₦airaland Forum

sulaak:
There is nothing wrong with selecting a lawyer or a finance specialist as the minister of power. You need people with skills in legal regulation and finance to shape the development of electricity across the country.

Adelabu is just incompetent; if he were an engineer, he would still be useless. He failed to set a vision for developing the solar and battery industry in Nigeria to focus the country on renewable energy.

I will also blame the Wale Edun, as the coordinating Economic minister, for not coordinating the gas and mining industries with electricity. Tinubu has been a very poor president, but where are the alternatives?

A lot is wrong bro.
It is just like appointing a lawyer to regulate Accounting bodies or asking an accountant to carrying out operations on a patient.
Most politicians are useless people

They just brought ine agbero to the whole power ministry all because of tribe

Noblex2011:
A lot is wrong bro.
It is just like appointing a lawyer to regulate Accounting bodies or asking an accountant to carrying out operations on a patient.
Most politicians are useless people

From 2001-08, our GSM grew under the following ministers...a public administrator, who was replaced by a veternarian, who was replaced by an English lecturer turned professor, who was replaced by a mechanical engineer (not an electronics engineer, mind).

The difference is our GSM sector was allowed to set prices, our power sector hasn't.

SmartPolician:
Oga, stop quoting me and spilling trash. I am on Band A that gives me 44 units for 10k and I am not dead yet. Everything na people's fault to you!

PS: I won't reply you again!

😆 🤣 😂. Don't mind him.
He keeps on repeating the same thing almost everyday.
People are paying for electricity in this country

helinues:
The people that have been showing interest in Guber election in South West for the 2027 are just people with questionable characters

Imagine minister of darkness aspiring to be a governor.. Someone that couldn't handle only one sector

The problems of the power sector are beyond the minister of power.

sulaak:
There is nothing wrong with selecting a lawyer or a finance specialist as the minister of power. You need people with skills in legal regulation and finance to shape the development of electricity across the country.

Adelabu is just incompetent; if he were an engineer, he would still be useless. He failed to set a vision for developing the solar and battery industry in Nigeria to focus the country on renewable energy.

I will also blame the Wale Edun, as the coordinating Economic minister, for not coordinating the gas and mining industries with electricity. Tinubu has been a very poor president, but where are the alternatives?

The problem with our power industry is the lack of a cost reflective tarrif.

Obasanjo, when he was president, introduced GSM..and the ministers in charge were a public administrator(and civil servant who had never been anywhere near telecoms), who was replaced by a vetenarian and vet lecturer, who was replaced by an English teacher turned career politican who was replaced by a mechanical engineer.

(Keep in mind that one of the ministers resigned over corruption allegations).

GSM companies were allowed to set prices,power companies haven't been allowed to, either as a government entity and as a private concern. Even under the band system, only band A, who are one out of five customers, pay cost reflective tarrifs.

Result...mess.

SeizeTheMemes:
You don't know but you somehow think in a country where that nonsense is possible that the extra tariffs you want will actually be used for development? The problem has never been tariffs it's the incompetence of the government and the electricity companies.

DISCOs reject load from GENCOs and only pick up power transmitted to areas where they could sell to make more money and yet you think the problem is they don't have money. Ok.

https://punchng.com/blackouts-gencos-discos-clash-over-rejected-power/

You have time.
It will be the same result just like the case of subsidy removal.
Tinubu removed subsidy to buy politicians and people 😆

Noblex2011:
You have time.
It will be the same result just like the case of subsidy removal.
Tinubu removed subsidy to buy politicians and people 😆

Have you had scarcity since then?

Haven't refineries been developing since then?

Tinubu Na bad leader, but subsidy removal is not one of his bad decisions

plus , if you support subsidies you are supporting the government in setting your prices as a businessman.

bentenny:
The fact that apc is even willing to present a failure as one of their candidates in the Guber election is proof that apc doesn't rate nigerians at Ibadan!

I just hope the citizens there will be sane and educated politically to not vote him in as Oyo state governor!

Check how many times the guy don contested in Oyo but failed.

nairalanda1:
So people making bread should starve because you want cheap bread?
So people making bread should be unable to afford to maintain their machineries?
SO people supplying the wheat should do it for free?
So people who transport the bread should do it for free?
You see the problem?

Guy, I am defending the right of the small businessholder to set his or her price.

nairalanda1:
Then what about if no one starves? Price caps prevent exploitation and don't even stop profit.

Plus since government removed price controls on bread in 1985, millions haven't starved, and the bread industry has grown in leaps and bounds.

Free market works, because people want to make money.

For the very poor, there are charitable organisations. You can set up one.

This is the terminal logic of your position. Let the market extract, and let charity sweep up the bodies. The people should hope that a philanthropist like bill gates or mr beast notices them in the dark. They should hope for a "destiny helper". This is a confession. It concedes that the market, left to itself, will not serve the poor. We should want to change the structure so charity isn't the only lifeline. You want to keep the structure and outsource the casualties. That's the difference between us.

nairalanda1:
Price controls on a sector...check
Subsides that don't cover the losses...check

As seen in many socialist countries....which was why their economies collapsed

China adopted capitalism in the eightes...that's why they are still there.

PLus is our phone and bread, and other sectors runas monopolies. Even cement, it isn';t a monopoly

You want free stuff. Admit it, comrade.

That's not what socialism is!!! . Socialism is simply the public ownership of the means of production. price controls and subsides are not socialism. China's system is called "Socialism with Chinese characteristics". They use market forces to build production but ultimately the state plans everything. The state is a public entity so that is public ownership.

Monopolies leave us vulnerable to random price increases for no apparent reason. It's stops capitalism from being productive and makes it extractive. That's why anti monopoly laws exist worldwide. dangote has multiple monopolies in this country just by his lonesome. It's not about "free stuff." It's about who the system is for

nairalanda1:
It increased because the money making ability of the farmer was not impeded by price controls

Again, people want to make money. Impede their ability to do so...you get bad service, and scarcity

When poland was a communist and socialist country, prices of foodstuff were controlled to 'keep people from starving'. The result was massive scarcity of food, loss of variety of food, and so forth. In 1989, the government that took over from the communists removed price controls....today nothing like scarcity.

Same thing in Russia...below IN PIC 1 bare shelves under socialism in 1990 , and full shelves under capitalism afew years ago. All because people were allowed to set their prices and MAKE SOME MONEY!

Simple and short.

For Russia, that crisis happened because of Gorbachev's market policies (glasnost and Perestroika) so you proving my point here.

But regardless, I didn't ask about Poland. I didn't ask about Russia in 1990. I asked about Nigeria's power sector in 2026. I asked: In a country where DisCos are regional monopolies, where the regulator is captured (Adelabu's deadline-flexibility proves it), where 77% of available power is already rejected, what is the incentive for those same DisCos to use higher tariffs to build infrastructure rather than pocket the difference?

Market forces isn't some magical entity that transcends physics. You want food? Build farms. You want Houses? Develop industry so you can build them. It's that simple comrade.

treesun:
https://punchng.com/breaking-adelabu-resigns-as-power-minister-eyes-oyo-gov-race/

Oyo people, if una like make una dey there make them carry this man give una as Governor. E concern una. I still wonder how a man who could not handle a ministry wants to govern a state. nothing person no go see for this country.

SeizeTheMemes:
This is the terminal logic of your position. Let the market extract, and let charity sweep up the bodies. The people should hope that a philanthropist like bill gates or mr beast notices them in the dark. They should hope for a "destiny helper". This is a confession. It concedes that the market, left to itself, will not serve the poor. We should want to change the structure so charity isn't the only lifeline. You want to keep the structure and outsource the casualties. That's the difference between us.

Price controls do not work.

That's not what socialism is!!! . Socialism is simply the public ownership of the means of production. price controls and subsides are not socialism. China's system is called "Socialism with Chinese characteristics". They use market force to build production but ultimately the state plans everything. The state is public so that is public ownership.

And the chinese also allow capitalism. Nothing like widespread price controls.

Monopolies leave use vulnerable to random price increases for no apparent reason. It's stops capitalism from being productive and makes it extractive. That's why anti monopoly laws exist worldwide. dangote has multiple monopolies in this country just by his lonesome. It's not about "free stuff." It's about who the system is for

Oga, the law has been passed to get rid of those monopolies. All that is left is the removal of price controls.

For Russia, that crisis happened because of Gorbachev's market policies (glasnost and Perestroika) so you proving my point here.

Hahaha, no.

The problem predates perestoika. It was already happening in communist countries for a long time

But regardless, I didn't ask about Poland. I didn't ask about Russia in 1990. I asked about Nigeria's power sector in 2026. I asked: In a country where DisCos are regional monopolies, where the regulator is captured (Adelabu's deadline-flexibility proves it), where 77% of available power is already rejected, what is the incentive for those same DisCos to use higher tariffs to build infrastructure rather than pocket the difference?

Deflecting the point there, and running away from the issue.

We have tried price controls for decades, and it is not working. Stop hiding your head in the sand, son.

GOvernment was controlling prices of phone service in the good old days, and phones were not for the poor. Government stopped setting prices for phones, and now even poor people gat phones.

So, why don't you want the same for the power sector?

You want free stuff.

Market forces isn't some magical entity that transcends physics. You want food? build farms. You want Houses? develop industry so you can build them. It's that simple comrade.

Well, market forces are why you have food in the markets and why you don't have to queue for bread, milk and sugar.

Below

Poland under communism, which you like,1980's.

Poland today, 2020's.

But why the unnecessary hate towards this man... He was minister.. Una dey call him out... Now he Don resign... Another wahala...
Even when we all know the problem in that electricity sector.... Those before him, where they able to solve the electricity problem? As smart as fasola was, he couldn't.....
It was easy for Mr president to replace finance minister.. But am too sure it wouldn't be that easy to replace power minister... Cos everybody go dey avoid the wahala...

After failing woefully as Minister of 'Power', dude is asking for commendation as State Governor, and he might just get it in this flawed system!

SeizeTheMemes:
You want food? Build farms. You want Houses? Develop industry so you can build them. It's that simple comrade.

With money that comes by magic, in your mind.

I'll leave you with this article from 2019, my time's up here

In Nigeria only 59% of people have access to electricity, that is only about 110 million Nigerians have wires that connect them to the national electric grid. And those people only have electricity for about 35.8 hours of electricity every week and experience on average 32.8 outages a month, according to the World Bank.

There are also over 90 million without access to electricity. So why we all not have reliable access to electricity services? The very simple answer: price controls.

Currently the electric DISCOs in Nigeria can only charge their customers what the government agency — NERC — approves. Hence, their prices are controlled. Recently a change was made to the tariffs they can charge. For Ikeja Electric and Eko Electricity Distribution Company the energy charge is N22.96 per kWh and N28.75 per kWh.

This may seem like a high price to a consumer, but it is way below what the market price should be when looking at the supply and demand of electricity, the costs and all risks associated with providing that electricity. To avoid getting bogged down on power sector minutiae, I would keep this analysis high level.

Nigeria has an installed capacity of about 14,000MW and a population of 200 million. The Midcontinent Independent System Operator (MISO), an organized electricity market that ensures the reliable supply of electricity to a population of 42 million people in 15 states of the United States, and one province in Canada, has an installed capacity of about 155,000MW.

Looking at this should ring economic bells in our heads. If the demand of electricity in Nigeria is higher (200 million people) than the amount of electricity supplied, shouldn’t that mean that the prices of electricity should go up?

Some estimates show that, based on current conditions in the industry, electricity would cost between N120 and N300 per kWh if prices are not controlled and the DISCOs are allowed to charge cost reflective tariffs that would ensure a return on investment.

What? If power is that amount, how would anyone, especially the poor, ever be able to afford it? The truth is many people, even the poor, already pay this amount when they utilize petrol and diesel generators.

Nigerian renewable energy business executive Chinedu Igbokwe, calculated the Levelized Cost of Energy (LCOE) for a small Nigerian bank branch that uses 100kVA diesel generator to provide for its electricity needs. The LCOE is a way by which electric companies can calculate how much it would cost them to provide a kilowatt-hour (kWh) of electricity to a consumer. They then use it to determine electricity prices. Igbokwe calculated that the LCOE of the small bank branch office with a 100kVA diesel generator is N113.36kWh. This is 5 times more than the price that Ikeja Electric is allowed to charge. And the N113.36 per kWh is just at cost for a small bank branch office. As you can see Nigerians are already paying these high electricity prices through their generators.


One industry that benefited from free prices and today Nigerians are reaping the rewards of the telecommunication industry.

When the first mobile phones were sold in Nigeria in 2001, a sim card cost about N50,000. Just the sim cards, not the phones. Today mobile operators sell sim cards for N50, some give them out for free. In 18 years, the price of a sim card reduced by 100000%. This is a very important feat. Because only when prices are free and not controlled can something like this happen.

[b]Mobile phone operators and developers in 2001 had to secure billions of dollars, mostly through debt, to build the telecommunication infrastructure — the masts and base stations — that make phone calls and texting possible. And to secure these debt facilities (loans) they had to ensure that cost reflective tariffs are charged to the customers. Hence, they take the costs of the telecommunication equipment and spread it across the number of people they believed would purchase the sim cards needed for communications. This meant that those who purchased it first would have to pay a lot of money, and as more people begun using their systems the prices of sim cards continued to reduce. This is an efficient allocation of scarce resources in the economy. Because it is allocating, scare communication services, to those places in the economy were they would be of most value. Imagine if the government passed price controls on sim-cards when they were very expensive, our telecommunication industry would have still been “NITEL-ish[/b].”

Now why is this relevant to electricity? To build the electric infrastructure that would provide Nigerians electricity in the quantity and quality demanded, some estimates show that an investment of $120 billion must be made. Make no mistake this money cannot, should not and must not come from the government. It would bankrupt the entire country. But let’s say there are many investors and financiers willing to provide this money (which in many cases there usually are); they must be assured that the prices charged will be cost reflective. The prices would be higher at first but electricity would only be used in those places that it is valued the most. For example, those industries, shopping malls and hospitals that spend millions of naira on diesel generators would be the first to pay for electricity at those high prices. Because they consume so much electricity these industries, commercial centers and hospitals get to spend less on their electricity bill than they did before when they used diesel. They can then sell their goods and services at lower prices. Since power from the grid is less expensive than power from a single diesel generator the simple economic principle of when prices are low people demand more kicks in. They begin to use more electricity, further bringing down the prices of electricity.

Since others in the economy, like you and I now have more money to use, since the prices of many goods and services have been reduced and electricity prices in general (as a result of increased industrial, commercial and medical usage) have also been reduced, we are now able to afford electricity at those lower prices.

But even before you and I get to this point, we would always have electricity to use. Why? Our houses have been connected to the grid. We would just consumed less because the prices were high at that time. This would be no worse than when we used our generators when we needed it. In fact, it would be better. In this case, we would manage our electricity well, not leave our light bulbs on throughout the day, and we don’t have to go to the petrol station to buy diesel and petrol.

[b]Also, the statement that “if electricity prices are high, the poor would not be able to afford,” is a myth. Some of the poorest Nigerians today are the ones that live in rural communities that have no connection to the grid, but still use small petrol generators for their needs (“tiger — I better pass my neighbor”). Some of them have to travel 4 to 10 kilometers to find the nearest petrol station to buy petrol to power their generators. This has given rise to an Off-Grid Mini Grid industry. “Micro-utilities” are invited into these communities, by the communities, to deploy small electric power systems that would serve them. These people are willing to pay between 120 to 180 naira per kWh for 24/7 electricity, because the alternative is trekking or taking unreliable public transportation for 2 to 10km to buy petrol — which is more expensive. For the micro-utilities to secure the loans to deploy and operate these systems they must base their financial models on cost reflective tariffs, if not banks or investors would not give them the money[/b].

Only you knows the value of a commodity to you, hence only you should decide what price you are willing to pay or are willing to sell, not some government agency, somewhere in Abuja, far removed from your reality,

SOURCE

nairalanda1:
With money that comes by magic, in your mind.

I'll leave you with this article from 2019, my time's up here




SOURCE

This article is a lot to process and I'm not going to give a rebuttal to it because i don't have the time and it would be quite long but notice how this whole article still doesn't answer my question on incentives. What is the incentive to develop?

You treat market forces like some inherent force of the universe that price controls are stifling. This not economics anymore, this is belief. Almost religious i would say. What country developed industry or became world powers because of free price controls or Neo-liberalism? name just one I'll wait.

What removing price controls does and what Neo-liberalism does it that is makes it easier for the rich to get profits by taxing people while not doing jackshit. It has failed as an economic system and ideology because it never delivered on it's promises ever. Even western countries have subsidies. The citizens don't bear everything. Doing what you want would give use complete anarchy. It' would be a complete dystopia never before seen. It would be far worse that the mess we have now because basically the same but taken to an extreme.

With that I'm signing out. I'm a bit tired. It's was a nice debate tho your conclusion is wrong and will implode on it's self if implemented. The people can only deal with such conditions for so long until they burn it all down.

Oyo the next state of darkness

SeizeTheMemes:
I am aware but this blatant disregard for rules should not be normalised. If we want our country to be better we must hold ourselves and our leaders to a better standard than this.

Saying that just how things are is admitting defeat. It's like saying we can never get even basic accountability. I don't believe that and neither should you.

You're absolutely and wholeheartedly right, but as it stands now there's nothing anyone can do about it, absolutely nothing. No way there could be any atom of change regarding all of these. Sometimes the thing dey amaze me, I dey think am well well.

DeltaBachelor:
Okay. Wish him the best in his political career

As a Minister of Power, he was a failure. Why wishing him best for him to fail again?

Oyo indigenes make wuna reject darkness o

Noblex2011:
A lot is wrong bro.
It is just like appointing a lawyer to regulate Accounting bodies or asking an accountant to carrying out operations on a patient.
Most politicians are useless people

Politicians are smart people; that's why they set policies for you and me. The problem is that Nigerians have failed to hold their politician to account.

Power minister that has lunged Naija into a dark nation wants to further deepen his skill in Oyobto make them the dark capital of the nation. I pity Nigeria

Why not immediately?
What exactly is he waiting for
Smh🚶‍♂️🚶‍♂️

A national failure wants to contest for Oyo State governor. What has he done or achieved for Nigerians as a Power Minister that makes him think he's qualified to be a governor? People get mind sha.....

treesun:
https://punchng.com/breaking-adelabu-resigns-as-power-minister-eyes-oyo-gov-race/

Minster of darkness is coming to Oyo people, e don bi for una for dat state

this man no perform at all.

SmartPolician:
Stop making excuses for that man. What was he thinking when he made a finance czar the minister of power?

^^^


He's no czar.

Not of finance. Not of power. Not even of musical equipment (be it 'Nigeria used' or China made.)

He is a thoroughly inept government official who had no business occupying high office. He wasted the time of millions of Nigerians, no thanks to BAT.

AWONEYAN:
The man knows that, he was to be sacked like Wale Edun. He just wanted to get a soft landing and called it resignation.

His record as minister for darkness has destroyed his reputation, no body will give him Oyo state gubernatorial ticket

The same people who gave Monday okpebholo governor will give adelabu too

Fujiyama:
^^^


He's no czar.

Not of finance. Not of power. Not even of musical equipment (be it 'Nigeria used' or China made.)

He is a thoroughly inept government official who had no business occupying high office. He wasted the time of millions of Nigerians, no thanks to BAT.

Finish that Agbado serf

Tinubu and his gang of thieves.

He has vied for the governorship position twice before and lost honourably! We don’t know him and if there’s a third term, Seyi lekan si!

Thank God he has officially resigned, minister of darkness. Allow Nigerians to experience new changes.