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NERC Denies Increase In Electricity Tariff As Consumers Kick
The Nigerian Electricity Regulatory Commission (NERC) says no tariff increase has been approved by the commission yet.
Mr Usman Arabi, General Manager, Public Affairs (NERC) made the clarification in a statement issued on the agency’s website, obtained bynewsmen in Lagos yesterday.
Arabi said:” The attention of the NERC has been drawn to the publication in several electronic and print media that end-user electricity tariffs have been increased following the approval of the minor review (2016 – 2018) of the 2015 Multi-Year Tariff Order on Aug. 21, 2019.
“We wish to provide guidance that the minor review implemented by the commission was a retrospective adjustment of the tariff regime released in 2015.
“This is to account for changes in macro-economic indices for the years 2016, 2017 and 2018 thus providing certainty about revenue shortfall that may have arisen due to the differential between tariffs approved by the regulator and actual end-user tariffs.
“The commission, therefore, wish to notify the general public that no tariff increase has been approved by the Commission vide the order.”
He said, however NERC, in the discharge of its statutory responsibilities enshrined under the Electric Power Sector Reform Act, would continue to undertake periodic reviews of electricity tariffs in accordance with the prevailing tariff methodology.
According to him, in all instances of such reviews and rule making, the commission will widely consult with stakeholders and final decision will take due regard of all contributions.
However, electricity consumer groups in the country have kicked against increasing tariff for end-user customers.
The groups, Energy Consumer Rights and Responsibilities Initiative and the All Electricity Consumer Protection Forum told newsmen in Lagos that increment in electricity tariff was unjustified based on present realities.
Mr Sural Fadairo, National President, Energy Consumer Rights and Responsibilities Initiative, noted that increasing the cost of electricity was not the panacea to Nigeria’s energy crisis.
“If they want to increase tariff because the Distribution Companies are under remitting due to debts by consumers, that will not solve the problem.
“If people are refusing to pay now because they are disputing their bills will they now pay if it is further increased? “What they need to do is to meter all electricity customers, so that we can end the issue of estimated billing.
“So, from the consumer point of view, we are totally against any increment because power generation and supply has not improved significantly in the country, “he said. Also, Mr Adeola Samuel-Ilori, National Coordinator, All Electricity Consumers Protection Forum, said the increase was totally uncalled for in all ramifications.
He said: “The basis for such increase at this time can’t be justified in that consumers have not been metered and they still purchase transformers and other line materials by themselves with attendant extortion via estimated billings. “ All these are not taken into consideration and extensively dealt with before contemplating tariff increase”.
Meanwhile, the Human Rights Writers Association of Nigeria, HURIWA, has carpeted the President Muhammadu Buhari-led Federal government over what it termed “astronomical rise” in the tariffs payable for electricity supply across the country.
HURIWA, a frontline rights advocacy claimed that the Buhari-led government was working “day and night” to unleash devastating economic strangulation through unsustainable reviewed electricity power tariffs on Nigerians most of whom are unemployed, hungry, sick and poor.
In a statement signed by its National Coordinator, Comrade Emmanuel Onwubiko and the National Media Affairs Director, Miss Zainab Yusuf, the rights group warned that the multiplier effect would be felt immediately due to spike in the costs of living.
The group said the focus of the Federal government in the beginning phase of the year should not be to impose grave hardship on the populace just coming out of the seasonal festivity of Christmas and New Year but any good government should be more focused on how quality education can be delivered to millions of the children of Nigerian suffering families that would be returning to schools in the next few days.
HURIWA said: “The Federal government should be focused in this New Year on how to improve health care and on how to curb the internal corruption that has destroyed the so called schools feeding programme instead of the Federal government of President Muhammadu Buhari working day and night to unleash devastating economic strangulation through unsustainable reviewed electricity power tariffs on millions of Nigerians most of whom are unemployed, hungry, sick and poor.
“President Muhammadu Buhari-led administration should be focused on restoring security of lives and property which is the primary duty of government and for which it has failed to discharge instead of rushing to introduce the wicked policy of Electricity power hike in January of a fresh DECADE.”
HURIWA recalled that the 11 electricity distribution companies (DisCos) have the mandate of the Nigerian Electricity Regulatory Commission (NERC) to effect the tariff increase from April just as these are as follows: Abuja Electricity Distribution Company, Benin Electricity Distribution Company, Enugu Electricity Distribution Company, Eko Electricity Distribution Company, Ibadan Electricity Distribution Company, Ikeja Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electricity Distribution Company, Kano Electricity Distribution Company, Port Harcourt Electricity Distribution Company and Yola Electricity Distribution Company.
HURIWA specifically gathered that consequent upon the NERC directive, Abuja Electricity Distribution Company (AEDC) residential customers R3 will now pay N47.09 per unit as against the current N27.20, while Ikeja Electricity Distribution Company (IKEDC) customers in R3 category will pay N36.92 per unit instead of N26.50. Commercial customers C3 category will start paying N38.14 per unit instead of N24.63 and industrial customers of the IKEDC D3 category who are currently paying N25.82 per unit will henceforth pay N35.85 per unit.
HURIWA recalled that by the hike, the Enugu Electricity Distribution Company residential (R3) customers who currently pay N27.11 per unit will start paying N48.12 per unit just as the National Electricitu Regulatory Commission said the order was pursuant to Section 32 and 76 of the Electric Power Sector Reform Act aimed at providing a cost reflective tariffs that ensures prices charged by licensees are fair to consumers.
However, disagreeing with the explanation offered by the National Electricity Regulatory Commission for the current hike, HURIWA said that the “decision by the Electricity regulator to capitulate to the Machiavellian type selfish hike demand by the private operators of the weak, incompetent and inefficient electricity power supply subsector was against public interest and therefore will endanger public good and should be voided or resisted if government fails to listen to the voices of the people.”
HURIWA reminded the president that the voices of the people is the voice of God and if he wants to get the pulse and the heartbeats of the real people, then he the President should disguise himself as a commoner and drive to one of the rural markets in any part of the Federation so he can dissect properly the monumental dimension of mass poverty afflicting millions of Nigerians.
“HURIWA believes that the import of any public policy must be grounded on the utilitarian satisfaction of the greatest percentage of the population of the good people of Nigeria. Any public policy churned out specifically to enrich some privileged elitist class to the detriment of millions of the good people of Nigeria hasn’t met the constitutional threshold because of the centrality of the need for all government’s actions, policies and projects to be people centred and to benefit public good. The astronomical hike in the purchasing prices of the virtually non available and the erratic electricity power to less than 40% of the Nigerian population is directly offensive to the overall public good. In section 14 of the Nigerian Constitution the Federal Republic of Nigeria is legally created to be patterned as a State based on the Principles of democracy and Social Justice. Subsection 2(a) of section 14 provides that ‘Sovereignty belongs to the people of Nigeria from whom government through this constitution derives all its powers and authority. Just as subsection 2(b) of section 14 states that ‘the security and Welfare Of The People Shall Be The Primary Purpose Of Government.
“HURIWA believes that this is the most reckless policy to be imposed wickedly on the Nigerian people who are currently going through some of the most primitive and painful economic adversity in about 40 years. For a federal government to introduce such a callous tariff hike in the beginning of a new year either shows the government officials as Shylock Machiavellian and mean hearted selfish politicians who are insensitive and irresponsible to such an extent that the only policy they have brought UP to wish Nigerians a happy New year is to impose a strange but strangulating electricity tariffs without first and foremost ensuring that the distribution companies in the power electricity sector who got licences to distribute ELECTRICITY carry out their businesses in compliance with best global practices. The distribution companies lack transparency and acountability just as they are wayward in terms of corporate social responsibility to the people of Nigeria.
“These DISCOS are known to have been lavishly gifted with billions of Naira of Public fund by the Central Bank of Nigeria to improve their services but in the last five years it is evident that even the few Nigerian families who enjoy intermittent electricity power supplies are victims of price extortion through irregular billing methods without proper metering standards. Most electricity customers still don’t have meters to be able to accurately reconcile their consumption. Why is the Federal government through the National Electricity Regulatory Commission not concerned about decisively tackling the challenges associated with metering by the DISCOS rather than being so unnecessarily fixated with over exposing the marginalised electricity power consumers to untold hardships and further impoverishment in the hands of the profiteers masquerading about as licenced Distributors of Electricity power to NIGERIANS? Also why the hurry to increase the tariffs for services that are poor and inefficient? The Federal government must be compelled to reverse this anti people policy that will only increase mass poverty and will not in any away address the disturbing phenomenon of mass unemployment that became worst under the current Federal administration since the last 5 years?. Nigeria had only a year ago become the World’s capital of poverty with over 90 million people being absolutely poor. So how will they generate the money to pay these extremely hifh costs of electricity power supply which is so few and far between.”
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Tinubu Urges Nigeria, S’Africa To Strengthen Ties For Africa’s Dev
President Bola Tinubu yesterday stated that Nigeria and South Africa share a collective destiny to collaborate for the betterment of the African continent.
He stressed that both countries must intensify cooperation across various sectors, adding that the success of the partnership lies in the implementation, not merely the signing of Memoranda of Understanding (MoUs).
Tinubu made this remark yesterday during his opening address as he co-chaired the 11th session of the Nigeria-South Africa Bi-National Commission alongside President Cyril Ramaphosa in Cape Town, South Africa.
He said, “Our successive governments on both sides have recognised our shared history of collaboration and cooperation. We must ensure that the spirit of collaboration and cooperation between our two leading countries in Africa intensifies and deepens under the leadership of our respective nations. This is not a matter of choice but of destiny, which includes a historical responsibility to the African people.”
The Nigeria-South Africa Bi-National Commission, established in 1999, aims to strengthen the ties of friendship and cooperation between the two nations. The first Heads of State-level session took place in Pretoria in October 2019.
Tinubu noted that this year’s meeting coincides with the 25th anniversary of the Commission, disclosing that Nigeria and South Africa have signed about 36 MoUs that reflect their friendship and cooperation.
The President, however, stressed that MoUs alone do not constitute success and must be backed by consistent implementation.
“The BNC has existed since 1999, with approximately three dozen MoUs and agreements in operation. The BNC has come of age. I must, however, caution that we should not count our successes by the number of MoUs signed. They are mere pieces of paper until we implement them in both spirit and letter,” he explained.
Tinubu called for a special emphasis on strengthening the relationship between the youth populations of both countries, stating that Nigeria and South Africa, with their large youthful demographics, can significantly boost their economic development.
According to him, “My desire is that we accelerate youth development. Beyond natural resources, our most precious resource is our youthful population. These young people represent the future. We must invest in their skills and potential for the good of the continent. My administration has embraced an inclusive approach, placing young people in charge of key sectors of the economy, believing that the future must start now.”
The President also assured Ramaphosa of Nigeria’s commitment to strengthening the partnership between the two nations and warned against external forces that might be threatened by the alliance between Africa’s two largest economies.
“As the adage goes, ‘The glory of the eagle does not please the kite.’ Let us remain mindful of the overt and covert hostilities that our partnership may attract. If we remain vigilant, committed, and persistent, we will soar like eagles over the predators. We must stay united in purpose,” Tinubu stated.
He also called for the creation of an anti-illegal mining group, stressing that Africa’s natural resources should benefit its people.
“One issue I want the BNC to explore is the establishment of an anti-illegal mining group. Illegal mining is robbing our nations of precious resources that could foster development. Sponsored by powerful external forces, such mining is causing strife, poverty, environmental degradation, and undermining governance. We cannot allow this scourge to hinder our progress,” Tinubu said.
He urged South Africa’s support for Nigeria’s bid to gain full membership in the G20, BRICS, and the BRICS New Development Bank, adding, “Nigeria would like to join South Africa and the African Union in the G20.”
Earlier, South African President Cyril Ramaphosa highlighted Nigeria’s role as a host for several South African companies and reaffirmed his country’s openness to Nigerian businesses, citing numerous investments and operations in South Africa.
He acknowledged the need to remove existing barriers to greater investment.
Ramaphosa said, “We need to remove the remaining constraints to investment and address challenges faced by companies in both countries. We are encouraged by the steps being taken under your leadership to improve Nigeria’s business environment, which provides assurances to investors, including South African companies.”
He also highlighted measures to simplify visa processes for Nigerian business people, including five-year multiple-entry visas for eligible applicants and a streamlined process for Nigerian tourists.
Ramaphosa expressed hope that the 11th Session of the Bi-National Commission would solidify cooperation in critical areas and stressed the importance of implementing previously agreed-upon decisions and monitoring progress.
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PENGASSAN Plans Showdown With Oil Firms Hiring Expatriates
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) is preparing for a face-off with oil companies that are prioritising expatriates for job opportunities while neglecting to hire qualified Nigerians.
PENGASSAN President, Festus Osifo, gave this indication during his address at the union’s National Executive Council meeting, held in Abuja, yesterday.
Osifo said the growing trend by companies to employ foreigners, mainly Indians, is contrary to the local content regulations which seek to increase local content participation to 70 per cent by 2027.
He stressed that many companies have abused the expatriates quota outlined by the government, fuelling unrest and resentment among Nigerians who feel excluded from opportunities in their industry.
He said, “A pressing concern is the high number of expatriates in Nigeria’s oil and gas industry, mainly from India. While skilled foreign workers contribute to economic development, the current situation demands attention.
“We have been calling names. We are not shying away from calling names. We called out a company called Indorama and others and the issue was fixed in the past.”
Osifo further called on the Nigerian Content Development and Monitoring Board and the Ministry of Interior to stop granting employment licenses to every foreigner who comes into the country seeking employment.
He said, “We are also holding to account a government institution called Nigerian Content Development and Monitoring Board and the Ministry of Interior, these are the people that give permits for these expatriates to come. If you go to some of these companies, vulcanizers and conductors are Indians.
“Even operators are Indians. And that should not go. So, rising from this NEC meeting, we are going to resolve that we will do everything possible to hold them to account.
“This is not the first company where this has been done. In the company where I work, for example, Total Energy, in 2015, it was a battle. It was war. We took it to them, and we ensured that the expatriate index was greatly reduced. So, we have done it before. We can also do it again. Because the more you send these expatriates away, the more, the management of these companies will open up the system and employ more Nigerians. It is so bad that our institutions are weak.
“The people that fight for the workers in Angola are not even trade unions. They are government institutions. If you work in Angola for a while, you must go back to your country and reapply again. And they ensure that the jobs that they give you in Angola are those technical jobs. So, our government must sit up. Our institutions must sit up.”
“NCDMB, Ministry of Interior, they must sit up and do what they ought to do. So, it is a battle that we are much more prepared to fight. And very, very soon, we will confront it head-on and frontally.”
Osifo also requested clarification on the proposed tax reforms bill, particularly in relation to the revenue collection mandate by the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Igerian Upstream Petroleum Regulatory Commission.
The association asked the government to extend the tax exemption level to persons earning N150,000 per month.
“On the issues of tax reform, we are currently examining the bill. So, one of the areas that we have seen in the bill that is quite okay is to give tax relief to people who are around minimum wage. What is there in the bill today is about N800,000 per annum.
“And also, for businesses whose turnover is about 50 million Naira, we found that most of the nano and micro businesses fell within that range of 50 million. So, it’s quite good. But, what we have been advocating is that that N800,000 is too small. The government should expand it to persons earning N100,000 to N150,000 per month. So, we are studying the bill, and we are looking at those provisions that are salient. These are what we will bring up at the public hearing.
“So, when we are done with all these, we will send you a copy of our position as PENGASSAN. And in addition to what I just said, there is also a particular area that we are looking at. Today, we have NMDPRA. We have NUPRC. So, they largely pay our members from the cost of connection. But today, they want to replace that with the Nigerian Revenue Service.
“The service will be collecting revenue across the board, both from the oil and gas and customs. So, we are currently studying that provision. We would still need clarification on these issues. We are asking when these are going to form our proposal to the National Assembly during the public hearing,” he added.
When asked if any workers became unemployed as a result of the recent divestment by international oil companies, Osifo said, “We can confirm to you that as of today, there is no single job that has been lost in any of these companies as a result of divestment.
“This is because we realise that our primary function is how to safeguard jobs for our members. First, you safeguard jobs, then you start talking about pay enhancement. If the job is not there, you won’t be able to talk about pay enhancement because what are you enhancing? So first, you safeguard the job.
“So in each of the agreements that were signed, it was clearly stated, all our jobs will be safeguarded.”
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NAFDAC Busts Fake Alcohol Factory In Lagos
The National Agency for Food and Drug Administration and Control (NAFDAC) has dismantled a makeshift factory in the Oke Arin market, Lagos Island, where counterfeit alcoholic beverages were being illegally produced.
According to a statement via its X, yesterday, the agency, acting on a complaint, conducted a raid that led to the arrest of three men and the seizure of counterfeit drinks, empty bottles, and packaging materials.
According to NAFDAC, the seized products, which included fake versions of popular alcoholic brands, were valued at over ¦ 180 million.
The main suspect, Mr. Tochukwu Henry, confessed to refilling bottles labelled as Rémy Martin with ST-Rémy contents.
He also admitted to employing two other individuals to assist in the operation.
The statement said, “NAFDAC has raided a makeshift factory in Oke Arin market, Lagos Island, following a complaint about the illegal production of alcoholic beverages. Three men were apprehended and various counterfeit alcoholic drinks, empty bottles, and packaging materials were seized.
“The products, valued at over ¦ 180 million, included fake versions of popular brands. The main suspect, Mr. Tochukwu Henry, confessed to refilling bottles labelled as Rémy Martin with ST-Rémy contents and employing two others to assist in the illicit operation.
“All suspects are currently in custody for further investigation. NAFDAC calls on the public to remain vigilant, especially during the festive season, and to report suspicious activities and products to the nearest NAFDAC office.”
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