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Federal Government Plans N450bn Power Intervention Fund

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The Federal Government of Nigeria is set to spend N450bn on power interventions in 2024.

This is in line with the Nigerian Bulk Electricity Trading Company’s budget analysis. For the “FGN Power Intervention Fund,” N450 billion was set aside under the company’s capital expenditure budget.

In 2024, the Government Owned Enterprise plans to spend a total of N454.81 billion.

N2.44bn will be spent on personnel costs, N2.36bn will be spent on other recurrent costs, N580m on general travel and transport, N15m on utilities, N110m on materials and supplies, N210.75m on general maintenance services, N34m on other services, N60m on fuel and lubricants, N40m on financial charges, N576m on miscellaneous, and N736.51m on supplementary overhead.

Most of the firm’s spending would be on power intervention funds in the New Year. As of May 2022, the Federal Government’s intervention fund to electricity distribution companies rose to N2.9trn.

According to a The PUNCH report, the N2.9tn is the total funding extended to the sector since privatisation in 2013. The Federal Government has consistently intervened in the power sector. In 2017, the Federal Executive Council approved N701bn as Power Assurance Guarantee for the Nigeria Bulk Electricity Trading Company for two years to pay the generation firms.

In 2019, the government announced that the power sector was going to get another intervention of N600bn. In 2019, the Market Operator, Transmission Company of Nigeria, Edmond Eje, stated, “At this stage I’ll tell you that it is for the market. If the money is injected into the Gencos, it is for the market; if it is injected into the Discos, it is for the market. It is generally for the shortfall in the payment of monthly invoices.”

Despite these intervention funds, the power sector has been besieged with many grid collapses. As of October 2023, the House of Representatives stated that it was set to probe all financial interventions by the Federal Government in the power sector in the past 10 years.

It said the investigation would cover over $1.25bn injected into the sector by the government since the 2013privitisation till date.

A House of Rep member, Ademorin Kuye (APC, Lagos), said while moving the motion, “The Nigeria Electricity Regulatory Commission performance as an industry regulator is questioned for its ability to move the industry forward and eliminate illiquidity.

“The Nigeria Electricity Supply Industry faces threat due to the poor performance and transparency of DISCOs and the NERC’s inability to sanction erring stakeholders.”

In its New Year statement, the Lagos Chamber of Commerce and Industry noted that bringing private sector investment into the transmission segment of the power sector would help improve the sector.

It said, “The government needs to consider bringing private sector investment into the transmission segment of the power sector. This would ensure adequate technical and financial capacity for a well-functioning sector to power economic growth.”

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JUST IN: Labour Declares Indefinite Strike Over Failure To Agree On New Minimum Wage

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The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), which represent organised labour, have announced an indefinite strike that would start on June 3, 2024.

The Federal Government appears stubborn in its refusal to enhance the N60,000 it gave at the reopening of the tripartite committee meeting in Abuja on Friday, according to organised labour, which is why the strike has become essential.

Festus Osifo, the president of the TUC, and Joe Ajaero, the president of the NLC, jointly announced the strike.

Osifo stated, “As you are aware, we had the last meeting preceding today, which was on Tuesday. In that meeting, they (the government) offered N60,000. They invited us for a meeting today (Friday), and we deliberated on it, thinking they were showing the necessary commitment.

“To our surprise, there was no serious representation from either the Federal Government or the state governors who are supposed to be part of the negotiations.

“So, technically, we felt they have abandoned us because they remained adamant about the N60,000 offer. Not even a kobo was added to what we rightfully rejected.”

 

More to come…

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Minimum Wage: Federal Government Fails To Shift Grounds As Meeting Ends In Deadlock

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Friday’s talks on minimum wage between the Federal Government and Organised Labour hit a brick wall when the government failed to shift grounds on the N60,000 it proposed during the last meeting.

With this latest move, the organised labour comprising of the Nigeria Labour Congress and Trade Union Congress may embark on a nationwide strike.

Recall that the NLC and TUC had given a May 31, 2024 ultimatum on the new minimum wage.

As of the time of filing this report, an emergency press briefing has been called by labour.

On Tuesday, talks between the Federal Government and organised Labour broke down after the government and organised private sector raised their offers to N60,000.

The government added N3,000 to its initial offer of N57,000 proposed last week, taking the total figure to N60,000.

It was dismissed by labour at the meeting.

At the meeting, labour again lowered its demand by removing N3,000 from the N497,000 it proposed last week, pegging the new proposal at N494,000.

To fast-track the negotiation process, the Nigeria Labour Congress and Trade Union Congress of Nigeria on May Day gave the committee till the end of the month to wrap up talks on a new national minimum wage.

That ultimatum will expire on Friday night.

The President of the TUC, Festus Osifo said the ultimatum issued by labour remained following the breakdown of talks on Tuesday.

“We have an ultimatum on May Day that if by May end, we don’t have a new minimum wage that will take a worker home, we will not be able to guarantee industrial peace.

“We are sticking to that ultimatum,” the president of the TUC, Osifo said.

President Tinubu, through vice president, Kashim Shettima, on January 30, 2024, inaugurated the 37-member tripartite committee to come up with a new minimum wage.

With its membership cutting across federal and state governments, the private sector, and organised labour, the panel is to recommend a new national minimum wage for the country.

Shettima, during the committee’s inauguration, urged the members to “speedily” arrive at a resolution and submit their reports early.

“This timely submission is crucial to ensure the emergence of a new minimum wage,” Shettima said.

He also urged collective bargaining in good faith, emphasising contract adherence and encouraging consultations outside the committee.

The 37-man committee is chaired by the former Head of the Civil Service of the Federation, Goni Aji.

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JUST IN: 40 Out Of 92 Federal Directors Fail Permanent Secretary Qualifying Exam

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No lesser than 40 directors failed the qualifying examination for appointment to the position of permanent secretaries.

According to The Nation, result shows that out of 92 directors who took the examination on May 27, 2024, 40 scored below 50 percent, indicating failure.

It was also gathered that three directors were absent, while one was unable to complete the exam.

A memorandum dated May 28, 2024, originating from the Office of the Head of Service, designated as “HCSF/ CMO/ AOD/012/IX/59,” disclosed that the subsequent phase of the selection procedure will involve an ICT-based assessment.

This setback occurs amidst the federal government’s efforts, channelled through the Office of the Head of Civil Service, to address prevailing and forthcoming vacancies by appointing new permanent secretaries.

The vacancies in question span various states, including Akwa Ibom, Anambra, Bauchi, Ebonyi, Jigawa, Ondo, Zamfara, and regions within the South-East and South-South.

Folashade Yemi-Esan, the Head of Civil Service of the Federation, relayed pertinent details in a circular addressed to key government figures such as the Chief of Staff to the President, Femi Gbajabiamila, and the Secretary to the Government of the Federation, George Akume.

Yemi-Esan’s circular, dated April 19, 2024, and personally signed, outlined eligibility criteria, stressing that only directors who attained substantive director status by January 1, 2022, qualify for consideration.

The circular specified the initiation of the process for appointing Permanent Secretaries, emphasizing the importance of adhering to eligibility criteria, updating records on the IPPIS Verification Portal, and maintaining a clean disciplinary record.

The circular, referenced as “HCSF/CMO/AOD/012/IX/24,” stated: “Following the approval of Mr. President, the Office of the Head of the Civil Service of the Federation is initiating the process for appointing Permanent Secretaries in the Federal Civil Service for current and anticipated vacancies in Akwa-Ibom, Anambra, Bauchi, Ebonyi, Jigawa, Ondo, Zamfara states, South-East, and South-South geo-political zones, where current Permanent Secretaries have retired or will retire between April and September 2024.”

Eligibility criteria outlined in the memo include having reached the position of substantive Director on Salary Grade Level 17 by January 1, 2022, updating records on the IPPIS Verification Portal, being from the specified states or geopolitical zones, and not retiring before December 31, 2025.

Additionally, officers currently undergoing disciplinary procedures are excluded from the selection process.

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