector

Taxes! And an average Nigerian man does not have purchasing power! No point.

nairalanda1:


Taxes. Raise tax to gdp from 10% to 40-59%

Have you ask why we are paying 70naira or less? This is the fact.

nairalanda1:


But

1. Service no dey reflect charges. We are paying 70 naira or less for something that cost 184 naira.

2. Subsidy is not enough. Government needs to be paying 3.7 trillion naira at least every year to cover resulting losses

The main issue is to fight corruption. Nigeria government know what to do but wont do it.

nairalanda1:


So how else do we raise the money.

Fighting corruption won't raise enough.

Getting a diversified economy takes time and is dependent on stable power supply.

It's either cost reflective tarrif or taxes or we beg IMF and the Chinese for loan

Love800:
The main issue is to fight corruption. Nigeria government know what to do but wont do it.

Read your responses.

It's still tarrifs. You are free to disagree.

The problem remains that it is impossible to run a electricity company when you are selling electricity at 70 naira when you should be selling it at 184 naira, and when subsides should be 3.7 trillion naira yearly yet government pays less than one trillion on subsides.

You end up with losses , poor electricity, customers having to buy transformers and such and a mega debt to the gas man.

And lots of corruption because subsides mean free money . Where there is free money.

Let's even talk about power theft self. 40% of Nigerians don't pay for the power they use. And then there is meter bypassing.

And situation is so dire that discos have to rip off customers via estimated billing to survive


Yeah, so the mess happens.

I know people are poor, but the hard thing is either we sell power at a profit and see an end to inefficiencies or we just go and take a loan or we all.forget about power and live in darkness.

Welcome to reality. You don't have to like it

And for effs sake, even if we end corruption, nothing will change so long power is sold at a loss

nairalanda1:


Yep, we have no choice after all.

It's either we charge at least 184 per kWh, let the power companies raise prices when they need to and stop paying subsidies.

And make sure stealing of power is prosecuted.

Power companies should be allowed to raised prices when they need to, stop paying subsidies and stealing of power should be prosecuted.
If power companies raised prices, the poor will ask government for subsidy and if subsidy is not possible, they will result to stealing of power.
U just want to make sure that the government suffocates the poor. Because you're blocking every way the poor people can breath.

Tetrahedron:
Don’t warn them!
Shoot like 3 people sighted vandalizing the power cables on spot, the rest will learn

Exactly what I have been saying
Vandalizers should be killed
Others will run

Tetrahedron:
Don’t warn them!
Shoot like 3 people sighted vandalizing the power cables on spot, the rest will learn

He will not, because his conspiracy theory is just the foundation for failure soon.

That is your take.
Well, thanks for ur reply.

nairalanda1:


Read your responses.

It's still tarrifs. You are free to disagree.

The problem remains that it is impossible to run a electricity company when you are selling electricity at 70 naira when you should be selling it at 184 naira, and when subsides should be 3.7 trillion naira yearly yet government pays less than one trillion on subsides.

You end up with losses , poor electricity, customers having to buy transformers and such and a mega debt to the gas man.

And lots of corruption because subsides mean free money . Where there is free money.

Let's even talk about power theft self. 40% of Nigerians don't pay for the power they use. And then there is meter bypassing.

And situation is so dire that discos have to rip off customers via estimated billing to survive


Yeah, so the mess happens.

I know people are poor, but the hard thing is either we sell power at a profit and see an end to inefficiencies or we just go and take a loan or we all.forget about power and live in darkness.

Welcome to reality. You don't have to like it

And for effs sake, even if we end corruption, nothing will change so long power is sold at a loss