Osinbajo Gives Reasons For Hike In Electricity Tariff


The Vice President, Prof. Yemi Osinbajo, SAN, has given reasons for electricity tariff hike, explaining that the shortage in gas supply and drop in power occasioned by break in line of transmission made it necessary for power generation companies to increase their tariff in order to be able to meet up with demand for power.

The Vice President made this disclosure yesterday in his key note address during the maiden edition of the National Forum on the economy, put together by Vintage Press publishers of The Nation Newspaper, themed: ‘ National Economy: The Way Forward’.

According to him, “There is no way the GENCOs (Generation Companies) can supply enough power to consumers without generating enough fund to drive the necessary processes that will bring about adequate power generation and supply.”

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Following his statements on the electricity tariff hike, Yemi Osibajo also spoke on several other issues affecting the economic growth of Nigeria and disclosed plans by the present government to move the growth of the economy through private sector stimulation and economic diversification to the non oil sector, adding that the government is planning to make optimum use of its backward integration initiative that will help in moving and projecting the growth of the economy and also bring into existence industries that will propel the development and growth of Nigeria

In the same vein, Vanguard reports that the State Governors yesterday proposed for decentralisation of power at the federal level, states and local governments, inter-state relations, regional integration and diversification of the economy from oil to agriculture, as part of measures that must be put in place in order to boost the economy of Nigeria.

Speaking at the first edition of the “National Forum on the Economy” organised by Vintage Press Limited, publishers of The Nation Newspapers, the Imo State Governor, Rochas Okorocha said

The problem with Nigeria’s economy is that too much power resides at the Federal level. It is time for the Federal Government to decentralise power and make the state and local government stronger. We also need to use our local culture to solve our economic problem. The British or American system cannot solve our problem. All we need is to adopt the Nigeria system to be able to solve our problem.”

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