Elumelu Calls for Settlement of N50bn Power Sector Debt, Tariff Hike

Tony Elumelu, chairman of the Transnational Corporation of Nigeria, speaks during the Presidential Power Reform Transactions signing ceremony in Abuja April 22, 2013. REUTERS/Afolabi Sotunde

The Chairman of Heirs Holding/Transcorp Power Ltd, Mr. Tony Elumelu, has called for the settlement of N50 billion owed to power sector operators, while also calling for the introduction of a realistic tariff structure, reflective of the current rate of inflation and foreign exchange rate, ThisDay reports.

Elumelu, while speaking Tuesday at a two-day interactive dialogue/workshop on the Nigerian power sector, organised by the National Assembly, said investors in the sector could not be expected to perform miracles, with the N50 billion owed them. Elumelu also cited over-regulation by the government as one of the factors impeding growth of the industry.

“The tariff structure has to be cost-reflective for the sector to work, especially as we are not taking into account the rate of inflation and the exchange rate. The cost of gas also is there and too much regulation is stifling the take off of the privatisation of the sector. The sector must be allowed to flow freely, like the telecommunications sector did before tariffs began to crash years later,” he said.

Source: EnergyMix

 

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