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Opinion: New Electricity Tariffs: Questions-Reuben Abati

Published

4 years ago

January 7, 2020

Editor

By Reuben Abati

The Buhari administration has given Nigerians a most unusual and disturbing New Year Gift, in the form of a proposed increase in electricity tariffs, enforceable from April by the Electricity Distribution Companies (Discos) and to be completed by the end of 2021, with the full backing of the regulator, the Nigerian Electricity Regulatory Commission (NERC). What happened? I am in a state of shock. What we knew, what we saw, before now, indeed what we were told, was that the electricity distribution companies were the weakest links in the electricity supply chain. They were accused of different infractions by the Ministry of Power, the Nigeria Bulk Electricity Trader (NBET) and the NERC which included, failure to abide by the provisions of the National Electricity Power Sector Reform Act (EPSRA), violation in particular of Section 74 thereof; failure to make due remittances to the Bulk Trader resulting in huge debts that had become a problem for the sector, and failure to comply with the metering system.

By October 2019, the NERC had served notice that it was prepared to revoke the licenses of the 11 Discos, should they fail within a 60-day deadline, to give reasons to the contrary in defence of their continued presence in the electricity market. The standard official line was that the Discos were incompetent and ineffective, making the value chain difficult for both the Transmission Company of Nigeria (TCN) and the Generating Companies (GENCOs). The DISCOS insisted that they had done nothing wrong. They complained about (i) the huge cost of doing business in the sector; (ii), the failure of government to enforce cost reflective tariffs in line with the Multi Year Tariff Order (MYTO); (iii) electricity theft, (iv) the non-availability of gas due to vandalism, (v) government’s refusal to engage with stakeholders in the sector and (vi) they alleged that government is the biggest debtor in the market due to the refusal of government departments and agencies to pay electricity bills.

The big take-away for me was the persistent threat by the Federal Government of Nigeria that the DISCOs will be scrapped, or that their licenses will be revoked and re-assigned. It was said quite loudly that the current owners of the licenses got involved in the electricity sector not because they have the technical know-how or the financial muscle, but simply because they were close to the Jonathan administration, which accelerated the power sector reform process. Cast in that shape, the electricity sector became part of the unending navel-gazing, Jonathan-caused-it card that has been consistently played by the Buhari administration.

What is shocking however is that the decision to increase electricity tariffs raises more questions than answers. On the surface of it, the Federal Government and its agents have capitulated to the DISCOs. How and why? At what point did the Federal Government buy into the argument of the DISCOs that the most important challenge in the electricity sector is the payment of cost-reflective tariffs? And how was the 77% increase arrived at, with consumers in the South East having to pay more than the rest of the country? Is this a case of ethnic discrimination? Do consumers under Enugu Disco use more electricity? What formula determined the new proposed rates? Well, they tell us it is all based on “changes in macroeconomic variables and available generation capacity”. Please, what does that mean in common man’s language? We have also been told that the proposed tariff hike is a retrospective adjustment to make up for revenue shortfall for the DISCOs from 2016 -2018. So, should the consumer be punished for the regulator’s failure to respect its own enabling Act? And by the way, in the last four years, electricity tariffs have increased by about 300%.

What we see is an excessive emphasis on revenue and profit by those in charge of the service delivery sectors of the Nigerian economy in general. Nobody cares about the consumer. On all fronts, the Nigerian consumer is left unprotected. He or she is perpetually served the short end of the stick, and violated without consultation or respect for his or her right to be heard. The electricity sector is one of the most inefficient sectors in Nigeria. The national grid collapsed more than 10 times in the year 2019. Every month, we were told that gas pipelines had been vandalized. The DISCOs complained endlessly that they were having problems, but they were merely giving excuses. The regulator towards the end of the year introduced a compulsory metering policy and urged consumers to get properly metered to avoid the menace of estimated billing and the grand corruption that comes with it The DISCOs resisted the metering policy and virtually either refused to support it or adopted measures to frustrate it. They circumvented the terms of the policy. Today, most consumers of electricity remain unmetered. They do not enjoy efficient service. They are billed on the basis of some nebulous categorization called “status.” What “status”? The owners of Yola DISCO pleaded force majeure and threw in the towel, but other DISCOs continue to operate without offering the people premium service. This has angered customers across the country. In Benin, the people once carried placards against the electricity distribution company, the BEDC. In other parts of the country, DISCO officials have been beaten up and given a bloody eye.

On top of it all, the proposed increase in electricity tariffs is insensitive to the feelings of electricity consumers. Many Nigerians insist that they are willing to pay for electricity if they get it on a regular basis – for now, we are a nation in darkness. The people want transparency – the pervasive estimated billing system does not promote that, the DISCOs simply charge as they wish on the basis of nebulous factors. The people want meters, but nobody is taking that seriously. The timing and announcement of the proposed increase are also unfair. It is an unkind New Year Gift to a people confronted with a year of more taxes, with Value Added Tax jumping from 5% in 2019, to 7.5% in 2020 along with other taxes under the Finance Act of 2019. Nigerian workers expect that the increase in the new national minimum wage will be fully implemented in the year 2020, but it is obvious as we enter the new year, that the new minimum wage has already been wiped out by increased inflation and taxation. It is ever so convenient for government to punish the common man. In other countries, governance is aligned to the people’s interests and welfare. In Nigeria, our governors seek to inflict pain and punish the people.

The opaqueness in the electricity sector is another problem. It promises to be worse than what we have seen so far in the oil and gas sector and the inefficiency of the oil corporation, NNPC. We are told on one hand that electricity tariffs will go up in April, while at the same time, the regulator announces that the Federal Government will underwrite N544.8 billion Electricity Tariffs Shortfall in 2020. How? Is that a subsidy? And if so, is there a provision for it in the 2020 Budget? N544.8 billion? How was that figure arrived at?

The Federal Government says the intended increase in electricity tariffs is meant to get the sector back on track. Taxing the poor and the impoverished is not the best way to get anything back on track. The electricity sector is in urgent need of a general review and reform, and there are many issues to be addressed. Cost reflective tariffs under the MYTO regime may make the investors happy, but making consumers happier and protecting their interests should be the priority of government. Will increase in tariffs translate into efficiency? I doubt. Efficient service delivery is important. Will government agencies, the biggest debtors in the electricity sector now pay their debts? We don’t know. Or has there been a quid pro quo at the people’s expense? Is government planning to write off the debts of the DISCOs, and forgive their sins? What has happened to the plan to revoke operational licenses in the sector? Too many questions. But that is Nigeria for you. Nothing is ever straight-forward.

II: The Pope And The Woman He Slapped

On New Year’s Eve, December 31, 2019, Pope Francis slapped a woman’s hand as she clung to him, and grabbed him while he was making the rounds greeting pilgrims at the Vatican. The following morning, the Pope apologized for what he called “yesterday’s bad example”. The footage of the Pope, freeing himself from the woman, with a scowl on his face, has since gone viral, but I am pleased that there are more people in support of the Pope than against him. Significantly, there has been no outrage. The Pope’s apology came swiftly in less than 24 hours but he actually didn’t need to apologize because he did no wrong.

What is established is that the Pope, often decorated with the toga of spotlessness, perfection and sainthood is human after all. He is like us. He is one of us. Like everyone else, if he feels threatened or unsafe, he will try to protect himself. The Pope was reacting to an invasion of his space. It is fine to shake hands but some people don’t know when a handshake sends a different signal. They grab. They linger. Women probably understand this better. The moment a handshake becomes an unwanted and unwelcome gesture; the other party is bound to recoil in horror or anger. That is precisely what the Pope did. He slapped the woman’s hand twice and freed himself.

I do not agree with those who argue that this is an indication of lack of clarity about Church teaching or that it is a case of “violence against women.” In any case, the Pope’s hand swat was just a mere tap. This wasn’t a case of an Anthony Joshua slapping an over-eager Asian woman at St. Peter’s square. Where was Vatican Security by the way? In his Angelus remarks on January 1, the Pope delivered a message of hope and preached about “violence against women.” He has been accused of hypocrisy for that but his critics are again unfair to him because the equivalence that they seek to establish with the event of the night before is false.

For me, by offering an apology, the Pope sets a good example and tone for the new year and decade. He reminds us of a value that is increasingly missing in social relations between the powerful and the ordinary in our world. The Pope is leader of over 2.1 billion Catholics in the world. He controls minds and imaginations. To see the head of such a large congregation getting angry in public, and even getting “physical”, is a reminder of the commonality of human emotions, but his apology in an age when many, especially the powerful and the privileged have lost the capacity to say “I am sorry, I didn’t mean to do that” is the most ennobling aspect of the incident. When last have you as a person, tried to say: “I am sorry”? In today’s world, we rarely apologise for the gaps between acts and intentions. We don’t care enough about the feelings of others. People are just intentionally offensive, be they leaders or followers – and that is why the world is such a troubled place today from Ukraine to Crimea, Iran, Iraq, Syria, Turkey, Israel, Afghanistan, Saudi Arabia, Venezuela, North Korea and the United States. Even when some people try to be contrite and they offer apologies, they sound more like Prince Andrew of the United Kingdom making empty noise about obvious wrongs, or like Jeremy Corbyn’s hollowness on anti-Semitism.

In this matter, we have focused more on the Pope, perhaps understandably. But let the point be made: that the woman who grabbed him is an archetype for followers who do not know their boundaries. Ordinary people tend to cling to leaders, particularly religious leaders. In the Bible, Luke 8: 40-49, the people crowded and pressed against the Lord Jesus Christ and a woman touched Him prompting Him to ask: “Who touched me?” Someone touched me, I know that power has gone out from me”. These days, the people overdo it, because they believe that their salvation lies with that touch, that encounter with the man of power or the symbol of divine authority. Many Christians worship Man rather than God. But it is perfectly normal for the Pope to act like a human being and good for all of us to see that he is just like “us”.

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Lagos-Calabar Coastal Highway: Prioritize Existing Unfinished Projects, Peter Obi Tells FG

Published

5 days ago

April 22, 2024

Eric

Mr. Peter Obi, the Labour Party’s presidential candidate in the 2023 general election, has advised the federal government to prioritize existing unfinished projects spread across the country instead of the Lagos-Calabar coastal highway project.

Obi, in a series of posts on X (formerly Twitter) on Monday, stated that the project was a misplaced priority given the numerous unfinished roads throughout the country.

The former governor of Anambra State mentioned that the budget allocated to the Ministry of Works is insufficient for significant progress on the country’s various unfinished roads, much less their completion.

Obi therefore, advised that the government prioritize the existing infrastructural projects in the country before embarking on any new and colossal projects like the Lagos-Calabar super highway project.

“The Federal Ministry of Works 2024 capital budget of N892,461,262,656.00, additional funding from multilateral loan projects of N94,828,535,243.00, alongside other expected contributions from sources like the China-Exim Bank and the World Bank, will not be enough for serious work on all the critical roads, some of which I enumerated above, let alone their completion.

So, why embark on another huge project that will not be completed in the next 20 or 30 years?

“To do so will only exacerbate the problem of abandoned, uncompleted projects that are not contributing to economic growth and overall development.

“Therefore, while acknowledging the potential benefits of coastal superhighway infrastructure, I urge prioritization of our existing uncompleted projects. We must allocate resources towards repairing and completing existing infrastructure.

“In any development formula, the primary focus should be on completing and rehabilitating existing infrastructure rather than embarking on colossal new projects that may never reach completion within the next 30 years,” Obi said.

Back in March, the Federal Government began constructing the 700-kilometer Lagos-Calabar Coastal Highway, designed to extend through 9 states with two spurs leading to the Northern States.

Recall that former Vice President, Atiku Abubakar, had earlier described the project as a fraud.

“Umahi had announced that Hitech would fully fund the project, and based on this, there was no competitive bidding. He (Umahi) then said that Hitech could only raise just 6% of the money for the pilot phase. This smacks of deceit,” Atiku said.

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2027 Presidential Race: Opposition Parties Under Attack

Published

5 days ago

April 21, 2024

Eric

By Eric Elezuo

While it is still a whole three years before the next general election in 2027, The Boss has learnt that opposition parties in the countries are being muffled to pave the way for the ruling All Progressives Congress (APC) to return to, and retain power.

From the Peoples Democratic Party (PDP), to the Labour Party (LP), and down to the New Nigerian Peoples Paty (NNPP), crises have engulfed the rank and files, in what a source told this paper was the attempt and making of the ruling party, APC, to decimate, destabilize and make redundant the machineries of the opposition parties.

It is believed that by 2027, the apparatuses holding together the various opposition parties would have weakened irredeemably to the extent the country would seemingly nosedive into the inglorious one party state that every civil right advocate and democrats abhor.

It is alleged that all the crises in all the opposition parties are being engineered by the President Bola Tinubu-led ruling APC, with the hope of getting the fibres of their system weakened, thereby luring the members of the crisis-ridden parties into the APC.

Slightly one year after the last presidential election, the two major opposition platforms, Peoples Democratic Party (PDP) and the Labour Party, have separately been embroiled in a crisis of confidence which has diminished their capacity to provide viable opposition to the ruling All Progressives Congress (APC).

The crises in both opposition parties got to a head. The Labour Party led by its national chairman Julius Abure held its much-opposed national convention which was boycotted by its 2023 presidential candidate, Peter Obi; its only governor, Alex Otti of Abia State; federal and state lawmakers elected on its platform, and the organised Labour.

In the Labour Labour, members have been embroiled in endless battle of supremacy with a faction led by Mr. Apapa steadily contesting the leadership of Julius Abure.

Consequently, the presidential candidate of the party in the 2023 elections, Mr. Peter Obi, reverence as a leader in the fold, noting that whatever the party faces presently, that Nigeria’s problems are far bigger than the crises in his party.

The LP has been embroiled in crises — ranging from allegations of misappropriation of funds, and leadership tussle, to calls for the resignation of the party’s national chairman.

TheCable reported that “On March 27, the LP conducted a national convention in Anambra state where Julius Abure was re-elected as its national chairman.

Obi did not attend the convention, fuelling speculations that he may be mulling over ditching the LP for another platform.

Speaking during an appearance on HaveYourSay247, an interactive online session hosted by Rudolf Okonkwo over the weekend, Obi said he is confident that the crises rocking the LP will soon be resolved amicably.

“Whatever is happening in the Labour Party is so minute compared to what is happening in the country,” Obi said.

“So, for me, it is something we will resolve amicably, and it is not anything to worry about. Let us worry about the country.

“Let us worry about how the average Nigerian would be able to have a means of livelihood to be able to eat, that should be our worry.”

Obi said he has no interest in being the party’s leader but only to make sure things are done properly.

“I don’t see what I do in politics as being the leader of any place or not. My position is that just like I always say, I am not desperate to be president of Nigeria, I am desperate to see Nigeria work because I know it can work,” he added.

“We have a more desperate situation. Parties are just a means to be able to contest elections. What is important is that being a leader of a party does not reduce the price of food.

In the PDP, the shenanigans of former Rivers State Governor, Mr. Nyesom Wike, has practically kept the party in constant crisis with many observers concluding that the now Minister of the Federal Capital Territory (FCT) is working for the APC, and is just a mole in the PDP. Wike has denied the allegation, however,

But news filtered in last week as that the immediate past Governor of Rivers State, and Minister may have concluded plans to attend the much advertised National Executive Council (NEC) meeting of the main opposition party, the Peoples Democratic Party (PDP), billed to hold on Thursday, in Abuja.

Impeccable source, who is in the know, told The Boss that the minister, whose membership of the PDP is yet to be revoked even as he frolicks with the ruling All Progressives Congress (APC), and serving in the President Bola Tinubu government as a minister.

The Source told The Boss that Wike’s impending presence at the NEC meeting on Thursday was not unconnected with plans, already hatched with some governors, to weaken the opposition PDP.

“Yes, we have on good authority that FCT minister, Wike is planning to attend the NEC meeting tomorrow all in a bid to weaken the fabrics of the PDP, and pave the way for the continuation of the Tinubu administration come 2027, and by extension, relapse Nigeria to a full blown one party state.

“From every indication, Wike and his co-travellers, are bent on unleashing the same crisis ravaging the third force, Labour Party, and Senator Rabiu Kwankwaso’s Nigerian National People’s Party (NNPP) on the PDP for the APC to remain the only political party in the country, and ensure that Tinubu has no challenger, come 2027,” the Source said.

It would be recalled that Wike has boasted over and again that there’s no opposition against Tinubu’s re-emergence in 2027, and that they have made sure of that. He has been compensated with the Ministerial job after he withdrew support for his party, and supported the APC and Tinubu to emerge as national government.

The Source further revealed that in the attempt to actualize the intended one party state, a lot of funding is ongoing to ensure that concerned stakeholders are ‘settled’ handsomely.

Wike, prior, during and after the 2023 general elections, has been floating in between the two major political parties; the APC and the PDP. While he claim to still be a member of the PDP, he is functioning as a minister in an APC government, mocking the inability of his party to discipline him.

While political stakeholders concluded that the outcome of the Thursday’s PDP NEC meeting will determine the path Nigeria’s political trajectory will take, and that it may portend the end of multi-party system and political democracy if Wike succeeds in his plan; every page of what finally transpired at the meeting pointed to the fact.

The much touted removal of the party chairman, who is believed to be a crony of the Abuja minister, Damagum, retained his seat, with his executives.

“It is very clear to everyone that a lot of money politics is being played to cajole many loyal members of the party, forcing them into frustration, and eventually it of the party. The option afterwards, will be the APC. This, will for all intent and purpose actualize the intended one party state as an APC agenda.

The Musa Rabiu Kwankwaso-led NNPP is not faring better either. The only governor under their ticket, Abba Kabir Yusuf, just had the confidence of their party on him withdrawn. He was fighting for his political life until suddenly it was announced the the APC in Kano has collapsed its structure into the NNPP.

“This is just another APC strategy to actualize their hidden intentions. Time will reveal the very sinister agenda they harboring,” an analyst said.

Much as 2027 is still three years away, but intrigues are in play to render Nigeria a one party state, and perpetuate the APC in power. The three other opposition parties are basically under attack to bring to pass this unpopular agenda.

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Akwa Ibom Government, Governor Umo Eno Receive Top Honors at the 10th Wonders of the World Expo in Lagos

Published

6 days ago

April 21, 2024

Admin

The Akwa Ibom State Government and Governor Pastor Umo Eno were recognized with Travellers Awards at the 10th Wonders of the World Expo in Lagos for their sustained enhancement of infrastructure, support for local talent, and dedication to investment in the tourism sector. The ceremony took place at the National Museum in Onikan, Lagos.

While Akwa Ibom won the Most Active Tourism State of the Year, Governor Eno was adjudged the most Tourism-Friendly Governor of the Year at the event that had Minister of Tourism, Mrs. Lola Ade John in attendance.

According to Amb. Ikechi Uko, Founder/Publisher of ATQ Magazine, the organizers of the event which is in its tenth edition, Akwa Ibom State won the top prize “in recognition of its valiant and resourceful efforts to drive and sustain domestic tourism by promoting the industry.

‘In 2023, Akwa Ibom was one of the states that hosted World Tourism Day (WTD ) events. The state also organized the famous Christmas Unplugged, which featured music, food, and cultures from all 31 LGAs as well as ensured friendly policies.”

While hoping that the Travellers Awards would spur Akwa Ibom to do more to dominate the domestic tourism industry, the organizers hoped that the state would gradually evolve into one of Nigeria’s top international tourism destinations.

That was not all, the state Commissioner of Culture and Tourism, Sir Charles Udoh was also recognized as one of the Top 100 Tourism Personalities in Nigeria for demonstrating exceptional leadership and innovation in the travel and tourism industry, while other Akwa Ibom indigenes and entity were also celebrated: Mrs. Ime Udo, Honorary Special Adviser to the Governor( Tourism) won Tourism Promoter of the Year, Favour Udo won Tourism Photographer of the Year, Loretta Effiong and Prince Uduak Sunday (Qua Tours) were listed among the Tourism Personalities of the Year and Ibom Air won Airline of the Year International.

In his remarks, Sir Charles Udoh, who represented the Governor at the event, thanked the organizers for the awards and noted that Akwa Ibom is certainly enjoying the golden era when it comes to tourism development. He stated that Governor Umo Eno is very keen on making Akwa Ibom a leading tourism destination with his programmes and policies.

He revealed that with the new Victor Attah International Airport nearing completion, the purchase of a ferry for the Oron-Calabar route, new developments along its coastline and the restoration work that will be done at all its major tourism sites, Akwa Ibom is well on the way to becoming the number one destination for all domestic and foreign tourists.

In her speech, Tourism Minister, Mrs. Ade John hailed the organizers for hosting the Expo, where practitioners were lectured by top experts while also rewarding those who have excelled in the past year.

She affirmed that her ministry is open to partnership with public and private sector operators, adding that tourism development can only be successful through collaborative efforts.

The event, which attracted leading and budding tourism professionals, also featured interactive and entertainment sessions.

Apart from Sir Charles Udoh and Mrs. Ime Udo, the Akwa Ibom State delegation, also included: Mr. Michael Effiong James, Senior Special Assistant (Lagos Liaison) to Governor, Mrs. Eme Bassey, Special Assistant to Governor (Lagos Liaison) and Akparawa John Offiong, Deputy Director ( Culture) Ministry of Culture and Tourism.

More photos below: