 The revision of electricity tariffs in Nigeria is a complex process that takes into account several key assumptions that these factors are not only crucial but also indicate forming the backbone of the cost-reflective pricing model adopted for electricity tariffs. I have the immediate past president of the National Union of Electricity Employees, engineer Dr. Martin E. K. Chukwu Ozoegu joining me now to make some sense out of this recent development. Many thanks for joining me, engineer Ozoegu. Yeah, thank you very much for having me. Good morning. All right, it is our pleasure. Let's just start cut blanche and just get your candid opinion really. Are you in support of the new tariff regime for electricity consumers? Can you hear? I saw it, can you hear me? Northern Claire. Yeah, just like any other engineer we saw it in the media where the neck announced the increase in electricity tariffs. Yeah, it was not shocking news because I know that they have long expected to release such information to the public. Even when the IMF and the World Bank had advised Nigeria to remove the subsidy on electricity, of course that would translate increase in the tariffs. So I believe that is the part of insensitivity coming from the regulators at this point in time where Nigerians are facing serious hardship. There is economic crisis, minimum wage of 30,000 was not or has not been paid. The new minimum wage, which the level is being negotiated with the government has not been concluded. The market remain, they use everybody suffering at this point in time. There is four crises at this point in time. Four is almost 730 Naira, between 700 and 730 Naira per liter. So I think that this is not the right time to release such information, exploit Nigerians in this regard because electricity is the essential service commodity where even the poor of the poorest can have access to especially those in the rural areas. Yes, I can understand that they try to be able to push it to those who are in band A areas that are falling to a band A. It has a certain figure which is called a premium feeder or a feeder that will always give them 20 hours minimum of supply. But one could ask how many of the populations are using such a feeder? And besides, what is the generation at this moment that can even sustain such feeder for 20 hours? So I think the government need to sit down and look at all these things holistically and the clear state of emergency in the electricity sector because if we continue this way, I don't think we are going to make any headway. Before privatization or 10 years down the line, after privatization, because privatization was around 2013, up to this moment, this is 10 years after privatization, we are still talking about 4,000 megawatts between 3,005, 4,002. And one could ask, within this period, government has increased the rate for us five times. So what really happened? Has there been a commission increase in the development of the electricity sector? The answer is no. Because if we have such, I think we should be talking about 10,000 megawatts based on the fact that the discourse has scooped up the investment, the return on investment, the increase in electricity. But at this point in time, how do we believe that this particular increase will translate to economic development and infrastructure development of that sector? So I think that we need to look at it holistically, go back to the drawing board and bring all stakeholders. Okay, Angelina, I still really want to understand it for sake of clarity because they've talked about these band A customers and most people still don't understand, because sometimes in their access, they do get to enjoy electricity supply for 20 hours. Who exactly make up this band A customers? Is it a thing of location or what exactly? Because sometimes, even those that do enjoy this 20 hour minimum with sometimes about a week or so, they don't even get to enjoy this somehow. How does this really work? Yeah, actually the band A normally regard them as premium customers. In fact, a feeder has been dedicated and mostly that feeder, you know, are always at 33 kV6 queues that uses at a 3 kV4 or 5 volt transomers. So they're expected that those feeders before it gets to the actual distribution network at the locations. Majorly the customers are under feeders and it's better that those feeders continue to remain on. But most times you discover that even those feeders that could default, that could be forced out on that feeder, that could imagine location because location in the center is mostly those living in urban area that are assigned to such. So I believe that they designed that for them. But the concern is how consistent would that be? Those people enjoy 20 hours minimum. What if there are situations where there is a collapse? Where is the situation that are forced outages or emergency outages? What's happening between the line? Will you still charge them based on that? So that is the question everybody needs to answer. Okay, now there are lots of reactions and counter reactions containing this and they were getting feelings from Nigerians from a poll that was made. And some people believe that as long as it affects one group, you know, the bulk of Nigerians might not really see the need to join the affected group in protest. And eventually people are saying that this increment might even spread to other groups, you know, and the cell called band A group will say when theirs were increased and no one protested. But as it is right now, how consistent is this increment? Is this something that's just for band A or do we see it spreading to other bands in the near future, in your opinion? No, based on this experience and our observations, it's definitely going to spread to other bands because they are equally using electricity and it's a product that resources have been put into to generate. So it's not going to tie to only on one band, but the issue, the percentage of increase could equally be reduced based on the bands which has been allocated to such feeders. Like you have a band A that they have 20 hours minimum supply, then you have band B which has about 16 hours minimum. You know, you have band C that has about 12 hours minimum. Because together like that you band D that has eight, then the last is the band E that has four mega four hours, which is definitely dedicated to the rural areas. But definitely as long as they are using the electricity, as long as the infrastructures are being tied to their network, as long as they are being connected to the grid, of course, there is a ripple effect. They should equally expect a slight increase in that area. So it's not all about the band A, but of course, you know, the government will equally project band A as the only area that they are concentrating. But behind you can see some of the increase in that they come up. Okay. Okay. In the introduction of the show engineer, government is saying that there is going to be some sort of savings, you know, from this new development. It said that the reduction will see the current 261.2 billion Naira Figo fall to around 125.94. Government believes there is going to be some savings for them, you know, by this new development. But the question right now is that what factors do they really concede that before they arrive at these figures? Because there's been talk of, you know, increase in gas price and everything. How did they really arrive at such figures right now? Yeah, I think that the question engineers need to ask. They came up with figures of the amount of money that they have spent in subsidizing electricity over five years. So I, what would wonder how did they come about these figures that 2024 a load government is expected to subsidize electricity to the tune of 1.6 trillion, 1.6 trillion for 2024. Now, what would wonder what are the criteria? What are the numerical indices that they use to be able to arrive at these points? So I hope ask questions about all these. For us, I believe that definitely power supply helps the investors, if I have every economy to drive and develop every country. Now, if Nigeria, as a case study, is having 4,000 megawatts for the past 10 years, and nothing much has been put in place to be able to get to the level that we can still talk about 10,000, 15 to 20,000 megawatts at this point. With the population of 200 million, more than 200 million, how then do you think that this will translate to the includes in the development of the country or putting more money into the government covers? This is the way of enriching the coming on and on. And what happened? You can't talk about having a transformer issue in your area, and you see them coming to your aid. You can't talk about meter. Government is supposed to provide, the investors are supposed to provide energy meters, but are they doing that? No. So where are this money going to? So how are we sure that this particular one will still translate to having more money in the government covers? So I believe there is a lot of firemen about this and Nigerians need to start asking questions about this. Okay, engineer, in my head, I'm still thinking about why segregate, you know, customers or consumers to various bands. Ordinarily, I feel my opinion that everyone is supposed to enjoy power electricity for about 24 hours. So why segregate some people will get to enjoy 24 hours or that's 20, 16 just like that. Does it really make economic sense? Actually, it doesn't because one is that it's so when when when you didn't start the foundation on the right foot, that is what we experienced. We the workers of electricity mentioned this, saw it coming during privatization and the the resisted it vehemently that Nigeria for now doesn't have the capacity to privatize this industry that this industry should be allowed government should equally commercialize let let let people generate the electricity and says why the government continue to fund the government own entity. But but this presentation was done at one point and sold to to to the investors who doesn't have the capacity to run it. If I they came up with those people who are going to buy these investors, should be able to have the foreign direct investment should be able to have the technical ability and managerial capacity, but none of these things we are put in place. And it was sold to us in this situation. So I believe that if you have the right people, the right competent people to be able to manage this industry, there shouldn't be any segregations of who should be in a band A of and B of and C because all of them are think everybody said electricity is essential service and commodity and people should not be sad line, especially when you have been in a supply such electricity. It's like having a poll and when you have a poll you say that this poll is dedicated to a this poll is dedicated to B and both of them maybe probably could be on the same parlor and when they are supplying a the person in B will not see supply, but they are living close. You know how do you think that that person will free? So I believe that the whole issues need to be re-examined and government should go back to review this privatization act. Government before now, before privatization said there is performance agreement that could last for five years and after five years, if they discuss it not powerful, they definitely will review it, but they never did. They allowed this to remain up to 10 years. Now it's not moving into distribution companies because they borrow money and they are here to pay back the loans of the world. So I think there's a lot of holy shoes on this. That's why we said government need to declare a state of emergency and let's sit down and look at how this thing will be able to work. All right. Thank you so much, engineer Martin, who's able for this wonderful insight that you have provided as regards the new electricity type and of course the power sector general and how we can move forward and of course how we need to review the privatization policy. We do appreciate your time. Thank you so much. Thank you very much for having me. My pleasure. All right. That's the size of the show for today, but just before we go, I'll leave you with this report on strategy confidence, how entrepreneurs were urged to focus on the health of their business as opposed to all its focus in on their profits all the time. My name is Justin Akadene, business insider. Return to your screen. Same time. Bye for now.