The Federal Road Safety Corps (FRSC) on Wednesday issued a disclaimer, distancing itself from any partnership with the Wazobia Conflict Resolution and Peace Initiative regarding the issuance of “Peace Ambassador” number plates.

In a statement signed by the Corps Public Education Officer, Assistant Corps Marshal Olusegun Ogungbemide, the FRSC described the claim by WACORPAI of a partnership as false and baseless.

The Corps clarified that Federal Government number plates are exclusively issued to government Ministries, Departments, and Agencies, not to individuals or private organizations.

“The Federal Road Safety Corps wishes to strongly issue a disclaimer, dissociating itself in totality from any form of partnership on the issuance of ‘Peace Ambassador’ number plates, as purportedly claimed by a certain group called Wazobia Conflict Resolution and Peace Initiative.”

“The public is to be aware that the announcement issued by WACORPAI informing its members of an existing partnership with the Federal Road Safety Corps is outrightly baseless and false.”

“This is because Federal Government Number Plates are only issued to Ministries, Departments and Agencies, not individuals irrespective of their affiliations,” the statement read in part.

The Corps Marshal, Shehu Mohammed, reiterated that the use of the so-called “Peace Ambassador” number plates is illegal. He warned that anyone caught using these plates would face legal consequences.

The FRSC urged members of the public currently using these plates to remove them immediately to avoid arrest. It also advised those intending to purchase such plates to desist from doing so.

The statement further cautioned the public against patronizing producers of the illegal number plates and emphasized the Corps’ commitment to enforcing the law. For further inquiries, the public is encouraged to contact the FRSC through official channels.

“To this end, the Corps Marshal, Shehu Mohammed wishes to for the umpteenth time reiterate the position of the Corps on the use of ‘Peace Ambassador’ number plates as illegal and anyone apprehended using same will be liable.”

“The general public is by this notice urged to desist henceforth from patronizing producers of those fake and illegal number plates.”

“Members of the Association who are presently using the number plates should take them off to avoid arrest while those intending to purchase same are equally advised to discontinue,” the statement concluded.

Wholesale gas-producing companies have unexpectedly stopped supplying natural gas to power generation companies for electricity production due to the non-payment of debts accrued from previous supplies.

This was revealed in a recent report by The Punch.

Dr. Joy Ogaji, the Chief Executive Officer of the Association of Power Generation Companies, shared this development in an interview (with The Punch) on Wednesday. She emphasized that the gas-producing companies had officially notified all GenCos of the suspension of natural gas supply.

The gas supply was abruptly halted after the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reportedly directed gas producers to suspend the delivery of natural gas to indebted GenCos until further notice, citing the increasing debts.

This has resulted in a nationwide electricity blackout, severely affecting power generation across the country.

Currently, over 70% of Nigeria’s power is generated by gas-fired plants.

Earlier this year, Minister of Power Adebayo Adelabu announced that the Federal Government would begin paying part of its debts to power generation companies and gas suppliers from April. He also mentioned that he would work with the Central Bank of Nigeria to prioritize foreign exchange allocation for the power sector to enhance generation capacity.

“The Federal Government is now prioritising paying down on the outstanding debts, and I have assured the board and management that effective from April, we will start paying down on debts, as a form of incentive to continue to have them in operation,” he said.

Although the government has paid N205bn of the debt owed to the GenCos in recent months, an ongoing dispute between NMDPRA and gas producers over the collection of the 0.5% wholesale price levy under the Petroleum Industry Act has prompted the suppliers to demand payment of outstanding amounts.

In the interview, Dr. Ogaji stated that all relevant authorities, including the presidency, have been informed of the situation and are awaiting necessary interventions.

She added that the debt, which was around N2tn earlier this year, has now risen to N2.7tn.

“It is no longer a matter of NMDPRA giving a directive. They have already stopped the supply of gas to power-generating companies.

“They (gas suppliers) have halted the supply. They have already informed our GenCos that they are not going to be supplying gas anymore until what is outstanding is settled and it didn’t happen today.

“We have told the Nigerian Electricity Regulatory Commission, they are already aware of the situation. There is nobody who would say they are not aware; the minister is aware, and the presidency is aware.”

“The total debt has now increased to over N2.7tn and you know that 70% of thermal GenCos’ invoice is gas.

“They have been paying a small amount. So, when they pay us nine percent, we just calculate nine percent of our gas invoice and send it to the gas supplier because that is the only way to survive. We are all sharing in the poverty that NBET is giving us.”

The halt in gas supply has disrupted the energy sector, raising concerns about energy shortages and instability in operations nationwide.

On Wednesday, Nigerians were plunged into darkness following another collapse of the national power grid, the 12th time this year.

According to reports, the grid went down at about 1:36 pm on Wednesday. By 2 pm, power generation had dropped to 0.00 megawatts, down from 3,087 MW at 1 pm and a peak of 4,013 MW at 4 am.

In October, the grid collapsed three times within a week, resulting in widespread blackouts that have sparked public concern.

A tweet from the official National Grid account confirmed that the grid collapsed at about 2:09 pm on Wednesday.

“The major grid setback has occurred and the restoration is to commence,” the tweet read.

Distribution companies also issued notices to their customers about the grid failure causing the outages. Jos Disco, in a statement by Head of Corporate Communications, Friday Elijah, said, “The current outage being experienced within our franchise states is a result of loss of power supply from the national grid. The loss of power supply from the national grid occurred this afternoon at about 1333 hours of today, Wednesday, 11th December 2024, hence the loss of power supply on all our feeders.

“We hope to restore normal power supply to our esteemed customers as soon as the grid supply is restored to normalcy. Thank you for your patience and understanding as we strive to serve you better.”

Similarly, Abuja Disco stated, “We wish to inform you that a system disturbance occurred on the national grid at 1:32 pm today (Wednesday) causing a power outage across our franchise areas.

“While gradual restoration of power supply has commenced, be assured that we are coordinating closely with relevant stakeholders to restore power fully as soon as the grid is stabilized.”

Kunle Olubiyo, President of the Nigeria Consumer Protection Network, called for an independent forensic audit of the gas suppliers’ debt claims, questioning their accuracy and relevance to the sector’s realities.

He further urged the government to fully privatize the power sector to eliminate inefficiencies and not serve as a scapegoat for sector failures.

Olubiyo (told The Punch), “What we need to do is adequately interrogate these claims; once they are checked, audited, and verified, then we can see what is going on in the sector. It’s a buying and selling market.

“The model currently being deployed at Azura is what we are supposed to have for all GenCos ab initio. When the government offered the power sector for privatisation (upstream and downstream), there was the provision of financial instruments such as letters of credit to help in the event of non-compliance with the market rules and obligations. That letter rule could be used to create some level of discipline, but players in the sector cut them off and preferred to get product on credit without a plan to pay back. The market should be administered like a business so that if there are infractions, you can call the penalty clauses and instruments. If you pledge an amount of money that can translate to the failure of the sector, there have to be punishments.”

“The Discos are taking supply in the value chain without any form of collateralization. It’s not done anywhere. The sector is only enjoying the goodwill of some personalities in the sector, who have a name and they are bankable. But this goodwill has also been overdrawn, so the earlier we face the facts, the better for us.”

He added, “I am sure that if we do proper follow-up and forensic checks, it is likely to find out that 75 percent of the bill we have been paying on subsidy by the federal government is public sector funded, just like the oil sector; nobody would want to reveal what has been over-bloated in the past. The danger is that the continued mismanagement of the public and private sector models is giving room for corruption because we can’t see in an actual sense the claims from all players are synergized corruption that is, in most cases, bloated.”

“It’s not impossible that some of these classes might be inflated. Government continued equity in the power sector is giving room for corruption. The government should not bear the brunt of challenges in any sector because some persons will latch onto it and begin to feed their pockets. The government should let go of the power sector and concentrate on the underserved and unreached persons to close the gap.”

Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority has denied instructing the halt in gas supply to power-generating companies.

In a statement signed by its Public Affairs Unit, the NMDPRA stated, “The attention of the NMDPRA has been drawn to a news publication with a spurious claim that the Authority has directed that Gas Supply to GENCOs be halted and instructed wholesale gas suppliers to stop the further supply of gas to companies due to failure in payment obligations.

“The NMDPRA wishes to state categorically that this report is false and completely unfounded. It has no bearing on the information shared at a recent stakeholders’ engagement held in Lagos between the Authority, the OPTS, IPPG, and other stakeholders in the oil and gas industry.”

The statement further clarified that the meeting was organized “to sensitise stakeholders on the requirements, opportunities, and benefits associated with the implementation of wholesale supply licenses as provided by sections 142 and 197 of the Petroleum Industry Act 2021. It was a follow-up to an earlier stakeholder engagement held at the NMDPRA corporate headquarters in Abuja on November 27, 2024.”

“The Authority wishes to reassure all our stakeholders and indeed the general public that at no time was the false statement made at that event and anywhere else, and are advised to completely disregard the publication as every effort is being made to ensure that the supply and distribution of natural gas and petroleum products to end users is seamless and unabated as we head into the festive season and indeed all through the coming year 2025.”

Credit: The Punch

The Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI) has attributed the worsening cash shortage across the country to the Central Bank of Nigeria’s (CBN) failure to meet the cash demands of commercial banks.

Speaking (with The Punch), ASSBIFI President Olusoji Oluwole emphasized the severe impact of the scarcity, especially as the festive season nears, with heightened demand for cash for shopping and business transactions.

“In terms of (the cash) scarcity, this is something that has not ended since the redesign of the naira,” Oluwole said.

Oluwole explained that banks have only two primary sources of cash: the CBN and retailers.

“Banks have only two sources of cash: the CBN and retailers. The CBN has not met banks’ demands, and retailers often sell cash for profit, making it harder for banks to access funds,” he said.

He pointed out that the apex bank has failed to meet the cash demands of banks, while retailers profit by selling cash instead of depositing it back into the banking system.

“But, of course, it is beginning to become more pronounced now that we’re heading towards the Christmas celebrations, where a lot of people are going to need money to carry out their shopping and other businesses,” he noted.

“Banks are not in a position to force retailers to bring the cash to banks,” he added, describing how this dynamic exacerbates the scarcity of cash in Automated Teller Machines (ATMs) and across bank counters.

Citing statistics, Oluwole stated that banks collectively require at least N20 million daily to operate, with ATMs needing approximately N8 million each and N4 million over the counters.

He stressed the importance of the CBN providing clear statistics on cash circulation to improve distribution efficiency.

“For us, we are not interested in trading games like we were doing last year but looking for solutions. The solution, one, is for CBN to have clear statistics, so that they understand where they are, how they are circulating, and where they are circulating to,” he said.

Oluwole also advocated for less dependency on cash, emphasizing that a cashless economy is cheaper, safer, and more efficient.

“An economy that operates in a cashless manner does better than a cash-dependent economy. It is a proven thing all over the world,” he stated.

Additionally, the ASSBIFI President called for security agencies to crack down on illegal currency trading.

“You cannot be selling cash. You cannot sell your currency to people for a profit at discounted rates. It is not done anywhere,” Oluwole emphasized.

He urged authorities to investigate reports of point-of-sale operators buying cash from fuel stations and supermarkets.

Oluwole concluded by reiterating that no bank deliberately withholds cash from its customers.

“No bank wants to starve its customers of cash. It does not make sense for any bank to hold on to cash, but you can only give what you have,” he said.

“As the cash crisis persists, stakeholders are urging the CBN to act swiftly to address these concerns and alleviate the strain on both banks and the public,” Oluwole stated.

Meanwhile, the National Coordinator of the Human Rights Writers Association of Nigeria (HRWAN), Emmanuel Onwubiko, in a statement criticized the CBN and its Governor, Olayemi Cardoso, for their mishandling of monetary policy, holding them accountable for the widespread hardship that has resulted.

He further pointed out how cash scarcity has left millions, especially in rural areas, unable to conduct transactions, thereby deepening the struggles of small businesses, artisans, and daily wage earners.

“Nationwide, long bank and ATM queues have become the norm, with depositors unable to access their funds despite sufficient balances,” he added.

Onwubiko argued that the crisis not only reflects poor monetary policy but also deeper systemic issues within Nigeria’s economy.

He urged President Bola Tinubu to intervene swiftly to stabilize the banking system and prevent an economic collapse.

The group also called on the National Assembly to summon the CBN Governor for accountability and oversight.