Frontier Oil Boss Urges NBET, FG to Provide Funding to Power Sector

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The Managing Director and Chief Executive Officer, Frontier Oil Limited, Thomas Dada, has said pipeline vandalism and illiquidity are the biggest problems confronting the power sector.

He said though pipeline vandalism had  taken the sector many steps backwards, the lack of funds due to the huge indebtedness to operators had become worrisome, adding that the government was the biggest debtor. He blamed the electricity distribution companies (DisCos) for the paucity of funds due to the fact that the DisCos neither meter their customers properly nor adequately collect payment of bills from them.

He went on to say that the transmission segment of the power sector value chain is the weakest and also added that the Nigerian Bulk Electricity Trading Plc (NBET) sat on millions of dollars, yet the sector was collapsing. He questioned the reason NBET would not use those funds to rescue the sector, noting that channeling that money into the sector would be ensure that the current problems were slightly alleviated.

 He advised the government to support the power sector for at least 10 years and subsidize it to enable power supply become stable. When consumers get used to stable power supply, the sector could then come up with a tariff hike, he added. He also urged the Federal Government to use the money saved from oil subsidy removal to positively ensure that the power sector is improved meaningfully.

Source : Energy Mix

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