NEWS › Business and Economy
Aliko Dangote asks FG to reverse power privatisation
Jerrywright Ukwu 28 minutes ago 2168
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– Africa’s richest man, Alhaji Aliko Dangote is known for contributing
his own quota to public discourse
– His latest opinion is on the power sector
– He said the power sector privatisation was done wrongly and has
advised the federal government to reverse it
The richest black man on earth, Alhaji Aliko Dangote has suggested that
the power sector privatisation should be reversed, Daily Trust reports.
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Alhaji Aliko Dangote opinion always reverberate around Nigeria and even
beyond
Alhaji Aliko Dangote opinion always reverberate around Nigeria and even
beyond
According to Dangote, the privatisation was done wrongly, adding that
the problems in the power sector has persisted despite the policy which
was initiated by the Goodluck Jonathan administration.
Dangote further stated that the beneficiaries of the privatisation
policy lack understanding of the complexities of the sector.
Dangote made the comments while speaking as a guest lecturer at the
Senior Executive course 38 at the National Institute of Policy and
Strategic Studies (NIPSS), Kuru, in Plateau state.
He spoke on the topic, “Promotion of Local Manufacturing and Poverty
Reduction in Nigeria: The Private Sector Experience and Policy Options”.
He opined that the generating and distribution companies are now holding
the country to ransom because they lacked the requisite expertise to
manage the power situation.
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Executives of some electricity distribution companies at a recent event
in Abuja
Executives of some electricity distribution companies at a recent event
in Abuja
READ ALSO: 200% increase in electricity tariff: Fashola asked to resign
His words: “What government did was to privatise but the privatisation
was done wrongly. People who wanted to buy all these plants, both the
generating and distribution companies, thought that this was another
opportunity like mobile phones, where we have moved from 500,000 lines
in 2000 and in ten years we now have 120million lines.
“Yes it would have been so but these guys, what they did when they
bought these power plants was that they borrowed 90% of the money in
foreign currency. You cannot go and borrow dollars when your base income
is in naira, you will have an issue because your earnings are in naira
you are taking a huge exchange risk and that is what happened today.
“These are guys, with respect to them, when I say guys I don’t mean 100%
of them but the majority of them went in without even understanding
what they are doing and the worst thing for any entrepreneur is to go
into a business without understanding it.”
“If you don’t understand a business no matter how much money they show
you that you are going to make, how much profit, don’t go into where
somebody has to come and sit you down and start explaining because if he
is doing something wrong, you don’t have any way of challenging him.
“If you wake me up in the middle of the night on any of the businesses
we are doing today, even the new ones I will be able to explain it to
you, I know my entry and I know my exit but unfortunately that is what
these guys did and today they are holding the entire nation to ransom,
it is very embarrassing for us.”
“Today, how can we say that we don’t have 300,000 prepaid meters? things
have changed you cannot go and charge a rate and then you have to
follow people one by one to be scheming for them to pay but with a
prepaid meter, once you buy for N10,000 after the N10,000 you have to
remain in darkness so it is not an issue to start chasing people to pay.
And it is also estimated that 30% of the overhead costs of businesses
in the country go into the provision of alternative source of power.
This affects their revenue and profitability.”
“We should be as open as we can if government doesn’t intervene by
taking back these assets and giving them to people who really have money
that they can really inject, we will not be able to deliver on power.
“We should ask, how many people, who and who are these guys that have
actually gone into the power sector then you will know when you see the
quality of people, are they really serious, because they went in to just
make money, power business is not just about money, it is a huge
business when you invest heavily you will reap at the end of the day.
“My own advice is that government should sit down with them and
negotiate the best way out because we need power, we are desperate for
power and if there is no power no growth because if you look at the
medium and small industries, most of their income goes into buying
diesel or petrol to generate power and that shouldn’t be the case.”
Dangote’s comment is coming six months after former Vice President,
Alhaji Atiku Abubakar, gave the federal government a similar advise.
READ ALSO: SAD! Nigeria’s power generation reduces to 3,531 megawatts
[SEE GRAPHS]
In November 2013, five Generation companies (Gencos) and 11 Distribution
companies (Discos) were handed over to private investors with 60 per
cent stakes in the former Power Holding Company of Nigeria (PHCN)
utilities.
The firms assured of metering electricity consumers and significantly
reducing the collection and technical losses in the sector within five
years.
Many analysts however said the companies have not lived up to the
expectations of Nigerians since they bought the former PHCN utilities.
Meanwhile, the Association of Nigerian Electricity Distributors (ANED)
has denied rumours that there are plans to increase electricity tariff
again.
The electricity distributors say there is no such proposal with the
Nigerian Electricity Regulatory Commission (NERC) and that the rumours
are false.
by Taboola
Sponsored Links
You May Like
Read more: https://www.naij.com/1026591-dangote-spits-fire-asks-federal-government-reverse-power-privatisation.html
Ondo residents protest
against Jimoh Ibrahim
NEWS › Business and Economy
Aliko Dangote asks FG to reverse power privatisation
Jerrywright Ukwu 28 minutes ago 2168
Share on Facebook
Share on Twitter
Send email
– Africa’s richest man, Alhaji Aliko Dangote is known for contributing
his own quota to public discourse
– His latest opinion is on the power sector
– He said the power sector privatisation was done wrongly and has
advised the federal government to reverse it
The richest black man on earth, Alhaji Aliko Dangote has suggested that
the power sector privatisation should be reversed, Daily Trust reports.
Share on Facebook
Share on Twitter
Alhaji Aliko Dangote opinion always reverberate around Nigeria and even
beyond
Alhaji Aliko Dangote opinion always reverberate around Nigeria and even
beyond
According to Dangote, the privatisation was done wrongly, adding that
the problems in the power sector has persisted despite the policy which
was initiated by the Goodluck Jonathan administration.
Dangote further stated that the beneficiaries of the privatisation
policy lack understanding of the complexities of the sector.
Dangote made the comments while speaking as a guest lecturer at the
Senior Executive course 38 at the National Institute of Policy and
Strategic Studies (NIPSS), Kuru, in Plateau state.
He spoke on the topic, “Promotion of Local Manufacturing and Poverty
Reduction in Nigeria: The Private Sector Experience and Policy Options”.
He opined that the generating and distribution companies are now holding
the country to ransom because they lacked the requisite expertise to
manage the power situation.
Share on Facebook
Share on Twitter
Executives of some electricity distribution companies at a recent event
in Abuja
Executives of some electricity distribution companies at a recent event
in Abuja
READ ALSO: 200% increase in electricity tariff: Fashola asked to resign
His words: “What government did was to privatise but the privatisation
was done wrongly. People who wanted to buy all these plants, both the
generating and distribution companies, thought that this was another
opportunity like mobile phones, where we have moved from 500,000 lines
in 2000 and in ten years we now have 120million lines.
“Yes it would have been so but these guys, what they did when they
bought these power plants was that they borrowed 90% of the money in
foreign currency. You cannot go and borrow dollars when your base income
is in naira, you will have an issue because your earnings are in naira
you are taking a huge exchange risk and that is what happened today.
“These are guys, with respect to them, when I say guys I don’t mean 100%
of them but the majority of them went in without even understanding
what they are doing and the worst thing for any entrepreneur is to go
into a business without understanding it.”
“If you don’t understand a business no matter how much money they show
you that you are going to make, how much profit, don’t go into where
somebody has to come and sit you down and start explaining because if he
is doing something wrong, you don’t have any way of challenging him.
“If you wake me up in the middle of the night on any of the businesses
we are doing today, even the new ones I will be able to explain it to
you, I know my entry and I know my exit but unfortunately that is what
these guys did and today they are holding the entire nation to ransom,
it is very embarrassing for us.”
“Today, how can we say that we don’t have 300,000 prepaid meters? things
have changed you cannot go and charge a rate and then you have to
follow people one by one to be scheming for them to pay but with a
prepaid meter, once you buy for N10,000 after the N10,000 you have to
remain in darkness so it is not an issue to start chasing people to pay.
And it is also estimated that 30% of the overhead costs of businesses
in the country go into the provision of alternative source of power.
This affects their revenue and profitability.”
“We should be as open as we can if government doesn’t intervene by
taking back these assets and giving them to people who really have money
that they can really inject, we will not be able to deliver on power.
“We should ask, how many people, who and who are these guys that have
actually gone into the power sector then you will know when you see the
quality of people, are they really serious, because they went in to just
make money, power business is not just about money, it is a huge
business when you invest heavily you will reap at the end of the day.
“My own advice is that government should sit down with them and
negotiate the best way out because we need power, we are desperate for
power and if there is no power no growth because if you look at the
medium and small industries, most of their income goes into buying
diesel or petrol to generate power and that shouldn’t be the case.”
Dangote’s comment is coming six months after former Vice President,
Alhaji Atiku Abubakar, gave the federal government a similar advise.
READ ALSO: SAD! Nigeria’s power generation reduces to 3,531 megawatts
[SEE GRAPHS]
In November 2013, five Generation companies (Gencos) and 11 Distribution
companies (Discos) were handed over to private investors with 60 per
cent stakes in the former Power Holding Company of Nigeria (PHCN)
utilities.
The firms assured of metering electricity consumers and significantly
reducing the collection and technical losses in the sector within five
years.
Many analysts however said the companies have not lived up to the
expectations of Nigerians since they bought the former PHCN utilities.
Meanwhile, the Association of Nigerian Electricity Distributors (ANED)
has denied rumours that there are plans to increase electricity tariff
again.
The electricity distributors say there is no such proposal with the
Nigerian Electricity Regulatory Commission (NERC) and that the rumours
are false.
by Taboola
Sponsored Links
You May Like
Read more: https://www.naij.com/1026591-dangote-spits-fire-asks-federal-government-reverse-power-privatisation.html
