New investors can only be attracted when the operating business environment is right
The announcement of a new policy thrust came recently from Vice President Yemi Osinbajo who explained that the current structure of the market could not deliver on improving the country’s power sector to support domestic and industrial uses. He specifically declared that a substantial change in how the sector operates is being pursued, thus suggesting a new layer of reform.
These current conditions in the power sector are impediments to genuine investments which the sector urgently needs. They are red flags that should be tackled squarely rather than fresh reforms as suggested by Osinbajo because few investors will come to an environment where there is no consistency of policies. The Discos are inefficient. The TCN on its part has, despite some modest progress made recently, relapsed. This year alone recorded multiples of system collapses.