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Generation capacity fell by 5.76% in the past seven days
- Experts decry the state of the sector
- Laud CBN’s implementation of financial discipline
Experts in Nigeria’s energy sector have decried the country’s poor state of electricity supply following a report that showed a 5.76% drop in available generation. According to the Transmission Company of Nigeria (TCN) data, energy generation dropped to 3,933.1MW from 4,173.4MW for the period of 30th May to 5 June.
Experts, however, have commended the Central Bank of Nigeria for introducing financial discipline in the market. The CBN directed Deposit Money Banks (DMB) to take charge of the revenue collection in the industry. This policy has brought about an improvement in the revenue collection of the Distribution Companies (DisCos).
Speaking on the CBN policy, Emeka Okpukpara of Nextier Power said, ”The financial discipline allows visibility of what DisCos are collecting. It allows debts such as generation, services, and other charges to be settled first, before operating expenses”. He further recommends transparency in the revenue collection process to attract investors. ”Transparency in most cases increases trust in a system. Therefore, I would recommend that the collection figures are made public since DisCos are custodians of market funds rather than the owners” he stated.
Kunle Olubiyo, the President, Nigeria Consumer Protection Network (NCPN), while acknowledging the CBN policy, also stated that more needs to be done to improve service quality. ”The decline in service is, however, worrisome for end-user. With more money coming into the sector, there should no longer be an excuse for the sector. No reason for metering for lack of metering”, he said.