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ELECTRICITY: NLC, Manufacturers, CSOs Reject Electricity Tariff Hike.

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The Nigeria Labour congress, Manufacturers and some civil  society Organisations CSOs have kicked against the Federal Government’s 240 per cent hike in the tariff payable by electricity users enjoying a 20-hour power supply.

 

 

They insisted on the electricity subsidy, warning that its removal would send manufacturers out of business and worsen inflation.

 

 

The subsidy on electricity has been withdrawn completely from the tariff payable by power consumers in the Band A category, who constitute about 15 per cent of the total number of power users across the country.

 

 

The government announced the hike in the electricity bill at a press briefing in Abuja by NERC on Wednesday, adding that those affected would now pay a tariff of N225 per kilowatt-hour, up from the previous rate of N68/kWh, representing about 240 per cent increase. The government declared that the decision took effect from Wednesday (yesterday).

But the organised private sector, Nigeria Labour Congress, as well as the Trade Union Congress, kicked against the hiked tariff for power users, whether it was for those on Band A or not.

 

 

They argued that the hike in tariff would send manufacturers out of business, worsen inflation, and stifle small and medium enterprises, adding that no place in Nigeria enjoyed up to 20 hours of power supply daily.

 

 

Band A power users are those who get up to 20 hours supply of electricity daily and paid about N68/kWh before the implementation of this latest order by the Federal Government through NERC.

The Vice Chairman of NERC, Musiliu Oseni, told journalists in Abuja that the government could not sustain subsidy on electricity and had to devise ways to cut down the about N2.9tn that would be spent on power subsidy this year.

 

 

He explained that customers on Band A represented 15 per cent of the over 12.82 million registered electricity consumers across the country, adding that the commission had also downgraded some customers on this band.

 

Discos feeders downgraded

 

Oseni said the downgrading of some Band A customers to Bands B and C was because of the non-fulfillment of the required hours of electricity provided to them by power distribution companies in their respective franchise areas.

 

He said NERC was able to discover this after deploying technology to ascertain the rate of power supply from the feeders of the Discos meant for Band A power users.

 

“And on that basis, the commission has decided that many of the feeders that the Discos brandish as Band A feeders are not meeting the Band A service, and as such the feeders have been downgraded immediately as a way of protecting consumers.

 

 

“We have over 3,000 Discos feeders. There are over 875 Band A feeders, but upon reviewing the feeders’ performance, the commission has reduced it to under 500 feeders now, which qualify as feeders that currently meet the 20-hour average service.

 

 

“So when you look at that concerning the over 3,000 feeders that we have, it shows that we have just 17 per cent of the total feeders of the distribution companies now qualified as Band A feeders.

 

 

“And when you look at where those 17 per cent feeders critically, it is estimated that just under 15 per cent of customers are benefiting from them, or are currently connected to those feeders, meaning that we have 17 per cent of the total distribution feeders or less than 15 per cent of customers currently benefiting from the service,” Oseni stated.

 

 

He stressed that based on this, “the commission has decided that only the 17 per cent feeders and less than 15 per cent customers will be affected by any rate increase that the commission will approve for the distribution companies.

 

 

“Therefore the commission has issued an order, which is titled April 2024 Supplementary Order, which is supplementary to the order issued in December 2023 effective January 2024.

 

 

“So the April Supplementary Order takes effect from today and in that order, the commission has approved a rate review of N225/kWh for just under 15 per cent of the customer population in NESI. So that means that less than 15 per cent of the customers will be affected.”

 

 

He further noted that many customers previously classified as Band A power users would not be affected because they hardly get a daily average power supply of up to 20 hours.

 

 

Oseni said consumers affected by the latest tariff hike would henceforth pay their power bills completely by themselves, as the applicable subsidies on Bands B, C, D, and E would not be enjoyed by them.

He noted that these Band A customers had almost all the facilities required for the supply of electricity to their domains for 20 hours daily.

 

 

He, however, noted that about 20 per cent of these Band A customers were not metered, and explained that they would now receive a high concentration in terms of metering by the Discos.

 

 

“This, however, does not mean that customers in other bands have been neglected, no. Rather, the Discos will have to provide meters to this category of Band A customers fast, since their tariff is now N225/kWh,” the NERC vice chairman stated.

 

 

On the effect of subsidy in the sector, Oseni said it had been affecting the payments being made to power generation companies, adding that this “led to a situation whereby the Gencos were unable to make payments for gas.

 

 

“That also resulted in the reduction of gas supply for power generation because there is competitive demand for gas. You have so many other companies that require gas and can pay for it.

 

 

“So these issues have compounded the performance of the sector and that led to the dip in power generation that we experienced recently.”

 

 

He further noted that the recent increase in the price of gas for power generation from $2.28/mmbtu to $2.42/mmbu also warranted a hike in the cost of tariff, particularly for Band A customers.

 

Labour kicks

 

However, the NLC described the decision of the Federal Government to hike the electricity tariff as insensitive and callous.

 

 

The NLC’s spokesman, Benson Upah, made this known in an interview with one of our correspondents.

 

He said, “The government’s decision is not only insensitive, it is callous. It further pauperises consumers, especially workers whose wages are fixed and insufficient.

 

 

“It similarly makes the operating environment more hostile for manufacturers with the potential for an astronomical rise in the cost of goods and services or the worst case scenario, more closures and loss of jobs.

 

 

“The only people who stand to gain from this mindless social violence against the people are the World Bank and IMF (International Monetary Fund).”

 

 

On their part, the Trade Union Congress said the Federal Government was only concerned about revenue generation to the detriment and survival of the citizens.

 

The TUC’s Deputy President, Tommy Etim, s said, “The government is being insensitive to the plights of citizens. I think they believe so much in revenue generation to the detriment of the survival of the citizens. Let me state that the hike in the electricity tariff from N66/kWh to N225/kWh for those who enjoy electricity supply for 20 hours per day is unacceptable and a recipe for individual unrest.

 

 

“This shows clearly that Nigeria is not ready for 24-hour electricity supply. As we speak, you cannot point anywhere in Nigeria that people are enjoying 20 hours of electricity supply, not even at the airport where it is expected for economic reasons. I think that the government has goofed again, especially at this time of socioeconomic challenges where the cost of living is very exorbitant and the salary of the workers remained static.”

 

 

Also reacting to the development, members of the organised private sector said the hike would lead to job losses, higher cost of operations, and inflation, among other challenges.

 

 

The President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, said companies would start laying off workers.

 

 

“Well, there would be losses for companies that can’t cope, but in terms of percentage, it is very early to make those projections. We are hoping that members would go back to the drawing board, look at their projected cost of operations, and look at the level of losses they can accommodate or the reduction of profit they can accommodate.

 

 

“And what then happens is that they would have to make some decisions about scaling down operations to cut their losses, which may involve firing people. They may also try to increase prices where their products have a very strong demand. But the bottom line is that we are going to see a lot of our members recording more losses or reduced profits. So that is the primary thing,” Idahosa said.

 

 

He added, “They may decide to fire people that are not critical to operations. They may start with the non-essential staff. A lot of companies are now going on to part-time, offsite, and temporary employment and outsourcing jobs instead of hiring full-time workers. So you are going to see the loss of full-time jobs, loss of part-time jobs, and even the halt in employment.’’

 

 

Idahosa said the move would rapidly increase the operational cost of LCCI members.

 

 

Also, the Head of Corporate Affairs, Small and Medium Enterprises Development Agency, Moshood Lawal, said the hike in tariff would warrant a high rate in the running of businesses.

 

 

“It is already happening now. Small businesses are already experiencing a high rate of running businesses. So it will lead to more higher cost of running a business and prices of commodities are going to go up.

 

 

“We are hopeful that our businesses will survive. We have over the years learned how to be resilient because what we normally teach them is that whatever it will cost to run your business, you build it into the final cost.’’

 

 

The President of the Manufacturers Association of Nigeria, Francis Meshioye, described the development as “unpleasant”, but said the body would issue a statement on it.

 

 

The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Dele Kelvin Oye, warned that the new electricity tariff hike would lead to higher costs of doing business.

 

 

In a statement, he said, “While the commission’s efforts to enhance metering and protect consumers from over-billing are commendable, the tariff hike, influenced by the rise in natural gas base prices, has implications for the cost of operations across businesses that already face a fragile economic recovery.

 

“We understand the necessity of aligning energy costs with market realities to foster sector investment and sustainability. Nevertheless, we stress the importance of considering the broader economic impact on industries and the timing of such adjustments.

 

 

“NACCIMA continues to advocate for a transparent and gradual approach in policy implementation, emphasizing the need for broad stakeholder engagement to mitigate adverse effects on business competitiveness and consumer prices.’’

 

 

On its part, the Centre for the Promotion of Private Enterprise, in a statement signed by its Chief Executive Officer, Muda Yusuf, said that the power sector issue had become a major conundrum in the economy.

 

 

It added that while tariff review was an inevitability, a 300 per cent increase in one fell swoop is difficult to justify.

 

 

The organisation said, “There is a major funding and liquidity crisis which is posing a significant risk to investments in the electricity value chain.

 

 

“Costs across the chain have been rising as a result of the multiple macroeconomic headwinds. Meanwhile, the system is not generating the desired liquidity to match the escalating costs.”

 

 

The centre also argued that beyond tariff hikes, some fundamental issues need to be addressed in the electricity value chain.

These issues, it said, are issues of technical and commercial losses which are yet to be addressed.

 

 

“These are inefficiencies costs that consumers are compelled or expected to pay for as part of the cost recovery argument. And these costs are in billions of naira.

 

 

“There is also the exploitative practice of estimated billing. Millions of electricity consumers are yet to be metered,” it added.

 

 

 

 

 

 

 

 

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Corruption: EFCC Boss Exposes Public Officers ” They Assume Office With Empty Account But Own Millions Of Dollars In 3 Years”

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The Chairman of the Economic and Financial Crimes Commission, EFCC, Ola Olukoyede, says Nigerian politicians steal public funds every minute.

 

He spoke in Abuja at the 80th birthday celebration of former Attorney-General, Kanu Agabi.

Olukoyede said the anti-graft agency receives over 20,000 corruption petitions every year, adding that most of the cases are shocking.

“I receive over 20,000 petitions in a year in respect to public corruption, all terrible. What is going on? Like every minute, public officers take money, and if you go through some of our case files you will weep.

“The way people take national resources and Nigerians are victims of these fraudulent activities. And we must come together for once in our lifetime and say no to the activities of some of our leaders,” Olukoyede said.

The EFCC boss said some public officers resume office with less than N100,000 in their account, but after three years, EFCC will trace millions of dollars to them.

He said some of them build hundreds of houses while still in office, noting that corruption is killing Nigeria.

Olukoyede said public officers must explain what they did in office, stressing that accountability and transparency must guide public service.

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Ogun: Fleeing Father Arrested For Killing Neighbour Who Hugged His Son

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The Ogun State Police Command says, it has arrested 43-year-old Edebiri Temitope, who allegedly beat his neighbour to death with a bamboo stick for hugging his son in Bluestone Treasure Estate, Mowe-Ofada area of Ogun State.

 

The deceased, 38 years old Micheal Oje, a Guidance and Counselling graduate of Benue State University, was accused of hugging and playing rough with the 3-year-old child .

According to Peter Adum, a younger cousin to the deceased, Micheal had just returned from work and the child who lived with them on the same street, ran towards him and hugged him.

He stated that Michael hugged the boy and threw him playfully in the air and caught him, before going into his room to sleep.

Adum said, “While he was sleeping, Adebiri, the father of the boy, came outside and knocked on his door. When Mike came out, the man accused him of playing roughly with his child. Mike explained that he had only hugged the boy and lifted him into the air.

“That was how the man then started slapping Mike. He picked up a bamboo stick from the ground and hit him about three times. Mike fell and died on the spot.”

The suspect was reported to have gone into hiding with his family.

However, the Police Public Relations Officer, DSP Oluseyi Babaseyi on Friday, said the suspect had been arrested and transferred to the State CID, Eleweran, Abeokuta, for further investigation.

“Edebiri Temitope, ‘M’, aged 43 years, who was earlier reported to be at large, has been arrested in connection with the death of Oje Michael Eje, ‘M’.

 

“The suspect has been transferred to the State CID, Eleweran, Abeokuta, for further investigation,” Babaseyi stated.

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Jimoh Ibrahim Defends Tinubu’s Absence At UNGA

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Jimoh Ibrahim, Nigeria’s permanent representative to the United Nations, has defended President Bola Tinubu’s absence at the 81st session of the United Nations General Assembly (UNGA).

 

Ibrahim spoke on a Television program, on Thursday, noting that Tinubu cannot attend the event just to deliver a 15-minute speech.

Mohammed Idris, minister of information and national orientation, had said Tinubu would not attend the 81st UNGA because he is currently on annual leave.

Idris said Tinubu had mandated Vice-President Kashim Shettima to lead Nigeria’s delegation to the high-level session in New York, United States.

The minister’s comment followed criticism from former Vice-President Atiku Abubakar, the presidential candidate of the African Democratic Congress (ADC), who faulted the president’s absence at the gathering.

Atiku had questioned Tinubu’s decision to stay away from the general debate for the third consecutive year, saying the president’s “persistent avoidance” of the United States raises questions.

The former vice-president also questioned why Tinubu did not show up after Ibrahim reportedly said arrangements had been made for the president to sit close to US President Donald Trump at the general assembly.

Atiku further linked Tinubu’s absence to his past legal history in the US and asked: “Is Tinubu afraid that he could become Donald Trump’s next Nicolás Maduro?”

However, Ibrahim said Tinubu’s absence should not be taken as a big deal because many presidents of other countries did not attend the gathering in person.

“What do you think President Tinubu is coming to do?” he queried.

“The presidents are allowed in the UN under UNGA for 15 minutes. Is that the reason why he should board the flight and be here for 15 minutes?”

He said Shettima had, in Tinubu’s absence, attended high-level meetings and met with Nigerians in the diaspora, describing the engagement as ideal.

“This is the kind of engagement we want, not that the president will just be inside the plane and be coming to UNGA for a 15-minute speech. What is the meaning of that? We don’t want that,” Ibrahim said.

Ibrahim, who was appointed chairman of the budget and administration committee for UNGA’s Fifth Committee in June, said 60 percent of those on the speaking list at the gathering were foreign affairs ministers and vice-presidents.

“As permanent representative of Nigeria to the United Nations, if I’m to do a memo to the president at the last minute of boarding the plane to go to UNGA, do you think I will recommend the president to be on his way when 60 percent of the speaking list of 193 countries are ministers and vice-presidents representing their countries?” he queried.

“There are exigencies. If the speaking list is 90 presidents, maybe of course, the president can come. I don’t think the president should come and be where his equivalent is a minister of foreign affairs of another country.”

The envoy also said the country occupied a prominent position at UNGA, arguing that Tinubu’s physical presence was not necessary.

“I promise that Nigeria will be on the front-row seat at UNGA. Are we not on the front-row seat? Nigeria is sitting at number eight seat in the UN under UNGA and America is at number 26th seat at the back of Nigeria’s seat,” he said.

“And you know, Donald Trump didn’t go to sit on his own seat. He came in to give a lecture at the UNGA and went back from there.
“Are you saying that Nigeria is making the impact it is supposed to make globally? Must we have President Tinubu here before we can make the impact?”

Speaking on what the composition of the speaking list implied, Ibrahim said reforms were being planned to increase the impact of the organisation on member-states.

“That is the reform we are taking on effective from October 1st. When I chair the budget and administrative committee, 90 percent of UN resources is spent at the headquarters, while 10 percent goes to member-states,” he said.

“So legitimacy is reduced because member-states are not seeing impacts of the United Nations. We are going to reverse that.”

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