info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
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Nigeria’s average electricity tariff drops by 48% in four years to 8.10 cent per kilowatts hours, kWh, from 15.67% recorded in 2014.
The World Bank stated: “Between 2009 and 2014, rapid movement towards cost reflexivity were made such that by 2014, the average end-user tariff in Nigeria was close to the median for other West African countries.
“However, between 2015 and 2018, Nigeria’s tariff collapsed and its average end –user tariff fell back to less than 40 percent of the median for West African region.”
It stated that despite best intentions by the Federal Government ‘to bridge the gap through privatisation and other measures, insolvency crisis continue to hit the operations of stakeholders, including the Electricity Distribution Companies, DISCOs, to Transmission Company of Nigeria, TCN, to Electricity Generation Companies, GENCOs, to gas production and transportation entities.
The Executive Secretary, Association of Power Generation Companies (APGC), Dr Joy Ogaji, stated that, despite privatization, debts in the sector keeps mounting on daily basis due to several irregularities.
She said: “Lack of adherence to contracts running the market is a major impediment to the growth of the sector. There is no sanctioning of defaulters. There is need for regulatory agencies to ensure that all sector players are adhering to terms and conditions of contracts.
“Poor revenue collection by the DISCOs is a major concern to the sector, thus, making it difficult for GENCOs invoices to be settled accordingly. Also, the inability of the transmission and distribution networks to take power to the consumers is a challenge. This has resulted in frequent system collapse and load shedding as the grid cannot conveniently take over 4,500 megawatts, MW, without dropping load.”
