Osinbajo says power sector needs cost-effective tariff

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Vice President Yemi Osinbajo, said yesterday, at The Platform, a programme organised by Covenant Christian Centre, Lagos, that it will be impossible to sustain the power sector in the country without a cost reflective tariff, Vanguard reports.

Osinbajo said if there was a single reform that could fundamentally change the narrative of the Nigerian economy, it would be providing regular power supply. He said: “One of the key things that no one likes to talk about is that there must be a cost-reflective tariff. Without cost-effective tariff, it will be impossible to sustain the power sector going forward.”

“Many of the private sector companies that invested in the power sector do not have the resources to continuously invest, to service equipment, meters and do other things…They are paying more for producing power than they are being paid by consumers,” he added.

Osinbajo noted that the Federal Government has decided to introduce some liquidity into the chain by what is called payment assurance scheme as a short term measure to solve the challenges in the sector.