FIXING THE ELECTRICITY CRISIS

The Nigerian power sector is currently dealing with a lot of challenges from gas-line sabotage, generation inadequacies, transmission inadequacies, distribution network challenges and all the way to billing. These are not necessarily issues which cannot be dealt with but we also suffer the challenge of financing. Local finance sources are inadequate and the cost of international financing is spiralling out of our control with the dollar getting more expensive by the day.

Simply put, our financial sector cannot fund the power sector or will not fund the sector especially as customers who have been failed by NEPA/PHCN for years will not pay for services which they have otherwise gotten for next to nothing. The increased cost of foreign exchange has also increased the cost of investments in the sector as we do not manufacture any of the materials used connections in the sector. This prevalent refusal to pay or bribe utility staff to stay connected further reduces funds which are available to the companies through bill payments.

I believe that the solution is through strategic customer analysis which will assess customer groups and determine what they can afford to pay and for what level of service they will be seen to be satisfied. We need to invest in alternative sources which will be funded through what exists in the financial sector to provide these services.

Let me be clear, if Mr Amah sells solar panels and inverters, it will cost Mr Chinedu about N700 000 to provide enough power through solar energy souurces to support his epileptic supply from the grid. Bank of Solar can fund the N700 000 needed for Mr Chinedu's alternative supply while his utility company charges +X every month on his post paid or pre-paid payments to cover the cost of that service.

If every customer who is willing to pay for the service is connected through small solar installations or local grid banks, we will have more people happy with their service providers, more money running through the system as more materials can be financed through institutions and our service industry will grow accordingly.Think about it. 

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