The Nigeria Employers’ Consultative Association (NECA) has urged the Federal Government to strategically address the challenges in the power sector.
The Director-General, Dr. Timothy Olawale, made the appeal in a statement on Wednesday in Lagos.
Olawale said that resolving the issues in the power sector would be a major step toward reviving the economy and returning it to the path of steady growth.
“While NECA commends government for the renewed vigor in solving the electricity crisis, we urge that it should continue to live up to its obligations as stipulated in the terms of the privatization.
“We also urge the distribution companies to expedite action in distributing pre-paid meters to all consumers, ” he said.
The NECA boss said that while it was desirable that a cost-reflective tariff was instituted, it was imperative that the infrastructural challenge in the sector was addressed.
He said that a major challenge for organized businesses and consumers generally was the incidence of estimated billing, which had pitted the Distribution Companies (DisCos) against consumers.
“Electricity consumers, generally, will not challenge the payment of a cost-reflective tariff, if electricity is provided.
“It is paramount that pre-paid meters are installed for all consumers to increase the confidence of Nigerians, rather than the current controversial estimated billing, ” he said.
Olawale called for a staggered approach to cost and service reflective tariffs. According to him, it will allow DisCos to enter into agreements with customer clusters for cost-reflective tariffs, pegged at an improved quality of service level.
“These customer clusters will act as test cases for the full implementation of cost-reflective tariff.
“Adequate consideration should also be given to the end-users and players in the electricity supply chain with a view to adequately balance the various interests, ” he said.