A Brazilian Company Offers To Buy PHCN For $100 Billion - Business (4) - Nairaland
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| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by DDuke1: 11:57am On Aug 26, 2011 |
Floxyluv: your case is just like asking why a man is selling clothes or why a barber has a saloon, and d simple answer is to make moni of course. the brazillians, the americans d wateva is intrested in buying our power sector to make moni of course, i tink your concern should be if they would want to rip us off, of which at dis point i already feel we are being ripped off yet not getting what we pay for, what could be worse? even if dey rip us and give us wat we want (though i am in no way advocating this) i think it would be far beta than what we have on ground now |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by yahla: 12:08pm On Aug 26, 2011 |
Perhaps it should be loaned out to them for a number of years,let's say 20,and the government should be on board to serve as tariff regulator. Might seem scary to sell off the whole infrastructure to foreigners,but truly,the whole PHCN has always belonged to an elite set of criminals that keep siphoning the economy with no service rendered. So,make foreigners get am for a while jor,at least we'll get true value of possible paid tariff. |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by mrofficial(m): 12:27pm On Aug 26, 2011 |
Even if na $5,000 them won pay, abeg make them sell am! |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by AZeD1(m): 12:47pm On Aug 26, 2011 |
rareman:Nigeria and right policy in the same sentence is fallacy. Everyone wants 24/7 power but unlike telcomms where you can change sim at wheel you cant choose your transmission or distribution company. D Duke: Well if i had $100 billion i'll buy PHCN but as PHCN is right now, no matter who runs it, Nigeria cant have 24/7 power for the next 5+ yrs. As a business man, i'll try to recoup some of my $100 Billion before i make further investments and that translates to increased tariff. The only difference btw this and phcn right now is the tariff you would pay would be correct. Personally if i bought PHCN i would make sure folks in Lekki and VI have light first then the remaining would be given to who ever can pay my bill. The point is do not sell all of PHCN to one person/company. |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by AZeD1(m): 1:32pm On Aug 26, 2011 |
***will not wheel |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by AZeD1(m): 1:34pm On Aug 26, 2011 |
A-ZeD: |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by rhymz(m): 2:02pm On Aug 26, 2011 |
pdozie:who is this raving eeeediot? Make oyinbo also replace ur mama and papa too, monkey! |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by cicero(m): 2:11pm On Aug 26, 2011 |
A man that brings home ant-infested firewood has invited lizards to supper. Our leaders created the ugly situation and foreign investors are looking to cashing in on it. And let's face it, THEY HAVE NO SOLUTION. They are overwhelmed. I strongly believe GEJ would give us a solution if he could, but he can't not to talk of the forces that will resist him. If selling the gigantic failure will give us constant power supply then let them sell to Brazil already. I even prefer Brazil because they will play rough with any person or group of persons that may try to sabotage their investment. |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 2:24pm On Aug 26, 2011 |
Electricity is not a WMD that if you put it in the hands of foreigner that the country will now be insecure. Privatization doesn't mean either if you sell it to foreigners the price will be too much that ordinary poor Nigerians can't afford to pay the bill. If that was to be the case the company will run into debt because those leaving below poverty level in Nigeria is above 70%. The remaining 30% let's say 20% manages to live above 2 dollars a day and the remaining 10% is divided between the rich and the middle class. You can see from that logical idea that as demand increases with supply and price definitely reduces. Sorry, I am not a great economist but I can see that in general law of demand and supply working to the advantage of the people for price to be reduced. Security is not a big issue at all, govt have the power to take over the company if they decided to switch the button off as somebody was alluding to because the plants for generating the electricity are in the country not outside the country, unlike in the case of Russian gas supply to Europe through different distributing countries. Nigeria case is safe! They better sell it at the price before it is too late. |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by rhymz(m): 2:49pm On Aug 26, 2011 |
I want to believe this is not true or just an exaggeration. To start with, I doubt if the whole of PHCN is worth a hundred billion US dollars. Unless these Brazilian investors are up to no good or are gunning for some political control, why would they want to buy PHCN, am assuming that would include power generation, transmission and distribution. Unless the handlers of this country are fools, why would any country in their right senses sell all the aspects of electrical power to one particular company/country? Dont you all see the political suicide that might pose in the future. Yes we support the liberalization of the power sector but that, in itself must be defined succinctly before we put the country in a tight corner that is unexpected. First, to start with, no power company in their right senses will buy up PHCN for that amount and then start another round of heavy investment on transmission and distribution of electrical power generated. Infact, more than anything else, power transmission is capital intensive and in most cases is usually left in the capable hands of the government and not private companies( both for security and economic reasons). One of the biggest challenges of the FG has been in the transmission and distribution of power generated. It is common knowledge that most of the states that have taken the bold steps to build Independent power plants suffered setbacks in the area of transmission and distribution of the generated power to the consumer. By law they are required to channel it to the national grid(PHCN which is FG owned) where it is to be transmitted & distributed nationwide. However, the reality is that, owners of these IPPs don't get paid their contirbutions to the national grid neither are their states beneficiaries of the generated power from the efforts of their state government at generating power. For instance, Rivers state has invested over N84 billion to build gas propelled power turbines at Omoku, Trans Amadi, and Eleme; with total generation capacity of 375mw, 150mw which it produces is pumps into the national grid. Sadly, however, is the fact that the state does not get up to half the amount it pumps into the national grid for its own use. Port Harcourt's peak power demand is put at 150mw; but the oil city, with over 4,000 companies registered with the Port Harcourt Chamber of Commerce and Industry (PHCCIMA) hardly gets 60mw daily. Today, load-shedding is the daily duty schedule of staff of the Port Harcourt zone of Power Holding Company of Nigeria (PHCN). So it is obvious the problem is not entirely that of generation but transmission and distribution of the power generated. Government should lay off its hands from power generation and distribution and face squarely, without distractions, the transmission of the power generated by the private sector. Generation and distribution should be left to the private investors to come in, the capital intensive aspect, which is transmitting the power over long distances through different channels across the country at high voltage should be left in the capable hands of the government. As it is strategic, capital intensive and might pose a security threat in the hands of the private sector. No sane country leaves that aspect of its power to private companies to run or the cold hands of market forces. That way, government can still regulate, protect and provide the much needed sucre in the sector without any disdtractions from meddling with other aspects already taken care of by the private sector. Finally, I think it is folly and shortsighted for anyone to argue for a total lay off government hands from power, it is very risky, in the event of a dispute between Nigeria and the countries with majority stakes in that area, our transmission network will be the first target, that will in effect paralyse the country's ability to cordinate anything between states. Long term effects and benefits must be analyzed before rushing off to liberalize anything, power sector is a far cry from telecom, you don't give it all out to outsider because you want investment. People should be reasonble when making comments on issues they barely understand the dynamics of their workings. |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by rhymz(m): 3:10pm On Aug 26, 2011 |
D Duke:, So you think the Brazilians will buy PHCN and ofcourse own all the existing transmission and distribution network not to talk of already generated power too and still let government control how they run the power sector? What makes you think a power company will overprice PHCN, knowing fully well the comatose state of both our transmission system distribution network(which is essential in selling the power generated) and still gear up to set up the transmission system with its attendant huge capital investment required? Unless this story is not true then there is more to such a price tag thab meet the eyes. |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 3:13pm On Aug 26, 2011 |
@rhymz There are things I don't agree with on your comment: 1. Generating electricity is capital intensive but on a long run profitable business. They know that they are not just going to make profit back within short period of time. 2. I don't see any thing that makes it insecure here. The govt. is a very powerful entity. It regulates many things in the country and the MOU signed by both parties most have something of that issue addressed in it. 3.What is the purpose of ministry of power and steel? Don't thing the govt. is so stupid they don't have that in mind before planning this privatization thing when they know the PHCN is off no good to the development of Nigeria at the moment. 4. The Rivers state power generation,Shell ,etc are state govt and private investment you are now seeing that PHCN is what's needed to be privatized. The reason why I thin those are added to the grid is for the cost of distribution to be reduced and for other factors. Brazilians are not paying for those. Don't think those issue of transmitting, distributing and generating of electricity need to be addressed?The govt. have try to do that they couldn't address the issue is better we leave those areas to those who can do them. 5. Dispute between Brazil and Nigeria is govt. not private. The private people are concern about their businesses not govt. We are always to scare of things we don't understand - I think that is shortsightedness! |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by amtheone(m): 3:24pm On Aug 26, 2011 |
Shipit and Jenifa what is the way forward. I think since Independence Nigeria has never celebrated 24hr power supply in a week. We have seen how our leaders past and present have failed us woefully. Pls, tell me in clear term what u think without privatization, that this power issue will be a thin of the past? Don't forget that Nigerian govt has spent billion of dollars and yet no light, and we are forced to pay for the lite that we are not using before the advent of prepaid meter if u have one. |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by tefund(m): 5:54pm On Aug 26, 2011 |
If we should not sell to the brazilian, what else should we do, after all mtn and co. came here and turn things around for telecom, can we say we are worse off? |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by tefund(m): 5:58pm On Aug 26, 2011 |
i would not mind if foreigners control 100% of power infrastructure,so long as we have stable power supply which is crucial for economic growth.We have been independent for 50 years,what have we done with it? |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by manny4life(m): 6:00pm On Aug 26, 2011 |
Damn, I never thought the company had assets up to that amount. $100 billion? Sounds like someone had added another zero(s) to that amount. Take a look at the powers holding companies around the world generating way more than what PHCN is generating, I don't think they are worth $100 billion, anyway, if that's what they say, so be it. |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by innason(m): 6:21pm On Aug 26, 2011 |
they should sell the stuff sharp sharp but not 100% sales. though the disadvantage will be the staffs the brazillian coy will sack cos PHCN is over staffed with old men in the head offices. higher electricty rate. The advantages the hope of 24 hr light. |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by Nobody: 7:50pm On Aug 26, 2011 |
^^^^ I thought they have been sacking the heads for sometime now! I heard those at the head of power are making the power company not to progress in providing stable electricity in the country, I also heard they are usually bribed by generator sellers to stop providing constant electricity. Which ever case is right it proves they are not useful to the power industry - they should be relieved of their jobs! |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by florinch: 2:01pm On Aug 27, 2011 |
monopoly isnt an answer especially for a state like Nigeria , privatizing it would be a better option, like someone said if you cant use what you have .why not sell it to someone who can,  |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by globexl: 2:49pm On Aug 27, 2011 |
Abt 10yrs ago, a bunch of fools told us that they were going to buy NITEL for $1.5 billion. I laughed till I could laugh no more. I had wondered what they were smoking to think that NITEL was worth any penny. Those fools deposited $100 million of borrowed money and later had to forfiet that deposit because they could not find any insane banker in the world willing to invest $1.5 billion in that peice of shi.t. Till today, we are still looking for someone to take Nitel for just $400 million, but no takers. Nitel has a negative networth, The Fg has to pay someone to manage Nitel for at least 15yrs before it can consider selling to for a penny. That is the fact. Today, you Nairalanders are throwing $100 billion as if it was small change. With all due respect, I think most of you are quite ignorant. No one will be taking such a big risk by paying even $1 billion cash for Phcn. To say that PHCN is worht $100 billion is pure ridiculous fantasy. Let me give you some examples below of what some of the worlds biggest and most profitable coampnies are worth by market capitalisation DEUTSCH BANK- ANNUAL REVENUE= $44 BILLION - MARKET VALUE $52 BILLION DEUTSCH TELECOM- REV.= $72b , market value $83b HSBC- rev=$200b, market value =$80b China mobile- rev=$200b, market value = $73b Nokia- rev=$120b, market value=$53b Intel- rev=$109b, market value =$43b France Telecomm - rev=$88b, market value =$60b Unilever - rev=$101b, maket value = $59b Tokyo electric power - rev= $36b, market value =$53b Iran National oil campany - market value =$55b Glaxo SmithKline - Rev=$100b, market value =$46b and so on and so forth. each of the above listed companies have net profits of $2 billion per annum or more.Can anyone tell me or guess Phcn's revenue and profit? To say that PHCN is worth $100 billion is to say that PHCN has more value than : Diambler Benz, Volkswagen, Ford motor comapnay, Lg electronics, Honda motor company, Conoco Phillips, Sony, Siemens, Vorizon,Panasonic, Goldman Sachs , etc. PURE NONSENSE. The argument that controlling a nation's power supply is more than just money is a load of crap. Generating and selling power is a for-profit business, pure and simple. With $100 billion, Anyone can build brand new complete power generating and distribution systems for at least 20 African countries from scratch. LETS STOP DELUDING OURSELVES. |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by donguutti: 4:29pm On Aug 27, 2011 |
globexl:ma friend thank u very much, and to think we had to go 4 pages for us to see reality, why didn't the minister mention the name of the so- called company |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by macroworld: 5:43pm On Aug 27, 2011 |
That figure is quite high or unrealistic. If that is offered on the table, I will be very careful ! |
| Re: A Brazilian Company Offers To Buy PHCN For $100 Billion by solwonuola: 9:57pm On Aug 27, 2011 |
Good thing to sell PHCN since it's not functioning well. I heard that very soon federal government will sell Nigerian police force to one America company for $4Billion due to lack of security in Nigeria. what is your opinion on this? please advice |
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