Lack of cost-reflective tariffs discouraging investment in Nigeria’s electricity sector
The lack of cost-reflective tariffs is discouraging investments in the ailing Nigerian electricity sector, a firm involved in power generation in the country has said.
“Azura now owns Tobene 100 per cent,” disclosed Mr Okeke. Before now, the infrastructure was jointly developed by Melec PowerGen and the International Finance Corporation, which held 90 and 10 per cent stakes, respectively. Tobene has a 20-year power purchase agreement with the national utility, Senelec, for the supply of power.”“We won’t state the amount invested as that’s commercially sensitive,” Mr Okeke said.
“We thought the EPC contractor would just move to the next phase without demobilising,” he said. “But because of the Nigerian environment, rather than looking at phase II , Azura is now investing in another country .” Most of Nigeria’s electricity sector was privatised in 2013 but the government still heavily subsidises the sector to cover shortfall resulting from poor revenue collection.Industry operators complain the tariff is low and not cost-reflective. That, as well as energy theft, means DisCos often collect far lower than the invoices for the energy generated by the GenCos, like Azura.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Enugu electricity company arrests 10 suspected vandals - Premium Times NigeriaThe company says it spends millions of naira monthly to replace and repair vandalized facilities
Read more »
Gbajabiamila Seeks Tougher Measures to Revamp Electricity SectorNigeria News - Speaker of House of Rep. Hon. Femi Gbajabiamila has said that the House would ensure that Nigerians get adequate supply for the electricity
Read more »
Akwa Ibom govt throws journalist in jail for taking photos - Premium Times NigeriaThe female reporter was quickly arraigned for taking photos of task force officials raiding a city spot.
Read more »
Premium Times Daily data-react-helmet=trueBreaking news, Investigations, Multimedia, Analysis, Opinion, Business, Sports & more... by Premium Times data-react-helmet=true
Read more »
Premium Times Daily data-react-helmet=trueBreaking news, Investigations, Multimedia, Analysis, Opinion, Business, Sports & more... by Premium Times data-react-helmet=true
Read more »