Una sell dying product the bought back dying product, play with nigerians money instead of calling doctor china to the resque.

Akinsete19:
Nothing taken over by the Nigerian government ever ends well.

A government that is for all intents and purposes insolvent and is awaiting takeover by whatever foreign creditor blinks first.

29kobo:


My good fellow, read the links. Thank you.

Also, the telecoms were allowed to set their prices, while the discos were not. Big difference.

I insist, read the links.

Nowhere in my comments did I talk about meters, either for or against. Plus, how would the discos get the money for meters? Partly from the profits raised from..... tarrifs.

Read the links, and don't quote me until you do. Thank you.

I think I have engaged you in this topic before...investors need to come with their own money,invest heavily on equipment, prepaid meters,switches,transformers etc not relying on old NEPA equipment to distribute electricity.

OriOko88:
What difference will it make,except those abokis who will be put in charge, later embezzling our light bills,then efcc coming after them,charge them to court,then grant them bail and everyone moves on..nothing changes.

Mk dem buy all d six discos join,light no go improve. Na corruption them go use destroy it. APC really makes corruption looks normal,all those northerners are d one milking this country. E.g accountant general wy embezzle 109b naira and d court still granted him bail,and the 118billion den use cut grass . Nothing go come out of those cases. Most of the monies are in abokis pockets,wey dem go use marry more wives and go on hajj and lesser hajj. How den wan clamour for restructuring and division of d country. Na dem dey enjoy the milk

Naija na cruise walahi

Abokis are the most corrupt people on earth! If you follow their modus operandi, you will realize that that have used religion in brainwashing the other geopolitical zones.

They are kleptomaniacs when it comes to corruption! They steal and destroy our collective resources with reckless abandon and nothing will happen. But who ate the EFCC disgracing and arresting? Southern governors, because they are the ones who will pay for the stealing by the northern oligarch!

So much for one Nigeria! Cheer fraud

All this take over won't solve the problem if there is no way of transparently monitoring what the Genco supplies and what the consumer consume...There just have to be automated metering and the Transmission company should go to Siemen's and collect their equipment's and complete there upgrades. There should be more emphasis on OFFGRID , if we can commission a company to produce sims, then we should commission many companies to provide Solar Panels. .. let us not talk about wind yet and other renewables. All this should not stop the President from signing the Power Decentralization bill when it comes to his table. Once corruption is out and competition comes in, everyone would seat up.

Agboriotejoye:

This is why I keep saying you're ignorant which you find uncomfortable.
Why will anyone compare the conditions under which telcos came in with that of Discos?
Telcos procured every aspect of their operations up to the broom they used to sweep by themselves. You now compare with Discos and Gencos who inherited working albeit dilapidated infra and not only that, got a good deal of financial support from govt through NBET.
Quick question. Can you name the equivalent of NBET in the telecoms sector?
The idea of price setting which is performance based is not unique to Nigeria. Germany and South Africa also have same approach.
So stop making it seem as if performance based tariff review is evil. It's not. It's even better than open tariff because it protects the consumer while ensuring the operator puts his best foot forward.

Well done!you have educated him enough...his only point is cost based tarrif increase.

bizzibodi:

I think I have engaged you in this topic before...investors need to come with their own money,invest heavily on equipment, prepaid meters,switches,transformers etc not relying on old NEPA equipment to distribute electricity.

Which is all very well, until it is time to recoup their investment.

Keep in mind that any price government sets for the discos is always below the actual cost of producing one unit of power, then all I have said begins to look understandable. It took me some time to realize this.

Akinsete19:
Nothing taken over by the Nigerian government ever ends well.

Rubbish, was it not the FG that was running it before selling it to private companies? has power situation improved under these private companies? The situation was even better when it was still under the FG.

Bankowner:
I wonder why NEPA was sold in the first place.

Then you’re unintelligent for wondering since almost 20years. You can actually do a research for years with Nigeria’s electricity problem. Anyone still wondering is a dunce instead.

Hmmm...clap for yourself. You claim is weird, unpatriotic.

Jazzman01:


Rubbish, was it not the FG that was running it before selling it to private companies? has power situation improved under these private companies? Things were even better when it was still under the FG.

This is one of our major issue, we only see a problem when it is someone else doing it,keep focusing on the hausa fulani boogeyman while same thieve from your state and region are looting you dry

OriOko88:
What difference will it make,except those abokis who will be put in charge, later embezzling our light bills,then efcc coming after them,charge them to court,then grant them bail and everyone moves on..nothing changes.

Mk dem buy all d six discos join,light no go improve. Na corruption them go use destroy it. APC really makes corruption looks normal,all those northerners are d one milking this country. E.g accountant general wy embezzle 109b naira and d court still granted him bail,and the 118billion den use cut grass . Nothing go come out of those cases. Most of the monies are in abokis pockets,wey dem go use marry more wives and go on hajj and lesser hajj. How den wan clamour for restructuring and division of d country. Na dem dey enjoy the milk

Naija na cruise walahi

Good �Good �...

bizzibodi:

Well done!you have educated him enough...his only point is cost based tarrif increase.

A summary of what I have been saying can be found in a comment from 2018 by Kingsley Moghalu...

At the time , power cost N20-30 per kwh. Moghalu stated that it was costing us N53 per kwh to produce that single unit.

Since then, the price of power has increased, but the cost of production has increased more than the cost of power (PwC put it at N83 per kwh in 2019).

The guy you quoted, like most Nigerians, and you too, is angry because it means high prices for Nigerians. And he is right. I admit that my point essentially means Nigerians have to pay high prices for power. But then again, charging cheap prices for power in the name of helping the poor...means that you run huge losses, and as has been seen...government has to take over again.

If you do not get it...well, okay.

Bankowner:
I wonder why NEPA was sold in the first place.

power has improved ever since... The people they sold it to wants to make profit... If u want to make profit then you must give people light.... D only thing lacking is we are not generating enough megawatts dat can be evenly distributed... But power supply has improved since Jonathan sold the generating plants and distribution stations

You privatize a national strategic asset that was providing revenue to various arm of govt, by selling to incompetent cronies, you still subsidize the company you sold by providing grants to them.

Now you are trying to further subsidize the incompetence of the thieves who run these discos by setting up a commission to manage their debts or to cover up the damage they have done.

2023 will be terrible for people who rely on the govt e.g civil servants.

This country can only move forward if the govt stop subsidizing the crazy live styles of the politicians.

They re exotic parasites , but parasites all the same.

Judolisco:
power has improved ever since... The people they sold it to wants to make profit... If u want to make profit then you must give people light.... D only thing lacking is we are not generating enough megawatts dat can be evenly distributed... But power supply has improved since Jonathan sold the generating plants and distribution stations

Its a lie power has not improved, you dont know what you re talking, you were living in a village before nepa was sold, you suddenly lost your way to a city where there is electricity you now say power supply has improved? Indomie brat.

Parachoko:


Vice President Yemi Osinbajo, on Friday, said the newly constituted board of the Nigeria Electricity Liability Management Company would enhance ongoing efforts to resolve the liabilities relating to tariff shortfalls for power distribution companies nationwide.

Nah God go punish Atiku and those that sell our Nepal for shikini change

29kobo:


Nothing wrong with the sale of the DISCOS.

This was what was wrong

The issues facing the Nigerian power sector remains multi-faceted but in our view, top on the list is the non-cost reflective tariff. While we acknowledge that the current macroeconomic landscape may not be best suited for another hike in electricity tariffs, we note that the continued adoption of non-cost-reflective tariffs will exacerbate the anemic position of Discos, prevent the overhaul of poor transmission infrastructure, hinder private sector investments and constrain the development of the power sector. With government revenue under significant pressure, we believe government liquidity injections may prove to be insufficient in sustaining the power sector.

Saurce

At the very least, government should let em make a profit by letting them set prices, not the government doing it for them.

Modified

More on the liquidity issues here

I agree with you but on the contrary, some of these Disco's had no will to do the right thing. To them, they bought cash cows. No matter how appropriate the tariff is, without the will to provide good service, it will never end well.

Look at KadunaElectric, they intentionally do not install prepaid meters even if you pay for it while the neighboring KEDCO has been massively metering customers. The logic behind KadunaElectric not metering customers is purely selfish and covering up for their failure. They basically share feeder accrued bill to unmetered customers after deducting prepaid bills. This leads to unreasonably high bill for unmetered customers and then they never have to worry about having loses. This has led to many customers avoiding those huge bills by buying meters. They realised the more meters they installed, the high and unrealistic the unmetered bills will be, so, to keep avoiding loses they prefer to sabotage metering.

Secondly, when it was NEPA, technical employees were put in charge of distribution districts but these Disco's made the leadership of districts business oriented. The Disco's made money a priority in the expense of service they provide.

Bankowner:
I wonder why NEPA was sold in the first place.

Atikulation Abubakar the Cameroonian bisexual sold NEPA and over 100 companies established by our founding fathers. Atikulation will not end well.

adanny01:


I agree with you but on the contrary, some of these Disco's had no will to do the right thing. To them, they bought cash cows. No matter how appropriate the tariff is, without the will to provide good service, it will never end well.

Look at KadunaElectric, they intentionally do not install prepaid meters even if you pay for it while the neighboring KEDCO has been massively metering customers. The logic behind KadunaElectric not metering customers is purely selfish and covering up for their failure. They basically share feeder accrued bill to unmetered customers after deducting prepaid bills. This leads to unreasonably high bill for unmetered customers and then they never have to worry about having loses. This has led to many customers avoiding those huge bills by buying meters. They realised the more meters they installed, the high and unrealistic the unmetered bills will be, so, to keep avoiding loses they prefer to sabotage metering.

Secondly, when it was NEPA, technical employees were put in charge of distribution districts but these Disco's made the leadership of districts business oriented. The Disco's made money a priority in the expense of service they provide.

Thanks, good points you raised.

For me, however, the reason why DISCOS don't meter everyone...my own cynical take on the matter...is that because the tarrifs are not cost reflective (and since a meter has to be set to the government set price, not the price the DISCO would set ideally)...they put the burden more on the unmetered to meet up with their costs...and even then they still lose money.

The way the tarrif system is set up, since government is controlling the price....if the discos metered everyone....they would lose money doing so. So, they deliberately don't meter some....so as to stay afloat.

(That's why I am so against price controls...it leads to a lot of unsavory stuff happening. Humans love to make a huge profit).

etrouble:



Atikulation Abubakar the Cameroonian bisexual sold NEPA and over 100 companies established by our founding fathers. Atikulation will not end well.

What is it with you insulting and cursing people you politically oppose?
Yet you say Obidients are the mad crowd, while you are worse.
The irony is that it's not even Atiku that sold NEPA. Yet you rain curses on him.
Your Tinubu that has looted your destiny away in the name of being godfather of Lagos, when are you going to curse him?

haffaze777:


Nah God go punish Atiku and those that sell our Nepal for shikini change

Jonathan and the PDP in general should get the blame

haffaze777:


Nah God go punish Atiku and those that sell our Nepal for shikini change

How did Atiku sell NEPA?
Tinubu had been looting Lagos since 1999 till today.
Calculate how much that might be.
Yet you support him for president. Someone who is easily the biggest looter in the history of our democracy.

quentin06:


Its a lie power has not improved, you dont know what you re talking, you were living in a village before nepa was sold, you suddenly lost your way to a city where there is electricity you now say power supply has improved? Indomie brat.

how have you made sense with dis response?

Bankowner:
I wonder why NEPA was sold in the first place.

Let's ask those who urged Jonathan to sell everything at give away prices
They claimed that government has no business being in business, forgetting that not every service is meant to be business. Some could be just social services

loosecanon50:
Nothing to see here. It was taken over based on political and business interest without consideration for professional and technological expertise.

Taking over of Discos isn't the problem, it's knowing what to do after taking over. For over how many years now, it's still only 4000-5000mw they can generate. The most populous black nation. Yet, corruption keeps having a field day.

At least, may be we won't be paying high tariff for darkness like we are currently paying

SmartPolician:
Simple things other countries do and move on become rocket science in Nigeria because everyone wants to cash out from the weak system.

I tell u, Nigeria has crude oil and gas , just for them to procure power plants they won’t, how long will it take them to run those pipelines and start powering those plants.
Nigeria na criminal country.

29kobo:


A summary of what I have been saying can be found in a comment from 2018 by Kingsley Moghalu...

At the time , power cost N20-30 per kwh. Moghalu stated that it was costing us N53 per kwh to produce that single unit.

Since then, the price of power has increased, but the cost of production has increased more than the cost of power (PwC put it at N83 per kwh in 2019).

The guy you quoted, like most Nigerians, and you too, is angry because it means high prices for Nigerians. And he is right. I admit that my point essentially means Nigerians have to pay high prices for power. But then again, charging cheap prices for power in the name of helping the poor...means that you run huge losses, and as has been seen...government has to take over again.

If you do not get it...well, okay.

Let me correct this.
I'm not against high prices.
What I'm pointing out to you is that high prices is not a cure for institutional inefficiency.
You believe govt regulated business fail because they don't earn enough. I totally disagree.
Price should not be arbitrary. It should be commensurate with services rendered.
More importantly, the fundamentals need to be gotten right for growth.
There's no guarantee that increase in price to meet costs will guarantee success for these companies.
If that was a fail-safe approach, banks and telcos will not fail. And I hope you know we have had a good number of banks and telcos fail in this country.

Bankowner:
I wonder why NEPA was sold in the first place.

Sold? NEPA was not SOLD! NEPA was shared amongst the slave masters of Nigeria, using our common resources to pay us off.

29kobo:


Thanks, good points you raised.

For me, however, the reason why DISCOS don't meter everyone...my own cynical take on the matter...is that because the tarrifs are not cost reflective (and since a meter has to be set to the government set price, not the price the DISCO would set ideally)...they put the burden more on the unmetered to meet up with their costs...and even then they still lose money.

The way the tarrif system is set up, since government is controlling the price....if the discos metered everyone....they would lose money doing so. So, they deliberately don't meter some....so as to stay afloat.

(That's why I am so against price controls...it leads to a lot of unsavory stuff happening. Humans love to make a huge profit).

I read your comments and arguments with that agbo guy
You both made salient points

You talking about "cost-reflective" tariff. That is a big word
Who determines what is costreflective and what's not, the discos?
And does it mean electricity must become a luxury before it's reflective?
Don't side with the discos because they're just being a smart business man trying to push whatever favors them. They could make profit and not declare it. Some discos are actually cashing out, but act like broke because they want more.

What about people not paying for power? We are not ready for that conversation yet. Government agencies, military barracks etc are all on this table. If discos can achieve 95% remittance rate, the current tarrif rate isn't bad

We compare with Telecom sector, but forget there's competition over there which helps to realize that true cost. Discos hav a monopoly and won't let you know the true cost. They'll leave you to keep calculating how much power costs in US, Europe, in dollars, anyway the narrative favors them

Agboriotejoye:

Let me correct this.
I'm not against high prices.
What I'm pointing out to you is that high prices is not a cure for institutional inefficiency.
You believe govt regulated business fail because they don't earn enough. I totally disagree.
Price should not be arbitrary. It should be commensurate with services rendered.
More importantly, the fundamentals need to be gotten right for growth.
There's no guarantee that increase in price to meet costs will guarantee success for these companies.
If that was a fail-safe approach, banks and telcos will not fail. And I hope you know we have had a good number of banks and telcos fail in this country.

And what I am pointing out is that a lot of the institutional inefficiency is caused by low prices.

Prices that are too low to make a sustainable profit.

When that happens, abuse, stealing, sabotage and inefficiency is bound to follow

At least if prices are cost reflective and government stops paying counterpart funding they would be forced to work hard like beavers for their money. And they will ensure things work well because at the end inefficiency would harm them more. Not like the current status where government was dashing them money to cover their losses.