Tuesday, 5 May 2015

Electricity Business Challenges in Nigeria

How can we make this Solar Power solution possible in Nigeria?

Where can the everyday Nigerian get the money for Solar Power generation?

The first thing about a solution is accepting it as a solution. I have gone thru a quiz from friends on how I can recoup my money if I install it for consumer. However, my goal is not to install for a consumer but to install for very Nigerian and African at large.

There is one thing every Nigerian should know, any service rendered or commodity consumed must be paid for, else that service of commodity will cease to exist. Let us take an example, why has NEPA/ PHCN/DISCOs failed to provide power to Nigerians adequately? The answer is simple; most Nigerians prefer to consume electricity from the grid without making any payment.

Initially, it was a problem of lack of electric meters; this made NEPA/PHCN to send out estimated bills to customers. Note the phrase ‘estimated bill’, which customer in his/her right frame of mind will pay for an estimated bill; a customer has to the right to reject any estimated bill as far as he/she does not see the actual bill. Another problem with estimated billing is that the managers at the various distribution centres eagerly manufacture estimated bills for customers without any reference to energy that was supplied to the region they managed.  This coupled with electricity touting led to consumers making  illegal connections, it became a norm to the society, then the DISCO debt recovery agents failed in their duties by taking bribes from consumers and allowing them to use electricity without making any form of payment or having a concrete agreement to make payment.

Furthermore, with illegal connection now the norm, consumers of business categories hardly pay bills. Most welder shops, mechanic shops, barbing saloons, woodwork specialists shops, metalwork specialists shops, ladies’ hair dressing saloons, bukas(mini restaurants), beer pubs, mini guesthouses,  etc, do not have any electric meter installed at their places of businesses. These businesses run mostly of private generators which are fuel expensively, with the illegal connections, they utilise a few hours electricity from the grid; and at the end of the month, the DISCO agents will deliver an enormous energy bill to them - these bills are estimated bills. These businesses already pay a lot by running private generators, these enormous estimated bills without any evidence gets ignored; consequently, ignoring energy bills are now normal in the society.

In addition, even customers that are genuinely billed now ignore energy bills because, there is inadequate supply of electricity and why should one consumer pay when another is enjoying electricity illegally. As a result, when energy is utilised and no payment is made, the utility company NEPA/PHCN/DISCOs will definitely go into extinction like dinosaurs.
Coincidentally, other utility companies that were operated by the government has suffered the same fate – extinction, namely NITEL, NIPOST (operates below it capacity), State Water Corporations, etc. Other potential utility companies such Cooking gas companies, Internet companies are not developing as a result of this problem as well. NITEL was the sole operator of telecommunications in Nigeria prior to the year 2000. Having a telephone at home or in the offices was considered a luxury, less than 20% of the population had telephone at their homes. However, with the advent of GSM which was pioneered by ECONET, the spread of communication gadgets in Nigeria increased. Initially, to obtain a SIM card was expensive, and then came the competition MTN, Mtel, Globacom, Etisalat, and other CDMA networks. This competition eventually lowered the cost of the acquiring mobile phone subscription in Nigeria; now we have nearly 100% mobile subscription for every adult in Nigeria.


Now if there is a solution to telephone subscription in Nigeria, then we can as well develop the solution to the electric energy sector.


What are my ideas.......?

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