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NIGERIA

FG to fund N104.5bn electricity tariff shortfall

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The Federal Government will fund a tariff shortfall of N104.5bn that will be recorded by electricity distribution companies from September to December 2020, according to the Nigerian Electricity Regulatory Commission.

The Discos had early this month announced what they called “new service reflective tariff,” which took effect from September 1, 2020, with the tariffs being charged residential consumers receiving a minimum of 12 hours of power supply rising by over 70 percent.

Tariff shortfall is the difference between the Discos’ revenue requirements and what they are allowed to recover from their customers by the regulator.

According to a NERC document, the Ibadan Electricity Distribution Company has the highest tariff shortfall of N15.67bn, followed by Benin Disco, with a shortfall of N12.27bn.

Jos, Port Harcourt, Abuja, and Enugu have tariff shortfalls of N11.52bn, N10.98bn, N10.33bn, and N8.59bn respectively.

Eko, Ikeja, Kaduna, Kano, and Yola have tariff shortfalls of N8.15bn, N7.64bn, N7.50bn and N6.47bn respectively.

NERC said the Power Sector Recovery Plan provided for a gradual transition to cost-reflective tariffs with safeguards for the less privileged in the society, adding that full cost-reflective tariffs would be charged by July 2021.

“The Federal Government, under the PSRP Financing Plan, has committed to fund the revenue gap arising from the difference between cost-reflective tariffs determined by the commission and the actual end-user tariffs during the transition to cost-reflective tariffs,” it added.

According to the commission, all the Discos are obligated to settle their market invoices in full as adjusted and netted off by applicable tariff shortfall approved by the commission.

It said, “All the FGN intervention from the financing plan of the PSRP for funding tariff shortfall shall be applied through the Nigeria Bulk Electricity Trading Plc and the market operator to ensure 100 percent settlement of invoices issued by market participants.

It said the Discos would be liable to relevant penalties/sanctions for failure to meet the minimum remittance requirement in any payment cycle in accordance with the terms of its respective contracts with the Nigerian Bulk Electricity Trading and the Market Operator, an arm of the Transmission Company of Nigeria.

The distribution and generation companies carved out of the defunct Power Holding Company of Nigeria were handed over to private investors on November 1, 2013, following the privatization of the power sector.

Almost seven years after the privatization, the investors who took over the power firms that emerged after the unbundling of the Power Holding Company of Nigeria are still grappling with the old problems in the sector.

The sector is plagued with problems of gas supply shortage, limited distribution networks, limited transmission line capacity, huge metering gap, electricity theft, and high technical and commercial losses, among others.

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NIGERIA

Ijaw nation vows to resist national water resources bill

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Following its earlier condemnation by different groups and individuals, the Ijaw Nations Development Group (INDG) has condemned the reintroduction of the National Water Resources Bill in the National Assembly, vowing to resist it vehemently.

The INDG described the bill as not only provocative but also a complete distortion of Nigeria’s federalism, insisting that reintroduction of the bill was the height of insensitivity to the plight of ordinary Nigerians.

Ijaw stakeholders, who stated this yesterday during a virtual meeting attended by over 100 participants, lamented that the Federal Government sent the bill to the National Assembly without engaging the states and peoples that are the direct stakeholders but only acknowledged them as footnotes.

The Keynote Speaker at the meeting, Anthony George-Ikoli (SAN), described the bill as a deleterious agenda.

“Taking a critical look at the National Water Resources Bill 2020, currently in the legislature and our national consciousness, I am compelled to align myself with more speakers, who in recent times, have come to the conclusion that such a bill can only be the product of an undisclosed, deleterious agenda,” he said.

He explained that true federalism usually serves to recognize the rights of the constituent units to ownership and protection of the same, noting that by its vesting sections, the bill represented an egregious distortion of federalism.

“The Federal Government has not only deprived the states of the minerals and mineral oil in the land within their territories, but it is also now plotting to take the only resource left for the states to administer for the benefit of their people through the National Water Resources Bill,” he added.

He said the time was past when the Ijaw nation would sit aloof and watch, but it was time to set an agenda for its legislators at all levels.

Another speaker and Niger Delta activist, Ann Kio-Briggs, said it was disheartening that the Federal Government was tampering with the rights of Ijaw people and the Niger Delta region.

“Water represents life and belongs to my people, we live on and by the water. For the first time, the Ijaw have to wake up because they have taken our land, oil, and air through pollution and now, they want to take our water. It is our responsibility to protect our rights,” she stated.

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NIGERIA

Finally, APC concedes defeat, admits Edo poll free, fair

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The governing All Progressives Congress on Monday conceded defeat 24 hours after Governor Godwin Obaseki, of the Peoples Democratic Party, was declared the winner of the Edo Governorship Election.

Chairman of the Caretaker/Extra-Ordinary National Convention Planning Committee, Mai Mala Buni, in a statement titled, “Edo State Governorship Election: Victory for Democracy,” which he signed, congratulated Obaseki over his victory.

Buni said,  “Edo State Governorship election is over, the winner has been declared by the Independent National Electoral Commission in the person of the Mr. Godwin Obaseki, candidate of the People Democratic Party.

“We hereby congratulate the winner of the election, the people of Edo State and all Nigerians. The peaceful conduct of the election and its outcome represent a victory for Nigeria’s democracy

“As a party, we join our leader, President Muhammadu Buhari GCFR, to affirm our ‘commitment to free and fair elections’ in order to strengthen ‘the foundation for our political and moral authority.

“ We commend INEC, our security agencies, and all political parties that contested the election for the successful conduct of the election. As a governing party, we will take every step necessary to support the Federal Government to consolidate all the gains achieved. “

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NIGERIA

Government has no business running refineries — Osinbajo

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The Vice President, Prof. Yemi Osinbajo, has said the problems associated with Nigeria’s refineries will persist if the Federal Government continues to own and run them.

He noted that experience has shown that refineries were better managed by the private sector hence the need for the government to restrict itself to providing the regulatory framework for such businesses to thrive.

Osinbajo said this at a virtual meeting organized for the All Progressives Congress bloggers and social media influencers at the APC National Secretariat, in Abuja, Monday.

According to him, it was time for the nation to do more to develop its gas and renewable energy resources which are cheaper and cleaner.

He said, “If the refinery is left in the hands of the government, it will continue to experience the same problem it is experiencing now. I do not think that it is the business of the government to run the refinery. It should be the business of the private sector, which is why we are trying to focus on assisting the private sector to develop modular refineries.”

Speaking further Osinbajo said, “There is a 100,000-barrel capacity refinery about to come on stream and we hope it will by the next year. It is completely private and closely located near the Port Harcourt refinery so that it can share the facilities of the Port Harcourt refinery. We are hopeful it will come on stream in the first quarter of next year.

“There are also six modular refineries that are almost ready. There is a Niger Delta Petroleum refinery in Delta state, there is another one in Imo, there is also another modular refinery in Edo State.

“We engaged the oil-producing communities to find a new vision for the Niger Delta and we tried to encourage modular refinery that will give the people in the oil-producing states a stake so that the modular refinery is not just private but the people there have some stake and equity.

“The whole idea is to support as many private refineries as possible. We are also waiting for the Dangote Refinery with 250,000 barrels capacity which is bigger than all of the government refineries put together.

“In the next two or three months, we will see the private sector playing a bigger role and things will quickly improve. We hope that this particular effort will complete the refurbishment of the refineries which will be completed soon but I am more hopeful of the private effort been the key to the future.”

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