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ELECTRICITY: As Power Sector Debt Rises Amidst Low Electricity Supply NERC Begs FG To Intervene

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The Nigerian Electricity Regulatory Commission (NERC) said it has communicated the need for the Federal Government to intervene over the longstanding trend of non-payment and debts by international customers, and others to the power sector.

This was contained in the 2023 fourth-quarter report, the latest, obtained by thecolumn.ng

 

According to the report, as of the quarter under review, electricity Distribution Companies also known as the DisCos, and four international customers serviced by the Market Operator, did not remit a total of ₦97.5bn to the power sector in the fourth quarter of 2023.

 

Statistics obtained from the Nigerian Electricity Regulatory Commission’s 2023 fourth quarter report, said the 11 DisCos held unto ₦81bn, while four international customers (Paras SBEE, Transcorp SBEE, Mainstream NIGELEC and Odu-Pani-CEET ), did not remit $12m (₦16.5 when converted using ₦1,367/$1 rate) invoice issued to them by the MO for services rendered in 2023/Q4.

 

This puts total debt by the DisCos and international customers at ₦97.5bn for the period under review.

A breakdown of the explanation of the debt by the DisCos, showed that in 2023/Q4, the cumulative upstream invoice payable by DisCos was approximately ₦270bn, consisting of ₦223bn for generation costs from the Nigerian Bulk Electricity Trading (NBET) company, and about ₦47bn for transmission and administrative services by the MO.

 

 

However, out of this amount, the DisCos collectively remitted a total sum of ₦188.7bn (₦156bn for NBET and ₦32.5bn for MO), with an outstanding balance of about ₦81bn. This translates to a remittance performance of about 70 per cent in 2023/Q4 compared to the 76 per cent (remittance of ₦158bn out of the total invoice of ₦208.7bn) recorded in 2023/Q3.

 

 

The total revenue collected by all DisCos in 2023/Q4 was ₦294.9bn out of the ₦399.7bn that was billed to customers. This translates to a collection efficiency of 74 per cent. In comparison, the total revenue collected by all DisCos in 2023/Q3 was ₦268bn, out of the ₦349bn billed to customers which translated to a 76 per cent collection efficiency. The 74 per cent collection efficiency recorded in 2023/Q4 is –2.77per cent lower than the efficiency recorded in 2023/Q3 (76 per cent).

 

 

The report further detailed that none of the four international customers being supplied by GenCos in the Nigerian Electricity Supply Industry (NESI), made payment against the cumulative invoice of $12.02m issued by the MO for services rendered in 2023/Q4.

The report, however, noted that some international customers made payments during 2023/Q4 for outstanding MO invoices from previous quarters.

 

 

It also said that there were no remittances by bilateral customers against the cumulative invoice of ₦1.9m issued to them by the MO for services rendered in 2023/Q4.

 

The recurrent delay of remittances by international and bilateral customers, NERC said should prompt the MO “to invoke the provision of the market rules to curtail the payment indiscipline being exhibited by the various market participants”.

 

The special customer (Ajaokuta Steel Co. Ltd and the host community) did not also make any payment towards the ₦0.72bn (NBET) and ₦0.07bn (MO) invoices received in 2023/Q4.

“This continues a longstanding trend of non-payment by this customer and the Commission has communicated the need for intervention on this issue to the relevant FGN ministries,” NERC added.

 

 

The power sector debt continues to rise, as the country battles inadequate power supply as a result of low generation.

The GenCos currently generate about 5000 megawatts (MW) despite the grid having a combined capacity of about 12,000 MW.

 

 

Experts have said Nigeria’s over 200 million populace requires at least 30, 000MW to attain sufficiency.

Despite even the meagre 5000MW power generation, the Transmission Company of Nigeria (TCN), has struggled to transmit same to the DisCos for onward distribution to end users.

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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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