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Nairaland Forum / Nairaland / General / Politics / NERC To Sell Kaduna Electric Over N110 Billion Debt (5362 Views)
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NERC To Sell Kaduna Electric Over N110 Billion Debt by treesun: 8:09am On Jan 09 |
The Nigerian Electricity Regulatory Commission (NERC) has put up for sale the sixth largest power distribution utility over a N110billin ($130 million debt), less than two years after the lenders who took over the company failed to turn it around and make it profitable. https://dailytrust.com/fg-to-sell-kaduna-electric-over-n110bn-debt/ 2 Likes
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Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by adesegun121(m): 8:10am On Jan 09 |
Imagine 110billion debt 1 Like |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by Evolutionism: 8:16am On Jan 09 |
Okay |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by nairalanda1(m): 8:17am On Jan 09 |
This is what happens when government controls prices and pays and subsidy. Debt results Says so in the article. Sub economic tarrifs. That means that government forces the discos to charge prices below the production cost, which in turn forces them to operate at a loss. And then they find it difficult to pay loans , hence the lender taking over. But because of sub economic tarrifs, the companies cannot make a profit. So despite the new management, the companies lose money Moral of the story is electricity is not cheap. It has to be priced appropriately to make a profit. 15 Likes |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by tnerro1(m): 8:17am On Jan 09 |
Abokii no dey pay nepa bill, were him see work to pay bills, invest in that region at ur own risk☹️ 17 Likes 2 Shares |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by aceman88(m): 8:17am On Jan 09 |
The irony is that, over there, the monthly electricity bill is strange to most of the locals, almost non existent, they believe it is the duty of government to pay for their basic utilities, and this is a region that enjoys nearly 24 hours power supply everyday; whereas, most households in the southern region pay between 5k to 10k monthly for electricity bill and most of the places don't enjoy up to 5 hours of electricity supply everyday. Nigeria is such an irony. 35 Likes 2 Shares |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by NetBizguy: 8:17am On Jan 09 |
H |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by Stevengold(m): 8:18am On Jan 09 |
one of the importance of taking over a company like this is to rigorously drive revenue, the company didn't do well. When Port Harcourt Electricity Distribution Plc started, people hated then cuz they made sure all efforts was thrown at generating revenue and protecting it, PHED stands out as one of the best Electricity company in Nigeria today. A company that generates 6billiom monthly as KEDC should be able to clear its debt in 3 years max. 4 Likes 1 Share |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by Honoredeblazac: 8:19am On Jan 09 |
Government should removed their hands from electricity Kpata Kpata so that private peope will develop and run these things and charge the people what they want. Those Igbo men running fidelity can really turn the place around if they are left to do what they need to do without tribalism. 5 Likes |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by U09ce: 8:20am On Jan 09 |
I was told that the only viable discos are Eko and Ikeja. Even Abuja disco is struggling - due to the neighboring franchise states (Niger, Kogi and Nassarawa). The privatisation of PHCN was ill thought and badly implemented. The power sector is unlike telecommunications where strong competition entrenched fairer prices. The value chain for power sector is longer--the gas supply part of it is dollar dependent. Thus, it's prone to several vagaries. The minimum wage for workers is currently a measly 30k. The average take home of Nigerian families is probably less than 50k monthly. A KWh of electricity is now at least 60 Naira. A modest house spends up to 20k per month for 15 hours of electricity. How do you expect such a family living in penury to pay the power costs? The government needs to get a viable solution to this mess 14 Likes 1 Share |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by nairalanda1(m): 8:20am On Jan 09 |
tnerro1: Not only aboki. All the power distribution companies are struggling to make money because they are broke due to sub economic tarrifs and poor income. North and South. People don't pay for power and even where a meter is available they bypass it. Infact not one of the discos has broken even since 2013. Not one. Plus GSM companies do a roaring business in aboki land. Has something to do with not being able to use a phone till you put money in it plus GSM companies being allowed to set their prices. Discos can't do either. They are forced to operate at a loss, plus some consumers just bypass the meter or refuse to pay for power because it is too 'expensive' 3 Likes 1 Share |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by Yankee101: 8:24am On Jan 09 |
Namadi Sambo and co Collecting revenues and refusing to pay debts They should all be taken back |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by christejames(m): 8:26am On Jan 09 |
Will they collect #150k? I'm being too generous |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by CaptainAyub: 8:28am On Jan 09 |
Hahaha. Word on the street is that only Enugu distribution company,Ikeja and Abuja own are making gains. And we know it's the same IPOB ppl who are still paying bills in Lagos and Abuja distribution companies. 2 Likes |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by Pio44: 8:30am On Jan 09 |
Aboki no need light 1 Like |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by nairalanda1(m): 8:31am On Jan 09 |
Yankee101: The article does not blame refusal to pay debts. They cannot pay debts because thanks to sub economic tarrifs, they cannot make a profit in the first place Then add the fact that a substantial amount of people do not pay for the power they use Plus the disco has been in the hands of the lenders for the past 2 years. Not Namadi sambo. And because of the above they have the same issue I know Corruption is an issue,and am not a fan of our political class, but this is a case of what happens when a company is forced by government to set prices to help the poor. Companies are not charities,they are meant to make money. If they can't,the above results 1 Like |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by nairalanda1(m): 8:33am On Jan 09 |
Pio44: But they use Telco and internet well, because GSM and ISP can set their prices and can thus afford the costs of doing business up north. Disco cannot set its price. That is why all of them are in debt,and when last I checked, the South is not majority Hausa Fulani |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by iwaeda: 8:34am On Jan 09 |
treesun: 99.9% of the money are stolen and in personal purse, yet debt have closed down and people will loose means of livelihoods. |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by IBB007: 8:34am On Jan 09 |
Lol…kaedco that year…a lot of my friends left Unity bank to work there 1 Like |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by nairalanda1(m): 8:35am On Jan 09 |
aceman88: Many Northern areas are also in darkness too. And many southerners do not pay for power and have the same attitude towards paying for power that the North has. Either way, it means that the sector has not been able to make a profit, north or south 2 Likes |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by veekid(m): 8:37am On Jan 09 |
Sell the whole fvcking discos |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by COMPAQ(m): 8:38am On Jan 09 |
Easiest way to solve this electricity liquidity crisis is to have a monthly tiered system whereby those who use less electricity per month pay less and those who use more pay more. In effect, heavy users will subsidize those who pay less. This achieves many things: 1. Subsidy moves from government to those who use a lot of electricity. 2. people are incentivized to manage their electricity usage so they don't fall into the next higher tier. 3. The poor and vulnerable are protected 4. Liquidity and investment in the electricity system will improve. 5. Weighted average costs per kwh still far lower than generator, which can be as much as N500/kwh 3 Likes 1 Share
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Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by MyExpression(m): 8:47am On Jan 09 |
110 Billion Naira accumulated in debt...meanwhile, British American Tobacco just paid 110 billion Naira fine within one week's notice. E no clear 1 Like |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by History555: 8:48am On Jan 09 |
Here in Scotland, if you don't buy units, no light for you. Nigeria should give everyone prepaid meter and imprison those who bypass their meter. In addition govt should subsidise electricity by 50% as per poor country we are. Even fuel is being subsidized 4 Likes |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by nairalanda1(m): 8:49am On Jan 09 |
vowiski: 1. I don't recall abusing you 2. I don't see why you should abuse me 3. I also see that you have no points to refute my comment. 4. Stop acting like a two year old. You are an adult,behave like one. And stop disgracing your parents here. They brought you up better than this. 5 Good morning 3 Likes |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by BOSSkesh(m): 8:49am On Jan 09 |
Tinubu till 2031 |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by nairalanda1(m): 8:50am On Jan 09 |
History555: Government already subsidies power. Severely even. Hence all the discos losing money Plus,paying for a subsidy means money has to be raised for it. And with our very low tax to gdp ratio, that won't be possible |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by TheFacelessMan: 8:59am On Jan 09 |
COMPAQ: The tiered system is an excellent one... but I am not sure Nigeria is ripe for it yet. People will seek ways to bypass or tamper with meters to fall into lower tiers. What I think needs to be done is ensure EVERYONE utilising electricity pays. When incomes rise, then you can start thinking of tiering. See, it is an open secret that some just blatantly refuse to pay despite enjoying light. Let's get them to stay paying for it and revenues will rise. |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by missionmex(m): 9:01am On Jan 09 |
Simply meter everyone and make your money |
Re: NERC To Sell Kaduna Electric Over N110 Billion Debt by MasterJayJay: 9:04am On Jan 09 |
nairalanda1:Your agenda still never change. Do you know that Nigerians pay for blackout? Give every customer a prepaid meter. Is data cheap? But Nigerians are paying for internet data. |
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