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FG to DisCos: You have failed, your days numbered
•Power Minister Mamman
The Federal Government, on Wednesday, declared that Distribution Companies (DisCos) have failed in distributing power across the country.
This is even as it has declared it will no longer subside the DisCos noting that despite doling out about N1.7 trillion to the companies in three years, they were only able to distribute 3,000mw out of about 10,000mw generated.
The Minister of Power, Saleh Mamman, made this closure at the end of the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari.
Mamman who briefed alongside his colleagues from Ministries of Information and Culture, Water Resources, Industry Trade and Investment explained that while the DisCos were collecting the 3,000mw, they were only paying for 1,000mw.
The minister said the DisCos must show that they have the capacity to distribute power to Nigerians or surrender for more competent companies to be engaged.
Mamman said the government cannot continue to subside the companies without commensurate result.
The minister further disclosed that he presented the report before the council to decide immediately.
Recall that the governor of Kaduna State, Nasir el-Rufai, at the end of last month’s National Economic Council meeting disclosed that the Federal Government has spent N1.7 trillion on electricity in the last three years.
The governor who is the head of the ad-hoc committee on power had said: “What we have agreed on is that there are fundamental problems in the electronic supply industry, and that you cannot privatise an industry and then over three years since privatisation, you pump in N1.7 trillion of government into it. That is not privatisation.
“The Federal Government has supported the electricity sector with N1.7 trillion in the last three years and this is not sustainable. So, solutions must be found. Those solutions are not going to be nice. They may be painful, but the only way to solve the structural problems in the industry is to take some very difficult decisions.”
Giving details of what transpired at the council meeting, Mamman said: “We presented achievements right from the day we took the oath of office to date.
“We want to tell Nigerians what we achieved in the value chains. Nigeria can generate up to 13,000 megawatts of electricity but we cannot transmit all. So today, we presented to the council the solution to the problem of our generation. It is mainly distribution.
“We can transmit, we can generate 13,000 megawatts, we transmit 7,000 megawatts but can only distribute 3,000. There is a lot of work to be done in transmission companies and the government is now willing to take up the matter immediately.”
Asked what exactly the council has revolved to do, the minister said: “What I want to say is that most of the problem we are facing in this country that we cannot get electricity supplied adequately and efficiently is because we have a problem in distribution.
“Generation, no more problem. We can generate up to 13,006 megawatts but the transmission, those who are taking the electricity supply can only take 7,000 megawatts, even at that they are not taking the whole 7,000 megawatts but only 4,500 megawatts and then send to distribution, the distribution, in turn, receives only 3,000 megawatts. Because of the technical and commercial reasons, they cannot contain the whole power that has been generated.
“So, we have to correct the infrastructure. That is why I said that today, I submitted my observation to council and I believe the government is on it.
“One of the things I will tell you is that government has signed a memorandum of understanding with the German company, Siemen. They are to align between distribution and transmission and also generation.
“So that at the end of the day if we generate 13,000 megawatts, transmission will take the whole 13,000 and will distribute the same, that way Nigerians will be happy and everyone will have 24/7 electricity supply.”
On what will become of the DisCos, Mamman said: “The DisCos are the ones manning the distribution, that is why I have submitted my observations to the government; it is left for the government to decide.
“We just have to sit and see whether they are capable of – if they have the technical know-how because most of the problems we are having today are technical loss and commercial loss.
“They will give you power and may not collect your money or they will collect the money and pocket it, or they may send power and you may not have good sub-station that may collect this power and distribute it to customers. This has been our major problem and it is the responsibility of the DisCos to take care of that end.”
On what will now happen to the several financial interventions the government has made, Mamman said: “That is what we are saying, the government cannot continue subsiding because what they doing is that they collect 3,000 megawatts and pay for only 1,000 megawatts, that is 15 percent of what they are collecting; so government is the one completing the payment.
“So we cannot continue like that. So if they are ready to continue, fine but if they are not ready to continue maybe they should give way to whoever that is ready to come and invest. So, we are asking government to review and see if they are capable. Fine, but if they are not capable they should give way.”
On how the government will address the debts between DisCos and GenCos, between GenCos and gas producers, he said: “Well, we have come up with a plan, that issue of willing buyer, willing seller. You know there is the ardent capacity of generating electricity that we cannot pick at all.
“So we are now asking the GenCos…you can imagine we are only paying them 15 percent out of 100 so where do we take the remaining 85 percent? Even if Embet is collecting 100 percent, gas alone is taking 60 percent, only 15 percent is used for their overheads.
“So if they cannot week outside the agreement with the Embet you can see how they are struggling to get their money back. Embet buys electricity from DisCos, supplies to GenCos and collect money from DisCos and pay the GenCos, that is why we have the gaps and that is why we have to do something to correct these gaps. It is now government’s decision.”
Meanwhile, the FEC meeting has approved additional N6.9billion for the completion of the Tada Shonga Irrigation Project.
The project is located in Shonga, Kwara State.
The Minister of Water Resources, Mr Suleiman Adamu explained that the additional approval brought the total project cost to N10.18 billion.
The minister explained that the project was first awarded in 2010 but was later abandoned due to a lack of funds.
He said the decision to do augmentation and variation on the project and complete was in line with the Buhari regime’s stance to complete viable projects previously awarded.
The minster stated that the variation increased the size of the project from 1,500 hectares to 2,300 hectares of irrigation.
He added: “For that purpose, we sought for the augmentation and variation in the sum of N6.9 billion, raising the project from the original sum of N3.26 billion to N10.18 billion, with the completion period of 36 months.”
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.
Engr. Marcus Adedini, Aspirant for Ife Federal Constituency, heartily congratulate the distinguished Ife-born retired military officer, Major General Adeyinka FAMADEWA (Rtd), on his well-deserved appointment as Special Adviser on Homeland Security by President Bola Ahmed Tinubu.
This prestigious appointment is a clear recognition of your years of meritorious service, professionalism, discipline, and unwavering commitment to national development and security.
Your appointment has brought immense pride, honour, and joy to the people of Ife Kingdom, as it further reflects the excellence and capacity of our sons and daughters who continue to contribute meaningfully to nation-building. Your outstanding record of leadership and dedication to service remains a great source of inspiration to many across the country.
As you assume this important national assignment, I am confident that your wealth of experience and strategic leadership will contribute significantly to strengthening peace, stability, and homeland security in Nigeria.
I pray that God grants you wisdom, strength, and greater success in this new office. Congratulations once again, Sir.
Signed:
Engr. Marcus Adedini
Aspirant, Ife Federal Constituency
The Permanent Chairman of the Southern Nigerian Traditional Rulers Council (SNTRC), Arole Oodua Olofin Adimula and the Natural Head of the Oduduwa race worldwide, the Ooni of Ife, Ooni Adeyeye Enitan Ogunwusi, CFR, Ojaja II, has celebrated renowned businessman and illustrious son of Ile-Ife, Prince Eludipo Elusanmi Eludoyin, on the occasion of his 78th birthday.
In a statement on Monday released by the Director of Media and Public Affairs, Ooni’s Palace, Otunba Moses Olafare, the Ooni who is also the Permanent Co-chairman of the National Council of Traditional Rulers of Nigeria (NCTRN) described Prince Eludoyin as one of the shining lights of Ile-Ife whose life has remained dedicated to hard work, service to humanity and the growth of Nigeria’s economy.
The Ooni praised the Ife-born business mogul for his remarkable achievements in the international business community, noting that his contributions through Paragon Holdings Limited and other business platforms have created employment opportunities for thousands of people while also supporting meaningful development projects within and outside Nigeria.
Ooni Ogunwusi said Prince Eludoyin’s impact goes beyond business, describing him as a man who has consistently used his success to uplift people and support communities through various philanthropic activities.
According to the Ooni, the celebrant’s humility, wisdom and commitment to humanity have earned him respect across different sectors both in Nigeria and abroad.
The royal father also acknowledged Prince Eludoyin’s longstanding relationship with President Bola Ahmed Tinubu, describing the celebrant as a trusted confidant and loyal friend whose influence and experience continue to contribute positively to national development.
“Prince Eludoyin is a pride to Ile-Ife and the Yoruba race. His life story is one of vision, resilience and service. At 78, he remains a source of inspiration to younger generations who desire success built on integrity, excellence and compassion,” the Ooni stated.
The Ooni prayed for more years of sound health, peace, strength and continued accomplishments for the elder statesman as he continues to serve humanity and contribute to the progress of society.
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