Thread by @Endurance_Agbor

@DrJoeAbah @eyooekpo @SamAmadi @tundefashola The key to resolving our palaver is introducing cost-reflective tariffs, & reducing ATC&C losses to the barest minimum. Discos are running at a huge loss. Say it costs them N65 to generate 1kwh of electricity, the MYTO mandates that they sell same to some of us at under N30.

@DrJoeAbah @eyooekpo @SamAmadi @tundefashola Imagine it costs you N65 to provide a service, and you have to sell the same service to clients for N30, you'll close up shop in no time. Unfortunately, it isn't as if the FGN is subsidising these losses. In fact, FGN MDA debts alone to Discos stands at over N20b.

@DrJoeAbah @eyooekpo @SamAmadi @tundefashola Unless the market is allowed to operate on a "willing-seller, willing-buyer" model, we will keep having these issues. As it stands, Discos have a tariff shortfall of N400b. As a result, they can't pay TCN or Gencos. And Gencos in turn can't pay their gas suppliers.

@DrJoeAbah @eyooekpo @SamAmadi @tundefashola What this simply means is that the highly needed investment in power infrastructure cannot be done as the funds for doing so are unavailable. Some hold that about 1GW of power is required per 1m people (arguable). By this standard, we should be generating at least 180GW daily.

@DrJoeAbah @eyooekpo @SamAmadi @tundefashola Unfortunately, our current generation capacity is under 13GW, leaving a shortfall of at least 167GW (going by our assumption). No be sey we dey generate up to this capacity sef. Our generation typically peaks at around 4-5 GW.

@DrJoeAbah @eyooekpo @SamAmadi @tundefashola Because of inadequate transmission & distribution infrastructure, we still lose some of this 4-5GW along the way before it gets to the end-use consumers.

Unfortunately, for us to get the kind of power supply we desire, we suppose sha dey ready to pay for am o.

@DrJoeAbah @eyooekpo @SamAmadi @tundefashola Sadly, power has a political context. We as a people see it as a public service, and not as a business that should be profitable for the players. So the powers that be dare not tamper with the tariffs if they do not want to become unpopular or lose the next elections.

@DrJoeAbah @eyooekpo @SamAmadi @tundefashola My story is no news to the players within the sector. So we may go on to spend public resources on fact-finding expeditions, but the fact simply is, the sector has liquidity issues.

If the sector is deregulated, it may bite us for a bit, but it would ultimately get better.

@DrJoeAbah @eyooekpo @SamAmadi @tundefashola On a final note, this is your conscience speaking.😂

I want light, I want light, but you dey bypass metre; you dey shake ladder when "NEPA" pipu don climb pole finish; you dey on everything for house just to show sey you get light because you no get prepaid metre.😂

Think am o!

@DrJoeAbah @eyooekpo @SamAmadi @tundefashola The use of "generate" in this statement is an honest mistake. The statement is simply illustrative of the difference in the cost of power to Discos and the price end-use consumers are expected to pay under the MYTO.