The President of Nigerian Society of Engineers, NSE, Adekunle Mokuolu, has called for an upward review of electricity tariff in the country.
Mokuolu, who spoke memorial lecture in Lagos, also called on the Federal Government to fix the country’s electricity infrastructure, insisting that an upwards review of the tariff would boost the power sector.
The NSE boss also claimed that the current problems in the sector, including estimated billing, could be addressed by raising the tariff.
He said: “The challenge with the power sector in Nigeria is not principally with the engineers but the problem is on how we manage the various components that make up the sector like finance, policy, management and infrastructure.
“Standards in this country are bastardised, so the distribution companies are using that to break-even because the overhead cost for the production and distribution of electricity is very high while the tariff is very low.
“So, the distribution companies which deal directly with the consumers, have to rely on estimated billing to increase their revenue.
“Until the tariff paid by electricity consumers is reviewed upwards to sustain high revenue inflow to power production and distribution companies, there can’t be steady power supply in the country. Power distribution companies have to undertake estimated billing of customers in order to raise revenue to keep them afloat.”
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