The Minister of Power, Works and Housing, Mr. Babatunde Fashola, yesterday said of all the challenges confronting Nigeria’s electricity supply market, chronic illiquidity was still top on the list.
Fashola also said increasing electricity tariffs of consumers and demanding for clearance of debts owed the electricity distribution companies (Discos) alone will not solve the sector’s financial problems. Fashola stated that the inability of the 11 Discos to take enough revenue from electricity consumers in the country, and reduce their collection losses were hugely impacting on the sector’s monthly financial outlook. He said prompt and maximum collection of revenues from adequately metered consumers would go a long way in addressing the financial problems.
Speaking, Fashola also said the country’s current foreign exchange (forex) regime was affecting the operations of the sector. He however explained that such financial challenges offer operators in the sector the chance to creatively find solutions instead of looking for easy ways out. The minister equally asked that operators in the sector begin to look inwards to get equipment they need to operate from local manufacturers instead of relying on importation which he said places immense pressure on the country’s foreign reserves.