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Power Sector Revenue Declines By 4.54% In Q2’21
Gross revenue of Nigeria’s electricity market declined by 4.45per cent in the second quarter of 2021, Q2’21, to N176.27billion against N184.27billion generated in the first quarter, Q1’21, latest data from the sector has shown.
The data from the Power Sector Working Group, however, showed that the N360.54billion generated in the first half of this year was 24.57per cent higher than the N271.96billion generated in the last six months of 2020.
A monthly analysis of the power sector financials in the first six months of 2021 showed that revenue has been fluctuating month-on-month.
A total of N64.98billion was generated in January, but revenue, however, fell by 13.30per cent in February to N57.35billion.
Further analysis showed that revenue in March rose by 7.41 per cent to N61.94billion but declined again in April by 8.76 per cent to N56.955billion.
In May, revenue rose by 8.24 per cent to N62.07billion.
It, however fell in June to N57.25billion, a drop of 8.42 per cent.
The Power Sector Working Group blamed poor power supply as well as glitches for the fall in revenue in the second quarter, especially in the month of June.
“June is a bit short due to glitches in the sweep mechanism and a low energy supply (there were gas payment challenges we have been working on).
“Through the collection discipline via CBN there is full visibility to DisCos collections. Collections over the past six months have stabilized at between N57billion to N65billion.
“The regulator and policymakers are focusing in the second half of the year on boosting electricity and rolling out phase 1 of Mass Metering to boost supply to reduce tariff and increase collections.
“Procurement is being completed for most of the CAPEX interventions that will help boost supply”, the group added.
Earlier, the group disclosed that the Federal Government has concluded arrangements for the commencement of the second phase of its metering program tagged National Mass Metering Program which it expects to drastically reduce estimated billing by DisCos, that will ensure consumers are billed appropriately for the electricity they consume by installing meters free of charge in household and business premises that are currently unmetered.
The Federal Government provided funding for the program through loans from the Central Bank of Nigeria (CBN), to DisCos.
“Meters are provided to customers free of charge. This is indeed unprecedented and has so far led to the tremendous success recorded so far”.
Speaking on how to grow the electricity market, a leading power sector expert and Managing Director of Target Energy Ltd, Abdullahi Umar, harped on the need to review some of the policies that may be hampering growth and development in the power sector.
Umar said at the weekend that the new Minister of Power, Engr. Abubakar Aliyu, needs to conduct a thorough review of the sector.
“I am part of those stakeholders who are of the view that the declaration of the transitional electricity market (TEM) in February 2015 was too ambitious and premature.
“What should have been was a phased transition into TEM or at the minimum a testing of the market before the full declaration of TEM.
“The errors of such declaration have continued to plague the power sector with a heightened liquidity crisis in 2016 and 2017, that saw a drastic decline of the revenue flows in the power sector, DisCos remittance went from 70 per cent to a sharp decline averaging about 28 per cent – 30 per cent for that period,” he said.
He pointed out that July, 2021, saw the end of Eligible Customer Regulation in the Nigeria Electricity Supply Industry (NESI), adding that the decision by the Nigeria Electricity Regulatory Commission (NERC), to rescind the ECR, has sent mixed signals across the board.
Umar further stated that “we have seen the accusations and counter-accusations between the generating companies (GenCos) and distribution companies on the issue. The action by NERC has signalled the lack of preparedness of the market to accommodate direct sale between market players.
“It is a case of willing seller, willing buyer and an unwilling infrastructure; the market cannot accommodate any distortion at this time especially as the grid still operates at average capacity.”
The ECR allows GenCos and Independent Power Producers to bypass the Bulk Trader for excess un-contracted capacity within their portfolio and sell directly to eligible customers who can take a minimum of 2MW of power monthly.
“The ECR was issued on the 6th of November, 2017 by the then Minister of Power, Works, and Housing, Barrister Babatunde Fashola”, Umar also averred that the “recent repeal of the ECR further demonstrates the weakness in the NESI and the need for more effective and consistent regulation.”
He further advised, “With a new Minister of Power in the saddle, I suggest that a cue is borrowed from the former Minister of Power, Work, and Housing; who commenced his tenure with sector-wide stakeholder consultation and monthly review meetings, it is important that new Minister of Power gets a proper briefing with all market participants in the same room to curtail self-serving suggestions and recommendations.”
“The frequent policy conflict is fast eroding the little gains of the NESI since the declaration of TEM and plunging the sector deeper into uncertainty.
“The new Minister of Power must pursue sector-wide collaboration and effective corporate governance to move the sector forward.
“It is time to go back to the drawing board,” he concluded.
The Nigerian Electricity Regulatory Commission has, however, denied that it has ended or suspended the Eligible Customer Regulations which allowed power generation companies, GenCos, to supply electricity directly to large demand customers.
NERC, in a statement by its General Manager, Public Affairs Department, Dr. Usman Abba Arabi, stated that the Eligible Customer Regulations has not been suspended and at no time has the commission issued a directive for discontinuation of service to any customer.
The commission explained that what it suspended was the unauthorized direct supply by GenCos to big consumers.
Rivers State Head of Service, Dr (Mrs) Inyingi Brown, has called on rural communities in the State to embrace the Rural Access and Agricultural marketing project (RAAMP) with a view to improving their living conditions.
This follows the ongoing sensitization campaign by the State Project Implementation Unit (SPIU) visits to Degema, Abonnema, Afam headquarters of Degema, Akuku Toru and Oyigbo Etche and Omuma local government areas respectively.
Dr Brown who was represented by the Deputy Director, Special Duties in her office, Mrs Dein Akpanah, said RAAMP was initiated by the Federal Government and World Bank to economically empower rural dwellers.s
She said the World Bank understands the plights of rural farmers and traders in the State, and therefore came up with the programme to address them.
According to her, RAAMP will improve the conditions of farmers, traders and fishermen, and therefore, behoves on every rural communities in the State to embrace the programme.
The Head of Service also said the programme would support the youths to be gainfully employed while bridges and roads will be built to link farms and fishing settlements.
Also speaking, the State project coordinator, Mr Joshua Kpakol, said the programme has the potential of creating millionaires among farmers and fishermen in the State.
Kpakol who was represented by Engr. Sam Tombari, said RAAMP would help farmers and fishermen to preserve their produce.
According to him, the project will build cold rooms and Silos for preservation of crops and fishes while access roads will also be created to link farmers and fishermen to the market.
He, however, warned them against any act that will lead to the suspension of the projects by the World Bank.
Kpakol particularly warned against acts such as kidnapping, marching ground, gender based violence and child labour, adding that such acts if they occur may lead to the cancellation of the project by the World Bank.
During the visit to Oyigbo local government area, Mr Joshua Kpakol, said the team was there to let them know how they will benefit from the Raamp.
The coordinator who was personally at Oyigbo said the World Bank introduced the project to check food insecurity in the State.
He said already 19 states in Nigeria are already benefitting from the project and called on them to embrace the project.
Meanwhile, stakeholders in the three local government areas have commended the World Bank for including their areas in the project.
They, however, complained over the incessant attacks by pirates on their waterways.
At Degema, King Agolia of Ke kingdom said land was a major problem in the kingdom.
King Agolia represented by High Chief Alpheus Damiebi said many indigenes of the kingdom are willing to go into farming but are handicapped by lack of land.
Also at Degema, the representative of the Omu Onyam Ekeim of Usokun Degema kingdom, Osoabo Isaac, said Degema has embraced the programme but needed more information on the implementation of the programme.
Similarly, while High Chief Precious Abadi advised that the project should not be narrowed to only crop farming, a community women leader, Mrs Orikinge Eremabo Otto, called for the construction of cold rooms in all fishing settlements in the area.
At Abonnema, Mr Diamond Kio linked the problem of the area to incessant piracy along waterways.
He also expressed fears over the possibility of the project being hijacked by politicians.
Also at Abonnema, a stakeholder, Ikiriko Kelvin, called on the World Bank to design an agricultural project that will suit the riverine environment, while at Oyigbo, HRH Eze Boniface Akawo expressed satisfaction with the project.
John Bibor
The political mudslinging between the Senate leadership and Senator Natasha Akpoti-Uduaghan continued yesterday as the Senate named Senator Aniekan Bassey as the new Chairman of the Committee on Diaspora and Non-Governmental Organisations.
Senate President, Godswill Akpabio, announced the appointment during yesterday’s plenary, confirming Bassey’s replacement of Senator Natasha Akpoti-Uduaghan, who is currently on suspension.
Akpoti-Uduaghan was reassigned to the Diaspora and NGOs Committee in February after she was removed as Chair of the Senate Committee on Local Content during a minor reshuffle.
Bassey is the senator representing Akwa Ibom North-East Senatorial District.
Although no reason was given for her removal yesterday, the change is believed to be connected to her unresolved suspension.
In May, Justice Binta Nyako of the Federal High Court ordered her reinstatement and directed her to tender an apology to the Senate.
However, the Senate has insisted it has not received a certified true copy of the court judgment.
Akpoti-Uduaghan who represents Kogi Central, has yet to resume her legislative duties despite a recent court ruling that voided her suspension.
In a televised interview on Tuesday, Akpoti-Uduaghan said she was awaiting the Certified True Copy of the judgment before officially returning to plenary, citing legal advice and respect for institutional process.
Although the Federal High Court described her suspension as “excessive and unconstitutional”, a legal opinion dated July 5 and attributed to the Senate’s counsel, Paul Daudu (SAN), argued that the ruling lacked any binding directive to enforce her reinstatement.
Akpoti-Uduaghan, one of only three female senators in the current assembly, said the continued delay in allowing her return was not only a denial of her mandate but also a blow to democratic representation.
“By keeping me out of the chambers, the Senate is not just silencing Kogi Central, it’s denying Nigerian women and children representation. We are only three female senators now, down from eight,” she said.