News

DISCOs: No Subsidy From FG Since Privatisation …Say N1.7 Trillion In Subsidies For Generating, Gas Companies

Published

5 years ago

February 27, 2020

The electricity Distribution Companies, DISCOs, yesterday, declared that they have not received any subsidy from the Federal Government since the power sector privatised in November 2013.
The 11 Distribution Companies operating under the aegis of Association Nigerian Electricity Distributors, ANED, said through a statement by its Executive Director, Research and Advocacy, Mr. Sunday Oduntan, insisted that none of the companies ever received subsidy from the government.
Apparently reacting to the remarks credited to the Minister of Power, Engr. Saleh Mamman to the extent that the Federal Government will not continue to subsidise the power sector, ANED said, government only made payments to the generating and gas supply companies. According to Oduntan,
“Last week, via various news media, we were, once again, presented with another situation in which our electricity distribution, DISCOs sub-sector was put up for public vilification and denouncement on information that is, largely, not reflective of the reality or complexity of the Nigerian Electricity Supply Industry, NESI, value chain.
“The statements or comments behind this recent media exercise were attributed to Mr. Saleh Mamman, the Honourable Minister of Power, speaking to journalists after the Federal Executive Council, FEC, meeting.
“As the face of the NESI market, responsible for direct interface with the public and collecting of all monies due to the different players in the sector, we readily acknowledge both the inefficiencies that our sub-sector continues to experience and the pervasive dissatisfaction of our customers with same.
“We will continue to strive to do better. However, it is also important that our customers, specifically, and Nigerian citizens, in general, be accurately and well informed as to the challenges, facts and constraints of the NESI value chain, as necessary for us to, collectively, devise strategies and solution that will get us to the envisioned improved supply of, and service delivery of electricity.
“The following information is provided for clarification of some of the statements or comments that have been attributed to the Honourable Minister of Power via various national newspapers on February 20th, 2020.”
Oduntan stressed further that, “That is what we are saying. Government cannot continue to subsidise because what they are doing is that they collect 3,000 megawatts and pay for only 1,000 megawatts. That is 15 percent of what they are collecting. So, government is the one completing the payment.”
“To date, the DISCOs have not received any subsidy from the federal government. References to the N1.7 trillion in subsidies paid by the government are associated with payments that have been made to the generating and gas supply companies, under the Payment Assurance Guarantees, PAG, initiative and the Nigerian Electricity Market Stabilization Fund, NEMSF.
“PAG is, principally, a result of government regulatory and policy interventionist initiatives that have resulted in the inability of the NESI value chain to recover the cost of doing business based, primarily, on tariffs that are non-cost reflective – an unmet critical commitment of the privatisation of the electricity distribution companies.
“As a matter of fact, NERC’s December 2019 Minor Review Order specifies federal government debt to the DISCOs, correspondingly, the rest of the NESI value chain), due to tariff shortfalls, of N1.728 trillion. DISCO’s liability to NESI, due to market shortfalls, is N81 billion.
“Significantly, government Ministries, Departments and Agencies (MDA) owe the DISCOs in excess of N100 billion, for energy consumed but not paid for – a federal government commitment, yet again, unmet under the privatisation agreement and MYTO-2015.
“Under the NEMSF N210 billion initiatives, of the N189.1 billion that has been disbursed, the DISCOs have only received N49.89 billion or 26.3%. Importantly, this is money owed to the DISCOs by the consumers, due to the non-cost reflective tariff of MYTO 2.0 and the government’s failure to inject the associated N100 billion in subsidies, a commitment under the privatisation agreements.
“Interestingly, the rest of the NEMSF disbursement of N139.21 or 73.7% is comprised of the Power Holding Company of Nigeria, PHCN’s legacy gas and energy supply liabilities that should have resided with the Nigerian Electricity Liability Management Company, NELMCO. Unfortunately, these liabilities now constitute an encumbrance on the DISCOs’ financial books, limiting or precluding their ability to access the financing that is critical for capital investment and injection of efficiency in the distribution of electricity – another violation of a privatisation commitment which required that the DISCOs have debt-free financial books that would enable them access debt funding for their operations.
“A review of DISCO performance would indicate that the DISCOs have improved their collection efficiency, from 2017, 57.89%, to a high of 74.5% , Quarter 4, 2019, in spite of the issues of lack of access to financing and the related limited capital investment, as well the artificially suppressed electricity tariff.”
“However, a discussion about DISCOs remittances and collection efficiency would be incomplete without reference to regulatory and government policy inconsistencies and interventions that have distorted the ability of NESI to evolve organically.”

News

Shettima In Ethiopia For State Visit

Published

2 days ago

June 27, 2025

The Tide

Vice President Kashim Shettima has arrived in Addis Ababa, Ethiopia, for an official State visit at the invitation of the Prime Minister, Dr. Abiy Ahmed.

Upon arrival yesterday, Shettima was received at the airport by the Minister of Foreign Affairs of Ethiopia, Dr. Gedion Timothewos, and other members of the Ethiopian and Nigerian diplomatic corps.

Senior Special Assistant to the Vice President on Media and Communication, Stanley Nkwocha, revealed this in a statement he signed yesterday, titled: “VP Shettima arrives in Ethiopia for official state visit.”

During the visit, Vice President Shettima will participate in the official launch of Ethiopia’s Green Legacy Programme, a flagship environmental initiative.

The programme designed to combat deforestation, enhance biodiversity, and mitigate the adverse effects of climate change targets the planting of 20 billion tree seedlings over a four-year period.

In line with strengthening bilateral ties in agriculture and industrial development, the Vice President will also embark on a strategic tour of key industrial zones and integrated agricultural facilities across selected regions of Ethiopia.

News

RSG Tasks Farmers On N4bn Agric Loan ….As RAAMP Takes Sensitization Campaign To Four LGs In Rivers

Published

2 days ago

June 27, 2025

The Tide

The Rivers State Government has called on the people of the state especially farmers to access the ?4billion agricultural loans made available by the State and domiciled in the Bank of Industry.

This is as the State Project Implementation Unit (SPIU) of Rural Access and Agricultural Marketing Project (RAAMP), a World Bank project, took its sensitization campaign to Opobo/Nkoro, Andoni, Port Harcourt City and Obio/Akpor local government areas.

The campaign was aimed at enlightening community dwellers and other stakeholders in the various local government areas on the RAAMP project implementation and programme activities.

The Permanent Secretary, Rivers State Ministry of Agriculture, Mr Maurice Ogolo, said this at Opobo town, Ngo, Port Harcourt City and Rumuodumanya, headquarters of the four local government areas respectively, during the sensitization campaign.

Ogolo said apart from the ?4billion, the government has also made available fertilizers and other farm inputs to farmers in the various local government areas.

The Permanent Secretary who is the Chairman, State Steering Committee for the project, said RAAMP will construct roads that will connect farms to markets to enable farmers and fishermen sell their farms produce and fishes.

He also said rural roads would be constructed to farms and fishing settlements, and warned against any act that will lead to the cancellation of the projects in the four local government areas.

According to him, the World Bank and Federal Government which are the financiers of the programme will not condone such acts like kidnapping, marching ground and other acts inimical to the successful implementation of the projects in their respective areas.

At PHALGA, Ogolo asserted that the city will benefit in the areas of roads and bridge construction.

He noted that RAAMP was thriving in both the Federal Capital Territory, Abuja; Lagos and other states in the country, stressing that the project should also be given the seriousness it deserves in Rivers State.

Speaking at Opobo town, the headquarters of Opobo/Nkoro Local Government Area, the project coordinator, RAAMP, Mr.Joshua Kpakol, said the programme would reduce poverty in the state.

According to him, both fishermen and farmers will maximally benefit from the programme.

At Ngo which is the headquarters of Andoni Local Government Area, Kpakol said roads will be constructed to all remote fishing settlements.

He said Rivers State is lucky to be among the states implementing the project, and stressed the need for the people to embrace it.

Meanwhile, Kpakol said at PHALGA that RAAMP is a project that will transform the lives of farmers, traders and other stakeholders in the area.

He urged the stakeholders to spread the information to their various communities.

However, some of the stakeholders at Opobo town complained about the destruction of their farms by bulls allegedly owed by traditional rulers in the area, as well as incessant stealing of their canoes at waterfronts.

At Ngo, Archbishop Elkanah Hanson, founder of El-Shaddai Church, commended the World Bank and the Federal Government for bringing the projects to Andoni.

He stressed the need for the construction of roads to fishing settlements in the area.

Also, a former Commissioner for Agriculture in the state and Okan Ama of Ekede, HRH King Gad Harry, noted that storage facilities have become necessary for a successful agricultural programme.

Harry also stressed the need for the programme to be made sustainable.

In their separate speeches, the administrators of Andoni and Opobo/Nkoro Local Government Areas, pledged their readiness to support the programme.

At Port Harcourt City, the Administrator, Dr Arthur Kalagbor, represented by the Head of Local Government Administration, Port Harcourt City, Mr Clifford Paul, said the city would support the implementation of the programme in the area.

Also, the administrator of Obio/Akpor Local Government Area, Dr Clifford Ndu Walter, represented by Mr Michael Elenwo, pledged to support the programme in his local government area.

Among dignitaries at the Obio/Akpor stakeholders engagement is the chairman, Rivers State Traditional Rulers Council and paramount ruler of Apara Kingdom, HRM Eze Chike Wodo, amongst others.

John Bibor

News

Tinubu Orders Civil Service Personnel Audit, Skill Gap Analysis

Published

2 days ago

June 27, 2025

The Tide

President Bola Tinubu has ordered the commencement of personnel audit and skill gap analysis across all cadres of federal civil servants.

The president gave this directive in Abuja, yesterday, while speaking at the International Civil Service Conference, reaffirming his resolve to achieve efficiency and professional service delivery in the civil service.

“I have authorized the comprehensive personnel audit and skill gap analysis across the federal civil service to deepen capacity. I urge all responsible stakeholders to prioritize timely completion of this critical exercise, to begin implementing targeted reforms, to realize the full benefit of a more agile, competent and responsive civil service,” the president announced.

Tinubu further directed all Ministries, Departments and Agencies (MDAs), to prioritise data integrity and sovereignty in national interest.

He called for the capture, protection and strategic publication of public sector data in line with the Nigeria Data Protection Act of 2023.

“We must let our data speak for us. We must publish verified data assets within Nigeria and share them internationally recognized as fruitful. This will allow global benchmarking organisation to track our progress in real time and help us strengthen our position on the world stage. This will preserve privacy and uphold data sovereignty,” Tinubu added.

President Tinubu hailed the federal civil service as the “engine” driving his Renewed Hope Agenda, and the vehicle for delivering sustainable national development.

He submitted that the roles of civil servants remain indispensable in modern governance, declaring that in the face of a fast-evolving digital and economic landscape, the civil service must remain agile, future-ready, and results-driven.

“This maiden conference is a bold step toward redefining governance in an era of rapid transformation. An innovative Civil Service ensures we meet today’s needs and overcome tomorrow’s challenges.

“It captures our collective ambition to reimagine and reposition the civil service. In today’s rapid, evolving world of technology, innovation remains critical in ensuring that the civil service is dynamic, digital” the President said.

Head of the Civil Service of the Federation, Didi Walson-Jack in her welcome address told the President that his presence and strong words of commendation at the conference has renewed the morale and mandate of public servants across the country.

Walson-Jack described Tinubu as the backbone of driving transformation in the Nigerian civil service, and noted that the takeaways from past study tours undertaken to understudy the civil service in Singapore, the UK and US under her leadership, is already yielding multiplier effects.

Walson-Jack assured Tinubu that her office, in collaboration with reform-minded stakeholders, will not relent in accelerating the implementation of the Federal Civil Service Strategy and Implementation Plan, FCSSIP 25.

She affirmed that digitalisation, performance management, and continuous learning remain key pillars in strengthening accountability, transparency, and service delivery across MDAs.

Walson-Jack reaffirmed that the civil service is determined to exceed expectations by embedding a culture of innovation, ethical leadership, and citizen-centred governance in the heart of public administration.