As the federal government pays off workers of Power Holding Company of Nigeria (PHCN) to allow the new owners of the power firms take possession of the companies, First Bank Plc says the power distribution sector holds huge potential.
In its publication, Research Weekly, the bank highlighted the huge potential in power distribution business in Nigeria and in medicals.
The potential in medicals according to the report, is based on a recent report from the Indian High Commission which revealed that 47 per cent of Nigerians (estimated at 18,000 persons) who visited India in 2012 did so to get medical attention in both private and government owned hospitals at a cost of N41.6 billion ($260 million).
First Bank research unit disclosed that the inherent potentials in power distribution business in Nigeria was also based on recent report that distribution companies (discos) generated N189 billion ($1.18 billion) year to date as at May 2013.
The realised funds were said to amount to a 25 per cent increase in the funds generated in 2011. This increase in collections has been attributed primarily to the increase in the tariffs. Tariffs, notwithstanding, the potential to generate a significant amount of cash on a regular basis as is the case with the telecoms sector cannot be downplayed nor overlooked.
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