President Muhammadu Buhari said that the tariff deficiencies in the power sector are no longer affordable for the federal government to bear.
Buhari said this on Thursday, Nov 26, at the inauguration in Lagos of the Supervisory Control and Data Acquisition-Distribution (SCADA) Management System Centre of Eko Electricity Distribution Company.
Buhari, represented by Mr Sale Mamman, Minister of Electricity, said the SCADA system would help EKEDC track and respond more rapidly to faults and reduce failure times, thus enhancing the quality of customer service.
He added that his regime remains committed to solving liquidity problems that adversely impact the competitiveness of the power sector.
“The increased fiscal burden on the Federal Government caused by the tariff shortfalls in the sector, which are no longer sustainable, has been noted with grave concern,” he said.
He said the Power Assistance Fund of the Central Bank of Nigeria aimed at supporting tariff shortfalls could no longer be expanded and would be phased out to facilitate the financial independence of the industry.
We are also aware that these tariff shortfalls sit on the books of Discos and hinder their ability to collect money and spend,” Buhari said.”
“Through various programmes, such as the National Mass Metering Programme, the Siemens AG Power Project and the World Bank Distribution Sector Recovery Programme, etc the Federal Government is working hard to address these financial and fiscal challenges.”
He emphasized the need to ensure coordination of the capability and attractiveness of investment through the value chain of the power sector’s generation, transmission and distribution components.
The President said the Federal Government had inaugurated many schemes through the Ministry of Power to resolve the problems of the country’s vital power infrastructure.