nairalanda1:


Money is important, along with structual issues

You got to start by allowing the companies charge a cost reflective tarrifs, AND you got to enforce the law on corruption and illegal connections.

All put in the 2019 PwC report on power.

P.S

1.The arise news reports quotes the Financial derivatives company...which probably did the research and talked to people in the sector, because that is what they do essentially. They know what they talk about

2.Nairametrics did the same thing...research.

And no one is more expert than the stakeholders and operators in the nigerian electricity supply industry...NESI...who repeatedly state that the sector needs cost reflective tarrifs.

Kukutenla:

I took my time to read the two links. The following are obvious contradictions from the two.

1. Arise puts funding required $100bn over 20 years while nairametrics puts it at $100bn in 5 years based on Egypt's model.

2. Nairametrics put our energy need at 200GW while Arise puts it at 40GW.

3. Nairametrics puts installed generating capacity at 22GW while Arise article sums it as 12GW.

4. Nairametrics puts electricity access at 54% while Arise puts it at 20%.

I'm sure you'll agree that these are basic and fundamental parameters which have been wrongly computed and thus makes it difficult to agree with anything from the articles since they can't even agree on the numbers. It makes a joke of the so-called research.

That said, nairametrics seemed to adopt the Egyptian model in its submission which was solely govt driven and thus the question of pricing does not arise. The weakness in this model is that the energy mix and structure of both countries are different and so are the challenges facing them.

On the other hand, Arise identified pricing as a major concern but also identified other systemic issues which it concluded to be more fundamental and germane.

So, in your estimation, which of the two reports are we going with?

nairalanda1:


How is it wrongly computed?

Be as if say you don't want to believe . It's your perogative.

Anyway, good afternoon.

Kukutenla:

Can't you see conflicting figures?

Do you even read the links you drop or just doing your paymasters bidding?

nairalanda1:


Nope. Except in the years

I just see that one says it has to be done slower than the other.

Anyway, since you will still disagree and call me a liar , good evening.

Kukutenla:

Lol. Slower? Are you that poor at maths? How can $100bn in 20 years and $100bn in 5 years mean the same to you?
Again. Did you read through the links? Did you read the contradictions I highlighted (4)?
You stopped at no. 1!!

nairalanda1:


Good afternoon.

Kukutenla:

Rest

princepee:
624 mega watts?
So where is the light?
As I type now my whole area is in total darkness.

Solidex:
Generation of less than a thousand Megawat in country of over 200million population is not worth celebrating to me.
We should stop chearing the idiots in power up for a mediocre achievement.

lesbiconverter:
Yet tariff is increasing like say no be the same water dey generate the energy

boxypane:

You mean states like Kogi? That cannot manage her own resources.

nairalanda1:


Things do cost money. It does not have to make you angry and abusive, you know.

Kukutenla:

I thought it was cowrie not money that things cost o
Thanks for the info

nairalanda1:


It's true after all.

Kukutenla:

I find it odd too that things cost money

Communism doesn't work because people like to own stuff.. F.Zappa

In 2013, Nigeria decided to privatise the sector. But 10 years after, the expected yields from the privatisation of the NESI have been hampered, in part, by the inability of the Distribution Companies (Discos) to charge cost-reflective tariffs.

As a result, all operators in the NESI value chain have been affected, effectively constraining investment in the downstream, comprising the Discos; midstream, where the Transmission Company of Nigeria (TCN) holds sway and upstream segment, comprising the gas producers and Generation Companies (Gencos).

With such constraints, although total national installed generation capacity stands at 13,000MW, Nigeria barely manages to get a third of that to where power is needed. The rest is stranded.

Thus, what this means is that there’s a misalignment of the entire value chain from gas to consumers. Without cost-reflective tariffs, the federal government has been forced to subsidise the real cost of electricity (source)

People who want special taxes or subsidies for particular things seem not to understand that what they are really asking for is for prices to misstate the relative scarcities of things and the relative values that the users of these things put on them. . . Making anything artificially cheap usually means that it will be wasted.”
― Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy

nairalanda1:


Sorry about that.


And last

blamingthedevil:
Yesterday, the National Grid got a massive boost as 624MW was added from Zungeru HPP.

This was after a successful reliability test on the units.
With this addition, NESI will be better and the national grid shall grow. Let's continue to prioritize #energyaccountability and #energymanagement as we work towards a more sustainable future.

Kudos to continuity of APC Government.

Kukutenla:

No relationship between this and cowrie

Operators in the Nigerian Electricity Supply Industry (NESI) have called for the adoption of cost-reflective tariffs for energy to consumers to attract more investments and curb the liquidity challenge in the sector.

While acknowledging that the sector has not delivered on the objectives of the privatisation 10 years ago, they noted that poor liquidity was a major contributor to the market failure.

This is as the federal government has so far spent about N3.34 trillion in the past 10 years to subsidise the sector.

Speaking at the just concluded 2023 NESI market participants and stakeholders roundtable (NMPSR) in Abuja, chairman and board of directors of Mainstream Energy Solutions Limited, Sani Bello,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 criminalise and deter energy theft as well as non-payment of electricity bills,” he said.

In his intervention, the immediate past managing director, Abuja Electricity Distribution Company Plc, Engr. Adeoye Fadeyibi pointed out that presently only Ikeja, Eko and Abuja DISCO can continue as a going concern.

He noted that negative cash flow in the industry was affecting operations and the ability to improve power supply to customers.


Also speaking, the country director, Energy Market and Rates Consultant Limited, EMRC, Rahila Thomas said with less than 45 per cent of customers metered, customers were wary of constant increases in tariffs.

Kukutenla:

No relationship between this and cowrie

Kukutenla:

No relationship between this and cowrie

President of the African Development Bank, Akinwumi Adesina, has stated that Nigeria needs to implement cost reflective tariff or else investors would shun the power sector.

He made the statement after a closed door meeting with President Muhammadu Buhari, at the Presidential Villa, Abuja, yesterday, where he further identified the need to urgently address liquidity constraints in the power sector as well as diversifying to other renewable energy sources as key to ending the energy crisis in the country.

He said these, in response to a question on what strategy Nigeria needs to adopt to address the energy crisis in the country

countryman13:

Hmmmm! U need to go to Kogi n see d potentials there especially in d area of electricity. A trial will surely convince u!

nairalanda1:




SAUCE

nairalanda1:


This tariff review is in conformity with our policy thrust of maintaining a subsidized pricing regime in the short run, with a transition plan to achieve a full cost-reflective tariff over a period of, let us say three years." - Nigeria's Minister of Power, Adebayo Adelabu.

It looks scary but what the Honourable Minister is trying to do is actually what should be done. I understand the emotions and his non-elegant way of explaining things (an example: asking people to switch off freezers to save energy cost), but the path he is taking is the right one. Many do not pay electricity bills in Nigeria even as they complain of no electricity. So, besides reflective tariff, we must ensure we also improve collections.

Our challenge as a nation is how to make the rich pay their fair share. In America (feel free to attack me for bringing comparison), those in the cities pay more for phone bills than those in the rural areas. Their model is that if you do not subsidize the low density rural areas with the revenue from the high density city areas, no person can afford rural telephony.

If you apply that in Nigeria, Eti Osa LGA cannot be on the same rate as Epe on electricity rates, just like Oriendu Market Ovim traders cannot pay the same rate as Ariaria Aba traders. It is our lack of the use of data that makes our governance system inefficient.

I just want to caution the Honourable Minister, you cannot phase out electricity tariff; it would be a bad policy. What you can do is to phase out all for commercial customers, modulate for some residential customers especially in rural areas, but sustain subsidy for industrial customers to make them globally competitive as energy is a huge component of production.

For industrial customers, if a $100m subsidy helps to improve output by $15 billion, when you tax that output and activity associated with it, you can recover that $100m. But if a high tariff makes their products so expensive that the only option is Chinese products, Nigeria loses. Always remember that whenever Nigerian Customs beats annual revenue targets on import duties, we are de-industrializing Nigeria; reverse that for us.

SAUCE

nairalanda1:


.

SAUCE

WantsandMore:
How do you know ?

Kukutenla:

Still no cowrie. You ended up confusing the issues

boxypane:

Lots of potentials sir. But who will manage it?

countryman13:

Kogitee/expatriates of course! We have sound people as but we are politically handicapped especially in the last 8 years of yaya Bello's governance. Thanks

boxypane:

This is exactly the point sir. The state lacks the political will. The politicians in sensitive positions in Kogi do not see beyond their pockets. Imagine your state had the type of Governor Bornu state has.

blamingthedevil:
Yesterday, the National Grid got a massive boost as 624MW was added from Zungeru HPP.

This was after a successful reliability test on the units.
With this addition, NESI will be better and the national grid shall grow. Let's continue to prioritize #energyaccountability and #energymanagement as we work towards a more sustainable future.

Kudos to continuity of APC Government.

countryman13:

Connect ur service wire to a nearby river n get urself powered at no cost now!