Power Sector Loses N113bn As Experts List Challenges.

 Power Sector Loses N113bn As Experts List Challenges.

The nation’s power supply chain has continued to face severe pressures with accumulated debts along with unavailability of Generation, Distribution and Transmission equipment, leading to a loss of N113 billion so far this year. Data from the Power Advisory Team, Office of the Vice President showed that, on the average, the development

stalled the supply of 2,780mw and 3,302mw in the months of January and February, 2019 respectively while the supply of 3,014mw was also stalled in the first 18 days of March, 2019. A breakdown of the losses showed that a total of N41.4 billion and N44.4 billion were recorded in January and February, 2019 respectively, while N27.5 billion was

recorded in the first 18 days of March, 2019. In an email to Vanguard, the Sector Lead, Distribution Power, Advisory Power Team, Office of the Vice President, Morakinyo Beckley, who attributed the losses to some factors, including lack of a cost reflective tariff in the sector, said: “In 2010, when the Federal Government published the

Roadmap for Power Sector Reform, it openly acknowledged that the country’s regulated electricity tariffs were less than 40 percent of the minimum level required for cost-reflectivity. “In Naira terms, the average levelised end user tariff at the time was N8.5kWh (equivalent to just 5.7 US cents/kWh). Tariffs in Nigeria were also far below

the tariffs applicable in all other West African countries.

Ayomide Oyewole

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