BREAKING NEWS, Power
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THE Nigerian government has warned electricity distributing companies against blackmailing it because of the debt owed them by its ministries, agencies and parastatals including the military and police
| By Anayo Ezugwu | Dec 5, 2016 @ 01:00 GMT |
Babatunde Fashola, minister of power, works and housing, has warned electricity distribution companies, Discos, in Nigeria, to stop blackmailing the federal government. The followed the advertorials the electricity distribution companies placed in the media about federal government ministries, departments and agencies, MDAs, which owe them billions of naira.
According to Fashola, the firms should show how much the government’s MDAs owe each of the power firms instead of hiding under an umbrella association to claim that they are being owed over N100 billion.
Fashola, who spoke at the monthly power sector meeting in Ikot Ekpene, Akwa Ibom State, recently, said the federal government didn’t handover the default Power Holding Company of Nigeria, PHCN, to the association but to Discos. “It is important to remind all of us that the privatisation exercise that transferred the distribution companies was not held as a contract with an association. It was between Nigeria and the distribution companies.
“So, while I respect the right of an association as the constitution guarantees the freedom of association, the federal government will not pay over N100 billion to an association. That is not how to solve it. An association can’t own those debts. Every Disco knows how much power it supplied. We won’t pay estimates. The figure must remain clear in naira and kobo terms. And we will do our work. Therefore, I think that the adverts that the Discos issued should also have conveyed information to the Nigerian public about how many of them have supplied details of their audited accounts for the last three years. And we have been asking them to provide that.”
The minister said he opened an online platform for the Discos to send their debt claims but as of the November 4, 2016, deadline, none of the firms had complied to provide the required information for verification before payment.
“If the Discos want payment, as I have said, we will pay. But you have to prove the debt too and you have to prove the quantum. Each Disco will have to prove to us how much is being owed it. If you want to stash it all together under a gross sum or under an association; that is your choice. But we will pay to each Disco what each Disco proves as its liability. We will not pay an association,” Fashola said.
The Association of Nigerian Electricity Distributors, ANED, has been placing advertorials asking the MDAs to clear the debt they owe the power firms. The figure, it said, comprised N39.1 billion pre-privatisation of electricity assets and N39.5 post-privatisations. Also thrown into the debt calculation is the outstanding interest of N15 billion, which the Bulk Trader charges Discos for late payment of their electricity bills, which was worsened by the non-settlement of electricity bills by consumers as and when due.
Figures from the Discos have shown that as at April 1, 2016, the various MDAs of the federal and state governments still owed them a total of N78, 676,366,684.22. Also, on this inglorious list of debtors to the Discos are the various military and paramilitary formations, as well as the Nigerian Police stations scattered across the country which actually owes a larger chunk of the debt of N50, 048, 702, 696.3 or 64 percent.
The breakdown of the debts owed by the military, police and paramilitary formations to the Discos include Abuja – N3,805,039,794.87, N371,945,359.84, N11,800,433.36 respectively; Benin – N1,837,363,099.47, N120,721,997.61, N2,713,562.91; Eko – N3,689,271,605.46, N158,315,423.73 and N4,558,968.69 respectively; Enugu – N897,346,450.10, N73,865,841.93 and N34,826,750.72; Ibadan – N2,527,003,645.51, N168,373,253.80 and N7,581,718.90; Ikeja – N2,781,453,670.00, N648,224,118.00 respectively; and Jos – N1,623,369,157.17, N649,243,065.99 and N11,038,786.04.
Also, the three formations owe Kaduna Disco N2,053,947,838.95, N144,782,630.10, and N22,835,595.16; Kano – N619,847,824.60, N36,720,871.72; Port Harcourt – N1,710,382,864.36, N72,780,889.47, N11,931,786.31 and Yola – N935,990,027.02, N167,970,684.54 respectively. They all summed up to the outstanding N50, 048, 702, 696.3.
Other federal, states and local governments MDAs also owe the Discos -N4,909,382,489.92; N700,831,976.07 and N574,296,266.39, while the Prisons, Customs and Immigration owe the Discos N533,600,628.01; N207,621,125.66 and N23,430,265.71, respectively.
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