Governor Dapo Abiodun of Ogun state said Thursday that Nigerians must pay the right amount for electricity and petroleum products to attract investments.
The governor said this while fielding questions from State House correspondents after presenting a publication on his first one year in office to President Muhammadu Buhari in Abuja.
He said Nigerians should be able to pay the slight increase in petrol price since they would also enjoy lower prices when the prices of crude oil drop.
“First, you want to enjoy lower prices when the prices of crude are low and then not want to pay for a slight increase when there is an increase in price of crude. The price of crude is directly proportional to the price of refined products. So, I believe that is what is happening at the moment,” he said.
On electricity tariff increase, the governor said there had not been an appropriate pricing, which had militated against the value chain of the power sector.
He said there is the need to make the electricity value chain profitable to attract investment and have enough electricity for transmission.
“In terms of the tariff increase in the electricity industry, again, we also have to decide what we want to do.
“We all complain that we are not generating enough electricity and we all complain about the fact that we don’t have the right infrastructure to transmit electricity, we complain about the fact that the distribution companies do not seem to be efficient. The problem is because, perhaps, the pricing is not right.
“If you want people to invest in production of gas, in gas floatation, which our turbines and our power plants rely on, we must ensure that the entire value chain is profitable. Because if one part of it is not profitable, that means there will be a short fall in one of the value chains, if we don’t have enough investment.
“So, if you don’t have enough investment in gas gathering, if we don’t have enough investment in gas transportation, we will not have enough gas supply to sustain the quantum of generation we require as a government or as a nation. And when we don’t have that, we don’t have enough that will be transmitted to our homes and the transmission grid, and then, we continue to complain. So, really the truth is that it’s a cache 22 situation,” he said.
While expressing hope that the National Electricity Regulatory Commission (NERC) would implement the necessary regulation of the stakeholders, the governor said Nigerians must begin to pay what they need to pay in order to have the right amount of investment in the entire value chain of the electricity industry.
