[size=14pt]Steady electricity supply reduces operational cost of firms, families[/size]

Many businesses are now benefiting from the relative stable power supply in the country as the consumption of Automotive Gas Oil (AGO), also known as diesel, has reduced considerably, BusinessDay investigations have shown. As expected, this is impacting positively on operational costs of many firms as well as the cost of running families who use diesel to power their generators.

[size=13pt]BusinessDay investigations revealed that some commercial enterprises are using about half the volume of AGO that they used some months ago before the improvement in power supply from Power Holding Company of Nigeria (PHCN).[/size]

Captains of industry and chief executives of companies who spoke to BusinessDay confirmed that they now have more hours of electricity supply, and were spending less on the purchase of diesel. Two chief executives of oil marketing companies told BusinessDay that as a result of the improvement in power supply, there was excess diesel supply, causing a drop in price from about N120 to about N106 per litre. John Osakwe, chief executive, Fab Enterprises Nigeria Limited, a fabrication company, said that in the last one month, the company had relied more on public power supply than generator and this has resulted in savings of at least 40 per cent of the cost when it ran full time on diesel.

“I just hope that the situation will improve further as time goes on. The company spends an average of N1.5 million per week but this has reduced to about N1.1 million since around mid-July”, he told BusinessDay.

The executive secretary of Major Oil Marketers Association of Nigeria (MOMAN), Olorunfemi Olawore, said that the current stability in electricity supply may be responsible for the reduction in the consumption of diesel. On whether the situation has impacted on the sale of generators, some of the officers of the big time sellers of generators said they are not authorized to comment on the market situation. But those who spoke on condition of anonymity told BusinessDay that they have not witnessed any difference in the market.

The Power generation from various electricity plants across the country has improved to about 3,804.3 megawatts recently, and this position has been maintained by the PHCN. Lagos alone gets about 1,012MW or an average of 928.3MW as a result of this improved generation. A breakdown of the capacity of the various plants indicates that Kainji has 170MW; Jebba, 415mw; Geregu, 76mw; Omoku , 27mw; Omotosho, 65.9mw; Olorunsogo , 85.7mw; Shiroro, 420mw; Egbin 711mw,Transamadi 212mw. Others are: A.E.S, 204.5mw; Sapele, 170mw; Ibom , 80mw; Okpai, 452mw; Afam vi, 456mw and Delta, 450mw. All the hydro power stations are working in full capacity, except Kainji. However, the thermal stations are working below their installed capacities.

Hussein Labo, the managing director of PHCN, attributed the improvement in generation to improved funding received from the government. Labo assured that the current level of generation would be sustained even after this raining season. According to him, a good number of transmission sub-stations across the country have been reinforced so that some of the bottlenecks created by transmission would be corrected.

Commenting on the development, Goody Duru, the managing director, Powtechnology, said that PHCN could sustain the current capacity beyond the rainy season as various maintenance works are going on at different stations.

[size=13pt]The right people are handling the maintenance work for the first time. The presidential Adivsory Committee is giving the power sector the necessary financial backing and had recommended to the Federal Government that as a short term measure, it should generate additional 1,311megawatts between now and December 2010 by fast-tracking the National Independent Power Projects (NIPPs) and rehabilitating the existing power plants.[/size]


http://www.businessdayonline.com/index.php?option=com_content&view=article&id=13968:steady-electricity-supply-reduces-operational-cost-of-firms-families&catid=85:national&Itemid=340

All well and good but I really can't wait for the whole darn thing to be deregulated and put in private hands with different companies fighting for costumers (same with the petroleum sector too).

Sky Blue:

All well and good but I really can't wait for the whole darn thing to be deregulated and put in private hands with different companies fighting for costumers (same with the petroleum sector too).

The deregulation has already started, lets hope the whole of PHCN can be disposed off pretty sharpish. This is surely going to be several times the size of the telecoms explosion.

[size=14pt]PHCN: NCP Approves Sale of 11 Distribution Firms to Core Investors[/size]From Kunle Aderinokun and James Emejo in Abuja, 08.24.2010

The National Council on Privatisation (NCP) has approved “core investor” sale strategy for the privatisation of the 11 distribution companies created out of Power Holding Company of Nigeria (PHCN.)
The decision was taken at the third meeting of the council for 2010 chaired by Vice President Mohammed Namadi Sambo last Thursday at the Presidential Villa, Abuja. . .

More here http://www.thisdayonline.com/nview.php?id=181391

All well and good but I really can't wait for the whole darn thing to be deregulated and put in private hands with different companies fighting for costumers (same with the petroleum sector too)
http://www.dailyfinance.com/story/gas-prices-around-the-world/19543148/

GAS PRICES AROUND THE WORLD

1. Asmara, Eritrea | $9.59

2. Oslo, Norway | $7.41

3. Copenhagen, Denmark | $6.89

4. Hong Kong | $6.87

5. Berlin, Germany, and Monaco, Monte Carlo | $6.82

6. London, U.K. | $6.60

7. Rome, Italy | $6.44

8. Paris, France | $6.04

9. Sao Paulo, Brazil | $5.69

10. Seoul, Korea | $5.55

11. Tokyo, Japan | $5.40

12. Singapore, Singapore | $4.81

13. Nairobi, Kenya | $4.31

14. Mumbai, India | $4.25

15. Santiago, Chile | $4.18

16. Johannesburg, South Africa | $4.05

17. Sydney, Australia | $3.84

18. Toronto, Canada | $3.81

19. Beijing, China | $3.71

20. Bangkok, Thailand | $3.64

21. Buenos Aires, Argentina | $3.58

22. Havana, Cuba | $3.64

23. Karachi, Pakistan | $3.02

24. New York, U.S. | $2.85

25. Moscow, Russia | $2.80

26. Mexico City, Mexico | $2.45

27. Lagos, Nigeria $1.62

28. Dubai City, United Arab Emirates $1.57

29. Cairo, Egypt | $1.17

30. Kuwait, City, Kuwait | 85 cents

31. Riyadh, Saudi Arabia | 45 cents

32. Tehran, Iran | 32 cents

33. Caracas, Venezuela | 6 cents

See full article from DailyFinance: http://srph.it/b57nJl

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All well and good but I really can't wait for the whole darn thing to be deregulated and put in private hands with different companies fighting for costumers (same with the petroleum sector too)
http://www.dailyfinance.com/story/gas-prices-around-the-world/19543148/

GAS PRICES AROUND THE WORLD

1. Asmara, Eritrea | $9.59

2. Oslo, Norway | $7.41

3. Copenhagen, Denmark | $6.89

4. Hong Kong | $6.87

5. Berlin, Germany, and Monaco, Monte Carlo | $6.82

6. London, U.K. | $6.60

7. Rome, Italy | $6.44

8. Paris, France | $6.04

9. Sao Paulo, Brazil | $5.69

10. Seoul, Korea | $5.55

11. Tokyo, Japan | $5.40

12. Singapore, Singapore | $4.81

13. Nairobi, Kenya | $4.31

14. Mumbai, India | $4.25

15. Santiago, Chile | $4.18

16. Johannesburg, South Africa | $4.05

17. Sydney, Australia | $3.84

18. Toronto, Canada | $3.81

19. Beijing, China | $3.71

20. Bangkok, Thailand | $3.64

21. Buenos Aires, Argentina | $3.58

22. Havana, Cuba | $3.64

23. Karachi, Pakistan | $3.02

24. New York, U.S. | $2.85

25. Moscow, Russia | $2.80

26. Mexico City, Mexico | $2.45

27. Lagos, Nigeria $1.62

28. Dubai City, United Arab Emirates $1.57

29. Cairo, Egypt | $1.17

30. Kuwait, City, Kuwait | 85 cents

31. Riyadh, Saudi Arabia | 45 cents

32. Tehran, Iran | 32 cents

33. Caracas, Venezuela | 6 cents

See full article from DailyFinance: http://srph.it/b57nJl

?? I don't get why you quoted me and put up the list.

I don't get why you quoted me and put up the list

Gas price in New York is  $ 2.85, Gas price in Lagos is $1.62. Price differential: $1.23
Minimum wage in NYC is $7.25  per  hour based on 40 hrs work wk of 300  dollars , minimum wage in Lagos per hour is $.05 based on 40 hr work wk of N18,000 per month. Why is gas cheaper in Saudi, Iran and Venezuela.

When is Jonathan declaring his power roadmap? I hope his roadmap will take us to the promisedland and another committee will not be set soon to fashion out another one.

adconline:

I don't get why you quoted me and put up the list

Gas price in New York is  $ 2.85, Gas price in Lagos is $1.62. Price differential: $1.23
Minimum wage in NYC is $7.25  per  hour based on 40 hrs work wk of 300  dollars , minimum wage in Lagos per hour is $.05 based on 40 hr work wk of N18,000 per month. Why is gas cheaper in Saudi, Iran and Venezuela.

News flash, Nigeria is a poor country and the money the government spends on subsidising the gross and corrupt inefficiency of the petroleum sector (NNPC et al) is money that could be sunk into capital projects like infrastructure which would attract more investment from the private sector that would better run these sectors, employ people, create an environment where business can grow, and ultimately increase the minimum wage you are so quick to quote. What do you think the fuel subsidies are used for? The system is grossly corrupt and every year billions which could be used to invest in capital projects are thrown into this subsidy blackhole. I think you might want to research a bit more on the issue and why people call for deregulation of the oil sector. At the end of the day if we invest more in refineries and infrastructure, or better yet, allow an enabling environment for the private sector to grow in that sector, then simple market forces will drive prices down. If not why don't you tell me why price of fuel is more expensive in the UK than it is in the states (both of which are developed economies)?

Enemies will refuse to see this kind of thread. Any thread that fails to label GEJ as clueless is unattractive.

na_so:

Enemies will refuse to see this kind of thread. Any thread that fails to label GEJ as clueless is unattractive.

Don't mind them jare! They will rather flock around false stories placed in discredited papers like the sun.

Hellooooooooooo Ezeuche22 and similar negative haters. Make una come out na!

[b]News flash, Nigeria is a poor country and the money the government spends on subsidising the gross and corrupt inefficiency of the petroleum sector (NNPC et al) is money that could be sunk into capital projects like infrastructure which would attract more investment from the private sector that would better run these sectors, employ people, create an environment where business can grow, and ultimately increase the minimum wage you are so quick to quote. What do you think the fuel subsidies are used for? The system is grossly corrupt and every year billions which could be used to invest in capital projects are thrown into this subsidy blackhole. I think you might want to research a bit more on the issue and why people call for deregulation of the oil sector. At the end of the day if we invest more in refineries and infrastructure, or better yet, allow an enabling environment for the private sector to grow in that sector, then simple market forces will drive prices down. If not why don't you tell me why price of fuel is more expensive in the UK than it is in the states (both of which are developed economies)?[/b]

To date, Nigeria has made about $500 billion from oil and doesn't have anything to show for it because it did not invest in public  infrastructure not as a  result of   fuel subsidy, but because of corruption. A govt that  doesn't  take care of  its citizens, no social security, unemployment benefits, epileptic power supply, the list is endless is complaining about subsidy of oil that is dug from our back yard. I'm telling you that oil is not cheap already in Nigeria. If the govt stops their so called subsidies, the  money will go into private bank accounts in Dubai and Switzerland.

Govts give out subsidies all over the world.  UK subsidizes NHS, US govt pays out $.50 for every $1 the US farmers make, Amtrack is US govt run, France controls it energy company, RSA  controls Eskom. In Venezuela govt provides social services to her citizens. Who does my  mum have  for kerosene based on NYMEX ascribed value while she gets paid peanuts in Nigerian Naira? Prices of things will fly because there is no govt public transport system in Naija.

OBJ spent billions in purchasing president jets, a couple of years later GEJ wants to spend about $200  million for the same venture. The problem with Naija is not subsidy, but govt full of  fat cats.  Our daily bpd consumption is less then 200,000 barrels , so  it's drop a  in the ocean if Nigerians  would enjoy our given resources at a reasonable price.  It's like  a fisherman charging his family the highest price his fish could sell in international market even though his family was part of the labor in employed for the fishing.

adconline:

To date, Nigeria has made about $500 billion from oil and doesn't have anything to show for it because it did not invest in public infrastructure not as a result of fuel subsidy, but because of corruption. A govt that doesn't take care of its citizens, no social security, unemployment benefits, epileptic power supply, the list is endless is complaining about subsidy of oil that is dug from our back yard. I'm telling you that oil is not cheap already in Nigeria. If the govt stops their so called subsidies, the money will go into private bank accounts in Dubai and Switzerland.

Govts give out subsidies all over the world. UK subsidizes NHS, US govt pays out $.50 for every $1 the US farmers make, Amtrack is US govt run, France controls it energy company, RSA controls Eskom. In Venezuela govt provides social services to her citizens. Who does my mum have for kerosene based on NYMEX ascribed value while she gets paid peanuts in Nigerian Naira? Prices of things will fly because there is no govt public transport system in Naija.

OBJ spent billions in purchasing president jets, a couple of years later GEJ wants to spend about $200 million for the same venture. The problem with Naija is not subsidy, but govt full of fat cats. Our daily bpd consumption is less then 200,000 barrels , so it's drop a in the ocean if Nigerians would enjoy our given resources at a reasonable price. It's like a fisherman charging his family the highest price his fish could sell in international market even though his family was part of the labor in employed for the fishing.

What I can gathre from the above is that we should be getting free or subsidised electricity. That will never work, end off.
Nigeria gives more subsidies through our planlessness, eg the population does not pay taxes. What greater subsidy can there be than not paying taxes?

This year, for the first time in its history, the NNPC has been audited and reorganised in such a way that it is serving Nigeria, rather than private pockets. We've got to take our steps one at a time. A sovereign wealth fund is being set up so the govt can invest oil money, instead of govt foolishly spending as has been the case up to now. But these changes take time, however, it is sure that they are being delivered.

What I can gathre from the above is that we should be getting free or subsidised electricity. That will never work, end off.
Nigeria gives more subsidies through our planlessness, eg the population does not pay taxes. What greater subsidy can there be than not paying taxes?

This year, for the first time in its history, the NNPC has been audited and reorganised in such a way that it is serving Nigeria, rather than private pockets. We've got to take our steps one at a time. A sovereign wealth fund is being set up so the govt can invest oil money, instead of govt foolishly spending as has been the case up to now. But these changes take time, however, it is sure that they are being delivered.

How much taxes do folks in Venezuela , Kuwait, Saudi, Iran, Libya and UAE pay? Are their citizens not better than Nigerians? Are their govts not more efficient than Nigeria? OBJ invested $16 billion on NEPA, yet we are worse off. Was the money spent on subsidy? No , it went into private pockets. The problem with Naija is not subsidy, but clueless and greedy politicians who pocket over 80% of public funds into private accounts. Good governance is a precursor to taxation. Danjuma made $500 million from an oil well and we are talking about govt subsidy on petroleum products for over 150 million folks . There is their so called subsidy because the govt has refused to build power grid, and transmission lines to power businesses and homes in Nigeria. If this is done, there would be less demand for petroleum products. Talking about power, French and South African govts own their power companies, are they not better than Nigeria? Nigeria with 150 million folks generates less than 10% of what RSA's Eskom generates about 45,000 MW.

adconline:

I don't get why you quoted me and put up the list

Gas price in New York is  $ 2.85, Gas price in Lagos is $1.62. Price differential: $1.23
Minimum wage in NYC is $7.25  per  hour based on 40 hrs work wk of 300  dollars , minimum wage in Lagos per hour is $.05 based on 40 hr work wk of N18,000 per month. Why is gas cheaper in Saudi, Iran and Venezuela.

Gas price in NY is measured against the GALLON while that in Lagos is measured in LITRE!!! 1 Gallon of Gas in Nigeria is definitely going to cost you more than $1.62. Sorry, could you redo the calculation now?