Connect with us

News

$500m World Bank Electricity Fund: SERAP Seeks Publication Of Details

Published

on

The Socio-Economic Rights and Accountability Project (SERAP) has urged the World Bank to release archival records and documents relating to spending on all approved funds to improve access to electricity in Nigeria between 1999 and 2020.
It also demanded it to show the bank’s role in the implementation of any funded electricity projects, identify and name any executed projects, and Nigerian officials, ministries, departments and agencies involved in the execution of such projects.
The World Bank Board of Directors had, last week, approved $500million to help boost access to electricity in Nigeria and improve the performance of the electricity distribution companies in the country.
In the application to World Bank President, Mr David Malpass, dated February 6, 2021, signed by SERAP Deputy Director, Kolawole Oluwadare, the organization urged the Bank to explain the rationale for the approval of $500million to implement electricity projects in the country, despite reports of widespread and systemic corruption in the sector, and the failure of the authorities to enforce a court judgment ordering the release of details of payments to allegedly corrupt electricity contractors who failed to execute any projects.
SERAP said, “This application is brought pursuant to the World Bank’s Access to Information Policy, which aims to maximize access to information and promote the public good. There is a public interest in Nigerians knowing about the Bank’s supervisory role and specifically its involvement in the implementation of electricity projects, which it has so far funded.”
According to SERAP, “The $500million is part of the over $1billion available to Nigeria under the project titled: Nigeria Distribution Sector Recovery Program.
“We would be grateful for details of any transparency and accountability mechanisms under the agreement for the release of funds, including whether there is any provision that would allow Nigerians and civil society to monitor the spending of the money by the government, its agencies, and electricity distribution companies.”
SERAP also said, “Should the Bank fail and/or refuse to release the information and documents as requested, SERAP would file an appeal to the Secretariat of the Bank’s Access to Information Committee to challenge any such decision, and if it becomes necessary, to the Access to Information Appeals Board. SERAP may also consider other legal options outside the Bank’s Access to Information framework.”
The letter, copied to the World Bank Country Director for Nigeria, Shubham Chaudhuri, reads in part, “SERAP believes that releasing the information and documents would enable Nigerians and civil society to meaningfully engage in the implementation of electricity projects funded by the Bank, contribute to the greater public good, and enhance the Bank’s oft-stated commitment to transparency and accountability.
“The World Bank has been and continues to be involved in overseeing the transfer, disbursement, spending of funds on electricity projects in Nigeria. The Bank also reportedly approved a $750million loan for Nigeria’s electricity sector in June, 2020, to cut tariff shortfalls, protect the poor from price adjustments, and increase power supply to the grid. As such, the World Bank is not a neutral party in this matter.
“SERAP is seriously concerned that the funds approved by the Bank are vulnerable to corruption and mismanagement. The World Bank has a responsibility to ensure that the Nigerian authorities and their agencies are transparent and accountable to Nigerians in how they spend the approved funds for electricity projects in the country, and to reduce vulnerability to corruption and mismanagement.
“SERAP also believes that the release of the requested information and documents is of paramount importance to the public interest in preserving the legitimacy, credibility and relevance of the Bank as a leading international development institution. The Bank ought to lead by example in issues such as transparency and public disclosure raised in this request.
“It would also demonstrate that the Bank is willing to put people first in the implementation of its development and governance policies and mandates, as well as remove any suspicion of the Bank’s complicity in the alleged mismanagement of electricity projects-related funds.
“SERAP’s report, titled: From darkness to darkness: How Nigerians are paying the price for corruption in the electricity sector documents widespread and systemic corruption in the electricity sector, and reveals how about N11trillion electricity fund was squandered by successive administrations in Nigeria since the return of democracy in 1999.
“This report raises specific questions of public interest, and the World Bank ought to be concerned about how Nigerian authorities are addressing reports of widespread and systemic corruption in the electricity sector, and to seek some answers from the authorities on the problems.”
SERAP, while noting that millions of Nigerians still lack access to free pre-paid meters, stressed that authorities continue to use patently illegal and inordinate estimated billing across the country, increasing consumer costs, and marginalizing Nigerians living in extreme poverty.
The organisation, therefore, urged Malpass to disclose and release information and documents relating to the spending of funds approved and released to Nigeria between 1999 and 2020 to improve access to regular and uninterrupted electricity supply, including copies of supervision reports, periodic reviews and other appropriate reports on the bank’s role in the spending and disbursement of the funds, as well as specific projects on which the funds have been spent, among others.
Earlier, the World Bank had approved the sum of $500million to Nigeria to boost access to electricity and improve the performance of electricity distribution in Nigeria.
The bank, in a statement issued, last Friday, titled, ‘Nigeria to Improve Electricity Access and Services to Citizens,’ said financial support would be provided to private distribution companies only on achievement of results in terms of access connections, improved financial management and network expansion.
The statement said, “85 million Nigerians don’t have access to grid electricity. This represents 43% per cent of the country’s population and makes Nigeria the country with the largest energy access deficit in the world.
“The lack of reliable power is a significant constraint for citizens and businesses, resulting on annual economic losses estimated at $26.2billion (¦ 10.1trillion) which is equivalent to about two per cent of GDP.
According to the 2020 World Bank Doing Business report, “Nigeria ranks 171 out of 190 countries in getting electricity and electricity access is seen as one of the major constraints for the private sector.”
The statement quoted World Bank Country Director, Shubham Chaudhuri, as saying, “Improving access and reliability of power is key to reduce poverty and unlocking economic growth in the aftermath of the global Covid-19 pandemic.
“The operation will help improve the financial viability of the DISCOs and increase revenues for the whole Nigerian power sector, which is critical to save scarce fiscal resources and create jobs by increasing the productivity of private and public enterprises.
“The Nigeria Distribution Sector Recovery Program (DISREP) will help improve service quality, as well as, the financial and technical performance of distribution companies by providing financing based on performance and reduction of losses. This project complements the support provided under the Power Sector Recovery Operation (PSRO) approved in June, 2020.
“Specifically, it will ensure that distribution companies make necessary investments to rehabilitate networks, install electric meters for more accurate customer billing and to improve quality of service for those already connected to the grid. It will also help strengthen the financial and technical management of DISCOs to improve the transparency and accountability of the distribution sector.”
According to the World Bank task team leader for the project, Nataliya Kulichenko, “The program will only be eligible to those DISCOs that transparently declare their performance reports to public with the actual flow of funds based on strict verification of achieved performance targets by an independent third party. The program would also make meters available at affordable prices to all consumers in Nigeria, a long pending demand of Nigerians.”
The statement added that “the program will reduce the CO2 emissions of the Nigerian power sector by reducing technical losses, increasing energy efficiency, replacing diesel and biomass with grid-electricity, and investing more in on- and off-grid renewable energy. DISREP supports the development of regulatory guidance on climate-resilient infrastructure and facilitates the inclusion of climate risks in decision making.”

Continue Reading

News

FG Spends N10tn On Power Since Privatisation

Published

on

 

The Federal Government says it has invested more than N10tn in Nigeria’s electricity sector since its privatisation in 2013, but the intervention has yet to deliver the reliable power supply expected from the reform.

The Managing Director of FGN Power Company Limited, Kenny Anuwe, disclosed this yesterday at the sixth annual conference of the Power Correspondents Association of Nigeria, in Abuja.

The conference afforded stakeholders to examine the country’s roadmap to reliable and affordable electricity under the Federal Government’s ambition to grow the economy to $1tn by 2030.

Anuwe said the huge government spending has kept the industry afloat but stressed that public funding alone could not address the country’s electricity challenges, calling for increased private sector participation and alternative financing models to accelerate infrastructure development.

The conference was themed, “$1trn Economy: Nigeria’s Roadmap to Reliable and Affordable Power Supply.”

The disclosure raises fresh questions about the outcome of the 2013 power sector privatisation, which transferred the country’s 11 distribution companies and six generation companies to private investors, while the Federal Government retained ownership of the transmission network.

Despite successive government interventions, electricity supply has remained unstable, with inadequate generation, gas shortages, weak transmission and distribution infrastructure, mounting sector debts and poor investment continuing to undermine the industry.

Anuwe acknowledged that government funding had been significant but insufficient to meet the sector’s ambitions.

“Government has invested over N10tn in the electricity sector since the advent of privatisation. But is it enough? How much money is enough? If government didn’t invest that money, the industry would not be standing today.

“No matter how you look at it, no matter how critical you are about what government’s role is, if government did not put that money in, the industry would not be standing,” he said.

He, however, described the continued dependence on government funding as unsustainable, noting that the Federal Government was responsible for more than 95 per cent of new infrastructure investment in the sector.

“That’s not why we privatised. We have all kinds of excuses why that has happened. And a lot of them are legitimate. But it’s time for us to move from excuses to saying how do we fix it. It does not need the government to do everything. I believe that government cannot do everything,” Anuwe said.

He said the country needed simpler investment structures, predictable regulations, clear institutional responsibilities and commercially viable projects to attract private capital.

According to him, the FGN Power Company is targeting an investment structure that could attract 1bn, with the Africa Finance Corporation expected to match the amount.

He disclosed that the company’s ongoing Presidential Power Initiative projects were expected to deliver additional transmission capacity, with a target of 5,540 megawatts by 2029 and at least 60 per cent improvement in grid reliability.

The projects include a second batch of 12 Siemens substations and special projects involving Omotosho substations, which are expected to cumulatively deliver nearly 3,400MW.

Anuwe said most of the ongoing first-phase transmission substation and line projects were now expected to be completed in the first quarter of 2027, following delays.

He added that the company had secured financing for its pilot phase and was working with international technical and financial partners, including Siemens Energy, China Machinery Engineering Corporation and TBEA.

The Minister of Power, Joseph Tegbe, in his address, said the Federal Government had also developed a four-pronged roadmap to address the sector’s challenges through grid stabilisation, sector liquidity and sustainability, asset optimisation and expansion and enhancement of the national grid.

He said the government had raised N1.23tn under its N3.3tn plan to settle verified legacy debts owed to electricity generation companies.

According to him, more than 2.8 million electricity customers have been metered under the Presidential Metering Initiative, while additional transmission capacity exceeding 15,000 megavolt-amperes had been added to the national grid between 2023 and October 2026.

“Let me inform this gathering that we have developed a four-pronged roadmap to address
the power sector challenges comprehensively. These are Grid Stabilisation, Sector Liquidity
and Sustainability, Asset Optimisation, and Expansion and Enhancement of the grid. Central
to this plan is a corridor approach that prioritises major load centres for reliable, round-
the-clock electricity supply.

“A technical audit has been commissioned to establish a robust diagnostic baseline, identify critical constraints and guide the prioritisation, sequencing and
execution of interventions. The corridor approach gives this roadmap a practical industrial focus.

“In the past two months alone, I have commissioned newly installed substation equipment across Kumbotoso, Dankata, Mashi, Dan-Agundi, Apapa, Ijora, Ikeja, Biliri, Walalambe and other locations, adding over 1,300MVA to Nigeria’s transmission capacity. This has unlocked more power to the respective Distribution Companies for onward distribution to industrial and household customers,” Tegbe said.

He added that the government was adopting a corridor-based approach to improve electricity supply in major economic centres, beginning with the Lagos-Ogun axis and Abuja franchise area, which together account for more than 50 per cent of national electricity demand.

The minister said the proposed 24-hour electricity zones would align generation, transmission and distribution capacity with demand in industrial clusters, subject to technical readiness and commercial viability.

He also identified vandalism as a major threat to electricity infrastructure, disclosing that President Bola Tinubu had approved a coordinated anti-vandalism campaign involving security agencies.

Earlier, the Chairman of PCAN, Obas Esiedesa, said reliable and affordable electricity was indispensable to the country’s ambition of building a $1tn economy by 2030.

He urged stakeholders to move beyond identifying the industry’s problems and focus on practical solutions, particularly investment, infrastructure development and sustainable financing.

 

 

Continue Reading

News

Fubara: Why We Engage Only Qualified Engineers, Indigenous Contractors On Projects …As Governor Bags NATE Platinum Award, Inducted Into Highest Membership Cadre

Published

on

Governor of Rivers State, Sir Siminalayi Fubara, has stated that his administration engages indigenous contractors,  qualified engineers and technologists in road and housing projects to ensure the delivery of standard and quality projects in  the State.

 

Governor Fubara stated this yesterday  while declaring open the 42nd Conference of Technologists in Engineering ( CONFOTECH)  and Annual General Meeting of the Nigerian Association of Technologists in Engineering, (NATE), in Port Harcourt.

 

The conference  saw the association conferring its Platinum Award on  Governor Siminalayi Fubara and his induction into the highest membership cadre of NATE in recognition of his massive infrastructural development across Rivers State.

 

Governor Fubara, who was represented by his Chief of Staff, Mr. Sunny Ewule,  expressed  the readiness of his administration to the continued partnership and support for professional associations in promoting professionalism, building capacity and driving technological advancement.

 

He  thanked  the leadership and the entire membership of NATE for finding him  worthy of  their  most prestigious award and honour, the NATE Platinum Award, and the accompanying induction into the highest membership cadre of the association.

 

“I consider  this award not as a personal achievement but as a recognition of the collective effort of  my administration and the good people of Rivers State in the area of infrastructure development and the deployment of engineering and technological solutions to advance the socio-economic development of the state, he said.

 

Governor Fubara noted that the theme of the conference: Safety, Regulation and Enforcement in Engineering: A Panacea to Industrial and Technological Growth in Nigeria, could not be more timely and relevant.

According to  Fubara, no meaningful industrial growth can take place  without safety,  strong regulation, and enforcement, adding that it is for that reason that his  administration has continued to insist on standard, quality delivery, and the engagement of qualified engineers, technologists and indigenous contractors in  road construction, housing and other major developments across the state.

 

In his welcome address, the National President of the Nigerian Association of Technologists in Engineering (NATE), Engr. Dominic Udoatan, said the conference underscores a fundamental truth that safety, effective regulation and strict enforcement are indispensable to sustainable industrial and technological growth.

 

He urged government, regulatory bodies, employers and professional associations to work together to ensure competence, accountability and the protection of lives and property, while expressing the association’s sincere appreciation to Governor Fubara’s administration for its recognition of the importance of infrastructure, technical competence and technological advancement.

 

 

Continue Reading

News

IGP Warns Police Officers Against Partisanship …Directs Regular Engagement With Journalists

Published

on

The Inspector-General of Police, Olatunji Disu, has warned officers of the Nigeria Police Force against engaging in partisan political activities, insisting that the Force would remain neutral before, during and after the 2027 general elections.

The IGP gave the directive during a strategic meeting with senior police officers, including Deputy Inspectors-General of Police, Assistant Inspectors- General of Police and Commissioners of Police, at the Force Headquarters, Abuja, last Wednesday.

He told the officers across the country to maintain regular interactions with journalists as part of efforts to tackle misinformation and fake news ahead of the elections.

He said sustained engagement with the media would strengthen public communication, promote transparency and help curb the spread of misleading information capable of undermining public confidence in the electoral process.

Disu assured that the Nigeria Police Force would not allow itself to be used by politicians or political parties, saying the Force remains committed to providing a level playing field for all participants in the electoral process.

“We will remain neutral, ensure the safety and security of the electorate before, during and after the election,” he said.

The Police Chief warned that any police officer found participating in partisan politics would face appropriate disciplinary and legal consequences.

On the protection of citizens’ rights, the IGP charged Commissioners of Police to ensure that all reported cases of human rights violations are properly documented, investigated and resolved within a reasonable period.

He also directed police commands and zones across the country to establish accessible and visible Complaints Response Units to enable members of the public report alleged abuses and obtain appropriate redress.

Disu emphasized the need to improve the welfare of police personnel, directing Commissioners of Police to ensure prompt payment of death benefits to families of fallen officers and personally visit such families to demonstrate the Force’s support and solidarity.

He highlighted some of the achievements recorded by the Force but maintained that more efforts were required to address prevailing security challenges, particularly banditry in parts of the country.

He also cautioned Commissioners of Police against travelling outside their respective states without obtaining express approval from his office.

The IGP thanked President Bola Tinubu for his continued support and commitment to strengthening the capacity of the police to combat crime and maintain national security.

 

King Onunwor

Continue Reading

Trending