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CBN, 11 DISCOs Summoned Over Alleged Loan Mismanagement

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The Public Accounts Committee of the House of Representatives has summoned the Central Bank of Nigeria (CBN) and 11 Electricity Distribution Companies (DISCOs) to address alleged mismanagement concerning US$321 million and N18.2 billion loans.

 

The funds were intended for projects focused on expediting transmission and distribution interface, lines, and substation developments.

 

Chairman Rep. Bamidele Salam issued the summons while Engr. Sule Abdulaziz, Managing Director of the Transmission Company of Nigeria (TCN), appeared before the committee in Abuja.

 

The entities are scheduled to appear for the investigation on November 8, following a petition raising concerns about the alleged misallocation of funds disbursed to DISCOs by the CBN at the TCN’s request.

 

Salam  requested comprehensive details on loan disbursements, procurement procedures, DISCOs’ participation in projects, current project status, and the repayment structure from the loan beneficiaries.

 

Salam underscored the significance of public institutions adhering to both legal standards and international best practices, emphasizing the need for prudent fund utilization.

 

Abdulaziz clarified to the Committee that the CBN directly transferred funds to DISCOs for project execution, intending to repay the loans using TCN’s revenue.

 

The committee, however, expressed concerns about this repayment arrangement.

 

Abdulaziz highlighted a gap in the electricity sector, acknowledging complaints from distribution companies about insufficient supply from TCN.

 

He emphasized the necessity to invest in crucial projects for improved electricity distribution.

 

Financial institutions and regulatory bodies, including CBN and NERC, were involved in financing and oversight. TCN played a beneficiary role, while DISCOs were tasked with project execution.

 

Abdulaziz specified that loan repayments were planned to be sourced from TCN’s revenue, with an amortization structure on a monthly basis.

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Gov Bassey Otu Increases Minimum Wage

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Cross River State Governor Bassey Otu has announced a new minimum monthly wage of N40,000 for the state’s lowest-paid workers, up from N30,000.

The governor made this declaration during his address to workers at the UJ Esuene Stadium in Calabar on Workers’ Day.

According to Otu, the wage increase is a response to current economic conditions and the limited federal allocations received by the state, rather than a sentimental decision.

Despite acknowledging the state’s industrial output as “very poor” at 5%, the governor expressed his administration’s appreciation for the workers’ efforts.

He said, “Government considers its workforce as the driver of lofty projects and programmes for the common good of the people. Workers in the State are always held in high esteem to achieve good results, which reason  prompt payment of salary and pension has been up to date.”

“The State Government is presently on the verge of concluding necessary arrangements for the staggered payment of outstanding gratuity to its retired workers. I therefore sue for a little patience from the pensioners in this regard.”

Additionally, the Organised Labour in Cross River State has criticized the state government, alleging neglect and deceit.

They are demanding open recruitment to fill vacant positions with qualified youths.

According to Comrade Monday Ogolodom, Chairman of the Trade Union Congress (TUC), the government failed to deliver on its promise to clear the backlog of gratuities owed to senior citizens since 2013, deceiving them.

Addressing workers, Ogolodom said, “Payment of gratuity in the state has become a mirage. I recall on the 4 of October, 2023, during the swearing-in of the Head of Service, Innocent Eteng, His Excellency, the  Governor made a very welcoming, sweet and promising speech, saying “before the end of December, 2023 all backlog of Gratuity in the state shall be cleared”.

“Today is 1″ May 2024, 4 (four) months after, nothing has started”, adding that this has portrayed the governor in bad light and appealed to him to set up machinery towards actualizing the promise  as some of our elder statesmen and women were dying due to lack of funds for medications.

He claims that bribery for promotion has become widespread, which is demotivating for hardworking and qualified employees.

He also expressed frustration with the prolonged verification exercise aimed at eliminating ghost workers, which has delayed long-overdue promotions for deserving workers.

Furthermore, Ogolodom criticized the government’s secretive recruitment practices, urging them to conduct open and official recruitment exercises instead.

 

 

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Reverse Tariff Hike In One Week, TUC Tells NERC

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Festus Osifo, head of the Trade Union Congress, didn’t mince words during his address at the 2024 Workers’ Day event in Abuja on Wednesday.

Osifo slammed the high electricity tariffs burdening Nigerians, labeling them unethical.

Urging immediate action, he called upon the Nigerian Electricity Regulatory Commission to reverse the tariff hike within a week.

Osifo underscored the severe impact of inconsistent power supply on the nation’s economic growth, stressing the urgency of effective energy management to prevent further setbacks.

He said, “One of the pivotal factors constraining our nation is our glaring incompetence in managing this sector for the collective welfare of our citizens.

“Power, regardless of its source, remains paramount in kickstarting any economy, while oil and gas are indispensable for robust energy success in every country.”

He emphasized that despite over a decade passing since the privatization of the power sector, its challenges persist unchanged.

He said “The reasons are glaringly evident. As long as those who sold the companies remain the buyers, Nigerians will continue to face formidable challenges in the power sector.

“It is unethical to force Nigerians to pay higher tariffs for non-existent electricity. Estimated billing is an extortion and a daylight robbery against Nigerians.

Recall that the Nigerian Electricity Regulatory Commission (NERC) greenlit a significant increase in electricity tariffs for customers falling under the Band A classification.

Musliu Oseni, the Vice Chairman of NERC, confirmed that this adjustment would raise the rate from the current N66 per kilowatt-hour to N225 per kilowatt-hour.

Notably, customers categorized under Band A typically receive 20 hours of electricity supply daily.

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Olatunji’s Abduction: NPO, BON Intervention, Ombudsman To Resolve

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The Nigerian Press Organisation (NPO), the Broadcasting Organisation of Nigeria (BON) and Civil Society Partners (CSP), have revealed that the abduction of the General Editor of FirstNews newspapers, Segun Olatunji, has been referred to the national ombudsman for adjudication.

According to a statement jointly signed by President, Newspapers Proprietors Association of Nigeria (NPAN)/President, Nigerian Press Organisation (NPO), Mal. Kabiru A. Yusuf, and elected officers of the other media bodies in Nigeria, following pressure from the concerned groups, the Defence Intelligence Agency (DIA), requested a meeting with the NPO, BON and the CSP on April 14, 2024.

The statement disclosed that the military authorities said that they acted to forestall a potential threat to national security and would have reported the matter to the National Media Complaints Commission (NMCC) – The National Media Ombudsman – if they had been aware of its existence.

After considering this disposition towards the Ombudsman, the NPO, BON and the CSP have decided after reviewing the outcome of the April 14 meeting, to refer the matter to the Ombudsman for adjudication.

The report of the Ombudsman process would be made public.

We hope that the parties concerned will seize this opportunity to settle the matter in the interest of law, order and respect for the provisions of Nigeria’s constitution.

Besides, the specific issue of Olatunji, the group condemns the increasing militarisation of the civic space, which has seen increasing use of excessive force by soldiers in matters that would have ordinarily be handled by the police.

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