Minsk24:

I agree with you, he's making good fiscal moves but it is just too rash ..
Gradual process is better, considering the economic situation...

Minsk24:
I have a question
If states starts aggressively generating and distributing their own power, who will pay up the massive debt owed to the current gencos and co....? The government must sort this out to prevent this people from lobbying against full power decentralization

helinues:


How many states have established their own electricity generating firm? If majority haven't, then they can all be termed together

oliverwrites:
I agree with you but kudos to those who were proactive as the report clearly stated.

oliverwrites:
If the other 36 governors we have had since 1999 perform as much as Lagos state governors have performed, Nigeria would be 100% better.

People just like taking a go at Lagos state when in actual sense it is the most performing state we have in Nigeria.

nairalanda1:


Decentralization won't solve the problem

It costs a lot of money to produce power, to pay for maintenance of power structures like gas generation plants, etc. That is why the power sector has to make a generous profit (yes they made one trillion last year, but as the experts said back in 2016, the sector needs something like 3 trillion yearly for 30 years, plus current debt owed to the gas companies is nearly 2 trillion naira)..which is why it needs to be allowed to set its price.

LIke they did in Ivory coast from 1993, which is why the last grid collapse there happened in the eightes.

oliverwrites:
I am up for the distribution companies setting their prices but you can't ask Nigerians to pay same as those in other countries that enjoy constant electricity.

What they should have done is hike the price then agree to charge lower for times people do not get up to the agreed 20 hours per day ( difficult to implement though ).

Also, makes no sense to ask Nigerians to pay for the corruption of the political class. It is madness.

nairalanda1:


The thing is, at the end, the other countries enjoy constant power because the sector was allowed to charge cost reflective tarrifs.

I mean, the government allowed GSM to set their prices, and they were very expensive. (Some of us waited until Nitel came out with its own cheaper GSM service before we considered getting a phone back then). But it was precisely the fact that they were allowed to set their prices that we went from Telephones are for the rich in the 1980's to having even poor people own their phones.

Money breeds improvement breeds eventual cut in prices. Subsides is a nice way of helping the rich, when you think you are helping the poor.

oliverwrites:
i honestly agree with you. However, the move to freelance the naira and the electricity price hike makes absolutely no sense. The price hike especially makes no sense as 97% of Nigeria get less than 20 hours of electricity.

You can't ask me to pay more for offering me less service.

Minsk24:

It is plausible that if there's enough liquidity in the sector, the companies involved in generation and distribution will invest more to ensure stable power supply....ur concerns are valid, but if under proper oversight, the companies might have steady inflow of funds to invest in its supply chain and ensure better power availability

oliverwrites:
They should then get a loan and fix the issue then charge more. It is as simple as that.

Poisonousman:


https://punchng.com/12-states-plan-power-projects-anger-spreads-over-tariff-hike/

socialmediaman:
Many people in urban cities in Nigeria are already on the band A whether they receive up to 10ths electricity per day or not

The big shocker will come when everyone is quietly moved to band A.

helinues:


See this unserious governors. They have concluded plans? when was the new electricity act passed?

If you have just concluded with your plans, then how many years would you take to execute those plans?

Wondering when Nigerians would start questioning their state governors same way they have been doing to FG, all this governors are just like P in Psychology


Did you read the writeup well?… because if you did, you will read where it said the governors were waiting for approval. Everything is not about some high ranking seats, civil servants are the major problems of this country..

helinues:


See this unserious governors. They have concluded plans? when was the new electricity act passed?

If you have just concluded with your plans, then how many years would you take to execute those plans?

Wondering when Nigerians would start questioning their state governors same way they have been doing to FG, all this governors are just like P in Psychology

LordGuru1:
Better! Can we face and stomach some bitter Truths today? What is Ekiti, Osun, Ondo and Oyo still waiting for?! So mamy Rivers in these States that could be used for Hydroelectricity Generations, not like it's a difficult Rocket science at all! The Youths are supposed to demand their Governors give Account of how they Spend their Resources and Federal Allocation! But will their Youths ever get sense?! They keep wasting away their LifeTime Daily on Internet entertainments and Complaining from Sun up till Sun down instead of them to individually get off their butts and do small Hydo like these illiterate guys below that simply followed YouTube Tutorials after which they can Aim to start the Private Company for the Massive Size that can Power the whole State by opening GoFundMe Account for support, or applying for various Grants online, or simply going after Rich Yorubas and Government officials in their communities to support for Bigger Ones have proven with the smaller version.

See just one guy generating Hydroelectric for his whole Village below:

https://www.youtube.com/watch?v=Ry3dP65LpbM&pp=ygUqQm95IGdlbmVyYXRlIFJpdmVyIEVsZWN0cmljaXR5IGZvciB2aWxsYWdl

https://www.youtube.com/watch?v=9YrcruOIAPs&pp=ygUqQm95IGdlbmVyYXRlIFJpdmVyIEVsZWN0cmljaXR5IGZvciB2aWxsYWdl

https://www.youtube.com/watch?v=kaKMmtUrbtE&pp=ygUqQm95IGdlbmVyYXRlIFJpdmVyIEVsZWN0cmljaXR5IGZvciB2aWxsYWdl

https://www.youtube.com/watch?v=MBDV_Xj6Dj8

https://www.youtube.com/watch?v=G4iMbYD4MZM&pp=ygUqQm95IGdlbmVyYXRlIFJpdmVyIEVsZWN0cmljaXR5IGZvciB2aWxsYWdl
Man powers Hometown with DIY hydroelectric turbine Whiteman's YouTube is blocking the one below because they don't want African Youths to know they can easily do it for their own Villages and Communities but you can still force it to Play by Clicking:

https://www.youtube.com/watch?v=hb9jIH89xRU&pp

Minsk24:

I also don't think it's just about them needing a fixed amount of money, it is more about steady inflow of liquidity,maybe to pay for gas, for maintenance, salaries, and so many other stuffs that as a lay man, i am not privy to

yommen:


Lies. Anybody who is in band A would have already been receiving very huge bill, like 120k. Na 120k you dey receive? They actually enjoy supply. Ordinary Band C self enjoys supply very well. My area is band D, They bring 7am to 10am, from 2pm to 5pm and from 11pm to 5am. That's 12 hours and e dey complete except of course there is a serious fault. They brought it this morning already.

helinues:


See this unserious governors. They have concluded plans? when was the new electricity act passed?

If you have just concluded with your plans, then how many years would you take to execute those plans?

Wondering when Nigerians would start questioning their state governors same way they have been doing to FG, all this governors are just like P in Psychology

oliverwrites:
I perfectly understand this but if Nigerians are paranoid then blame the political class and not Nigerians.

We have suffered enough for their madness. If funds is the problem, they should hike the price but agree to refunding people if there is no improvement. The Nigerian businessman you know will enjoy the hike and then sit on their hands.

Minsk24:

There is zero trust between the people and government, the government corruption and waywardness with spending is also not helping... We don't have an accountable government, i will not be surprised if after this tariff hike, we still don't see improvements, that is Nigeria for you

oliverwrites:
I am in agreement with you but Nigeria is peculiar. Take the issue of diesel for example. Has removal of subsidy led to decrease in price?

Nigerians are paying VAT and should benefit. I produce my own water, spend crazy money on car maintenance cos the political class is useless, practically produce my own electricity, fully funded my own education because the public schools are rotten, what is the point of the tax I pay then?

This is the issue. Plus I am pretty sure the hike won't lead to an improvement. It is a case of seen it before, done it before.

helinues:




Read and comprehend

nairalanda1:


NO, because at the end of the day, prices do not really care about our pockets, sadly



1.Tax income forms 20% of our national income, which is small to begin with. Less than 30% of nigerians pay tax to federal and state government

2.You produce your electricity and water because subsidies prevent both sectors from serving you effectively. You don't produce your telecom service or grow your own food, because they are not subsidised, and as such the free market at work enables them to earn a profit which helps in them serving you effectively.

3.Educaiton too, for the same reason...heavy subsidy...is in a bad state.



Well, GSM services did not really improve for the first 5 -6 years of letting them charge their prices too, but eventually the profits made a difference.

You won't sell at a loss to help the poor, oga. So why expect it from others?

nairalanda1:


The thing is, at the end, the other countries enjoy constant power because the sector was allowed to charge cost reflective tarrifs.

I mean, the government allowed GSM to set their prices, and they were very expensive. (Some of us waited until Nitel came out with its own cheaper GSM service before we considered getting a phone back then). But it was precisely the fact that they were allowed to set their prices that we went from Telephones are for the rich in the 1980's to having even poor people own their phones.

Money breeds improvement breeds eventual cut in prices. Subsides is a nice way of helping the rich, when you think you are helping the poor.

Franking:


So Tinubu is so competent he's the only one to realize you won't sell petrol and electricity at a loss to help the poor? Salaries have remained the same for goodness sake. Everything has to be considered.

COMPAQ:



You guys need to stop regurgitating the success and concept of GSM on every other product. GSM is an intangible product, wherein after setting up the infrastructure, the marginal cost of adding 1 subscriber to the network is zero. If 1,000,000 people port their lines from Glo to MTN, does it cost MTN any more money to provide service to those 1m people?? The answer is no. Its because the marginal cost is zero or very low, that's why GSM costs have remained same (or actually gone down in real terms)

For most other products like petrol, diesel electricity etc Its not the same. The marginal cost of adding 1MW of electricity is high. Even if the idle capacity ag the generating plant is there to produce it, you still need to pay for additional gas. The marginal cost of adding a new 1000MW of electricity is the cost of building a new power plant, transmission lines, and gas pipeline that will bring the gas to the plant.