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Breaking : 10 years Failure, DisCos renewals will not be automatic, the power sector privatisation failed, Says Tinubu
Ten years after the partial privatisation of the Nigerian Electricity Supply Industry, NESI, the Federal Government, on Monday, admitted that the exercise had failed to meet its objectives.
The government described as shameful the current generation, transmission and distribution level of just over 4,000 Megawatts.
Speaking in Abuja at the 2023 NESI Market Participants and Stakeholders Roundtable, NMPSR, President Bola Tinubu said after 10 years of privatisation about 90 million Nigerians were still without power supply.
The three-day conference has as theme: ‘NESI privatisation and its 10-year milestone: the journey so far, opportunities and prospects’.
Represented by the Special Adviser, Energy and Infrastructure, Office of the Vice President, Mr Sodiq Wanka, President Tinubu noted that the investments expected from the private sector never came.
According to him, “the key objectives of the privatisation effort were to improve the efficiency of the power sector, unlock private sector investments and unleash the potential of the nation through an energized economy.
“10 years on, I believe it is fair to say that the objectives of sector privatisation have by and large, not been met.
“Over 90 million Nigerians lack access to electricity. The national grid only serves about 15% of the country’s demand. This has left households and factories to rely on expensive self-generation, which supplies a staggering 40% of the country’s demand.
“What is worse, the total amount of electricity that can be wheeled through the national grid has remained relatively flat in the last 10 years.
“The grid capacity has increased from just over 3000Mw to typically just over 4,000Mw today. Versus a 40,000Mw target by 2020 that the Federal Government had set pre-privatisation.”
Blackout as Nigeria’s electricity generation drops 93.5% to 273MW
‘No automatic renewal of licence’
On his part, the Minister of Power, Mr. Adebayo Adelabu expressed misgivings over the decision of the past government to embark on privatisation, noting that commercialisation would have been the best option.
Mr Adelabu stated that the licences granted to investors in the assets would not be automatically renewed until they prove that they have met the terms contained in the original licence.
According to him, “The question for everyone is: have we achieved the objectives of the privatisation on the scale of 0-100? I will say no.
“Which is why it is pertinent for all the players in the industry to come to a roundtable to discuss the reasons for the failures and steps to be taken to remedy this.”
He noted that the government ought to have commercialised the sector in 2013.
The Minister pointed out that “most countries throughout the world do not privatise their electricity supply value chain, from generation to transmission and distribution.
“But, bad enough that we have done this, how can we work around the current status to achieve our priorities and objectives? This is not a job for one person or entity but it requires collaboration from all players.”
Chief Adelabu warned that at the expiration of operational licences of the distribution companies, DisCos, renewals will not be automatic.
“Ten years down the line, the licences are expiring and it is now the time for renewals. Renewals are not automatic. Any of the privatised company that has not lived up to expectations will not have its licence renewed,” he stressed.
In his remarks, the Senate President, Godswill Akpabio pointed out that while the sector had been acknowledged as critical to the economic growth of the country, not much has been achieved.
Senator Akpabio who was represented by the Chairman of the Senate Committee on Power, Eyinaya Abaribe, noted that while some progress has been made, the objective of improving power supply to Nigerians has remained unmet.
He said the parliament was committed to backing the sector with laws that would create the best business environment for the sector, adding that an amendment of the 2023 Electricity Act was underway that would take into cognizance of the latest developments in the industry.
Earlier, the Chairman of, the Conference Organising Committee, Prof. Stephen Ogaji described the challenges facing the power sector as formidable.
Prof Ogaji pointed observed that “without a doubt, the energy sector is the heartbeat of any thriving economy, and the NESI Roundtable demonstrates our collective commitment to advancing this critical sector.
“We gather here today as representatives from various sectors — public and private, regulatory bodies, investors, technocrats, and visionaries — all driven by a shared purpose, which is to enhance and shape the trajectory of Nigeria’s energy future.”
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APC Launches Reps Primaries, Embraces All-Inclusive Screening Approach — Morka
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Abbas, Kalu, Ihonvbere, Doguwa, Faleke, Obasa, Amaewhule, others in race for tickets
Primaries to pick candidates of the All Progressives Congress (APC) for next year’s elections begin tomorrow.
Aspirants for House of Representatives tickets will take the first shots across the 360 constituencies.
As of last night, the party’s national secretariat was busy coordinating reports from screening centres, while appeal committees also sat to consider different cases as they arose.
“The process is tough, and the schedule is tight,” a member of the party’s National Working Committee (NWC) told The Nation.
The party assured its members that, despite the logistical difficulties, the process would proceed as planned.
Leading lights of the party, which controls an overwhelming majority in the Green Chamber, such as Speaker Abbas Tajudeen, Deputy Speaker Benjamin Kalu, House Leader Prof. Julius Ihonvbere, spokesman Akin Rotimi, long-standing member Ado Doguwa, Finance Committee Chairman James Abiodun Faleke, former minister Nkeiruka Onyejeocha, Chijioke Edoga and Leke Abejide, who defected from the African Democratic Congress (ADC), are among those seeking tickets to return.
Among those seeking a return to the House are Bimbo Daramola (Ekiti), Kafilat Ogbara (Lagos), Oluwole Oke (Osun) and Donald Ojogo (Ondo).
There are also high-profile lawmakers from state Houses of Assembly bidding to move to the House of Representatives.
These include Speakers Mudashiru Obasa (Lagos) and Martins Amaewhule (Rivers).
National Publicity Secretary Felix Morka said the date fixed for the intra-party selection is sacrosanct.
The screening of the contenders has set the stage for what is largely expected to be direct primaries and, in some cases, consensus arrangements.
According to the APC guidelines, direct primaries should be adopted where consensus agreements fail.
Sources said the panel cleared all aspirants from Lagos, Ondo, Ekiti, Enugu and Rivers states.
However, a source said members of the Appeal Committee were at the Treasures Suites in Abuja handling last-minute petitions arising from the screening exercise.
According to the source, governors still hold the ace, having been saddled by the party with negotiating the “mode of primary” best suited for their respective states.
A senior party official confirmed that the committee refused to bow to external interference.
He said despite intense lobbying and “pressure from opponents,” the screening panels opted for an all-inclusive approach.
The source added: “No aspirant was disqualified. I was part of the team that handled Lagos, Ondo, Ekiti, Enugu and Rivers states, and I am sure that all the aspirants were cleared.
“There was pressure to disqualify some, but the screening committee stood its ground.”
The party’s National Working Committee (NWC) reviewed the report of the screening committee on Tuesday and yesterday.
While the official results have not been formally gazetted, sources at the party’s headquarters confirmed that the reports have been ratified.
Already, the NWC has dispatched primary election committees to the states to liaise with governors for rancour-free shadow elections that will produce acceptable candidates.
A member of the NWC reiterated the party’s resolve to adhere to the revised schedule of activities and timetable.
He said: “We have done everything possible for the primaries to be held as scheduled.”
Emphasising that the timetable would not change, Morka said the clarification became necessary following misleading reports.
He said the primaries will be held as follows: senatorial, May 18; House of Assembly, May 20; governorship, May 21; and presidential, May 23.
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Breaking : Energy Commission DG Nabbed by EFCC Over Alleged N500bn Scam
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Operatives of the Economic and Financial Crimes Commission have arrested the Director-General of the Energy Commission of Nigeria, Dr. Mustapha Abdullahi, over alleged money laundering offences.
A source within the anti-graft agency, who spoke on condition of anonymity because he was not authorised to comment officially on the matter, disclosed on Wednesday that Abdullahi was arrested in Abuja and is currently being held in the custody of the commission.
According to the source, the investigation involves alleged fraud amounting to about N500 billion.
“We have arrested the Director-General of the Energy Commission of Nigeria, Dr. Mustapha Abdullahi, over alleged money laundering offences. He was arrested in Abuja and is currently in our custody. The amount involved is estimated at N500 billion,” the source said.
The commission is yet to issue an official statement regarding the arrest as investigations continue.
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Foreign Investors Drag Senator Fasuyi to EFCC Over Alleged $2.98 Million Fraud
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Senator Cyril Fasuyi, representing Ekiti North Senatorial District, has been dragged before the Economic and Financial Crimes Commission (EFCC) over an alleged fraud involving the sum of $2,980,535.00.
The petition, submitted by Mr. Nuel Wilson, West Africa Regional Representative of Integrated Packaging Systems FZCO (IPS Ingredis) and its Nigerian subsidiary, IPS Ingredis Integrated Systems Limited, accused Senator Fasuyi and his wife, Mrs. Elizabeth Adun Fasuyi, of conspiracy, fraudulent conversion, obtaining by false pretence, stealing, and diversion of foreign investment funds.
According to the petition, which was acknowledged by the EFCC on December 10, 2020, the Dubai-based company alleged that the senator and his wife, operating under the name Legacy Foods Limited, failed to remit payment for products supplied to them after several business transactions.
The petition stated that IPS Ingredis, a company registered in Dubai, United Arab Emirates, conducts the business of sales, supply, and distribution of raw materials across different countries, including Nigeria, through its local subsidiary based in Lagos State.
The complainant explained that the business relationship between both parties began in November 2015 after the suspects were introduced to the company by one of its Chinese customers. Following several meetings, the Fasuyis allegedly represented themselves as credible business partners interested in the company’s line of products.
Based on the agreement, the company reportedly supplied various raw materials, including corn starch, maltodextrin, shortening, maltose syrup, and other products to Legacy Foods Limited through multiple purchase orders.
The petition further alleged that goods worth over $9 million were supplied to the suspects during the course of the business relationship. However, the company claimed that after selling the products, the suspects allegedly refused to pay the outstanding sum of $2,980,535.00.
“Our clients supplied goods worth over $9,000,000.00 to the suspects. The suspects, after selling all the goods, refused to pay the sum of Two Million, Nine Hundred and Eighty Thousand, Five Hundred and Thirty Five United States Dollars worth of products already supplied,” part of the petition read.
The foreign investors also accused the suspects of allegedly diverting proceeds from the sales for personal use and benefits, despite repeated demands for payment.
According to the petition, investigations allegedly revealed that the products supplied had been sold and disposed of, while proceeds were allegedly converted for personal gains.
The complainant described the development as “a calculated attempt to dispossess foreign investors of their investment in Nigeria through fraudulent means.”
The petition also emphasized the need for Nigerian authorities to protect foreign investments and uphold the spirit of bilateral investment agreements between Nigeria and the United Arab Emirates.
Meanwhile, the petition named Mrs. Elizabeth Adun Fasuyi as a co-suspect in the matter. She was reportedly present in court alongside her husband at a point during proceedings but allegedly avoided arrest by operatives of the anti-graft agency.
Senator Cyril Fasuyi, representing Ekiti North Senatorial District, has been dragged before the Economic and Financial Crimes Commission (EFCC) over an alleged fraud involving the sum of $2,980,535.00.
The petition, submitted by Mr. Nuel Wilson, West Africa Regional Representative of Integrated Packaging Systems FZCO (IPS Ingredis) and its Nigerian subsidiary, IPS Ingredis Integrated Systems Limited, accused Senator Fasuyi and his wife, Mrs. Elizabeth Adun Fasuyi, of conspiracy, fraudulent conversion, obtaining by false pretence, stealing, and diversion of foreign investment funds.
According to the petition, which was acknowledged by the EFCC on December 10, 2020, the Dubai-based company alleged that the senator and his wife, operating under the name Legacy Foods Limited, failed to remit payment for products supplied to them after several business transactions.
The petition stated that IPS Ingredis, a company registered in Dubai, United Arab Emirates, conducts the business of sales, supply, and distribution of raw materials across different countries, including Nigeria, through its local subsidiary based in Lagos State.
The complainant explained that the business relationship between both parties began in November 2015 after the suspects were introduced to the company by one of its Chinese customers. Following several meetings, the Fasuyis allegedly represented themselves as credible business partners interested in the company’s line of products.
Based on the agreement, the company reportedly supplied various raw materials, including corn starch, maltodextrin, shortening, maltose syrup, and other products to Legacy Foods Limited through multiple purchase orders.
The petition further alleged that goods worth over $9 million were supplied to the suspects during the course of the business relationship. However, the company claimed that after selling the products, the suspects allegedly refused to pay the outstanding sum of $2,980,535.00.
“Our clients supplied goods worth over $9,000,000.00 to the suspects. The suspects, after selling all the goods, refused to pay the sum of Two Million, Nine Hundred and Eighty Thousand, Five Hundred and Thirty Five United States Dollars worth of products already supplied,” part of the petition read.
The foreign investors also accused the suspects of allegedly diverting proceeds from the sales for personal use and benefits, despite repeated demands for payment.
According to the petition, investigations allegedly revealed that the products supplied had been sold and disposed of, while proceeds were allegedly converted for personal gains.
The complainant described the development as “a calculated attempt to dispossess foreign investors of their investment in Nigeria through fraudulent means.”
The petition also emphasized the need for Nigerian authorities to protect foreign investments and uphold the spirit of bilateral investment agreements between Nigeria and the United Arab Emirates.
Meanwhile, the petition named Mrs. Elizabeth Adun Fasuyi as a co-suspect in the matter. She was reportedly present in court alongside her husband at a point during proceedings but allegedly avoided arrest by operatives of the anti-graft agency.
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