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Federal Government Spent N171.3bn On Electricity Subsidy In Six Months — NERC

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The Nigerian Electricity Regulatory Commission (NERC) says the federal government paid a total of N171.25 billion as electricity subsidy in the first six months of 2023.

NERC, in its second-quarter (Q2) report dated October 17, 2023, noted that the subsidy was due to the absence of cost-reflective tariffs across all distribution companies.

During the first half (H1) of the year, the commission reported a total subsidy of N171.25 billion, with N36.02 billion incurred in the first quarter (Q1) and N135.23 billion in Q2.

According to the commission, the increase in Q2 can be primarily attributed to the government’s policy of harmonising exchange rates.

“In the absence of cost-reflective tariffs, the government undertakes to cover the resultant gap (between the cost-reflective and allowed tariff) in the form of tariff shortfall funding,” the report said.

“This funding is applied to the Nigerian Bulk Electricity Trading (NBET) invoices that are to be paid by DisCos.

“The amount to be covered by the DisCo is based on the allowed tariff determined by the Commission and set out as their Minimum Remittance Obligation(MRO) in the periodic Tariff Orders issued by the Commission.

“It is important to note that due to the absence of cost-reflective tariffs across all DisCos, the government incurred a subsidy obligation of N135.23 billion in 2023/Q2, which is an increase of N99.21 billion (+275%) compared to the ₦36.02 billion incurred in 2023/Q1.”

The report also highlighted that, on average, the subsidy obligation incurred by the government per month was N45.08 billion in Q2 2023.

The NERC said the government’s subsidy obligation meant that in 2023/Q2, Discos were only expected to cover 53.25 percent of the total invoice received from NBET.

DISCOs Rake In N267.9BN, Q2 Collection Efficiency At 75.5%

According to the NERC, DisCos revenue for Q2 stood at N267.86 billion achieving a 75.5 percent collection efficiency.

In Q1, the collection efficiency stood at 68.75 percent.

Collection efficiency is the ratio of the amount that has been collected from customers relative to the amount billed to them by the DisCos.

For example, collection efficiency of 70 percent implies that for every N100 worth of energy billed to customers by DisCos, approximately N30 remained unrecovered from the billed customers.

NERC said: “The total revenue collected by all DisCos in 2023/Q2 was N267.86 billion out of the N354.61 billion that was billed to customers.”

“This translates to a collection efficiency of 75.54%. The DisCos overall collection efficiency increased by 6.79 percent point from 68.75% recorded in 2023/Q1.

“While the total collections increased by 8.41% (compared to N247.09 billion in 2023/Q1), the total billings declined by -1.33% (compared to N359.38 billion in 2023/Q1).”

The report also shows that all other discos apart from Yola discos recorded an improvement in collection efficiency in Q2.

The top performing DisCos were Kaduna, Ikeja and Enugu with (44.27 percent to 59.38 percent ), (87.19 percent to 95 percent ) and (68.55 percent to 76.29 percent) increases in collection efficiency respectively.

Yola DisCo had a decrease from 45.71 percent to 45.27 percent in collection efficiency within the same period.

BIG STORY

BREAKING: Court Grants Yahaya Bello N500m Bail Amid “N110.4bn Fraud” Case

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The Federal Capital Territory High Court in Abuja on Thursday granted the immediate past Kogi State Governor, Yahaya Bello, bail in the sum of N500 million and three sureties.

The trial judge, Justice MaryAnne Anenih, made the pronouncement after hearing the fresh bail application brought before the court following the court’s refusal to grant Bello bail at the previous sitting.

Bello, alongside two others, Umar Oricha and Abdulsalami Hudu, are facing trial on 16 counts brought against them by the Economic and Financial Crimes Commission, concerning criminal breach of trust and money laundering amounting to N110.4 billion.

However, the court granted bail to the second and third defendants in the sum of N300 million with two sureties, along with other conditions.

Outlining the conditions for Bello’s bail, the judge stated that the sureties must be responsible citizens who are landowners in any of the listed areas in Abuja – Maitama, Guzape, Apo, Wuse 2, or Asokoro.

She ordered that the sureties must deposit the documents of the property with the court’s registrar, along with two recent passport photographs.

Justice Anenih also ordered that Bello must deposit two copies of his recent passport photograph, alongside a photocopy of a means of identification, which could either be an International Passport or National Identity card, after presenting the original to the court’s registrar.

She ruled, “The first defendant must not travel without the permission of this court, and he shall remain in the Kuje Correctional Facility until the bail conditions are met.”

Recall that on December 10, the court had rejected Bello’s bail request, citing procedural irregularities in the filing of the application.

Justice Anenih, while delivering the ruling, explained that the application was premature and filed before Bello was present in court or custody.

The court noted that the bail application, dated November 22, 2024, was submitted before Bello’s arraignment, which took place on November 27, 2024, days after he was taken into custody on November 26, 2024.

She said, “Having not been filed when the first defendant was either in custody or before the court, this instant application is incompetent.”

“Consequently, the application, having been filed prematurely, is hereby refused.”

 

More to come…

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BIG STORY

‘N110bn Fraud’: Court To Hear Yahaya Bello’s Fresh Bail Application Today

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A Federal Capital Territory (FCT) High Court will today hear the bail application filed by Yahaya Bello, former governor of Kogi.

Bello and his co-defendants, Umar Shoaib Oricha and Abdulsalami Hudu, were arraigned on November 27 before the FCT court on a 16-count charge related to alleged money laundering amounting to N110 billion.

On December 10, Maryann Anenih, the trial judge, adjourned the case to January 29 and 30, and February 25 and 27, after refusing to grant bail to the former governor.

The trial judge declined Bello’s bail request on the grounds that the application was filed prematurely.

Anenih stated that the bail application was submitted before the ex-governor was taken into custody.

The judge emphasized that the provisions of the Administration of Criminal Justice Act (ACJA) 2025 stipulate that bail applications could be tendered once a defendant has been arrested, detained, arraigned, or brought before the court.

Although Bello was arrested by operatives of the Economic and Financial Crimes Commission (EFCC) on November 26 and arraigned the following day, his bail application was filed on November 22, four days before his arrest.

Bello’s legal team, led by Joseph Daudu, has filed a new bail application, and the court has agreed to hear the application on December 19.

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BIG STORY

Buhari Didn’t Remove Petrol Subsidy Because He’s Friend Of The Poor — Femi Adesina

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Femi Adesina, spokesperson to former President Muhammadu Buhari, said his principal did not remove the petrol subsidy because he cared about its implications on “ordinary” Nigerians.

In a tribute to commemorate Buhari’s 82nd birthday on Tuesday, Adesina said the decisions of the former president were based on his love for “poor and underprivileged” Nigerians.

Adesina mentioned that the Buhari-led administration was aware that the country was spending huge resources on the petrol subsidy.

The former presidential spokesperson described Buhari as “ore mekunu,” a Yoruba phrase that means friend of the poor.

Adesina recalled that during the 2020 COVID-19 lockdown, Buhari instructed Zainab Ahmed, the former Minister of Finance, to ensure the timely payment of workers’ salaries and pensions.

He added that Buhari understood the challenges workers faced during the pandemic and was determined to avoid the additional burden of unpaid salaries.

“The Big Elephant in the room. Removal of fuel subsidy. Did you think the Government didn’t know that the money guzzling monster had to be slain? It knew,” Adesina wrote.

“But who ensured that subsidies remained as long as they did? Buhari. And why? The people, the ordinary people. His argument was always simple:

“When oil sold for at least 100 dollars per barrel in the international market, rising even to as high as 140 dollars per barrel, what did the ordinary people gain? Nothing! So why should they be the ones to bear the brunt when oil prices fall?”

“By the time the administration ended, all, including the three main presidential candidates, were resolved that oil subsidies had to be removed.

“It was not unlikely that President Buhari shared the same conviction. But something that would throw society into a tailspin? He didn’t want to do it—for the sake of the ordinary people.

“Ordinary people gravitate towards Buhari, like bees to the honeycomb. That was why he always had a basket of millions of waiting votes, even before the first ballot was cast.

“He clobbered the ruling People’s Democratic Party in 2015, and won with even larger votes in 2019, despite all attempts to denigrate and demarket him. When you love the ordinary people, they love you in return, and stand with you through thick and thin.

“Now almost two years into retirement, get to Buhari’s house today. And you see the people milling around, just wanting to get a glimpse of the man.

“As he turns 82 on December 17, 2024, I salute the Ore Mekunu, a friend of the poor, who still draws the people like a magnet, even in retirement.”

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