Why Nigerians must pay higher electricity tariff

Yemi-Osinbajo (1)
Nigeria Vice President, Yemi Osinbajo

Vice President Yemi Osinbajo on Monday said payment of high electricity tariffs is inevitable for Nigerian electricity users.

Mr. Osinbajo said this while speaking at the Sixth Presidential Business Forum held at the old Banquet Hall of the Presidential Villa, Abuja.

A statement signed by Laolu Akande, the vice president’s media aide, quoted Mr. Osinbajo as saying that the government is, however, trying not to increase electricity tariff for now.

“Listening to questions concerning lower tariffs, we must pay higher tariffs, these sorts of things are inevitable,” Mr. Osinbajo said.

“What we are trying to do is not increase tariffs for now, but how we can ensure we clean up the entire value chain. I’m sure you are aware of the Payment Assurance Guarantee which we put in place for over N700 billion to ensure gas is paid for and for liquidity in the whole value chain.

“Today, we will be meeting with the World Bank on a scheme they have been working with us on to fund the entire value chain, and ensure we transit smoothly from where we are, to a much more market-determined policy for electricity. This will involve a fair amount of subsidy and help, the Federal Government and World Bank are working together on that. There is no way of sustaining the current subsidies long term, but we want to ensure the process is smooth.”

Mr. Osinbajo explained that President Muhammadu Buhari has directed that a small committee to look at the issue of intervention funds in agriculture be set up, adding that government would ensure that the agricultural intervention funds go to the right people and also monitor the use of the funds.

Commenting on the gridlock in Apapa port, Mr. Osinbajo said that the port is meant to be a 34 million metric tonnes capacity port but it is doing 80 million metric tonnes, making it a port far too small for the size of business it is doing.

“We have met with all of the important stakeholders, asides from those who do their business there like Flourmills, Dangote and BUA. We have also met with the Navy, Police, NPA, Lagos State Government, all federal agencies working in the ports and port concessionaires.

“At our last meeting, we worked on a number of initiatives and agreed on a number of things that have to be done. I went personally to see for myself what was going on in the port area. There is a major problem there, but everyone has agreed on what to do and there is a plan which we are executing. Nothing would happen overnight, but we have a good plan that will make it work.

“We have taken a number of decisions; empty containers are to be relocated to holding bays, shipping companies would no longer be allowed to operate holding bays within the port, tank farms would not to be permitted within the Apapa area and process licensing access to trailer parks by NPA to commence. A task force has been set up to manage traffic within the Apapa and Tin Can Island environs.

”We agreed that Dangote Group will carry out palliative works and reconstruction of some major sections of the Apapa road, which is expected to be completed by June 2018. Procurement processes have also been concluded for construction of Liverpool road to Tin Can, to Mile 2, Oworonshoki up to the toll gate. The Honeywell Group has committed to construct a trailer park, they have started and will complete it very shortly. BUA Group agreed to do the works around the Tin Can Island road. We have it in hand, and we are watching and following up on it.”

The Vice president also assured that government would address the problem around smuggling and what to do when supply does not meet demand. He said there is a huge demand for poultry and despite local production, people are still buying imported poultry.

He said, “Smuggling is a serious threat to our economy, and Mr. President has asked me to head a team to work out what needs to be done. We are making the point to our neighbours, that smuggling is an existential threat, we can’t permit the level of smuggling going on.

“Last year, there was over 500,000 metric tonnes of rice around Christmas, which the Minister of Agriculture told us about and how it came in through one of our neighbours, but we blocked it.

“Now, three shiploads of rice have left Thailand, 120,000 metric tonnes, going to this same neighbour of ours who have very large warehouses where they store this rice. It is very clear that this rice is for us because our neighbours don’t consume parboiled rice, they consume the white broken rice. It is clear that our neighbours do excellent business, with allowing rice to come into Nigeria and other products including poultry

“I think it is important for us as a country, to make the point clear, that we are not going to accept that. We are all within the same economic zone and work together, so we go in a friendly and polite manner as possible, to ensure that this practice stops.”

The Vice president also reiterated the importance of private sector leadership to the nation’s economic policy, adding that government has tried to establish several public – private sector platforms including the quarterly business forum.

“The constant engagement in my view is the way to go. If we continuously engage and interact this way, we will resolve most of the problems that stand in the way of our becoming the great economy that our country surely has the potential to be,” he said.


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  • KELLOGGS

    Considering that the job of a vice president is to attend funerals and deliver bad news, Osinbajo is doing a heck of a job.

    • Julius

      Thank you…u da man !!

  • TAWANDA INCOMMUNICADO

    There he goes again, they use this man to disseminate the worst news to Nigerians, if he is not playing fall guy protecting NNPC contract scammers , he is busy telling us why we must pay higher bills for the most erratic and atimes non-existent power supply on the African continent.

    The way this man has degraded himself is alarming, he has no respect for truths yet he is clergy, he shows no compassion yet he is clergy, he serves in a regime of blood-bath and no regards for human rights yet he is a lawyer , in fact the man’s decent to a mere robotic lackey of the Hausa-Fulani is pathetic .

    • Julius

      There was an election in Anambra, Buhari was in Igbo land and well received. He was back in Abuja safe and sound. You following me ? Remember what you predicted on both ?. Wetin shele ?

    • Daniel

      Which worse news except maybe your brain can’t comprehend the message. If past government had as much attention to details Nigeria will have move d forward

      • JOHN

        GEJ government completed ten power generating stations with capacity for about 5,709 megawatts and started the Mambilla Hydro plant. It is wickedness to ignore and lie about the unique achievements of the last government which include growing the economy at an average of 7% per annum acknowledged empirically all over the world. So shut up because you are clueless.

  • Dr Pat Kolawole Awosan

    Vice-president Yemi Osinbajo, must base his utterance to advise Nigerians, to be prepare to pay higher electricity bill when Nigeria power producing entities were able to supply regular and uninterrupted electricity supply to every house-hold and business entities .Definitely, Nigerians, shall be prepare to pay for regular without outage the regular supply of electricity in Nigeria, as importers of generating plants would be sacked from operating and pollution of our environmental atmospheric space.
    In-addition, my personal advice, to vice-president Yemi Osinbajo and president Muhammadu Buhari, is to instruct presidential aid to the National Assembly, to prepare a bill that would permit each state, and Abuja-FTC. to commence the development of solar-energy plants and wind-mill projects in each state as Nigeria, appears to be backward in the widespread nations around the globe-which embarked upon the massive development of solar-energy plants and also development of wind-mill power production in each state, and FCT-Abuja, in order to supplement the electricity generation and production in Nigeria.Civilize societies are now developing renewal-energy projects as the future of energy production would not rely exclusively on fuel and diesel oil as renewal-energy technology development continues to progress towards positive end result.

  • Epsilon_Delta

    What the heck, I stopped paying for electricity months ago. NEPA is free to come and take their wires. I can’t be paying for one hour of electricity a day!

  • Kareem Raji

    Instead of dashing bailout and paris club to governors for election, if buhari were serious he would have used it for intervention in critical sectors like agriculture. The hypocracy bubu is supervisjng is sickening

  • JOHN

    It is a crime to suggest or accept any suggestion of increase in electricity tariff in Nigeria as at today. The current situation where the discos arbitrarily, fictitiously, corruptly, fraudulently overestimate electricity bills and compels consumers to pay for this criminally overestimated bills is criminal and must be rejected by all and sundry. The discos have not committed any resources to enhance power distribution in all cases. Take the situation where the actual consumption of a consumer is about 30 units a month and he is fraudulently overestimated 450 units a month which is fifteen times his actual consumption and the Vice President want to increase this burden instead of the government to ensure that this corporate stealing stops. Mind you the discos have just been illegally milking consumers with reckless impunity. When they acquired these assets in 2013 at a give away prices of about 20% of the market value, even the disputed bills of PHCH was illegally carried forward by these thieves and consumers were compelled to pay it to these discos, the entire amount standing was even higher than what the so call investors paid for the discos. Check your areas, you will discover that no new transformers, electric poles and cables have been added. Even in my area of Mowo Kekere in Ikorodu, only on very faulty transformer serves over 639 houses resulting in constant breakdowns. There was not a blink of light for straight three months from June to September, 2017 and yet they brought their fraudulently nonexistent overestimated bill of average of 420 units for each houses. This is the worst level of corporate stealing. Now they are doing one day on and one day off in epileptic power supply. There is the rumours that they share this stolen money with NERC and senior government officials, may be that is why the VP is talking about increased tariff. The only solution is for government to direct that consumers should no more pay for any so call estimated bills and direct the discos to immediately install prepaid meters to all consumers while obliterating the non existent bills. The discos should be made to be responsible and the government have a higher role to play in this.

    • JOHN

      It is clear that the President, VP and Fashola do not know much about the power situation in Nigeria. It will serve them better to seek the opinion of those that are being cheated by the discos before they approve the lies and deception of the discos. And even before they make any policy or public pronouncements on power and its ancillaries.

      • marcos avelino

        Do you know more than the expert practitioners in the field ?

  • kayode Olufade

    The truth is, without regular and constant supply of electricity we will continue to be a mono-product economy; always relying on oil money! What the government should make sure of is effective metering! Make sure every consumer is metered so we are charged for what we actually consume. Also, eliminate monopoly the distribution companies have per state/region. Let the discos operate in every state, this will ensure competition and eventually reduction in prices.

  • Sheikh Messi

    Hahahaha!

    “My father laid on you a heavy yoke; I will make it even heavier. My father scourged you with whips; I will scourge you with scorpions.'” – 1 kings 12:11

    Na the summary of the APC magical change be dat!
    Hahahaha! I dey laff ooOoo!!!

    • marcos avelino

      Who wants to hear from Hebrew history of massive violence in that bible of yours like the genocidal slaughtering of 180,000 amalekite souls with blades in a single day who needs to hear scourging with scorpions nonsense

      • Sheikh Messi

        You call it nonsense huh? IS BUHARI NOT SCOURGING NIGERIAN MASSES WITH SCORPIONS???
        Keep off my comments if you hate the Bible so much..FUNDAMENTALIST!

  • thusspokez

    “Last year, there was over 500,000 metric tonnes of rice around Christmas, which the Minister of Agriculture told us about and how it came in through one of our neighbours, but we blocked it.”

    “Now, three shiploads of rice have left Thailand, 120,000 metric tonnes, going to this same neighbour of ours who have very large warehouses where they store this rice.”

    There is a nice way to ask the aforementioned neighbour to stop and a not-so-nice way to stop it. The latter would require the service of arsonists.

  • Oskirin

    vp….stop ds if na play.u need to go to ds hinterlands to see how people dey suffer 4 light…

  • FreeNigeria

    “Now, three shiploads of rice have left Thailand, 120,000 metric tonnes, going to this same neighbour of ours who have very large warehouses where they store this rice. It is very clear that this rice is for us.” if we produce the same quality at the same price, there won’t be need to buy foreign rice.

  • newday

    Where’s the electricity in the first place? where is it?

  • lawal sani kona

    For Nigerians to reap the value of their hard earned money,there is the need for open and transparent accountability from the power companies and every citizen must be issued a prepaid meter. this is because the electricity sales agents abhor the use of the prepaid meter.

  • Paying high tariff for services not rendered is tantamount to CORRUPTION.