₦airaland Forum

The Federal Government said on Wednesday that it would not continue to give subsidy to the power sector .
It called on Distribution Companies in the country to improve on their financial and technical capacity to deliver or the government would intervene more directly to find solutions to darkness .
The Minister of Power, Saleh Maman, said after the Federal Executive Council meeting on Wednesday that a “ plan ” had been submitted to the government , targeted at resolving the challenges faced by the sector .
He stated that the government was in talks with a German firm, Siemens, to be part of solutions it was seeking to address the challenges.
Giving an insight into some of the challenges, the minister said Nigeria had the capacity to generate 13, 000 megawatts and could transmit 7, 000MW.
However , he stated that much of the problems lay with the distribution companies , as they could only take 3,000 MW to 4, 000MW.
Worse still , Maman said the DisCos would take the 3, 000MW but pay for only 1, 000MW, an indication of lack of financial capacity .
“ Government will not continue to subside the sector .
“ If they ( DisCos) are not ready, they should tell us. We have a plan on willing seller , willing buyer ( sic) , ” he stated .
In the last three years alone , the government said it had spent over N 1.7trillion on the sector.
Incidentally, the power sector is privatised , save for the 40 per cent equity held in trust for Nigerians by the government .
The session was presided over by the President, Major General Muhammadu Buhari ( retd.) .

source: https://punchng.com/we-cant-continue-to-subsidise-power-fg/

Way to go!

Intervene already. DisCos are rogues.

SocialJustice:
Intervene already. DisCos are rogues.

Dancing disco on nigerians heads.

What of petroleum?

Okay.. No cause for alarm.

This was just a comment from a minister and not from the 'the presidency'.

If the privatization was done well, there wont be need for Government subsidy

“ Government will not continue to subside the sector .“ If they ( DisCos) are not ready, they should tell us. We have a plan on willing seller , willing buyer ( sic) , ” he stated .

Lol you guys are tired of bleeding money. Next up oil and transport.

Last last na sell them go sell dis country

Yankee101:
What of petroleum?

It's subsidized already

PDP really killed this country. If the privatization was done well we won't be at this crossroad now. The worse is that the DISCOS are owned by very powerful individuals both in n out of government.


One day monkey go go market e no go come back.

If Buhari wants to be wicked and totally strict in the fight against corruption, then Obasanjo/Atiku Jonathan/Sambo should be in jail now.

Imagine paying a huge sum as subsidy, yet the power supply is nothing to write home about.

P&ID gas project that was supposed to serve as a bail out in this electricity crisis became another avenue for Jonathan and his cabinet to keep looting the country for years!!

How more wicked can these leaders be?

Okoroawusa:
PDP really killed this country. If the privatization was done well we won't be at this crossroad now. The worse is that the DISCOS are owned by very powerful individuals both in n out of government.


One day monkey go go market e no go come back.

Senseless people like you are still blaming PDP after years of this failure and disaster called APC government.

powerkey:
Senseless people like you are still blaming PDP after years of this failure and disaster called APC government.

why do you think this country is in a mess like this,it is because there are many fools like the guy you quoted in this country drawing back the hands of the clock,buhari and his supporters are very dumb what do you expect such combination to offer the country

Okoroawusa:
It's subsidized already

I know. It's sarcasm. They won't remove petroleum subsidy because not only has it increased (even when gas prices are down and Buhari promised to remove it) but his friends and election sponsors are beneficiaries.

They want to remove power subsidies cos the masses are the beneficiaries

Officialgarri:
If Buhari wants to be wicked and totally strict in the fight against corruption, then Obasanjo/Atiku Jonathan/Sambo should be in jail now.

Did Obasanjo, Atiku, Jonathan and Sambo force Buhari at gunpoint to pay power subsidies for the last 5 years? If not, then surely Buhari too should immediately report himself to a jailhouse once he's done jailing all the people you mention, and Buhari's own sentence should be the longest of all, as at least those other leaders were mostly paying out subsidies while running a government surplus, unlike Buhari who has gone on a foreign borrowing spree to pay for his subsidies.

It's simply dishonest to pretend that any Nigerian government since Gowon is free from a portion of the blame for the current dysfunctional state of Nigeria's power sector.

Which day will this cr00ks realise that they can't continue to be in power?

[s]

Officialgarri:
Shut up your dirty mouth!! You are one of the senseless people who keep cheering those armed robbers into believing they are heroes.

For sixteen years, your masters couldn't provide more than 11GW of electricity yet they keep rolling out electricity related contracts like P&ID and all ends of being scam.
How shallow can you brainwashed children be?

[/s]

More darkness loading

They are coming again oo

powerkey:
Senseless people like you are still blaming PDP after years of this failure and disaster called APC government.

Do you know how much $16bn is?

This is more than blaming, they deserved questioning

[s]

SangoOlukosoOba:
Way to go!

[/s]

[s]

Officialgarri:
If Buhari wants to be wicked and totally strict in the fight against corruption, then Obasanjo/Atiku Jonathan/Sambo should be in jail now.

Imagine paying a huge sum as subsidy, yet the power supply is nothing to write home about.

P&ID gas project that was supposed to serve as a bail out in this electricity crisis became another avenue for Jonathan and his cabinet to keep looting the country for years!!

How more wicked can these leaders be?

[/s]

Officialgarri:
If Buhari wants to be wicked and totally strict in the fight against corruption, then Obasanjo/Atiku Jonathan/Sambo should be in jail now.

Imagine paying a huge sum as subsidy, yet the power supply is nothing to write home about.

P&ID gas project that was supposed to serve as a bail out in this electricity crisis became another avenue for Jonathan and his cabinet to keep looting the country for years!!

How more wicked can these leaders be?

Here you are still wallowing in blame games in Buhari second tenure...

A president that promised steady power supply if elected in 2015... Even fashola said he can do it in months...

Why are you defending scam politicians only interested in the key to the nation's treasury

Zombies everywhere

Please tell this people election is over.

Yankee101:
I know. It's sarcasm. They won't remove petroleum subsidy because not only has it increased (even when gas prices are down and Buhari promised to remove it) but his friends and election sponsors are beneficiaries.

They want to remove power subsidies cos the masses are the beneficiaries

Well I don't agree with you on this. The current subsidy regime on fuel is different from the regime of before. NNPC is the only importer of fuel in Nigeria currently so FG subsidize the landing cost.
However the subsidy of the power sector is like dashing money to some already rich n powerful people. They want government to leave the power sector for them to do as they wish. This government is foot dragging because they don't trust them neither do I.

The elephant in the room is that the Discos are not earning enough money to pay for power because the law setting them up allows them to charge for only 30percent of the actual cost of power while government pays them the difference as subsidy.

Imagine if one was a business person selling shoes, and government forces you to sell your shoes at a cost of 30 percent of the price you bought it , meaning that if you bought shoes at 1000 per pair, you sell at 300 per pair, while government pays you 500 subsidy per shoe sold, leading to a loss of 200 per shoe.

Another big elephant is that most Nigerians don't want to pay for electricity. We seem to think that we have to get power free of charge. So we bypass the meter and enjoy free power.

That is why discos can only pay for 1000 mw out of the 3000 MW they get. We Nigerians are not paying for power, meaning no money for important improvements needed for improving distribution capacity and generation. Chronic low oil prices means that government cannot pay for subsides, and the price controls by NERC means no foreign investment.

The discos and gencos should be allowed to set their prices. Yes, we would pay heavily, but there would be more private investment and improved power.

Yankee101:
I know. It's sarcasm. They won't remove petroleum subsidy because not only has it increased (even when gas prices are down and Buhari promised to remove it) but his friends and election sponsors are beneficiaries.

They want to remove power subsidies cos the masses are the beneficiaries

No,oil subsidies have not been removed because it means higher pump prices, which means higher food prices and inflation.

Long run it would be beneficial for the rich and powerful (more profit) . It would also mean more investment and more refineries and eventually lower oil prices via competition. It might even make Nigeria a major exporter of petroleum by products petrol inclusive. And end fuel smuggling and fuel scarcity and subsidy scams.

Same for power subsides.

There are long term benefits in allowing discos and gencos to charge whatever price they want to charge same way we allowed GSM companies to charge what they wanted. Increased investment and production of power in the long term are some of the benefits

powerkey:
Senseless people like you are still blaming PDP after years of this failure and disaster called APC government.

Did you say "after years of APC"?.... More than the years of PDP?
PDP had 16 years of taking us away from the years of military rule but instead they continued in the same fashion n Nigeria became a ground for greedy politicians to grab,steal n plunder as much of our resources as possible.

All form of subsidies should be removed and all the funds channel towards security, education, and other social investment programs!!