Lazyyouth4u:
Distribution problem is mainly around collections. If people are using electricity with the old meters and not paying, the DISCOS can’t make money. Even if they somehow install prepaid meters in every home, not many people can afford to pay for the electricity up to the scale the DISCOS require to settle the huge debts and make acceptable returns on their investments.

Lazyyouth4u:
Distribution problem is mainly around collections. If people are using electricity with the old meters and not paying, the DISCOS can’t make money. Even if they somehow install prepaid meters in every home, not many people can afford to pay for the electricity up to the scale the DISCOS require to settle the huge debts and make acceptable returns on their investments.

Lazyyouth4u:
Distribution problem is mainly around collections. If people are using electricity with the old meters and not paying, the DISCOS can’t make money. Even if they somehow install prepaid meters in every home, not many people can afford to pay for the electricity up to the scale the DISCOS require to settle the huge debts and make acceptable returns on their investments.

TransAtlanticEx:
They will always pay for what they consume,which kind nonsense analyses be this?
If you are poor,disconnect your AC,fan,iron,heater,etc...
What do you mean by not many people can pay bla bla bla....?
Socialism go kill una for this shithole,that's why I love Buhari.
Dude don't give a fùck about your feelings.

Cyberknight:


So socialism of some sort is basically a consensus these days worldwide. Where Nigeria has gotten it wrong is investing so much in subsidising consumption (petrol and electricity) as opposed to developmental areas such as education and health care.

SamReinvented:


Education and healthcare is actually subsidised in Nigeria. In theory, public schools in Nigeria are free up to secondary school level. In practice, I’m aware schools still charge pupils some few hundred naira (Equivalent of less than $3) for some petty things. At university level, students pay around $100 tuition per session. That’s less than the administrative charges that students pay in “tuition-free” Europe. Health care in public hospitals is also death cheap, and most times, you only have to worry about drugs. In the US, getting a common ambulance from a public hospital will set you back $6,000.

Most Nigerians don’t realize it, cos we are used to the prices we pay for these things, but we are actually getting a lot of public services/infrastructure at rock bottom prices, even when compared to other African countries. Their quality though, is a whole different discussion altogether.

Lazyyouth4u:
You are barking about socialism when all I am talking about is that the DISCOs are unable to pay down the huge debt incurred to acquire the assets because of collection issues. The same way you were making noise about crude lifting when you knew absolutely nothing about it. Try to be calming down o. No go give yourself HBP o. Abeg o. It’s a Friday o

TransAtlanticEx:
[s][/s]Kid you know nothing.
Discos aren't paying for debts not because the people aren't paying.No one will invest in that kind of futile enterprise.
If it was money,people that have money will buy out the discos and fund it properly.
If dangcem enter huge debts today,people will always be there to buy him out because they long for ROI,not some futile business like distributing electricity with no meters in place.
That why Buhari gave waivers to import meters to end estimated billing so people can pay for what they consume and end estimated billing which is way less than actual consumption(reason why discos cant pay for electricity supplied to them and keep rejecting it).
You want to talk about crude oil?That's actually what I did in school to some extent,indulge me,weyrey [s][/s]

Lazyyouth4u:

DISCOs aren’t paying for debts not because people aren’t paying? . How else will they generate revenues to pay for operating expenses and service debt if not from payments? You are a clown. Absolute rubbish you wrote there and I’m now convinced that you are an empty vessel that just makes noise. Let’s not even talk about crude lifting that you exhibited your ignorance on for all to see. I shall not waste any more time responding to a non-entity like you. You dey call me werey? We all know who be barking frustrated werey na. You think say na by barking? Continue barking na . You call me kid because of my Moniker? Hahaha. Na wa for internet people o.

emmanuelewumi:
We have not seen the audited financial report of the DISCOs to actually know if they are generating enough revenue and if they are running the business at a loss.

CBN recently directed banks to takeover their payments, I don't know the implication of this.

Cyberknight:


https://nerc.gov.ng/index.php/library/industry-statistics/mfi/129-annual-fin-reports

emmanuelewumi:



Thank you.



Just got that of Ikeja Disco

Down is a 5 years summary, this doesn't look like a growing business at all.

Cyberknight:


You said it.
So let's see what it will be like for the year ended December 2021, given the new tariff structure.

emmanuelewumi:
Ikeja DISCO should generate more than N100 billion revenue. More 70% of Lagos population and 90% of Industrial consumption in Lagos are under Ikeja DISCO.

The big manufacturers at Ilupeju, Ogba, Matori, Isolo, Ilasamaja, Ikorodu, Oregun, Ojota, Agege, Ikorodu etc are under them

Cyberknight:


Exactly.
It's the nation's largest and covers one of its most profitable revenue areas.

emmanuelewumi:



There must be a reason why CBN asked banks to be fully in charge of the revenue collections of the DISCOs

emmanuelewumi:


The current managers destroyed value. I don't know the reason why shareholders fund was grossly depleted over the last 5 years.

Lazyyouth4u:

As I said earlier, collections are not growing while operating expenses/interest expenses continue to grow. The huge losses over the five years have depleted Shareholders equity. I personally will not blame the new managers. I cringe to even imagine what the financials would have looked like under NEPA. It is a fundamental issue. The average Nigerian can not afford/is not willing to pay the tariffs that will make it worthwhile for the investors. Go to Ghana and Côte D’Ivoire and see how much they are paying for electricity. It is not cheap.

Cyberknight:


Disagree with the bolded. The same argument for subsidising petrol, while "poorer" countries, with lower per capita pay almost 3 times what we were paying without falling into social chaos.

The italicised is more like it, even though it's partly the government's fault (government as in the continuum) for spoiling the citizenry with freebies, and the citizens' fault for refusing to be weaned off them.

Lazyyouth4u:
Okay that may be true. But would you really call Ghana and Côte d’Ivoire poorer countries when the average Ghanaian and Ivorian are better off than the average Nigerian. I guess that’s another discussion for another day

Cyberknight:


I never mentioned anything about Ghanaians and Ivorians being "poorer" than the average Nigerian.

I made no comparisons at all and, for the record, having travelled extensively in east and west Africa, I would never make such a comparison.

emmanuelewumi:



The signs are all there,we can all see it, just left him to keep on fooling around . But the lady who exposed him should have allowed him to keep on dancing naked for another 2 weeks before the exposure.

I am a pilot.
I export stockfish..
I buy crude oil.
I am a guru in finance and Investment
I want to buy N1 billion worth of Treasury Bills, how can I go about it

That is what I call jack of all trades, master of all

Telsidelake:
Just saw a video from Pastor Chris Oyakhilome talking about Ponzi scheme. For him to deviate to that topic there is fire on the mountain. Perhaps a certain influential member has gone for confession. Or he has received info from insiders in Govt. He is now trying to dissociate himself publicly in preparation for when the bubble burst finally. Hope he has not given this church member award sha o! Those who have ears let them hear.

Godsfavour78:
he is trying to bait people into giving money to invest or do business for them.

gift01:
Just saw the video on YouTube. It's most definitely someone close to him and in his church

Lazyyouth4u:

As I said earlier, collections are not growing while operating expenses/interest expenses continue to grow. The huge losses over the five years have depleted Shareholders equity. I personally will not blame the new managers. I cringe to even imagine what the financials would have looked like under NEPA. It is a fundamental issue. The average Nigerian can not afford/is not willing to pay the tariffs that will make it worthwhile for the investors. Go to Ghana and Côte D’Ivoire and see how much they are paying for electricity. It is not cheap. CIE, the Ivorian electricity company is owned by a private equity firm, Emerging Capital Partners (through its ownership of the parent company, Eranove). Those guys are doing well from that investment.