₦airaland Forum

nairalanda1:
At the end of the day, not paying a cost reflective tarrif is where we are where we are. You don't have to like it , but it is what it is.

We paid cost reflective tarrifs for gsm companies, and people complained all day long. At the end it attracted enough investment to make it possible that even the poor could make telephone calls. Something not possible 40 years ago

Mocking me doesn't change the facts.

The days of paying for darkness are over. Smell the coffee, bro.
Pack up the useless discos already, as we are all soon going to leave that dakudaji grid. Even your president don go solar, so what the heck!
These lots serve no one but themselves.

frugal:
Imagine having a significantly higher purchasing power and still paying nearly half of what Nigerian band A are paying. It’s crazy! What’s crazier is the so called band a suffers power cuts daily.

Yes, because the idea behind the bands was flawed.

The idea was that band A would earn enough profit to pay for the other bands. IT DID NOT WORK.

India has been trying the same thing for over 20 years. Companies, and industries and richer people would pay market price and profit would be used to help subsidise the rural and urban poor. IT HAS NOT WORKED THERE TOO. India has power cuts, and has had for decades (infact the firsttime i heard of an inverter was when I saw a CNN report on power cuts in India in 2003.) India too also wants everyone to pay cost reflective tarrifs five years from now.

Loll renewed hope is coming. Wait when he wins second term those who voted for him will understand the repercussions. By then it will be too late to change anything

Rayjay45:
The days of paying for darkness are over. Smell the coffee, bro.
Pack up the useless discos already!
They serve no one but themselves.

Yes, we shoud, but it still won't change or remove the need for cost reflective tarrifs.

You won;t do your job very well if your employer paid you half your salary to save costs. That's what we have been doing to the power sector. And that's why it isn't working.

When will they scrap rwligious subsidies?
Isnt Nigeria an idiotic nation as it stands?

do4luv14:
Your narrative is not complete yet,

What about those that pays for power they do not Consume

As am typing this, my battery is red and had been for some days now yetvi paid #20,000 for 2months light I did not see, do you know how many percent of that is

Ya think you can get 24 hours a day power for Nigeria on just 5000 mw? We need 32000 mw to get 24 hours power.

And since most of you do not pay for the power you consume at the market price (not you mind), it affects those who do pay for power at market price (like you).

Actions have consequences.

Has there ever been anything like power subsidy before? We spend nothing less than 150k monthly, that's on the average and under caution not to use heavy electronic, yet 150k is hardly enough for a month, they claim it's because we are on band A. So, they want to increase the cost again? Lol

Minimum wage in Nigeria is 77k, now tell me if these people really have any human feelings left in them. Crazy people, smh.

nairalanda1:
He is, but taking politics aside, the problem is, investors are staying away from power supply in nigeria because of lack of a cost reflective tarrif

If you had 20 billion dollars and someone told you to invest it in a nigerian power sector where 20% of consumers do not pay for the power they use, 20% pay for the power they consume at the market price, and the rest underpay in the name of being on band B-E ......or you invest it in a new GSM company where everyone pays for phone service at market price, and no one underpays...which one would you invest in?

MAKE we vote out tinubu, but let's also face some facts here.

And what is 'Investor' going to do.
Gasoline subsidies were removed to encourage 'investor'. This is three years. Where are the 'investor'. The one that managed to start has pushed for ever higher prices of his products.

So please fly this.kite somewhere else.
That economic theory saying higher prices equating to affordability or better services WILL NOT HAPPEN. It simply does not work in an economy of weak institutional governance.

Banks declare trillions in revenue, billions in profit, data that do not correlate with the economy or the people it serves. Then you begin to ask yourself what these so called investments are all about.

I always supported the floating of the Naira but you see fuel subsidy removal, I never did. Why? Because we have the funds, we are extremely rich.

The subsidy was removed anyway and the government continues to remove other subsidies, that’s fine. My problem is that the government has not once contemplated cutting the cost of governance and the amount of our funds they spend on flexing themselves, yet you find people supporting these decisions.

Anyways, I am well to do and these policies don’t particularly affect me. If they affect you and you think it makes sense to keep supporting them, that’s okay too.

Rebuke:
Has there ever been anything like power subsidy before? We spend nothing less than 150k monthly, that's on the average and under caution not to use heavy electronic, yet 150k is hardly enough for a month, they claim it's because we are on band A. So, they want to increase the cost again? Lol

Minimum wage in Nigeria is 77k, now tell me if these people really have any human feelings left in them. Crazy people, smh.

Well, there is a power subsidy. And it is what is driving away a lot of investment in the sector. Add the fact that the subsidy is not paid regularly (government owes a lot money on the subsidy alone, and is struggling to pay it)..no light.

A lot of Nigerians brought up minimum wage and poverty when GSM companies were charging very high prices for sim cards alone. But as we can see, the GSM companies made huge profits, which they used to provide the supproting infrastructure to make phones available for all.

Electricity is not cheap. Pretending it was cheap for decades is why we do not have light, and why our productivity is bad, which is a part of why minimum wage is low.

Right way to go....because government is issuing bond to pay legacy debt between up to 2024. Fresh subsidies are not being repaid leading to accumulation.

sweetkev:
There is no country in the world that doesn’t put subsidies on one particular item or the other but Nigeria is a different case with our abundant resources. So there is nothing the poor can benefit from being a Nigerian. All our resources are for the politicians and the elites only ??

UK and USA don't pay subsidy on electricity. Besides their is subsidized education in Nigeria.

Reference:
And what is 'Investor' going to do.
Gasoline subsidies were removed to encourage 'investor'. This is three years. Where are the 'investor'. The one that managed to start has pushed for ever higher prices of his products.

At least two of them are about to start refinery projects, plus BUA is doing his own refinery project.

Also, it takes years to build refineries. It doesn't take two months, y know.

So please fly this.kite somewhere else.

Okay, get your senator to pass the laws that guarantee subsidy and when it comes back, support APC to keep on taking more and more loans, and praise tinubu.

That economic theory saying higher prices equating to affordability or better services WILL NOT HAPPEN. It simply does not work in an economy of weak institutional governance.

It worked for the GSM secotr, and it workd for the power sector in the Ivory coast and ghana

And here is another truth, no one owes you cheap prices. Businesses set prices at the level that would enable them to run well. Expecting cheap prices for fuel in a country that does not even have the ability to make a refinery from scratch here, is wishful thinking.

Seriously, stop campaigning for your side, and yes, tinubu has to go, and face real economics. Presidents come and go, but the price of commodities has to be set at the market and not by the government.

Banks declare trillions in revenue, billions in profit, data that do not correlate with the economy or the people it serves. Then you begin to ask yourself what these so called investments are all about.

Ha, so you want to set up a Marxist lenninist state then? Okay.

nairalanda1:
MAKE we vote out tinubu, but let's also face some facts here.

Vote out Tinubu

And vote in who?

nairalanda1:
What Band A is paying. Bands B-E Pay way below that, and government is supposed to pay them a subsidy which is too too low to meet needs, even if it was paid regulary.

it's good the Government wants to stop subsidizing Electricity.

But don't make it seem as if the DISCOS are not making a lot of money

The DISCOS are making a lot of money with little investment to show for it

jmoore:
Every customer should be on prepaid meter.

Estimated billing is a scam.

ask these clowns how many times power subsidy has been scrapped right from the last administration then you'll know that we're in deep shieet as far as power is concerned

Jokes on you. Even band A is subsidised. Wait the real bill is coming.

nairalanda1:
What Band A is paying. Bands B-E Pay way below that, and government is supposed to pay them a subsidy which is too too low to meet needs, even if it was paid regulary.

nairalanda1:
Electricity Bills Set to Rise as FG Confirms Plan to Scrap Power Subsidy Across Nigeria




Legit.ng: https://www.legit.ng/business-economy/energy/1720965-electricity-bills-set-rise-fg-confirms-plan-scrap-power-subsidies-nigeria/

So the increment they did before is for what ?

Parachoko:
it's good the Government wants to stop subsidizing Electricity.

But don't make it seem as if the DISCOS are not making a lot of money

The DISCOS are making a lot of money with little investment to show for it

DISCOS aren't making enough money.

(All I am saying is truth, so calm down)

For example, discos made 206 billion naira in april this year. Sounds like a lot , don't it?

Except that out of that, 195 billion naira is supposed to go to pay for the gas bills of the gencos alone. Leaving little for everything else.

Discos cannot pay that, and they also have running costs to the tune of billions of naira.

Also in one month, discos recieve about N300 billuion worth of electricty from the gencos. If they paid that in full they would be left with a debt of N94 billion naira owed tog encos, and they still haven't paid their running costs.

They are not making it. Infact several discos have been taken over by the banks, because profitablity is a problem

Let's not tell ourselves tales.

Nigerians will always survive, no matter the economic hardship
God bless our leaders, rulers and politicians

The fuel they removed subsidy from, what's the effect on Nigerians? Nothing to show forth but anguish. A government of fraudsters by fraudsters for fraudsters

nairalanda1:
DISCOS aren't making enough money.

(All I am saying is truth, so calm down)

For example, discos made 206 billion naira in april this year. Sounds like a lot , don't it?

Except that out of that, 195 billion naira is supposed to go to pay for the gas bills of the gencos alone. Leaving little for everything else.

Discos cannot pay that, and they also have running costs to the tune of billions of naira.

Also in one month, discos recieve about N300 billuion worth of electricty from the gencos. If they paid that in full they would be left with a debt of N94 billion naira owed tog encos, and they still haven't paid their running costs.

They are not making it. Infact several discos have been taken over by the banks, because profitablity is a problem

Let's not tell ourselves tales.

So what is the cost reflective, subsidy free tarriff in the energy sector.
If you or the government or the service providers themselves know they should say.
Because in reality I haven't found anyone who can say.

A while ago they said Band A was zero subsidy, today we are hearing it is not. This is despite the claim s of government to have stabilized the exchange rate over two of the three plus years in office

So at worst Band A remains at the same rate, perhaps a little hike due to inflation. Can you vouch for this.

Before you answer, remember that since the tariff splitting, month by month consumers on other bands have been railroaded into Band A despite same quality of service.

Oracleee:
The fuel they removed subsidy from, what's the effect on Nigerians? Nothing to show forth but anguish. A government of fraudsters by fraudsters for fraudsters

Just poor regulatory governance everywhere you look.

I dare say increase the tariff five, ten, twenty fold. You will see no change whatsoever between your reality and the claims they make.

They will always come up with a reason down the line as to why what they increased it to was not enough. And they are subsidizing you.

Reference:
So what is the cost reflective, subsidy free tarriff in the energy sector.
If you or the government or the service providers themselves know they should say.
Because in reality I haven't found anyone who can say.

A while ago they said Band A was zero subsidy, today we are hearing it is not. This is despite the claim s of government to have stabilized the exchange rate over two of the three plus years in office

So at worst Band A remains at the same rate, perhaps a little hike due to inflation. Can you vouch for this.

Before you answer, remember that since the tariff splitting, month by month consumers on other bands have been railroaded into Band A despite same quality of service.

Oga, please accept the truth. Stop arguing for the sake of argument.

If a disco is earning 206 billion naira and is getting 300 billion naira in power supply from the gencos, and gas costs are eating up over 90% of the bill, how dey go survive.


You can abuse me and call me insensitive, but either we pay cost reflective tarrifs for electricity or we forget it.

Again, stop arguing . You are whipping an unalive horse here man. No matter how hard you whip it, it ain't comming back.

Better go and get your solar panels and generators, we cant be paying billions to power service providers who provide absolutely no service to customers! Yes I said that.

You buy your own cables, poles your community taxes you for transformers when these get bad the repairs are on you the theving DISCOs just come and collect your money while providing nothing as a serivce.

This is the only business model in Nigeria where customers are charged and made to pay for nothing!!

NERC is a big let down, the power sector is a scam, the operators enjoy government subsidies, tarriffs are revised every 6 months, the extorionary tendcy of the power sector is the reason why the country's industrialization is stunted for decades, only businesses that enjoy governmnt patronage and immunity thrive in Nigeria.

For those of you who say you re making money its only a matter of time they close your business.

nairalanda1:
Oga, please accept the truth. Stop arguing for the sake of argument.

If a disco is earning 206 billion naira and is getting 300 billion naira in power supply from the gencos, and gas costs are eating up over 90% of the bill, how dey go survive.


You can abuse me and call me insensitive, but either we pay cost reflective tarrifs for electricity or we forget it.

Again, stop arguing . You are whipping an unalive horse here man. No matter how hard you whip it, it ain't comming back.

So what is the cost reflective tariff since you are an expert in this field.

Put a figure on this and let the government set it there. Nigerians will pay. Nigerians have always payed.

But I assure you that before the year ends you will hear that they are still subsidizing.

They said (no one forced them to) that Band A was zero subsidy. So what has happened.

No one is abusing anyone here. If you are under pressure. It is because you are trying to simplify a very complex situation and make the average citizen the villain.

But the truth is that everything rate and tariffs that this government has intended to increase, it has.

nwirinedu:
Better go and get your solar panels and generators, we cant be paying billions to power service providers who provide absolutely no service to customers! Yes I said that.

You buy your own cables, poles your community taxes you for transformers when these get bad the repairs are on you the theving DISCOs just come and collect your money while providing nothing as a serivce.

This is the only business model in Nigeria where customers are charged and made to pay for nothing!!

NERC is a big let down, the power sector is a scam, the operators enjoy government subsidies, tarriffs are revised every 6 months, the extorionary tendcy of the power sector is the reason why the country's industrialization is stunted for decades, only businesses that enjoy governmnt patronage and immunity thrive in Nigeria.

For those of you who say you re making money its only a matter of time they close your business.

Yeah, because if you do not pay a cost reflective tarrif to the power sector, you will pay it to the solar panel and battery sector, and by extension to the chinese and europeans who make those stuff, reducing the forex we have in nigeria, and worsening the value of the naira.


Power discos generated 206 billion naira in one month. IN one month they were expected to distribute 300 billion naira worth of power. How would they do that and remain profitable?.

Ye can earn billions of naira or dollars, if it still falls short of running costs, e go still be as if you made zero naira.

Reference:
So what is the cost reflective tariff since you are an expert in this field.

Put a figure on this and let the government set it there. Nigerians will pay. Nigerians iam s have always payed.

But I assure you that before the year ends you will hear that they are still subsidizing.

They said (no one forced them to) that Band A was zero subsidy. So what has happened.

No one is abusing anyone here. If you are under pressure. It is because you are trying to simplify a very complex situation and make the average citizen the villain.

But the truth is that everything rate and tariffs that this government has intended to increase, it has.

Good afternoon. You will still call me a liar and APC supporter...

You guys, I am not here to campaign for the government. I am here to tell you that profits is what makes things run well.

Passionate888:
What's the real electricity tariff?

Looooooooooooooooooooooooool, I bursted into laughter when I saw your comment... Na true, they should tell us the real tariff, so let's know where we're heading to and brace ourselves for it

Yampotatocarrot:
Looooooooooooooooooooooooool, I bursted into laughter when I saw your comment... Na true, they should tell us the real tariff, so let's know where we're heading to and brace ourselves for it

That would be about ₦250 and above per kwh aka unit

nairalanda1:
What Band A is paying. Bands B-E Pay way below that, and government is supposed to pay them a subsidy which is too too low to meet needs, even if it was paid regulary.

Band B-E does not even get as much power per day as band A, I think that'll need to be reconciled

epoxide:
Band B-E does not even get as much power per day as band A, I think that'll need to be reconciled

Yes, because they do not pay as much as band A and because decades of underpaying means that the sector cannot even meet its obligations to band A.