There are mounting concerns as Nigeria’s power decade privatisation process is expected to elapse on October 31, 2023.
It has become more problematic following the decades-long crisis within Nigeria’s power sector.
For over 62 years, the country’s electricity value chain, from distribution to generation and transmission, has been bedevilled with challenges.
Meanwhile, the government attempted to break the jinx in the country’s ailing power sector, first with the establishment of the defunct 2005 Electric Power Sector Reform (EPSR) Act, then on November 1, 2013, the commencement of the privatisation process.
DAILY POST recalls that the government commenced the privatisation of the Nigerian electricity distribution and generation companies in November 2013, benchmarked on a 10-year moratorium of operational licensees with the hope that the decision would halt the age-long power crisis.
However, a decade later, the problems of the power industry have remained unsolved, becoming a persistent clog in the wheel of progress for Nigeria’s economy.
The electricity distribution companies are battling with liquidity issues and low remittance compounded by the metering gap; still, the generation companies struggle with poor investment and transmission inadequacies, leading to incessant grid collapses.
For years, the country has struggled with 5,000 megawatts of electricity daily for a population of over 200 million people.
According to the Nigerian Electricity Regulatory Commission, NERC, report for the second Quarter of 2023, the 26 power plants’ generation capacity dropped to 4,387.91MW.
Also, regarding the annual capacity payment loss in the sector, the report indicated that in 2015, 2016, 2017 and 2018, the industry’s losses were N214.93bn, N273.32bn, N236.47bn and N264.08bn, respectively. In 2019, 2020, 2021 and 2022 (January – August), the sector’s annual capacity payment losses were N256.97 billion, N266.10 billion, N159.86 billion and N88.13 billion, respectively.
The challenges have lingered despite the government’s intervention at different times.
Recall that on September 30, 2014, the Federal Government announced a loan of N213 billion to the privatised power firms.
Similarly, on March 1, 2017, the Federal Government approved the sum of N701 billion as a power assurance guarantee fund for the Nigerian Bulk Electricity Trading Plc to pay for the electricity produced by the generation companies for two years.
The government also provided another N600 billion payment assurance facility to the sector in 2019; the nation’s power industry has continued to bleed despite these interventions.
The ripple effect of the power sector challenges is the underperforming economy.
For instance, in June, the Manufacturing Association of Nigeria disclosed that its members lose N10.1 trillion annually to the power sector crisis.
However, with the signing of the 2023 Electricity Bill on June 9 by President Bola Ahmed Tinubu, stakeholders postulated that this could bring about the much-desired change in the sector provided it is implemented across the sector.
Here, Nigeria’s Minister of Power, Adebayo Adelabu, would need to give the sector the needed policy direction beyond statements.
Wumi Iledare, Professor Emeritus and Executive Director, Emmanuel Egbogah Foundation told DAILY POST on Monday that the 2023 Electricity Act presents a new horizon for the country’s power sector.
He noted that the way forward is to invoke proper implementation of the Electricity Act.
“My advice remains the same— decentralisation of the power sector with proper regulatory institutions at the state and the federal levels.
“The Electricity Act, as amended, is forward-looking. Of course, one thing is to have a good law, and another is to follow the law’s intent.
“I remain convinced that at the level of development in Nigeria, vertical integration in the power value chain remains a valid market option for value optimization.
“NERC must step up to the plate as a regulatory institution. The Ministry of Power is not a regulatory but a policy institution; of course, it cannot be a commercial institution.
“I believe the adopted market structure for power privatisation has been faulty since its inception. Look at the turnover of the executives in Disco. Restructuring the power market for economic efficiency is critical as the licences expire. The Disco market jurisdiction is too big not to experience diseconomies of scale.
“The idea of owning a share in Discos reminds me of the Joint Ventures in Nigeria’s oil and gas sector. For what purpose, one may ask? Revenue enhancement for FG or energy security mantra?
“If investors can come from every corner of the globe and invest in the telecom industry, why not open up the power industry for global investors?
“Finally, the economy of Nigeria is moribund because of low energy consumption precipitated by energy availability, accessibility, affordability and adaptability. The way forward is to invoke proper implementation of the Electric Power Act to reform the power industry and restructure the electricity distribution markets under state institutional control.
Also, Kunle Olubiyo, the President of Nigeria Consumer Protection Network faulted the power sector privatisation framework.
According to him, the Performance Agreement and Licensee Moratorium expiration would allow the government to rejig the sector.
“The Performance Agreement & Licensees Moratorium was not given to last forever or in perpetuity.
“It was originally designed to last for five years (2013 – 2018).
“Surprisingly, it was extended by an additional five years, bringing it to 10 years (2013-2023).
“In all this, no meaningful regulatory efforts were made to appraise the licensees on the grounds of Key Performance Indicators, Service Agreement, Performance Agreement or vesting Contracts.
“Key Performance Indicators are primarily based on Timeline, Actionables, Deliverables, etc.
“It is obvious that all is not well, and the beneficiaries in and out of government and the licensees will stop at nothing to ensure that nothing is done to do the needful.
“Our efforts in the prevailing circumstances aim to arouse public conscience and consciousness.
“If you set out a rule for a football game, you don’t implement it at will or convenience. The rules of the game are sacrosanct. The Regulatory Ecosystem has suffered unprecedented inducements and weaknesses in the power sector privatisation exercise.
“It is therefore reasonable for the government to explore this window of expiration of the 10-year moratorium of the Power Sector Privatisation Exercise so that the economy and Nigerians can breathe.
“In the final analysis, the depth of the findings of the regulatory review of the power sector privatisation exercise will determine the next line of action of the Nigerian Government”, he stated.
On his part, Adetayo Adegbemle, Convener and Executive Director, PowerUp Nigeria, said the review of the power sector privatisation agreement is pivotal to repositioning the industry.
“Things were unclear pre-privatization, and many didn’t even know what to expect. So, it’s been a decade of learning for us all.
“The interesting thing about asking for reviews is that even without a ‘particular review’, the sector has been evolving.
“There are some low-hanging fruits like Metering of Consumers and all interfaces in the power sector, like Customer Enumeration and classification, like balancing the mismatch between Generation, Transmission and Distribution.
“All these are low-hanging fruits that should be addressed immediately and would affect the sector”, he said.
[DailyPost]
- $5bn annual revenue planned for fund
- $700m for adolescent girls’ education
A Humanitarian and Poverty Alleviation Trust Fund is to be established by the Federal Government for the purpose of providing relief to disaster victims and the vulnerable.
The Federal Executive Council (FEC) which yesterday approved the idea projects a $5bn annual revenue for the fund.
Besides, FEC, the highest decision-making organ of the government, set aside $700m for adolescent girls’ education in the country.
Humanitarian Affairs and Poverty Alleviation Minister Betta Edu and her Education counterpart Tahir Mamman made these known to reporters after yesterday’s council meeting in Abuja.
Edu explained that a governing board to supervise the implementation of the fund would be carefully worked out by a committee made up of relevant ministers that are relevant to the process.
She said: “This is a flexible form of financing that is supposed to help Nigeria adequately respond to humanitarian crises and challenges as well as adequately address the issue of poverty in Nigeria.
“This of course is a victory for the poor and indeed, would bring help and succor which the Renewed Hope Agenda stands for.
”We are therefore grateful to President Bola Tinubu today for the approval given for the creation of the Humanitarian and Poverty Alleviation Trust Fund.
“This is a flexible form of financing that can help us get contributions from different sectors. So we’re going to have contributions from government, from the private sector, development partners, individuals, philanthropic individuals, and other innovative forms of crowd-funding and pooling of funds together.
“This to allow for an emergency response to humanitarian crisis in Nigeria. Every other day we hear about crisis, the floods and the rest of it. We need to be able to respond adequately as a country. Beyond this, the issue of poverty alleviation is one of the agendas of President Bola Ahmed Tinubu in his eight-point agenda and we want to be able to tackle it headlong.
”Every year we hope to be able to raise at least $5 billion within this fund and this is from the various sources that I’ve mentioned and even more. We are hopeful that with the creation of this funding, we can sit down with all the key stakeholders, including other ministries, and actually work out the full modality of implementation in Nigeria.”
The minister said that FEC also approved the ratification of the Protocol on the protection of the rights of older persons in Nigeria.
“We have signed up to the African charter and this has made us one of the countries within Africa that has approved that older people be protected and should not be discriminated against at any level and this gives them a lot of protection and the government of President Bola Ahmed Tinubu is interested in their welfare and protecting their rights”, she said.
”With the mindset of driving away the local population and moving in to explore, it’s technology that is helping us decipher these. We are working with the National Security Adviser (Nuhu Ribadu) the Inspector General of Police Kayode Egbetokun),” Edu added.
Education Minister Mamman spoke on President Bola Tinubu’s administration’s poise to reduce or eradicate out-of-school children menace in the country.
Mamman said: ”Initially, from seven participating states, we now have about 11 additional states participating in this project, which will lead to the empowerment of girls between 10 to 20 years right across the participating states.
”This is a very major escalation of this programme that is meant to empower our girls, our teachers and the provision for additional schools in the country.”
[Nation]
FORMER Chairman of the Independent National Electoral Commission, Attahiru Jega, has denied describing the 2023 elections as compromised.
Jega was allegedly reported to have said this at a two-day retreat organized by the Senate in Ikot Ipene, Akwa Ibom State, last week.
The professor of political science at Bayero University, Kano, presented a paper titled, “Electoral Reform and Democratic Consolidation in Nigeria: Review of 2022 Electoral Act (areas for further legislative actions), in which he was quoted to have said, “We have seen in 2023 elections, the damaging effect of how people in the corridors of power get their client/partisan nominees appointed, without being thoroughly screened, and then they are influenced to compromise the integrity of elections.”
However, his Senior Research Assistant, Hamman-Obels, in a statement today, said the report was not an accurate reflection of his position.
Hamman-Obels, who is also the Director of the Electoral Hub, an Initiative for Research, Innovation and Advocacy in Development said, “The attention of Prof. Attahiru Jega has been drawn to a misleading report published in a number of online newspapers quoting him to have commented that the 2023 elections were compromised.
“The report making the rounds is incorrect and not an accurate reflection of the presenter’s position. Professor Jega categorically denies making this particular comment about the 2023 polls.
“As would be seen in his presentation he made at the Senate Retreat held in Ikot Ipene, Akwa Ibom State, nowhere did he make such a statement that the 2023 elections were compromised. Professor Jega hopes this rebuttal will correct the incorrect and inaccurate reporting currently making the rounds.”
[NaijaTimes]
On Monday, President Bola Tinubu presided over the third Federal Executive Council (FEC) meeting of his administration at the Council Chambers of the State House in Abuja.
Attending the meeting were Secretary to the Government of the Federation George Akume, Head of the Civil Service of the Federation Dr. Folashade Yemi-Esan, Chief of Staff to the President Hon. Femi Gbajabiamila, and National Security Adviser Nuhu Ribadu.
Absent from the meeting were Vice President Kashim Shettima, who is currently in the United States of America, as well as some ministers including those of Culture, Art and Creative Economy, Hannatu Musawa, and the Minister of Tourism, Lola Ade-John, among others.
Last Monday, Minister of Information and National Orientation Mohammed Idris announced that council meetings will now be held on Mondays instead of Wednesdays. Idris stated that meetings will only take place when there are pressing issues to be discussed, meaning they may not occur every week.
Popular Yoruba nation agitator, Sunday Adeyemo, also known as Igboho, has called on the Department of State Services (DSS), Nigeria Security and Civil Defence Corps (NSCDC), and the Nigerian Army to investigate the recent killings of farmers in Oyo and Ogun states.
Igboho is urging the security agencies to ensure that the perpetrators behind these killings are apprehended and held accountable for their actions.
In the Iwere-Ile community of Iwajowa Local Government Area and other towns in the Oke Ogun axis of Oyo, farmers have been killed by suspected herders. In response to these incidents, Igboho emphasizes the urgent need for security agencies to address the clashes between rogue herdsmen and farmers in parts of Ogun.
Part of a statement that Igboho personally signed reads: “We are calling on the Police, the Department of State Security (DSS), Nigeria Security and Civil Defence Corps (NSCDC), and the Nigerian Army to address the fragile security breaches now before the situation gets out of hand.”
“We are saddened that the killings of our farmers, who are innocently earning their living, have resurfaced. This alarming development demands reflection, considering the current hardships in the country.”
“The recent ambush and killing of operatives of the Amotekun Security Corps, along with other security agents who were attempting to restore peace in the Iwere-Ile community after the suspected herdsmen had murdered our fellow kinsmen, must be investigated, and the culprits must face justice.”
“While we commend Oyo State Governor, Engineer ‘Seyi Makinde, and his counterpart in Ogun, Prince Dapo Abiodun, for their efforts to ensure peace and development in their respective states, we challenge the heads of security agencies to take action now before the situation worsens.”
In Kwara Command, the Nigeria Immigration Service (NIS) has revealed that there are 3,000 international passports waiting to be collected by applicants.
Alhaji Baba Aliyu, the outgoing Comptroller of Passports in the Command, made this disclosure during a retirement party held in his honor in Ilorin, speaking to the News Agency of Nigeria (NAN).
Aliyu called on the Federal Government to impose sanctions on these individuals, noting that many of the applicants could not be reached through the phone numbers provided in their applications.
“We usually send SMS messages to the contact addresses and phone numbers given by the applicants, but some of them failed to receive the messages because the numbers provided are fake,” Aliyu explained.
He further stated, “Some applicants may have passed away, while others may have chosen not to collect their passports because they did not meet their intended purposes for acquiring them. Regardless of the reasons, passports should not be abandoned as they serve many functions apart from being travel documents.”
The Comptroller of Passports clarified that the abandoned passports were not only from individuals in Kwara State but from applicants across different parts of Nigeria.
Aliyu urged applicants to visit the Immigration Office and collect their passports.
Additionally, he encouraged Nigerians who wish to obtain international passports to visit the immigration.gov.ng website for the application process, highlighting that it takes just two weeks to acquire a new passport or renew an expired one.
The Supreme Court has dismissed the appeal lodged by the Allied Peoples Movement (APM) in opposition to Kashim Shettima’s selection as the Vice-Presidential candidate of the All Progressives Congress (APC) in the last general election.
A panel of seven members, led by Justice John Okoro, announced the dismissal of the appeal when the appellant’s lawyer, Chukwuma Majukwu Umeh, requested to withdraw it.
At the mention of the appeal, members of the panel had noted that it was frivolous because the Supreme Court had, in an earlier case of Peoples Democratic Party (PDP) v. INEC and others, resolved this issue that Shettima was properly nominated.
Justice Okoro directly questioned Umeh about what advantages he believed his client could derive from the case’s conclusion, aside from exacerbating the court’s burden.
Umeh had made efforts to distinguish his client’s case from that of the PDP v. INEC and others, but later had a change of mind when Justice Okoro insisted that the appeal lacked any utilitarian value.
More details later…
[NationalDaily]
The Supreme Court has adjourned the appeals challenging the victory of President Bola Ahmed Tinubu in the February 25 election.
Naija News recalls that the Independent National Electoral Commission (INEC) had declared Tinubu of the All Progressives Congress (APC) winner of the election, but Atiku Abubakar of the Peoples Democratic Party (PDP) alongside Peter Obi of Labour Party (LP) rejected the result and headed for the court.
The duo challenged the election result alongside the Allied Peoples Movement (APM) candidate, but the Presidential Election Petition Tribunal struck out their appeals.
Unsatisfied with the PEPT judgement, the three political parties filed appeals at the Supreme Court, which heard the matter on Monday.
However, APM on Monday announced the withdrawal of its appeal during the proceedings at the apex court while PDP and LP continued with their cases.
The appellant’s lawyer, Chukwuma Majukwu Umeh, applied to withdraw it.
Following the withdrawal, the Supreme Court dismissed the appeal for lack of merit.
In dismissing the appeal, members of the Supreme Court panel noted that it was a frivolous case because the apex court, in an earlier case of Peoples Democratic Party (PDP) v. INEC and others, resolved the issue that Shettima was properly nominated.
The 7-member panel led by Justice John Okoro however adjourned the matter of the PDP and LP after the arguments of lawyers of the respective parties.
Okoro held, “This appeal is reserved for judgement until a date to be communicated to parties.”
Former governor of Ekiti State and chieftain of the opposition Peoples Democratic Party, Ayodele Fayose, on Sunday, commended the performance of incumbent Governor Biodun Oyebanji of the ruling All Progressives Congress.
Fayose, who spoke at a special thanksgiving service at Cathedral Church of Emmanuel Okesa, Ado Ekiti to mark Oyebanji administration’s first year in office, said not only will Oyebanji successfully complete his first term, but he would also get reelection for a second term.
Fayose spoke on behalf of ex-governors of the state, Niyi Adebayo and Kayode Fayemi.
He said, “We are all together for Biodun Oyebanji. I am not a member of your party (APC) and I will not be. I am with you (Oyebanji) hundred per cent.
“Where is Bisi K (Chief Bisi Kolawole, PDP 2022 governorship candidate)? We are going to support you (Oyebanji). You have come to visit me at my house seven times. You are doing it differently and you will get a different result. This church will pray for you and you will do it (governorship) a second time.”
In his remarks, Adebayo said Fayose’s assertion “is the position of we, the former governors. Thank you very much.”
The Senate Leader, Senator Opeyemi Bamidele, who spoke earlier, said, “I am looking forward to being the chairman of your (Oyebanji’s) re-election campaign,” adding that “the governor has earned the confidence and trust of the people for a second term.”
Bamidele, who represented the Senate President, Godswill Akpabio, said, “Governor Oyebanji is entrenching the culture of respect and the culture of performance. He is lucky to have Governors Adebayo, Fayose and Fayemi as mentors and advisers. What he is doing differently is that he is giving the state a new political order, uniting various groups where youths, women, and civil societies consider themselves as stakeholders.
Making his remarks, Oyebanji said he counted himself lucky to be standing on the shoulders of the former governors, whom he described as “giants”.
“Today is about God in our life as people of Ekiti State. It is not because I am the best person in the state or because I know how to do it; it’s not because I am the most brilliant, all is by the grace of God. For the little we have achieved, I give God the glory,” he said.
In his sermon, the Bishop of the Diocese of Ekiti, the Church of Nigeria, Anglican Communion, the Rt. Revd Olusola Ajayi, hailed Oyebanji for making a positive impact in the lives of the people of the state in the last year.
President Bola Ahmed Tinubu has announced that the Student Loan Scheme payment will commence in January 2024.
Naija News reports that Tinubu gave the assurance on Monday while speaking at the 29th edition of the annual Nigerian Economic Summit, anchored by the Nigerian Economic Summit Group (NESG), at the Transcorp Hilton, Abuja.
He also reiterated that his administration will end industrial actions in the nation’s academic environment.
Speaking on plans to stabilise the economy, with the collaboration of all stakeholders, especially the private sector, Tinubu stressed the need to immediately initiate a sustainable credit scheme, which he said would aid an effective anti-corruption campaign.
He said: “By January 2024, the new Students Loan Programme must commence. To the future of our children and students we’re saying no more strikes.
“There must be consumer credit, scheme will have to come to effect as soon as possible. I thank my team and my colleagues to build this programme, develop it now. We cannot talk about anti-corruption when you have to look for cash to buy a car, when there’s no mortgage for homeownership.”
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The Allied Peoples Movement (APM) made a surprising decision on Monday at the Supreme Court, as they dramatically withdrew their petition challenging the nomination of President Bola Tinubu for the last presidential election.
APM had alleged that Kashim Shettima, who later became a vice presidential candidate to Tinubu, engaged in double nominations, making Tinubu’s candidacy unlawful and unconstitutional.
The party argued that the withdrawal of Kabiru Masari as the initial vice presidential candidate and placeholder was not in accordance with the law.
During Monday’s proceedings, APM’s counsel, Chukwuma Machukwu Ume SAN, faced questioning in the case.
Justice John Inyang Okoro interjected, reminding Ume that the Supreme Court had previously ruled that matters relating to candidate nominations for elections are internal affairs of political parties.
The Presiding Justice also emphasized that even if judgment was in favor of APM, it would not benefit the party in any way.
Taking note of these remarks from the court, Ume applied to withdraw the appeal in order to lessen the court’s workload.
Chief Wole Olanipekun SAN, representing Tinubu; Abubakar Mahmoud SAN, representing the Independent National Electoral Commission (INEC); and Akin Olujinmi SAN, representing the All Progressives Congress (APC), raised no objections to the withdrawal. Consequently, Justice John Okoro dismissed the appeal.
The dismissal did not come with any cost against APM or its lead lawyer.
In the meantime, the hearing for the appeal filed by the Labour Party candidate, Peter Obi, has commenced.
The High Court sitting in Adamawa State has fixed a date for the arraignment of the suspended Resident Electoral Commissioner (REC), Hudu Yunusa-Ari.
Naija News gathered that the court scheduled the arraignment for November 6th, 2023.
Hudu faces multiple charges including announcing false electoral results, breaching his oath of neutrality, disorderly conduct during elections, inciting disturbance, and personating a public servant.
Ari in a controversial manner, announced the governorship candidate of the All Progressives Congress (APC), Aishatu “Binani” Dahiru as the winner of the Adamawa governorship while the collation of the April 15 supplementary election was still ongoing.
The suspended REC had said that he announced the results of 69 polling units in the supplementary poll due to security pressure. He was suspended and grilled by the police.
The arraignment which was initially set for July 27th, 2023, was delayed due to the REC’s failure to appear in court.
The development saw Justice Benjamin Manji Lawan adjourned the case for the third time.
The court then set October 23rd, 2023, to enable the electoral umpire to arraign its suspended officer for alleged electoral offences.
Unfortunately, the scheduled arraignment could not take place as planned, due to the court’s inability to sit.
This comes days after the Chief Press Secretary (CPS) to the Chairman of INEC, Rotimi Oyekanmi, said the commission is in court with Ari.
Oyekanmi, however, in a recent interview, said the commission is waiting for the prosecution board to take over Yari’s prosecution.
In an effort to address poor waste disposal practices and other environmental sanitation offenses, the Lagos State Government has taken the decision to seal the Alaba International Market.
On social media platform X, the Commissioner for Environment, Tokunbo Wahab, announced this development on Monday.
Wahab stated that the market was closed due to its failure to adhere to proper waste disposal practices, failure to pay waste bills, and various other gross environmental sanitation offenses.
“Alaba International Market, Ojo, has been sealed off due to its poor waste disposal practices, failure to pay waste bills, and numerous gross environmental sanitation offenses,” Wahab wrote on X.
Fourteen officials of the Lagos State Traffic Management Authority caught at different locations across the state extorting money from motorists are set to face a disciplinary panel.
The agency’s Public Relations Officer, Adebayo Taofiq, disclosed this in a statement made available to journalists on Sunday.
According to the statement, the 14 male officials include 11 officials on the senior cadre and three junior officials.
Taofiq quoted the agency’s General Manager, Mr Bolaji Oreagba, as saying that the cases against them had been investigated and that the next phase was for them to face the panel.
He added that to get rid of the individuals tarnishing the agency’s reputation, the agency would continue to mete out severe punishment on officers who act contrary to the law.
He also cautioned the public to stop bribing LASTMA officials.
The statement partly read, “The General Manager of LASTMA, Mr Bolaji Oreagba, disclosed that these affected officers whose cases have been investigated would be facing a government disciplinary committee known as the Personnel Management Board which would adjudicate their cases in line with the Public Service Rules.
“According to Mr Oreagba, the 14 male officers (11 seniors and three juniors) were caught at different locations across the state extorting money (bribes) from motorists.
“He said the agency would continue to mete out stiff and severe punishment on officers and men in its efforts to weed the agency of a few bad elements tarnishing its image.
“We thereby call on residents, especially the motoring public, to support us by promptly reporting any errant officers at the nearest LASTMA offices or use any of the agency’s complaints hotlines with proof of evidence.”