Still on FG’s bailout for DISCOs

The federal government has agreed to provide a sum of N37 billion to address the hurdles being experienced by the distribution companies (DISCOs) in the supply of electricity. This was disclosed recently by the Minister of Power, Works and Housing, Mr. Raji Fashola (SAN), during the 21st Power Sector Reform meeting held in Asaba, Delta state.
In his opening remarks, the minister disclosed that over $64.63million electricity debt owed by the Benin Republic and Niger Republic has been recovered by the Federal Government of Nigeria. Although the minister admitted that the issue of estimated billing and provision of meters remained a major challenge. He also said that he awaits regulation from the National Electricity Regulation Commission (NERC) to open up meter supply business.
The minister did not tell Nigerians where exactly the bailout funds for DISCOs for the purchase of meters are coming from? Is it from the debt recovered from the Niger and Benin Republic’s or from the Central Bank of Nigeria, as usual? Since Fashola is keen on giving the so-called bail out to the DISCOs, he should please tell us the source of the funds, so that we can update our records for reference purpose.
In my letter inter-alia, to the minister, I advised him against giving any bail out for the purchase of meters. It is the sole responsibility of the DISCOs to provide such to Nigerians except if the minister wants us to believe that he has interest in one of the DISCOs or rather, in one of the companies providing the meters. Meanwhile, the minister has not said anything on the reinforcement of the distribution lines, as I also emphasized in the write up.
At this juncture, I will advise the minister together with a team of engineers to carry out a thorough field assessment of our entire 33kv distribution network across the country.
The 11kv network is even worse. I have said it times without number, and to those who care to listen, that the DISCOs have no financial wherewithal to carry out the maintenance. Except the federal government which has 40% equity intervenes, the electricity generated from the generators cannot get to the consumers. Even if the federal government brings in new investors as proposed, without doing the needful in the distribution network, nothing tangible will be achieved.
Let me use this opportunity to call on the Director General of Bureau for Public Enterprise (BPE) to please, and as a matter of urgency, fast-track the payment of the “exit entitlements” of ex-PHCN staff and other related issues. You may recall that on September 14, 2017, the National Union of Electricity Employees (NUEE) picketed your office to press home their legitimate, legal demands. This necessitated the marathon meeting held with the Union on 11th October, 2017 with the Senior Staff Association of Electricity and Allied Companies (SSAEAC) on 17th October, 2017.
Consequently, a letter was released from your office, dated October 24, 2017 which was signed by your humble self, on the outcome of the meetings held with the above unions, signifying the need to settle the outstanding of the forcefully dis-engaged staff and the retirees. Mr. DG, (BPE), please, for God’s sake, plead with whoever is holding the funds, including the “powerful”, Minister of Finance, Mrs. Kemi Adeosun, to see reason to pay these hapless, shortchanged Nigerians. It may interest you to note that many have died without collecting a dime, some are sick presently, others are dead living.
You promised by the end of November, something will be done. Remember, we are taking you for your words. Although, you mentioned the issue of Treasury Single Account (TSA), for how long are they going to wait! TSA should not be used for some one’s wickedness and inefficiency.
Finally, it is high time the federal government settled the issue once and for all. You cannot be giving unnecessary bailout to the rich, while the poor that are been owed and dying en-masse. “This is akin to robbing Peter to pay Paul”. Must everybody gather in Abuja before what is right is done? Sometimes, my sympathy goes to the minister because, the ministry is too big for one man to handle, coupled with the fact, he has no engineering/science background. Therefore, he has to depend on input(s) from ‘political engineers/jobbers’ for advice. So, I think we need to shade-load in the ministry to achieve optimal performance.

U.S. Ladan (Snr),
Abuja. [email protected]

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