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Labour, Private Sector Protest As Discos Hike Tariff Again

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The Nigeria Labour Congress, Trade Union Congress, and Organised Private Sector collectively criticized the recent increase in electricity tariffs for customers in the Band A Category on Wednesday.

The Nigerian Electricity Regulatory Commission raised the tariff for Band A customers due to factors such as naira depreciation, inflation, and others.

Several distribution companies, including Ibadan Electricity Distribution Company, Eko Electricity Distribution Company, and Kaduna Electricity Distribution Company, announced a tariff increase from N206.80 to N209.50 per kilowatt-hour for Band A customers on Wednesday.

Despite appearing to be a minor increase, the move was met with opposition from organized labor, private sector operators, and consumers.

They questioned the logic behind the power sector regulator’s decision to approve a tariff hike despite calls to reverse the previous increase.

In a statement, the acting General Manager of the Ibadan Electricity Distribution Company, Francis Agoha, said the review was duly approved by NERC as captured in the multi-year tariff supplementary order.

Agoha said the adjustment was necessitated by several key economic indices, including fluctuations in the exchange rate, the current inflation rate, available generation capacity, and the cost of gas.

“These factors have significantly impacted operational costs, and the new tariff will mitigate these financial pressures while continuing to deliver high-quality electricity services,” Agoha disclosed.

He said the adjustment affects only our Band A customers, adding that “the tariffs for Bands B, C, D, and E remain unchanged.”

The IBEDC boss acknowledged that the rise in tariffs could be a concern for customers, however, he said the increase was necessary.

“We understand that any change in tariffs can be a concern for our customers, and we assure you that this adjustment is necessary to maintain and improve the quality of our services. Our goal is to ensure that you receive the best possible value for your money,” he stated.

It was gathered that the tariff hike is coming amid complaints from customers, including manufacturers as well as public and private institutions that their monthly electricity bills are becoming grossly unaffordable.

Also, Kaduna Disco, in a statement titled, ‘Upward Review of Tariff for Band A Feeders’, disclosed that the new tariff became effective on July 1.

“Dear esteemed customers, the management of Kaduna Electric informs the public of an upward review in the tariff of Band A feeders from N206.80/kWh to N209.5/kWh.

“The review is effective from July 1, 2024, and affects both prepaid and postpaid customers.

“Kaduna Electric assures customers on its Band A feeders of the continued availability of 20-24hrs supply daily as stipulated in the Service Based Tariff regime,” the statement read.

It clarified, “The public should please note that the tariff for Bands B, C, D, and E remains unchanged.”

It was gathered that the hike in tariff had to do with the rise in monthly electricity subsidies from N102.30bn in May to N158.53bn in June.

Earlier report had it that the N56bn increase in electricity subsidies was a result of the rise of the dollar against the naira and the accelerating inflation in the country.

In April, the NERC raised Band A tariffs to N225 per kilowatt-hour from N68. At that time, one dollar was trading at N1,463, according to the commission.

In documents released by the NERC in June, the total subsidies for April stood at N140bn and inflation was 31.7 percent.

In May, the commission reduced the Band A tariff to N206.80/KWh when the dollar was N1,227.8 and the inflation rate had soared to 33.2 percent.

It was observed that the tariff shortfall, otherwise known as subsidy, was N102.3bn in May.

However, there was a rise in the subsidy claim from the previous N102.3bn to N158.5bn in June.

The NERC data showed that a dollar traded for N1,470 while the inflation rate rose to 34 per cent in June, impacting operational costs, including the cost of power generation, transmission and distribution.

For example, in Abuja Electricity Distribution Company, the commission said the energy delivered was 611 megawatt-hours per hour in April. The same was delivered in May and June.

While the generation cost was N103.9 per kilowatt-hour in April, it dropped to N87.33/KWh in May and rose to N104.45/KWh in July.

The AEDC had a transmission and admin cost of N9.1/kWh in April, N8.9/kWh in May and N9.8/kWh in June.

It was gathered from the NERC data that the end-user cost-reflective tariff in AEDC was N180.2/kWh in April; N156.9/kWh in May and N181.7/kWh in June.

Similarly, the end-user allowed tariff was N123.51/kWh, N116.23/kWh and N116.23/kWh in April, May and June, respectively, indicating that despite the rise in the cost of power production, the NERC pegged the allowed tariffs at the same rate in May and June.

With that, the Federal Government would pay an additional N56bn as electricity subsidy in June, compared to what it would pay in May.

As a result, the Ministry of Power resorted to an upward review of the current Band A tariff.

When the commission reduced the Band A tariff to N206/KWh in May, its spokesperson, Usman Arabi, told one of our correspondents that the reduction was due to the naira appreciation in the foreign exchange market.

It was gathered that the government was reluctant to return to the initial N225/kWh, considering the mass protest that greeted the removal of subsidy for premium electricity consumers.

  • Industries React

The National Vice President of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George, said the move was going to cause an additional shutdown of industries.

“We do not need any further increase now. Any increase in inputs would translate to an increase in cost. We are already experiencing an increase in cost, which means we are facing an increase in the cost of manufacturing. This is unsustainable.

“The constant increase in cost will lead to a decrease in demand for locally made goods, making them less competitive with imported goods from China. This will result in a decrease in profit, potentially leading to a shortage of industries. If industries are unable to sell their products, they may resort to reducing salaries or laying off workers, which could lead to an increase in crime.

“With inflation at over 30 per cent and interest on bank loans at a high per cent, we should be exploring ways to subsidise locally made goods to make them more competitive. Instead, we are increasing costs, making it harder for industries to survive. This is frustrating, especially when we see other countries like the Republic offering power at a lower cost.”

Kuti-George said the power sector should be unbundled to allow competition, similar to the telecoms sector, to drive down cost and improve service quality.

He added, “The issue boils down to monopoly. If we unbundle the power sector and allow anyone to generate and sell power, we won’t be having this conversation. We’ve seen the impact of competition in the telecoms sector, where SIM cards have gone from N56,000 to being free. We need to apply the same principle to the power sector to make it more competitive.”

The National President, Association of Small Business Owners of Nigeria, Dr Femi Egbesola, said the increase in electricity tariff would negatively affect the private sector.

He said, “Many organisations are already struggling to stay afloat, and this hike will push them over the edge. Universities are warning of impending bankruptcy, and businesses will be forced to close shop.

“This will lead to higher inflation as companies pass on the increased costs to consumers, resulting in higher prices for goods and commodities. Businesses that can’t absorb the costs will shut down, leading to job losses and a decline in economic activity. This will have a ripple effect on the entire economy, reducing government tax revenues and exacerbating social issues.

“We urge the government to reconsider this decision, as it will only serve to stifle the economy and worsen inflation. We need policies that support economic growth, not those that strangle it. The private sector is already struggling, and this increase will be the final nail in the coffin for many businesses.”

The Director-General, Lagos Chamber Of Commerce and Industry, Dr Chinyere Almona, had earlier called for a reduction in inflation and rate hikes.

She said, “As inflation continues to rise despite the various interventions by monetary and fiscal authorities, we must take more decisive and multifaceted action to stabilise prices and support our citizens’ purchasing power.

“With several hikes in the past months, we are yet to record a significant impact on stabilising prices. The twin burden of high inflation and interest rates is overheating the economy and causing increased volatility and uncertainty.

“The private sector is once again thrown into more profound loan repayment crises as interest rates adjust to the new monetary policy rates. We are likely to see a reduction in demand as purchasing power weakens and this may lead to lower industrial production and loss of jobs eventually.”

A member of the Nigerian Economic Summit Group, Faith Iyoha, said the best route was for the private sector to depend on alternative power supply.

The Executive Director, Electricity Consumer Protection Centre, Princewill Okorie, condemned the hike in tariff.

“We need to ask the legislators what they are doing. There was a public hearing on this tariff increase. Is it that the legislators don’t have any authority anymore? Why did the NERC go ahead to increase tariffs despite all we have done? That means nobody calls them to order. Are they above the law? The legislators were elected by the consumers who are the electorates. It is expected they protect their interest. I was at the public hearing and I made presentations there.

“If the consumers take to the street, police will take out their guns, but now that the rights of the consumers are being violated and they are treated like slaves, what is the police saying? What are the Leaderships of the National Assembly doing? NERC is violating the laws by the legislators that put them in place.

“Who else will deliver Nigerians? It is like the legislature does not have power anymore. Why did they spend more to conduct the public hearing on the tariff increase when they knew there would be no result? The Manufacturers Association of Nigeria took Discos to court. What is the verdict? Who do the people respect?” Okorie queried.

An expert in the electricity industry, Bode Fadipe, said the government should not have considered a tariff hike this time.

Fadipe urged the government to be sensitive to the economic realities of the moment, saying that people’s income had reduced drastically.

He noted that contemplating a tariff hike currently may be too simplistic.

“I don’t think a tariff adjustment is necessary to follow. The government has to be sensitive to the economic reality of the moment

“Disposable income has reduced greatly. To contemplate tariff adjustment may be too simplistic,” he said.

The Federal Government recently stated that about 85 per cent of Nigerians still enjoyed the electricity subsidy in the country, despite the over N1tn that would be saved from the fresh tariff hike.

It stated this in response to the continued reactions from Nigerians over the recent increase in electricity tariff.

The regulator said the new tariff signified a removal of electricity subsidy for Band A consumers, who constituted about 15 per cent of the total number of power users across the country.

  • Electricity Declare Resistance

The Deputy General Secretary of the Nigerian Union of Banks, Insurance and Finance Institution Employees, Shola Aboderin, said, “I know that the hike in tariff is going to have an effect on production, invariably it will affect the prices of commodities. Today, Nigerians are crying about the high cost of commodities in the market.

“I believe that this is not the period for the government to encourage Discos to increase their tariffs. How many people can afford to eat three square meals in a day? The purchasing power of Nigerians is presently very low because of the high price of commodities in the market.”

Also commenting on the issue, the Secretary-General, National Union of Electricity Employees, Ogochukwu Igwebike, said workers in the power sector would resist the latest tariff hike.

“That decision to increase tariff is not okay. The NLC and TUC had kicked against the initial hike and we also joined in opposing it. But to our surprise they raised it again despite the concerns on ground.

“We are going to respond to that and we are saying no to it. We don’t accept it and it shall be resisted by workers, because the current economic realities do not support any such increase,” he stated.

On his part, an official of the Nigeria Labour Congress declared that the Nigerian Electricity Regulatory Commission did not seek the inputs of NLC before approving the latest tariff hike.

The NLC official, who pleaded not to be named due to lack of authorisation to speak on the matter at the moment, said the labour union would resist the hike.

“Any additional increase on any utility bill is an extra burden on Nigerian workers and Nigerians in general, and it is not acceptable, especially at this time that Nigerians are going through the most harrowing experience ever.

“Let the people breathe. This is another affliction on the Nigerian workers and it is unacceptable. It is also a disdain by the Discos and NERC to the National Assembly.

“The National Assembly had set up a committee to look into the last increase in the electricity tariff. So if the Discos and NERC have respect for the National Assembly, they won’t choose this time to increase the tariff. So this is gross disrespect.

“Therefore the National Assembly should actually react to this. You can’t adjust tariffs without NERC approval and NERC cannot give approval without consulting the stakeholders, and the NLC is one of the major stakeholders. But we were not consulted, and if we were not consulted and the tariff was increased, then it calls for concern,” the official stated.

  • Consultations Necessary

The Nigeria Labour Congress faulted the move by the Discos without due consultations with members of the civil society and the Organised Labour.

The Deputy Head of the NLC political commission, Prof. Theophilus Ndubuaku, made this known in an interview with one of our correspondents in Abuja.

 

“The truth about it is that on the issue of electricity tariff hike,  consultations must be made with the civil society and organised labour. Why are they not concerned about legality? It shows you that they don’t care, they just do what they want to do, they want to intimidate people. They do not seem to care at all. Instead of even telling Nigerians, appease us, they are telling us to switch off our fridge.

“We are also watching to see what they come up with as regards the minimum wage. We also want to know what the reaction of the populace will be.”

On his part, the Chairman of Trade Union Congress in Ekiti State, Sola Adigun, said the increase in power tariff was unacceptable to workers in the state.

“Speaking as the representative of workers under the auspices of TUC and as a citizen of this country resident in Ekiti State, that tariff hike is unacceptable. With all sincerity, it is inhuman.

“Every citizen of this country is crying and even the government had said on several occasion stated that it knows the hardship of Nigerians, but there are some steps and policies the present administration is taking that are totally not in alignment with their pronouncements.

“With our challenge here in Ekiti, I don’t know whether we even have Band A or B or C because as I am speaking now, the last time we experienced public electricity in my area in Ado Ekiti was in July 2023. In the next few days, it will be a year. You can see that majority of Nigerians and Ekiti people have been on alternative power supply source either generator or solar power.

“So, for whosoever to increase the electricity tariff, it is not acceptable because the power is not being supplied. We are expecting to hear from the national secretariats of the TUC and NLC. However, in Ekiti State here, it is unacceptable.”

Speaking with news men, Osun TUC Chairman, Abimbola Fasasi, who said his reaction was his personal opinion on the issue, described increase in electricity tariff for Band A customers as a wicked decision.

He further said, “The increment is a wicked affront to the entire Nigerians not just the workforce or the leadership of the Labour Movement.

“You would recall that we are still challenging the one on ground for the Band A, B and others. The classification they did before increasing the tariff.

“In fact, the reversal of the earlier increase was part of the demands in the recently suspended strike. We have not really resolved that, we are still in discussions, and the tariff is being jacked up again. It is unacceptable; my personal opinion.”

However, the NLC in Abia State said it would consult with its national body.

Chairman of NLC in Abia, Ogbonnaya Okoro, said, “It appears that it was based on national instruction. If so, we will consult with our national body, the NLC and TUC.”

But in Sokoto State, the union condemned the latest increase in the electricity tariff.

The NLC Secretary in Sokoto, Hamisu Hussain, while reacting to the increment, said even though no customer in Sokoto was under Band A, such a hike should be resisted.

He described the increase as a ploy by Discos to increase the tariffs across the country irrespective of bands.

Meanwhile, the Chairman of the union in Kebbi State, Murtala Usman, while reacting to the increase, said only the state government house and some top government facilities enjoy about 20 hours power supply.

He, however, warned Kano Disco not to joke with the masses by making any attempt to increase the tariff across the board.

Also, the Port Harcourt chapter of the Petroleum and Natural Gas Senior Staff Association of Nigeria kicked against the newly effected hike in tariff price by electricity distribution companies across the country

The PENGASSAN Port Harcourt Zonal Chairman, George Nwoko, described the move as unfair to Nigerians.

He stated, “Nigerians are going through a lot of suffering so any additional hike in any commodity will also affect their well being.

“We are still on the table for the minimum wage, we have not concluded on that and if they are approving any additional hike in tariff, it’s an act of wickedness to the masses and we will resist it”

Also, the Plateau State chapter of the NLC condemned the new hike in electricity tariff.

The state Chairman of the NLC, Eugene Mangji, “The new tariff hike by the Discos, if true ,is sad and insensitive .How can they effect a new increment when the previous one had been rejected by the suffering Nigerians.”

 

Credit: The Punch

BIG STORY

Dismissed Edo Policewoman Threatens To Kill Self, Children

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Inspector Edith Uduma, a former police officer in Edo State, is facing a tough situation after exposing a colleague, Sergeant Abraham, for allegedly raping a 17-year-old girl at the police station, she was dismissed from the police force.

Uduma claims the dismissal was unfair and that the public hasn’t heard her side of the story.

The incident was captured in a viral video she took in October, showing Sergeant Abraham in a compromising position with the minor.

The situation has taken a drastic turn, with Uduma threatening to harm herself and her children.

It was learnt from the police that both officers were later dismissed following an orderly room trial.

The Edo State Police Command, in a statement released in November by its Public Relations Officer, Moses Yamu, alleged that Uduma conspired with her husband, Inspector Ibrahim Mohammed, to extort N1m from Abraham to cover up the incident. When Abraham reportedly offered N45,000 instead, the video was leaked online, the police claimed.

The command said, “That, contrary to reports from certain quarters, the said female police officer, AP/no 228719 Insp. Edith Uduma, was the Charge Room Officer on October 7, 2024, the night F/No. 504694 Sgt Abraham allegedly raped a female suspect in the station.

“The female officer, instead of reporting the incident to the Divisional Police Officer or the Incident Duty Officer as the case may be, for disciplinary actions to be initiated against the erring officer, took advantage of the situation to enrich herself by calling her husband, AP No. 228652 Insp. Ibrahim Mohammed, whom she conspired with to unlawfully demand the sum of N1m from the sergeant to assist him in concealing the matter.

“Following these events, an orderly room trial was initiated against all the officers, which led to the dismissal of Sgt. Abraham and Insp Edith Uduma.”

Uduma’s husband was also demoted to the rank of Sergeant.

However, Uduma denied the allegations in an interview with PUNCH Metro on Saturday, insisting she never extorted money and that she was not given a fair hearing. She alleged that her dismissal was orchestrated because she lacked influential connections.

Uduma who threatened to kill herself if she didn’t get justice said, “What the Edo Command is saying is not what happened. They know I have no rank or support to fight back,” Uduma said.

She further revealed that the Force Headquarters in Abuja was still investigating the matter only for the Edo command to hurriedly dismiss her.

“I want justice. My dismissal is unjust,” she said tearfully.

She said her husband who was also sanctioned had no connection to the matter.

“He (my husband) used to bring something for me to eat. He brought food that time to the station.

“If Nigerians refuse to listen to me – because my husband has been in detention, and they have been looking for me to arrest me, to charge me to court – if Nigeria refuses to listen to me, I will just poison all my children and myself. I will die. Because I’m just stranded like this,” she said, noting she had been in hiding and had not seen her children in a long time due to the incident.

She alleged that the DPO at the station prompted her to ask Sergeant Ibrahim for the N1m for negotiation when the sergeant reportedly disappeared after the incident, noting that this was to lure the suspect to show up.

According to her, she is surprised how the DPO and other officers allegedly turned the matter against her.

“If the police force can do this to a police officer, how much more to the innocent and civilians?”

The spokesperson for the Edo command, Moses Yamu, has not responded to calls and a text message put across to him on Sunday.

It was gathered that the then Divisional Police Officer of the station at the time the incident occurred, SP Lilian Osemwegie, has now retired.

A call was put across to a number said to be hers but a woman who responded after a question from our respondent, said, “Wrong number, wrong number.”

In a statement made available on Friday, a human rights group, Take It Back Movement, petitioned the Inspector General of Police, Kayode Egbetokun, over what it described as the unjust dismissal of the female police officer and reduction in rank of her husband for reporting the alleged rape case.

The petition titled, “Petition For Review and Reinstatement, Unjust Dismissal From Nigeria Police Force” was released by the TIB Abuja branch and signed by the Federal Capital Teriitory Coordinator of the group, Robert Ande.

“We humbly submit this petition to seek your intervention in the gross injustice perpetrated against Mrs Edith Uduma and her husband (Mohamed Ibrahim) with Force No.: AP/NO 228652 by the Edo State Police Command.

“Her dismissal from the Nigeria Police Force and the deduction of the rank of her husband from (Inspector to CPL) was unjust, and we request a thorough review of her case,” the petition read in part.

“Instead of commending her actions, she was dismissed, and her husband, Inspector Ibrahim Muhammad, was arrested and detained,” the group added, adding that the command’s action was capable of “hindering investigations and protecting the perpetrator of the rape.”

 

Credit: The Punch

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BIG STORY

Discos May Move Three Million Subscribers To Estimated Billing Over Failure To Upgrade Prepaid Meters

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Unless there is a last-minute intervention, approximately three million electricity customers could face estimated billing or even power outages due to their failure to upgrade their prepaid meters.

A consumer group has estimated that half of the 5,993,340 metered customers will be affected by the government’s policy.

However, another group argued that anyone who has not upgraded their meter by now is likely one of those Nigerians who tend to display a lackadaisical attitude towards government policies, noting that the upgrade process began last year.

Over the past 10 days, the Nigerian Electricity Regulatory Commission has consistently reminded Nigerians about the importance of upgrading their meters.

“Have you updated your meter yet? From November 24, 2024, you may not be able to recharge your meter without updating. However, updating is easy and free.

“DisCos have already commenced issuance of two free Key Change Tokens which will update your meter.

“The update will not affect the units in your meter, nor will it make your meter run faster than usual. Contact your DisCo for more information,” the NERC said in a post on its handles.

As the NERC continued to sensitise consumers to the meter update, most of the distribution companies appeared unbothered until the exercise elapsed on Sunday.

As of yesterday, there were various complaints from customers who have yet to update their meters.

While some customers said they encountered technical glitches in their efforts to update their meters, others complained of a lack of electricity and many said they got feedback that their meters could not be updated and they had to be replaced.

Earlier, the distribution companies in Lagos told their consumers that all Unistar meters would be phased out by November 14 2024 due to Token Identifier rollover.

Customers using Unistar meters were asked to pay for the replacement of their meters, sparking outrage from affected customers.

The Unistar meter producers denied claims that their meters are outdated. They stated that their meters utilising the card meter technology are fully upgradeable and compatible with the STS meter technology.

The Federal Competition and Consumer Protection Commission also intervened, urging the DisCos to halt their replacement of Unistar prepaid meters.

The FCCPC’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, at a recent meeting held at the FCCPC headquarters in Abuja and was attended by representatives from the NERC, the Nigerian Electricity Management Services Agency NEMSA, various electricity distribution companies and Unistar Hitech Systems Limited, expressed concern over practices that require consumers to pay upfront for meters without reimbursement, calling it a direct violation of the NERC Meter Asset Provider and National Mass Metering Regulations 2021.

He also noted that DisCos frequently places consumers with faulty meters on estimated billing, saying this is prohibited under NERC’s regulations.

Bello cited an example of a complaint received by FCCPC from an Ikeja Electric customer, who had expressed frustration at being asked to replace a functioning meter at a significant personal cost.

To prevent potential exploitation, FCCPC directed that all meter replacement processes be conducted transparently, with costs borne by the DisCos and not passed on to consumers.

Bello stressed that FCCPC would enforce strict compliance with these regulatory requirements to protect consumers from arbitrary charges and estimated billing.

The NERC’s Order mandates that DisCos must prioritise metering for unmetered customers under the National Mass Metering Programme and follow strict guidelines for replacing faulty or obsolete meters.

“Furthermore, DisCos are prohibited from placing customers on estimated billing due to delays in meter replacement, as new meters must be installed immediately upon removing any faulty or obsolete unit,” the FCCPC boss said.

However, it appears the DisCos did not heed the FCCPC’s directive FCCPC as complaints abound from customers about being asked to pay for the replacement of meters that cannot be upgraded.

Reacting to this, the NERC issued a statement warning DisCos to desist from asking customers to pay for meter replacement.

The commission said no customer should be made to pay for the replacement of any faulty or obsolete meter.

According to a statement last week, the regulator said it was aware that some DisCos had instructed their customers to pay for the replacement of their faulty or obsolete meters.

“The Nigerian Electricity Regulatory Commission is aware that some Distribution Companies have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas. This instruction contravenes the Commission’s Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete end-use Customer Meters in the Nigerian Electricity Supply Industry,” the NERC said.

According to the regulator, the order states that no metered customer should be forcefully migrated to estimated billing.

It was also emphasised that any customer’s meter adjudged to be obsolete or faulty must be replaced free of charge by the DisCo, provided the damage was not caused by the customer.

“The Order clearly states that no customer with a meter should be forcefully migrated to estimated billing. If any customer’s meter is adjudged by any DisCo to be obsolete or faulty, it is the responsibility of the DisCo to replace the meter free of charge, provided that the fault was not caused by the customer,” it was stated.

The Vice Chairman of NERC, Musiliu Oseni, stated that meters that are not upgradable will need to be phased out.

“Operationally, if they say some meters are not upgradable, they can decide to phase them out. But as they remove the meters, based on the rule, they must replace them. It is the responsibility of the DisCos to replace them,” he said.

He emphasised that during the phase-out process, no customer should be placed on estimated billing or be denied access to electricity.

He pointed out that if customers were asked to purchase meters under the MAP framework, DisCos must provide a clear mechanism for refunds, as they are obligated to refund the customers.

However, customers who spoke to our correspondent lamented that the DisCos have been doing the contrary.

A customer of the Ikeja Electric complained of how five meters were phased out in a property of eight flats and the flats were placed on estimated billing, with each asked to pay N268,000 per month.

“In a property I manage at Ikeja, a block of eight flats, IKEDC began by phasing out meters. Five meters have been phased out, and the trend continues. They asked individual flats to apply for direct connection to the pole with monthly estimated bills. Then, each flat should apply and pay for new meters they never brought. The estimated bill now charged for one month per flat is N268,000. How come a three-bedroom flat will consume N268,000 per month? Some don’t even have an air conditioner.

“Three tenants each just received the same bill this week, regardless of their consumption. They went to the IKEDC office to complain, and the officials told them to go and pay their bills,” the property manager complained.

Speaking in an interview (with The Punch), the Executive Director of the Electricity Consumer Protection Advocacy Centre, Princewill Okorie, expressed displeasure over the number of consumers that would be plunged into estimated billing over the meter upgrade.

According to Okorie, more than half of the current metered customers would lose their meters and join the over 7 million unmetered ones.

“More than half of metered customers will be subjected to estimated billing by this policy. The same meter that people are crying for so that they can know what they are consuming, you want to frustrate them with this strategy. You want to bring this strategy to make more consumers go into estimated billing. Are the DisCos obeying the estimated billing methodology approved by NERC?

“So, this is an indirect way of putting Nigerians underestimation. And I know that, without a meter, whether you use light or not, they will give you a bill. There was a grid collapse for about five days; the moment light came, those unmetered consumers were made to pay as if there was an electricity supply for 24 hours. It is wickedness against the poor,” Okorie lamented.

The consumer rights activist wondered what the FCCPC is doing to ensure electricity consumers are protected from all forms of exploitation.

“As far as I am concerned, the government should take decisive steps to protect Nigerians against the exploitative tendency of the distribution companies and NERC. The regulator should be investigated, and if possible, sanctioned.

What is the FCCPC doing? Are they aware that consumers are about to be subjected to this? How is the FCCPC protecting consumers? Was it not the consumer protection commission that spoke the other day, and the DisCos said they have suspended it, now that they want to do this, what is the commission saying? How many metered and unmetered consumers do the FCCPC know?” he queried.

  • Customers Share Experience

A customer of the Ikeja DisCo, Dare Oguntuase, reported to NERC, his unsuccessful efforts to retrieve his meter allegedly taken away by the DisCo in September.

“NERC should do more than advocacy. Our Discos are irresponsible, fraudulent, and highly unpatriotic. Ikeja Electric is the worst. I have been in the darkness for 63 days now and still counting. My meter No. 47001599126, was retrieved for repair/replacement since 20th September,” he said.

Esther Madu, an X user, said her meter was not accepting the token for the upgrade.

“Someone please help me. I have recharged more than N8,000 on my prepaid meter but my meter has been rejecting the token since Monday. Therefore, I haven’t been able to use electricity in my home since Monday,” she cried out.

A customer of the Port Harcourt DisCo, Engr Gabby, reported, “My meter is rejecting the KCT given to me and I have dropped a complaint to the PHED, to date, no solution.”

Patrick, also under the Port Harcourt DisCo, pleaded with the regulator to extend the deadline, saying his area has been out of power supply due to vandalism.

“Our transformer armored cable was vandalised. PHED refused to fix it. We are contributing N6,000 each to replace the cable. Try to extend this deadline,” Patrick told NERC on X.

Olutosin Runsewe queried why old meter users cannot upgrade their meters.

When asked if she had been able to upgrade her meter, Runsewe replied, “No, they said Unistar meters can’t be upgraded.”

Another customer of the IKEDC, Ikhade Agboghayemeh, shared his chat with the company, which told him to request a meter replacement when he sought information on how to update his Unistar meter.

A customer of the Abuja DisCo simply identified as Austine reported that his faulty meter was not repaired almost a year ago.

“Please intervene in my case with the Abuja Electricity Distribution Company. My meter has been faulty for almost a year now. All my efforts to get them to repair it have failed,” Austine begged NERC.

Replying to calls for an upgrade, an electricity customer said, “You guys are funny, still not enough houses metered. You want to out-date existing meters after upgrading without any plans of replacement. The DisCos are making customers pay through their noses for meter replacement. If you don’t pay, they don’t change it or they place you on estimated billing.”

Also, a consumer identified as Mathew CB, voiced his frustration in Enugu.

“How do we upgrade the meter when we don’t have light here in Emene Enugu State for weeks? You can find out from Enugu DisCo why they’re frustrating people living in this part of Enugu State,” Mathew stated.

Alabi Alapa was concerned about whether or not the illiterates understand the process of meter upgrade, asking, “Do you mandate the DisCos to educate all these old women who live alone and are illiterate?”

In his case, another electricity user, Ayo Olaleye, noted that the response he got while trying to update his meter said, “Your meter is not qualified for TID Rollover.

  • Meter replacement may continue till March 2025 – DisCos

The Executive Director, Research and Advocacy, the Association of Nigerian Electricity Distributors, Sunday Oduntan, in a recent interview, assured Nigerians that the DisCos would replace their obsolete or faulty electricity meters at no cost to them.

“Any meter that has lost its integrity, either by way of being obsolete or by way of it not conforming to our system. We will need to remove, retract, and replace those meters. The issue of cost is what I now have to make very clear. For Nigerians, be assured that when we come to your doorstep, we retrieve your meter, we shall replace it at our own cost and at no cost to you,” Oduntan disclosed.

He added that this became necessary for cost recovery.

“One of the reasons why we want to retrieve some meters and replace them is because they are making us lose a lot of money. In a particular Disco, we have 10,927 of those meters. Over time, only about 3,200 of them came out to buy credit. The others, we don’t know where they are. That’s a case of serious bypass. Any meter that makes it easy for my customers to bypass and steal energy, I will remove and replace it.

“What Nigerians don’t want is for me to give them further burdens. So, let it be a matter between me and my regulator. My regulator said, ‘Replace those meters at your cost.’ No problem. When I sit down with my regulator, what I need to ask is, I’ve replaced those meters, so what happens? Because I’m not the one that produces or supplies meters. The suppliers need to be paid, and to pay them, somehow the cost has to be recovered,” he posited.

Oduntan revealed that the meter replacement exercise would be done between now and the first quarter of 2025.

He emphasised that it is not in the interest of the DisCos to put customers on estimation because it leads to arguments between distributors and customers, who he also accused of wasting energy when not metered.

  • Customers Blamed

Meanwhile, the National Coordinator of All Electricity Consumers Forum, Adeola Samuel-Ilori, said anyone who has not updated his meter should have himself to blame.

Samuel-Ilori said the upgrade of meters started last year and all consumers should have upgraded their meters by now.

According to him, an extension was done through his group’s continuous engagement with NERC.

“I believe with the type of engagement and enlightenment on it to consumers since last year, many ought to have done it without any hassles.

“If any customer has not done the upgrading till now, it may be out of the lackadaisical attitude of some Nigerians who like to wait till the last minute or until punitive measures are taken before they do the needful.

“I will not fold hands and watch the DisCos do anything that will tamper with consumers rights, even if it means approaching the court of competent jurisdiction. But this meter upgrade is not about sending many to the estimated billing system,” he stressed.

Contacted, a Senior Public Relations Officer at the Federal Competition and Consumer Protection Commission, Nicholas Utsalo, told our correspondent to send an official email, which has not been responded to since Saturday.

Our correspondent learnt that those whose meters were not updated would either choose to be in darkness or revert to the estimated billing system if they cannot wait till the day their DisCos will consider them for a new meter.

Likewise, individuals may decide to buy their own meter if it is taking too long to get a free device from their utility companies.

 

Credit: The Punch

 

 

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BIG STORY

Reps May Clash Over President Tinubu’s $2.2bn Fresh Loan Tuesday

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A showdown is expected in the House of Representatives this week between lawmakers from the ruling party and their opposition counterparts over President Bola Tinubu’s $2.2 million (N1.77 trillion) loan request.

Deputy Spokesperson of the House, Mr. Philip Agbese, has stated that there will be no difficulty in approving the external borrowing request from President Tinubu.

The loan request was presented in a letter sent to the parliament and read aloud by the Speaker of the House of Representatives, Tajudeen Abbas, during Tuesday’s plenary.

If approved, the President said the loan would fund the N9.7tn deficit in the 2024 budget.

The Senate has already approved the loan request, with the House expected to debate same ahead of its approval later in the week.

Speaking (exclusively with The Punch) on Sunday, the Benue lawmaker who doubles as the Deputy Chairman, the Committee on Media and Publicity, advanced reasons the House will not hesitate to follow the footsteps of the Senate in granting the request of the President to borrow externally to fund the budget deficit.

According to him, the House will approve the loan request as long as it is meant for the execution of capital projects across the country as stipulated in the letter transmitted to the National Assembly by the President.

“The Tinubu-led government has been prudent with our resources. We will approve the loan request without hesitation,” he said, adding that the request will be treated in conformity with standing procedures.

“I can tell you that the relevant Standing Committees have commenced scrutiny of the loan request ahead of the consideration by the House. But I assure Nigerians that as their representatives, we will abide by strict standard procedures in doing our job as far as this request is concerned,” he said.

  • Debt Burden

Although Nigeria’s total public debt currently stands at N136tn, Agbese justified the President’s quest to borrow more, saying, “The kind of critical infrastructure we have seen the current government investing their scarce resources on are encouraging. From the Honourable Minister of Finance to the Accountant General’s Office, we have seen fiscal policies that aim to safeguard taxpayers’ resources.”

He added that just as past approvals by the parliament were done in line with due consultation with other relevant stakeholders and experts, “The situation would not be different this time.”

On what has changed since the inauguration of the incumbent All Progressives Congress-led administration, Agbese who represents Ado/Ogbadibo/Okpokwu Federal Constituency of Benue State, noted that “the executive is enhancing our budget system in terms of priorities.”

While declaring that “it may not be far from the truth that past administrations took foreign loans to spend on disposables,” he insisted that “the 10th parliament is carrying out its oversight functions to see that every penny counts in the overall interest of our people.”

  • ‘Governors Change Stand’

Reacting to an exclusive report by The PUNCH quoting some lawmakers saying that some state governors appeared to have changed their rigid stand on Tinubu’s tax reform bill, now before the parliament for consideration, the lawmaker added that the resilience of legislators may have informed the development.

“Many (governors) are doing so because they have seen the resilience of the parliament to do what is right for Nigerians. This is what you get where there’s patriotism above personal and selfish interest of just a few entities.

“The House of Representatives under the leadership of Rt Hon Tajudeen Abass has done something novel and Nigerians are equally commending his leadership. There’s no doubt that our approach to inviting the key drivers of the tax reforms in Nigeria and doing so at the same time with our in-house experts, has changed the narrative completely in Nigeria,” he added.

In a veiled jibe at former Vice President Atiku Abubakar, who in July described the National Assembly as an enabler of executive recklessness, Agbese said Nigerians “don’t take him seriously, so, the parliament won’t be bothered about his opinion which was probably expressed from abroad or somewhere in Dubai.

“The only time that politician won an election was when another candidate from the south carried him on his back as a running mate. The only thing he sees about Nigeria is when an election will take place.”

The lawmaker assured Nigerians that when granted, the loan would be used for the intended purpose, saying, “The House of Representatives will ensure that such monies if approved are not diverted. What we understand the President is doing is repositioning critical institutions for optimum performance as well as delivering on infrastructure that will stand the test of time.

“It’s possible to extend the lifespan of the 2024 budget to ensure that ongoing critical projects receive the desired attention and are completed.”

Also speaking, an APC lawmaker from Imo State, Chike Okafor, said the loan request by the President was in order.

He said, “Our country in the past years suffered from under-investment in the very critical sectors that stimulate the economy. How much of our resources go to funding/financing infrastructure in such critical things like roads, health, education, and agriculture? Any economy that fails to sustain good investment in the above critical sections of the economy is creating short and long-term deficits in those areas.

“What do you do if/when your current revenue and receipts are inadequate to fund the necessary and required investments necessary to sustain the stimulation of your commerce and economy? You resort to borrowing, especially if/when you reserve the capacity to do so.”

He added, “What I do not support is borrowing to fund ordinary appetite. By this, I mean borrowing just to fund recurrent expenditures. Once a borrowing is geared towards the funding of critical capital items, then we’re moving in the right direction.”

  • Minority Caucus Warns

Meanwhile, the minority caucus of the House of Representatives has warned that the provision for deficit financing in the 2024 budget is not automatic, adding that borrowing should be the last option rather than the first resort.

Speaking on Sunday, the leader of the Minority Caucus in the House, Kingsley Chinda, said, “We no doubt provided for the executive to borrow in the 2024 budget, but it’s not automatic. Borrowing should not be the first resort. It should be the last option, particularly when borrowing with interest.”

Chinda, who represents Obio/Akpor Federal Constituency of Rivers State, added that in activating the loan option, some questions need to be asked.

“What did we get as income, and how was it applied that we required borrowing? What efforts have we made to raise funds without borrowing and what are the results? Is the borrowing very necessary?”

He added, “What are the specific projects you intend to fund with the money? What are your repayment plans? This information must be cogent and verifiable.”

The Peoples Democratic Party lawmaker noted that “it is only when these questions are answered positively that we can consider the loan,” or else, “The loan will be an additional burden on the government, and the people of Nigeria and should be avoided as a fish should avoid a bait.”

On his part, the Chairman of the Public Accounts Committee, Bamidele Salam, gave a condition to support the loan approval.

“I personally think that the best approach is to scrutinise the loan request. I will only support it if the loan terms are favourable and only if the money will be spent on urgent critical infrastructure for which funding cannot be sourced elsewhere,” he said.

  • Debt Profile Worrisome

On his part, a Labour Party federal lawmaker from Anambra State, Afam Oghene, also expressed worry over the nation’s growing debt profile.

He told The PUNCH, “Many Nigerians are worried about the Presidency’s repeated requests for loan approvals, as well as the country’s growing loan profile. The concern is not just about the loans themselves, but also about the transparency and integrity of how the funds are being deployed and the projects they are attached to.”

Oghene, who represents Ogbaru Federal Constituency of Anambra State, stated, “As of June 30, 2024, Nigeria’s total public debt stock stood at N87.38tn ($113.42bn). This is a significant increase from previous years, and it is understandable that many Nigerians are uneasy about the trend.”

He added that the opposition would continue to ask relevant questions in relation to the demands for good governance.

“The opposition parties are right to question the propriety of these loans, especially given the country’s economic difficulties. But you know that in a democracy, the majority always has its way. Regardless, it is crucial that the government exercises prudence and discipline in handling public funds and ensures accountability and integrity in managing the country’s wealth.

“Ultimately, however, it is up to the government to address these concerns and provide transparency about the loans and how they’re being used. As citizens, it is essential to continue demanding accountability and ensuring that the country’s resources are being managed in the best interest of the people,” he stated.

Oghene added, “As it stands today, it is the President Tinubu-led administration that exercises the mandate of the people until 2027, and all we can do, as opposition political leaders, is to offer alternate viewpoints regarding government policies and actions, so that the citizenry would, going forward, be in a position to make informed decisions when the next election cycle comes.

“In the Labour Party, we have always propagated the concept of borrowing for productive purposes, rather than for consumption. For instance, what specific projects are the latest borrowing plans tied to? In the face of the current hardship occasioned by the subsidy removal regime, would the people be subjected to further impoverishment, or will the loans be channelled to the economic rejuvenation of the country?”

 

Credit: The Punch

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