₦airaland Forum

I don't understand who owes the debt the government or the public of discos?

DeLaRue:
These huge debts accumulated over the past years.

I don't know why the previous government was not paying down these debts despite printing N20 trillion naira.

The privatisation of the power assets has not delivered any noticeable positive results.

Accumulated since 2015 when apc squandering party came to power.

chukwutee:
That’s why people like you are enemies of Peter obi. And why he will never amount to anything politically because of toxicity you are attracting to him. This topic has nothing to do with him. If someone attack him nowyou will say, he is not the only politician in Nigeria ,why are they attacking him but you non patriotic element keeps bringing him up where he’s not mentioned or related ?? What is wrong with you people?? You see why you people will always beg for freedom in your country??

Thank you very much. Pls tell him the truth. Actually, to them, they're doing Peter Obi a favour by insulting the government on his behalf, and Obi himself has never come out to condemn the insults, meaning he's enjoying it. But unfortunately, they're demarketing him because it merely shows the caliber of followers he has and the category of people he represents.

They need to grow up.

Back to the matter, I'm beginning to see the gencos as saboteurs in this matter. A debt that hasn't been paid in decades is now being revisited by this government with a view to finding a lasting solution to the epileptic power generation and supply and that is when you're now saying you would not agree.

I think the government should give new licenses for power generation and allow fresh investors to go into the business if the existing gencos prefer to be ignored.

Etila:
So dem dey listen to criticism...why wasting such money to offset debt when we can overhaul the entire power sector with such money.

If they explain Nigeria to you and you understand, you should go to church and give thanks giving

Jagaban2012:
And leave the debt of those who came to invest in your power sector... just imagine, you came with your hard-earned money to invest and generate power for the country, and the government refused to pay your service delivery charge for over 7 years. How will you feel... just think before you answer the question...

My friend all of them are not serious. The investors entered into the business of power supply without technical ability and the financial muscle to deliver. All of them are just looking for quick money, they never had the intention of a good service. What have they been looking for over 7 years without payment and they kept quiet

yemre:
Thank you very much. Pls tell him the truth. Actually, to them, they're doing Peter Obi a favour by insulting the government on his behalf, and Obi himself has never come out to condemn the insults, meaning he's enjoying it. But unfortunately, they're demarketing him because it merely shows the caliber of followers he has and the category of people he represents.

They need to grow up.

Back to the matter, I'm beginning to see the gencos as saboteurs in this matter. A debt that hasn't been paid in decades is now being revisited by this government with a view to finding a lasting solution to the epileptic power generation and supply and that is when you're now saying you would not agree.

I think the government should give new licenses for power generation and allow fresh investors to go into the business if the existing gencos prefer to be ignored.

That is the only solution. They are not ready to deliver.

Previous governments of APC abi?

DeLaRue:
These huge debts accumulated over the past years.

I don't know why the previous government was not paying down these debts despite printing N20 trillion naira.

The privatisation of the power assets has not delivered any noticeable positive results.

Afolabimills:
are u having hearing problems or u actually been blinded by ur hatred as usual ur goodluck Jonathan and buhari didn't settle the debt its d same tinubu ur likes insult disrespect on a daily basis that is paying the bad debt try get sense or borrow one

Calm down Afolabi.

I wasn't talking to you so pls don't insult me.


Tinubu is a failure, simple.

adenigga:
Source: https://dailypost.ng/2026/04/05/power-crisis-gencos-kick-as-tinubu-approves-n3-3tn-to-clear-legacy-debt

Ole. Slash debt from 6 trillion to 3.3 trillion. Can you try this with foreign lenders? Baba pay their complete money.

The thing is, that is not the total debt that governments owe discos and gencos...government is basically unilaterally saying that they don't want to pay their obligations because they don't have the money, or the money has been looted.

Subsidy removal would solve this problem. Before you shout corruption, Ivory coast removed subsides on electrricity in 1993, and their president then was corrupt and a tribalist.

DeLaRue:
These huge debts accumulated over the past years.

I don't know why the previous government was not paying down these debts despite printing N20 trillion naira.

The privatisation of the power assets has not delivered any noticeable positive results.

tete7000:
Accumulated since 2015 when apc squandering party came to power.

What both of you are seeing is the results of privatisation that does not work because government is setting prices of power, which in essence renders the power companies impotent.

Government does not set prices of the food you eat, which is why supermarkets are stocked in this country, and markets flourish...because the traders and shopkeeprs have the money to pay suppliers, workers , transport costs, market fees, and have something left over.

Assuming tinubu suddenly announced price controls on the market and shops, there would be food scarcity, because government is going to have difficulty paying subsides. It has nothing to do with government not making money, even if tinubu was not so corrupt as he is, the government would still struggle to pay subsides because production costs don't respect subsides

Buhari was printing money to pay for fuel subsides, which is why there was nothing for electricity subsides. And the money he was printing was not enough to cover payments for the subsides because production costs no dey respect subsides cost.

Same thing with power. A big mistake GEJ Made, which was continued by tinubu and buhari, was to set prices for power. This led to a connundrum whereby where government would budget an amount for subsidy on power, only to have it rendered useless by price increases in gas, or increases in maintenance costs, or salary increases. Add the fact that gas companies set their prices in dollars, and the power companies had to source for dollars on the black market , not at offical rates because low oil prices meant low forex inflows...and you have the resulting debt.

Plus the debt we are talking about is part of the total debt that the power companies have to pay the gas companies.


Now I am sure both of you would insult me here, but the porblem is also exacerbated by most Nigerians not paying the full price for power, or not paying at all. Only a minority pay the full price for power. That is why investors are pulling out or not coming in...that is why no big investor like GE wants to come in, because most nigerians are too poor to pay the type of bill that would generate power supply properly

See the problem

Yes government should do this and that...but assuming government were to do something, it would have to take loans of at least 15-20 trillion naira annually for ten years to fix power, and guess what, we have to PAY THOSE LOANS BACK anyway

That's why I advocate for cost reflective tarrifs.

The privatization of Gencos and Discos is your major problem and not the collapsing national grid managed by your federal government through TCN?

DeLaRue:
These huge debts accumulated over the past years.

I don't know why the previous government was not paying down these debts despite printing N20 trillion naira.

The privatisation of the power assets has not delivered any noticeable positive results.

Proudlyngwa:
It is not sustainable

I hate anything subsidy

but like migrating to countries were government subsidizes?

grandstar:
If the Gencos are truly being underpaid by the government, this is unfair.

They are being forced to carry the weight of electricity subsidies and thr indebttedness of large amount of monies owed by gocernment instittuitions.

It is time the subsidies ends, all government bodies perhaps move to prepaid if it possible. I dont know the global best practixes in that regards.

How does prepaid meter have in common with subsidy removal?

jokaka89:
HHHHMMMM.
THIS IS ONE OF THE REASON WHY I DISLIKE PRIVATIZATION OF GOVERNMENT PROPERTIES FOR PIECE OF BREAD.
IF GENCOS WAS NOT PRIVATIZED, ALL THESE CASHOUT WILL NOT BE CELEBRATED BY THE THIEVES.
YOU PRIVATIZED BUT STILL USING GOVERNMENT MONEY TO SUPPORT THE THIEVES.
[color=#990000][/color]

Ignorance is a bad thing

LZAA:
Normally Govt SHOULD clear it's debt
But you see those useless GENCOS and DISCOS ba?
Even if they clear that debt 10 times over the an.imals will find reasons not to supply power
Very useless organization
Smh
🚶‍♂️🚶‍♂️

As someone has said "Nigerians deserves the bad government they are suffering from". Imagine a citizen supporting the government for owing subsidies of a functioning sector while been blind to a non-functioning, collapsing national grid managed by the government he voted into power.

Federal government

bizzibodi:
I don't understand who owes the debt the government or the public of discos?

Gboss247:
but like migrating to countries were government subsidizes?

And where in your imagination did you cook up that buullsith from

They don't even thank their stars that this government is ready to clear ₦3.3 trillion out of the ₦6 trillion accumulated for ten years which 8 years out of it was for the previous government and moreover that money might have been inflated.

Gboss247:
but like migrating to countries were government subsidizes?

Which many of these countries , their citizens pay hefty taxes for the government to be able to afford subsides.

Yeah, I heard that Iran does subsides...except that they are limited and also, the country is heavily in debt partly due to those subsides.

The reason why we cannot pay subsides in nigeria is because of government incompetence in diversifying our income sources as a nation. We went from being a world leader in many agric and cash crops production in the 1960's to being zero or so forth. And we won't support industrialization and tax revenue is still painfully low.

Result is a broke nation, which has to pay for subsides by either borrowing or by not doing so.

And corruption makes the matter worse...someone steals money and things get even worse.

Gboss247:
As someone has said "Nigerians deserves the bad government they are suffering from". Imagine a citizen supporting the government for owing subsidies of a functioning sector while been blind to a non-functioning, collapsing national grid managed by the government he voted into power.

Support who?
Apcheat ?
You're having a laugh
You see this debt is not the MAIN reason DISCOS and GENCOS are underperforming
It's just a convenient excuse
Like i said even if you clear this debt today never expect steady power supply
Those criminals will still find another excuse
Support Apcheat?
Smh😄
🚶‍♂️

LZAA:
Support who?
Apcheat ?
You're having a laugh
You see this debt is not the MAIN reason DISCOS and GENCOS are underperforming
It's just a convenient excuse
Like i said even if you clear this debt today never expect steady power supply
Those criminals will still find another excuse
Support Apcheat?
Smh😄
🚶‍♂️

The debt is not that main reason?
Why not start a business and let's government and owes you, and see how far you will perform.

nairalanda1:
Which many of these countries , their citizens pay hefty taxes for the government to be able to afford subsides.

Yeah, I heard that Iran does subsides...except that they are limited and also, the country is heavily in debt partly due to those subsides.

The reason why we cannot pay subsides in nigeria is because of government incompetence in diversifying our income sources as a nation. We went from being a world leader in many agric and cash crops production in the 1960's to being zero or so forth. And we won't support industrialization and tax revenue is still painfully low.

Result is a broke nation, which has to pay for subsides by either borrowing or by not doing so.

And corruption makes the matter worse...someone steals money and things get even worse.

A group of oil countries in the Middle East channel there oil profits to a sovereign wealth fund which invest in the most profitable companies within and outside there territories, pays her citizens, subsidized heavily and provide free utilities (housing, electricity, healthcare, education etc) while some oppressors who use debt to subsidize so they can remove it.

Gboss247:
A group of oil countries in the Middle East channel there oil profits to a sovereign wealth fund which invest in the most profitable companies within and outside there territories, pays her citizens, subsidized heavily and provide free utilities (housing, electricity, healthcare, education etc) while some oppressors who use debt to subsidize so they can remove it.

And have you also noted that all those countries 1) have very small populations, 2) produce far more oil than we do which is why they can 3) afford those things?

What Nigeria should be doing is using our available natural resources to make products that we can sell around the world...including to those middle eastern countries which would 1) make us even more richer 2) provide employment for everyone 3) make us a strong nation 4) put us in a position to be able to survive when oil becomes weak and scarce and useless.

See, even if we put our oil money in a soverign wealth fund, it won;t earn enough money for Nigeria. If we put money made by improved productive effort based on proper utilization of resources , we would even earn more and more


That's why I hate APC...because since 2015, they haven't done anything like that. And that's why I am angry with most African leaders, because they haven't used their resources to do the same.

Your tinubu government is failing you because they are not using our natural resources to make exportable product, or even encouraging it. Instead we get things like let's get oil production up to 4 mmillion bpd, as if that would improve anything.

Gboss247:
The debt is not that main reason?
Why not start a business and let's government and owes you, and see how far you will perform.

You keep missing the point
Now let me break it down
DISCOS generate trillions yearly with estimated billings
You and i know estimated billing is illegal and in fact they were sued last year and ordered to pay compensation
They recently signed a deal with GRA exceeding millions to supply power while ignoring the general population
So all these excuse that government debt is slowing them down is a lie from the pit of hell
As we speak NO DISCO has improved it's facilities yet they keep shouting they are owing them
See ehn the private power industries are an absolute disgrace and should keep thanking their stars they are in Nigeria because in any other country jail time and huge fines will follow

LZAA:
You keep missing the point
Now let me break it down
DISCOS generate trillions yearly with estimated billings
You and i know estimated billing is illegal and in fact they were sued last year and ordered to pay compensation
They recently signed a deal with GRA exceeding millions to supply power while ignoring the general population
So all these excuse that government debt is slowing them down is a lie from the pit of hell
As we speak NO DISCO has improved it's facilities yet they keep shouting they are owing them
See ehn the private power industries are an absolute disgrace and should keep thanking their stars they are in Nigeria because in any other country jail time and huge fines will follow

Dicos estimated billings are illegal according to you, but bypassing electricity, using more electricity while paying less on the same estimated billing, supporting government owing subsidizes are legal?

nairalanda1:
And have you also noted that all those countries 1) have very small populations, 2) produce far more oil than we do which is why they can 3) afford those things?

What Nigeria should be doing is using our available natural resources to make products that we can sell around the world...including to those middle eastern countries which would 1) make us even more richer 2) provide employment for everyone 3) make us a strong nation 4) put us in a position to be able to survive when oil becomes weak and scarce and useless.

See, even if we put our oil money in a soverign wealth fund, it won;t earn enough money for Nigeria. If we put money made by improved productive effort based on proper utilization of resources , we would even earn more and more


That's why I hate APC...because since 2015, they haven't done anything like that. And that's why I am angry with most African leaders, because they haven't used their resources to do the same.

Your tinubu government is failing you because they are not using our natural resources to make exportable product, or even encouraging it. Instead we get things like let's get oil production up to 4 mmillion bpd, as if that would improve anything.

Have you also notice that poverty is the fuel for large population growth like Nigeria?
Do anybody tied down Nigeria to oil dependency?
We don't have enough to invest in a sovereign wealth fund but borrow enough money to look for foreign investors, borrow more to fulfil there obligations, borrow again for importation but can't borrow to invest?

Gboss247:
Dicos estimated billings are illegal according to you, but bypassing electricity, using more electricity while paying less on the same estimated billing, supporting government owing subsidizes are legal?

Mate at this point you are either a Disco staff or Apcheat supporter
Either way ✌️ out

Gboss247:
Have you also notice that poverty is the fuel for large population growth like Nigeria?

Well, I used to think like that, but then see the Chinese...they had large population and large poverty for centuries until someone figured out that running a modern industrial economy based on innovation and science that exported finished products was the answer.

Do anybody tied down Nigeria to oil dependency?

You now know why I don't like any of our leaders and politicans and am cynical about all of them. THAT IS THE MAIN REASON.

And that's why I don't vote for any major party.

We don't have enough to invest in a sovereign wealth fund but borrow enough money to look for foreign investors, borrow more to fulfil there obligations, borrow again for importation but can't borrow to invest?

Yes, because that's the end result of living in a oil dependent economy. Unless your populaiton is very low, and you are producing more oil than you ever need...you ain't going to have enough money for anything.

That is why I said ...Nigeria needs to use its natural resources to produce manufactured goods and services.

Problem with relying on oil, most of the time, oil prices no dey favor us.(Corruption also makes it worse).

We have known this for decades...I remember hearing about experts saying we need to diversify our economy during the army rule days...and they weren't government talking heads...but we no hear.

Again, better we invest in using our resoruces to make manufactured goods and services. Our aim should be to be like China, japan, germany and the USA...not like Saudi who if the oil runs dry tomorrow would be helpless

nairalanda1:
What both of you are seeing is the results of privatisation that does not work because government is setting prices of power, which in essence renders the power companies impotent.

Government does not set prices of the food you eat, which is why supermarkets are stocked in this country, and markets flourish...because the traders and shopkeeprs have the money to pay suppliers, workers , transport costs, market fees, and have something left over.

Assuming tinubu suddenly announced price controls on the market and shops, there would be food scarcity, because government is going to have difficulty paying subsides. It has nothing to do with government not making money, even if tinubu was not so corrupt as he is, the government would still struggle to pay subsides because production costs don't respect subsides

Buhari was printing money to pay for fuel subsides, which is why there was nothing for electricity subsides. And the money he was printing was not enough to cover payments for the subsides because production costs no dey respect subsides cost.

Same thing with power. A big mistake GEJ Made, which was continued by tinubu and buhari, was to set prices for power. This led to a connundrum whereby where government would budget an amount for subsidy on power, only to have it rendered useless by price increases in gas, or increases in maintenance costs, or salary increases. Add the fact that gas companies set their prices in dollars, and the power companies had to source for dollars on the black market , not at offical rates because low oil prices meant low forex inflows...and you have the resulting debt.

Plus the debt we are talking about is part of the total debt that the power companies have to pay the gas companies.


Now I am sure both of you would insult me here, but the porblem is also exacerbated by most Nigerians not paying the full price for power, or not paying at all. Only a minority pay the full price for power. That is why investors are pulling out or not coming in...that is why no big investor like GE wants to come in, because most nigerians are too poor to pay the type of bill that would generate power supply properly

See the problem

Yes government should do this and that...but assuming government were to do something, it would have to take loans of at least 15-20 trillion naira annually for ten years to fix power, and guess what, we have to PAY THOSE LOANS BACK anyway

That's why I advocate for cost reflective tarrifs.

And all these problems started in 2015?

Gboss247:
How does prepaid meter have in common with subsidy removal?

They are totally different things.

The job of a meter is to calculate the duration of power and charge you for it based on the cost per unit tailored to you, whether its subsidized or not.

On the other hand, subsidized power means you are sold power below the cost price of generating the power and distributing it.

So, i will combine both answers together for an example.

For instance, lets say it cost N45 per unit to generate and distribute power and you are paying N25 per unit, that means it is subsidized by N20 per unit. Lets assume you are Band E

Lets say use 20 units a month, that means you will pay N25 x 20 units which is N500. The meter will charge you N500.

Lets say on the other hand you are a Band A customer and you pay N50 per unit while the cost of generating and distribution is still N45, that means there is even a N5 profit. Lets assume you use 20 units, the meter will charge you N50 x 20 units which is N1,000.

The meter charges you for the power you use, whether it is subsidized or not.