Immediate Future of Power Sector Bleak – Analyst

There is little comfort that the power assets have been finally handed over to private owners. There are palpable fears that consumers may have to pay more for lesser supply of power, amongst other concerns.
Bismarck Rewane, chief executive of Financial Derivatives Company identified six key issues that will likely slowdown the pace of the power reforms.  
According to him, these include financing, pending labour issues, possible sabotage of infrastructure.
Observers of current situation in the electricity supply said they are convinced workers of the former Power Holding Corporation of Nigeria (PHCN) are already doing that.
This they linked to the fact that power outage is worse now than when the government was in charge.
They urged the new owners to be wary of the old staff of PHCN still working with them.
Other possible issues include technical complexities of power network. inefficiencies in revenue collection mechanism, and resistance to higher tariffs.
The economy, Rewane said is not expected to benefit much from proceeds of privatization of PHCN. According to him, received payment is are going to be largely used for debt servicing, rather than capital improvements.
He also expressed fears that consumers are likely going to pay more despite little or no improvement in the short term.
The Bureau of Public Enterprises (BPE) estimated N384.06bn was spent on severance pay
Physical assets were transferred on November 1 2013.

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