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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

Bill To Make Appeal Court Final Arbiter For Governorship Election Petitions Passes Second Reading

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A bill proposing that the Court of Appeal serve as the final authority for governorship election petitions has passed second reading in the House of Representatives.

The bill, sponsored by Nnamdi Ezechi, who represents Ndokwa East/Ndokwa West/Ukwuani federal constituency of Delta State, seeks to amend Section 246 of the 1999 Constitution.

Currently, Section 246 stipulates that the Court of Appeal’s rulings on National Assembly and State Houses of Assembly election petitions are final.

The proposed amendment aims to extend this finality to governorship election disputes, preventing such cases from reaching the Supreme Court.

Objective of the Bill

When the bill passed first reading in 2024, Ezechi explained that the legislation aims to reduce delays and cut costs in post-election litigations.

If enacted, the law will eliminate the Supreme Court’s role in resolving governorship election petitions—a significant departure from the current judicial process.

Recent Supreme Court Reversals

There have been instances where the Court of Appeal nullified governorship elections, only for the Supreme Court to overturn those rulings.

Plateau State (2023): The tribunal and Court of Appeal nullified the election of Caleb Mutfwang of the PDP. However, in January 2024, the Supreme Court overturned this decision and affirmed his election.

Kano State (2023): The tribunal and Court of Appeal removed Abba Yusuf as Governor. The Supreme Court later reinstated him.

The proposed amendment would prevent such reversals by making the Court of Appeal’s decision final in governorship election disputes.

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BIG STORY

Samsung Electronics Co-CEO Han Jong-Hee Dies From ‘Cardiac Arrest’

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Han Jong-Hee, co-chief executive officer (CEO) of Samsung Electronics, has died at the age of 63 due to cardiac arrest.

According to CNN, the company confirmed his passing on Tuesday.

The report states that “Jong-Hee” had been leading Samsung’s consumer electronics and mobile devices businesses since 2022 and was appointed as vice chairman and CEO that same year.

A company spokesperson stated that “Jun Young-Hyun”, his co-CEO, who was appointed last week, will now assume the role of Samsung’s sole CEO.

Samsung Pays Tribute

In an internal message obtained by CNN, Samsung honored “Jong-Hee”, recognizing his 37 years of service and his leadership in establishing Samsung’s TV business as a global leader.

The company also credited him with contributing to growth in its electronics and appliances businesses despite a challenging business landscape.

“Our deepest condolences are with his family and loved ones during this difficult time,” the message stated.

A Career in Innovation

“Jong-Hee” joined Samsung in 1988 after earning a bachelor’s degree in electrical engineering from Inha University.

Before leading Samsung’s electronics and devices division, he was responsible for its display operations.

A company biography published last week described him as a key figure in the development of Samsung’s LED TVs, emphasizing his role in maintaining the company’s technology leadership.

Challenges for Samsung

The report highlighted that Samsung has faced significant challenges in recent years, particularly in its logic semiconductor business, which has struggled to compete with Taiwan Semiconductor Manufacturing Company (TSMC) in advanced chip production and client acquisition.

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BIG STORY

Judge Recuses Self From “Natasha Akpoti’s” Case Over Bias Allegation

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Obiora Egwuatu, a judge at the Federal High Court in Abuja, has withdrawn from the case filed by “Natasha Akpoti-Uduaghan”, senator representing Kogi Central

Egwuatu, on Tuesday, stated that his decision was based on an allegation of bias against him by “Senate President Godswill Akpabio”.

The suit was initiated by “Akpoti-Uduaghan” to prevent the Senate Committee on Ethics and Public Petitions from carrying out disciplinary proceedings against her.

On March 4, the judge had issued an order restraining the Senate from initiating disciplinary actions against “Akpoti-Uduaghan”, following an ex parte application submitted by her legal representatives.

Case to Be Reassigned

After hearing from the legal teams of the involved parties, “Egwuatu” announced his withdrawal from the case.

He directed that the case file be forwarded to “John Tsoho, the Chief Judge of the Federal High Court”, for reassignment.

The defendants in the case include:

  • The Clerk of the National Assembly
  • The Senate
  • The Senate President
  • The Chairman of the Senate Committee on Ethics

Previously, the judge ruled that the defendants had 72 hours to show cause why an interlocutory injunction should not be granted against them.

However, 48 hours later, the Senate suspended “Akpoti-Uduaghan” for six months after adopting the committee’s report.

Additionally, the Senate ordered that:

  • Her office be locked
  • She must return all Senate properties in her possession to “The Clerk of the National Assembly” for the duration of her suspension.

On March 19, “Egwuatu” overturned his March 4 order, which had earlier prevented the Senate from suspending “Akpoti-Uduaghan”.

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