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Stifled electricity distribution growth

…Exorcising the demons

Distribution as the broken bridge

Nigeria’s electricity sector has suffered many failures, but none is more visible, more economically corrosive, or more politically sensitive than the failure of the distribution subsector. For decades we have normalised a reality in which electricity cannot be delivered reliably, measured accurately, billed transparently, or paid for consistently, so the entire Nigerian Electricity Supply Industry (NESI) remains trapped in dysfunction, however impressive its upstream numbers look on the regulator’s slide.

Distribution is the bridge between electricity policy and the citizen, and equally between generation investment and revenue recovery, gas supply and cash flow, and industrial productivity and competitiveness. When it fails, everything upstream fails with it: gas producers go unpaid, GenCos accumulate receivables, transmission sits underutilised, governments retreat into subsidy, and industrial users quietly self-generate. After decades of unpaid invoices, the sector has lost its credibility, and the bridge to its prosperity

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