The rational and progressive approach to decision-making in a democratic society (developed or developing) is to "start somewhere", using "available information/data that may frankly be inaccurate"; but Govts make room for adjustments as the numbers and data come in during program implementation. For example, if it is public assistance, once the resources for a particular year are exhausted, subsequent applicants are advised to tune in next year or submit their names for the next financial year. This is the practice everywhere, even in the highly resourceful USA and Canada in North America. Besides, since there are rooms for annual budget/estimate modification, appropriate adjustments are made each year for previous short-falls or over-estimates.
So, we will all agree that there will be a major challenge with having a "comprehensive and reliable information about the population being served" to accurately make the estimates on subsidies and other freebies relating to utilities in Nigeria; however, this should not prevent the Govt from starting anything; in fact, if Govts are serious and purposeful, these are the types of activities that can provide very useful approaches to better document and organize societies such as Nigeria. So I actually see golden opportunities to better organize, manage and govern Nigeria in these initiatives than the apparent challenges some of these tasks present on the surface. It appears that the political will to get something done and achieve for the society on the long run versus the expediency to yield to the allure and convenience of the surface challenges will make the difference in the choice on this and most other Nigerian social and developmental issues. Take care. JUI
________________________________
From: NaijaPolitics@yahoogroups.com on behalf of Mobolaji ALUKO
Sent: Sun 21-Nov-10 10:59 AM
To: ngpolitics@googlegroups.com
Cc: NaijaPolitics e-Group; naijaintellects
Subject: [NaijaPolitics] Re: Do You Agree To Pay More And Get Constant Power In Return?
Emmanuel:
I would love to read your book, but please understand that implicit in mechanisms that you described is comprehensive and reliable information about the population being served. There is much difference in that regard between the developed and developing worlds, and even within the developing world.
For example, our own Nigeria 2006 census has so far not been disaggregated publicly BELOW the local government level - the whole populations of TOWNS that make up the LGs are no where to be found - for political reasons. So how can we find the economic levels of households, etc. and apply means testing?
Imagine if we knew the income levels of all the households in a town such as Ado-Ekiti. Then if we state that no household should spend more than (say) one-quarter or one-third of its monthly income on electricity, then we would know what the whole of Ado might be able to pay on electricity. If we multiply average household electrity usage by the number of households by the cost-reflective tarriff, then the difference between that product and all Ado can pay would be the subsidy that government would consider paying.
Finally: Availability, accessibility, affordability, reliability, quality, sustainability- these are the six attributes of any utility, to have or to ensure.
And there you have it.
Bolaji Aluko
On Sat, Nov 20, 2010 at 5:49 PM, Emmanuel Onyekwere <eonyekwere@yahoo.com> wrote:
Prof Aluko and All,
The experience of citizens of countries such as Brazil, Argentina and Mexico was captured in my book. The issue of access and affordability to utility services was a problem in Brazil once these entities were privatized. This is where the government can play a role. Government through regulation can regulate rates charged to varoius income strata of the population. Using appropriate mechanisms, regulators can guarantee a certain rate of return to operators in power generation thereby allowing them to recover their investment. Since transmission will remain in government hands, subsidize it with tax or petrodollars for a limited period and use vouchers to provide access to the poor using means testing. "Privatization as Instrument of Socio-econmic Development in Nigeria: Learning from Latin American Countries" is available at Barnes and Noble and other book stores.
Happy Reading!!!!!
Dr. Manny Onyekwere
Dr. Onyekwere
________________________________
From: Mobolaji ALUKO <alukome@gmail.com>
To: ngpolitics@googlegroups.com
Cc: NaijaPolitics e-Group <NaijaPolitics@yahoogroups.com>; naijaintellects <naijaintellects@googlegroups.com>
Sent: Sat, November 20, 2010 2:49:09 PM
Subject: Re: Do You Agree To Pay More And Get Constant Power In Return?
Dear All:
There is no need for all of us to be angry about payment or no payment for electricity in our country.
All data show that the current tariff for electricity in Nigeria is not at an economic rate - that is, even if ALL the revenue for all the electrical energy delivered were collected, the entire chain (generation, transmission, distribution, commercialiation) would not make a profit. Current tarriff is too low at N5 - 11/kWhr, so the Federal Government is looking at N18-N22/Kw-hr and up for some time to come, bearing in mind that cost of diesel generation is about N50-77/kWh. This is INDEPENDENT of the efficiency or stability of the delivered power.
To properly ask whether any Nigerian or Nigerian family or business or industry would be prepared to pay more, we must do three things:
1. find out how many kW-hours of energy each entity uses per month. [This is slightly technical, but it must be done. Just look at the Kilowatt rating of your major appliances; see how many hours that they are turned on per day; and multiply (for each equipment) the rating by the hours by 30, and add them all up for all of the equipments, and multiply your result by a factor like 1.2 - 1.4]
2. multiply that kW-hours by the tarriff N5 / kW-hour in step increases of N5 each, all the way to N70 / kW-hour.
3. compare each of those figures with:
(a) what you are paying now per month for power using ALTERNATIVE generation (diesel generator, kerosene, wood, etc.)
(b) divide each by your monthly income.
4. The tarriff that you should be willing to pay will be between:
(a) the one that does not lead to a monthly cost lower than (3a);
(b) that one that does not lead to a HIGHER fraction of your monthly income that you are WILLING to pay each month (may one-eigth, or one-quarter, one-third, or one-half.) You decide that one.
And there you have it.
Obodoekwe styvn - please help us do the calcuation for your house and co-tenants!
Bolaji Aluko
------------
FROM ericayoola@aol.co.uk
Pay more than what?? How much is being paid at the moment and how much by will that amount improve?? A survey that cannot provide that basic information before posing questions as this is silly. Of course if you have to pay say N200 more, then yes, but if it is say N5000 more per month then the vast majority of Nigerians will balk at the idea simply on grounds of affordability.
Privatise power if you will but without the type of government subsidy that we have on oli being accorded to privatised power, 70% of Nigerians will be priced out. Simple as that.
Sent from my BlackBerry smartphone from Virgin Media
On Sat, Nov 20, 2010 at 6:19 AM, Styvn Obodoekwe <obodoekwe@yahoo.com> wrote:
with due respect, anybody suggesting that the cost of electricity should go up for nigerians to enjoy improved services should have their heads examined. NEPA has failed not because of low cost of electricity, after all, people have been paying dearly for electricity that they hardly enjoy. i and my co-tenants were once made to pay thousands of naira for about 3 months at a period when, within those 3 months, we never saw electricity not even for a minute. there was a breakdown in our transformer. that was not the first time anyway. if you get power supply for 10 hours a month out of aout 720 hours and you are made to pay a bill that covers 720hours, is that a cheap electricity? the truth is that some hawks are milking nigerians through NEPA. the same hawks have been struggling to ensure that NEPA remains a failure. the same hawks want to steal the entire NEPA through the so-called privatisation. and the same hawks will quickly jerk up the price of unavailable electricity and claim that it is the only way to make NEPA work. for God's sake, if anybody is concerned about the failure of NEPA to provide electricity, the person should begin to think of how those responsible for the predicaments should be prosecuted and executed for their heinous crimes against humanity.
obodoekwe styvn
--- On Thu, 18/11/10, COLLINS EZEBUIHE <collyezebuihe@hotmail.com> wrote:
From: COLLINS EZEBUIHE <collyezebuihe@hotmail.com>
Subject: RE: Do You Agree To Pay More And Get Constant Power In Return?
To: ngpolitics@googlegroups.com, nigeria360@yahoogroups.com, igboevents@yahoogroups.com
Date: Thursday, 18 November, 2010, 9:53
Given that there are connected individual Nigerian citizens allotted Oil wells, and who
are also making tons of money as a result, Electricity should therefore be a right, not
a privilege, and free of charge (FOC) to the extent sustainable, to all Nigerian citizens.
In that sense every Nigerian will be getting some share of the Eastern Nigerian Oil.
Makes sense, doesn't it?
Collins.
> Date: Thu, 18 Nov 2010 07:08:53 -0800
> From: timkola1@yahoo.com
> Subject: Do You Agree To Pay More And Get Constant Power In Return?
> To: naijamix@googlegroups.com; naijamix@yahoogroups.com; ngmix@yahoogroups.com; ngpolitics@googlegroups.com; nigmix@yahoogroups.com; 9ja_mix@yahoogroups.com; 9jaland@googlegroups.com; 9jamix@yahoogroups.com
>
> As the problem in Nigeria's power sector lingers, 96% of Nigerians interviewed in a poll conducted by a leading opinion polling organization in the country, NOI Polls, have said improved service is of necessity, even if it will mean paying more for the service.
>
> The willingness of an overwhelming proportion of Nigerians to pay...click here to read more http://forum.ngmix.net/viewforum.php?f=7
>
>
>
>
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