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POWER SECTOR MAY NOT ATTRACT CAPITAL WITH GOV’T FIXING TARIFF

Admin
Monday, 19 August 2019

Managing Director and Chief Executive Officer of the FMDQ Over-the-counter (OTC) Securities Bola Onadele Koko has said as long as government continues to fix tariff, the power sector will hardly attract capital. Koko disclosed this at a media parley to announce an approval of the Securities and Exchange Commission (SEC) to transition FMDQ   to a full-fledged ‘securities exchange’.

He also reacted to the opportunities for the exchange to key into the comment of the Vice President, Prof. Yemi Osinbajo, on the Federal Government creating policies to open up the nation’s electricity market to new investors.

This is my personal opinion and very limited. If you compare power and telecoms, the telcos where able to charge what they considered as a fair value for their services.

“As long as you have this thing called tariff and it is the government that fixes it and the exchange rate that is used, because they don’t want us to suffer, it is not going to be commercially viable or attract capital,” Koko said. He argued that “we cannot have 200 million people who want light and we think that there is no money in that business.

He said: “There is something about a free market. People have not put money in the power sector because of the reforms we have not really done in that sector.

About IWIN

The Independent Energy Watch Initiative (I-WIN), an enterprise of Energy ConServ and the Roundtable for the Growth and Development of Power (RODEP), is an online/web based power sector portal that strives to engage stakeholders and the Nigerian public on topical issues in the power sector.

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