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The Federal Government through its Ministry of Petroleum Resources and the Nigerian National Petroleum Company Limited have stated that the various claims by different individuals and groups on the alleged return of subsidy on Premium Motor Spirit, popularly called petrol, were wrong.
The government also challenged those who make this argument to provide evidence to justify their allegations, stressing that since President Bola Tinubu had declared the end of subsidy on petrol, the situation remains so.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, stressed that fuel subsidy was a sensitive issue, but noted that the government had made its position known on the matter.
When contacted for the reaction of the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, on the matter, his media aide, Nneamaka Okafor, provided a video clip where her boss reacted to the claims of the former Kaduna governor and marketers.
In the clip, Lokpobiri insisted that petrol subsidy had ceased to exist, and urged those who alleged that the government was still subsidising the commodity to provide evidence and facts.
The minister said, “I don’t want to delve into that issue. It is a very sensitive issue. It is better we get all the facts. As far as I’m concerned, the President removed the subsidy and it remains removed till today. Anybody who is saying that subsidy is being paid, it is left for the person to bring the facts and then we will talk about them.”
Asked whether the price being paid for petrol currently is determined by market forces, the minister replied, “It may not be determined by market forces but let us deal with the price as it is today.
“Every government has a duty to do certain things, not only in the petroleum sector but in several other sectors, to be able to cushion the effect and burden on Nigerians.”
The NNPC also said it was recovering its full cost on the petroleum products that it imports into Nigeria, and insisted that there was nothing like petrol subsidy any more. NNPC is the sole importer of petrol into Nigeria currently.
Their comments came as oil marketers backed the claim by the immediate past Governor of Kaduna State, Nasir El-Rufai, that the Federal Government had resumed the payment of subsidy on Premium Motor Spirit also called petrol.
Oil dealers also pointed out that the current cost of PMS at filling stations should be around N900/litre if there were no subsidy on the commodity.
This price, according to them, is because of the recent appreciation of the naira against the United States dollar.
The pump price of petrol is currently between N600 and N700/litre depending on the area of purchase.
El-Rufai had told journalists in Maiduguri on Monday that many citizens were not aware that the government had reintroduced the PMS subsidy.
“The Federal Government is now subsidising fuel; many people don’t know this. It is the right policy. I have always supported the withdrawal of oil subsidies; but in the course of implementing the policy, the government realised that subsidy has to be back; right now, the government is paying a lot of money for subsidy, even more than before.
“You start implementing a policy because you are sure it is the right policy, but in the course of implementation, you come across bottlenecks, and you modify.
“The keyword in leadership, in my view, is pragmatism. You should be pragmatic. So when you make a policy, you start implementing it, and it doesn’t seem to work well. You should have the humility to stand back and say this is not working, and you modify it,” the former governor stated.
Marketers back El-Rufai
Reacting to this on Wednesday, oil dealers under the aegis of the Independent Petroleum Marketers Association of Nigeria, stated that what the former governor said was not far from the truth.
They argued that the subsidy on petrol kept rising as the exchange rate of the United States dollar increased, stressing that the government spent more on the PMS subsidy at the time the dollar exchanged for about N1,500.
The marketers, however, noted that since the local currency started appreciating against the dollar, the subsidy on PMS had been on the decline.
This, according to them, is because the dollar remains the major component that influences the cost of petrol, as Nigeria imports the commodity through NNPC Ltd.
The Public Relations Officer, IPMAN, Chief Ukadike Chinedu, told our correspondent that petrol prices at the pumps should be around N900/litre.
“I’ve said before that the PMS subsidy had been returned, and the government said it was a lie. I said before that the government is subsidising PMS and it is on till this moment. I said before that what the government was doing was quasi-subsidy and that has not changed,” Ukadike stated.
When asked what would have been the landing cost of petrol at the depots and tank farms if there was no subsidy on the commodity, he replied, “Going by the steady appreciation of the naira against the dollar lately, the amount being spent as subsidy on petrol should be on the decline.
“Since the dollar is currently around N1,000, then PMS landing cost should be around N800/litre, while the cost at the pumps should be nearing N900/litre.”
No subsidy, NNPC insists
But the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye, insisted that the national oil firm had stopped subsidising petrol.
“We are recovering our full costs from the products we import. It is important to emphasise that the subsidy is no longer in place. Contrary to allegations, the petrol subsidy has not been reinstated,” he stated.
Before the recent claims on the return of petrol subsidy by the Federal Government, the Group Chief Executive Officer, NNPC, Mele Kyari, had told state house correspondents after an audience with the President at the Aso Rock Villa a few months ago that fuel subsidy had not been returned.
“No subsidy whatsoever. We are recovering our full cost from the products that we import. We sell to the market, and we understand why the marketers are unable to import. We hope that they do it very quickly and these are some of the interventions the government is doing. There is no subsidy,” Kyari had stated.
His reaction at the time came after the Petroleum and Natural Gas Senior Staff Association of Nigeria confirmed the return of fuel subsidy.
PENGASSAN’s National President, Festus Osifo, had said the government still subsidised petrol due to the cost of crude oil in the international market and the exchange rate.
“They (government) are paying subsidies today. In reality, today, there is a subsidy because, as of when the earlier price was determined, the price of crude in the international market was around $80 for a barrel.
“But today, it has moved to about $93/94 per barrel for Brent crude. So, because it has moved, the price (of petroleum) also needed to move. The only reason the price will not move is when you can manage your exchange rate effectively and you can pump in supply and bring down the exchange rate.
“So, if the exchange rate comes down today, we will not be paying a subsidy. But with the exchange rate value and the price of crude oil in the international market, we have introduced the subsidy,” Osifo had explained.
In his inaugural address after taking the oath of office on May 29, 2023, President Bola Tinubu announced that the Federal Government was closing the curtains over the subsidy era.
“Subsidy can no longer justify its ever-increasing costs in the wake of drying resources.
“We shall instead re-channel the funds into better investment in public infrastructure, education, health care, and jobs that will materially improve the lives of millions. Petrol subsidy is gone!” Tinubu had declared.
The President’s announcement sparked the increase in fuel price from N197 to between N480 and N570. The pump price was subsequently reviewed upward to N617/litre and now sells for between N620 and N700/litre.
[Punch]
The Central Bank of Nigeria has specified the reasons behind the significant decrease in the country’s foreign exchange reserves. It clarified that the main objective was not solely to support the naira but rather to partially settle debts owed to creditors.
Emphasizing a hands-off approach, the bank expressed its intention to limit its interference in the market, advocating for prices to be determined organically through the interactions of buyers and sellers.
CBN Governor, Olayemi Cardoso, provided this explanation during the ongoing International Monetary Fund/World Bank Spring Meetings in Washington D.C, United States.
Concerns arose among Nigerians due to the notable decline in the nation’s foreign exchange reserves, dropping by about $2.16bn in 29 days despite efforts to stabilize the naira.
Data from the CBN website revealed that as of April 15, 2024, the FX reserves stood at $32.29bn, significantly lower than the $34.45bn recorded on March 18, 2024.
There was a previous 43-day accumulation, where the reserves increased by $1.28bn between February 5 and March 18, 2024.
Cardoso, speaking at the Governor Talks event titled “Catalyzing Change: Reforming Monetary Policy in Nigeria,” reiterated that the recent shift in reserves was unrelated to defending the naira and pledged minimal intervention in the exchange market unless under exceptional circumstances.
He mentioned an expected upward trend in reserves with an additional $600m inflow soon.
Addressing the decline in reserves, Cardoso explained that it was a standard occurrence in countries where debts are due for repayment, reflecting the necessity to uphold credibility.
Noting the increased liquidity in forex, he disclosed that daily transactions reached $1bn within six months of his tenure, surpassing the $200m to $300m monthly average from previous administrations.
Cardoso acknowledged the challenging situation he inherited and the government’s concern about rising inflation, emphasizing the collaborative effort between the central bank and the Ministry of Finance to discontinue the practice of using Ways and Means.
[newsnow]
Ben Akabueze, director-general of the budget office of the federation, says investors are active players in corruption in Nigeria.
Akabueze spoke to TheCable on Tuesday in an interview session held on the sidelines of the ongoing International Monetary Fund (IMF) and World Bank meetings in Washington DC.
Addressing questions on how the perception of corruption could discourage foreign investors, the chartered accountant said the issue is not peculiar to the West African nation.
He said investors are also part of the corruption problem bedevilling the country, highlighting the steps taken by the federal government to curtail corrupt practices.
“First, the challenge of corruption is not peculiar to Nigeria — it’s everywhere,” Akabueze said.
“Number two, when you say address, some of the investors themselves are active players in the corruption, so it’s not that they’re addressing corruption away from the investors
“Corruption is being addressed systematically — and that’s whether you’re an investor or you’re a public official, or you are a local player in any area — one key way of dealing with corruption is greater transparency, opening up the processes of government.
“And then, the government itself, also pulling back as much as possible and eliminating those opportunities for corruption, tightening the legislation.”
Akabueze said the Economic Financial Crimes Commission (EFCC) is actively prosecuting culprits, adding that “there’s a whistleblowers’ programme in place” to also curb the menace.
‘CULPRITS SHOULD BE REPORTED’
“So, if anyone has information, credible information about any corrupt practices, they’re welcome to report them,” the director-general said.
In its 2023 ranking, Transparency International (TI) said Nigeria recorded an improved in the Corruption Perception Index (CPI) by moving five places up to rank 145 out of 180 countries assessed.
Apart from moving five places up from its 150th position, the country also gained one point from its previous 24, ending up scoring 25 out of the 100 maximum points in the 2023 CPI results.
The CPI, arguably the most widely used global corruption ranking in the world, measures how corrupt each country’s public sector is perceived to be.
The ranking uses a scale of zero to 100 — where zero means “highly corrupt”, and 100 means “very clean”.
Going by the latest CPI, the perception of corruption is still high.
[Thecable]
The Student Loan Scheme of the Tinubu-led Administration os set to kick off with about 1.2 million beneficiaries.
Nigerian Education Loan Fund (NELFUND’s) Managing Director/Chief Executive Officer (MD/CEO), Mr. Akintunde Sawyer said the loan scheme will take off soon after President Tinubu signed it into law on April 3.
It will be funded with one per cent of the total annual collectable revenue by the Federal Inland Revenue Service (FIRS). The FIRS has already been given a revenue target of N19.4 trillion.
If the target is met, N194 billion will be available as a loan to the beneficiary students and repayment, according to the law, will commence two years after the completion of the National Youth Service Corp (NYSC).
Commenting on the scheme, the NELFUND CEO said;
“We don’t expect to have more than 1.2 million students in the first instance. As time goes on, there will probably be expansion.
“For the successful applicants, we will be paying their fees – the full amount – directly to the institutions.
“There will also be a stipend paid to the individuals. At a regular interval, the beneficiaries will receive an amount of money for their upkeep so that they can do the basic things – feeding, photocopying handouts and data.
“They can use the stipend to ensure that there is enough opportunity for them to survive the experience of being students. We all know that students’ survival is on another level.”
On the condition to be met by potential beneficiaries, Sawyer said they would be required to provide their Joint Admissions and Matriculation Board (JAMB) numbers, National Identification Number (NIN), and Bank Verification Number (BVN), among other details before they can apply for the loan.
Those who are already students and seek to take the loan would need to, in addition to these conditions, provide their matriculation details. He added;
“Without a doubt, President Tinubu intends to ensure that as many Nigerians as possible get this opportunity. That is why he has vigorously pursued this opportunity on behalf of students.
“That is why all of us must join hands to ensure that capacity expansion can happen. This is not going to be an elitist programme. It is a programme that is going to drag as many people into the education net as possible.
“That is what the President intends and that is what we are going to do.”
Tinuade Sanda’s recent dismissal as CEO of a major electricity distribution company (Disco) in the southwest region has sent shockwaves through the Nigerian business community, triggering a storm of questions regarding the legitimacy of her academic qualifications and casting doubts on corporate integrity.
Sanda’s swift ascent to the helm of the Disco was marked by claims of academic achievements, prominently featuring an MBA in Strategic Planning purportedly obtained from the University of Edinburgh, a prestigious institution in Scotland. However, a thorough examination by the university revealed no such program exists, plunging her educational background into uncertainty. Further discrepancies emerged regarding her alleged undergraduate degree from Harvard Business School, a renowned institution known exclusively for graduate-level programs. Most alarmingly, Sanda’s claim of holding a Doctor of Philosophy in Financial Management and Entrepreneurship from ICON University in the Republic of Benin was debunked as the institution’s credibility came under scrutiny. ICON University’s website, fraught with grammatical errors and dubious accreditations, provided no substantial evidence of Sanda’s academic pursuits.
The revelation of Sanda’s questionable credentials has raised profound concerns not only about her suitability for leadership but also about the efficacy of due diligence processes in corporate appointments. Investigations unearthed a disturbing trend in Benin, where institutions allegedly fabricate academic qualifications. Sanda’s association with such dubious credentials calls into question her judgment and underscores potential flaws in corporate vetting procedures.
Adding to the controversy, a November 2022 letter from Nigeria’s Bureau of Public Enterprises (BPE) expressed reservations about Sanda’s competence and emotional maturity to lead the Disco. If proven false, Sanda’s embellished academic record not only stains her reputation but also undermines her credibility as a mentor, particularly to young women aspiring to leadership roles.
Sanda’s trajectory, marred by questionable qualifications, highlights the imperative for robust executive verification mechanisms to ensure appointments are based on merit and integrity. Her saga serves as a stark reminder of the importance of ethical conduct and transparency in corporate governance. As stakeholders grapple with the fallout, it prompts a broader discourse on the standards of integrity expected from leaders entrusted with pivotal roles in Nigeria’s business landscape.
[ThisNigeria]
A governorship aspirant of the Labour Party, Kenneth Imasuangbon, popularly called ‘The Rice Man,’ has dragged Olumide Akpata to court, seeking his disqualification as the governorship candidate of the party in the Edo State election scheduled for September 21.
Naija News reports that Imasuangbon filed two separate suits against Akpata at the Federal High Court Benin and Federal High Court Abuja.
In a suit No. FHC B/CS/26/2024 and filed at the Benin division by his counsel A.A. Malik & Co, Imasuangbon said that LP, which is the second defendant in the suit, was wrong by declaring Olumide Akpata the winner of the party’s primary election conducted on February 23, 2024.
In the Abuja division, Imasuangbon alleged that Akpata lied under oath and supplied false information to the Independent National Electoral Commission (INEC).
In the Abuja suit, he joined Akpata, the first defendant, with his running mate, Alufohai Faith, LP, and INEC as the second, third, and fourth defendants, respectively.
In the Benin suit, Imasuangbon said Akpata, a former president of the Nigeria Bar Association (NBA), was not qualified to contest the primary, having violated the provisions of section 222(c) of the Nigeria constitution as well as Article 28 of the party’s guidelines for the conduct of the primary.
Imasuangbon further averred that votes garnered by the first defendant in the primary be declared invalid.
The plaintiff, who listed nine issues for determination and 18 others for declaration by the court, asked the court to set aside the LP February 23 governorship primary in the Edo state.
He further asked the court “to determine if Akpata is qualified to have contested the primary having failed to sign or endorse the indemnity form issued him by the second defendant.
“To determine if the votes garnered in the purported primary should not be voided and wasted in the face of outright disregard to the constitutional provisions of the country and that of the party.
“To determine if he that scored the second highest votes in the said primary should not be declared the winner and validly nominated to be the governorship candidate of the LP.
“To determine if the party conducted the February 23 governorship primary in a manner outlined, prescribed, or otherwise circumscribed by section 84 of the Electoral Act, 2022.
“The court also determine if the primary did not run foul of the provisions of section 84(2), (3), (4) and (5) of the Electoral Act, 2022.”
Imasuangbon asked the court to stop INEC or any other agent from recognizing Akpata as the governorship candidate of the LP for the upcoming Edo gubernatorial election.
He also called for the withdrawal of the certificate of return issued by the second defendant to the first defendant as the purported winner of the said primary.
While asking for the sum of N20 million as the cost of the suit, Imasuangbon asked that a fresh primary should be conducted not later than 30 days after the judgment of the court.
However, for the Abuja division of the suit, Imasuangbon alleged that Akpata supplied false information to the INEC according to information provided in their form EC9.
He said that Akpata claimed to have been Akpata Olumide Anthony but filled his name to be Akpata Olumide Osaigbovo.
According to Imasuangbon, the actions contravene the provisions of section 29(5) of the 2022 electoral Act and also section 182(i), (a), and (j) of the 1999 constitution of the federal government of Nigeria as amended.
He thus sought his disqualification and for Akpata to be restrained from participating in the September 21 governorship election in Edo State.
[NaijaNews]
Operatives of the Economic and Financial Crimes Commission have stormed the Abuja home of a former Governor of Kogi State, Yahaya Bello, located in Wuse Zone 4, Federal Capital Territory.
Photographs seen by our correspondent on Wednesday show some armed EFCC personnel laying siege to the ex-governor’s home on Benghazi Street, Wuse Zone 4, Abuja.
As of press time, our correspondent could not independently confirm the reason behind the siege on Bello’s home as the spokesperson for the EFCC, Dele Oyewale, did not respond to inquiries concerning the development.
However, the EFCC had earlier dragged Yahaya Bello, his nephew Ali, one Dauda Sulaiman, and Abdulsalam Hudu before Justice James Omotosho of the Federal High Court, Abuja, in an amended charge in March 2024 over an alleged N84bn money laundering.
Reacting to the development, the ex-governor’s media office, in a statement, condemned the operatives’ actions while urging President Bola Tinubu to caution the EFCC.
According to the statement, the presence of the operatives in Bello’s residence negated the order of injunction granted on February 9, 2024, by the High Court of Justice, Lokoja Division, in Suit No. HCL/68M/2024 between Yahaya Bello v. EFCC, restraining the commission either by itself or its agents from harassing, arresting, detaining, or prosecuting him, pending the hearing and determination of the substantive fundamental rights enforcement action.
The statement read, “The EFCC was duly served with that order on February 12, 2024, and on February 26, 2024, the EFCC filed an appeal (Appeal No.: CA/ABJ/CV/175/2024: Economic and Financial Crimes Commission v. Alhaji Yahaya Bello) against the said order to the Court of Appeal Abuja Division. The appeal was accompanied by a Motion for a Stay of Execution of the order of the High Court, which the Court of Appeal adjourned for hearing till April 22, 2024.
“Furthermore, judgment in the substantive case between Alhaji Yahaya Bello and the EFCC will be delivered at 12 noon today in Lokoja.
“Contrary to all of the above, the EFCC has now laid siege to the home of H.E Yahaya Bello, seeking to arrest him in contravention of the extant orders!
“It is a surprise that an agency led by a lawyer could flagrantly disobey a subsisting court order by taking actions contrary to the reliefs granted.
“We are aware of the total commitment of President Bola Tinubu’s current administration to the rule of law and can say categorically that the EFCC leadership might have offered the agency on a platter of gold to desperate politicians to convert it to their score-settling tool without minding the effect on its integrity and the image of Nigeria as regards the rule of law.”
The ex-governor’s media office further alleged that the anti-graft agency was plotting to embarrass and harass him through spurious allegations, especially the latest one dating back to September 2015, long before he assumed office.
The anti-graft agency, in the 17-count amended charge, accused Yahaya Bello of money laundering, breach of trust, and misappropriation of funds to the tune of N84,062,406,089.88.
The EFCC had claimed in the amended charge that the former governor was at large.
Prior to the charge, the EFCC had arraigned Bello’s nephew, Ali Bello, before the Federal High Court sitting in Abuja for alleged money laundering involving N10bnn belonging to the Kogi State Government.
However, the state government faulted the charge, describing it as “ridiculous” and “laughable,” adding that it was impossible, as the former governor was not yet able to access or misappropriate state funds at the said time.
The state government, in a statement signed by the Commissioner for Information and Communications, Kingsley Fanwo, had on February 7, 2024, accused the EFCC of being “infested with persons whose intents disagree with the noble intention of ‘Mr. President’ to defeat corruption in Nigeria.”
Count one of the charges reads: “That you, Ali Bello, Dauda Suleiman, Yahaya Adoza Bello (still at large) and Abdulsalam Hudu (still at large), sometime in September, 2015 in Abuja, within the jurisdiction of this Honourable Court, conspired amongst yourselves to convert the total sum of N80,246,470,089.88 which sum you reasonably ought to have known forms part of the proceeds of your unlawful activity to wit: criminal breach of trust and you thereby committed an offence contrary to Section 18(b) and punishable under Section 15(3) of the Money Laundering (Prohibition) Act, 2011 as amended,” the EFCC said in a release sent to SaharaReporters.
“While ex-Governor Yahaya Bello and Hudu are still at large, Ali Bello and Suleiman, first and second defendants respectively, who were present in court “pleaded not guilty” to all the charges when they were read to them.
[Punch]
[STATE HOUSE PRESS RELEASE] President Tinubu Commends Dangote Group Over New Gantry Price of Diesel
AdminPresident Bola Tinubu commends the enterprising feat of Dangote Oil and Gas Limited in reducing the gantry price of Automotive Gas Oil (AGO), also known as diesel.
The Group recently reviewed downwards the gantry price of AGO from N1,650 to N1,000 per litre for a minimum of one million litres of the product, as well as providing a discount of N30 per litre for an offtake of five million litres and above.
The price review represents a 60 percent drop, which will, in no small measure, impact the prices of sundry goods and services.
The President affirms that Nigerians and domestic businesses are the nation's surest transport and security to that glorious destiny of economic prosperity, noting the federal government's 20 percent stake in Dangote Refinery and why such partnerships between public and private entities are essential to advancing the overall well-being of the country.
The President calls on Nigerians and businesses to, at this time, put the nation in priority gear while assuring them of a conducive, safe, and secure environment to thrive.
Chief Ajuri Ngelale
Special Adviser to the President
(Media & Publicity)
[PRESS STATEMENT] Secondus to PDP: Don't fall for Wike's gimmick, using you to remain relevant with Tinubu
Admin
The former National Chairman of the Peoples Democratic Party, PDP, Prince Uche Secondus has sent out an advisory to PDP leaders assembling for the party's 98th NEC meeting tomorrow to do everything humanly possible and within the law to rescue and restore the party’s glory.
Speaking ahead of the party’s long-awaited National Executive Committee, NEC meeting tomorrow, the former National Chairman said the former Governor Neysom Wike’s busybodying gimmick should not distract them as the drowning Minister of FCT, is trying hard to create a non-existent crisis in the party to make himself relevant before his boss President Bola Ahmed Tinubu who is already getting fed up with his nuisance of bringing politics into the governance of the FCT.
By deviously trying to create the impression that he is in a tussle of supremacy with the 2023 Presidential Candidate of the party and former Vice President Atiku Abubakar, Wike who is copiously losing political relevance everywhere from Rivers to Abuja is trying to give the impression that he is a factor in PDP and holding it for his APC interest.
‘The critical structures of this party, NEC, BOT, National Caucus, forum of Governors, Chairmen of states and National Assembly caucus of the party must rise to the challenge and isolate mischief makers and meddlers like Wike and move the party forward.
The former National Chairman then charged the party leaders not to fall into Wike’s trick by giving him undeserved relevance which he no longer possesses. I expect the founding fathers and other dedicated members to rise to the challenge and return this great party to its glory by ensuring as they always do at critical moments that nobody or group is greater or bigger than this party.
Signed
Ike Abonyi
Media Adviser
The Federal Government paid about ₦205bn as electricity subsidy in the third quarter of last year, according to data obtained from the Nigerian Electricity Regulatory Commission (NERC) latest report.
The commission’s third quarterly market report revealed the government incurred a subsidy obligation of about ₦205bn in 2023/Q3 (average of ₦68bn per month), which is an increase of ₦69bn compared to the ₦135bn (average of ₦45bn per month) incurred in 2023/Q2.
This increase in subsidy payment, according to the report, was largely attributable to the government’s policy to harmonise exchange change rates due to the absence of cost-reflective tariffs across all electricity distribution companies (DisCos).
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.
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 tariff that they are allowed to charge and set out as their Minimum Remittance Obligation (MRO) in the periodic tariff orders issued by the commission.
The NERC said the rise in the government’s subsidy obligation meant that in Q3/2023, DisCos were only expected to cover 45 per cent of the total invoice received from the commission.
The development comes on the heels of a report by NERC, that DisCos did not remit about ₦50bn to the power sector in the third quarter of last year.
According to NERC, the DisCos failed to remit about ₦50bn to NBET in Q3/2023.
Under the market remittance section of the Q3 2023 Quarterly report, NERC said that the cumulative upstream invoice payable by DisCos was about ₦208bn, consisting of ₦167bn for generation costs from NBET, and ₦41bn for transmission and administrative services by the Market Operator (MO).
Of the amount, NERC said the DisCos collectively remitted the sum of ₦158bn consisting of ₦124bn for NBET, and about ₦34bn for MO), leaving an outstanding balance of ₦50bn. This translates to a remittance performance of about 76 per cent in 2023/Q3 which is down by about 19 per cent, compared to the 95 per cent recorded in 2023/Q2.
In 2023/Q3, the MRO-adjusted invoice from NBET to the DisCos was ₦167bn, while the total remittance made was ₦124bn, which translates to a 74 per cent remittance performance.
The remittance performance of DisCos to NBET in 2023/Q3 (74 per cent) was a 25 per cent decrease compared to the 99 per cent remittance performance recorded in 2023/Q2.
The notable decline in remittance performance by DisCos is a result of the 18 per cent decrease in remittance in 2023/Q3 (₦124.53bn), compared to 2023/Q2 (₦152.48bn) even though the MRO adjusted invoice in 2023/Q3 (₦167bn) increased by about 9 per cent compared to 2023/Q2 (₦154bn).
The total revenue collected by all DisCos in 2023/Q3 was about ₦268bn out of the ₦349bn billed to customers. This translates to a collection efficiency of 76 per cent.
The DisCos’ overall collection efficiency increased by 1 per cent from 75 per cent recorded in 2023/Q2.
This is explained by the fact that, although there was a marginal difference in total collections in 2023/Q3 (0.09 per cent) compared to 2023/Q2 (₦268bn), the total billings declined by 1.4 per cent (compared to ₦354.61bn in 2023/Q2).
All DisCos except Eko and Abuja recorded improvements in collection efficiency in 2023/Q3 compared to 2023/Q2. The DisCos with the most significant improvements in collection efficiency were Kaduna, Ikeja and Yola with about 5 per cent, 3 per cent and +2.9 per cent increases in collection efficiency respectively, between 2023/Q2 and 2023/Q3.
Eko and Abuja DisCos had 3.1 per cent and 1.2 per cent decreases respectively in collection efficiencies.
The overall increase in collection efficiency in 2023/Q3, NERC said, could be attributed to the implementation of various collection campaigns by DisCos, to improve remittance from post-paid customers.
“The most proven method for reducing collection losses is the installation of meters (especially prepaid meters for non-maximum demand customers).
“Therefore, DisCos are expected to utilise one or more metering frameworks provided for in the NERC MAP and NMMP metering regulation (2021) to improve end-use customer metering in their franchise area.
‘’This will reduce commercial and collection losses and will ensure the flow of funds to upstream market participants in the sector.
“Furthermore, DisCos must also continue to evaluate options for improving the optimisation of their energy delivery in line with the Service Based Tariff (SBT) regime to ensure that sufficient energy is supplied to customer groups/clusters with the highest collection efficiencies.
“Prompt payment of upstream invoices is critical for securing the availability of generation and transmission capacities. The waterfall regime pushes DisCos to boost their collections because most of their allowed revenues rank low in the waterfall.
In 2013, the CBN set up an escrow mechanism as part of the conditions for the Nigerian Electricity Market Stabilisation Facility (NEMSF) intervention that was extended to the DisCos.
Under this arrangement, all the revenues of the DisCos are escrowed, with DisCos only having access to these funds after relevant deductions to meet their loans have been made.
This escrow mechanism also provided visibility into the financial performance of the DisCos concerning collections.
[ThisNigeria]
More...
The Presidential Candidate of the Labour Party in the 2023 general elections, Peter Obi, has decried what described as insensitive and undeserving allocations in the 2024 federal budget.
Obi, who had previously called for a total review of the 2024 budget, said the appropriation act showed various misplaced priorities which are tilted against the poor in our midst.
A statement by Obi’s media team signed by Dr Yunusa Tanko, the former presidential candidate said he could not understand how the National Assembly Hospital would get N15 Billion for one year which is five times more than that of the National Hospital and six other premier Teaching Hospitals in the country.
The statement quoted the former Anambra State Governor thus: “I will remain persistent in my expressions of deep concern about the 2024 budget because of its critical importance to the lives of the citizens, especially the poor in our midst.
“I will continue to do so until the end of the year as a matter of patriotic engagement. This is because the many negatives of the budget have far-reaching implications for the development of our dear nation and the well-being of our citizens.
“It is evident that there are items in the budget that do not align with our current circumstances, and it is imperative to call for a review and appropriate virement. Allocating our scarce resources to high-priority areas of need is essential for the well-being of the nation.
“For instance, allocating N15 billion solely for the National Assembly hospital is unacceptable, especially when it exceeds five times the budgetary allocation to **The National Hospital** or the combined capital vote of our six major teaching hospitals across the nation, namely; University College Hospital, Ibadan; University of Nigeria Teaching Hospital, Enugu; Ahmadu Bello University Teaching Hospital, Zaria; Obafemi Awolowo University Teaching Hospital, Ile-Ife; Jos University Teaching Hospital and University of Ilorin Teaching Hospital. This disparity reflects a low level of care for the rest of society.”
He also questioned the budgetary allocation of N15.3 billion for the National Assembly library project and procurement of books, including the e-Library, in a country without a National Library, saying it is disappointing.
“The National Library has been under construction for the past 20 years, and its budgetary allocation for 2024 is less than 1B Naira, which makes the National Assembly Library budget 15 times more.
“Again the National Assembly Library budget is more than the combined budget of the top national universities’ libraries that desperately need the Libraries for research, teaching and learning purposes.
“Furthermore, allocating N10 billion for the Senate’s and House of Representatives car parks and the National Assembly Recreation Centre, while allocating less to the Ministry of Science, Technology, and Innovation, is concerning.
In an era where science, technology and innovation are crucial for the nation’s future, such allocations demonstrate a lack of foresight and basic awareness of global trends and urgent national priorities.”
“This level of insensitivity to the present situation and challenges faced by the people should not be tolerated by any development-minded nation.
“Every scarce resource must be directed towards productive sectors of the economy. It is time for our nation to reassess its priorities, revisit the budget, eliminate frivolous expenditures and channel our resources properly for the benefit of the people. No great nation is built on a foundation of waste and frivolity, ” he said.
[Leadership]
The United Kingdom has said that it is clear that Israel is “making a decision to act.”
He spoke following Iran’s missile and drone attacks launched toward Israel on Saturday which were intercepted and neutralised with the help of the UK, the US, France and Jordan.
According to Reuters, the Foreign Secretary, who spoke with reporters in Israel, also said that the UK wanted to see new sanctions on Iran, saying “They need to be given a clear unequivocal message by the G7.”
Cameron said, “It’s clear the Israelis are making a decision to act,” and that “We hope they do so in a way that does as little to escalate this as possible.”
He said he was in Jerusalem to “show solidarity after that appalling attack by Iran”, saying:
“It’s right to have made our views clear about what should happen next, but it’s clear the Israelis are making a decision to act.
“We hope they do so in a way that does as little to escalate this as possible. And in a way that, as I said yesterday, is smart as well as tough.
“But the real need is to refocus back on Hamas, back on the hostages, back on getting the aid in, back on getting a pause in the conflict in Gaza.”
While in Israel Cameron is expected to meet Prime Minister Benjamin Netanyahu and other Israeli leaders, as well as visit the occupied West Bank.
[DailyPost]
The National Chairman of the All Progressives Congress (APC), Abdullahi Umar Ganduje says he remains the National Chairman of the party, boasting to the Kano State Government that he is unshakeable.
In a viral video, Ganduje was seen amidst a host of party supporters saying that he had met with President Bola Ahmed Tinubu, adding that the President guaranteed his position as the party chairman.
He said, “Yesterday (Tuesday), I met with the president and I explained to him and he said he is also thankful for what you did. What was done is shambolic. He said you should be patient enough. This seat they are looking up to still stands unshakeable.
“Tell Kano State Government that the seat of National Chairman of APC in Nigeria is on Abdullahi Umar Ganduje. We are here unshakable.”
Daily Trust reports that recently, the APC had accused the Kano State Government of sponsoring elements in Ganduje Ward to announce the suspension of the National Chairman.
However, the government had swiftly denied any involvement, labelling it an “internal crisis” within the APC.
Meanwhile, a Kano State High Court on has affirmed Ganduje’s suspension.
The court, while granting an exparte order, also restrained Ganduje from further parading himself as a member of the party.
The order, a copy of which was cited by Daily Trust, was granted by Justice Usman Malam Na’abba, on Tuesday.
The order followed an exparte motion filed Haladu Gwanjo and Laminu Sani by their counsel Ibrahim Sa’ad.
The plaintiffs, who identified as executive members of APC Ganduje ward, said they brought the motion on behalf of the executive members of the ward.
Gwanjo, who identified as the party’s ward Legal Adviser, was the one that announced the suspension of Ganduje two days ago.
The court ordered, that henceforth, Ganduje should desist from presiding over all affairs of the National Working Committee (NWC) of APC.
[Dailytrust]
No fewer than 29 suspects were on Wednesday arraigned before the Chief Magistrate Court for involvement and roles in aborted invasion of the Oyo State Government Secretariat on Saturday, April 13.
They were arraigned on seven count charge bothering on treasonable felony, unlawful society, illegal possession of firearm, going armed and conduct likely to cause breach of peace.
The offences, according to the Investigative Police Officer, Bakare Rasaq, an Inspector with the State Criminal Investigation Department, Iyaganku, Ibadan is contrary to and punishable under Section 516 of the Criminak Code, Cap 38, Vol.II, Laws of Oyo State of Nigeria, 2000.
The number is an increase of eight more following the parade of 21 suspects erier by the Oyo Police Command.
The case with charge number Mi/520c/2024 is between the Commissioner of Police vs the 29 suspects.
Details Shortly…
[TheNation]