- Nigerians to pay more for electricity
- States, firms may take over distribution
Under the initiative, electricity tariffs are to be hiked while state and local councils as well as the private sector are being wooed to take over the generation and distribution of electricity nationwide.
Minister of State for Power, Mr. Nuhu Wya, who hinted of the presidential directive yesterday in Abuja, said the decision to raise electricity tariffs was to make the sector more competitive and attractive to local and foreign investors.
He said as part of the reforms, “Nigerians should be prepared to pay more to enjoy stable electricity, which government has promised.”
In a chat with reporters in Abuja, Wya was categorical in warning that it would not be “business as usual” as Nigerians would have to pay the right price to encourage investors to stake their resources in the sector.
His words: “The issue is this: You have to be ready to pay for services rendered. If you are in a place generating electricity for N10, you cannot sell for N6. If you do, the operator would not be empowered to maintain the system. The cost of the power we use is far cheaper than the cost of production.
“I will say that Nigerians should roll their sleeves and prepare to pay for electricity so that electricity would energize our economy and make us richer people and better people. That is why we must review tariffs to reflect the actual cost of generating and distributing electricity.
Meanwhile, the Federal Government is luring states to take over the investments, control and management of distribution networks in their domain.
The minister, who spoke earlier at a workshop on rural electrification and renewable energy in Abuja, stressed that the government could not solely met the electricity demand of Nigerians. He berated past administrations for failing to vigorously take up investments in the power sector.
According to him, “we are already in discussions with some state governments. We are also partnering with them in the areas of generation and distribution. We see no reason why state governments and the private sector cannot partner with us in these areas. After all, they are the users of this network. They are the beneficiaries. They will manage it much better if it is in their hands. We are in top discussions with some of the state governments at the moment to ensure that they participate in the distribution of electricity to our people.”
He continued: “The Federal Government of Nigeria is ready to partner with anybody: The local governments, the private sector, states, our international partners and others that are ready to put light at the doorstep of Nigerians. We all believe and we know that no meaningful development can take place without electricity. We can create a lot of wealth and reduce rural-urban migration.
“Despite the vast resources of this nation, we have not been able to put our heads together to use it. This nation is so blessed with many resources at all levels, at all locations.
He added: “The President has directed that the reforms should commence immediately and actions are on in that regards. We are already putting machineries in the place to ensure that we remove all the obstacles. Whoever wants to venture into investment in that area would be encouraged to ensure that it is not business as usual.
“There are so many international investors that want to come and develop the sector, but because of the unfavorable situation that they find, they have been discouraged all these while.”
From Emeka Anuforo, Abuja
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