Editorial
Lockdown: In Support Of Free Power Supply
Apparently jolted by the excruciating effects of the nationwide lockdown on Nigerians, occasioned by the outbreak of Coronavirus pandemic in the country, the National Assembly (NASS) recently mooted the idea of giving free electricity to Nigerians for two months.
The idea seems to be the most populist conjecture and act of parliament from the Nigerian legislature since the country returned to democracy in 1999 which, if implemented, will serve as the best single elixir to the Nigerian masses during this critical period.
It is gratifying to also note that the power distribution companies (DISCOs) have aligned with the NASS’ proposal but with a proviso.
Speaking through their umbrella body, the Association of Nigerian Electricity Distributors (ANED), the power firms said they were aligning with NASS and Federal Government’s efforts to provide free electricity for two months as a palliative for the effects of the COVID-19 pandemic on Nigerian electricity consumers. They were, however, quick to clarify that the Federal Government, and not the DISCOs, would pay for the two-month bills.
The Executive Director and spokesperson for ANED, Sunday Oduntan, said, “The energy to be supplied for the two months is not free from the DISCOs but is being paid for by the Federal Government in partnership with NASS.
“As such, the ability for the DISCOs to go forward is subject to the stimulus package being passed by the National Assembly and signed into law by Mr. President.
“While this palliative seeks to mitigate the economic challenges that Nigerians are being subjected to during this COVID-19 period, it is our hope that we do not lose sight of the no-cost reflective tariff challenges that the DISCOs continue to suffer under”.
He said further that customers may not enjoy the free electricity supply until NASS finishes its discussion with the Federal Government.
The Tide also supports the NASS’ proposal. We consider the two-month free electricity supply as a necessary buffer to Nigerians at this critical period.
Our worry, however, is the unclear picture coming from all the parties involved in the bargain. From all indications, it is apparent that no decision has been taken by the Federal Government on the issue.
Instances of this abound from the reactions of the Federal Government to the position of DISCOs that the government would pick the bill for the two months. The Federal Government, through a verified Twitter handle of the Ministry of Power, said the two-month free power supply to Nigerians was still a mere conjecture that has not received the imprimatur of the government.
“Please note: “NO DECISION has been taken by the Federal Government to provide Nigerians with FREE ELECTRICITY for 2 months. If and when that becomes a reality, it shall be announced officially.
“Be rest assured that FG is exploring ways to ameliorate any hardship on Nigerians”, the statement said.
Another evidence that lends credence to the Federal Government’s lackadaisical posture on the issue came from the power generating companies (GENCOs). Reacting to a recent statement credited to the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mele Kyari, that the Federal Government had paid over N200 billion for power supply in the country to offset GENCOs’ gas bill, GENCOs denied knowledge of the payment.
The Executive Secretary of the Association of Power Generating Companies, the umbrella body for GENCOs, said she was not aware of any N200 billion payments, explaining that what GENCOs have received is payment for energy produced and consumed for 2019.
“GENCOs have not received any funds of any nomenclature – palliative, stimulus or Coronavirus funds. We are currently being paid the money owed for 2019. We take exceptions to our name being used to score political points”, she said.
The Tide considers the conflicting reports coming from all the stakeholders in the power industry as confusing and unfortunate. We hope that the whole proposal to provide Nigerians free electricity for two months is not a hoax designed to give Nigerians false hope. We, therefore, call on the Federal Government to come out with a clear position on the issue.
We are not unaware of the various efforts being put in place by the Federal Government and various state governments to cushion the hardships being inflicted on Nigerians by the lockdown, but we strongly believe that one of the best stimulus packages for a vast majority of Nigerians is free electricity supply.
Saving Nigerians the cost of paying for two-month utility bills would have the highest impact on the entire strata of the Nigerian society, especially at this period when over 80 percent of the citizenry have been overstretched by the economic lockdown.
We, therefore, call on both NASS and the Federal Government to work out modalities with the GENCOs, transmission company (TCN) and DISCOs and save Nigerians the burden of paying for electricity, not just for two months, but as long as the lockdown lasts. This will go a long way in mitigating the economic challenges facing millions of Nigerians at this critical period.
Meanwhile, we urge DISCOs to be more efficient and effective in distributing electricity to Nigerians during the sit-at-home period to reduce boredom and to enable Nigerians access information on COVID-19.
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