Category: Biz Life

where power companies after obtaining licenses seem to sit back and exploit monopolies, instead of investing to meet current and anticipated higher power demands

As a businessman, I do understand the necessity of sectoral protection to help drive investment in utilities of systemic importance, but I believe that power firms should be on the same page with the government in provision of adequate energy, as much of the economy depends on it. 

So, I believe that regulators and law makers in Africa will do well to think more about introducing more statutory clauses that limit the exercise of monopoly and near-monopoly benefits in times of unjustifiable underproduction, underinvestment and substandard services such as the snail speed of prepaid meter rollout by power companies in Nigeria.

They don’t seem to have any motivation for widespread rollout but have mostly continued with the age-long controversial estimated billing, which they seem to enjoy more than expanding power production.

I believe that if power companies in Nigeria are transparently paid based on what consumers consume, profit will be tied to consumption and power companies will have no option but to produce more power or loss a lot of money like Eskom.