The release of CSP Dickson Adeyemi from the force headquarters in Abuja is still causing ripples in Delta State as stakeholders in the state have continued to express worry over the action of the hierarchy of the Nigerian Police Force.
CSP Dickson who is the head of the Anti-Kidnapping Unit of the Delta State Police Command and five other police officers were arrested earlier this year and taken to Abuja on allegations of their involvement in cases of kidnappings in the state.
They were recently released for what the force called lack of evidence against them. CSP Dickson was redeployed to the state.
Governor Emmanuel Uduaghan, who expressed concern over the release of the suspects, said their release coincided with the resurgence of kidnapping in the state.
Speaking while playing host to the acting Inspector-General of Police (IGP), Mr. Mohammed Abubakar, the governor stated there was a drastic reduction in the incidence of kidnapping during the period when the suspects were under detention in Abuja, stressing that soon after their release the crime has peaked.
He said that Deltans have been agitated by the development and were requesting that the matter be re-visited and thoroughly investigated to ensure that justice was done.
“The people of Delta State want me to send a message to you on recent happening in the state and even the State House of Assembly deliberated on it. Few days ago some persons, your police officers, suspected to be involved in kidnapping who were earlier apprehended, were released.
“What is bothering us is that their release coincided with therecent upsurge in kidnap cases in the state…So we want you to have a second look at that issue,” he noted.
Members of the state House of Assembly had on Tuesday adopted a motion calling on the President Goodluck Jonathan to direct the IGP to order the re-arrest of Dickson and re-open the investigation of the allegations leveled against him.
The lawmakers had argued that Dickson was “inexplicably released” following the alleged intervention of the chairman, Police Service Commission (PSC), Mr. Parry Osayande whom they described as the father-in-law to the anti-kidnapping Czar.
But the police boss at a stakeholders’ meeting in Asaba defended the recall and redeployment of CSP Dickson, explaining that the suspect was exonerated due to lack of concrete evidence against him after a painstaking investigation.
“We have investigated. We didn’t found any evidence against the police officer. I want to be fair and just to everybody, I don’t want to prosecute anyone because they say someone is a thief and there are no evidences to prove that actually that person is a thief. If you have that evidence against that police officer that we could use to prosecute him, please bring forward to us such evidence,” the IG stated.
He had earlier told the governor that the vision and mission of police management under his leadership was “to build a people-friendly police force that will not harass Nigerians, a police force that will say bail is free and is free.”
He said efficiency was the keyword for the police in discharging its constitutional responsibility, hinting that corruption has been reduced by80% in the police since the removal of road blocks.
Abubakar assured Nigerians of their safety in the wake of daunting security challenges, pointing out that in keeping with his vision of transforming the image of the police, hoodlums engaged in criminality, including attacks on police stations and bankers, were being arrested nationwide.
Justice Pelibus Andertu of Taraba State High Court II on June 12, 2012, convicted the duo of Philip A. Timothy and Rimamsonchiti Bako who were arraigned by the Economic and Financial Crimes Commission, EFCC, on a two-count charge of conspiracy, criminal breach of trust and fraudulent diversion of funds.
The accused who were staff of Ussa Local Government Area, Taraba State , served as Chairman and Secretary, respectively, of the National Union of Local Government Employee, NULGE. They were arraigned on July 27, 2011.
Justice Andertu found the two accused guilty of the charges levelled against them and sentenced them to jail term of six months with an option of N500,000.00 fine each. They were also ordered to pay the value equivalent to the motorcycles involved in the scam.
The former NULGE officials were arrested following a petition by a new generation bank, alleging that sometime in 2007, officials of the union in Ussa Local Government Area, Taraba state, requested for a loan of N20 million for the purchase of motorcycles for its members. The loan was granted by the bank after the management of the local government guaranteed it.
The bank alleged that the terms of repayment had indicated that the union will pay the bank N23.4m spread over a period of 18 months.
However, only N15m was paid at the expiration of the tenure of the facility, leaving a balance of N8.3m
There is a strong allegation of bribery involving an oil magnet and a prominent member of the panel investigating the fuel subsidy scam in the National Assembly. This new twist will further dent the integrity of the legislative chamber, business community and Nigeria as a whole.
While there are several anti-corruption agencies in the country, there are no clear demarcations on which of them should be responsible for investigating and prosecuting the case as they simply duplicate their mandates. Multiplication of agencies performing similar roles have been drains on nation’s purse.
The cost of governance in Nigeria is one of the highest and most expensive in the world. The dubious duplication of functions, financial recklessness, nepotism and cronyism in recruitments are largely influenced by the establishments of unnecessary agencies, which also promote corrupt practices.
In an effort to address the high cost of governance, a Presidential Committee on the Rationalisation and Restructuring of Federal Government Parastatals was established. Led by former Head of the Civil Service of the Federation, Steve Oronsaye, the committee has proposed some positive initiatives as well as some controversial suggestions. While the committee recommends far-reaching decisions to reduce the excessive overhead and recurrent expenditures, which in some quarters have been translated to mean retrenchment of workers, the report indeed exposes duplication of responsibilities and schedules of duty among agencies of government.
The committee was able to adhere strictly to its terms of reference which include; to study and review all previous reports/records on the restructuring of Federal Government parastatals and advise on whether they are still relevant, to examine critically the mandates of the existing Federal agencies, parastatals and commissions and to determine areas of overlap or duplication of functions, and make appropriate recommendations to either restructure, merge or scrap the duplicates.
The key recommendations of the report include the abolition of 38 agencies, 52 mergers and reversion of 14 agencies to departments in their relevant ministries. Generally, it suggested that statutory commissions should be reduced from 263 to 161. It further recommends a management audit of 89 agencies to capture biometric features of their employees as well as discontinue government funding of professional bodies and councils. The Committee stated that it found duplications and overlaps in the mandates of many agencies and parastatals, noting that successive administrations established these agencies without regard to existing laws. The report indicated that the Federal Government will be saving about N1 trillion within 3 years of implementation.
It is noteworthy that some agencies could be strengthened with added empowerment through mergers for instance the proposed National Emergency Management and Refugee Commission (NEMAREF) and Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) that may be saddled with fixing salaries of public servants and to takeover functions Fiscal Responsibility Commission (FRC) which was created by former President Olusegun Obasanjo few years ago.
Meanwhile the committee has recommended the merger of the anti-corruption bodies such as the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices Commission (ICPC) and Code of Conduct Bureau (CCB). If the government accepts and implements the recommendations, these bodies would serve as department within the larger Anti-Corruption Commission (ACC). According to the report; “The establishment of strong departments among others, in the proposed consolidated structure is desirable as they would handle Prosecution, Investigation, Prevention (Advocacy), and Asset declaration/ forfeiture.”
The report also recommends the elevation of the Code of Conduct Tribunal (CCT) to Anti-Corruption Tribunal to try all corrupt cases in the country. The recommendation if implemented would ensure that regular courts that are overburden with other cases will no longer try corruption-related matters whether by politicians, civil servants or business persons.
The report clearly states that: “The Code of Conduct Tribunal should be renamed Anti-Corruption Tribunal and upgraded to the status of a Court of Superior Records with the responsibility for handling only corruption cases from the proposed merger of EFCC, ICPC and the Code of Conduct Bureau. Extant anti-corruption laws should be repealed, while a new one is enacted to accommodate the consolidation of EFCC, ICPC and the Code of Conduct Bureau.”
Some of the cases being handled by EFCC, ICPC and others ought to have been brought to the CCT for quick determination. The CCT is a court of summary trial which by law should not waste time in deciding most other cases that are before the other anti-corruption bodies like EFCC, ICPC and CCB. The nation does not need a special court as being advocated in some quarters to deal with the cases of corrupt public officers. As it is presently constituted, the Code of Conduct Tribunal has the power to impose punishments ranging from vacation of office and disqualification from holding any public office by officers found guilty of contravening any of the provisions of the Act, especially on misconduct and corrupt practices. It also has the power to seize and forfeit to the state of any property acquired through abuse or corruption in office.
It is glaring that the regular courts are ineffective in attending to corrupt cases, such that high-profile cases involving politicians drag on for many years without an end in sight. On the other hand the suspects continue to enjoy their loots while their lawyers who are paid hefty fees deliberately prolong litigation endlessly.
It was only lately after the appointment of Justice Umar Danladi as Chairman of the Code of Conduct Tribunal that some corrupt cases like that against the former Governor of Lagos, Ahmed Bola Tinubu were dispensed with within a short period. This demonstrates capacity and ability of the tribunal to expedite actions on cases brought before it.
The proposed Anti-Corruption Tribunal (ACT) from existing Code of Conduct Tribunal (CCT) should be independent and autonomous with the capacity for repression of corruption acts and observe the principles of expeditiousness, effectiveness and efficiency in the administration of justice. Branches of the tribunal should also be created in each of the six geopolitical zones to facilitate speedy trials and disposal of corruption cases.
The administration of President Goodluck Jonathan should examine the report and implement the worthy recommendations therein. The submission should not be swept under the carpet like the similar past reports on rationalization especially that of Ahmed Joda and Allison Ayida. In ensuring fairness before the implementation of the report, the government should engage the stakeholders, especially the labour and the legislature to iron out grey areas before their endorsement.
The Economic and Financial Crimes Commission, EFCC, on June 13th , 2012, tendered two sets of documents in the prosecution of Dr. Shaibu Sani Teidi and two others who are being tried before Justice Adamu Bello of the Federal High Court, Abuja over a N2billion (Two billion naira) check-off dues fraud. The two others, who are being prosecuted for defrauding the Nigerian Union of Pensioners, NUP, are Alhaji Ali Abatcha and Elder Actor Zal, President and Secretary General of NUP respectively.
Two prosecution witnesses were led in evidence by Emmanuel Nonso Egwuagu from Godwin Obla’s Chambers at the resumed hearing of the case. They are Mr. Njoku Everest, Assistant General Secretary of the Union and Mr. Chikezie Aguocha, an official of First Bank of Nigeria , PLC.
While Everest tendered documents concerning total expenditure that was incurred by the Union, based on the money that came into the Union’s account between April 2008 to March 2011, Aguocha, who was subpoena on May 10, 2012, also produced seven documents which included statement of account of the Nigerian Union of Pensioners domiciled at the Garki branch of the bank, statement of account from the date it was opened to December 31st , 2011 as requested, account opening forms, mandate cards and reference forms and account update form. Also tendered before the court, was the payment instruction/instrument of the account within the stated period.
Dr. Shuaibu Sani Teidi, Alhaji Ali Abatcha and Elder Actor Zal were alleged to have, at various times, between 2008 and 2011 conspired to defraud, obtained from the Pensions Department, Office of the Head of Service of the Federation of Nigeria, various sums in the aggregate amount of over Two Billion Naira.
Dr. Teidi, while in the Pensions Department, Office of the Head of Service of the Federation of Nigeria, allegedly used his position to over pay the Check-Off Dues to the NUP which in turn returned the excess payment to Dr. Teidi.
In the proof of evidence presented before the court, Elder Zal had in his confessional statement to EFCC alleged that various sums of money were paid to Dr. Shuaibu. Zal said the NUP received Sixty Million, Nine Hundred and Fifty Eight Thousand Eight Hundred and Fifty naira, Forty eight kobo (N60, 958, 850.48) on April 23rd, 2009. Of the amount, N20 million was given to Dr. Shuaibu as kick back. On August 14, 2009, Sixty Five Million, Five Hundred Thousand Six Hundred and Fifty Naira (N65, 500, 650) was received as check off dues and Dr. Teidi allegedly got N20 million as kick back. He said that of the Two Billion, Two Hundred and Ninety Million, Five Hundred and Ninety Three Thousand, Three Hundred and Twenty Two Naira, Ninety Five Kobo (N2, 290, 593, 322.95) that fraudulently accrued to NUP in the period of 2008 and 2011, Two Hundred and Forty Five Million Naira (N245, 000,000. 00) was allegedly given to Dr. Teidi as kick back.
According to Zal, the reason Dr. Teidi gave for his demand was for onward distribution to the Permanent Secretary, Head of Service, Accountant-general office, National Assembly and EFCC to facilitate smooth payment of monthly pensions to the pensioners.
After cross-examination of the prosecution witness by the defence counsels, led by S. I Ameh, the court adjourned the case till October 16, 2012, for continuation of trial. Count one of the four count charge reads: “that you, Dr. Shuaibu Sani Teidi, Alhaji Ali Abatcha and Elder Actor Zal at various times between 2008 and 2011 within the jurisdiction of this honourable court, conspired among yourselves to by false pretences and with intent to defraud obtained from the Pensions Department, Office of the Head of Service of the federation of Nigeria, various sums in the aggregate amount of N2, 290, 593, 322.35 (Two Billion, Two Hundred and Ninety Million, Five Hundred and Ninety Three thousand, three Hundred and Twenty Two Naira, Thirty Five Kobo), thereby committed an offence contrary to Section 8(a) of the advance Fee Fraud and other Fraud related Offences Act 2006 and punishable under Section 1(3)of the Advance Fee Fraud and other Fraud Related Offences Act, 2006.
The fiscal problems plaguing the State of Bauchi under the leadership of the Yuguda administration appears unending as the appetite of the 1st family continues an open exhibition of insatiability towards the State coffers. This is according to information recently made available to 247ureports.com through sources within the Executive arm of the Yuguda administration indicating that the treasury of the Bauchi State administration may have gone dry owing to the unregulated spending behavior of the State Governor and his close associates.
The State financial administrators of Bauchi’s bank accounts at the Finbank/FCMB appear to have unleashed a fertilized recklessness towards the State monies kept in their care. As 247ureports.com inquiry revealed, the main bank account housed at the Finbank/FCMB with the account number 212430000642501 has repeatedly been overdrawn by the Yuguda administration to the tune of N300million on the average, monthly – for a period stretching over two years. The other two accounts operated by the State government are not faring well either. Specifically, the account operated under the Secretary to the State Government [SSG] at the Finland/FCMB with the account number 212430000677001 – and the account operated under the Treasury department at the same bank with the account number 212430000532701 are frequently overdrawn – to the tune of N100million and above. Of which experts in financial management who spoke with our correspondent indicates that the frequent negative balance was symptomatic of a griever problem within the state administration.
Adding gravitas to the financial maladies, State checks [cheques] issued the State contractors, upon completion of their jobs, have begun to bounce upon presentation at the payment counter at the bank because of lack of funds – the Bauchi State government, in effect, issued dud checks to contractors. A cursory count points to about six contractors. The contractors who have refused to be mentioned by name, told our correspondent [and shown copies of the bounced checks to our correspondent] that the checks issued to them bounced upon presentation. They added also that the incidence of issuing dud checks has become increasingly recurrent. The six checks were issued against the main Bauchi State account at the Finbank/FCMB with the account number 212430000642501.
The financial maladies appear worsened by the Chief of Staff, Alhaji Yusuf Musa Gumli whom Governor Yuguda virtually handed the day-to-day operation of the state government. According to one of the aggrieved cabinet level officials, the Chief of Staff was made in charge of receiving all correspondences from cabinet level officials addressed to the Governor. The Chief of Staff was authorized by the governor to sieve through the correspondences and to use his discretion to determine which correspondences required the governor’s attention. And so, all the Commissioner’s official correspondences to the Governor are channeled through the Chief of Staff – including requests for money. As gathered, the Chief of Staff tampers with the correspondences that has to do with requests for money – to the extent that he returns the letter/correspondence to the Commissioner ‘instructing/advising’ that the value of the money requested be adjusted upwards to include his share. This practice is said to have gone on for some time.
While the State government battles to stay financially liquid, the 1st in the State appear to be enjoying the fruits of Bauchi State’s labor. According to highly credible information received by 247ureports.com, the 2nd wife of the Governor, Mrs. Biodun Isa Yuguda recently completed the erection of an estate in Lagos [picture of estate to come soon]. The estate, valued in excess of N665million, was completed late last month. Mrs. Biodun Isa Yuguda recently purchased a home in a luxurious suburb near London in the United Kingdom. The value of the house is not readily known but it is certain the value far exceeds her income. Keen observers of the Bauchi polity who are conversant of the ongoings at the government house query Mrs. Biodun’s source of income.
The various Local Government Areas [LGAs] financial accounts are not spared by the operatives of the Yuguda administration. As gathered, the security operatives staged in Bauchi State, the-likes of the Joint Task Force [JTF] and the State Security Services [SSS] in connivance with agents of the Yuguda administration are reported by sources to have been collecting from each LGA Chairman monies for upkeep of the security in the State. Last month, the sum of N5million was collected from each of the LGAs and paid directly to the leadership of the security operatives for security maintenance. It is worthy of note that the federal government already provides for the financial needs of the security operative deployed to Bauchi State. The state government also had earmarked the sum of N17billion for security upkeep of the State.
Concerned citizens of Bauchi State who have a keen grasp of the activities surrounding the security upkeep of the state and monies earmarked for the project, point to the SSS Director as being fraudulent with his duties in the State. Some of the concerned citizens indicated that the SSS Director uses the threat of insecurity to ‘shake-up’ the state government and the various local government into ‘letting go’ untold sums of money to ‘maintain the peace’.
One of such ‘shakeups’ at the Tafawa Balewa LGA following the Bauchi State Government relocation of the Headquarters of the local government from Tafawa Balewa to Bununu led the Caretaker Committee Chairman of the Local Government Alhaji Idris Ibrahim Halilu to cry foul – stating that, “when we are relocated we moved some of the council properties to Bununu, but we left many in Tafawa Balewa based on advise. The security operatives advised us to stop moving the council properties for now in order to achieve sustainable peace, and as law abiding citizens we obeyed their advice”. The LGA present operates with temporally files without its archives or historic data.
Meanwhile the state government has awarded N11.6billion worth of contracts to firms believed to be fronting for the Secretary to the State Government. The sum of N2.6billion contract was awarded for the erection of a federal teaching hospital while N8billion was awarded for the erection of an International Airport. Seventy [70%] percent mobilization fee equivalent to N8.4billion were paid out before the start of the two projects. Source allege that a large portion of the money was shared among close associates of the governor.
Information available to 247ureports through sources within the cabal in the Peoples Democratic Party [PDP] indicates the $620,000 bribery scandal against the Chairman of the Adhoc Committee on fuel subsidy payment probe may have over poured onto the office of the Deputy Speaker of the lower chamber of the National Assembly [NASS]. Sources reveal that the Deputy Speaker, Emeka Ihedioha may have become another victim of the bribery scandal.
According to sources, Hon. Farouk Lawan may not have been the lone victim in the conspiracy to change the leadership at the lower chamber of the NASS. The new revelation, as a source states, was that some of the officers of NASS who collected the $3m from the billionaire business man, Mr. Femi Otedola, did so with the
knowledge of some of the principal officers.
Particularly, the deputy speaker, Emeka Ihedioha who presided over the committee of the whole house when the report is adopted, knew about the bribe and “that explains why he called on Farouk Lawan to speak on item 29 during the consideration on the subsidy report.”
When he was recognized, Farouk Lawan then requested for the deletion of Mr Otedola’s Zenon Oil and two others and thus absolved them from any wrong doing.
Ihedioha thereafter put the question and it was carried, a decision that is making some members to now argue that the deputy speaker might have been briefed about the $3million dollars in which $620,000 had been paid to Farouk Lawan as installment.
To this end, over 350 members are now mounting pressure on Speaker Aminu Tambuwal to summon emergency session, with a view to taking a position on the saga.
It was also learnt that the speaker has summoned Mr Ihedioha and some principal officers to brief him on what they know about the $3 million bribe.
An aide of the deputy speaker is said to be moving round to ensure that the issue as it affects his boss is swept under the carpet and shut from the press.
The principal officers of the House have over the past few days holding several meetings, on the next line of action, and thus resolved to adhere to the Legislative agenda hinged on accountability and transparency.
Recall that Farouk Lawan, the chairman of the House of Representatives Ad-hoc Committee on the Monitoring of the Subsidy Regime shameless admitted that he received $620,000 bribe from billionaire businessman Mr Femi Otedola less than 24 hours after he denied the allegation.
“I wish to categorically deny that I or any member of the committee demanded and received any bribe from anybody in connection with the fuel subsidy probe.” Farouk earlier stated in a press statement.
Our source also believes that some other oil companies and agencies may have been force to give bribe to the Farouk Lawan led committee but will be too afraid to come out to speak up “because given bribe too constitute an offence.”
This latest subsidy scandal is coming barely a month after a N44 million bribery allegations is levelled against the former chairman of the house committee on capital market, Herman Hembe who allegedly demanded the money from now suspended Director General of Securities and Exchange Commission, SEC, Arunma Otteh.
Information reaching 247ureports.com from sources atthe government housein Kano State indicates that the Joint Task Force [JTF] staged in Kano State under the leadership of Col Iweha has arrested five [5] suspects – suspected to be members of the boko haram.
Details are still sketchy but the information received indicates that the arrest was made within the Kano metropolis today, June 13, 2012 at 2pm.
Kano metropolis has served a hotbed of boko haram activities.
Governor Rochas Okorocha of Imo state has effected a cabinet shake-up
leading to dropping of six Commissioners in the Imo State Executive
Council.
The affected commissioners are: Chief Ejike Uche (Public Utilities and
Rural Development), Nze Ogueri Enwerem (Commerce and Industry), Dr.
Obinna Duruji (Information and Strategy) and Engr. Ogwazuo (Culture
and Tourism).
Others are: Barr. Nelson Ezerioha (Transport), and Mrs. Ann Dozie of
Women Affairs and Social Development.
The Chief of Staff to the Governor, Prince Eze Madumere who addressed
newsmen after State Executive Council meeting in Government House
disclosed that a list of new Commissioner Nominees has been forwarded
to the House of Assembly for screening.
He said that the appointed commissioners are Ichie Uche Mbanaso, the mayor of Orlu, Hon. Chinedu Offor, the Senior Special Assistant to the
Governor on Media, Barr. Lady Nnanna Ugochi Okoro, Mr. Chima
Iwuchukwu, Barr. Emma Ekweremba and Prince Charles Onuoha, the Senior
Special Assistant on MDGs.
Madumere added that the governor also effected a minor reshufflement
which also affected some Special Assistants and Senior Special
Assistants which its list would soon be made public.
He explained that the affected appointees were dropped following the
desire of the governor to effect some changes and re-jig the machinery
of governance after re-assessment of progress made by the present
administration in the past one year.
Information reaching 247ureports.com through sources within the military men staged at Karu in the Federal Capital Territory [FCT] indicates that the military man may have foiled a planned attack today at around 12noon.
According to early information received, the men of the Nigerian military stationed near the Karu area where the old Central Bank Quaters is located – during their routine stop and search exercises – came across a Honda Civil vehicle thatseemed suspicious. The military men stopped the vehicle and questioned the occupants of the vehicle. The response from the occupants of vehicle seemed “rehearsed and un-natural”. So “we decided to search the vehicle” stated one of the military men who conducted the search.
The search uncovered dangerous weapons and other electronic gadgets that the military men could not readily determine what it was. The weapons were concealed inside the trunk of the vehicle. In particular, several riffles [AK47] was discovered hidden under the tyre and some canisters were found under the seats of the vehicle. The two occupants of the car have since been detained by the army. It is unsure the identities of the detained culprits.
The military has since put up military check points along the road leading from Nyanya to Kurudu where a military estate is located.
Honourable Minister of Power, to Participants In Executive Intelligence Management Course 5 at The Institute for Security Studies, Abuja, on Monday, June 11, 2012.
It is my pleasure to be in the midst of the top echelon of the nation’s intelligence and security community to discuss with you the state of Nigeria’s electric power sector, especially the new direction in which it is headed under the President Goodluck Jonathan Administration. An efficient power sector is central to national security, national survival and national prosperity, just as an efficient intelligence and security system is a desideratum. Modern society runs on electricity, and electricity development itself cannot take place in an environment which is not safe and secure. Yet, both the power sector and the security environment in Nigeria are going through challenging times.
I would like, at this juncture, to publicly commend the intelligence and security community in Nigeria for its heroic service to the nation. The men and women in various intelligence and security apparati stand in harm’s way every minute of the day so as to provide a conducive environment for 167 million Nigerians to live and work in peace and harmony. Theirs is the ultimate national sacrifice. As has been observed over the ages, there is no love greater than the fact that a man should lay down his life for the benefit of his people. Still, the immensely sacrificial role of our security men and women is scarcely recognized by the larger society. The few lapses in their performance of duties are those which daily catch media headlines, with the impression sometimes created that they are not quite competent. Yet, when junior officers in the Nigeria Police Force went on a strike in the early 2000s, the first and only time in our national history, no bank in Nigeria opened for business for even a second! Not even banks in rural communities where the crime rate is very low opened for a moment.
The Federal Ministry of Power appreciates the effectiveness and efficiency of the men and women who, every second of the day, protect our lives and our assets and ensure there is peace and order in society. Towards the end of 2010, the President and Commander-in- Chief of the Armed Forces of the Federal Republic of Nigeria, Dr Goodluck Jonathan, GCFR, directed soldiers to join the police to guard all electricity installations across our vast country. Some citizens who did not appreciate the wisdom and foresight in the President’s directive took exception to it. But today the whole world knows who was right and who was wrong. Suffice it to say that to this day all power facilities in the country have bravely been protected by our intelligence and security agents, despite the considerable security challenges in the nation. Theses gallant officers rose to the occasion when some dare-devil elements tried some months ago in Yobe State to attack our power facilities. And when the undesirable elements pursued the soldiers to a hospital where they were receiving medical treatment, the soldiers once again gave a good account of themselves.
Nigerian intelligence and security operatives will be among the most efficient in the world if provided with the necessary facilities. Nigerian military officers are always in high demand for peacekeeping operations, having excelled in such places as the Congo in the 1960s, in Lebanon in the early 1980s, in Liberia in the 1990s, in Sierra Leone in the 1990s, etc. The Nigerian police have also excelled in international operations right from independence in 1960. They have excelled in the Balkans, in Namibia where in the 1980s they were voted the best (under the command of Mr Ezidimma Ifejika) out of the police forces from 50 countries around the world, and in Haiti where some four years ago the United Nations performed a special ceremony in New York to honour the exceptional performance of our police officers. If our security agents perform outstandingly in international assignments but do not display the same quality at home, it follows logically that the problem is not in the nature of these men and women. The problem has to do with the local system. It has to be changed. But this is a matter for another day.
THE POWER SECTOR REFORM
The reform of the environment which we advocate for the intelligence and security agencies in Nigeria for optimum efficiency has since started in the electric power sector. True, the reform preceded the Jonathan presidency because the extant Electric Power Sector Reform Act was enacted by the National Assembly in 2005. Yet, the reform has become synonymous with President Jonathan because he has pursued it with far greater commitment than any other person. The Road Map for Power Sector Reform, which he launched on August 26, 2010, in Lagos to the applause of the Nigerian people and the international community, remains to this day the most comprehensive document on electricity development in Nigeria. Complete with timelines and costs over a considerable period, the interpretation of the Electric Power Sector Reform Act, as enunciated in the Road Map, makes the document truly a tour de force.
Some of the highlights of the Electric Power Sector (EPSR) Act of 2005 are the closure of the state-owned power utility named National Electric Power Authority (NEPA), its replacement with the Power Holding Company of Nigeria (PHCN) (though as a transitional company that would exist for only 18 months), the creation of 18 companies out of the state-owned power monopoly, the liberalization of the power sector and the consequent privatization of the 18 PHCN successor companies. There are other highlights like the creation of the Nigerian Electricity Regulatory Act (NERC) and the Rural Electrification Agency (REA).
ESPR(2005) ACT IMPLEMENTATION
It is a pity that sweeping and ambitious as ESPR(2005) Act is, its implementation has not been the best. For instance, the PHCN ought to have stopped to exist as a legal entity since 2007 (that is, 18months after the Power Reform Act came into existence), yet it still exists. The operation of the REA was suspended in 2009 following reports of the discovery of a 5.2 billion naira fraud allegedly involving top officers of the agency, the Ministry of Power and National Assembly members. The suspension was wrong because the REA is a creation of the law which, far from being amended or overturned, has remained in existence as it was enacted. The NERC leadership was also suspended in the wake of a purported uncovering of a fraud. The leadership compromising the chairman, vice chairman and commissioners was thus replaced with a sole administrator. The office of sole administrator was unknown to the law establishing NERC. The consequence of this executive action was that investor confidence in the legal and regulatory framework of the Nigerian power sector became threatened at many points. Investment in the sector dried up quickly. This is not surprising. Capital is a coward. It goes to the safest of places. That is why anytime the political stability of any place is threatened existing investors look for the nearest exit door and prospective investors thank their stars they have not fully parted with their funds.
COMPLYING WITH THE LAW
In recognition of the centrality of full compliance with the law, especially with the ESPR Act of 2005, in order to restore the confidence of investors and the general public in the power sector reform, President Jonathan decided from day one to make his administration adhere strictly to all relevant laws. The Rural Electrification Agency has been brought back fully. It now has a Managing Director, and not a sole administrator whom most people considered to be a more or less an undertaker. The REA has a reasonable vote in this year’s budget. Still, the funds available are still a far cry from its requirements. There are about 2,000 communities in Nigeria without electricity. This is not acceptable to the Jonathan Administration which regards electricity as a fundamental right of the Nigerian people. By the time the REA operations were suspended in 2009, there were some 1,970 ongoing electricity projects in various rural communities in the country. What is more, contractors handling REA projects are currently owed N3.2billion. Some of the contractors borrowed huge amounts from banks at high interest rates, with some having already lost the properties they used as collateral. Some of the contractors have unfortunately died, heartbroken, poor and still indebted.
As part of the commitment to the rule of law, President Jonathan has long reconstituted the leadership of the Nigerian Electricity Regulatory Commission. The leadership structure is now consistent with provisions of the ESPR Act. The result of all this is renewed confidence in the power sector at home and abroad.
SOME AFFIRMATIVE INDICATORS
At no time in our national history has the power sector in Nigeria excited the investor community as it has done since 2010 when President Jonathan resumed the implementation of the EPSR Act and followed it up with the launch of the Road Map for Power Sector Reform. He has done other things to demonstrate an unflinching commitment to the success of this sector. For example, he has long revived the Niger Delta Power Holding Company (NDPHC), which is the intervention agency implementing the ambitious National Integrated Power Project (NIPP). The NIPP will add about 4,700MW to the national grid. It is, among other things, adding 4,000 kilometers of transmission lines to the national electricity asset base. The NIPP was in limbo for about three years preceding President Jonathan’s assumption of office. Under this dispensation, however, things are taking a new shape. Working in collaboration with the Senate, this Administration has been able to identify and recover hundreds of power equipment containers belonging to either the NIPP or the PHCN which were abandoned at the seaports for years or auctioned or declared missing. On Thursday, June 7, 2012, I went to one of the terminals in Ikorodu, Lagos State, to inspect some of the containers.
Given the Jonathan Administration’s devotion to Nigeria’s electricity development, it is not surprising that the international community, which has for several years adopted a largely negative attitude towards Nigeria, has demonstrated an unparalleled interest in the power sector. When the Bureau of Public Enterprises (BPE) called in 2010 for of Expressions of Interest (EoIs) in the privatization of PHCN assets, an unbelievable 331 EoIs were received. The EoIs came from reputable companies across the world. 135 of the EoIs have now been shortlisted by the National Council on Privatisation to bid for the assets next month. The bids will be processed and evaluated shortly after, and the results announced in good time. The entire privatization will be conducted in the finest tradition of transparency and in line with the best international practice. The privatization process must be concluded this year. As you know very well, the president has warned that in no circumstance will anybody be allowed to tamper with the process, nor can the date be shifted by even a second. I would like to state here for record purposes that the privatization timetable was shifted from March–May to July—October, this year, at the behest of prospective bidders.
It is also important to remark here that one of the 18 PHCN successor companies will not be privatized. The Transmission Company of Nigeria (TCN) will remain government-owned but managed by a firm with a robust record in this field. Manitoba Hydro international of Canada will from next month sign the management contract for the TCN. This is a major development in the reform of Nigeria’s power sector.
The World Bank has long keyed into the reform. It is providing Partial Risk Guarantee (PRG) to the Bulk Electricity Trader, a new firm established and its board appointed within the original timetable of the Road Map for Power Sector Reform. The PRG is to provide comfort and confidence to power producing companies. It assures them that any quantum of power they produce will be paid for. This firm assurance has become necessary because none of the 11 electricity distribution companies is right now creditworthy. Once they become creditworthy, the Bulk Trader will cease to exist because the distribution companies will now be dealing directly with power producers.
It is a measure of the international investor confidence in our reform that General Electric, the world’s largest electricity company, has signed a Memorandum of Understanding (MoU) with the Nigerian Ministry of Power to assist produce 10,000Megawatts within a decade. What is more, GE will take 10 to 15% equity in new plants. This is remarkable because even though GE has for decades sold turbines to Nigeria, it has never invested a kobo in the local economy. The icing on the cake is that GE will start to produce its turbines in Nigeria, the first time it will ever do so in West Africa. Siemens of Germany does not want to be left out. It has, therefore, decided to participate in the building of plants to generate 10,000MW in Nigeria. It will, in addition, lead a concerted effort to study how the traditional and alternative sources of power can be integrated in a seamless manner. Siemens will also build a service station in Nigeria, the first time it will have such a facility in the West African sub region.
The United States EXIM Bank signed, in the last quarter of last year, an MoU to provide 1.5billion dollar facility to firms operating in the Nigerian power sector using American products and services. The total amount of credit made available to Sub Sahara the previous year was $1.4b with $200m going to Nigeria. In other words, it is significant that a whopping $1.5b is now coming to the Nigerian power sector alone.
At this juncture, I would like to repeat the obvious: none of these firms is Santa Clause or Father Christmas. Each is rather run by hard-nosed businessmen and women. They are enthusiastic about the Nigerian power sector simply because they recognize that this is where the action is right now. Nigeria is a huge market. The telecoms companies are doing very well in it. Considering that power is a much bigger sector than telecoms, far-sighted businesses taking an advance position in respect of the ongoing power reform will benefit enormously from it. Prudent investors go beyond scary newspaper headlines to make key business decisions. Companies like Vodafone of the United Kingdom, which got swayed by stereotypes about Nigeria when it was invited to invest in the country’s GSM market following the liberalization of the telecoms sector in 2000, still regret their costly action.
CAPACITY EXPANSION
When President Jonathan assumed office in May, 2010, the quantum of power generated in Nigeria was about 2,800MW. The figure spiked by 1,000MW within one year. The increase was mostly through recoveries from existing plant capacities. By January, 2012, we were generating a record 4,400MW. The transmission infrastructure, which could not wheel 3,800MW in August of 2010 when the country generated 3,800MW for the first time, was able to wheel 4,400MW this time. This development meant a massive improvement in the transmission facilities. Of course, this kind of incremental improvement is not what a nation like ours needs, as we must leapfrog. It is, therefore, delightful that the president has approved the building of a Super Grid of 765kv, more than a double of the capacity of existing transmission lines which are either 132kv or 320kv.
The highest quantum of power which we have ever generated in Nigeria’s history is 4,400MW—and it was produced in January, this year. This quantum of power is far from satisfactory. Ours is a nation of 167m. South Africa, a nation of 47m, generates 40,000MW. Yet, South Africa has been suffering load shedding since 2008 because of insufficient power availability. In other words, if we produce 40,00MW by 2020, which is our national goal so as to become one of the 20 largest economies in the world, we should not rest on our laurels.
It is regrettable that by December, 2011, we could technically produce 5,500MW, that is, we exceeded our target by 500MW. Yet, only a little over 4,000MW was actually generated because of gas constraints. Seventy per cent of Nigeria’s power is generated from thermal stations while the remaining 30% is from hydro stations. Huge constraints with both sources of power account for the decline in power availability since the first week of March, this year. The nation expects that with the 12-month emergency in the gas sector which the Ministry of Petroleum Resources recently declared, there will be a substantial improvement in gas supply to the power sector. Still, the volume of gas available to the power sector will not be enough at the end of this period because we should then be capable to technically generate 9,000MW.
As regards power generation from the hydro stations, it is unfortunate that we are experiencing this year the lowest water levels in 10 years in the dams at Shiroro, Kainji and Jeba where the nation’s three hydro stations are located. With low water levels, very little power electricity can be generated from them. The good news is that we are devising a method to ensure availability of sufficient water in the dams all year round, whether there is a near drought in Nigeria or in any part of the West African sub region from where we derive floods to run the hydro stations. As you may have known, the current water problem in the dams arose from the near drought last year in neighbouring West African countries from where we get what is called black flood. This flood gets to its peak every November while the white flood, which refers to flood derived from within the Nigerian territory, gets to its peak in July of every year.
Before the end of July, there will be a remarkable improvement in power supply across the nation. Apart from improved supply from the hydro stations, there will be more gas for the thermal plants in places like Olorunshogo in Ogun State. What is more, some of the units at the NIPP plant at Ihonvbo in Edo State will have been commissioned. A minimum of 1,000MW will be added to the national grid this year, bringing the quantum of power delivered to the grid to 5,500MW. Unlike in the past when there would be an improvement in power supply in one month only for it to dip the next month, the improvement this time will not be reversible. It can only get better, from month to month and from year to year.
It should be added here that this Administration takes the question of electric power mix seriously. We are starting a 1,000MW coal-fired plant in Enugu, another in Kogi and yet another in Gombe. Nigeria’s coal is among the best worldwide, as it contains very little sulphur. Coal is the most significant source of electric power in the United States and South Africa, among other places. We are also developing in conjunction with the Federal Ministry of Water Resources the development of small dams across the country with a viewing to getting off grid electricity. Many of you may have known that the Ministry of Power is developing big hydro stations in Zungeru, Gurara and Mambilla. As part of the effort to diversify our power mix, a 10MW wind farm is about to be commissioned in Katsina. We are conducting studies to develop solar energy on a substantial scale, all the more so given the declining cost of developing solar energy. Studies are also being conducted on the possible use of nuclear energy. We are doing so fully aware that Japan has just phased out nuclear plants in its territory. Germany, another highly developed country, has also just taken a step against its development of nuclear energy.
DEVELOPMENT OF HUMAN CAPITAL
In recognition that human beings are both the means and the end of development, the Jonathan Administration, right from inception, decided to make the improvement of the welfare and capacity of the workforce in the power sector a priority. The president in 2010 requested the National Assembly to approve a 57billion naira vote in the supplementary budget for the payment of monetized benefits to PHCN employees which were denied them since 2003 when the Government introduced the monetization of fringe benefits to public servants. Some 99% of PHCN employees have since been paid; those yet to be paid are those with incomplete records, and each will be paid the moment the full records are presented.
In June, 2011, the Government approved a 50% increase in the salary of the PHCN staff to incentivise them for greater productivity. To enable a smooth takeoff of the new salary, the Government made available to the PHCN a 9billion naira grant (not loan) for the payment of the 50% increase for the months of June, July and August, 2011. The Government also decided to convert some PHCN 11,000 casual workers to the permanent staff, with even retroactive effect! As you are listening to this lecture, many of such workers are receiving letters regularizing their appointments. To make PHCN employees part owners of the 17 PHCN successor companies to be privatized this year, the Government has long decided to reserve a certain percentage of shares of the companies for only PHCN workers.
Worried at the abandonment since 1989 of the famous structured PHCN training programme of its staff, the Government has resolved to take the National Power Training Institute of Nigeria (NAPTIN) to a proper pedestal. The forthcoming boom in the power sector will require a huge infusion of well trained human capital into the system. Ten brand new Government-owned power plants will soon be commissioned, in addition to new substations all over the country. Independent Power Projects are also being established. Where are the human resources to run these facilities? This is why NAPTIN is critical to the success of the impending revolution in the power sector. NAPTIN is about to commence the training of 500 young engineers for one year so that they can become authentic power professionals.
TARIFF REVIEW
The Electric Power Sector Reform (EPSR) Act of 2005 vests in the Nigerian Electricity Regulatory Commission the power to adopt any tariff methodology it deems appropriate for the nation. NERC adopted some seven years ago the Multi Year Tariff Order (MYTO) methodology. This means a major tariff review every five years. The law makes it mandatory for NERC to adopt a tariff which is fair and just to the Nigerian people as well as to investors. The periodic major review does not necessarily imply an increased payment by every consumer. For instance, in the second MYTO, which came into effect on June 1, 2012 (even though it ought to have started on January 1), the less privileged ones in society who consume 50kilowatts hour or less in a month now pay less. They now pay N4 per kilowatt hour, instead of N7. Meters are now to be given them free of charge. They are no longer required to pay either for meter maintenance charge or fixed charge. In this year’s budget, there is a provision of an almost N50b subsidy for low income earners. This subsidy must be differentiated from the petroleum subsidy because, among other differences, there is no cash involvement at all in electricity subsidy. All the Government has tried to do is to prevent the less privileged from paying heavily for electricity consumption which is an item of need, and not an item of want.
The middle class now pays a slight increase of 11%, and not 88% which has been reported in some media. But rich peopl and other high end consumers now pay a cost reflective tariff. Different studies have shown that Nigerian citizens and businesses are willing to pay a little higher if guaranteed regular and quality electricity. The cost of electricity self generation is prohibitive. Besides, self generation pollutes the environment and even wipes out whole families who inhale carbon monoxide in their sleep.
The new tariff should enable the PHCN to generate up to N22.5b monthly, the irreducible amount it needs to make in order to meet its obligations to primary suppliers like Shell, Agip, Ibom Power, the NIPP and the Nigerian Gas Company. Indebted to the tune of N400b, the PHCN has hitherto been paying the International Oil Companies (IOCs) only 50% of their services. Should the IOCs be forced to carry out their long standing threat of stopping further supplies to the PHCN, it will be calamitous for the whole nation.
Indeed, more investments are critically needed in the power sector. Fresh investments of $10b annually are needed for the next decade to enable our country to generate 40,000MW by 2020 so that we can become one of the 20 biggest economies in the world by 2020. We must encourage companies like Shell, Agip, Siemens, Daewoo, GE and the rest to continue to have confidence in our country. After all, return on investment is much higher in Nigeria than in practically every country in the West. Investors in infrastructure are doing quite well, as demonstrated by those who have invested in telecommunications in the last decade. The power sector is the next theatre of action.
Let us conclude this conversation by calling to mind the title of a prophetic poem by the late distinguished South African writer and anti-apartheid activist, Dennis Brutus. In “The Sun On This Rubble” published in the 1980s, Brutus predicted that the racist government in South Africa would be terminated within a few years. Cynics thought that Brutus was too optimistic. But the apartheid system did crumble irreversibly in the early 1990, and Nelson Mandela became South Africa’s first popularly elected president in 1994.
The sun has been shining on South Africa since 1994. It is about to start shining on the Nigerian power sector. God bless Nigeria.
