Connect with us

Business

Togo, Niger, Benin Owing Nigeria N30bn For Electricity –NERC

Published

on

 

Togo, Niger and Benin Republic owe Nigeria a total of N29.97 billion for the electricity supplied to them from January to September 2019, the Nigerian Electricity Regulatory Commission had said.

Through its electricity transmission company, Nigeria supplies power to these countries, which are classified as international customers in the Nigerian power sector.

Niger’s power firm, Societe Nigerienne electricity, failed to pay a total invoice of N3.01 billion it received in the first quarter of 2019; N3.69 billion in the second quater and N4.1 billion in the third quarter.

Communaute Electrique du Benin, a power firm owned by Togo and Benin, did not pay N9.74 billion for the power supplied to it in the first quarter; N7.16 billion in the second quarter; and N2.27 billion in the third quarter.

NERC said in its latest quarterly report released on Friday that the international customers made no payment for the total outstanding debt in the third quarter of 2019.

The NERC quarterly report analyses the state of the Nigerian electricity industry (covering both the operational and commercial performance), regulatory functions, consumer affairs as well as the commission’s finances and staff development.

“The Nigerian government has continued to engage the governments of neighbouring countries benefitting from the export supply to ensure timely payments for the electricity purchased from Nigeria,” it said.

Though with a slight improvement in the third quarter of 2019, the regulator said financial viability and commercial performance of the industry continued to be a major challenge.

According to the report, a total invoice of ₦179.6 billion was issued to the 11 DisCos for energy received from NBET and for service charge by the Market Operator (MO), but only a sum of ₦58.81 billion of the total invoice was settled, representing 32.73 per cent remittance performance.

The government-owned NBET buys electricity in bulk from generation companies through Power Purchase Agreements and sells through vesting contracts to the Discos, which then supply it to the consumers, while the MO is an arm of the Transmission Company of Nigeria.

“Although the Discos fully met the minimum remittance for MO, the average aggregate remittance performance to NBET was 32.73 per cent, with performance level ranging from 19.43 per cent (Jos) to 50.03 per cent (Eko).

“This is slightly lower than the minimum remittance threshold prescribed in the orders on minimum remittance issued to all Discos in July 2019 with Enugu and Ikeja failing to meet their remittance obligation during the period,” it read.

The regulator said that following the commencement of enforcement of the minimum remittance order, all Discos had since fully complied with their respective minimum remittance thresholds.

“Notwithstanding the slight progress recorded in the third quarter of 2019, the financial viability of the Nigerian electricity supply industry is still a major challenge threatening its sustainability,” it added.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

NERC: Over 1m Electricity Consumers Have Received Prepaid Meters

Published

on

By

Prev1 of 2
Use your ← → (arrow) keys to browse
Prev1 of 2
Use your ← → (arrow) keys to browse

Continue Reading

Business

Labour Warns FG Against Electricity Tariff Hike 

Published

on

By

The Nigeria Labour Congress faulted plans to allegedly sell the Transmission Company of Nigeria, saying it will lead to an increase in electricity tariff.

The NLC President, Mr Ayuba Wabba, said this in a statement titled, “This Kite will not Fly’’ on Friday.

Wabba explained that instead of allegedly planning to sell the transmission company, FG should focus on improving the electricity supply.

He described the attempt to hand over the TCN to a few ‘privileged’ Nigerians as self-serving, obtuse, odious, morally reprehensible and criminal.

The NLC president said, “The TCN is a strategic economic asset of immense national security implications. This is because the TCN traverses all nooks and crannies of Nigeria.

“It will be wrong that our country will be deliberately exposed to an avoidable vulnerability and thus, provide an opportunity to others to restrain the Nigerian state.

“We apprehend that the planned sale of the TCN is only an attempt to further confound the people and concurrently raise electricity tariff. Unfortunately, this time around, Nigerians have had enough.

“The government cannot promise improved power supply to consumers by the planned sale of TCN. The under-the-table scheming as transparent privatisation cannot pass muster.

“It is an unsavoury narrative for our country, that even the privatised assets, which have survived the rapacity of the new owners, have been turned into unrealisable collaterals for unpayable loans.

“This constitutes a bone stuck in the throat of financial institutions and sundry creditors.”

Wabba explained that the plan would “fundamentally weaken the security of the nation and above all, deprive the people of their age-old investments in the commanding heights of the Nigerian economy”.

Continue Reading

Business

FG To Consider Death Penalty For Rail Vandals – Amaechi

Published

on

By

The federal government says it may consider a death penalty for vandals of critical railway equipment in the country.

Rotimi Ameachi, minister of transportation, stated this on Monday, during a town hall meeting on “protecting public infrastructure” in Abuja.

On May 8, the Nigeria Railway Corporation (NRC) announced the arrest of two persons suspected of vandalising rail tracks along the Kaduna-Zaria rail line.

Few days later, suspected vandals were arrested for destroying and carting away tracks and rail rods laid on a section of the Warri-Itakpe rail line.

On May 16, the Kaduna state police command said it arrested five suspected rail-trail vandals at Dalle Village of Jema’a LGA and recovered two trucks loaded with locomotive railway sleepers.

After the Warri-Itakpe incident, the senate asked the federal government and security agencies to ensure that those caught vandalising rail lines across Nigeria are given maximum punishment without a fine.

”I am not quantifying the material cost; what I am quantifying is the lives that will be lost,” Ameachi said at the town hall meeting.

“Imagine that a driver of a rail track is driving and suddenly bumps into a track that has been severed, what happens? It will derail.

“If it derails, can you quantify how many passengers that would have died in the course of one man thinking he is making money?

”Some people have recommended that since these people are killing people, if an accident happens people will die, so we should go back to the National Assembly and pass a law that does not only criminalise the action but consequences should be death.”

The minister also said track vandalism is carried out in collaboration with foreign partners.

”In Jos, they arrested a Chinese company that bought those tracks from them, went to court and found them guilty and fined them N200, 000. So there must be consequences as N200,000 is not enough,” he added.

“Lagos and the Western District recorded one, North Western 31, Northern District 10, North Eastern 43, Eastern 36 and North Central 50 incidents of vandalism. Abuja-Kaduna has 13, Warri-Itakpe 2 and Lagos -Ibadan nill.”

Amaechi, who frowned at traders selling items on railway tracks, especially in Port Harcourt and Lagos, advised individuals engaging in the practice to desist or face the penalties.

Continue Reading