Can you imagine, mehn this country ehn

Sunnyja:
Some online supporters will tell you about second Niger bridge that has been completed on paper.

they are receiving themselves with niger bridge.

kikero:


Yes, they were paying subsides for the power sector because that was the structure they met in place which was enshrined in law by the previous government

The previous government, while privatizing power, put in place a system whereby discos were forced to charge below the cost of production of electricity

This put discos in a difficult situation. As a result, they had to keep on rejecting power because they have been making losses due to the fact that it costs 53 naira to produce one kWh of power, yet discos had to sell it between 21 to 30 naira.

So the current government ended up paying discos subsides of a trillion naira each year, partly with loans to prevent them from losing money and collapsing. Even then it isn't enough because that just covers the difference between the cost of production and selling power

Of course, the current government could not reverse the system without falling into legal issues

Slight correction, subsides on power between 2015-18 amounted to a trillion naira , not trillion annually. The error is regretted

One trillion naira. Jesu!!!!


Truth is government makes some loot from those funds as no private individual will ever involve in such a business. The reason nothing works is that people benefit from the failure of infrastructure.

These people can lie. They are always removing subsidy from one thing or the other. After removing subsidy from fuel and electricity this year, next year they will remove another subsidy again forgetting they removed it this year. By the fire will be selling at 500.
They don't pay for electricity and fuel that's why they can always remove subsidy. They can't remove from their salaries and allowances. They can't remove from the case they buy every year. What have they ever done with all the money they remove from fuel every year?
God will punish them down to their 4th generation. Their children will be useless to them. They will not die until they spend all the money they've stolen on medication.

Now a serious government is in play. If fulani herdsmen too are tackled, this will be one of the best administration in Nigeria's pathetic history.

kikero:


Yes, they were paying subsides for the power sector because that was the structure they met in place which was enshrined in law by the previous government

The previous government, while privatizing power, put in place a system whereby discos were forced to charge below the cost of production of electricity

This put discos in a difficult situation. As a result, they had to keep on rejecting power because they have been making losses due to the fact that it costs 53 naira to produce one kWh of power, yet discos had to sell it between 21 to 30 naira.

So the current government ended up paying discos subsides of a trillion naira each year, partly with loans to prevent them from losing money and collapsing. Even then it isn't enough because that just covers the difference between the cost of production and selling power

Of course, the current government could not reverse the system without falling into legal issues

Slight correction, subsides on power between 2015-18 amounted to a trillion naira , not trillion annually. The error is regretted

Why does it cost N53 to generate 1KW of electricity in the first place? How did they arrive at this figure?

kikero:


Yes.

Here is how it worked (I've been reading a bit )

1. When discos and gencos were set up, the government of your hero GEJ in order to keep prices low made discos sell power at a low rate...with the idea that government would pay them a subsidy of sorts.

2. Government has been struggling to pay that subsidy since then , especially after APC took over. In 2016,the discos took out a paid advert begging government to pay up.

3. Today, as one report put it, government has been spending 1 trillion naira annually subsidising the power sector.

4. This is because it costs 53 naira to produce one kWh of power,while we pay 30 naira or less till recently ( and the recent increase affects some customers not all). That means a loss of 23 naira at least per power unit sold

5. This makes it difficult for discos to pay gencos and this is why discos reject electricity. When you are operating at a loss, you can't buy stuff.

6. Gencos, especially the gas reliant ones, have to pay for gas . In dollars. From the open market. CBN hates releasing dollars to them.

7 . Banks won't give loans to the power industry because no one loves loaning cash to a subsidised industry

8. Hence the recent price increase. In my opinion, government should even hands off setting prices and let the discos look for money. Power would be more expensive, but at least, we save money from not paying subsidies

9. That's a brief history of the issue

You need to read more brah. Govt does not pay subsidy on electricity the way it does in oil sector.
Gencos are the ones who produce power not Discos. When they produce, the TCN act as off-takers who take the power of them and advertise to the Discos the available power to be bought. Unfortunately, our Discos just like the marketers do not have the financial muscle to buy the electricity you and I desire, and for which they have the infrastructure to deliver. So, the same govt who is the TCN as off-takers also have to be the financier of the Discos with the proviso that the Discos pay later. Unfortunately, by the time the Discos who now act as hawkers take the goods to the market to sell, the come back claiming to be able to sell only a fraction of the electricity they were given on credit. Thus, govt is not able to recover all the money it spent buying electricity off the Gencos and transmitting them.
The buyer is called NBET. So, in actual fact, Gencos are paid in full for the power they supply by NBET. But Discos who are given power on credit come back to claim they were not able to sell all they were given. Under normal circumstances, this failure to sell all they were given should attract a penalty, but the Discos now make a claim that with what they sold, they should break even if not that they feel it was sold too cheaply. Note that Discos never bought the power. But somehow, they have an idea of how much it should be sold. It is this anomaly that now is interpreted as subsidy.
Let's look at how it should be normally and you'll see that if we say we are not producing enough, how come Discos are still not able to sell all the little we say we are producing? These are the issues we should first look to resolve instead of just jumping up to capitalist theories.
Like I always tell you. Nigeria's problems are usually more of structural than financial. The transparent, prudent and meaningful use of our resources is our problem not necessarily finance. Covering it with a financial cloak is just shying away from our responsibilities.

MISSCONGENIALITY:
These people can lie. They are always removing subsidy from one thing or the other. After removing subsidy from fuel and electricity this year, next year they will remove another subsidy again forgetting they removed it this year. By the fire will be selling at 500.
They don't pay for electricity and fuel that's why they can always remove subsidy. They can't remove from their salaries and allowances. They can't remove from the case they buy every year. What have they ever done with all the money they remove from fuel every year?
God will punish them down to their 4th generation. Their children will be useless to them. They will not die until they spend all the money they've stolen on medication.

AMEN, AMIN, Ase, Ise! Gbas gbos! Hate speech, DSS invitation loading lol

yemi1504:


AMEN, AMIN, Ase, Ise! Gbas gbos! Hate speech, DSS invitation loading lol

DSS can not invite a broke ass like me. They know I won't agree to go back home cos f9d no dey for my house. They only invite people with plenty money

MISSCONGENIALITY:
DSS can not invite a broke ass like me. They know I won't agree to go back home cos f9d no dey for my house. They only invite people with plenty money

Lol