many brainless comments right here! If there is little or no generation of electricity ( which has even fallen below what was before) what will there be to distribute qua?? If you no chop how you go expect to shit?? shameless govt. still waiting for them to solve power in 6 months.

Commentor:


Before then you were enjoying 24 hour electricity.

Before then the electricity sector was on slow progress, there was progress nonetheless.

Under buhari, we are going backward.

Now, it's 3 hours on, 6 hours off in my location in Benin

feeloscar:
How will it meet when they vehemently refused to distribute prepaid meters to consumers

That's the other part of the SCAM, so they don't collect power supplied by GENCOs and go on and charge customers for power not supplied and how does this happen, people with Old metres..They are only crying wolf now cos the prepaid meters cut their scamming profits! in billions

FarahAideed:


I don't ooo but this is not the way to go

The way to go for you is any way Buhari isn't going.

This government is not serious about moving this country forward. How could the idea of reposing the DISCOs come to their mind as an idea of improving electricity?

Very greedy set of politicians or vendetta politicians. We all saw what we suffered in the hands of NEPA or PHCN!! I think they were worse than the police in terms of corruption.

Governments around the world are opening up their markets to private and foreign investors and not taking over. Let the professional handle it. Let the regulators ensure the DISCOs perform or their will be sanctions.

Those who bought PHCN had no technical knowledge they are politicians who used their positions to corner the power sector.

The generation that danced disco are still having waist pain. In doubt ask your dad or mom?

kayusely70:
Those who bought PHCN had no technical knowledge they are politicians who used their positions to corner the power sector.

yes hence I was laughing ahah, who in their right mind buy PHCN? something that never made profit

erico2k2:

That is called govt interference, they are not subsidising this sector so market forces have to take effect.

There IS a subsidy...that's why prices are being set by NERC....

The problem is that NERC is keeping prices low...too low below the production costs.

And one thing government can do is sign a law that stops NERC from setting prices...instead of taking over the DISCOS and GENCOS willy nilly....because that does not solve the problem of power operating at a loss.

Naijafull19:


There IS a subsidy...that's why prices are being set by NERC....

The problem is that NERC is keeping prices low...too low below the production costs.

And one thing government can do is sign a law that stops NERC from setting prices...instead of taking over the DISCOS and GENCOS willy nilly....because that does not solve the problem of power operating at a loss.

There is no subsidy in any part of power production.

Naijafull19:
There IS a subsidy...that's why prices are being set by NERC....

The problem is that NERC is keeping prices low...too low below the production costs.

And one thing government can do is sign a law that stops NERC from setting prices...instead of taking over the DISCOS and GENCOS willy nilly....because that does not solve the problem of power operating at a loss.

You want the DISCOs to hike electricity tarriff beyond the ability of the citizens to pay? Despite the fact that they give people more darkness, than light, and more power outage than power supply?

Go to states like Kwara, Kogi, Niger, Nassarawa, Zamfara etc and see how people are suffering. They cannot afford to feed properly, and now you want them to pay higher electricity bills? From which pocket? For how many hours of power supply?

There are too many inefficiencies and losses in transmission and distribution. Let them stop talking about tarriff increases, by plugging those holes first, and see if power supply will not improve.

Silly people!!

kayusely70:
Those who bought PHCN had no technical knowledge they are politicians who used their positions to corner the power sector.

True talk! Some who even had the right technical partners later discovered that their assumptions and estimates were all wrong. They thought they would buy the power plants today, and start making money by the next day. They forgot that there is a long gestational period, when it comes to transactions in the power sector.

ornicus:


unfortunately, power is capital intensive and a long term investment. you may not see your returns for another 7 to 10 years. when they were auctioning the discos, serious players came into the country. from companies like GE. but last last, na paddy paddy arrangement

Where did you learn that GE actually came to buy those assets? Please I need proof. GE never bidded to be part of the privatisation. GE is a smart company and knew that the PHCN assets were very risky and stayed away. GE only do contracts for the then PHCN and the current companies. I have heard this GE talk before and now. I can't keep quiet again. The people that were willing to take the risks and invest in PHCN were those that bought it. Established companies that were knowledgeable in power business stayed away because PHCN was never healthy and was too risky to be invested in which is what that is manifesting now.

chibjohn:

Where did you learn that GE actually came to buy those assets? Please I need proof. GE never bidded to be part of the privatisation. GE is a smart company and knew that the PHCN assets were very risky and stayed away. GE only do contracts for the then PHCN and the current companies. I have heard this GE talk before and now. I can't keep quiet again. The people that were willing to take the risks and invest in PHCN were those that bought it. Established companies that were knowledgeable in power business stayed away because PHCN was never healthy and was too risky to be invested in which is what that is manifesting now.

i worked in the oil and gas industry. some people wanted to partner with my then employer to bid on some of the discos. we were made to understand GE was also bidding. please spare us the BS about peopl willing to take teh risks. it is an open secret in the industry that patience Johnathan owns one of the abuja discos. that one is also risk abi?

established companies understand the the power industry is a LOONG term investment. your Nigerian paddy paddy willing to take risks are your usual i want 300% return in six months hustlers masquerading as businespeople

ashantitope:
Who to blame for this because I know someone will shout BUHARI name now for what is not aware of the generations of the matter and those that give out the contract are they not aware of all this?

Buhari!

Please reposses EEDC

The mess PDP has put us into.bunch of thieves

ornicus:



i worked in the oil and gas industry. some people wanted to partner with my then employer to bid on some of the discos. we were made to understand GE was also bidding. please spare us the BS about peopl willing to take teh risks. it is an open secret in the industry that patience Johnathan owns one of the abuja discos. that one is also risk abi?

established companies understand the the power industry is a LOONG term investment. your Nigerian paddy paddy willing to take risks are your usual i want 300% return in six months hustlers masquerading as businespeople

I am not asking what you were made to understand. There is definitely an error in that. I need a documentary, web or print media proof that GE actually bidded. If you don't have any of that, then whatever you were made to understand is nothing but rumour which is a lie. I know some oil and gas companies that bidded then but GE didn't.
What do you mean by 'one of the Abuja discos'? I know only one Abuja DISCO. I am just hearing for the first time from you that Patience Jonathan owns Abuja DISCO. Its still a rumour and I don't dwell on rumors. I also doubt that it's true. If it's actually true with the way this present government hate and has been fighting her it should have been a widespread news.

I agree that the power industry investments should be long term. Long term doesn't mean that they should be operating at loss every year with no hope of a future turnaround. Long term investments in a business venture means that the time to recoup the capital invested in the venture is long. Let's say from 10years upwards. Businesses requiring long term investments also make yearly profits but not enough to recoup the capital in few years. It is pure stupidity to invest long term in a business with a bleak future. That's investment 101.

Tradernaija:


The same way you were blaming and insulting JONATHAN

What is wrong with some of you? The Jonathan government supervised the sale of our DISCOs (power distribution companies) to their cronies who are largely corrupt and incompetent buffoons without the requisite competence and background to engage in the power business. Today, Nigeria is suffering for the mess OBJ created and Jonathan went on to worsen massively leaving the APC Government with a huge headache.

Yet all you can contribute is blind defence your messiah who directly caused this problem and actually deserves to be in jail !!!! Long will the suffering of Nigeria continue if it is black-hearted people like you , totally lacking in objectivity, who are in the majority. With revelations like this after the fact, which shows how badly GEJ and the PDP messed up, we still have the usual suspects clamouring for a return of Jonathan and his evil PDP Party. God save Nigeria sha.

soso22:
The mess PDP has put us into.bunch of thieves

Indeed. Many of us shouted ourselves hoarse back then regarding how the GEJ Government was conceding our DISCOs into the hands of incompetent cronies for kickback bribes. We were dismissed by the usual die-hard GEJ fans as 'haters'. Now Nigeria is suffering and the real haters are still hating.

laudate:

You want the DISCOs to hike electricity tarriff beyond the ability of the citizens to pay? Despite the fact that they give people more darkness, than light, and more power outage than power supply?

Go to states like Kwara, Kogi, Niger, Nassarawa, Zamfara etc and see how people are suffering. They cannot afford to feed properly, and now you want them to pay higher electricity bills? From which pocket? For how many hours of power supply?

There are too many inefficiencies and losses in transmission and distribution. Let them stop talking about tarriff increases, by plugging those holes first, and see if power supply will not improve.

Silly people!!


True talk! Some who even had the right technical partners later discovered that their assumptions and estimates were all wrong. They thought they would buy the power plants today, and start making money by the next day. They forgot that there is a long gestational period, when it comes to transactions in the power sector.

Why do you people only consider the cost the customers will pay without considering the economic opportunity cost we suffer without stable electricity?
Do you know that Nigeria losses billions of dollars in investments yearly due to no stable electricity?
A country of 200million people is a market of its own. It can attract investments if the right infrastructure is put in place. Stable power is that number one infrastructure followed by a good transport system. You need to research to open your eyes on how much our economy is suffering from because of our lack of stable power.
Countries only regulate tariffs below cost if they have the financial capacity to fully develop and support it. Nigeria govt cannot solely fund the power industry to full development which was why they privatised it. But keeping tariffs below cost has made their privatisation efforts to be in futility because the low tariffs and the losses is the major issue keeping investors away from the sector.

Stable power can create more jobs that will lift those from Kwara, logo, Niger, Nasarrawa etc out of poverty that wouldn't be possible if tariff isn't increased.

Naijafull19:


Actually GEJ is to blame FOR one thing...when setting up the DISCOS, he also ended up setting the rate at which they charged bills.

So, to cut a long story short...the DISCOS charge 30% of the actual cost, while government pays the remaining 70% via something called NIBET.

Of course, government has had issues paying the 70%...and anyway, the DISCOS cannot set their own prices, meaning they are running at a chronic loss.

Also, the price setting drove away a lot of foreign investors....

As for what Buhari is proposing to do, it would only make things worse. (Back to the bad old days of NEPA).

The truth is, you Nigerians don;t want to pay the actual cost of power. Hence the whole farce of GEJ making things hard for the DISCOS and GENCOS at their initiaiton.

You cannot run a business at a loss.

Well said.

But did the discos not think about profit and loss before venturing into it? Government gave the conditions and the investors accepted the terms.

The intention of GEJ was borne out of good faith considering the inefficiencies and greed of government officials in charge. Just like the communications sector, privatization of the power sector was meant to bring light to the whole country 24/7. Some corrupt persons hijacked it until this day.

Take a look at the board of these companies and you"ll surely find the names of powerful men in government today.

In agreeing to the terms of the GEJ government, DISCOs and GENCOs thought they had found an area to make billions of naira just like communication. GEJ gave handouts to back them up yet they failed to perform.

See my friend, until we are able to treat public institutions with care, we will still be here. For us in this country public institutions are meant to bring money to some private pockets.

Investors buy up public companies for peanuts, sell off the assets and go to sleep. Government officials meant to monitor, receive fat bribes and certify them fit.

I still maintain that the corrupt practices of our leaders, political and military, has kept this country in this condition.

candidtalk:


What is wrong with some of you? The Jonathan government supervised the sale of our DISCOs (power distribution companies) to their cronies who are largely corrupt and incompetent buffoons without the requisite competence and background to engage in the power business. Today, Nigeria is suffering for the mess OBJ created and Jonathan went on to worsen massively leaving the APC Government with a huge headache.

Yet all you can contribute is blind defence your messiah who directly caused this problem and actually deserves to be in jail !!!! Long will the suffering of Nigeria continue if it is black-hearted people like you , totally lacking in objectivity, who are in the majority. With revelations like this after the fact, which shows how badly GEJ and the PDP messed up, we still have the usual suspects clamouring for a return of Jonathan and his evil PDP Party. God save Nigeria sha.

This government has been in power for over four years now and can't correct the "mistakes" that Jonathan's government caused, so what were they elected to do than?
It is a real big shame that you people are still talking about "mistakes" of a past regime at this point in time of this current regime.

Ferdinandu:
My friend mind yourself. Nothing concern me with PDP or APC war of words. I just need light 24hrs at affordable rate. I don't have short memory Jonathan was a total failure and so also Buhari

And you think that sitting down, without being rationale will bring the light?

chibjohn:

Why do you people only consider the cost the customers will pay without considering the economic opportunity cost we suffer without stable electricity?
Do you know that Nigeria losses billions of dollars in investments yearly due to no stable electricity?
A country of 200million people is a market of its own. It can attract investments if the right infrastructure is put in place. Stable power is that number one infrastructure followed by a good transport system. You need to research to open your eyes on how much our economy is suffering from because of our lack of stable power.
Countries only regulate tariffs below cost if they have the financial capacity to fully develop and support it. Nigeria govt cannot solely fund the power industry to full development which was why they privatised it. But keeping tariffs below cost has made their privatisation efforts to be in futility because the low tariffs and the losses is the major issue keeping investors away from the sector.

Stable power can create more jobs that will lift those from Kwara, logo, Niger, Nasarrawa etc out of poverty that wouldn't be possible if tariff isn't increased.

This is more a case of an inefficient system keeping prices artificially high, it's not a subsidy regime. Anyone coming in here with foreign capital would have the sense to also come with the expertise, thus they would be aware ab initio that the power sector requires a lot of infrastructural overhaul and development. That's what the politicians who bought the discos failed to do.

There are ways government can sweeten the pot for investors without killing the same economy we are trying to jumpstart with abnormally high tarrifs. The cost of living (and the standard of living) are radically different between Nigeria and the west, Nigerians cannot be expected to pay the same absolute prices for utilities.

Ah, the chickens come home to roost. I wonder how they can call the present set-up "privatization" when a major component of the electric grid infrastructure, transmission, is still under the control of the government. each zone gets just one DISCO and they wonder why it doesn't work? Really? Africans are funny.

There is no competition! Politically linked and corruption-savvy cronies and politicians created DISCOs out of the thin air and rewarded themselves with large swats of space to collect as much rent as they can from the people. Unfortunately, they miscalculated and people resisted paying for no service and ended up losing money. Oh well, now the federal government has to reward them for both their failures.

There is no energy market! That is what every country with real privatized energy has. there has to be a retail and wholesale market for energy. The government should remove its hands and just make sure that rules of the competition are followed and standards are kept.

zoraro:


This government has been in power for over four years now and can't correct the "mistakes" that Jonathan's government caused, so what were they elected to do than?
It is a real big shame that you people are still talking about "mistakes" of a past regime at this point in time of this current regime.

Bro, those DISCO owners GEJ fraudulently engaged, without recourse to industry standard due process, have Iron-clad contracts the Jonathan government entered into with them that the Buhari government cannot disregard even as they are underperforming. The current government can only buy them out of their contract which it is now trying to do today. You say the Buhari government has been there for 4 years yet you do not appreciate that the Government face two choices.

Continue to watch disco owners underperform to the detriment of Nigeria, since they have solid contract backing their ownership tenure, or buy them out. Where would the money have come from to buy them out in the past very tough four years when a new government was still struggling to pay wages and grapple with the most important needs of Nigerians in a period of recession brought about by the massive drop in crude oil price worldwide?

Yet, as soon as the economy is improving the PMB Government is responsibly thinking of buying out the crooks GEJ foisted on us so Nigeria can move forward. Please familiarise yourself with the problem before you ask for unrealistic solutions.

Is there no repossession clause in the contract in the event of failure from the side if the discos?

Ferdinandu:
That's the only way to go. Obviously they are failed investors. Power bills keeps increasing but no improvement in power supply. Jonathan and his gang messed up the sector with outright sale of of Discos without a precondition of retrieving it back if they fail. Now we have to spend billions of dollars to get it back. Back then they were just shouting comparison with mobile telephony up and down without putting into consideration that that the 2 businesses are far different from each other. I don't know why dunces keeps ruling us, we keep moving in diminishing circles, and yet we still live and fire prayers in all religious centres that things are going to change in this country.
We are all foolish in this country. Gush

1 million likes for you my brother!

candidtalk:


Bro, those DISCO owners GEJ fraudulently engaged, without recourse to industry standard due process, have Iron-clad contracts the Jonathan government entered into with them that the Buhari government cannot disregard even as they are underperforming. The current government can only buy them out of their contract which it is now trying to do today. You say the Buhari government has been there for 4 years yet you do not appreciate that the Government face two choices.

Continue to watch disco owners underperform to the detriment of Nigeria, since they have solid contract backing their ownership tenure, or buy them out. Where would the money have come from to buy them out in the past very tough four years when a new government was still struggling to pay wages and grapple with the most important needs of Nigerians in a period of recession brought about by the massive drop in crude oil price worldwide?

Yet, as soon as the economy is improving the PMB Government is responsibly thinking of buying out the crooks GEJ foisted on us so Nigeria can move forward. Please familiarise yourself with the problem before you ask for unrealistic solutions.

Nice,glad to know we still have objective thinkers.