Electricity companies explain low electricity supply in the country, while FG removes subsidy completely

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  • Poor electricity supply for Nigerians not likely to improve any time soon, according to latest complaints from power generation companies
  • It has been established that Nigeria needs about 180,000 megawatts for there to be adequate power supply
  • Nigeria is not only producing below capacity, but the federal government has also declared the withdrawal of electricity subsidies, increasing the cost of living for Nigerians.

The Federal Government announced that it had silently removed electricity subsidies and passed the full cost on to Nigerians.

According to the Punch newspaper, the Minister of Finance, Budget and National Planning, Ms. Zainab Ahmed, revealed this during a virtual meeting of the International Monetary Fund (IMF) on the theme: “The political economy of reforms taxes in Africa.

According to her, there are also plans to phase out gasoline subsidies, the Vangaurd has also reported.

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Implications of Persistent Fuel Scarcity on the Nigerian Economy by Jide Ojo

Electricity companies explain low electricity supply in the country, while FG removes subsidy completely
Nigeria’s power stationCredit: Lorian plaucheu

Meanwhile, Generation Company Operators (GenCos) have detailed why Nigeria’s power supply is not improving despite several efforts over the years.

The group says debt owed to it is a major problem, with a total balance of around N1.644 billion since 2015.

DailyTrust reports this massive debt has made it extremely impossible for them to effectively run the national grid, which is now flawed.

Speaking on Sunday March 13, 2022, Dr Joy Ogaji, Executive Secretary of the Association of Electric Power Generation Companies (APGC) Currently the unpaid available capacity charge owed to us by NBET is 1,644,150 billion of naira.

She explains:

“Before the Nigerian Bulk Electricity Trading (NBET) took over payment services for electricity generated and distributed in 2015, the market operator had paid GenCos for their capacity and energy generated since 2013, date at which the sector was privatized based on the privatization agreements until 2014 before NBET took over.”

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End of the fuel shortage? Nigeria now has 1.9 billion liters of gasoline – minister reveals

Ogaji also noted that even the energy load (EC), which averages 4,000 megawatts (MW) per day, is not fully paid to the GenCos, resulting in a shortfall for them to be able to meet their gas obligations and other expenses.

The government explains the low electricity production

The Minister of Energy, Engr. Abubakar D. Aliyu blamed erratic power supply on technical problems and water levels, Channels Tv reports.

The Transmission Company of Nigeria (TCN) also said some units of around 14 GenCos were either out of service or at low output.

Ogaji casting more perspective said:

“The GenCos are supposed to start and stop a maximum of 20 times a year, but in Nigeria, the GenCos start and stop 365 days a year and this wear and tear affects the plants causing maintenance issues at a time when they should be optimal.

“If the network is working efficiently, the thermal should be working optimally and no one should suffer a power outage.

Read also

Nigeria can become a gas-powered economy by 2030, says Buhari Minister Sylva

Nigeria plans to build its first nuclear power plant

Meanwhile, the Federal Government of Nigeria has announced plans to build a nuclear power plant to meet the country’s needs. electrical challenges.

The World Bank recently rated Nigeria as having one of the worst electricity supplies in the world, and the federal government hopes the new plant can change that narrative.

Agreements have already been signed with Russia and Pakistan to train Nigerians in the effective management of the proposed power plant

Source: Legit.ng


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