Agunesinjaweola:
This matter may lead to coup de tat in Nigeria

And when it happens, and Lord knows, Nigerians would be happy, soon as the joy dies down, the new govt would be faced with the same problem tinubu is suffering now...high levels of debt service.

And the correct answer to that problem is not refusing to pay the debt. IMF will show you shege if that happens. And Nigeria would beg for mercy after a few months.

SO, subsidy removal.

Buhari removed subsides on essenco goods in 1985. He got overthrown in part because of that removal. And the new government never broiught the subsides back, so prices on essenco goods kept on going up.

nairalanda1:


Pay their price.

We can say the same thing about many things in this world...they aren't affordable. SO, they either pay what they can afford.

Thing is, we don't produce most of the stuff associated with power here. And the gas people dont want to sell in naira, no matter how hard government tries. SO, people either pay what they can afford.

IN Ghana, most people cannot afford 24 hour power, so they disconnect themselves from the mains supply to save up on power money. Harsh, but that's it.

The only way government can afford subsides is by raising our tax to gdp ratio , which is too low. But most of us don't like that, so, tarrifs are the only way to go.

Unfair, yes. But you work in the private sector. You won;t agree to a reduction in the price for your service because people are too poor to pay you.

Ok. That's fair enough.

Disco's should go ahead and disconnect all those who can't afford their rates. I'll like to see something.

nairalanda1:


It's actually true. There are even lists circulating from the discos. We can deny , but it is true. (And they always pay more.).



Nope, the power companies want to improve service, so the rates have to go up.

Like the GSM, when they came they had to improve telephony in Nigeria from scratch. Naturally bills were high in the first few years, and service was poor. But because government was not setting their prices, they felt confident to invest more...and that is why today, a very large percentage of NIgerians have access to internet and telephone service. Compared to 25 years ago

Well, I disagree. No one is getting 20hrs light daily for a month in Nigeria.
But that's by the way. Don't bring GSM into this. What MTN and Econet started with was a rip off and it took glo to break their monopoly.
If there was no glo, you probably will still be using 3G by now. MTN especially came out to say Nigeria was not ripe enough for per second billing until glo came and broke their back.
The power sector is different because the Discos have exclusivity for their jurisdiction. So no one is going to come and chase AEDC out of Abuja. At least that's what the present model stipulates.
It's the gencos that are flexible. TCN and Discos are a monopoly.

Kukutenla:

Well, I disagree. No one is getting 20hrs light daily for a month in Nigeria.
But that's by the way. Don't bring GSM into this. What MTN and Econet started with was a rip off and it took glo to break their monopoly.
If there was no glo, you probably will still be using 3G by now. MTN especially came out to say Nigeria was not ripe enough for per second billing until glo came and broke their back.
The power sector is different because the Discos have exclusivity for their jurisdiction. So no one is going to come and chase AEDC out of Abuja. At least that's what the present model stipulates.
It's the gencos that are flexible. TCN and Discos are a monopoly.

Exculsivity doesn't work when government is forcing you to operate at a loss, and when people steal power, forcing discos to rip off paying customers via estimated billing.

nairalanda1:


Exculsivity doesn't work when government is forcing you to operate at a loss, and when people steal power, forcing discos to rip off paying customers via estimated billing.

So how did they make a profit last year

Kukutenla:

Well, I disagree. No one is getting 20hrs light daily for a month in Nigeria.
But that's by the way. Don't bring GSM into this. What MTN and Econet started with was a rip off and it took glo to break their monopoly.
If there was no glo, you probably will still be using 3G by now. MTN especially came out to say Nigeria was not ripe enough for per second billing until glo came and broke their back.
The power sector is different because the Discos have exclusivity for their jurisdiction. So no one is going to come and chase AEDC out of Abuja. At least that's what the present model stipulates.
It's the gencos that are flexible. TCN and Discos are a monopoly.

Discos have monopoly but their licences can be withdrawn for non performance.

This means they will be kept in check and their licences given to another competent firm.

Dobodobo04:


Discos have monopoly but their licences can be withdrawn for non performance.

This means they will be kept in check and their licences given to another competent firm.

You mean Discos have been performing since 2013?

Kukutenla:

PDP's contract with Discos ended in 2018. APC has renewed the contract twice since then.
The president did not put a stop to the fraud. He only kicked the can to the citizens

It is part of the contractual terms.

Kukutenla:

So how did they make a profit last year

BY not paying taxes, and by not paying the gas man.

Gas man got fed up this year.

nairalanda1:


BY not paying taxes, and by not paying the gas man.

Gas man got fed up this year.

Discos don't pay gas man
Gencos do

Which taxes did they refuse to pay?

References1:


https://leadership.ng/this-new-tariff-must-not-stand/

It is erroneous to say no area enjoys 20Hrs power supply since privatisation.

Nigerians who enjoy Band A services should speak against this emotional statement

PressMyButton:
PDP sold NEPA to incompetent individuals while Government keeps paying subsidy to support their operations. Such can only happen in Nigeria where we keep giving money to buyers of public assests. They are only interested in collecting subsidies to futher enrinch themselves, for so long, Government has been paying subsidy for darkness. Kudos to the President for gradually putting a stop to the fraud.

Government was paying subsidies for darkness. Now the poor citizens have to pay it. See logic.

Kukutenla:

Well, I disagree. No one is getting 20hrs light daily for a month in Nigeria.
But that's by the way. Don't bring GSM into this. What MTN and Econet started with was a rip off and it took glo to break their monopoly.
If there was no glo, you probably will still be using 3G by now. MTN especially came out to say Nigeria was not ripe enough for per second billing until glo came and broke their back.
The power sector is different because the Discos have exclusivity for their jurisdiction. So no one is going to come and chase AEDC out of Abuja. At least that's what the present model stipulates.
It's the gencos that are flexible. TCN and Discos are a monopoly.

It's only with the Nigerian government and online space that consumers are expected to pay so that service providers can have enough money to improve services. Whereas in reality, the businessman has to source for funds to improve his services by himself before he can charge higher for services rendered.

Iamanoited:
73 NAIRA OR N52 per unit is ok.
But. N225 per unit is reckless and outrageous.

Army Naf And Navy... fit pay these new rate... or the ministries??

PressMyButton:

It is part of the contractual terms.

What terms

emorse:

It's only with the Nigerian government and online space that consumers are expected to pay so that service providers can have enough money to improve services. Whereas in reality, the businessman has to source for funds to improve his services by himself before he can charge higher for services rendered.

Lol. It shock you too abi

Reverse capitalism as enacted by nairalanda1

Kukutenla:

Lol. It shock you too abi

Reverse capitalism as enacted by nairalanda1

Yeah, and things always do, at the end, cost money. Stuff doesnt build itself by itself.

emorse:

It's only with the Nigerian government and online space that consumers are expected to pay so that service providers can have enough money to improve services. Whereas in reality, the businessman has to source for funds to improve his services by himself before he can charge higher for services rendered.

Kukutenla:

Lol. It shock you too abi

Businessman ain't gonna get any funds if at the end of the day, those who give him the funds have no expectation of seeing them back.

See, the only way must businesses get money to do things is by loans. And the loans got to be paid back...that's why we need the capitalism both of you hate...ie cost reflective tarrifs so that they can pay back those loans. ANd the power sector is so knobbled by no cost reflective tarrifs, it can;t pay back the loans they have taken, and no one wants to give them loans.

Nothing goes for free. It's effing unfair, but it is what it is. Also, no one has a magic pot that gives you money on demand. At the end, investors want return on investment.

But then, both of you can disagree with me, but at the end, things cost money. NO one gives anything for free.

/
I am very disappointed.

I was expecting it to be increased to N1000 instead of N200. Tinubu and APC are not tightening the noose enough. Who complains first loses. Even those who were bragging about their choices during the election have realized that bad choices have grave consequences.
/

nairalanda1:


Unfortunately the cost of production of electricity has no respect for anyone's purse especially the government

Electricity is produced at cheaper rate in other parts... We can pay more than the Americans when they earn 20times more than us. The funny thing is that even these guys have jacked up prices across all bands

slowice:


Electricity is produced at cheaper rate in other parts... We can pay more than the Americans when they earn 20times more than us. The funny thing is that even these guys have jacked up prices across all bands

Actually, electrcity is not produced at a cheap rate anywhere. It's expensive elsewere (at least until the band A increase.).

And the reason why it would be very expensive when full deregulation occurs is because the mess left by years of price controls and cheap power mean we have a very bad power sector.

That;'s what happened with GSM, and why we were paying at one time 10000 or more naira for a SIM back then. Years of NITEL running like a subsidisied company meant we had a very terrible infrastructure for telephony. MTN, and company had to build everything from scratch...we had zero supporting infrastructure for GSM back then. But as the investment paid off, making prices cheaper became profitable.

Basicend:
Band A customers are mostly in Rich Areas of the country, i.e, those that receive abt 20-24 hours daily electricity daily.

Although the increase margin is very unrealistic.

Most people need to Google and search for their settlement category before wailing online.

Yes, we will keep fighting all forms of exploitation from the govt.

If you are in Lagos, here is a link to check:

https://guardian.ng/news/list-of-lagos-areas-on-band-a-to-enjoy-20hrs-electricity/.

Thanks but your link is for IKEJA DISTRIBUTION and does not cover the whole of Llagos. The remaining part of Lagos state are under the EKO DISTRIBUTION

nairalanda1:


You do not like the answer of your question.

Things cost money, sadly. If you want 24 hour power, you pay the price for it. Or you take your bad power without complaining.

Your assertion doesn’t make sense when you compare the Nigerian situation to other countries in the world. Most people in advanced countries can’t survive under the conditions you are supporting. You are defending the indefensible.

Anatolia:


Your assertion doesn’t make sense when you compare the Nigerian situation to other countries in the world. Most people in advanced countries can’t survive under the conditions you are supporting. You are defending the indefensible.

So, enjoy your bad power supply. It's what we can afford, I suppose

Prices don't respect your earnings after all.

nairalanda1:


Actually, electrcity is not produced at a cheap rate anywhere. It's expensive elsewere (at least until the band A increase.).

And the reason why it would be very expensive when full deregulation occurs is because the mess left by years of price controls and cheap power mean we have a very bad power sector.

That;'s what happened with GSM, and why we were paying at one time 10000 or more naira for a SIM back then. Years of NITEL running like a subsidisied company meant we had a very terrible infrastructure for telephony. MTN, and company had to build everything from scratch...we had zero supporting infrastructure for GSM back then. But as the investment paid off, making prices cheaper became profitable.

Do you really think this can happen with electricity.? As we speak they have cunningly increase bill across all bands. I usually pay between 20 to 25k monthly in my business place, but today's bill was a whopping 80k for a band D customer. You see how criminally minded they are? FG gave them an openly cheques to steal Nigeria blind

slowice:


Do you really think this can happen with electricity.? As we speak they have cunningly increase bill across all bands. I usually pay between 20 to 25k monthly in my business place, but today's bill was a whopping 80k for a band D customer. You see how criminally minded they are? FG gave them an openly cheques to steal Nigeria blind

The thing is, we don't have much of a choice. Electricity in Nigeria is going to cost a lot of money to fix. Money men and women won't lend money to the sector without expecting return on investment. Serious investors won't enter the market unless they can see return on investment

And they can do that if the sector is allowed to charge a cost reflective tarrif.

It's effing unfair, I don't like it, and I wish there was another way. And even if we spent 90 billion for Hajj on building 9 geometric power stations all it means is 9 cities get power , then the maintenance and expansion costs come in.

I effing wish there was another way. But here we are.

nairalanda1:



Businessman ain't gonna get any funds if at the end of the day, those who give him the funds have no expectation of seeing them back.

See, the only way must businesses get money to do things is by loans. And the loans got to be paid back...that's why we need the capitalism both of you hate...ie cost reflective tarrifs so that they can pay back those loans. ANd the power sector is so knobbled by no cost reflective tarrifs, it can;t pay back the loans they have taken, and no one wants to give them loans.

Nothing goes for free. It's effing unfair, but it is what it is. Also, no one has a magic pot that gives you money on demand. At the end, investors want return on investment.

But then, both of you can disagree with me, but at the end, things cost money. NO one gives anything for free.

So which bank has cried that they are being owed by Discos?

In one breath, you say it's through loans that businesses are funded. In another breath, you say businesses need to set high prices to fund their operations.
Which is which

nairalanda1:


Yeah, and things always do, at the end, cost money. Stuff doesnt build itself by itself.

Most of the electrical infrastructure are inherited by the discos so what are they building exactly that they need money for

nairalanda1:



Businessman ain't gonna get any funds if at the end of the day, those who give him the funds have no expectation of seeing them back.

See, the only way must businesses get money to do things is by loans. And the loans got to be paid back...that's why we need the capitalism both of you hate...ie cost reflective tarrifs so that they can pay back those loans. ANd the power sector is so knobbled by no cost reflective tarrifs, it can;t pay back the loans they have taken, and no one wants to give them loans.

Nothing goes for free. It's effing unfair, but it is what it is. Also, no one has a magic pot that gives you money on demand. At the end, investors want return on investment.

But then, both of you can disagree with me, but at the end, things cost money. NO one gives anything for free.

Listen bro, nobody is against anyone doing legit business. What were against is the blatant robbery that's going on in the power sector just like most other sectors in the country. The power guysake a killing from estimated billing and I believe it's a prime reason why they're so lethargic as regards taking any meaningful actions to improve the sector. Generate and distribute 1MW and bill consumers for 10MW.

Regarding them making losses, that's what they want us to believe. They're even doing a very poor job pushing that narrative. I mean, how does a company that is struggling to survive engage in CSR no matter how small. Is there a law that mandates such?

Check the link below for evidence from one of them:
https://www.ikejaelectric.com/csr/

Also, the idea that power is so expensive globally is not entirely correct. Some states in the "almighty" US with a minimum wage of about N1.5m equivalent pay les than N120/KWH. See proof below:

https://www.electricchoice.com/electricity-prices-by-state/

The truth is that successive governments have always taken the easy way out which is shifting the responsibility to the citizens. They sold the few power infrastructure we have for cheap. Now they want to use our money to "improve" the same infrastructure. Mind you, history tells whoever cares to listen that they'll not improve nada. It's going to be same old same old until we get a government that is ready to do the right things.

When you tell Tinubu supporters they have been brainwashed they pick offence. Kikikikikiki Tinubu till 2098

This people dont have the fear of God,,, u and ur family are enjoying and people under u are crying