Is NEPA on colos? What could be the reason? It’s almost three months now we’ve done without electricity and none of their staff have cared to announce in detail what the problem is. The grid has been falling without rising for almost two decades. The price of petroleum products is too high for someone to consider primarily running on generator sets.

What is this madness?!

The electricity company is designed to sabotage the economy of Nigeria.

eepeepook:
Is NEPA on colos? What could be the reason? It’s almost three months now we’ve done without electricity and none of their staff have cared to announce in detail what the problem is. The grid has been falling without rising for almost two decades. The price of petroleum products is too high for someone to consider primarily running on generator sets.

What is this madness?!

Where is your location?

When it was raining season, you guys were rejoicing and boasting about 24/7 electricity. Now, what has happened?

Nukilia:
The electricity company is designed to sabotage the economy of Nigeria.

NO, it is because Nigerians..from the rich to the poor...do not pay cost reflective tarrifs.

Ivory coast used to have the same problems we had with power...until they privatised the thing, and crucially, let their power sector charge cost reflective tarrifs. Result...Ivory coast has power 24/7 in most parts (Well, most parts)

Here in NIgeria, we do not charge cost reflective tarrifs, plus we have a large percentage of people who do not pay for power. Now, tell me, una go get power?

Why is GSM working here? Because the government allows them to charge cost reflective tarrifs. Meanwhile, NItel's GSM subsidary Mtel was not allowed to charge cost reflective tarrifs, meaning it could not make the type of profits that would have enabled it to compete with MTN and now Airtel. Result...kpafuka.


You can disagree with me, and laugh at me, but if they paid you half salary from next month...would you work happily?

There is no sabotage. Allow them charge cost reflective tarrifs, let people stop bypassing meters and refusing to pay bill because 'expensive', and let people, goverment inclusive, pay their debt...then we will see miracles. Probably.

(Yes, I know, estimated billing, which happens because of the whole issues I mentioned above. Force a company to operate at a loss to help the poor.;....and it would be forced to rip off part of its customer base to survive.)

nairalanda1:


)

Let the electricity companies provide prepaid meters for everyone and see if the situation will not be different

Nukilia:


Let the electricity companies provide prepaid meters for everyone and see if the situation will not be different

You did not see the bit about 'bypassing meters'? And you do not see the bit about how people are owing even with meters in place.? Or how people who are caught bypassing meters use violence to chase power company workers away?

The problem in NIgeria...is that we want things to be cheap. We don't take into consideration the fact that things cost money to produce and to service, etc. We can't have things cheap

The power companies don;'t have the advantage that GSM has. If you want to use internet or phone call service on your GSM phone, you need to pay money. Once no airtime or data, you cannot do nada. The power companies don;t have that advantage.

But we have to change our ''wanting cheap things' mindset. Power is not cheap. We should meter everyone...that is certain.

nairalanda1:


NO, it is because Nigerians..from the rich to the poor...do not pay cost reflective tarrifs.

Ivory coast used to have the same problems we had with power...until they privatised the thing, and crucially, let their power sector charge cost reflective tarrifs. Result...Ivory coast has power 24/7 in most parts (Well, most parts)

Here in NIgeria, we do not charge cost reflective tarrifs, plus we have a large percentage of people who do not pay for power. Now, tell me, una go get power?

This copy and paste propaganda of yours everytime.

There is subsidy in the electricity sector which cancels out your cost reflective tariff propaganda.

It's called economic collapse.

jmoore:

This copy and paste propaganda of yours everytime.

There is subsidy in the electricity sector which cancels out your cost reflective tariff propaganda.

Yeah, and all subsidy does is cover the loss. And sometimes, it cannot cover the loss adequately because 1) money no dey for budget 2) cost of production has risen way above what was budgeted for in the subsidy.

All subsidy does is cover the losss. It does not allow for any profit to be made at all. And the result, same issue.

I mean, if I was selling bread that I baked at N1000 at N1200 to earn a profit, and government tells me to sell that bread at N400, and pays me a subsidy at N600, where is the profit. I'm basically making zero profit.


You are here shouting propaganda, but if you were a businessman, would you let government determine your prices, and then pay you a subsidy, to help the poor. You won't, you know it.


Better shut up with all this propaganda nonsense and listen. We have tried your way for decades, and we got no light. GHana and Ivory coast allow cost reflective tarrifs, and have light.

Nukilia:
The electricity company is designed to sabotage the economy of Nigeria.

this is the best person on nairaland this year , may your days be longer

nairalanda1:


NO, it is because Nigerians..from the rich to the poor...do not pay cost reflective tarrifs.

Ivory coast used to have the same problems we had with power...until they privatised the thing, and crucially, let their power sector charge cost reflective tarrifs. Result...Ivory coast has power 24/7 in most parts (Well, most parts)

Here in NIgeria, we do not charge cost reflective tarrifs, plus we have a large percentage of people who do not pay for power. Now, tell me, una go get power?

Why is GSM working here? Because the government allows them to charge cost reflective tarrifs. Meanwhile, NItel's GSM subsidary Mtel was not allowed to charge cost reflective tarrifs, meaning it could not make the type of profits that would have enabled it to compete with MTN and now Airtel. Result...kpafuka.


You can disagree with me, and laugh at me, but if they paid you half salary from next month...would you work happily?

There is no sabotage. Allow them charge cost reflective tarrifs, let people stop bypassing meters and refusing to pay bill because 'expensive', and let people, goverment inclusive, pay their debt...then we will see miracles. Probably.

(Yes, I know, estimated billing, which happens because of the whole issues I mentioned above. Force a company to operate at a loss to help the poor.;....and it would be forced to rip off part of its customer base to survive.)

the nigerian system is too young for privatisation, it widens the gap between the rich and poor , profiteering

godofuck231:
the nigerian system is too young for privatisation, it widens the gap between the rich and poor , profiteering

Well, it wasn't too young for privatised GSM at all.

nairalanda1:


Well, it wasn't too young for privatised GSM at all.

if pikin too small to drink alcohol so should he be too young to eat food

godofuck231:
if pikin too small to drink alcohol so should he be too young to eat food

GSM used to be very expensive. My first sim cost me 7000 naira, and that was the cheapest provider

But at the end, thanks to free market, prices came down.

The thing is, prices of stuff don't care about your income. There is a laptop I would love to buy, but at the end of the day it is way beyond my income

We have sold power at cheap prices for donkey years, and as a result, power supply is poor. Either we change the way we do things, or we have bad light

nairalanda1:


GSM used to be very expensive. My first sim cost me 7000 naira, and that was the cheapest provider

But at the end, thanks to free market, prices came down.

The thing is, prices of stuff don't care about your income. There is a laptop I would love to buy, but at the end of the day it is way beyond my income

We have sold power at cheap prices for donkey years, and as a result, power supply is poor. Either we change the way we do things, or we have bad light

you de learn mine was 40k with a sony Ericsson brick phone

nairalanda1:


GSM used to be very expensive. My first sim cost me 7000 naira, and that was the cheapest provider

But at the end, thanks to free market, prices came down.

The thing is, prices of stuff don't care about your income. There is a laptop I would love to buy, but at the end of the day it is way beyond my income

We have sold power at cheap prices for donkey years, and as a result, power supply is poor. Either we change the way we do things, or we have bad light

Till now, NCC still regulates Telcom cost. That's partly why the price of 1gb has not hit ₦5,000 but is instead less than ₦400, despite the cost of every service and product hitting the roof. If NCC allows the telcos to determine rates, they'd conspire together to arbitrarily hike cost to the point where 1 minute call would cost ₦100 and a GB of internet data would sell for at least ₦5,000.

RenaissanceGuy:
Till now, NCC still regulates Telcom cost. That's partly why the price of 1gb has not hit ₦5,000 but is instead less than ₦400, despite the cost of every service and product hitting the roof. If NCC allows the telcos to determine rates, they'd conspire together to arbitrarily hike cost to the point where 1 minute call would cost ₦100 and a GB of internet data would sell for at least ₦5,000.

Yes, but not to the point where they lose money. Their tarrifs are cost reflective.

Unlike the power sector where they lose money from poor cost reflective tarrifs and power theft.And where the subsidy paid to cover the losses is not enough

There's the difference

nairalanda1:


You did not see the bit about 'bypassing meters'? And you do not see the bit about how people are owing even with meters in place.? Or how people who are caught bypassing meters use violence to chase power company workers away?

The problem in NIgeria...is that we want things to be cheap. We don't take into consideration the fact that things cost money to produce and to service, etc. We can't have things cheap

The power companies don;'t have the advantage that GSM has. If you want to use internet or phone call service on your GSM phone, you need to pay money. Once no airtime or data, you cannot do nada. The power companies don;t have that advantage.

But we have to change our ''wanting cheap things' mindset. Power is not cheap. We should meter everyone...that is certain.

Power is not cheap rhetorics is another deception by the ruling elite to fleece innocent Nigerians of their hard earned money. Let prepaid meters be available just like the way you walk up the street and buy a smart phone. This will change the dynamics and life would be better for Nigerians.
The sad part of the equation is that criminally run electricity companies like what we have here derive pleasure in lifting ladders across every street and billing customers on estimated basis because of their selfish interest.
I still stand by my position that the power companies are just like the old NITEL and water corporation. Their time would soon be up

Nukilia:


Power is not cheap rhetorics is another deception by the ruling elite to fleece innocent Nigerians of their hard earned money. Let prepaid meters be available just like the way you walk up the street and buy a smart phone. This will change the dynamics and life would be better for Nigerians.
The sad part of the equation is that criminally run electricity companies like what we have here derive pleasure in lifting ladders across every street and billing customers on estimated basis because of their selfish interest.
I still stand by my position that the power companies are just like the old NITEL and water corporation. Their time would soon be up

Well, we have sold power cheap for decades and we still do not have light. That should tell you something

Nitel even collapsed because it was forced to work at cheap prices. It's subsidiary mtel could not compete with the mtn and Airtel because cheap prices

Things cost money. The power companies have to pay for gas, pay salaries and pay for facilities upgrades and maintenance and all that costs money. People do not like doing things for free as much as we would prefer it otherwise.

In Ghana and ivory coast , power costs far more than it does here. They have 24 hour light as a result. We don't. The last time ivory coast had power outage was in the days of government control.

The unfortunate thing in life is that nothing is free in freetown. The price of stuff does not care about income.

We have poor supply of power because we do not pay the amount of money needed to make the sector work.

Sabotage my foot.

nairalanda1:


Well, we have sold power cheap for decades and we still do not have light. That should tell you something

Nitel even collapsed because it was forced to work at cheap prices. It's subsidiary mtel could not compete with the mtn and Airtel because cheap prices

Things cost money. The power companies have to pay for gas, pay salaries and pay for facilities upgrades and maintenance and all that costs money. People do not like doing things for free as much as we would prefer it otherwise.

In Ghana and ivory coast , power costs far more than it does here. They have 24 hour light as a result. We don't. The last time ivory coast had power outage was in the days of government control.

The unfortunate thing in life is that nothing is free in freetown. The price of stuff does not care about income.

We have poor supply of power because we do not pay the amount of money needed to make the sector work.
Sabotage my foot.

No matter how much you try to sound smart, you are still another tool doing the hatchet job for the corrupt elements running our country.
The same story you and your likes peddled about subsidy and the need to remove it, now the nation is on its belly up.

I wonder where you got your vodoonomics from

Nukilia:


No matter how much you try to sound smart, you are still another tool doing the hatchet job for the corrupt elements running our country.
The same story you and your likes peddled about subsidy and the need to remove it, now the nation is on its belly up.

I wonder where you got your vodoonomics from

Well, whatever you think of me, things like businesses must be operated at a profit to run efficiently

It's not voodoo economics, it is simple common sense

What you are advocating is price controls. At the end it never works because people love to be paid and it costs money to make things



Also resorting to abuse shows you have lost the argument essentially. I did not abuse you, yet because I disagree you chose to abuse me.

Grow up. And if you persist, I will have no compunction in reporting you to the moderators. You are not a child.

nairalanda1:


Well, whatever you think of me, things like businesses must be operated at a profit to run efficiently

It's not voodoo economics, it is simple common sense

What you are advocating is price controls. At the end it never works because people love to be paid and it costs money to make things



Also resorting to abuse shows you have lost the argument essentially. I did not abuse you, yet because I disagree you chose to abuse me.

Grow up. And if you persist, I will have no compunction in reporting you to the moderators. You are not a child.

While I haven't abused you, I believe you have not been able to prove to me that the current ECN is capable of effective service delivery under the current structure.

Nukilia:


While I haven't abused you, I.

Well you did.

Nukilia:


No matter how much you try to sound smart, you are still another tool doing the hatchet job for the corrupt elements running our country.
The same story you and your likes peddled about subsidy and the need to remove it, now the nation is on its belly up.

I wonder where you got your vodoonomics from

The above is abusive. You called me a tool, and you implied I was dull

I honestly don't understand some of you people. When you are called out for your wrongdoing, you deny it.

Good evening. I am ending it here.

If I called you a tool, and implied that you were not smart, you would get angry. Yet , here you are denying it. You should admit you were wrong and move on.


P.S

Here is a summary of answers to why our power sector is in a bad shape. See it below. I got that from a PwC paper. Argue with that.


P.S 2

If you abuse me again, I will report you to the moderators. I don't understand why you cannot argue your point without being abusive.

BATists always have answers

nairalanda1:


Well, we have sold power cheap for decades and we still do not have light. That should tell you something

Nitel even collapsed because it was forced to work at cheap prices. It's subsidiary mtel could not compete with the mtn and Airtel because cheap prices

Things cost money. The power companies have to pay for gas, pay salaries and pay for facilities upgrades and maintenance and all that costs money. People do not like doing things for free as much as we would prefer it otherwise.

In Ghana and ivory coast , power costs far more than it does here. They have 24 hour light as a result. We don't. The last time ivory coast had power outage was in the days of government control.

The unfortunate thing in life is that nothing is free in freetown. The price of stuff does not care about income.

We have poor supply of power because we do not pay the amount of money needed to make the sector work.

Sabotage my foot.

Lol this man again! I don't really know your problem. I have argued with you about oil subsidy in the past. What you are clearly advocating and preaching is for us to practice "Absolute Capitalism"

But you failed to realize that there is no country in the world where pure or absolute capitalism is been practiced including America. US and the entire Western Countries all have some form of social welfare programs for their unemployed and low-income earners. Absolute capitalism is not sustainable, it will collapse societies.

Is it not funny that you are preaching against subsidy but mute on 30k minimum wage in the country ?

When subsidy is finally removed in all sectors, then how will the man on a 30k minimum wage access electricity or even purchase fuel for his generator bearing in mind that a liter of fuel will be over 2k at full oil subsidy removal? What you're effectively saying is that electricity should be cut off from the poor.

Since govt in Nigeria is not providing any meaningful social welfare programs like other countries do, then subsidy should be allowed to exist as the only welfare benefits in the country for the masses. A govt minister few days ago said that only 5% of citizens have upto 500k in their bank accounts in Nigeria, that's the people you want to collect "cost reflective tariff" from?

Die this matter because you know little or nothing about macroeconomics.

nairalanda1:


NO, it is because Nigerians..from the rich to the poor...do not pay cost reflective tarrifs.

Ivory coast used to have the same problems we had with power...until they privatised the thing, and crucially, let their power sector charge cost reflective tarrifs. Result...Ivory coast has power 24/7 in most parts (Well, most parts)

Here in NIgeria, we do not charge cost reflective tarrifs, plus we have a large percentage of people who do not pay for power. Now, tell me, una go get power?

Why is GSM working here? Because the government allows them to charge cost reflective tarrifs. Meanwhile, NItel's GSM subsidary Mtel was not allowed to charge cost reflective tarrifs, meaning it could not make the type of profits that would have enabled it to compete with MTN and now Airtel. Result...kpafuka.


You can disagree with me, and laugh at me, but if they paid you half salary from next month...would you work happily?

There is no sabotage. Allow them charge cost reflective tarrifs, let people stop bypassing meters and refusing to pay bill because 'expensive', and let people, goverment inclusive, pay their debt...then we will see miracles. Probably.

(Yes, I know, estimated billing, which happens because of the whole issues I mentioned above. Force a company to operate at a loss to help the poor.;....and it would be forced to rip off part of its customer base to survive.)

Couldn’t have said it any better.

Princewill1:

Lol this man again! I don't really know your problem. I have argued with you about oil subsidy in the past. What you are clearly advocating and preaching is for us to practice "Absolute Capitalism"

But you failed to realize that there is no country in the world where pure or absolute capitalism is been practiced including America. US and the entire Western Countries all have some form of social welfare programs for their unemployed and low-income earners. Absolute capitalism is not sustainable, it will collapse societies.

Is it not funny that you are preaching against subsidy but mute on 30k minimum wage in the country ?

When subsidy is finally removed in all sectors, then how will the man on a 30k minimum wage access electricity or even purchase fuel for his generator bearing in mind that a liter of fuel will be over 2k at full oil subsidy removal? What you're effectively saying is that electricity should be cut off from the poor.

Since govt in Nigeria is not providing any meaningful social welfare programs like other countries do, then subsidy should be allowed to exist as the only welfare benefits in the country for the masses. A govt minister few days ago said that only 5% of citizens have upto 500k in their bank accounts in Nigeria, that's the people you want to collect "cost reflective tariff" from?

Die this matter because you know little or nothing about macroeconomics.

Well you will remain in this same position for the next 30 years, with this your misconstrued mentality.

Princewill1:

Lol this man again! I don't really know your problem. I have argued with you about oil subsidy in the past. What you are clearly advocating and preaching is for us to practice "Absolute Capitalism"

But you failed to realize that there is no country in the world where pure or absolute capitalism is been practiced including America. US and the entire Western Countries all have some form of social welfare programs for their unemployed and low-income earners. Absolute capitalism is not sustainable, it will collapse societies.

Is it not funny that you are preaching against subsidy but mute on 30k minimum wage in the country ?

When subsidy is finally removed in all sectors, then how will the man on a 30k minimum wage access electricity or even purchase fuel for his generator bearing in mind that a liter of fuel will be over 2k at full oil subsidy removal? What you're effectively saying is that electricity should be cut off from the poor.

Since govt in Nigeria is not providing any meaningful social welfare programs like other countries do, then subsidy should be allowed to exist as the only welfare benefits in the country for the masses. A govt minister few days ago said that only 5% of citizens have upto 500k in their bank accounts in Nigeria, that's the people you want to collect "cost reflective tariff" from?

Die this matter because you know little or nothing about macroeconomics.

Well, I happen to think that the government should increase the minimum wage


Also, you shout against capitalism, yet you won't accept half payment to help the poor.

I don't understand you guys. You are against capitalism until it is your businesses in the line.

nairalanda1:



Well, I happen to think that the government should increase the minimum wage


Also, you shout against capitalism, yet you won't accept half payment to help the poor.

I don't understand you guys. You are against capitalism until it is your businesses in the line.

Which of their businesses is in the line lol ?

You claimed Discos are not making profit but only given subsidy money in order to stop them from running into losses. That's a big lie!

Even at this present electric tariff rate and the incessant electricity infrastructure theft in the country, Discos are still making huge sums. If they claimed they aren't, then they should immediately hand it back to the govt. But they're still holding tight to their licenses.

All over the world businesses windup once they keep running into losses in every financial year or quarter. Why are they discos not folding up like other distressed businesses do? Simply because they are making it.

Stop listening and echoing propaganda messages of the discos. From my observations you the type that easily get swerved by these greedy capitalists looking for new dubious ways of making more money.

Cement manufacturers are currently also spreading propaganda messages on why cement prices should be increased citing dollar rate and despite that all major cement production components are gotten from within the country.

Someone like you will easily fall for their propaganda tomorrow and start spreading it here on nairaland.

Nigerians will be giving examples of Ghana and other countries that have 24/7 light. Can we pay what they pay for electricity? Or we are looking for free light ? We need to make a decision.

Princewill1:
Which of their businesses is in the line lol ?

You claimed Discos are not making profit but only given subsidy money in order to stop them from running into losses. That's a big lie!

Even at this present electric tariff rate and the incessant electricity infrastructure theft in the country, Discos are still making huge sums. If they claimed they aren't, then they should immediately hand it back to the govt. But they're still holding tight to their licenses.

All over the world businesses windup once they keep running into losses in every financial year or quarter. Why are they discos not folding up like other distressed businesses do? Simply because they are making it.

Stop listening and echoing propaganda messages of the discos. From my observations you the type that easily get swerved by these greedy capitalists looking for new dubious ways of making more money.

Cement manufacturers are currently also spreading propaganda messages on why cement prices should be increased citing dollar rate and despite that all major cement production components are gotten from within the country.

Someone like you will easily fall for their propaganda tomorrow and start spreading it here on nairaland.

Well, anytime I come on line to tell you guys the truth about the power sector, and all that, y'all start screaming propaganda.

But to start with the issues

1.DISCOS are struggling to make enough money, which is why many of them reject power , because they won't be able to pay for it.

2.They surivie because government pays them a subsidy, which barely keeps their head above water, but does not allow them make enough profit to make the much needed investments in repairing infrastructure.

3.At least one disco has declared force maejure...ie collapsed...because of the cash issues, and has been taken over by the government. Three others have been essentially taken over by the banks they owe money to.

4.Also discos survive by not paying tax, because they are too broke to do so

5.And then they also rip off part of their customer base via ESTIMATED BILLING because at the end of the day, that helps them make money.


I suggest you read the paper 'Solving the liquidity crunch in the power sector'. It answers a lot of questions.LInked here.

FInally, if you don't believe me, believe the experts

Stakeholders in the Nigeria Electricity Supply Industry (NESI) have advocated a cost-reflective tariff to drive the needed growth.

This is as Nigerians decried the poor performance of the sector after ten years of being privatized. The privatization of the NESI, which took place in 2013, marked a new beginning in Nigeria’s energy sector, transitioning it from the era of the Power Holding Company of Nigeria (PHCN) to a system of private investor ownership and participation.

However, the progress in NESI, post-privatization has not fully met the lofty expectations outlined in the National Electricity Power Policy, 2001 (NEPP), the Electric Power Sector Reform Act, 2005 (EPSRA) now Electricity Act 2023, and the Road Map for Power Sector Reform, 2010.

Speaking at the ongoing 2023 NESI market participants and stakeholders roundtable in Abuja, Sani Bello, chairman and board of directors of Maingtream Energy Solutions Limited, stated that the absence of a cost-reflective tariff has represented a major challenge that must be addressed to provide sustainable liquidity for the entire value chain.

He explained that the ever-present liquidity challenge exacerbated by inflation and a dearth of foreign currency has continued to affect the industry’s operations.


“While we acknowledge the effort of the current administration in trying to resolve and improve the foreign exchange environment, we look forward to a way out that will midwife an enabling environment for existing and prospective investors to thrive within the NESI.

“What we continue to tackle today is the lack of cost ‘reflective tariff that will provide sustainable liquidity for the entire value chain, strengthened laws and enforcement of these laws that will criminalize and deter energy theft as well as non-payment of electricity bills,” he said.

SAUCE


See the problem?

All the issues in the power sector...BAD management and corruption inclusinve...arise from a lack of a cost reflective tarrif.