Investors, stakeholders proffer solutions to power sector hiccups in 2018

Investors and stakeholders in the power sector industry say any plans to resolve the never ending challenges of the Nigeria must be back up with seriousness in policy implementation in 2018 for on to work.

They insist that the era where government and its agencies neglect the fundamental aspect of funding in the sector cannot continue in 2018 if there is any hope to make any appreciable headway.

In the previous years, stakeholders regretted the neglect of the power sector by different administrations in the country.

Research has shown that only 20 percent of the cost of power produced across the supply value chain is being paid for. The foreign exchange (forex) challenge also remains a major bottleneck for power investors as a result fluctuating exchange rates which further put the sector into debt.

According to them, “There is need for the Federal Government to address this evident liquidity issues.

Babatunde Fashola, Minister of Power, Works and Housing have at different for a said that the power sector requires stability, specifically as regards the production side of the energy value chain, to really take lift.

The Minister of Power was quoted to have said that giving confidence to investors interested in playing in the sector but who are weary of the serious challenges recovering their investment should be key to what the Federal government (FG) aims to achieve for this industry to move forward.

According to him, “There is no doubt that a lack of investors’ confidence has definitely hampered the expected growth of the sector, as it has been nearly impossible to get new money into the sector.

Ayodele Oni, an energy expert pointed out that Liquidity challenges have proved to be an almost immovable obstacle to the regular supply of electricity. Over N534 Billion in revenue was lost by the power sector.

According to him, “Among the reasons for the loss are shortages in gas supply, frequency and line limitations and water levels management constraints that led to several cases of outage in the country.

Oni further opines that the sector is finding it difficult to access more loans from Nigerian banks due to their inability to meet the payment obligations connected with previous debts. “This situation has also affected the capacity of the power firms to improve on electricity supply to consumers for domestic and industrial uses”

“If this continues in 2018 industries and other users will carry on with the burden of providing own electricity outside the national grid for the foreseeable future”, he said.

Some industry experts have the view that these Discos see themselves as monopolies and run themselves as a private business where they feel they are not required by both law and contract obligations to share information with the regulators.

Discos should be more transparent and the regulators should demand such transparency. If there are claims that the Discos receive revenues and refuse to remit same to NBET, regulators should do more than lip-service to resolve this. The Discos should be held accountable to how much they receive rather than seek for some interventions from the market.

KELECHI EWUZIE