Nigeria Independent System Operator @OFFICIALNISO_NG
Dr Toks (Akpakomiza) @fimiletoks
No sensible person will invest in a sector that operates under a regulatory price cap with prices below production cost. The gas sector needs $20bn worth of investments. Who will bring money to invest in this mess? We have abundant gas, but we don't have the needed investments.
Gas producers are hesitant to supply Gencos because Gencos also operate under a price cap and they can't get their full payments from Discos and NBET, Discos also operate under a tariff cap. Subsidy has destroyed the entire value chain. If subsidies were that effective, where are Nigerians still poor of after years of subsidy payments.
The more subsidies grew, the more poverty expanded. Allow a market-driven price model and a willing buyer-willing seller arrangement. We can't subsidise our way out of poverty.
https://x.com/i/status/2027336901468791203 
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