Opinion

Solutions to Addressing the Challenges of the Power Sector Privatisation, By Odion Omonfoman

The privatisation of the power sector, while transparently conducted, was fraught with a number of missteps and set to go wrong from the start of the process. Four years after, the privatisation has proven to be problematic, and may result in a sovereign debt burden for Nigeria and Nigerians. The…
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Opinion

Privatisation of the Power Sector: What Went Wrong?, By Odion Omonfoman

The privatisation process was underpinned by very optimistic and unrealistic assumptions and promises by Nigerian Electricity Regulatory Commission (NERC), the Bureau of Public Enterprises (BPE) and policy makers. There were also several promises made to investors during the bid stage to incentivise them. Such unrealistic assumptions and incentives In recent…
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Opinion

Eligible Customer Declaration – Matters Arising, By Odion Omonfoman

- Minister for Power, Babatunde Raji Fashola However, the big elephant in the room is how the policy would be implemented, particularly the DUoS for eligible customers at 11KV and 33KV served by DISCOs, as well as the potential revenue shortfall that may further weaken already financially stressed Discos. We…
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Opinion

For Nigeria, Did God Really Say, “Let There Be No Light”?, By ‘Tope Fasua

...I’m not hopeful that we can make the needed change in this matter, to be candid, because Nigeria has never been a truthful country. The darkness we are in is at once a symptom of our dark hearts, as it is a metaphor for the state of our nation. Perhaps…
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Opinion

Remodelling Governmental Intervention in the Nigerian Electricity Market, By Yusuf O. Ali

...it is time for the government to develop a comprehensive and wholly accountable funding programme that will guarantee that the government’s intervention funds are used not only to avert the looming financial disaster but, for a change, to also bring about a financially self-sufficient Electriciy Market in the not too…
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Opinion

Financing Infrastructure Deficit Using a National Asset Trust Programme (2), By Odion Omonfoman

The Economic Management Team headed by the vice president may wish to consider developing a National Infrastructure Asset Trust Programme, as described herein, as a means of attracting private sector capital to finance our infrastructure deficit. It would save Nigeria the loss of national asset should the proponents for asset…
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Opinion

Why the Post-privatisation Era of the Nigerian Power Sector Is Failing to Deliver, By Yusuf O. Ali

NERC has to adopt the suggested nuanced method (or any other one) of making the consumers and investors simultaneously make the tariff acceptance/prompt payment and QoS improvements (via capacity investments) needed from them respectively. I remember the almost unequivocal celebrations that welcomed the successful privatisation of the 16 successor companies…
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Opinion

Why GENCOs Deserve More Attention In the Power Supply Equation, By Joy Ogaji

The worsening market liquidity squeeze has culminated in a situation where the GENCOs lack the necessary funding for their operations, acquiring spare parts and equipment for the power generation equipment. Some GENCOs have not been able to pay their workers for several months. The power sector operates on the tripod…
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Opinion

Show Me the Money: the Nigeria Electricity Supply Conundrum, By Belije Madu

The government of President Muhammadu Buhari is similar to a sprinter required to run the last leg of a relay race, for a Reform process which stared in 2005, with the passing of the ESPR Act, into law. Therefore, it is strongly recommended that the last leg of the race…
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Opinion

Developing A Liquidity Solution For The Nigerian Power Sector (1), By Olayemi Anyanechi

Revenue shortfalls, credit risk and gas supply constraints in the power sector under a transitional electricity market is to be, and was anticipated. Nonetheless, resolving the revenue shortfalls has proved a bit of a challenge, and a long-term and sustainable solution will take time and significant investments by the private…
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