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Discos Failed To Remit N208bn In 2022 — Federal Government

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Power distribution businesses failed to send a total of N208.8 billion to the Nigerian Electricity Supply Industry in 2022, according to the Federal Government.

Data from the Nigerian Electricity Regulatory Commission’s (NERC) most recent Fourth Quarter 2022 Report, as well as data from the First, Second, and Third quarters, revealed on Sunday that the Discos never made entire repayments throughout the time period.

In Nigeria, there are approximately 11 power distribution firms in charge of providing electricity to customers within their assigned service regions. They consist of the discos in Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt, and Yola.

The Discos were created in 2013 as part of Nigeria’s power sector reforms aimed at improving the efficiency and reliability of electricity supply across the country.

The firms collect electricity bills from consumers on behalf of the power market. They make remittances to the power market through the Nigerian Bulk Electricity Trading Plc and the Market Operator, an arm of the Federal Government-owned Transmission Company of Nigeria.

But figures obtained from the power sector regulator showed that the Discos did not remit N49.23bn, N31.3bn, N58.3bn, and N69.94bn in the fourth, third, second, and first quarters of 2022, respectively, making a total of N208.8bn.

Commenting on market remittance, in its fourth quarter report, the NERC said,  “The combined invoices issued to the Discos in 2022/Q4 was N231.01bn consisting of: i) generation costs from the Nigerian Bulk Electricity Trading company: N188.74bn; ii) transmission and administrative services from the Market Operator: N42.27bn.”

“From this amount, the Discos collectively remitted a total sum of ₦181.78bn (₦145.91bn for NBET and ₦35.87bn for MO) with an outstanding balance of ₦49.23bn.”

The commission stated that poor remittance by the Discos was a direct consequence of the power firms recording higher than allowed Average Technical Commercial and Collection losses.

The NERC also stated that the combined invoices issued to the Discos in the third quarter of last year was ₦204.84bn, adding that this was split into generation costs from the NBET, ₦164.34bn; and transmission and administrative services from the MO, ₦40.50bn.

“Out of this amount, the Discos collectively remitted a total sum of ₦173.55bn (₦140.67bn for NBET and ₦32.88bn for MO) with an outstanding balance of ₦31.29bn.”

On the power market remittance in the second quarter, the NERC stated that the combined invoices from the NBET and MO to the Discos in Q2 2022 was N185.01bn, split into generation costs – N149.89bn, while transmission and administrative services was put at N35.12bn.

“Out of this amount, the Discos collectively remitted a total sum of N126.69bn (N102.35bn for NBET and N24.34bn for MO) with an outstanding balance of N58.32bn,” the report stated.

Similarly, data sourced by our correspondent from the Q1, 2022 report of the NERC on market remittance indicated that the combined invoices from NBET and MO to Discos in the first quarter of last year was N205.63bn, split into generation costs – N164.86bn; while transmission and administrative services was N40.77bn.

“Out of this amount, the Discos collectively remitted a total sum of N135.69bn (N109.96bn for NBET and N25.73bn for MO) with an outstanding balance of N69.94bn,” the commission stated.

Nigeria’s power sector is faced with a liquidity crisis and one of the reasons for this is the poor remittances by power distribution companies to the electricity market since the privatization of the industry in November 2013.

The President, Nigeria Consumer Protection Network, and coordinator, Power Sector Perspectives, Kunle Olubiyo, urged the new government led by President Bola Tinubu to take a holistic look at the power sector.

He told our correspondent in a recent interview that the privatization of the successor distribution and generation companies of the defunct Power Holding Company of Nigeria in November 2013, should be reviewed.

This, he said, was particularly due to the dysfunctional outputs of the power distributors since they were privatized, adding that the 10-year moratorium on power sector privatization would end this year.

Olubiyo said, “When this moratorium expires by October, naturally it will be without litigation because they’ve given the privatized companies 10 years. And so if in between the lines we try to shift the goalpost, then litigation can arise.

“If not for the activities of the banks that are now involved in the day-to-day running of some Discos, there is no way we would have been able push out this height of impunity in the sector. People make as much as N15bn in a month and they will still have a license for zero remittance.

“As consumers, are we not paying our power bills? For the generation companies, don’t they pay for gas? And somebody will collect money on our behalf and will not remit. So this system of privatization cannot work and has not worked since the sector was privatized 10 years ago.”

The Abuja-based power sector expert and former member of the Presidential Adhoc Committee on Review of Electricity Tariff in Nigeria, further called on the government to pull out its 40 percent stake in the Discos and break the 11 distribution companies’ franchises into smaller units so as to break the present market monopoly and promote the ideals of a competitive electricity market.

BIG STORY

BREAKING: EFCC Arrests Famous Nigerian Musician Terry Apala For Naira Mutilation

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Justice Akintayo Aluko of the Federal High Court sitting in Ikoyi, Lagos, on Friday, April 25, 2025, remanded a musician, Terry Alexander Ejeh, otherwise known as Terry Apala, in a Correctional Centre for alleged “mutilation of the Naira notes.”

He was arraigned by the Lagos Zonal Directorate 1 of the Economic and Financial Crimes Commission, EFCC, on Friday, April 25, 2025, on a one-count charge of “mutilating the Naira notes.”

The charge reads: “That you, TERRY ALEXANDER EJEH, on the 5th day of January, 2025, at La Madison Place, Oniru, within the jurisdiction of this Honourable Court, whilst dancing during a social event, tampered with Naira notes issued by the Central Bank of Nigeria by marching on the same and you thereby committed an offence contrary to and punishable under Section 21(1) of the Central Bank of Nigeria Act, 2007.”

He pleaded not guilty to the offence when it was read to him. In view of his plea, the prosecution counsel, S.I. Suleiman, prayed for a trial date and also urged the court to remand him in a Correctional Centre.

The defence counsel, Felix Nwabuda, informed the court of a bail application dated April 23, 2025 and prayed the court for a short date for the hearing of the application.

“Whilst praying the court for a short date for the hearing of the bail application, I will be craving the indulgence of the court to release the defendant to the defence. “We undertake to produce him in court. He will not evade hearing. He came in from the United Kingdom on April 23, 2025; and on the invitation of the EFCC, he came on his own.”

The prosecution counsel, however, opposed the application, saying, “ the application is alien and unheard of.”

“I urge the court to afford us the opportunity to look at the application and respond properly so that the court can make a well -informed ruling,” he said.

In a short ruling, Justice Aluko refused the application of the defence. Justice Aluko adjourned till May 5, 2025 and ordered the remand of the defendant in the Ikoyi Correctional Centre pending the determination of the bail application.

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Akpabio To Lead Nigerian Delegation To Pope Francis’ Burial

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President Bola Tinubu has dispatched a delegation to Vatican City for the funeral of Pope Francis, who passed away on Monday at the age of 88.

A statement released on Friday by Bayo Onanuga, special adviser to the president on information and strategy, announced that Godswill Akpabio, the senate president, is leading the five-member delegation to the funeral.

The other members of the delegation include Bianca Odumegwu Ojukwu, “minister of state for foreign affairs”; Lucius Iwejuru Ugorji, “president of the Catholic Bishops Conference of Nigeria”; Matthew Hassan Kukah, “archbishop of the Sokoto diocese”; and Ignatius Ayua Kaigama, “archbishop of the Abuja diocese.”

“The funeral service of the revered head of the Roman Catholic Church is scheduled to take place on Saturday at the Vatican.”

“The Nigerian delegation will formally deliver a letter to the acting head of the Vatican conveying Tinubu’s condolences.”

On Monday, Tinubu joined the global Christian community in mourning the late pope.

“Pope Francis was a humble servant of God, a tireless champion of the poor, and a guiding light for millions,” Tinubu said.

The president described the pope’s death, which occurred just after Easter Sunday, as “a sacred return to his Maker at a time of renewed hope for Christians”.

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BIG STORY

Rivers Situation Complex, I Need More Time To Prepare For Briefing — Ibas To Reps Panel

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Ibok-Ete Ibas, the sole administrator of Rivers, has asked the house of representatives ad hoc committee overseeing the emergency rule in the state for more time.

Ibas made this request on Friday when he appeared before the committee.

On April 15, Tajudeen Abbas, the speaker of the house, inaugurated the 21-member committee to ensure transparent governance and the rule of law in the state.

A day after the committee was formed, the lawmakers invited the Rivers sole administrator to appear before them on April 17.

Ibas was scheduled to address the lawmakers on governance in the state.

However, the sole administrator requested a rescheduling, and the meeting was moved to April 24.

The committee members met in the meeting room on Thursday, but Ibas did not attend.

Julius Ihonvbere, the chairman of the committee and leader of the house, declined to comment on the situation, simply stating, “No comment,” to journalists.

Addressing the committee on Friday, Ibas apologised to the lawmakers for not attending previous invitations.

He requested additional time to prepare a “comprehensive and constructive” briefing, citing the complexity of the situation in Rivers state.

“Today is exactly 10 days after the first invitation, and in between, we’ve had four days off the calendar as public holidays plus the weekends inclusive,” he said.

“The absence, of course, was not out of disregard but rather due to the weighty and urgent demands of stabilising governance in a state under a declared emergency.”

“I have always held the national assembly in the highest regard. I recognise the importance of your oversight responsibilities and your interest in the progress being made in Rivers state, which is presently relatively calm, but still fragile.”

“That said, I only request your understanding and the indulgence of this committee to grant me additional time to adequately prepare and present a comprehensive and constructive briefing.”

“Given the complexities and sensitivities surrounding the current transitional period in Rivers state, it is important that any engagement with this committee is done with the depth, accuracy and clarity it rightfully deserves.”

Ibas stated that he will cooperate with the committee to ensure that all relevant information is available in due course.

In a statement issued after the meeting, Ihonvbere said the committee has accepted Ibas’ apology and would reschedule the briefing.

“The Committee notes that the Administrator, in a correspondence received last night, expressed his regrets for not honouring earlier invitations and appeared in person today to offer a formal apology,” the statement reads.

“He also requested an opportunity to return for a more robust and comprehensive engagement with the Committee.”

“In keeping with the House’s tradition of fairness, and in recognition of the Administrator’s demonstration of respect and responsibility, the Committee has magnanimously accepted his apology.”

“Accordingly, the Committee has resolved to proceed with the rescheduled engagement on a date and time to be announced in due course.”

Ihonvbere added that the committee needs the cooperation of all stakeholders and remains open to constructive engagement in line with the principles of accountability and the rule of law.

On March 18, President Bola Tinubu declared a state of emergency in Rivers, citing the prolonged political crisis.

He also suspended Siminalayi Fubara, governor of the state; his deputy, Ngozi Odu; and all members of the Rivers assembly for a period of six months.

The president appointed Ibas, a retired naval chief, as the state’s sole administrator.

After his appointment, Ibas suspended all political officeholders appointed by Fubara.

Several stakeholders, including the Pan Niger Delta Forum (PANDEF), have criticised Ibas over the handling of the state’s affairs.

There have been protests in the state demanding the reinstatement of Fubara.

Fubara reportedly met with Tinubu in London last week as part of moves to resolve the political crisis in the state.

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