New tariff to fetch PHCN N22.5bn monthly – Minister

The new electricity tariff will enable the Power Holding Company of Nigeria to generate up to N22.5bn monthly, under the second Multi-Year Tariff Order, the Minister of Power, Prof. Bart Nnaji, has said.
The second MYTO came into effect on June 1, 2012, five months after the initial scheduled commencement date of January 1, 2012.
The minister described the amount as the irreducible amount the company needed to make in order to meet its obligations to primary suppliers, like Shell, Agip, Ibom Power, the National Integrated Power Projects and the Nigerian Gas Company.
He said, “The new tariff should enable the PHCN to generate up to N22.5bn monthly,” Nnaji was quoted as saying at the Executive Intelligence Management Course 5, held at the Institute for Security Studies in Abuja on Monday.
Indebted to the tune of N400bn, the PHCN, Nnaji said, had hitherto been paying the international oil companies for only 50 per cent of their services.
He said, “Should the IOCs be forced to carry out their longstanding threat of stopping further supplies to the PHCN, it will be calamitous for the whole nation.”
He said more investments were critically needed in the power sector, as fresh investments of $10bn annually were needed in the next decade to enable the country to generate 40,000MW of electricity by 2020.
According to him, this will enable Nigeria to become one of the 20 biggest economies in the world.
He said that companies, like Shell, Agip, Siemens, Daewoo and General Electric, among others, should be encouraged to continue to have confidence in the country.
According to him, return on investment remains much higher in Nigeria than in other countries in West Africa.
He said the nation would be generating 5,500MW of electricity before the end of the year, adding that a minimum of 1,000MW would be added to the national grid this year.
Source