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$10bn is required yearly for 10 years to fix power sector — FG

Published

9 months ago

April 30, 2024

The Federal government has emphasised that for the power sector to operate at peak performance, an annual investment of $10 billion is imperative, just as it also disclosed that the country would allocate N2.9 trillion to achieve full sector subsidy.

Speaking yesterday in Abuja at a one-day investigative hearing on halting the new electricity tariff increase by the Nigerian Electricity Regulatory Commission (NERC) for onward implementation by the Distribution Companies (DisCos), the Minister of Power, Adebayo Adelabu said that the 10 billion dollars was needed annually in the next ten years to revive the nation’s power sector and end the liquidity challenge.

This is as Senators have called on the Minister of Power, Adebayo Adelabu and the Nigerian Electricity Regulatory Commission, NERC, to as a matter of urgency, reverse the recent decision to increase electricity tariff for band A customers in the country.

The investigative hearing by Senator Enyinnaya Abaribe, APGA, Abia South led Senate Committee on Power is also about the N2.9tn required for electricity subsidy payment, other debts owed in the sector, and the state of metering in the country as well as the $1.3 billion owed gas companies even as it asked why Nigerians were suddenly classified under various bands.

The Minister told the Senate Committee that the major challenge in the sector was absence of liquidity, saying that the sector has been operating on a subsidised tariff regime, given the absence of a cost-reflective tariff, just as he stressed the subsidy had not been funded over the years as huge liabilities was been owned the Generating Companies ( GenCos) and the Gas Companies.

Adelabu who noted that the inability of the government to pay the outstanding N2.9 trillion subsidy was due to limited resources, hence the need to evolve measures to sustain the sector, however, pleaded with the Senators to support the process of paying the debt owed operators across the value chain of generation transmission and distribution.

According to him, the increase was based on supply and that any customer that do not receive 20 hours power supply will not be made to pay the new tarrif, adding that the government was committed to ensuring sustainable reform in the sector, even as he told the Senate that eight million meters would be acquired in the next four years.

The Minister who noted that there was the urgent need to clear the outstanding debt owed GenCos and Gas companies, said, “For this sector to be revived, government need to spend nothing less than 10 billion dollars annually in the next 10 years. This is because of the Infrastructure requirement for the stability of the sector, but government can not afford that.

According to him, poor metering remains a big issue too in the industry when he told the lawmakers about how a company, Ziklag Networks Limited allegedly collected N32 billion for a contract to supply meters but has refused to do so in 20 years.

“And so we must make this sector attractive to investors and to lenders. So for us to attract investors and investment, we must make the sector attractive, and the only way it can be made attractive is that there must be commercial pricing.

“If the value is still at N66 and the government is not paying subsidy,the investors will not come. But now that we have increased tarrif for a Band, there are interest been shown by investors.”

According to Adelabu, to improve power supply, the government was investing in hydroelectric power, even as he said that construction of 700 megawatt power in Zungeru had commenced, while Kashimbila Hydroelectric power plant of 40 mega watt was awaiting evacuation to improve generation.

The Minister also disclosed that there was also an ongoing investment in 26 small hydropower dams to boost electricity production across the country.

Officials of the Central Bank of Nigeria were also on the ground to provide details on how to close the metering gap of 8 million meters.

In his submission, CBN Director of Development Financing, Sahaad Ahmad said the CBN provided an N55 billion loan which was assessed by all the 11 DISCOS, pointing out that only N6b has been paid back and that CBN’s intervention has done little to stop estimated billing as many customers remain unmetered.

The only group that seems comfortable with NERC and its action appears to be the Association of distribution companies.

Every other speaker -including the Manufacturers Association of Nigeria and a former NERC Chairman, Sam Amadi believes sufficient consultation was not done and that the increase was discriminatory and in violation of the law.

Chairman, National Electricity Regulatory Commission, NERC, Sanusi Garba solidly backed the position of the Minister, said that it was a “miracle” that the DISCOS remained afloat to supply electricity as at the 1st Quarter of 2024.

When it was time for the Senators to respond to the presentation of the Minister, they however decried the experiences of Nigerians on electricity supply over the years, despite the unbundling of the sector.

The toughest opposition came from the Senators themselves -who believe the DISCOS have done little to improve their capacity and are all out to rip off their customers to cover for their inefficiency.

On his part, the Vice Chairman of the Committee, Senator Lola Ashiru, APC, Kwara South who noted that Nigerians were paying for the inefficiency of power sector operators, said that there was a lot of inefficiency across the value chain of generation, transmission, and distribution, adding that poor Nigerians must be protected and that there was the need to consider a reversal of the tariff increase.

Also speaking, Senator Simon Lalong, APC, Plateau South who told the Minister that there was no consultation before the increase, said that issues of palliative should have been discussed and provided before the tarrif increase.

On his part, Chairman of the Committee, Senator Abaribe who noted that what Nigerians wanted was a solution to the issues and ways to ensure liquidity in the sector, also decried the non of appearance of a company “ZIGLAKS” over the failed agreement to provide prepaid meters for Nigerians, just as he alleged that the company had received N32 billion in 20 years to meter Nigerian electricity consumers.

Also speaking, Senator Adamu Aliero, PDP, Kebbi Central who also said that there was no due consultation before the tariff was increased, said that the public was not at peace with the increase, saying that the increase was over 200 per cent, hence the need for a reversal of the tarrif increase.

Presentations were made by the Nigerian Electricity Regulatory Commission (NERC), Manufacturers Association of Nigeria (NAN), Association of Power Generation (Gencos), Electricity Distribution Companies (DisCos) among others.

News

JUST IN 2025 Ramadan: Sultan Makes New Announcement For Muslims

Published

2 hours ago

January 30, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The Sultanate Council Advisory Committee on Religious Affairs, in collaboration with the National Moon Sighting Committee, has confirmed that there were no verified sightings of the crescent moon marking the beginning of Sha’aban 1446AH.

This announcement holds significant importance for Muslims in Nigeria, as Sha’aban is the last month before Ramadan, the holiest month in Islam.

Official Declaration of Sha’aban 1446AH
In a formal statement, Sambo Wali Junaidu, the Wazirin Sokoto and Chairman of the Advisory Committee on Religious Affairs, Sultanate Council, Sokoto, disclosed that no credible reports of moon sightings were received from moon sighting committees across the country.

As a result, Thursday, January 30, 2025, will be observed as the 30th day of Rajab 1446AH, while Friday, January 31, 2025, has been officially declared as the first day of Sha’aban 1446AH.

Sultan of Sokoto Endorses the Decision
The declaration was formally endorsed by His Eminence, Alhaji Muhammad Sa’ad Abubakar, the Sultan of Sokoto and President-General of the Nigeria Supreme Council for Islamic Affairs (NSCIA).

“The confirmation of Sha’aban’s commencement is crucial, as it ensures consistency in the Islamic calendar and helps guide religious observances for Muslims across the country,” the statement emphasized.

Call for Spiritual Preparation for Ramadan
In light of this development, the Sultanate Council has advised Nigerian Muslims to adhere to official moon sighting announcements and begin spiritual preparations for Ramadan.

Sha’aban is considered a sacred month in Islam, often dedicated to increased prayers, fasting, and self-reflection in anticipation of Ramadan, which is set to begin in the coming weeks.

The Council reiterated the importance of unity and adherence to Islamic traditions, urging Muslims to take advantage of Sha’aban for spiritual purification and devotion.

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JAMB Suspends Law Programs in Eight Universities, Including KWASU and Redeemers.

Published

2 hours ago

January 30, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The Joint Admissions and Matriculation Board (JAMB) has announced that it will no longer conduct admissions for the Law program in eight universities. This decision was made following the suspension of the Bachelor of Laws program by the Council of Legal Education for the 2025/2026 academic session at the affected universities.

The affected institutions are:

– *Kwara State University*, Malete, Ilorin, Kwara State

– *Bingham University*, Karu, Nasarawa State

– *Redeemers University*, Ede, Osun State

– *Western Delta University*, Oghara, Delta State

– *Taraba State University*, Jalingo, Taraba State

– *Arthur Jarvis University*, Akpabuyo, Cross River State

– *Alex Ekwueme Federal University*, Ndufu-Alike, Ebonyi State

– *Nigerian Police Academy*, Wudil, Kano State

According to JAMB spokesman, Fabian Benjamin, the suspension of the Law programme at the Nigerian Police Academy will last for two academic sessions, specifically the 2025/2026 and 2026/2027 sessions.

“As a result, JAMB will not approve any admissions for candidates seeking to enroll in the Law program at the aforementioned universities for the 2025/2026 academic session. Furthermore, the ban on registration for the Law program at the Nigerian Police Academy will extend into the 2026/2027 academic session,” the statement concluded.

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Ex-President Jacob Zuma’s daughter arrested over South Africa riots

Published

2 hours ago

January 30, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The daughter of former South African President Jacob Zuma, Duduzile Zuma-Sambudla, has been arrested over her alleged involvement in the 2021 riots that left over 300 people dead, police say.

Violence, chaos, and fear ripped through the port city of Durban, then spread to Gauteng, after Zuma’s jailing sparked intense protests over four years ago.

Zuma-Sambudla, a controversial figure in her own right, was accused of sharing incendiary social media posts that fuelled the civil unrest.

The arrest comes as a “result of a meticulous investigation” said spokesperson for the Hawks elite police unit, Brig Thandi Mbambo.

Zuma-Sambudla handed herself in to Durban Central police station on Thursday morning to face charges under the Protection of Constitutional Democracy against Terrorist and Related Activities Act and incitement to commit violence, police said.

Her father’s party uMkhonto WeSizwe (MK), of which she is a senior member, confirmed her court appearance and urged supporters to “mobilize all ground forces to attend in numbers.”

While she has not commented directly on the charges, Zuma-Sambudla shared a cryptic note on X that simply said: “We see you.”

MK party spokesperson Nhlamule Ndhela told local broadcaster ENCA she had long been preparing for this moment

“She conditioned herself, because there have been many threats about her imminent arrest for the past three or four years,” he said.

He added that she will abide by the law as “a law-abiding citizen”.

This is not the first time her name has been brought up in connection to the 2021 riots, which are considered one of the bloodiest episodes in post-apartheid South Africa.

Zuma resigned as president in 2018 after nine years in office, plagued by corruption allegations, which he claimed were part of a political conspiracy.

Three years later, he was sentenced to 15 months in prison for contempt of court after refusing to testify before a panel investigating corruption under his presidency.

Protests erupted after he surrendered to serve his sentence.

During the unrest, Zuma-Sambudla was outspoken on X, frequently sharing images of the destruction and chaos, accompanied by the caption: “KZN, we see you.”

She used this phrase often throughout the violence. In a now deleted post, she shared a video of someone firing an automatic rifle at a poster of President Cyril Ramaphosa.

In 2022, Brig Mbambo , told local media they were not directly investigating her, but she had been named in statements from sources.

In response to this, Zuma-Sambudla said on X, “I have no fear! I will not be intimidated! I have beaten the dogs, now the masters are coming out! We see you!”

At the same time, the Jacob Zuma Foundation, said in a statement the former president’s children were being targeted.

Last year, the South African Human Rights Commission (SAHRC) released a report that said the riots were a “carefully orchestrated event”.

But it said it could find no direct link to Zuma’s arrest.

In 2023, a former security guard was sentenced to 12 years in prison for his role in the deadly riots.

He was the first person to be prosecuted for the riots.

President Cyril Ramaphosa, who succeeded Jacob Zuma in 2018, described the violence as an “attempted insurrection”.

More than 200 shopping malls were looted and more than 150,000 jobs were estimated to have been lost during the unrest, which lasted for several days.

Last year, Zuma’s MK ran against his former party, the ANC, in elections, gaining 15% of the vote to become the country’s third largest party