Managing Director of Total Exploration and Production Nigeria Limited, Mr. Nicolas Terraz, has bemoaned the fact that over 58 per cent of electricity produced in Nigeria is not monetized.
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| Stakeholders yet to monetise 58% of Nigeria's electricity |
Terraz, who was represented by Mr. Patrick Olinma, Executive Director, Asset Management and New Energies, Total Nigeria, at a panel session at the just concluded Nigerian Gas Association, NGA, International Conference and Exhibition in Abuja, argued that the solution to the problems in the gas and electricity sectors go beyond infrastructure development.
He said, "You cannot talk about domestic gas in Nigeria without talking about the power sector. If you look at the Aggregate Technical, Commercial and Collection losses, it is over 58 per cent. It means, in effect, that the power that is produced, which is less than 5,000 megawatts, not up to 50 per cent of it is monetized.
"If you do not monetize the power that is produced, how are going to pay, let alone the issue of cost-reflective tariff? Even at today's tariff, you are not monetizing up to 50 per cent of the power that is produced, how do you want to pay for gas and pay for all the supporting infrastructure.
"I think beyond developing additional infrastructure, we need to look at even the operations of the power plants. I was looking at the NERC report, most of the plants are running at 20 percent of their installed capacity. This has nothing to do with infrastructure."
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