freemanq:
Power sector in Nigeria is heard by demonic forces

nairalanda1:
Basic problem with power supply is simply solved by letting them SET THEIR OWN PRICES.

Like the GSM sector, like the food sector, like the hotel sector...SET THEIR OWN PRICES.

RepoMan007:
Lies. I don't believe those subsidy increase figures.
Why is the increase coming only after petrol subsidy "disappeared"?

nairalanda1:
Basic problem with power supply is simply solved by letting them SET THEIR OWN PRICES.

Like the GSM sector, like the food sector, like the hotel sector...SET THEIR OWN PRICES.

Penboy:
If you truly read all the post,

End here with your account details.

Penboy:
If you truly read all the post,

End here with your account details.

Leboska:
Where is Fashola former minister of darkness

Almunjid:

... held by...

ogododo:



https://punchng.com/nigerians-groan-in-darkness-despite-power-sector-privatisation-n7tn-investments/

rayopt:
Lol. I laughed reading the headline. Won't even reading all that story because I honestly won't lie, I have never witness the light I am currently having in this Nigeria. I traveled between mowe, Lagos, and Ilorin in this December. The current state of electricity in these places is mind-blowing. And I get that from people in other locations. So, I don't know wat this post is all about.

RepoMan007:
same thinking cap you refused to put on in petrol subsidy removal is what you have embraced here.

Why the cost of generating power wait for petrol subsidy to go before increasing exponentially?

The saved funds from petrol subsidy removal is being targeted by other sectors.

dacool1:


In your mind you think it's there's no price control for TELECOMS

The question you should be asking is how did it jump over 1000% when gas prices did just 200%+

happney65:


Yes,they should set their own prices.

However when they set their prices,they know they are the ones to fix transformers,power lines and availability of prepaid metres. We are not the ones to be doing anything related to electricity again except paying for it. And paying for it means we are getting 247 electricity.

If they can do that. No matter the amount they charge, we shall pay.

If they want to do like the GSM sector which is the right way,they have to do everything included

freemanq:
Power sector in Nigeria is held by demonic forces

ogododo:
They noted that for instance, the government now has to pay N46.66/kWh in subsidy to Abuja Disco from the first quarter of 2023 figures of N2.43/kWh, raising the subsidy figures to Abuja Disco to N43.26bn in the third quarter.

“This is a jump of 1,912 per cent from N2.15bn in Q1 to N43,26bn in Q3, 2023. Similarly, Eko Disco that was N2.55/kWh in Q1 has seen a rise of 1, 676 per cent in subsidy payment as at Q3, 2023,” Adegbemle explained.

He added, “Similar data for Yola Disco shows only a 98 per cent rise in subsidy payment in Q3, 2023. For Yola Disco, cost reflective tariff was N214.57/kWh, but the allowed tariff remained at N65.99/kWh, with the government paying N148.58/kWh, amounting to N15.52bn in Q3 2023.

“Data clearly shows that the high income consumers, or the rich, are benefiting more from the subsidy than the low income consumers that the subsidy was designed for.”


Also, data from the National Bureau of Statistics established that the rich/high income households have a higher electricity consumption pattern than their poor neighbours.

Further report from the NERC also showed that the subsidy payment for the poorest 20 per cent in the non-maximum demand consumers, mainly residentials, stands at measely N0.43bn, while the richest 20 per cent gulps N17.24bn in subsidy payment by the government in the Q1 2023. The middle income group also accounts for N3.36bn in subsidy.

By Q3, 2023, the richest 20 per cent accounted for N117.8bn, while the poorest 20 per cent benefitted only N2.97bn. These figures show clearly that the electricity tariff subsidy has been disproportionately benefiting the rich Nigerian consumers, while excluding the poor ones the subsidy itself was designed for.

“And it is also detrimental to the government finances. The Federal Government is urged to take a quick decision before the situation spirals out of control like the petrol subsidy.

“About N2tn subsidy has been paid since 2015 and there has been negligible investment in the NESI by the private sector (except Azura), which is a clear signal that the commercial viability of the sector has left a lot to be desired.

“Electricity subsidy is not sustainable and we need to start thinking of where else the subsidy we are paying in electricity tariff can be better applied,” Adegbemle stated.

Power minister speaks


In proffering solutions, the Minister of Power, Adebayo Adelabu, in a presentation he made at the recent power retreat, which was made available to The PUNCH by his ministry, said state governments must be allowed to participate in the business of power supply in Nigeria.

He said, “The Electricity Act 2023 now allows, in line with the 1999 Constitution as amended, that states may establish the legal, regulatory and commercial frameworks for their domestic electricity markets. This must happen if we are to increase the geographical footprint of electricity supply and consumption for residents and businesses across Nigeria.

“This evolution from the single national electricity market to a dual structure comprising a wholesale market and potentially, several state retail markets, requires careful consideration of how the transition will take place.

“States, Local Government Areas and the current Discos must work together to invest in reinforcing and extending local distribution infrastructure in a way that enhances competition wherever possible, while also recognising the equitable vested interest that that states have historically had in the shareholding of the Discos.

“State governments, in turn, must recognise that state-level policymaking and regulation is of value only if they attract investment into their domestic electricity markets.”

freemanq:
Power sector in Nigeria is held by demonic forces

Olaide1295:
Privatisation was not properly done.
The TCN which is a major player is still owned by the government and run inefficiently.
The major problem however, is that the market is not allowed to dictate the prices that electricity is traded at.