Electricity price will go up, says Minister
By Samuel Ogunsona
The Minister for Power, Adebayo Adelabu, has said Nigerians should be ready to pay more for electricity.
This will come when the electricity becomes more stable.
Adebayo said many Africa countries with stable electricity including Guinea, Togo and Mali pay more than what Nigerias pays.
The Minister who stated this during his visitation to the corporate headquarters of the Ikeja Electric in Lagos said key players in the power supply sector should be ready to create good basis for the removal of electricity subsidy for a cost-reflective tariff.
He expressed fear that quality numbers of power distribution companies are not ready to invest in power infrastructure.
He said, “A lot of our distributors are satisfied with the status quo. There are some high-impact investments you can make in infrastructure that will double your fortune. It translates to increased revenue for you. Some Discos are not ready to put in any money, they are just satisfied getting that their monthly stipend pocket money.
“We will not allow that. That is why we are saying that if by persuasion we cannot achieve it, we will achieve it by legislation. We are looking at capitalisation requirements for Discos, which will compel them to pay more funds.
“Power business is highly capital intensive. It requires a lot of investments and infrastructure, and the investment can never be lost. It will also transform into sales and revenue for Discos. So we believe that our Discos must be ready to invest in high-impact infrastructure,”.
Adebayo also added that Nigerians would pay more on electricity if the government migrate to the full cost-reflective tariff.
“It’s not like we have not experienced this kind of thing before, but the heat is too much now, while petrol and diesel for generators are no longer affordable. People who have been spending N2,000 on fuel now need N10,000. They cannot afford it; so, the noise is much.
“I believe a lot of people will be ready to pay for electricity, whether at the current tariff or an increased tariff because ultimately we are going to migrate to the full cost-reflective tariff. Over the next three years, we should migrate. The government cannot continue to subsidise the cost of electricity
“Guinea, Togo, Mali, Ivory Coast, and all the neighbouring countries that we have that are supposed to be poorer than Nigeria, they pay more than double what we pay here. I believe that our people will be ready, once they are sure of reliable and consistent supply.,” he added.
