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Jonathan ordered reversal of electricity tariff to win election, says Fashola

Jonathan ordered reversal of electricity tariff to win election, says Fashola
July 14
09:53 2017
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Babatunde Fashola, minister of power, works and housing, says the Goodluck Jonathan-led government reversed electricity tariff “to win electoral votes”.

He said the privatisation of the country’s power sector was delivered with “some deception”.

Fashola said this on Thursday while speaking at a public lecture organised by the department of economics, University of Lagos.

He said after the privatisation process was concluded, the previous administration failed to explain to Nigerians that a lot of work was required.

The minister noted that the reduction of electricity tariff created “massive debt” for Nigeria as it did not conform to the realities of the country’s economy.

“While I fully support privatisation, I believe what took place in 2013 in the heat of politics was a privatisation that was well intentioned since 2005 but delivered with some deception in 2013 with the expectation of political profit,” Fashola said.

“It led many uninformed Nigerians to believe that once the privatisation was concluded, the assets sold to the distribution companies (DisCos) and the Generation companies (GenCos) there was immediately going to be power. I cautioned then that people’s expectations were being unduly raised without telling them that there was a lot of work to do.

“Government must also not interfere with the power of the regulator when it fixes tariff in the way the last administration ordered a reversal of tariff in order to win electoral votes in 2014.

“It created a massive debt for Nigeria, because while the government ordered a reversal of tariff, it did not reduce exchange rate, interest rate, cost of wages or cost of gas and other inputs necessary to produce power. Why should Nigeria carry a debt created by an individual’s electoral ambition? This is what the Buhari administration has to contend with.”

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3 Comments

  1. EASYMAN
    EASYMAN July 14, 11:04

    AS IF YOU WILL NOT DO THE SAME, COME 2019

    Reply to this comment
  2. AVE2017
    AVE2017 July 14, 12:30

    Hon. Minister, we’re tired of this your perpetual blame game! This is 2017 and your appointment was based on the belief that you have the ‘magic wand’. Therefore, stop looking back and run the race otherwise you will loose the race and history won’t judge you kindly.

    Reply to this comment
  3. Ben
    Ben July 14, 14:40

    Mr. Minister will not cease to amaze me. The “deceptively” reduced tariffs have since been increased by his approval yet what we have to show for the transparent Fashola is darkness. Stop deceiving anybody. You seem not to have anything to offer, hence the blame game.

    Reply to this comment

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