Telcos, Banks Spend N201Bn on Generators

Telecommunications and banking industries, two outstanding sectors in the Nigerian wobbling economy have spent some N201 billion to acquire generators to power their operations as the country’s public power supply go from bad to worse, Nigeria CommunicationsWeek can now reveal.
The amount is conservative and exclusive of the diesel and routine maintenance of the over 130,000 generators of the companies in their 30,000 locations across the country.
The current total public power supply is just 1,400mw, a far cry from the at least 10,000mw required to power homes and industries in the country.
Nigeria CommunicationsWeek gathered that while Nigeria currently generates 1,400mw for a population of more than 140 million, Iran with a population of 70 million already generates 42,000mw.
South Africa generates 36,000mw for a population of 40 million which translates to 800 watts per capita. At current capacity, Nigeria is just more than 10 watts per capita.
And that leaves everyone including companies to generate their own power. In fact, telecommunications and banking industries are the largest private power generating companies in Nigeria and this is not their core business.
A telecom base station needs at least 15KVA generator to keep its network up and running while a bank branch needs at least 50KVA generator to produce electricity.
Nigeria CommunicationsWeek gathered that telecom companies have spent over N151 billion in acquiring generators installed in their base stations scattered across the country without which telecom services would not be possible.
Telecommunications service providers deploy two generating sets at each base station, bringing a total of 114,000 generators so far deployed across the country.
Elsewhere, Nigerian banks have committed over N51 billion in their more than 26,000 generators in their over 4,000 branches.
The money that has gone into the procurement of generators would have been used for other purposes including the improvement of their operations and fair pricing of the goods and services they offer.
Nigeria public power supply has gone from bad to worse with the telecom and banking industries worst hit.
Billions have been pumped and are still being pumped into the now comatose power sector without anything to show for it.
Power is one of the major development indices the world over and as a member of the global community, Nigeria is not an exception.
Nigeria CommunicationsWeek gathered that because of the country’s notoriously unreliable public power supply, the telecom and banking industries are employing less than its capacity.
The problem of power supply in Nigeria has been attributed to actions of the so-called cabal that consists of notable Nigerians who work in partnership with some contractors to hang on to contract from one administration to another.
There is also the problem of the long neglect of existing infrastructure, lack of new ones as well as disruption and sabotage of power lines by vandals.