Prepare for Higher Electricity Tariffs, Osinbajo Tells Nigerians

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Yemi Osinbajo

Omololu Ogunmade in Abuja

Vice President Yemi Osinbajo monday asked Nigerians to brace up for inevitable higher electricity tariffs.
“There is no question at all that we must pay higher tariffs,” he said.

Osinbajo who made this remark while addresing the quarterly business forum organised by Presidential Enabling Business Environment Council (PEBEC), however, said increase in the tariff would not take place now.

According to him, the N700billion Payment Assurance Guarantee set aside by government was payment to ensure uninterrupted payment for gas and liquidity in the power sector.

Osinbajo said the payment assurance guarantee was to fund a smooth transition “from where we are to a much more market-determined policy for electricity.”

The vice president said government was working with the World Bank on this.
Alsi giving an overview on the progress made in agriculture, Nigeria’s Minister of Agriculture and Rural Development, Audu Ogbeh, said Nigeria’s import of rice has dropped by about 95 per cent from 644, 131 metric tons in September 2015 to 20,000 tons in September 2017.

According to him, there are 12.2million farmers growing rice in Nigeria, mainly in states like Kebbi, Jigawa, Kano, Ebony and Nasarawa.

“We should be almost certain to meet our needs in local rice production,” the Minister of Agriculture said.
Others who spoke were the Minister of Industry, Trade and Investment, Okechukwu Enelamah, gave an update on the Export Incentive Grant; and the Chief Executive Officer of the WACOT Rice Mill in Kebbi State, Rahul Savara.

Participations from the private sector at the meeting also raised questions and made observations on such issues as access to credit, quality control, protection of local farmers, land, among others

  • Malam Wane

    Towards steady power generation and supply, we need not follow the path taken by the West to develop. China took a short cut and not only develop but overtook the West in less than 30 years. Individual power generation by solar is the answer. Solar technology was not available cheaply when Western countries were developing their energy sources. Now, solar is cheaper and affordable. Individual Nigerians should shun ostentatious and foolish living habits and invest their income like Asians do in productive ventures, like power generation. Nigerian government cannot meet the energy demand of over 180 million mostly unproductive, lazy and garrulous Nigerians often, given to flamboyant life style. Let the government provide incentives to the private sector and eventually hands off power. The oil revenue which we depend on is insufficient to meet our developmental needs and is killing our initiatives to reason and develop our economy.

    • FrNinja

      In terms of solar, the government should take the lead. There are a lot of government buildings (administrative buildings, schools) that really should run on solar for most of their daily power needs – computers, fans, lighting.

      Next should be to provide stable power for those who need it and can pay for it by states developing industrial layouts and formalizing business/commercial districts. These areas should be prioritized with power.

      Third for the most problematic sector – residential – failed DISCOs should be broken up and re-sold. Smaller DISCOs should be more efficient than larger ones.

  • Prospekt arty

    This is sensible. The only people who are blind to their own blessings are Nigerians. This is a country that the whole world envies as being one of the most naturally fertile places on earth, it does not have any natural disasters, it’s extreme fertility has led it to be the centre of Africa’s population for centuries, yet we don’t appreciate what we have or we mismanage our resources and would rather spend money on imported rice simply because it’s imported. The South Africans and Indians are shocked ato how indifferent Nigerians are to their land and how very little is done to harvest the fruits of the land and an over reliance on petroleum income. It’s only in Nigeria that seeds will sprout into trees on their own. Most places you need to be on a threatening volcanic slope to achieve that. Yet little premium is placed on agriculture and Nigerian cities choked full of beggars and paupers dreaming of making it big.

  • Maigari

    There is really not much to the electricity tariff except the reality that consumers have absolutely little or no choice. The electrical industry should at least be able to “inform”Nigerian at what time and level we can expect electricity. That way we could plan and order our priorities unlike the use-if-you-see conditions we operate on now. Closely tied to this is the random charges for electricity even with the prepaid system to those who were able to access the meters for that. Most importantly, the government must make alternate sources -solar and wind0 especially reasonably available to the domestic consumers such that we could operate NEPA-free.

    • Iskacountryman

      market forces…they increase tariff…you buy a generator…an supply your own electricity…

    • MASKVILLA

      You don’t need Government for an alternate like solar. Just buy your solar panels and pay for the install. You can be without the national grind by going solar. The choice is yours.

      • William Norris

        That was a short & sweet reply. I just had to delve into details 🤣

        • bigdaddy

          The west did not grow industrially by everyone building his own power source. Can you honestly say that was how it was done or is that your own home grown solution to the power deficit in our country? You are a free market advocate i know, but there is nothing like an absolute free market economy. How competitive do you think your products will be if you are advocating everyone builds/installs his her own power source?

          • William Norris

            20 days ago, YOU and I had annextensive discussion here where I addressed your statement that “there is nothing like an absolute free market economy”.

            http://www.thisdaylive.com/index.php/2017/11/09/budget-2018living-on-borrowed-time/

            This was my reply or explanation
            ——————————————
            YES, there can’t be anything like a completely free market. It’s a continuum. On a scale of 0 to 100, where 100 is a completely free market, Nigeria is presently at 15. My suggestions are that it needs to move to 75.

            SOCIALIST policies work better in COHESIVE nations….countries that are dominated by one TRIBE or religion or something like that. Nigeria has multiple and discordant schisms that make it unsuitable for regulated pricing and/or public/govt ownership of resources. This isn’t THEORY, it’s FACT. It’s HUMAN NATURE.
            Thanks.
            ——————————————

            I think you claimed to be a doctor, which generally means you’re relatively smart. Even for Nigerian trained docs, that is somewhat still true. Let’s not engage in pointless arguments.

            Thanks.

          • bigdaddy

            Forgive me my man, that was my first response which i deleted and wrote a second. To my amazement, the deleted response is what i am seeing here. The point in my actual response was that even solar energy needs government policies to make it available to the poor of the society. There is always a bit of socialism even in the most capitalist and heterogeneous of societies.

            Aversion to paying bills while expecting world standard services is the typical Nigerian folly.

          • BlueDog

            uduaghan the past Governor of Delta state is a registered Nigerian Medical Doctor, there was nothing smart about his eight years occupation of Delta state government house. So was Ngige of Anambra state. I really don’t know what to make of these guys. Just wanted to point out being a medical doctor doesn’t resonate to political brilliance.

          • William Norris

            LOL….OK !!!

            I think Ngige did well as Governor, despite very unusual and difficult circumstances.

          • Rosemary Maduezi Anyaogu

            it is a lie, he did not do anytin. what ever you think he did was to get the heart of anambrarians to his side and now his character has evolved and people have come to know that he is not patrotic at all

          • William Norris

            I take it you don’t like Joe Igbokwe either 😀

    • William Norris

      Nigerians have choices.

      1. Diesel or petrol generators.

      2. Solar is available.

      3. Mains electricity from the DISCOs

      None of the above is a secret. In order to get electricity from any of them, a consumer has to pay a price demanded by the producer.

      If you run a diesel gen for 24 hours you will likely spend over ₦400,000 per month on a middle class home.

      Right now this is the cost of solar in Nigeria – ₦1.6 million for a 9KW system.

      http://solyntaenergy.com/family-starter/

      MTN also has a cheaper Lumos mini solar system for around ₦100,000 per year pay as you go.

      https://www.google.com/search?q=MTN+Nigeria+solar+system&oq=MTN+Nigeria+solar+system&aqs=chrome..69i57.19147j0j4&client=ms-android-samsung&sourceid=chrome-mobile&ie=UTF-8

      The price that DISCOs want for mains electricity is ₦65 per unit of use.

      https://www.thisdaylive.com/index.php/2017/10/31/abuja-disco-electricity-tariff-should-be-n65-per-kilowatt-hour/

      Unfortunately the Nigerian people don’t want to pay that. Instead they have pressured government to regulate and fix the price at ₦30 per unit.

      Those are the options. To claim Nigerians have no optiokns in the electricity market is a BIG LIE. It’s truer to state that Nigerians don’t want to pay for their electricity OR that they want government to use some of the money they STEAL from the Niger Delta and give them free electricity.

      Good Luck with that.

      • Maigari

        Its not that solar needs government approval, no. But considering that billions have been poured into invisible subsidies for the ineffective Discos and their allied Gencos all in the name of Nigerians. Now that those in-charge are either unwilling or unable to face o to the failures of the Discos and co to invest there is need to waive the duties on solar and wind systems for Nigerians, That’s all what I wanted to say not the semantics on what the cost of power per unit should be. I am that certain the greater majority of Nigerians are neither thieves nor asking for anything free that is the exclusive preserve of the power elites and their acolytes like you.

        • William Norris

          The bigger lesson is that government should HANDS OFF commercial business and let markets operate freely.

          Anything regulated or owned by government is VERY LIKELY to become inefficient, wasteful and generally corrupt.

          A good example….have you tried to use NIPOST lately?

          🤤

          The MAJOR PROBLEM in electricity is regulated prices. I’m short of time so if you’re interested you can follow a long argument in the comments here –

          https://www.thisdaylive.com/index.php/2017/10/31/abuja-disco-electricity-tariff-should-be-n65-per-kilowatt-hour/

          Thanks.

      • Iskacountryman

        use kerosene lantern…iron with charcoal…use kerosene stove…

  • William Norris

    This is very good policy. Tariffs need to be deregulated. It must happen.

    I hope this signals a real turnaround in thinking from this socialist government.

    ————————————————————–
    Osinbajo said the payment assurance guarantee was to fund a smooth transition “from where we are to a much more market-determined policy for electricity
    —————————————————————

    Though he sounds like they won’t actually IMPLEMENT this anytime soon. Just like they “FLOATED” the naira 🤣…..and then turned around and fixed the price.

    Here we learn the Federal Government is going to pay another 700 billion ($3.1 billion) in subsidies to the electricity companies. This in a country with a 2017 budget of less than $25 billion.

    Tomorrow some people will ask where did their money go in spite of CRUDE oil price of $60 @ 2 million barrels per day.

    Reminds me of….

    https://www.thisdaylive.com/index.php/2017/07/23/fuel-subsidy-pipeline-repairs-hinder-nnpcs-profitability/

    • austin

      While I agree with your deregulation policies, I do not think it fits this scenario. Deregulation supports that prices would be market driven. The market is regulated by competition, which in turn is checked by demand and supply.
      There is no competition in the power market. The distribution rights given to the discos ensures that there will not be such in a long time. Prices cannot be deregulated now. Deregulating the industry as presently constituted would be like handing the knife to the Discos to go and cut as much meat as they can carry.

  • Mystic mallam

    That’s all you know to do increase tariffs and blow inflation from 8% to 18% in 6 months while keeping wages static, then hypocritically shouting anti-corruption. Shame on all of you who are living high on the hog while the citizens suffer and die in silence.

    • Iskacountryman

      electricity is not for the poor…

      • Mystic mallam

        you mean the mentally poor like your poor self?

        • Iskacountryman

          okay…go and turn on your generator…smart boy…

  • Olufemi Bello

    God have mercy on us.

  • Christopher

    Hopeless criminals. Whatever statistics the vice president is basing his falsehood On will not stand the test of time in my memory.
    But I won’t forget a bag of rice was six thousand natural before the coming of this devilish administration.

  • Socialism For Naija

    Visonless and Clueless…..

    • Iskacountryman

      they promised change not vision…