The Managing Director and Chief Executive Officer, Welbeck Electricity Distribution Limited , Afolabi Aiyela , has told Nigerians to expect improved power supply by next year based on significant foreign and local investments due to the Federal Government’ s new Cost Reflective Tariff for electricity.
Aiyela , according to a statement , spoke during a visit by a delegation from the Lagos State Ministry of Energy and Mineral Resources , led by the Permanent Secretary of the ministry , Mustapha Olorunfemi, to the company ’s Ojota power plant .
He noted that the sector had become attractive to foreign investors who had become confident about making a return on any investment in the biggest power market in sub – Saharan Africa , in terms of demand .
The Wellbeck CEO said , “ The expert consensus worldwide is that fossil fuel subsidies have a net negative effect , both in individual countries and on a global scale . Electricity subsidies artificially lower prices, leading to market distortions and consumer wastage. ”
He said such consequences included environmental , economic and social impacts.
Aiyela added , “ In Nigeria, in particular , subsidies have led to the increase in energy consumption , strain on government budgets and diversion of funds that could, otherwise, be spent on social priorities (such as healthcare or education ) and reduce the profitability of alternative energy sources .”