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Nigerian Consumers Warned: DisCos Must Provide Transformers, Cables, and Poles

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In a bold move to protect electricity consumers, the Nigerian Electricity Regulatory Commission (NERC) has issued a stern warning to Distribution Companies (DisCos) regarding their obligations. NERC emphasized that it is the responsibility of DisCos, not consumers, to supply essential infrastructure such as transformers, cables, and poles. This directive aims to curb the unethical practice of DisCos coercing consumers into making these purchases.

“Under no circumstances should consumers be forced to buy transformers, cables, or poles,” NERC spokesperson, Usman Arabi stated firmly. “It is the sole responsibility of the DisCos to provide these materials as part of their service delivery.” This statement was made via NERC’s X handle, formerly known as Twitter.

NERC has established dedicated communication channels to facilitate the reporting of any coercion or delays in providing these materials. Consumers who experience such issues are urged to contact NERC promptly via email at [email protected] or through the dedicated phone line at 07074865354.

“We are committed to addressing these complaints swiftly and ensuring that DisCos adhere to their obligations,” the spokesperson continued. “Our goal is to enhance the overall reliability and quality of electricity supply across the country.”

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This initiative is part of NERC’s broader effort to improve transparency and accountability within the Nigerian Electricity Supply Industry (NESI). By holding DisCos accountable, NERC aims to foster a more consumer-friendly environment, ensuring that customers receive the services they are entitled to without undue financial burden.

“Consumers should not be burdened with the cost of infrastructure that should be covered by the DisCos,” a NERC official remarked. “We encourage all affected consumers to report any incidents of coercion. Your reports help us take necessary actions and bring about positive change.”

The commission has also underscored the importance of consumer rights and protection. By empowering consumers with the knowledge and means to report issues, NERC hopes to mitigate any potential exploitation and ensure equitable service delivery.

As NERC continues to champion the rights of electricity consumers, it remains steadfast in its mission to oversee and regulate the electricity supply industry effectively. The commission’s latest directive is a significant step towards a more accountable and transparent electricity sector in Nigeria. Gmtnewsng

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Just In… Kenneth Okonkwo Tipped to Replace Ajuri Ngelale Amid Opposition Critique

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From Right: President Tinubu and Kenneth Okonkwo

Speculation is growing that Nollywood actor and lawyer Kenneth Okonkwo may be poised to replace Ajuri Ngelale as a top media aide to President Bola Tinubu. This comes after Okonkwo, a former ally of Labour Party’s Peter Obi, made a bold critique of Nigeria’s opposition parties, arguing that they have failed to hold the government accountable. Speaking in an interview with Arise TV on Tuesday, Okonkwo stated that opposition parties have not proven to Nigerians that they can deliver good governance if elected.

In the interview, Okonkwo stressed that the failure of the opposition stems from its inability to focus on effective governance. “The opposition is concentrating more on acquiring power from the ruling party rather than focusing on policies and governance. They are not convincing Nigerians that they can provide good governance if elected,” he said. He further noted that the success of any political entity is deeply rooted in unity. “As long as politics is concerned, the secret of acquiring political power is cohesion amongst your own group and collaboration with others.”

Okonkwo’s remarks have sparked conversations within political circles, with many speculating that his clear grasp of the political landscape might earn him a position in the Tinubu administration. An APC insider remarked, “Kenneth Okonkwo has displayed a remarkable understanding of politics, particularly with his focus on cohesion and collaboration. His critiques reflect the strategic thinking President Tinubu values.”

Political observers also weighed in on the conversation. Dr. Uche Okoye, a political analyst, noted, “Kenneth Okonkwo’s critique of the opposition is timely. His observation that opposition parties are failing to consolidate and offer convincing alternatives should be taken seriously, as it points to a gap in Nigeria’s political discourse.”

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Reactions from opposition figures have been mixed. A prominent member of the Peoples Democratic Party (PDP), Gabriel Ejembi, dismissed Okonkwo’s comments, calling them politically motivated. “It’s clear Kenneth is aiming to secure a position in the government, and his remarks are intended to curry favor with the APC,” Ejembi claimed. However, another official from a smaller opposition party, YPP, Yellowe Omobori, admitted, “Kenneth’s critique isn’t entirely wrong. The opposition needs to shift focus towards policies and reforms.”

As rumors swirl about Okonkwo replacing Ajuri Ngelale, his rising influence in the political arena has become evident. Some argue that his shift from an opposition figure to a potential government insider signals his adaptability and keen understanding of political dynamics.

The potential shift comes in the wake of Ajuri Ngelale’s recent resignation as the Senior Special Assistant to the President on Public Affairs. Ngelale, who had been the face of the administration’s communication strategy, is reported to have stepped down to pursue other interests. His departure has created a vacuum, leading to increased speculation that Okonkwo might be tapped to take over the role, given his eloquence and political acumen.

Whether or not Kenneth Okonkwo takes up an official position in the Tinubu administration, his comments have reignited discussions about the role of opposition in Nigeria’s democracy. His candid critique serves as a reminder that political power goes beyond rhetoric – it requires sustained effort and policy-driven leadership. Gmtnewsng

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Ajuri Ngelale Resigns as Tinubu’s Spokesman, Cites Family Health Reasons

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Ajuri Ngelale

The Special Adviser to President Bola Tinubu on Media and Publicity, Ajuri Ngelale, has officially stepped down from his position, effective immediately. In a statement released on Saturday, Ngelale explained that his decision to resign was driven by pressing family health concerns, which require his immediate attention.

“I submitted a memo to the Chief of Staff to the President, informing him that I would be taking an indefinite leave of absence,” Ngelale disclosed in the statement. The memo was addressed to Femi Gbajabiamila, the Chief of Staff to the President. Ngelale also noted that this decision was not made lightly and followed significant consultations with his family.

Ngelale also relinquished his role as the Special Presidential Envoy on Climate Action and Chairman of the Presidential Steering Committee on Project Evergreen. He stressed the importance of stepping away from his duties to address medical issues affecting his immediate nuclear family. “While I fully appreciate that the ship of state waits for no man, this agonizing decision had to be made after witnessing the worsening health situation at home,” he said.

The former spokesman acknowledged the gravity of his responsibilities and the timing of his departure but underscored that his family’s health had to take precedence. “This was a difficult choice, especially given the critical national roles I occupy. However, family comes first, and the deteriorating situation at home made this an unavoidable step,” Ngelale explained.

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In his statement, Ngelale expressed optimism about resuming his duties in the future but emphasized that the timing would depend on when his family’s health stabilizes. “I look forward to returning to full-time national service when time, healing, and fate permit,” he stated.

Ngelale concluded his message by requesting privacy during this challenging period. “I respectfully ask for some privacy for my family and me during this time,” he appealed, stressing the personal nature of the situation.

His resignation marks a significant change in President Tinubu’s media team, where Ngelale had served as a key figure in shaping the administration’s public communications.

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The Geometric Power Model: A Blueprint for Nationwide Energy Solutions

The Geometric Power Model, pioneered by Prof. Bart Nnaji and his team, stands as a groundbreaking approach to addressing Nigeria’s energy challenges. By combining innovative power generation methods with efficient distribution networks, it demonstrates how localized energy projects can lead to reliable, sustainable, and affordable electricity. Adopting this model nationwide could transform the country’s energy landscape, ensuring that both urban and rural areas have access to consistent power supply, driving economic growth, and enhancing the quality of life for millions of Nigerians.

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By Patrick Nzerem

During his visit to the Geometric Power group in Aba, Abia State, on Wednesday, August 22, 2024, the British High Commissioner to Nigeria, Richard Montgomery, said he found the Geometric Power model in providing regular, quality and affordable electricity impressive. Though the press did not report the features of the Aba Independent Power Project that impressed him, the media disclosed that the diplomat expressed satisfaction with “the state-of-the-art facilities” he inspected.

When President Olusegun Obasanjo was granting a special licence to Geometric Power to build a gas-fired plant in Aba and also an electricity distribution company before the private sector was allowed to participate in the power business through the Electric Power Sector Reform Act of 20005, the administration announced that it wanted the new arrangement in Aba to serve as a model that could be replicated elsewhere. Though Obasanjo was no longer in office when the Independent Aba Power Project was completed, he announced, through his son, Dr Seun Obasanjo, at the commissioning last February 26 that he felt p vindicated. 

Also speaking at the ceremony, the Minister of Power, Chief Adebayo Adelabu, disclosed that the President Bola Tinubu government has been studying the Aba model intending to replicate it across the country. Two recent major developments in the power sector indicate that the lessons from the Aba model are being already implemented.

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The first is the recent report that the Nigeria Electricity Regulatory Commission (NERC) has directed electricity-generating companies to supply power directly to electricity-distributing firms rather than go through the Nigeria Bulk Electricity Trading Company (NBET). This means that the electricity distributing companies, popularly known as DisCos, will no longer receive subsidies from the Federal Government through NBET for under-recovery.

This is the Aba model in that since it began commercial operations in September 2022, the Aba Power Electric Company has not received even a kobo subsidy from the Federal Government or any of its agencies. In contrast, the other 11 DisCos in the country which are successor companies to the Power Holding Company (PHCN) assets privatized in November 2013 have been receiving hundreds of billions of naira in subsidy.

The irony is that Aba Power charges a lower tariff than the other 11. Its Band A customers who receive at least 20 hours of supplies daily pay N117 per kilowatt hour (kWh)while the other DisCos charge their customers N206.80 kWh, a significant difference. The Geometric Power Plant has also not received any subsidies. The Federal Government thinks that if the two firms within the Geometric Power group could survive since their inception without subsidies, the other DisCos and GenCos in Nigeria can learn to survive without subsidies and thrive.

Laudable as it may seem to ask the other DisCos and GenCos to borrow a leaf from the Geometric Power group, there are two major implications of the Federal Government compelling the other firms inherited from the PHCN to stand on their own fully. One is that their tariff is likely to rise significantly once they stop getting subsidies. The second has to do with NBET’s continued relevance. NBET was not created to exist in perpetuity. It’s rather a transition body. It’s designed to cease to exist when the electricity market matures. The time has come for the nation to have an honest, frank conversation on the state of the DisCos which some analysts regard as the weakest link in Nigeria’s electricity value chain.

The Geometric Power model seems to have influenced the recent statement by the Minister of Power that the DisCos are too large and, therefore, need to be broken up for effectiveness and efficiency. The Assets Management Company of Nigeria (AMCON), Gbenga Alade, has also stated that the DisCos cover unduly wide areas. True, they cover large swaths of territory, with each covering several states except the Eko and Ikeja DisCos in Lagos whose coverage areas don’t go beyond the nation’s commercial capital.

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To compound matters, the management systems of the other 11 DisCos are centralized in an era when firms abroad have been decentralizing. The DisCos may not be blamed because of the high trust deficit in our country. As a result of the centralization, for instance, the Benin Electricity Distribution Company staff in Ekiti State will have to travel to Benin City in Edo State for routine matters. The Benin DisCo covers Delta, Edo, Ekiti, and Ondo states. The Ibadan DisCo has a bigger coverage area, as Oyo, Ogun, Osun, Kwara, and parts of Niger, Ekiti, and Kogi states are serviced by it. The Northern DisCos naturally have larger territories.

In contrast, the Aba Power ring fence covers only nine of the 17 local government areas in Abia State. It makes the company agile and enables it to respond swiftly to challenges. The power minister is then justified to call for a review of the coverage ares by the distribution companies.

The third lesson from Geometric Power is its end-to-end system of power delivery. It generates its own electricity and distributes it, though owing to an unreliable gas supply from a domestic producer in its neck of the woods it has not enjoyed the benefits of this system well. This is the system adopted by the Apple Corporation which does its own hardware and software, making it an integrated company. This is in contrast to its notable computer rival, Microsoft, which engages only in the software business. Business leaders and analysts agree that the end-to-end system adopted by Apple gives it a precious competitive advantage.

The problem with practising this system in Nigeria’s power sector is the prohibitive cost. It costs between $1.3m and $1.5m to establish just one megawatt of a gas-fired plant. It costs more to build a coal, solar, or hydro plant of the same size. Nigeria’s DisCos which are not yet creditworthy can’t dream of establishing their own power-generating facilities like Geometric Power. Ikeja DisCo, the most professionally run of all the Discos inherited from the PHCN, is owned by the same consortium that owns the Egbin Power Plant in Lagos, but its electricity is taken to the national grid rather than dedicated for the use of customers in a particular location. This is the major difference between it and the Aba Independent Power Project, and this difference enables Geometric Power to be Nigeria’s foremost integrated electricity organization.

The Aba model needs to be replicated in other parts of Nigeria.

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Nzerem wrote from the Federal University of Technology, Owerri, Imo State.

GMTNewsng.com

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