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Labour Threatens Showdown As Federal Government Insists On Electricity Tariff Hike

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Despite requests for its reversal, the Federal Government insisted on Friday on the 240% tariff increase that power consumers in the band “A” category must pay.

It also disclosed that the short-term, subsidised electricity pricing system would be followed by a three-year transition plan to a fully cost-reflective tariff.

The Nigeria Labour Congress, however, was not pleased with the decision and advised the Federal Government to be ready for the fallout from the tariff hike, calling it “wicked” and “unpopular.” The Congress further emphasised that the government should be prepared because it chose to heed the World Bank and International Monetary Fund rather than its own advice.

According to The Punch, the Head of Information, NLC, Benson Upah, said “We did say earlier that this tariff hike is insensitive and unpopular. So if the government elects to continue with the hike or persists in something that is evil, I’m sure it is equally prepared for the consequences of that evil.

“The manufacturers are saying this is going to hurt businesses and make the environment more hostile, and we also said so. There is no place in the world where high power tariffs have supported manufacturing. Not even in the developed world.

“So, it completely beats our imagination for the minister to have the audacity to say that the policy would continue. What this means is that the minister and the President are not in charge. It is saddening that the minister elected to pursue an unpopular policy.”

Upah added, “It shows that the minister and the President are not in charge. The people in charge are the World Bank and the IMF. They are the ones driving this highly injurious policy.

“So, our leaders should be prepared for the consequences of this highly injurious policy. That is what I’ll say about this issue for now.”

Manufacturers and the organised labour had kicked against the hike in tariff payable by about 1.9 million consumers, which was approved and announced by the Federal Government on Wednesday.

Subsidy on electricity was withdrawn completely from the tariff of consumers on the band A category, which constitute about 15 per cent of the total 12.82 million power consumers across the country.

The government announced the hike in electricity tariff at a press briefing in Abuja by NERC, adding that those affected would pay N225 per kilowatt-hour, up from the previous rate of N68/kWh, representing about 240 percent increase.

The government stated that the decision took effect on April 3, 2024.

But the Organised Private Sector, NLC, and the Trade Union Congress kicked against the hike in tariff for power users and demanded that the decision be reversed.

They argued that the hike in tariff would send manufacturers out of business, worsen inflation and stifle small and medium enterprises, adding that there was no place in Nigeria currently enjoying up to 20 hours of power supply daily.

Band A power users are those who get up to 20 hours supply of electricity daily.

At a press briefing in Abuja on Friday, the Minister of Power, Adebayo Adelabu, insisted that the Federal Government would continue with the new tariff regime for Band A consumers despite calls for its reversal.

He said this was because the government could no longer continue paying humongous sums as power subsidy, stressing that subsidy on electricity for 2024 would cost the government about N2.9tn.

The minister said, “We are in the subsidy pricing regime, whereby the government provides a large portion of the cost of producing, transmitting, and distributing power.

“I must tell you that as of today, before the introduction of the tariff increase, the government is subsidising nothing less than 67 per cent of the cost of producing, transmitting and distributing electricity in Nigeria.

“At the current exchange rate, this is going to translate into N2.9tn for 2024. This is more than 10 per cent of the national budget. The power sector is just a single sector out of the many sectors that the government has to attend to.”

Adelabu said other sectors and ministries were competing for government funding and that “it will be very insensitive on our part to force or compel the government to continue to subsidise at the rate of almost N3tn for the power sector alone. We just have to be realistic and considerate.”

He noted that by ending the subsidy for band A customers, the government would save about N1.4tn, adding that this fund would be channelled into the development of other sectors such as health, education, works, etc.

The minister argued that the tariff hike was pro-poor, as those affected were mainly residents who could afford the cost, but noted that subsidy on electricity was only going to be for the short term.

According to him, the Federal Government plans to end the subsidy on power within three years, and the withdrawal of subsidy from band A customers is just the pilot phase.

He said, “This tariff review conforms with our policy thrust of maintaining a subsidised pricing regime in the short run or the short term with a transition plan to achieve a full cost-reflective tariff for over a period of, let us say three years.

“I have mentioned it in a couple of media briefings that it is because of the government’s sensitivity to the pains of our people that we will not make us migrate fully into a cost- reflective tariff or remove subsidy 100 per cent in the power sector like it was done in oil and gas sector.

“This is more like a pilot for us at the Ministry of Power and our agencies. It is like a proof of concept that those that have the infrastructure sufficient enough to deliver stable power and enjoy 20 hours of light to be the ones to get tariff hike.

  • Atiku Condemns Hike

The 2023 presidential candidate of the Peoples Democratic Party, Atiku Abubakar, has warned the Federal Government that Nigerians will suffer more with an increase in electricity tariffs.

Atikun said in a statement he personally signed on Friday that the increase in electricity tariffs would exacerbate the citizens’ hardships, particularly as inflationary pressures were on the rise.

He admonished the Federal Government, particularly NERC, to understand the root cause of inefficiencies in the power sector before implementing another round of reforms.

The statement read in part “As usual, the government is unleashing another dose of reforms without adequate notice and without an adequate post-reform plan to mitigate the pain.

“The increase in electricity tariff comes at a time when Nigerian citizens are going through excruciating difficulties occasioned by the withdrawal of subsidy on PMS and floating of the domestic currency.

“The government has not successfully dealt with the pains associated with the implementation of those measures, and now this. The hike in electricity tariff will create more difficulties for the citizens as inflationary pressures are elevated. Our manufacturing sector will similarly be impacted negatively. Not only are they paying higher interest rates on their bank loans, but also paying more for diesel, and paying higher wages as a result of the new minimum wage. The President’s men are pushing the economy into a deeper crisis. His reforms are without a human face.

“It is important that we understand the root cause of the inefficiencies in the power sector before unleashing another dose of reforms. It is time to revisit the privatisation exercise that produced the Discos.

“Tinubu must (a) ensure that these reforms are sequenced, (b) implement measures to mitigate the pain, and (c) hold the NERC responsible for ensuring improved service delivery.”

  • Lawmakers Fault Hike

The Minority Caucus of the House of Representatives called on the Federal Government to prevail on NERC to cancel the recent increment in electricity tariff across the country.

In a statement issued in Abuja on Friday, the Minority Leader of the House, Kingsley Chinda, described the hike as inhuman and evil for placing an unbearable burden on the already strained populace, thereby exacerbating economic hardships and widening the chasm of inequality.

The statement read in part, “We urge Mr President, Bola Tinubu to prevail on the electricity regulator, NERC, to rescind this decision and prioritise the welfare of the people.

“Transparent dialogue and inclusive decision-making processes are imperative to address the root causes of the energy sector’s inefficiencies and ensure sustainable solutions that benefit all stakeholders and not consistent and persistent increase in tariff.

“We call for increased accountability and transparency in the management of resources within the electricity sector. Citizens have the right to demand efficient service delivery and fair pricing mechanisms that align with their economic realities.”

  • Groups React

The Chairman of the South-South United Action for Democracy and the Rivers State Civil Society Organisations, Georgewill Enefaa, and a former President of the Joint Health Sector Union, Obinna Ogbonna, criticised the electricity tariff increase.

Enefaa said it was bad for the government to allow the increase in electricity tariff amid the economic situation of the country.

He said, “This present administration represents capitalism, which is only interested in profits. By its design, it is not interested in the welfare of the people, just profits.

It is quite pathetic and it is a height of insensitivity to the government that cannot provide other sources of energy like petroleum.

“This is a time when production is dropping in the country and they decided to increase one of the significant means of production, which is electricity. It is wickedness, to say the least, and barbaric. The easiest explanation is that this administration is interested in tapping the last straw of blood from the veins of Nigerians.”

Ogbonna criticized the tariff increase, saying the move was coming at a period when Nigerians were still struggling with the removal of fuel subsidy and its effects.

He added that it appeared as if the Federal Government was doing trial and error with the economy, and advised President Bola Tinubu and his economic team to find a direct pattern of fixing the economy.

The President, Nigeria Automobile Technicians Association, Magaji Sani, said the increase would have grievous implications for members of the body.

According to him, the Federal Government should concentrate on delivering stable electricity to Nigerians before considering an increase in tariff.

He said, “The implication of this hike in electricity tariff will be grievous. Firstly, electricity is not available. People are just managing the little they see and augment it with generators. Instead of fixing the electricity supply first, they are talking about increasing tariffs. If you want to sell something, you must have it in good quality.

“There is a hardship because everything in the country is now very expensive. People have yet to recover from the current inflation, and here you are increasing the electricity bill. It is very unfortunate. The people voted in the government, it is wrong for the same government to make life difficult for the people. We are calling on the government to reverse the increase.”

 

Credit: The Punch

BIG STORY

GHAPP Participates In FARMFATECH 2024, Advocates For Agricultural Financing And Mechanisation In Nigeria

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Greener Hope Large-scale Agriculture Mechanisation Programme (GHAPP) made a significant impact at the maiden edition of the FARMFATECH 2024 EXPO, a three-day event held at the Velodrome of the Moshood Abiola National Stadium in Abuja. The event gathered prominent stakeholders from the agricultural value-chain sector to discuss pressing issues in agricultural financing and the value chain across Nigeria and Africa.

FARMFATECH 2024 featured a rich line-up of thought leadership panels and exhibitions, showcasing advancements in agricultural technology, mechanisation, and financing solutions. Greener Hope actively participated in both discussions during the sessions as well as the exhibitions, highlighting its commitment to providing technology-driven mechanisation solutions to Nigerian farmers and the Agri-business value-chain.

Panel Discussions on Agricultural Financing and Mechanisation during the EXPO, commenced with the first panel, themed “Agricultural Financing and its Value Chain in Nigeria and Africa,” with discussants which paraded key industry leaders and decision-makers including Senator Abubakar Kyari, CON, Honourable Minister of the Federal Ministry of Agriculture and Food Security, General Christopher Cwabin Musa, OFR, Chief of Defence Staff of the Nigerian Armed Forces, Professor Benedict Okey Oramah, President and Chairman of Afreximbank, Oliver Alawuba, CEO of United Bank for Africa, while Dr. Ilyasu Gashinbaki, Vice President Finance (Abuja Chamber of Commerce and Industry), served as the session’s moderator.

On the panel, Dr. Musa Olasupo, Director of Programme of Greener Hope, extensively discussed the importance of access to finance in expanding mechanisation efforts. He emphasised the Greener Hope Large-scale Agriculture Mechanisation Programme (GHAP’s) relentless commitment to empowering both small holders as well as large-scale farmers, enabling them to increase productivity and address food security challenges. ‘’Agricultural mechanisation services require long-term financing options, and it must be made consistently over a period of time for us to attain the desired level of Mechanisation that can catalyse agricultural productivity in Nigeria. Government should be ready to do the heavy lifting and allow the private sector to complement her efforts. That is the logic guiding the Greener Hope Large Scale Mechanization Programme” said Dr. Olasupo.

The second panel brought together experts which included Dr. Ifeanyi Chukwunonso Okeke, Director General, Standards Organisation of Nigeria (SON),Mrs. Nonye Ayeni, Director/CEO, Nigerian Export Promotion Council (NEPC),Mr. Kamal Abdullahi Rasheed, Executive Director and CEO, National Centre for Agricultural Mechanisation (NCAM),Kamar Bakrin, Executive Secretary, National Sugar Development Council (NSDC),Mr. Oluwemimo J. Osanipin, Director General, National Automotive Design and Development Council (NADDC), Mr. Sa’ad Hamidu, CEO, NIRSAL to discuss further strategies for advancing agricultural productivity and enhancing support structures for mechanisation.

  • Exhibition Highlights

In addition to the panel discussions, FARMFATECH 2024 also featured an extensive exhibition that showcased Greener Hope’s innovative mechanisation solutions tailored towards Nigeria’s agricultural landscape. Attendees, including policymakers, financiers, and agricultural stakeholders, were able to engage with Greener Hope representatives and explore the cutting-edge technologies that the organization offers to boost farm productivity, minimize manual labour, and address common farming challenges.

Shaping the Future of Agricultural Financing and Mechanisation

FARMFATECH 2024 was a crucial platform for Greener Hope to emphasize the role of mechanisation and innovative financing in building a sustainable agricultural ecosystem. Dr. Olasupo’s contributions to the discussions underscored Greener Hope’s leading role in meeting the financial and technological needs of Nigeria’s agricultural sector.

To learn more about the GHAPP, please visit www.greenerhopeng.com.

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BIG STORY

400 Sex Tapes: Equatorial Guinea’s Baltasar Remanded In Prison

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The former Director-General of the National Financial Investigation Agency in Equatorial Guinea, Baltasar Engonga, has been remanded in Malabo’s Black Beach Prison.

The embattled former anti-graft chief was arrested days ago for allegedly recording over 400 sex tapes involving the wives of prominent figures in the country.

This scandal surfaced during a fraud investigation into the 54-year-old economist, resulting in an impromptu search of his home and office by ANIF officials, who reportedly discovered several CDs that revealed his sexual encounters with different married women.

As the footage leaked online, causing a media uproar, Equatorial Guinea’s President, Obiang Nguema Mbasogo, dismissed Engonga.

According to Decree No. 118/2024, dated 4th November, the dismissal was due to “irregularities committed in the exercise of his functions, as well as inappropriate family and social conduct for the performance of public duties.”

A viral video surfaced on social media on Friday, showing Engonga handcuffed on both hands and legs during a court appearance.

Confirming the situation, French online blog Afrikmatin reported that Engonga, who was officially removed from his role on November 6, 2024, was subsequently chained and transferred to Malabo Central Prison. He faces charges of corruption and embezzlement.

Additionally, online newspaper UGStandard reported that the sex tapes began circulating on social networks while Engonga was already held at Malabo’s notorious Black Beach Prison on charges of embezzling public funds, as reported by state television, TVGE.

In a fact-checking report published Wednesday, Dubawa verified that Engonga had indeed been taken into custody on corruption charges and is currently being held in Black Beach Prison.

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BIG STORY

JAPA: Canada Tightens Visa Rules, Ends Automatic 10-Year Multiple-Entry Visas

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Canada will no longer automatically grant 10-year multiple-entry visas to tourists, according to new guidelines issued by Immigration, Refugees and Citizenship Canada.

This decision marks a shift from the previous practice where eligible visitors were routinely issued long-term visas, permitting multiple entries over a decade.

Under the revised rules, immigration officers now have discretion to issue visas with shorter durations based on individual assessments.

Instead of a default extended validity period, each application will be evaluated on a case-by-case basis.

Officers can decide whether to grant a single-entry or multiple-entry visa and determine its duration, moving away from the automatic issuance of maximum-validity multiple-entry visas.

“Guidance has been updated to indicate that multiple-entry visas issued to maximum validity are no longer considered to be the standard document. Officers may exercise their judgement in deciding whether to issue a single or multiple-entry visa and in determining the validity period,” said the IRCC.

The IRCC explained that this change is part of a broader strategy aimed at managing temporary immigration levels while addressing ongoing challenges such as housing shortages and rising living costs.

The policy adjustment reflects the Canadian government’s efforts to adapt its immigration approach in response to economic and infrastructure pressures.

Previously, Canada offered two types of tourist visas: multiple-entry and single-entry. Applicants were generally considered for the multiple-entry visa, which allowed them to visit the country multiple times over a period of up to 10 years or until one month before their passport’s expiration date.

Single-entry visas, issued for specific situations like official visits or participation in single events, were less common.

Now, with the updated guidance, maximum-validity multiple-entry visas will no longer be the standard offering.

Immigration officers will exercise their judgement to decide on the appropriate type and duration of the visa, tailoring it to the specific needs and circumstances of the traveller.

The application fee for a Canadian visitor visa remains unchanged at CAD 100 per person, with no difference in cost between single-entry and multiple-entry options.

However, the shift may result in increased application costs for frequent travellers, who might need to apply more often due to shorter-term visas.

This policy change is part of a wider effort to balance immigration levels with Canada’s current infrastructure capabilities.

Other measures announced include a reduction in the target for permanent resident admissions, which will drop from 500,000 in 2025 to 395,000, with further decreases planned for 2026 and 2027.

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