There should be policy consistency in power sector –GMD Aiteo

There should be consistency in policy making in Nigeria with regard to the power sector so that there will be continuity in policy so as to allow investors predict the next policy as they are not afraid of taking risks. This will help investors to make decisions along that way.
The GMD, Aiteo Group, Dr. Ransome Owan, stated this while talking to journalists at the Power Conference in Abuja.
He stated that the energy sector is at infant stage in Nigeria so everybody should contribute to solving the problem or assisting the sector to move forward.
Bringing foreign direct investment into the country is very easy according to him but the investors should be assured of free exit whenever they want to move their money back home.
“The issues of forex should be addressed so that those bringing their foreign exchange into the country can access the forex when they decide to move to other countries for investment”.
“Another issue is apathy on the side of the government and also consumer apathy. People are not willing to invest. It should be changed. If you consume power you should pay for the power consumed. Nigerians should pay their bills early and address the issues of liquidity in the sector,” he maintained.
“If the consumer does not pay the discos in full, the Disco cannot pay the Gencos in full and the Gencos cannot pay the gas suppliers in full. The Generating companies are paid less than 22 to 23 oer cent of power generation in a month.
“If we are ready for 24 hour power supply, the solution is ready, we have to pay for the power consumed. The Power sector is at infant stage and needs the support of everybody to grow.
Speaking in the same vein, the Chief Executive Officer, Association of Nigerian Electricity Distributors (ANED)Azu Obaiya said that we must begin to recognize that electricity is a commodity to be paid for. “The investors come in to help the ailing sector, the economic and enabling business environment should be put in place for the business to thrive,” he stressed.
“Pricing is very important in this business. People can always compare the telecom sector with the power sector but you remember that you bought a line for N50,000 when the telecoms started in Nigeria after privatization. Now they come to give the line free. The power sector has not been allowed to grow to that stage,” he stated further.
He said the power sector should be allowed to grow to the point of open competition, adding “when an investor is coming in you cannot tell him that he can only recover 30 per cent of his investment. So, the government should hands off from fixing the price and let the forces of demand and supply to determine the price.”
He maintained that the regulatory environment has not encouraged investment in the sector.