Minister of Power, Works and Housing, Mr. Babatunde Fashola, on Monday launched 50,000 pre-paid meters in Sokoto state, saying liquidity problem is the biggest challenge in the power sector.
Speaking at the launch of the pre-paid meters in Sokoto, he noted that the liquidity problems manifest in the inability of distribution companies to collect money from subscribers that use electricity that is not measured.
He pointed out that some of the challenges include the inability of the distribution companies to reduce their losses, coupled with the volatile foreign exchange market that make it difficult for companies to plan.
The Minister however, admitted that debt payment and tariff adjustment would not solve the liquidity problems bedevilling the power sector.
He emphasised that maximum collection of bills by the distribution companies was critical in reducing the losses in the power sector.
Fashola posited that despite the problems in the power sector, many opportunities abound for Nigerian businessmen.
“Problems must not define us but it is our response to them that define us. I want to focus on opportunities that such problems present,” he said.