₦airaland Forum

nairalanda1:
I am not a beauty queen. You are.

If you want to keep something from Lexy, put it in writing.

lexy2014:
You are a beauty queen. You just informed me that u are preparing for a beauty that I didn't even know existed.

How can 4.7tr naira be subsidy debt?

What is subsidy?

If you claim that half of 4.7tr is owed by government agencies, what happened to the money meant to pay for electricity consumed?

Will electricity companies setting their own tariffs to the high heavens prevent the military from owing and using free light?

nairalanda1:


See am.

nairalanda1:
Well, one could say the same thing about our telecoms industry from 2001-8. They charged high prices for very poor service, simply because the infrastructure was not there or was very poor to support GSM servicies and internet for all (infact it was non existent, so they had to build from scratch).

The power sector faces the same problem. Generation has to be improved and expanded to 88000mw...which is the bare minimum needed to guarantee 24 hours a day light for all of this country. Transmission has to be improved.

And a situation where , apart from Band A, most of the country is not paying or underpaying...where are they going to get the money from?

Either Nigeria does as the USSR did and borrows massively,with the debt coming back to bite us in the arshe, or the power sector gets deregulated, like, you know, Ivory coast did in the early 1990's, with the result that funding flowed in from the World bank and from investors. (IN Ivory coast, unless you are over 40 years of age, you won't have known grid collapses).

They need to charge better to pay for improvements, just as the telcos were charging sky high prices to pay for the GSM and internet backbone that we rely on for so many things.




They are prevented from making more money by the fact that government controls their prices.

Price controls is a nice way of winning votes, and making people feel good, but it is also why our power sector since it was privatised cannot pay for improvements and attract foreign investments.

Make we be honest with ourselves. Even if what you say is right, the issue of raising money remains. And government cannot afford to spend half our annual budget yearly , with the resultant deficit, over the next ten years, fixing power, which would still be subsidised, and which would still break down.

Fvck capitalism, but sadly it stays afloat because people wanna be paid.

lexy2014:
Exactly....see am:

How can 4.7tr naira be subsidy debt?

What is subsidy?

If you claim that half of 4.7tr is owed by government agencies, what happened to the money meant to pay for electricity consumed?

Will electricity companies setting their own tariffs to the high heavens prevent the military from owing and using free light?

Proudlyngwa:
You still don't get it.
It is not about price.
It is about service rendered being lumped together.
Let me use an area I stay to give you an example.
There are four mega hotels around where I stay, each night those hotels spend minimum of 50k to power Thier diesel generators, that is roughly around 1.5 million a month and they four of them 6 million, this guys can afford to pay Thier bills but they people around them can't and don't care, the cost of getting power to this guys is close to 100 million due to bogus power generation and transmission, who will cover the rest of the bill.
Now assuming the generator is around Thier area and production is determined by consumption, price of generation will reduce and people can pay the true value of products , not a price determined because production price must be met, even though most of the production is wasted or used by those who don't pay won't pay and don't care.

nairalanda1:
Exactly....see am:

How can 4.7tr naira be subsidy debt?

What is subsidy?

If you claim that half of 4.7tr is owed by government agencies, what happened to the money meant to pay for electricity consumed?

Will electricity companies setting their own tariffs to the high heavens prevent the military from owing and using free light?

nairalanda1:
Well, how would the transmission be improved if people ain't paying?

Make them pay, or cut them off. Simple.

lexy2014:
If private citizens can pay for fuel to run homes and businesses, why will they not pay for electricity if it's supplied and billed fairly?

nairalanda1:
4.7 trillion debt is essentially power subsidy debt....and half of the debt is legacy debt..ie debt owed by the rich, poor, and also by government institutions as well. (As stated in the report, an air force base owes N4 billion alone).

That's why when I say that power companies should be allowed to set prices, it is because of issues like the debt.

People here love to abuse me for stating the fact that the reason why we have issues with power supply is because our power sector is not allowed to set its prices. Because of that lack of deregulation, most of the time, we can't have good things...like 24 hour light a day...because the sector does not have the cash to pay for it.

What's even scarier is that the experts say that we need something like 15 trillion naira annually...like half our budget...every year, to fix power supply to the level that would enable it meet our needs.

Egypt that everyone loves copying now, has removed power subsides completely. And they disconnect anyone who does not pay for the power they use, rich or poor. That bit, we no wan copy.

The funny thing is that people were cheering when DISCO officals were being beaten up by the airforce people. People that owe 4 billion naira in unpaid bills to the same DISCO is who you were cheering for. And after you will complain about having no light.

nairalanda1:
Well, how would the transmission be improved if people ain't paying?

Make them pay, or cut them off. Simple.

missionmex:
Every sane society uses prepaid metres sir. It is that simple.

nairalanda1:
Well, in 2001-5 we all paid through our noses for GSM services that in many ways were batshit poor, and did not reach everyone. (Why Nigerians have two GSM Lines is not because of show or because we are rich, but because in the early days, one could not call between networks, or call a NITEL Landline ).

The money was used to pay for improvements and to attract more investment. Today, I can call oversease, call any village in nigeria, and use internet in most urban and even many rural areas. That was not possible in 2003.

Here in NIgeria, most of us refuse to pay for power at all, or underpay, due to price controls, and also deliberately. (My disco has a lot of rural areas where people pay N2000 for power, even if they used 20000 worth of power that month). That's why they rip us off via estimated billing....they have to do that or their financial situation would be worse.

Also, on Nigerians paying for wires and transformers. Over 30 years ago, I was attending a primary school where my parents paid fees of N250 per term. The school was over 16 kms from our house...so imagine the fuel costs. There was a government school that was costing fees of N50 or less within a shouting disitance from my house..

Students attending the government school had to buy books, buy desk and buy pencils and pens. We in the private school...got books, pens and pencils and desks. If a book finished, we simply went to the school store and got a new one straight up. Only once did I have to go and buy a new book...because the school stores supplier had been delayed and the stores were empty. Once in my 6 years of attending that school.

So, why won't your power company be making you buy stuff. Most of us are not paying market price for power, so they cannot make the profit to pay for those things.

Life.

missionmex:
Every sane society uses prepaid metres sir. It is that simple.

lexy2014:
how much was GSM services between 2001 and 2005 that you were paying through your nose?

if you are selling coke and the price of a bottle is N500, will you sell N100 to some customers and N1000 to others to make for the shortfall of selling N100 to other customers?

nairalanda1:
They don't bypass them. It's that simple.

missionmex:
When you jail offenders publicly the rest will adjust. It's that simple.

Proudlyngwa:
Prepaid Meter will not solve anything

nairalanda1:
Yes , that's what I advocate

But then again, people cheer for defaulters so...

nairalanda1:
Go home, George.

lexy2014:
If private citizens can pay for fuel to run homes and businesses, why will they not pay for electricity if it's supplied and billed fairly?

nairalanda1:
Yes, Mallory, but the roses would look good next to the crocuses. And don't forget about the lilies and the hibiscus. And do remember to prepare some of your lovely fruit punch.

nairalanda1:
Well, how would the transmission be improved if people ain't paying?

Make them pay, or cut them off. Simple.

lexy2014:
If private citizens can pay for fuel to run homes and businesses, why will they not pay for electricity if it's supplied and billed fairly?

nairalanda1:
Are you in your birthday suit right now?

nairalanda1:
Well, how would the transmission be improved if people ain't paying?

Make them pay, or cut them off. Simple.

dynicks:
Tax/ electricity tariff increase... is that you knocking?...

adenigga:
Source: https://punchng.com/Power-generators-fear-collapse-over-N4.7tn-debt

adenigga:
Source: https://punchng.com/Power-generators-fear-collapse-over-N4.7tn-debt

adenigga:
The fact that Nigeria’s power generation companies are owed ₦4.7 trillion is alarming, yet not surprising. With all that debt hanging over the sector, it’s no wonder we still deal with unstable electricity, poor supply, and rising tariffs.

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Source: https://punchng.com/Power-generators-fear-collapse-over-N4.7tn-debt