Business

‘Allow NERC Perform Its Mandate Without Interference’

Published

9 years ago

February 15, 2017

The Bureau of Public Enterprises (BPE) says for privatisation of power to work effectively, the Nigerian Electricity Regulatory Commission (NERC) must be allowed to perform its mandate without interference.
Mr Alex Okoh, the Head, Public Communications made this known in a statement in Abuja .
NERC is the body saddled with the responsibility of regulating the power sector.
He said that the Acting Director General, Dr Vincent Akpotaire, made the appeal at a two-day stakeholder’s interactive dialogue/workshop organised by the joint committees of the National Assembly on Power.
Akpotaire said that NERC must be allowed to fix tariffs in line with the Electric Power Sector Reform Act (EPSRA) without interference from any quarters.
He added that if the tariffs were considered high, the government could decide to mitigate the effects by taking up a percentage of the tariffs instead of outright cancellation.
He cautioned against the blame game in the power sector and appealed to the executive and legislative arms of government and other stakeholders to come together to find solutions to the sector’s challenges.
Akpotaire explained why the Federal Government was being asked to subsidise the Nigeria Electric Supply Industry (NESI).
“The loss levels at the point of privatisation of the power sector, that is the Aggregate Technical, Commercial and Collection (ATC &C) loss of Nigeria was about 50 per cent on the average.
“This could not be fully passed to consumers immediately, to avoid rate shock and consumer rebellion.’’
He also explained why the Central Bank of Nigeria (CBN) gave a loan of N213 billion to the privatised power companies.
“The Multi-Year Tariff Order 2 (2012) that was put in place when investors took over on Nov. 1, 2013, had assumed AT & C loss level of 25 per cent.
“The agreements signed with the investors gave NERC and the Distribution Companies (DISCOs) one year to determine the true ATC and C loss levels which were subsequently found to be about 50 per cent on the average. “Based on the new ATC and C loss levels, a new tariff was issued by NERC with effect from February 2015, but the shortfall that accumulated because of the wrongly assumed ATC and C of 25 per cent from Nov. 1, 2013 to Dec. 31, 2014 amounted to N213 billion.
“Consumers were liable to pay the N213 billion immediately, but the CBN intervention by way of a loan to the DISCOs, enabled NERC to spread the recovery of the money from the consumers over a 10 year period.’’
He also said that the core investors in the DISCOs were not investing heavily in line with the covenants they signed with the government.
This, he said was because the transaction structure compelled investors to raise money and pay for their 60 per cent equity in DISCOs using their own balance sheet.
He added that upon take over, the investors were expected to leverage on the acquired companies’ clean balance sheets to raise additional funds for investments.
“However, financial institutions have refused to lend money to the DISCOs until a cost reflective tariff is approved in line with the agreements and the CBN loan to the industry removed from the books of the DISCOs.’’
Akpotaire said that though the Federal Government owned 40 per cent of the DISCOs, it was not part of the management because it was not funding its shares on the boards.
He said that the performance agreement executed with investors had assigned operational risks to investors.
“The performance agreement provides that a core investor who fails to achieve agreed targets stands the risk of losing his/her equity at the payment of one dollar by the Federal Government.”
He also said that the BPE was on the boards of the power companies since 1988 when the Technical Committee on Privatisation and Commercialisation (TCPC), the agency BPE replaced,was established.
He added that BPE had always represented the Federal Government on the board of any company undergoing reform and privatisation.
“This is on the grounds that it makes it possible for the BPE to have access to all the information it requires to carry out its statutory duties of reform and privatisation.

Business

Boat Mishap Kills Pastor, Wife And Church Members In Brass Water

Published

3 days ago

May 18, 2026

The Tide

A boat accident in Bayelsa state has killed a serving Pastor, Wife and other church members along Brass waterways

The sad incident happened at Odioama in Brass local government area of Bayelsa State when the Pastor, wife and members of his church were in a programme.

?Tide confirmed that the lifeless body of the Pastor’s wife has been found and deposited in a mortuary while the remains of her husband ,the Pastor is yet to be recovered

as search party are still ongoing.

Although the real cause of the boat Mishap is not yet known as at the time of this report, our Correspondent gathered that the identities of the Pastor, wife and church members were not disclosed to the public.

The mishap, Tide gathered occurred on Friday morning when the church members were on a boat transit

The Bayelsa State government and the state police command are yet to issue official statement’s on the sad accident

By: CHINEDU WOSU

Business

Rivers Workers Seek Scrapping Of Contributory Pension Scheme

Published

3 days ago

May 18, 2026

The Tide

The Rivers State Council of Nigeria Civil Service Union has called on the State Government to urgently scrap the contributory pension scheme, describing it as unfavourable to long-serving civil servants in the state.

Chairman of the union, Chukwuka Osuma, said this in an interview with newsmen in Port Harcourt, recently.

Osuma said the current pension structure has continued to worsen post-retirement hardship for workers.

He noted that the contributory pension scheme had failed to provide adequate retirement security for workers who had spent many years in service, especially those approaching retirement age.

According to him, civil servants who had served for more than 20 years were among the worst affected under the scheme, insisting that many retirees could no longer cope with prevailing economic realities.

He also informed that the Union has made moves to showcase their concerns, pleading with Governor Siminalayi Fubara to abolish the pension policy and introduce a more favourable arrangement for affected workers.

“The union was not opposed to pension reforms, the contributory scheme should only apply to newly employed workers or those with fewer years in service”, he said.

Osuma explained that workers who had already spent decades in the civil service ought to remain under a more secure pension structure capable of guaranteeing stability after retirement.

The labour leader further noted that inflation and the rising cost of living had continued to erode the value of retirement savings, thereby increasing the suffering of pensioners across the country.

He also appealed to the state government to consider extending the years of service in the civil service from 35 to 40 years and the retirement age from 60 to 65 years.

Osuma argued that such adjustment had become necessary in view of present-day economic realities and changing conditions in the workplace.

The unionist also reviewed that similar policies had already been adopted in some sectors and jurisdictions, expressing optimism that the State could also implement the reforms for the benefit of workers.

He however, commended Governor Fubara for approving an N85,000 minimum wage for workers in the state, noting that the amount was above the national benchmark of N70,000.

Osuma also acknowledged the government’s efforts in the area of workers’ promotions and bonuses, but insisted that pension reforms and extension of years of service remained critical to the long-term welfare and stability of civil servants in Rivers State.

By: King Onunwor

Business

FG Begins South-West Tour To Promote New Cooperative Bank

Published

1 week ago

May 13, 2026

The Tide

The Federal Government has launched the South-West zonal engagement and ministerial advocacy tour on the Cooperative Bank of Nigeria share capital mobilisation, sensitisation and cooperative sector digitalisation.

Reports say the initiative was launched through the Federal Ministry of Agriculture and Food Security.

According to reports, the advocacy tour, organised by the ministry’s Federal Department of Cooperatives, began on Monday in Lagos.

Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Dr Aliyu Abdullahi, said the initiative was part of President Bola Ahmed Tinubu’s Renewed Hope Agenda.

Abdullahi described the exercise as a strategic effort to reposition the cooperative sector as a key driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity.

“Today represents a defining moment in our collective determination to reposition the cooperative sector as a major driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity,” he said.

The minister noted the modern cooperative movement in Nigeria originated in the South-West following the 1934 Strickland Report, which led to the enactment of the Cooperative Societies Ordinance of 1935.

According to him, the decision to commence the sensitisation and share capital mobilisation tour in the region is symbolic, as it marks a return to the roots of cooperative development in the country.

Abdullahi said the advocacy tour was a direct outcome of resolutions reached at the 8th Regular Meeting of the National Council on Cooperative Affairs held in Abuja in March 2026.

He said the council approved the Renewed Hope Cooperative Reform and Revamp Programme, a comprehensive framework designed to strengthen the cooperative sector and align it with the administration’s goal of building a one-trillion-dollar economy.

“The reform programme focuses on seven strategic pillars, including governance reforms, cooperative financing and the establishment of the Cooperative Bank of Nigeria, digitalisation, capacity building, value chain development, inclusion of youths, women and persons with disabilities, and strategic partnerships,” he said.

He said the establishment of the Cooperative Bank of Nigeria and the digitalisation of the cooperative sector were the two major transformational initiatives under the programme.

“The Cooperative Bank of Nigeria is aimed at rebuilding a strong cooperative financial system capable of supporting cooperators, farmers, artisans, traders, SMEs, youths, women and persons with disabilities with accessible and affordable financial services,” he said.

Abdullahi emphasised that the proposed bank would be government-enabled but not government-funded.

“Government is not establishing the bank as an owner, nor will it rely on Treasury Single Account funds.

“The role of government through the FMAFS is to provide policy support, stakeholder coordination, regulatory facilitation and an enabling environment under the Renewed Hope Cooperative Reform and Revamp Programme,” he said.

Also speaking, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, reaffirmed the state government’s commitment to cooperative sector transformation.

She described cooperatives as critical tools for promoting inclusive growth, grassroots productivity, food security, financial inclusion and community wealth creation.

Ambrose-Medebem said Lagos State would continue to support reforms and collaborate with stakeholders to ensure the successful implementation of the Renewed Hope Cooperative Reform and Revamp Programme (2025–2030).

“Together, let us build a cooperative ecosystem that is modern, transparent, digitally enabled, financially inclusive and globally competitive.

“Let us build cooperatives that not only mobilise savings, but also mobilise prosperity,” she said.