FILE PHOTO
A former Commissioner, National Electricity Regulatory Company (NERC) has said that there is no shortage of electricity in Nigeria but the power sector lacks a power delivery model.
Mr Eyo Ekpo made this assertion during the European Business Chamber (EuroCham Nigeria) Stakeholder Conference on “Gaining Traction in Power Sector Reforms.”
The lawyer and energy policy specialist explained that Nigerian homes and businesses provide themselves 10 times more electricity through petrol and diesel generators than the country’s electric power companies supply them through the national grid, thus noting that the real problem with the power sector is that country is stuck with a power delivery model that is extremely costly and inefficient.
“Nigerian homes and businesses produce 40,000 megawatts of electricity with diesel and petrol generators daily while they are supplied only about 4,000 megawatts through the national grid.”
Ekpo likened this to “burning money” because of the N40 per kilowatt per hour difference between the cost of self-generated power (about N130 per kilowatt-hour) and grid power (N90 per kilowatt-hour).
He calculated that Nigerians “waste” N12 trillion every year, considerably higher than the national budget, by self-provision of power with backup generators rather than being supplied from the national grid.
Ekpo criticised the decision of the government to hold down power tariffs, saying that “Nigerians want a reliable supply of electricity through the national grid, Nigerians do not want low tariffs for grid-supplied power.”
He explained that the government’s decision to keep power tariffs low condemns Nigerians to perpetual dependence on “extremely expensive” backup generators as it starves the power sector of critical investment. Nigerians will not have a reliable supply of cheaper electricity from the national grid until investors see a tariff that can cover the cost of the investment required to provide it.
The EuroCham conference was organised to galvanize policy reforms that will unlock investment in Nigeria’s power sector and deliver a stable electricity supply to Nigeria.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
We Have Not Had Water Supply In Months ― Abeokuta Residents
In spite of the huge investment in the water sector by the government and international organisations, water scarcity has grown to become a perennial nightmare for residents of Abeokuta, the Ogun State capital. This report x-rays the lives and experiences of residents in getting clean, potable and affordable water amidst the surge of COVID-19 cases in the state…Nigeria has no electricity Nigeria has no electricity
Selfies, video calls and Chinese documentaries: The things you’ll meet onboard Lagos-Ibadan train
The Lagos-Ibadan railway was inaugurated recently for a full paid operation by the Nigerian Railway Corporation after about a year of free test-run. Our reporter joined the train to and fro Lagos from Ibadan and tells his experience in this report…Nigeria has no electricity Nigeria has no electricity
Minister of the Federal Capital Territory (FCT), Nyesom Wike, has reiterated that the two new…
The charges follow two alleged incidents involving two separate women at the Groucho Club in…
House of Representatives on Tuesday, rejected a bill seeking to amend the 1999 Constitution of…
The lawmaker, however, said that the Inter-University Centres, which are established by Acts of the…
The two women, both part of the production team, said Depardieu groped them during filming.…
The Brain Builders Youth Development Initiative (BBYDI), with support from the Nigerian Youth Futures Fund…
This website uses cookies.