₦airaland Forum

Pavore9:
Water is not a product of industrialization nor technology.

Clean portable water usually is...
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deomelo:
Power generation in Nigeria as we speak is a private affair aka Privatization where any entity including the GENCOS and other investors so exactly what are you rambling about?

Is privatization by definition not to allow investors to explore other forms of power generation and transmission? Is there any law in Nigeria against that.

Do we even have to tell the GENCOS and DISCOs to diversify and get into wind, solar and so on? Is power generation and distribution not their job?

As usual, jokers like you just love to hear yourself ramble on and on over nothing.

Not even interested in the rest of your lame rant.

Yes, there is....

DISCOs cannot generate power. They are only licensed to distribute power. Therefore, they can distribute (but NOT generate) alternative power supplies. Meanwhile, any potential investor in generation (including GENCOs) will require separate licenses and permits to construct and operate renewable energy plants of more than 30MW capacity (see current NERC regulations).
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CodeTemplar:
Gas is cheap enough and very close to good number of gencos. Any other explanation are largely circumstantial. They power system men have no excuse to again.
Oga, metering of electricity isnt a expensive undertaken, has never been and would never be. You can prove me wrong.
What we have a corrupt system where nothing logical is given a chance to happen.

According to the federal regulator NERC’s own figures...
Single-phase meters should cost about N38K while three-phase meters cost about N67K.

Accordingly, for a DISCO with (for example) about 1 million consumers, that anywhere from N38 billion to N67 billion right off the bat (without factoring in installation, maintenance or other logistics or associated costs).
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CodeTemplar:
Oga gas is affordable at a competitive rate, the structures to supply it are largely in place ( save for vandalism based interruptions ) so what exactly are you concocting here?

Let’s not even yet delve into gas distribution facilities in a vast country like Nigeria, which even you admit is prone to wanton vandalism...

Why were several of the completed NIPP power plants not operational, if not for the lack of gas and gas distribution infrastructure?
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CodeTemplar:
Oga gas is affordable at a competitive rate, the structures to supply it are largely in place ( save for vandalism based interruptions ) so what exactly are you concocting here?

Which structures? Can you please share with us how many gas gathering and processing facilities are presently available in Nigeria (and be specific wrt location)? And do you know how much these facilities cost (or why a Nigerian producer like Seven Energy became insolvent)?
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sean079:
Cheif stop posting this nonsense everywhere, he major problems is the with discos. How will you set up an industry without investing in the right infracture that will guaranty the business survival. The discos failed investing in the power sector. Which power distribution company goes around disconnecting consumer manually in this 21st century when ideal way should have been to disconnect from their end automatically. All over Nigeria there are visibles power cables whereby proper infrastructure suppose to be underground cables to connect various building. No provision of meter to numerous consumer because of their dubious means of dishing out estimated billing. Probably you already forget about what happened in ilesha where discos were caught hoarding prepaid meters.

But the DISCOs did NOT build the present electricity distribution infrastructure...

If you (and the government still owns 40% of the DISCOs) them to modernize/expand the existing dilapidated infrastructure, then you have to fulfill the premise of the electricity sector reform roadmap (of which the partial privatization is merely one part of) by completing and/or satisfying all other associated and ancillary steps thereto (including the EXPRESSLY-stated provision for COST-REFLECTIVE tariffs). You certainly cannot lock the DISCOs into a loss-certain price regime and expect them to overhaul 60 years worth of poor infrastructure in 4 years.
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bendike:
Bros Deomelo, I always considered you as one of the intelligent ones on nairaland. You Bleep up this time ohh!

The point of the ex minister was not to criticize but rather he simply asked if Nigeria was prepared for the post oil world. Alternatives to oil for power generation is being used eg solar, electric cars etc and since our economy depends on oil, what happens when there is lower demand?

Thought Mr. Chidioka’s Plain English words were clear enough...
But as I read through deomelo’s comments I suspect he’s ‘blinded’ by political partisanship.
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CodeTemplar:
Gas is cheap enough and very close to good number of gencos. Any other explanation are largely circumstantial. They power system men have no excuse to again.
Oga, metering of electricity isnt a expensive undertaken, has never been and would never be. You can prove me wrong.
What we have a corrupt system where nothing logical is given a chance to happen.

How could you have so completely missed the obvious point?

The GENCOs do NOT produced gas (or own gas acreages), and thus if the domestic pricing of gas (which again is terribly CAPITAL INTENSIVE) is artificially suppressed or otherwise rendered unattractive, the gas producers are less incentivized or otherwise less-inclined to invest in domestic gas gathering and supply facilities - especially when they can get much better returns by investing in gas projects for export.

Producers are NOT sitting on an inexhaustible amount of “free” investible capital. Accordingly, most (if not all) capital intensive production projects require debt financing, and if the producer approaches its bankers or such other financiers with unattractively-priced projects they are either going to be rebuffed or compelled to pay much higher (risk-reflective) rates that would render the project less economically viable.
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deltateam:
Gerrarahia mehn.

deomelo:
Fact is, Nigerians are already using Solar energy and there are tons of solar energy providers, including start up innovators, even the same Gas station he referenced is using solar panels so of what relevance was his question?

The problems with solar energy and broad participation are cost and education, not readiness. We'll consume electricity regardless of the source.

And how does that change what he said or renders it irrelevant?
The REALITY is that Nigeria is still an overwhelming (90+%) hydrocarbon-based economy.
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Youngstar76:
Gee what are u evening saying? Produce something at N60 per commodity n sell at N38 per commodity. Who does that? It's only when there's subsidy from the government that business companies do that. But where is electricity subsidy? It's no where.

*I'm an electrical engineering student in my final year, so ntin u gonna tell me about basic consumer side electricity that's new to me.

I am writing in Chinese?

Dude, without NBET (which is effectively interposed between the DISCOs and the GENCOs), the DISCOs would have long ago declared financial insolvency or would owe so much to the GENCOs that the latter would have stopped generating/supplying power.
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Curiouscity:
People just wake up to compare things in naija to developed places. The Dubai guy should tell us what is the minimum wage in United Emirates vis-a-vis Nigeria.

The national minimum wage in USA is about $8.5USD/hr, which means about $1360USD per month. N30,000.00 that the guy mentioned is far above our minimum wage.

Our goods and services must be priced with our national minimum wage taken into consideration.

Personally, I am usually not one to compare apples with oranges...
But if you do not want to compare Naija to “developed places”, then why are you expecting constant electricity like in “developed places”?

The REALITY of course is that the turbines, generators, and other necessary equipment to generate electricity are imported and paid for in hard currency (as well as most of the cost of constructing and maintaining power plants). Meanwhile, unlike in most (if not all) of “developed” places, people are not vandalizing your equipment and lines or kidnapping your workers. The REALITY is, whether it is in Nigeria or so-called “developed places”, the pricing of electricity (or in fact, any or most other economic product) has to be adequate to cover the cost of production and to even generate a reasonable profit, otherwise no reputable investor (and there are trillions of investible capital across the globe searching for safe and lucrative investments) would be willing to inject the capital into Nigeria necessary to improve power supply.

Development comes at a COST (and best be assured that those “developed places” paid theirs). Nonetheless, if government (which btw still owns 40% of the equity of the supposedly ‘privatized’ DISCOs) believes that cheap electricity is desirable (or a crucial national strategic imperative), then the government should DIRECTLY subsidize electricity prices, rather than trying to foist it upon private businesses/investors.
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Youngstar76:
He said "Even in America".
No need for the long epistle. Go and his comment, meditate on it, understand it. Then proceed to edit your comment.

No, he didn’t...
Perhaps someone else did, but the dude’s comment never referenced the US.
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CodeTemplar:
The discos are corrupt and everyone knows this. If you are trying to justify estimated billing along with you indirect call for higher tariffs, then I am dissapointed. The discos can't tell us they are selling electricity at a loss to those already with prepaid metres. In 2016 they increased power rate and promised us improved supply but where is the improvement in supply?

Let's even address the claim of high cost of generation of electricity self, What drives the cost of electricity high in Nigerian between GENCOs and DISCOs? The have gas at unbeatable prices, pay staff run down salary, and have metres to measure what is being used. So what drives our own cost up?

Artificially capping the price of gas merely works to ensure that gas production is unattractive for gas producers (the IOCs, etc.)...
The gathering and processing of gas is a very CAPITAL INTENSIVE business, and that’s it’s been more attractive to produce for export.

Meanwhile, metering is actually an expensive undertaking (and yet people are discussing it here as if it has no cost implications at all), and therefore given the precarious balance sheets of the DISCOs rollout has been gradual. Hopefully, the onset of the so-called MAPs regime will speed up the process. In an estimated population of nearly 200 million, to have only 6 million registered electricity consumers sounds fishy.

yahaya1:
WHAT IS HIS POINT ACTUALLY? THAT IS WRONG FOR THEM TO USE SOLAR TO POWER THEIR ⛽.

deomelo:
I scratched my head looking for answer too. Is solar power and solution not commendable or exactly what we should be encouraging?

Opposition in Nigeria is really rettarded, they just oppose and spew rubbish for the most idiotic reason..

Actually, his point is quite clear in the last sentence of the tweet: “Is Nigeria ready for a post-oil world?”
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bilulu:
Bros people don't pay because they don't see the light to use. If you are sure you supplied light to your customer at the end of the month you should be able to collect your money. Supply prepaid metres and watch people buying light. I know of one of the biggest international NGO in Nigeria, they don't joke with their NEPA bill. They have their post paid metre which is being read at the end of the month and the cost always run into millions, and they always make their payment every month. The day they delayed in paying they were disconnected. So DISCOs should up their game Abeg. Most time they don't even buy light sef

Can you say the same for the Nigerian military, police or MDAs?
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duality:
Right now Nigerians are paying too much, will /should not pay more until the reliability issues are resolved.

Depends on what you define as “too much”?
If (for example) you are paying about as much for a generator, then you are paying half of the REAL cost of electricity.

Nonetheless, as I mentioned elsewhere on this thread, capping tariffs at an average of N38/kWh for electricity generated at an average of about N60/kWh ensures that DISCOs (even if they achieve the impossibility of collecting 100% payments and no Nigerian steals electricity) will never have the balance sheet to attract the necessary capital (and there is a lot of capital across the globe looking for good long-term investments) to massively modernize and expand their facilities and improve upon (if not entirely eliminate) “reliability issues”!
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Youngstar76:
Guy stop this bullshiting. No don't ever in your life compare compare Nigeria to America again. No one would complain of the price of electricity in Nigeria if it was stable. Even if u pay the 30k for a month, there will still be power interruptions within the month. The power sector needs a new reform and not increase in price.

When u pay for ELECTRICITY in USA, u get exactly what u paid for. But in Nigeria it's the opposite. I stay in Chicago with my parents for about 4 months every year since 2011 before coming to Nigeria n I know what I'm saying. I only come back here cos I school here at RIVERS STATE UNIVERSITY on scholarship. I'll be done next year. Can't wait to finish n leave this shit hole permanently.

Where exactly did he “compare Nigeria to America”?!

Meanwhile, whether you live in Kaura Namoda or somehow found your way to Mars, the Laws of Economics will NOT change to accommodate Nigeria. Accordingly, if you produce electricity at an average cost of about N60/kWh and is restricted to charging an average of only N38/kWh (assuming that you can collect 100% payments - which virtually impossible even in the best of circumstances), you will never have the balance sheet to attract capital (either equity or debt) to finance capital investments that will modernize and expand your distribution capacity. This is the REALITY, whether your product is electricity or Akara or Amala or Aso Ebi! However, it is even worse with electricity because once produced it cannot be bottled and stored in a warehouse (for sale when market conditions improve) but has to be consumed immediately!
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duality:
If Nigerians can pay for Telcom services, they can pay for electricity.

Let it be reliable, let there be proper metering.

Until then, they are not serious.

Let there be cost-reflective tariffs for whatever is presently being supplied...
The present tariff regime ensures that DISCOs will never have the balance sheet to invest in capacity upgrades (they are NOT bankable).

The irony is that (whether they know it or not) Nigerians are already paying the real cost of electricity...
Either directly by paying for generators and fuel to power same or indirectly through the opportunity cost of not having power.
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tactius:
Ok...I know I'm going to be called names for this, but here goes.

Several years ago, we privatised power...and since then power has been in private hands.

And one of the biggest problems has been financing. Yes, financing of power.

A lot of Nigerians don't pay for power. Add the fact that the bills we are paying are set below the actual cost of power. This has driven away investors, and we fail to attract new ones.

As a result, DISCOS and GENCOS don't have enough money. Last year, one of the DISCOS gave up and handed back over to the government because it was not making enough money to do business properly.

And the fact is, millions of Nigerians feel ENTITLED to free power. You know, if you guys were running businesses, and people came in and took your products for free...you would be wiped out financially.

If we want power to work...government has to allow the DISCOS charge for power. YES...power will cost a lot. YES...we would be paying N30000 and above per month. And the DISCOS should meter everyone(which is what is happening with MAP by the way).

But the thing is POWER IS PRIVATE....and POWER is now a business.(and ironically Chidioka's government was the one responsible for privatising power). And the reason why we are only seeing 5-6 hours of light per day...is because THAT IS WHAT OUR BILLS CAN PAY FOR.

Let's be realistic.

Why do you think you would be called “names” for telling the TRUTH?
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Jonegonu:
Please Nigeria don't listen to that man called osita chidoka, if you can afford to get one solar panel in a self contain it will go along way in giving you 247 power supply in your home and stay away from phcn esteemeted bills. Long live Nigeria

I don’t think Mr. Chidoka was actually “lamenting” this development....
That adjective seems to be a mischaracterization of his tweet by the OP.
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danjumakolo:
It still plagues my mind why fed gvt doesn't wanna invest in coal for power generation.

Dangote Cement uses coal to power some of its plants...
However, coal is mostly ‘dirty’ power and to make it safe is often not cost-efficient.
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RIP...

deltateam:
Comment and go. Stop forcing others to think along your line. Its individual comments.

Nope! It’s a PUBLIC DISCUSSION forum (emphasis added)...
If you don’t want the PUBLC to DISCUSS your opinions, then keep them to yourself. SMDH
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Jobless youth...
Organizing spurious “awards” for sponsorship and ‘transport’ money.

QueenSekxy:
The guy mumu. See as he laid down like a helpless beggar.

Thanks to the gf that knocked some senses into him.

deltateam:
People react to such in different ways. She must truly love him for going that far.

Please! If that was a dude doing the hitting and dragging “love” and “senses” wouldn’t be the terms used...
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If you have to beat and drag any person to respect you, then you are in the wrong relationship...
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BigBelleControl:
Almost thought it was the Eniola Aluko, Sone Aluko's cousin who played for England and Chelsea and now Juventus ladies.

But then, London is getting notorious for homicides from knife attacks. The mayor of London, Sadiq Khan should do something drastic. Donald Trump called him a disaster today even though the rate of killings in London is nothing compare to any city in the US.

Most of those crackheads should be given severe punishments when arrested in order to deter others from repeating the same.

Eniola is Sone’s sister, not cousin...
Kids of ex-Senator Gbenga Aluko, who himself is son of the late economist Samuel Aluko.

flexyrule:
Lagos state has no business having pipelines.

Nope! It’s NIGERIANS who have “no business” tapping into pipelines...

Virtually everywhere else pipelines are the cheapest, safest and most efficient means of transporting products...
In Nigeria, we have so vandalized pipelines that we now think it ‘normal’ to have fuel-ladened trucks sharing our roads. SMH
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In 1984, Union Bank was still effectively owned and controlled by the FEDERAL GOVERNMENT (with a majority shareholding of about 60%), so the Conflict of Interest was blatant.
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In 1984, Union Bank was still effectively owned and controlled by the FEDERAL GOVERNMENT (with a majority shareholding of about 60%), so the Conflict of Interest was blatant.
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alphaNomega:
As awkward as it may sound, there is SOME truth to what he is saying. Something is really wrong with black people and you know it

And it’s called the ‘self fulfilling prophecy’...
For when supposedly “educated” black folk like you lot believe there’s something inherently wrong with being black, you UNDERPERFORM!
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