Thanks for this comment. But I will also stress here that the idea was to have close to 24 hour light if not full 24 hrs after 5 years when private participation is done. But since we did not, it then means it has failed not minding the improvement from what we use to have before the privatization. Nigerians are not good investors, we are looking for money instead of the business. The idea behind investment is when you grow your business, money will come. But when you are interested in grabbing money business will die. Most Nigerian are interested in grabbing money and when they noticed that the business has failed it become too late.

NB: Please let us use correct English while posting on Nairaland to maintain the rules. Those abbreviation are for pal to pal discussions.

Nbote:

U ppl can't stop amazing me.. I thought U guys all claimed d power sector was now beta than it has ever being and d govt itself claimed Nigerians now enjoyed steady power supply? Now help me understand how dis doesn't contradict both d govt and U lots? If d sector has improved like U ppl claim, why Dis?

ashantitope:
Who to blame for this because I know someone will shout BUHARI name now for what is not aware of the generations of the matter and those that give out the contract are they not aware of all this?

Buhari destroyed the power sector by making a lawyer minister for power

I think its long overdue. Too many waters have passed under the bridge.Thank God we are in the last lap of review. By December 31st their contract will be terminate.

BEDC should be number one, those people na scam

Onijagidijagan:
Jonathan messed up big time , thank God Atiku did not win d election ..he will privatized everything .

But u people claimed that Apc n buhari have been giving u people constant power, 7000MW

Terminated.

uwa244:
I think its long overdue. Too many waters have passed under the bridge.Thank God we are in the last lap of review. By December 31st their contract will be terminate.

Please God let BEDC be among them.
BEDC IS A COLOSSAL FRAUD.
BEDC IS A NIGHTMARE TO DELTA AND EDO STATE.

PrecisionFx:


But u people claimed that Apc n buhari have been giving u people constant power, 7000MW

you dry mind them

Abati60:
Is this government cursed?

a typical example of EDUCATED illiterate.....Ur IQ is so low

bankylan:

Your position has nothing to do with ATC&C loss the Discos are faced with. Buying over by the govt will only worsen the matter. This is what you get when the people who don't know about power and electricity market are the ones in charge.

loses are a major problem faced by the discos but don't also forget that the discos themselves have not invested enough to tackle some of their problem. The discos were sold to people who had no money to invest and revamp the system and for that reason we have not seen much improvement.

PrecisionFx:


Buhari destroyed the power sector by making a lawyer minister for power

Ok now I understand you the power sectors is functioning well before Buhari got power abi? If your answer is YES that means you stay in Gabon before now and go back to the write up the and see what give out the contract and when did they give it out and also name those minister that have held that ministry with power experience?

Do you want at least 6 hours uninterrupted power supply daily with zero noise, no pollution and yet affordable and efficient?
We hate you covered, check my signature below and you're just a call/dm away from achieving your energy need.

Repossessing the DISCOs will be the worst mistake this government will ever do. If the govt has N739bn to spend, the TCN owned by them is even performing worse than the DISCOs. Let them do wonders in TCN to show a clear difference between a govt fully owned power company and the privatised ones. They can also use the money to build new fully government owned power plants that will generate power to the grid. The TCN owned by the govt and the DISCOs are all underperforming. If you are a business man and understands the power value chain in Nigeria, you will know that the fault is not totally from the DISCOs. The power industry isn't performing majorly because our government is underperforming in all aspects. Those disco owners are businessmen that will be happy to maximize their electricity supply to make money if everything is put in place.

The industry is underperforming simply because of over regulation and the government not being serious. How does the government want them to perform when the tariffs are regulated below cost price that make all the DISCOs to be operating at loss for most periods post privatisation? Where do you expect them to bring money to develop their networks when they are losing money yearly and barely existing? Do you expect a business man to invest more money into a business that is operating at loss? It is never done in business. The banks do not lend them money because they aren't doing well and so not credit worthy. The government is simply slowing down Nigeria development by regulating power tariff below cost and does not subsidise it in anyway. If all you have is street knowledge, then you don't know the real issues here. It is costing Nigeria more in terms of opportunity cost. Business men are there to make money. They only invest more into the business when it's doing well. The reinvestment may be via plowback profits or loans from financial institutions. Financial institutions only grant such loans when they are sure the business is doing well. So if the business isn't doing well, forget about further investments into it let alone a capital intensive sector as the power industry. No body will gamble with the enormous funds the industry needs till the government put measures in place that guarantees adequate return on investment.

There is a lot of money in the world financial market waiting for where to be invested in. Those money only get invested in economies that have shown to be serious in their developmental pursuits via their institutions, policies and regulations. If we need growth in the sector, we have to get those right.

This is a very welcome move by the government. BEDC is a total failure. Privatisation of power utility was the most stupid act of the drunken jonathan regime.

Abati60:
Is this government cursed?

The government that sold PHCN to incompetent hand was cursed. This government is only trying to rectify the mistake.

Bytheway, are you a hater of good news?

MyGeneration:

discos didn't get anything wrong its all part of the corruption in Nigeria.

discos were complaining that Nigerians are not paying much for electricity, so they strike a deal with petroleum companies who settle them inorder not to bring light. This is part of the reason they are all frustrating distribution of prepaid meters in Nigeria.

Lol. Where you there when they stroke the deal? The main issue with the power industry is that the average man on the street does not understand the real issues coupled with a lying government.

Can we know how much Jonathan collected from these bungling discos? We need that to know how much Jonathan has shortchanged Nigeria.

Ferdinandu:
That's the only way to go. Obviously they are failed investors. Power bills keeps increasing but no improvement in power supply. Jonathan and his gang messed up the sector with outright sale of of Discos without a precondition of retrieving it back if they fail. Now we have to spend billions of dollars to get it back. Back then they were just shouting comparison with mobile telephony up and down without putting into consideration that that the 2 businesses are far different from each other. I don't know why dunces keeps ruling us, we keep moving in diminishing circles, and yet we still live and fire prayers in all religious centres that things are going to change in this country.
We are all foolish in this country. Gush

So this Jonathan theory us still lives in some of you? When will you ever wake up? We have seen countries where weak economies have been made great again. What difference has this government made in the lives of people? We have been told that Nigeria has become the poverty capiral of the world. Insecurity, destruction of lives and property has not been tackled by this government; yet you people keep playing the Jonathan tape. When will you move on?
Corruption has taken a more dangerous turn. All the promises have failed. Nigeria has glided to a very dangerous level with the possibility of breaking up. People are arrested arbitrarily. Freedom of speech was guranteed under Jonathan and you could see that no one who has become a political office holder was detained by Jonathan. Today arrests everywhere in the name of hate speech.

Fashola told us that power generation had risen to over 7,000 megawatts. While some believed him, clear eyed people knew it was all political propaganda. If government buys DISCOs back, that is another avenue for embezzlement and looting for some people.

Be honest to yourself. The problem Nigeria faces is corruption. Buhari cannot tackle it. We believed him before 2015, but we can see clearly now the failure. APC has not answer to the problems of this country.

Ummm Nigeria we hail thee! They sold the companies to their cronies ,enriched themselves with collection of ghost bills returns and refused to fund the critical sector. They failed the nation but not themselves. God will help the Govt to get it right like the communication sector. God bless Nigeria .

Nbote:
U ppl can't stop amazing me.. I thought U guys all claimed d power sector was now beta than it has ever being and d govt itself claimed Nigerians now enjoyed steady power supply? Now help me understand how dis doesn't contradict both d govt and U lots? If d sector has improved like U ppl claim, why Dis?

Power can only be said to have improved if it reaches the consumer, and this is only possible by effective distribution. Electricity supply will only get worse where there is failed and fraudulent DISCOs.

Got it?

MondayOsunbor:


Failed Investors ! Buhari will spend the money public Money
And convert it to family business using fronts mark my words

Do not mind them. Buhari that will resell discos to his loyal saints at a away price.

MondayOsunbor:

Failed Investors ! Buhari will spend the money public Money And convert it to family business using fronts mark my words

What is this one saying?

chibjohn:
Repossessing the DISCOs will be the worst mistake this government will ever do. If the govt has N739bn to spend, the TCN owned by them is even performing worse than the DISCOs. Let them do wonders in TCN to show a clear difference between a govt fully owned power company and the privatised ones. They can also use the money to build new fully government owned power plants that will generate power to the grid. The TCN owned by the govt and the DISCOs are all underperforming. If you are a business man and understands the power value chain in Nigeria, you will know that the fault is not totally from the DISCOs. The power industry isn't performing majorly because our government is underperforming in all aspects. Those disco owners are businessmen that will be happy to maximize their electricity supply to make money if everything is put in place.

The industry is underperforming simply because of over regulation and the government not being serious. How does the government want them to perform when the tariffs are regulated below cost price that make all the DISCOs to be operating at loss for most periods post privatisation? Where do you expect them to bring money to develop their networks when they are losing money yearly and barely existing? Do you expect a business man to invest more money into a business that is operating at loss? It is never done in business. The banks do not lend them money because they aren't doing well and so not credit worthy. The government is simply slowing down Nigeria development by regulating power tariff below cost and does not subsidise it in anyway. If all you have is street knowledge, then you don't know the real issues here. It is costing Nigeria more in terms of opportunity cost. Business men are there to make money. They only invest more into the business when it's doing well. The reinvestment may be via plowback profits or loans from financial institutions. Financial institutions only grant such loans when they are sure the business is doing well. So if the business isn't doing well, forget about further investments into it let alone a capital intensive sector as the power industry. No body will gamble with the enormous funds the industry needs till the government put measures in place that guarantees adequate return on investment.

There is a lot of money in the world financial market waiting for where to be invest in. Those money only get invested in economies that have shown to be serious in their developmental pursuits via their institutions, policies and regulations. If we need growth in the sector, we have to get those right.

1.God bless you

2.I'm sad I have only one like to give this comment.

3.The bolded....is why the DISCOS and GENCOS are insolvent. And both the previous and present admin know it. But allowing the DISCOS and GENCOS set their own price means higher bills, and that's not poltically popular.

4.The government should deregulate power, and stop this attempt to reposses the DISCOS...because we would be back to square one.

chibjohn:

Lol. Where you there when they stroke the deal? The main issue with the power industry is that the average man on the street does not understand the real issues coupled with a lying government.

do u mean pdp govt

The precondition was if they didn't perform well govt will take it back and give them some percentage cus these disco companies paid a lot to get license to conduct business, but most of these energy companies did not conduct a good feasibility study on the environment to ascertain the amount of decay in the power sector.

Cantonese:



So this Jonathan theory us still lives in some of you? When will you ever wake up? We have seen countries where weak economies have been made great again. What difference has this government made in the lives of people? We have been told that Nigeria has become the poverty capiral of the world. Insecurity, destruction of lives and property has not been tackled by this government; yet you people keep playing the Jonathan tape. When will you move on?
Corruption has taken a more dangerous turn. All the promises have failed. Nigeria has glided to a very dangerous level with the possibility of breaking up. People are arrested arbitrarily. Freedom of speech was guranteed under Jonathan and you could see that no one who has become a political office holder was detained by Jonathan. Today arrests everywhere in the name of hate speech.

Fashola told us that power generation had risen to over 7,000 megawatts. While some believed him, clear eyed people knew it was all political propaganda. If government buys DISCOs back, that is another avenue for embezzlement and looting for some people.

Be honest to yourself. The problem Nigeria faces is corruption. Buhari cannot tackle it. We believed him before 2015, but we can see clearly now the failure. APC has not answer to the problems of this country.

Actually GEJ is to blame FOR one thing...when setting up the DISCOS, he also ended up setting the rate at which they charged bills.

So, to cut a long story short...the DISCOS charge 30% of the actual cost, while government pays the remaining 70% via something called NIBET.

Of course, government has had issues paying the 70%...and anyway, the DISCOS cannot set their own prices, meaning they are running at a chronic loss.

Also, the price setting drove away a lot of foreign investors....

As for what Buhari is proposing to do, it would only make things worse. (Back to the bad old days of NEPA).

The truth is, you Nigerians don;t want to pay the actual cost of power. Hence the whole farce of GEJ making things hard for the DISCOS and GENCOS at their initiaiton.

You cannot run a business at a loss.

wacuc0:
Thanks for this comment. But I will also stress here that the idea was to have close to 24 hour light if not full 24 hrs after 5 years when private participation is done. But since we did not, it then means it has failed not minding the improvement from what we use to have before the privatization. Nigerians are not good investors, we are looking for money instead of the business. The idea behind investment is when you grow your business, money will come. But when you are interested in grabbing money business will die. Most Nigerian are interested in grabbing money and when they noticed that the business has failed it become too late.

NB: Please let us use correct English while posting on Nairaland to maintain the rules. Those abbreviation are for pal to pal discussions.

Yes, you have spoken well.....BUT the issue is that the regulation setting up DISCOS and GENCOS does not allow them have adequate return on investment.

Government was setting prices for them, making it diffiuclt for DISCOS and GENCOS to make a profit.

MyGeneration:

do u mean pdp govt

You said the DISCOs stroke a deal with petroleum marketers not to supply power. I just asked if you where there when the deal happened.

Cantonese:



So this Jonathan theory us still lives in some of you? When will you ever wake up? We have seen countries where weak economies have been made great again. What difference has this government made in the lives of people? We have been told that Nigeria has become the poverty capiral of the world. Insecurity, destruction of lives and property has not been tackled by this government; yet you people keep playing the Jonathan tape. When will you move on?
Corruption has taken a more dangerous turn. All the promises have failed. Nigeria has glided to a very dangerous level with the possibility of breaking up. People are arrested arbitrarily. Freedom of speech was guranteed under Jonathan and you could see that no one who has become a political office holder was detained by Jonathan. Today arrests everywhere in the name of hate speech.

Fashola told us that power generation had risen to over 7,000 megawatts. While some believed him, clear eyed people knew it was all political propaganda. If government buys DISCOs back, that is another avenue for embezzlement and looting for some people.

Be honest to yourself. The problem Nigeria faces is corruption. Buhari cannot tackle it. We believed him before 2015, but we can see clearly now the failure. APC has not answer to the problems of this country.

My friend mind yourself. Nothing concern me with PDP or APC war of words. I just need light 24hrs at affordable rate. I don't have short memory Jonathan was a total failure and so also Buhari

The discos were sold to 'friends' of government who thought they were buying money printing machines in the style of the old NEPA. But they met a different reality on ground when corporate customers resisted being ripped off via estimated bills and the armed services simply refused to pay

Most of the heavy industrial users have since shifted to gas. So the discos stopped deploying meters and spread out the revenue shortfall via estimated billings to private homes and the bulk of midlevel companies who have no choice. But even that is set to change via legislation to enforce proper billing.

Jonathan messed up the privatization process but Buhari is the worst chief executive in Nigeria's history. The biggest mistake FG can make is to buy back the discos permanently. Put them in receivership, commission a proper business study to determine realistic tarrifs and deploy (repayable) intervention funds under strict monitoring. Any businessman who embezzles such funds must be sent to jail asap. Buhari obviously lacks the mental & moral integrity to undertake such far reaching economic reforms, seeing as he is surrounded by degenerate criminals like Akpabio, Kyari, Amaechi, Fowler et al.