Naijafull19:
Inasmuch as people would shout 'We are poor'...here are some hard facts

1.We need to generate power above 40000MW

2.We also need to fix transmission systems

3.All these will cost trillions of naira.

4.And the way forward is by allowing DISCOS to set the price they want to set (yes, government should stop setting prcies).

Back in 2001...GSM came to Nigeria, with outrageous prices. We all complained. And the service was initailly poor. But thanks to the freedom affroded them to do their business they could raise funds to build from scratch the telephone and internet service we have today. All those GSM infrastructure you see is the result of allowing GSM companies freedom to set their prices.

If we keep on shortchanging the power sector....we will never see 24/7 light. Power companies cannot attract investment. They cannot even take loans from banks because the banks know they won't see their money....because the DISCOS aren't making enough profit to fund their operations, talkess of paying back a loan.

You are free to insult me, call me insensitive. But if I was in power and I forced you as a rice salesman or woman to sell rice at N7000 below the price you bought it....because of the masses...won't you go broke in a few years? Won't you sack your workers in a few years??

Let's stop acting like Communists. We don't have enough cash to run a Communist economy. If you want a communist economy, form a Marxist-Lenninist party, and implement your own state controlled prices...but the sad thing is that capitalism works. It hurts people, but it also benefits more people. Let's run power like a capitalist enterprise.

While I commend your analysis, you failed to point out that Gencos are the major issue in Nigeria electricity problems,...... The total power generatEd in Nigeria cannot power just the southwestern part effectively.

Until then, we are waiting.

ijustdey:






https://punchng.com/nigerians-to-pay-more-for-electricity-consumption/

As long as the government/discos will not installed metres to eliminate estimated billing,I will never pay more 3k per month for electricity irrespective of the bill brought, shikena.

wirinet:

There cannot be uninterrupted electricity without increase in tariff. The current tariff is not sustainable in the long run.
The solution is individuals investing in solar.

Naijafull19:


That's the truth.

But the problem with Nigerians is that they want things cheap....even if it isn't sustainable.

Do you truly think that the problem of electricity distribution is caused by UNDERBILLING?

I think the problem is under-generation:
Nigeria needs about 16GW and we produce 3.5GW. DISCOS don't generate, they distribute what is available.

I don't think it is fair to compare cost of production of electricity outside the country (specifically western world) with Nigeria unless Nigerians are PAID in Dollar equivalent of what their counterparts outside the country are paying.

Chizuru01:
I told my foolish nairaland friends that supports APC that this government does not care about the hardship of nigerians but his foolishness will never let him see it

.
no Government has ever cared. they are both the same.

ijustdey:






https://punchng.com/nigerians-to-pay-more-for-electricity-consumption/

As long as the government/discos will not installed metres to eliminate estimated billing,I will never pay more 3k per month for electricity irrespective of the bill brought, shikena.

Mydazz:


While I commend your analysis, you failed to point out that Gencos are the major issue in Nigeria electricity problems,...... The total power generatEd in Nigeria cannot power just the southwestern part effectively.

ijustdey:






https://punchng.com/nigerians-to-pay-more-for-electricity-consumption/

As long as the government/discos will not installed metres to eliminate estimated billing,I will never pay more 3k per month for electricity irrespective of the bill brought, shikena.I don't agree with you,just a few days ago Osibanjo himself admitted that the present generation capacity is about 8000mw+ while the transmission capacity is just about 5000mw so it's not gencos fault, even if new generation plants are built today, transmission n distribution will still be a problem, there is the need for the government to increase the amount of power a private body can generate,transmit n distribute off national grid from 1mw to at 5mw, while the other aspect of power are address,I believe this will bring about a massive improvement in the power business sector within a very short time n contribute to economic growth n national development.

what will a kilowatt cost when the current is only half as is mostly the case in Naija?

Naijafull19:
Inasmuch as people would shout 'We are poor'...here are some hard facts

1.We need to generate power above 40000MW

2.We also need to fix transmission systems

3.All these will cost trillions of naira.

4.And the way forward is by allowing DISCOS to set the price they want to set (yes, government should stop setting prcies).

Back in 2001...GSM came to Nigeria, with outrageous prices. We all complained. And the service was initailly poor. But thanks to the freedom affroded them to do their business they could raise funds to build from scratch the telephone and internet service we have today. All those GSM infrastructure you see is the result of allowing GSM companies freedom to set their prices.

If we keep on shortchanging the power sector....we will never see 24/7 light. Power companies cannot attract investment. They cannot even take loans from banks because the banks know they won't see their money....because the DISCOS aren't making enough profit to fund their operations, talkess of paying back a loan.

You are free to insult me, call me insensitive. But if I was in power and I forced you as a rice salesman or woman to sell rice at N7000 below the price you bought it....because of the masses...won't you go broke in a few years? Won't you sack your workers in a few years??

Let's stop acting like Communists. We don't have enough cash to run a Communist economy. If you want a communist economy, form a Marxist-Lenninist party, and implement your own state controlled prices...but the sad thing is that capitalism works. It hurts people, but it also benefits more people. Let's run power like a capitalist enterprise.

Your argument I must confess is myopic.

How can you compare MONOPOLIES like the DISCOS to GSM suppliers?

On my Phone, I have MTN, GLO, AIRTEL. I have options. I have discarded all other unprofitable networks because I have a choice. Don't forget that MTN used to say that per-second billing wasn't possible until GLO came in.

If IEDC is epileptic and AEDC is fantastic, can I migrate from IEDC to AEDC? Your argument is flawed.

Show me just one DISCOS that is selling electricity below the cost price? Just one is enough

wirinet:

There cannot be uninterrupted electricity without increase in tariff. The current tariff is not sustainable in the long run.
The solution is individuals investing in solar.

In monopoly,u cannot increase price and quantity demand at the same time ,read ur market structure note in economics if u have one.

The increase will create

Reduction in consumption and hence reduction in their total revenue

Electricity theft will be on the rise.

This will further impoverished the disco.

Deepthoughts:
As long as the government/discos will not installed metres to eliminate estimated billing,I will never pay more 3k per month for electricity irrespective of the bill brought, shikena.As long as the government/discos will not installed metres to eliminate estimated billing,I will never pay more 3k per month for electricity irrespective of the bill brought, shikena.I don't agree with you,just a few days ago Osibanjo himself admitted that the present generation capacity is about 8000mw+ while the transmission capacity is just about 5000mw so it's not gencos fault, even if new generation plants are built today, transmission n distribution will still be a problem, there is the need for the government to increase the amount of power a private body can generate,transmit n distribute off national grid from 1mw to at 5mw, while the other aspect of power are address,I believe this will bring about a massive improvement in the power business sector within a very short time n contribute to economic growth n national development.

I understand you quite right, but I still maintain that what is generated isn't enough, I believe power generation should be knocked out of the exclusive list so that each state can have plans for power within their territory from generation to distribution,..... this will even give each state the opportunity to use the most cost effective means of power generation whether it's gas, hydro or solar or even combination of any of these and others.

krattoss:
Electricity isn't cheap anywhere in the world.

The problem is will they deliver after the payment?

Have they delivered after this one we have paid?

Mydazz:


I understand you quite right, but I still maintain that what is generated isn't enough, I believe power generation should be knocked out of the exclusive list so that each state can have plans for power within their territory from generation to distribution,..... this will even give each state the opportunity to use the most cost effective means of power generation whether it's gas, hydro or solar or even combination of any of these and others.

we are basically on the same page then.

Reference:


Please don't laugh at yourself. Power is an ultra long term, intensive investment sector that has as its core a need to prove there exists a market. Right now a viable market does not exist in Nigeria. Nigeria needs to prove it can afford electricity.

To the lay man, if Aunty Chichi is to invest in the Isi-Ewu business she needs to understand that she not only needs an abundant supply of affordable, well endowed and cerebral goats but more importantly in the Nigeria of today she has to ensure that her joint is at thè crossroads of the lazy, dilinquent customer who has a lot of free money to burn. Such, she will not locate her joint near where the folks either cannot afford it or are too busy to indulge. If she insists she will go bankrupt.

Power us a little bit more serious than that. Power infrastructure is prohibitively expensive. There are no bricks and mortar elements here. Everything about power is about metals, fuels and semiconductor integrated circuits. Metals are just crazy in the Nigerian market right now, fuels are no longer produced in Nigeria no thanks to our moribund refineries, gas investment is shrinking no thanks to tupsy-turvy government policies and electronics are very expensive despite China due to the value of the naira.
P
You go through all that and at the end the Nigerian customer aka Mr. Common Man says he won't pay....hmmm. I think the problem Nigerians have is that they see far too many personal generating sets and think the goat in their backyard equates to a tasty pot of IIsi-ewu....

This analysis while it makes sense, you should also know that this country is a place where the simplest things are the most difficult to do. It comes down to simply doing what one needs to do to achieve something. I dont think the other countries that have moved past power are enjoying what they do because metals are cheap. Id say its because everyone inderstands how the little things contribute to a greater good. We on the other hand think doing your job = being stupid. This incompetence is not just in the power sector but in every sector.
We have not fully understood how cause and effect works in life. You want electricity 2-4 but you dont want to carry out the necessary maintainence to ensure the machines run. Like someone said here maybe we have not fully evolved as human beings.
That being said I laugh because the people this concerns are happy about the situation. Niggerians are attuned to suffering and pain thats why even when they ask them to protedt they will rather protect their oppressors. Let them continue.

wirinet:

There cannot be uninterrupted electricity without increase in tariff. The current tariff is not sustainable in the long run.
The solution is individuals investing in solar.

the truth is that we don't even produce enough electricity to go round. Current tariff is not even remotely the reason there is more darkness than light.

ijustdey:





https://punchng.com/nigerians-to-pay-more-for-electricity-consumption/

Even with the Sawmill bill you are giving us before? issorite

shadeyinka:

Your argument I must confess is myopic.

How can you compare MONOPOLIES like the DISCOS to GSM suppliers?

On my Phone, I have MTN, GLO, AIRTEL. I have options. I have discarded all other unprofitable networks because I have a choice. Don't forget that MTN used to say that per-second billing wasn't possible until GLO came in.

If IEDC is epileptic and AEDC is fantastic, can I migrate from IEDC to AEDC? Your argument is flawed.

Show me just one DISCOS that is selling electricity below the cost price? Just one is enough

The reason why the DISCOS are like that is because the enabling law that set them up set them up made them regional monopolies...and as a result, there is no competition.

(Similar mistake was made under the CMDA mobile system...which once upon a time was rivaling GSM. ).

shadeyinka:




Do you truly think that the problem of electricity distribution is caused by UNDERBILLING?

I think the problem is under-generation:
Nigeria needs about 16GW and we produce 3.5GW. DISCOS don't generate, they distribute what is available.

I don't think it is fair to compare cost of production of electricity outside the country (specifically western world) with Nigeria unless Nigerians are PAID in Dollar equivalent of what their counterparts outside the country are paying.

DISCOS reject power from GENCOS because ...underbilling. means they cannot make enough of a profit to pay GENCOS.

Then there is the fact that we need money in the hundreds of billions to fix power. Price controls is not the way forward to raising the cash.

Mydazz:


While I commend your analysis, you failed to point out that Gencos are the major issue in Nigeria electricity problems,...... The total power generatEd in Nigeria cannot power just the southwestern part effectively.

Because the GENCOS aren't earning enough cash to fund their operations from the DISCOS due to poor returns from bills collected.

And we need the money to raise generating power....

philos:


We have more than enough money to run a Communist economy in this country.
Do you know how much money, running into trillions, that are looted in this country? It is enough to make every citizen have every social amenity, and live comfortably. These are facilities that are already taken for granted, even in some West African countries. But here, they are considered luxurious, scarce commodities, that are supposed to be rationed among citizens.
This country is still extremely far from the much desired light at the end of the tunnel. Take it, or leave it.

Actually we don't have enough money. We are broke.

Oil, our major earner, needs to be sold at $140 PER barrel before we can run a budget sans borrowing.

Plus, we don't earn enough from Agric.

Corruption makes a bad problem worse.

ThothHermes:
BS

Are the power companies currently running at a loss?
Or are you just parroting something you heard from another ignoramus like you?

Good afternoon. Do have a nice day

ollah2:



The problems with Nigeria? You must be stvpid to have writen this, you don't expect Nigerians not to want soemthing cheap when they are paid cheap. How much is minimum wage? How much do employers pay average employees?

I did not insult you. I did not abuse you, but you abused me.

You are an adult. Please respect yourself. Make your points without casting aspersions on myself.

Grow up please. Thank you.

toolovely:


Comparing GSM and power is a very poor analogy.
GSM has many operators which made the market competitive. Each had options of fixing their own prices thereby attracting customers.
But power has no such thing.
In South East for example, who's competing with eedc? They have the sole right to distribute power there. They can choose to distribute or not and you will still pay. You can give a company monopoly and expect same company to reduce price.
And what happens to the billions of dollars that have been spent in the past for power generation?

GSM has a lot of operators because when they were set up, governmnet did not bring in a law forcing them to charge prices below the cost of production//making a call.

So, investment flowed in, and more companies entered the market.

Simples.

DISCOS have to charge below the cost of production of power (which is why they reject the power that GENCOS supply)...so they cannot be profitable...and this also keeps foreign investment and investment from banks away. Meaning...no infrastructure development.

I hate making the argument really, but if we want sustainable power supply, we have to pay the adequate price for it.

Naijafull19:


DISCOS reject power from GENCOS because ...underbilling. means they cannot make enough of a profit to pay GENCOS.

Then there is the fact that we need money in the hundreds of billions to fix power. Price controls is not the way forward to raising the cash.

Point pleasant of correction sir,
DISCOS reject power from GENCOS because
1. They make money from estimated billings which is more profitable than actual sale of power.
2. Logically if what you use is what you pay (Prepaid System): DISCOS will make more money when they distribute more power.

It is not us (Nigerians) who need the Billions to upgrade generation of power: it is the GENCOS that need to find the Billions. And they are investors, they know the way to the bank or to attract foreign investors.

It's like saying because the Transporter need a new vehicle to transport commuters from Lagos to Abuja, commuters should begin to pay N50,000 per trip. It doesn't make sense.

Next level Nigerian

krattoss:
Electricity isn't cheap anywhere in the world.

The problem is will they deliver after the payment?

That's not the issue . How many people are enjoying the light. The news is more like saying that we are paying more for darkness

helinues:
The headline should be

' Nigerians to pay more for darkness '

What is the role of Babatunde Raji Fashola here? He's no more the minister of power.

Even if Nigerians are paying one million Naira every month, we would never still experience steady power supply.

That's no problem as far as fuel price is low ,after all no power in nigeria , so they can hold the power to their selves, Buhari’s next level unpacked!

Naijafull19:


Good afternoon. Do have a nice day

Whatever.

bentwood85:


That's your opinion bro... Are you aware that millions of Nigerians pay for electricity that they don't use.
My personal experience : From December 04 2018, the whole town were I reside was disconnected from power supply, it was later restored in April 13 2019. There was no bill throughout this period of darkness, immediately power was restored, we got our PHCN bill..
I was been charged for the 4month of darkness.my bill was about N33k(I ensure i pay my phcn bill to 0k).The main problem killing the power sector is corruption, it should be addressed before any other thing.
Where I reside in Lagos, we paid for transformers, concrete poles, aluminum cables, infact the landlord had to raise funds to electrify the town, believe me Nigerians are doing their best.
Every new power minister wants to increase the price of power consumption, and yet they can't address the root cause of power failure in the power sector.

Even DISCO are not ready to improve on the power transmission.There is corruption everywhere. In the FCT for example major cities like maitama, Garki, asokoro, Wuse, gwarinpa can boast of almost 24hours power supply, then areas like Bwari, nyanya, karu, jikwoyi, Gwagwalada power supply is always rationed, infant some use power supply for 15days in a month and may be 12-15 hours or less a day.. And are billed at the same rate.. Bros have we not be patient enough?
Until corruption is wiped out from the power sector if they like they can increase power consumption N1m/kwh ....i repeat we would continue remain stagnant in power sector...

The dry season is approaching gradually the water level would be down and since we operate majorly on hydro power generation the power supply would be down... And DISCO/PHCN would still bill NIGERIANS crazilly..

AN INSTANCE OF CORRUPTION.
It is an established fact that the Obasanjo administration spent about $12billon dollars(not naira) to build more power stations and improve electricity supply, yet many contractors(including government officials) collected money and never visited the site.. What happened to the contractors and were is the money?..
The FG should remove it interest completely from the power sector and hand it over to the private sector.

The bolded is a lie. We do not operate majorly on Hydro Power generation. We have more fossil fuel generation plants than hydro in Nigeria.

chibjohn:

The bolded is a lie. We do not operate majorly on Hydro Power generation. We have more fossil fuel generation plants than hydro in Nigeria.

Alright.... Thanks

who told you that? Here in Madagascar, we pay about #33 per kw