The new increased electricity tariff rolled out on February 1 by the Nigerian Electricity Regulatory Commission, NERC, was illegally imposed on consumers, an icirnigeria.org investigation has shown.
The agency implemented the new tariff, which increased charges for electricity consumption by 55 per cent to 65 per cent, in defiance of the law setting it up.
The federal government may be compelled to pay back to Nigerians the increased rate they have paid to electricity supply since February 1 when the new tariff regime took effect.
Specifically, the announcement of the new tariffs breached Section 76 sub sections 6, 7 and 9 of the Electric Power Sector Reform Act of 2005.
Section 76 (6) requires the NERC to gazette any review of existing tariff methodology before it comes into effect.
The Act states: “Prior to approving a tariff methodology, the Commission shall give notice in the official Gazette, and in one or more newspapers with wide circulation, of the proposed establishment of a tariff methodology, indicating the period within which objections or representations in connection with the same may be made to the Commission.”
By that section, the regulatory agency ought not only to have given notice in a gazette but also in newspapers with wide circulation and even given room for the public to make comments and objections before the new charges could take effect.
In Section 76 (7), the law further reinforces the need for wide consultations before such new tariffs can take effect.
Section 76 (7) envisages that in preparing a new tariff methodology, the agency would “(a) consider representations made by license applicants, other licensees, consumers, eligible consumers, consumer associations, associations of eligible consumers and such other persons as it consider necessary or desirable.”
Subsection 7 “(b) evidence, information or advice from any person who, in the Commission’s opinion possesses expert knowledge which is relevant to the preparation of the methodology.”
Furthermore, Section 76 (9) states: “If it appears to the Commission that a tariff methodology should be changed, the Commission shall give notice in the Official Gazette, and in one or more newspapers with wide circulation of the proposal to change the methodology, indicating the period within which representations in connection with the proposal may be made”.
Of all these legal requirements, the only one fully complied with by NERC was that it announced the new tariff in the newspaper.
It did not give any notice in a gazette as spelt out by the Act. Furthermore, from the outcry and opposition which the imposition of the new tariff generated among the general public, including the Transmission Company of Nigeria, TCN, Manufacturers’ Association of Nigeria, MAN, and the House of Representatives Committee on Power, which passed a resolution barring NERC from increasing tariff, it is obvious that the agency did not do enough consultations.
The NERC announced the new tariff methodology in December, 2015 with increased charges for electricity consumption, although it removed a controversial monthly fixed charge on retail consumption.
Announcing the new tariff, then chairman of NERC, Sam Amadi, said that the new Multi Year Tariff Order (MYTO) was for a 10-year period between January 1, 2015 and December 31, 2024.
But it effectively took off on February 1, 2016.
With the new tariff, consumers under the residential classification (R2) in Abuja would have to pay N24.30 per kwh instead of 14.70 per kwh for electricity, an increase of N9.60 or 65 per cent, although they would no longer pay the fixed charge of N702.
Customers under Commercial classification (C1) had their tariff increased to N36.65 per kwh from N23.61 per kwh, a difference of N13.04 or 55 per cent.
In the same vein, residential consumers are paying more in Eko (N10), Ikeja (N8), Kaduna (N11.05), Benin (N9.26) and other electricity distribution areas.
Organised Labour kicked against the new tariff regime as soon as it was announced with the President of the Nigeria Labour Congress, Ayuba Wabba, saying it is a rip off.
“Congress considers as illegal, unfair, unjustifiable and a further exploitation of the already exploited Nigerians, the 45 per cent increase in electricity,” the labour leader declared, threatening that workers would be called out on a nationwide protest to force a reversal.
The Manufacturers Association of Nigeria, MAN, also rejected the new tariffs and said that it would fight it in court.
MAN president, Peter Jacob, expressed surprise that NERC went ahead to introduce the new tariff, observing that there is a subsisting court injunction restraining the agency from imposing the tariffs.
The icirnigeria.org learnt that a meeting called by NERC’s acting chairman, Anthony Akah, with the MAN management to explain the new tariffs, was rebuffed as members of the organisation insisted that they would not discuss a matter that is before the courts.
When our reporter spoke to MAN’s director of communications, Israel Osadipe, last week Wednesday, he said that the association was still opposed to the tariff and had not changed its position because the case is in court.
He added, however, that members of MAN were having discussions “at an informal level” with stakeholders, including NERC, about the matter.
The House of Representative too stood stoutly in opposition against the new tariffs and passed a resolution directing NERC not to go ahead with the new charges until it concluded investigations into the activities of the commission and distribution companies, Discos.
After the tariffs took effect, the House Committee on Power invited the NERC management to explain why its directives were flouted.
It was gathered that the regulatory agency has since explained its stand to the legislative House, telling members that it was doing exactly what the National Assembly set it up to do.
In defence of the NERC, a source told this website that the agency had, indeed done its work which is to send the new tariff regime to the office of the Attorney General and Minister of Justice whose responsibility it is to gazette the information.
“NERC has done its bit. When the need for a review exits, we consult with all stakeholders and then come up with new tariffs. We then send the tariff to the Ministry of Justice for them to gazette. We did that since the early in the year,” the source, who does not want to be named, said.
However, the Director of Press in the office Ministry of Justice, Charles Nwodo, said that the impression given by the NERC source was wrong and that it is not the responsibility of the ministry to gazette anything for government agencies.
“The fact is that if they are going to gaztte it (the new tariffs), it is the government press that will gazette it. It is the responsibility of the Government Press. The Ministry of Justice is to give approval. The process is that they send their proposal, it is vetted by the Ministry of Justice and sent back to them for onward transmission to the Government Press. It is the Federal Government Press that will gazette it.
Asked if the ministry had received the new tariffs from the NERC for approval before being sent to the Government Press for vetting, Nwodo said he was not aware that any tariffs sent to the ministry for approval.
He asked for time to find out if the ministry ever received such a request from the electricity regulatory agency but had not done so until the time of going to press.
Premium Times
Wednesday, March 30, 2016
Video - Nigeria puts restriction on cattle trade to curb Boko Haram's income
The Nigerian government is restricting the movement of cattle in the north east.
The armed group Boko Haram has been stealing livestock and using the proceeds to fund its attacks.
Oil pipeline explosion kills three in Bayelsa, Nigeria
The explosion of a crude oil pipeline operated by Eni's wholly owned subsidiary Nigeria Agip Oil Company (NAOC) in Bayelsa has killed three people and injured seven.
The blast is believed to have occurred during repair work on the oil pipeline in Nigeria's southern Delta region.
Bodies were recovered after the fire was brought under control.
Those dead were maintenance workers who were working on the oil pipeline when it caught fire.
National Oil Spill Detection and Response Agency director general Peter Idabor told media sources the accident occurred as safety procedures had been breached, while carrying out repair works.
Idabor said: "I am going to report the matter officially to the minister of environment today."
The news follows attacks on the Nigerian Agip Oil Company's crude oil pipelines in Bayelsa by suspected militants in February.
The attacks were made after an arrest warrant was issued in January against former militant leader Government Ekpemupolo, also known as Tompolo.
Hydrocarbons Technology
The blast is believed to have occurred during repair work on the oil pipeline in Nigeria's southern Delta region.
Bodies were recovered after the fire was brought under control.
Those dead were maintenance workers who were working on the oil pipeline when it caught fire.
National Oil Spill Detection and Response Agency director general Peter Idabor told media sources the accident occurred as safety procedures had been breached, while carrying out repair works.
Idabor said: "I am going to report the matter officially to the minister of environment today."
The news follows attacks on the Nigerian Agip Oil Company's crude oil pipelines in Bayelsa by suspected militants in February.
The attacks were made after an arrest warrant was issued in January against former militant leader Government Ekpemupolo, also known as Tompolo.
Hydrocarbons Technology
Tuesday, March 29, 2016
Kidnapped Nigerian Colonel Samaila Inusa found dead
The Nigerian Army on Tuesday said its officer kidnapped on Sunday has been killed by his abductors.
“The Nigerian Army wishes to regrettably inform the public that Colonel Samaila Inusa, who was kidnapped on Sunday 27th March 2016, was found dead today at about 6.00pm,” spokesperson for the Army, Sani Usman, said in a statement.
“Preliminary investigation revealed that most likely the late senior officer was killed same day he was kidnapped by his abductors. This is because the body was found already decomposing around Ajyaita village off Eastern Bypass Kaduna, Kaduna State.
“Arrangements are in progress to move the body to 44 Nigerian Army Reference Hospital, Kaduna. May His soul rest in peace, Amen."
“We wish to state in unmistakeable terms that whoever is behind his abduction and murder would be fished out to face the full wrath of the law.”
Mr. Inusa, a colonel, was seized in his Mercedes-Benz car by gunmen around Kamazo, along Kaduna Refinery Road, in Chikun local government area of Kaduna State on Sunday.
A statement by the 1 Division of the Army had said “the abductors dropped off Colonel Inusa’s wife and left with him in his car. The car headed towards Abuja.”
On Sunday, the Army offered a N500,000 reward for anyone with useful information that could lead to the rescue of Mr. Inusa.
The following day, army authorities raised the reward offer to one million naira, promising to give adequate protection to anyone who provide useful information, and that such tip-off would be treated with utmost confidentiality.
There were reports in Thisday newspaper on Sunday quoting an intelligence officer as saying the abduction of the officer might be a revenge mission by the Shiite Islamic sect against the Army over the deadly clash with the group in Zaria last year.
But the group swiftly responded, denying responsibility for the abduction of the Colonel.
In a statement on Monday by Ibrahim Musa, the President, Media Forum of the group, said the report linking the Shiites to the abduction was “false, unsubstantiated and mischievous claim, that looks more like a planned operation aimed at painting the Islamic Movement in Nigeria (IMN) black.”
Mr. Musa added, “We wish to categorically state here that the Islamic Movement in Nigeria under the leadership of His Eminence, Sheikh Ibraheem Zakzaky has never, is not and will never engage in any form of crime to meet any of its objectives. Crime and criminal activities are fundamentally sinful and are not in our character.
“The Islamic Movement knows that due to official administrative ineptitude and official negligence of constituted authority, a lot of crimes including kidnapping are prevalent in the country.”
Premium Times
“The Nigerian Army wishes to regrettably inform the public that Colonel Samaila Inusa, who was kidnapped on Sunday 27th March 2016, was found dead today at about 6.00pm,” spokesperson for the Army, Sani Usman, said in a statement.
“Preliminary investigation revealed that most likely the late senior officer was killed same day he was kidnapped by his abductors. This is because the body was found already decomposing around Ajyaita village off Eastern Bypass Kaduna, Kaduna State.
“Arrangements are in progress to move the body to 44 Nigerian Army Reference Hospital, Kaduna. May His soul rest in peace, Amen."
“We wish to state in unmistakeable terms that whoever is behind his abduction and murder would be fished out to face the full wrath of the law.”
Mr. Inusa, a colonel, was seized in his Mercedes-Benz car by gunmen around Kamazo, along Kaduna Refinery Road, in Chikun local government area of Kaduna State on Sunday.
A statement by the 1 Division of the Army had said “the abductors dropped off Colonel Inusa’s wife and left with him in his car. The car headed towards Abuja.”
On Sunday, the Army offered a N500,000 reward for anyone with useful information that could lead to the rescue of Mr. Inusa.
The following day, army authorities raised the reward offer to one million naira, promising to give adequate protection to anyone who provide useful information, and that such tip-off would be treated with utmost confidentiality.
There were reports in Thisday newspaper on Sunday quoting an intelligence officer as saying the abduction of the officer might be a revenge mission by the Shiite Islamic sect against the Army over the deadly clash with the group in Zaria last year.
But the group swiftly responded, denying responsibility for the abduction of the Colonel.
In a statement on Monday by Ibrahim Musa, the President, Media Forum of the group, said the report linking the Shiites to the abduction was “false, unsubstantiated and mischievous claim, that looks more like a planned operation aimed at painting the Islamic Movement in Nigeria (IMN) black.”
Mr. Musa added, “We wish to categorically state here that the Islamic Movement in Nigeria under the leadership of His Eminence, Sheikh Ibraheem Zakzaky has never, is not and will never engage in any form of crime to meet any of its objectives. Crime and criminal activities are fundamentally sinful and are not in our character.
“The Islamic Movement knows that due to official administrative ineptitude and official negligence of constituted authority, a lot of crimes including kidnapping are prevalent in the country.”
Premium Times
Nigeria Super Eagles fail to qualify for AFCON 2017 after defeat to Egypt
Nigeria have failed to qualify for the 2017 Africa Cup of Nations after falling to a 1-0 defeat in Egypt in their Group G match on Tuesday.
With just one game remaining and only the group winners to qualify, Nigeria cannot make up their five-point deficit to table-toppers Egypt.
Ramadan Sobhy's 65th-minute winner puts Egypt on the verge of qualification.
Egypt face Tanzania in June and will book their place in Gabon with any result better than a 3-0 defeat.
Nigeria won the Nations Cup in 2013 but have now suffered back-to-back eliminations in qualifying.
They threw everything forward to find an equaliser on Tuesday and came close when West Ham winger Victor Moses crashed a shot against the post in the 84th minute.
The match in Alexandria became a virtually all-or-nothing tie for Nigeria after Chad withdrew from the group on Sunday, citing financial difficulties, and all results from their matches were erased.
That left only three teams in Group G and in accordance with the rules of the Confederation of African Football only the winner would qualify for the finals.
Egypt have seven points with one match to play, against bottom club Tanzania, who have only one point but two games remaining.
To have any chance of qualification Tanzania would need to beat Egypt by a better scoreline than the 3-0 defeat they suffered in Egypt last June because head-to-head records would come into effect if the sides finished level on points.
Tanzania would still have to beat Nigeria in their final match in September.
BBC
With just one game remaining and only the group winners to qualify, Nigeria cannot make up their five-point deficit to table-toppers Egypt.
Ramadan Sobhy's 65th-minute winner puts Egypt on the verge of qualification.
Egypt face Tanzania in June and will book their place in Gabon with any result better than a 3-0 defeat.
Nigeria won the Nations Cup in 2013 but have now suffered back-to-back eliminations in qualifying.
They threw everything forward to find an equaliser on Tuesday and came close when West Ham winger Victor Moses crashed a shot against the post in the 84th minute.
The match in Alexandria became a virtually all-or-nothing tie for Nigeria after Chad withdrew from the group on Sunday, citing financial difficulties, and all results from their matches were erased.
That left only three teams in Group G and in accordance with the rules of the Confederation of African Football only the winner would qualify for the finals.
Egypt have seven points with one match to play, against bottom club Tanzania, who have only one point but two games remaining.
To have any chance of qualification Tanzania would need to beat Egypt by a better scoreline than the 3-0 defeat they suffered in Egypt last June because head-to-head records would come into effect if the sides finished level on points.
Tanzania would still have to beat Nigeria in their final match in September.
BBC
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