Nigerian Newspapers
Have we crossed the Rubicon?
Contrary to the gloomy picture initially painted by the Roundtable of Distribution Companies (the Disco Roundtable) 13 of the 15 preferred bidders for the distribution (Discos) and Generation (Gencos) companies finally met the deadline for the payment of the balance of 75 per cent of their bid price for the unbundled PHCN companies thus raising the hope of a light at the end of the tunnel after all
It initially looked like an exercise that was destined to hit the rock. Few days before the expiration of the August 21 deadline issued by the Bureau of Public Enterprises to the preferred bidders of the 15 Distribution and Generation Companies to pay up the remaining 75 per cent bid price, the 10 Distribution Companies (DISCOs) raised the alarm that it would not be able to meet the deadline and asked the government for a one month extension.
The DISCOs had sounded it loud and clear that they would not pay the outstanding balance of 75 per cent of the bid price on the August 21 deadline unless and until the Federal Government settles all liabilities due to the employees of Power Holding Company of Nigeria, PHCN and fulfi ll all other conditions precedent in the privatization agreement.
Led by former Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Ransome Owan, the Discos had told the Minister of Power, Prof. Chinedu Nebo that one of the conditions precedent for the conclusion of the privatisation was that the DISCOs would be handed over free from all legacy liabilities.“Our lenders are mindful of this and are reluctant to approve loans and condition drawdown until all conditions are met. Therefore, it is vital for full payment obligations to the current PHCN employees be fi nalised by the long stop date of 21 August, 2013. Lenders expect evidence of these payments before we can draw down on funds to complete our payments,” he said.
Owan had raised a plethora of issues which the DISCOs had wanted the government to address, including the conclusion of all labour issues; release subsidy fund contained in the Multi-Year Tariff Order (MYTO) model for each of the distribution companies; fund the Transmission Company of Nigeria (TCN) adequately; issue an extended fi ve to 10 years special tax holiday for electricity distribution akin to the telecoms start-up assistance to mitigate tariff increase and high cost; and extend the longstop date to September 21, 2013 to allow for the full satisfaction of all conditions by government.
Dr. Owan had insisted that lenders are reluctant to approve loans and condition drawdown until they see the evidences that all outstanding payments, particularly to the union before they can draw down on funds to complete the payments.
With the long list of conditions, many had envisaged that the privatisation of the power sector which is nearing conclusion may eventually run into a hitch, especially as the Federal Government on its own insisted that the date for the payment would not be shifted, not minding the issues raised by the DISCOs.
However, in what appeared to be more like a volte face, the same DISCOs that Owan had led to Nebo to ask for extension ultimately met the payment deadline as at the close of business last Wednesday, August 21, leaving only two in the lurch.
Interstate Electrics Consortium, whose members include Emeka Offor’s Chrome Energy, Power House International Limited and Metropolitan Electricity Authority of Thailand, the preferred bidder for Enugu Distribution Company, was unable to pay the balance before the expiration of the deadline, while North South Power bidding for Sapele power station made a part payment.
Those that met the deadline included West Power and Gas, Integrated Energy Distribution and Marketing Company; Amperion Power Company Limited; NEDC/KEPCO, the preferred bidder for Ikeja Distribution Company; Vigeo Consortium, for Benin Distribution Company; 4 Power Consortium for Port Harcourt Distribution Company; Aura Energy for Jos Distribution Company; Kann Consortium for Abuja Distribution Company and Sahelian Power for Kano Distribution Company.
Others are Tony Elumelu’s Transcorp/Woodrock Consortium, the preferred bidder for Ughelli Power Plc; Mainstream Energy Ltd, the preferred bidder for Kainji Power Plc; Amperion for Geregu, KEPCO for Egbin and CMEC/ EUAFRIC Energy JV, which made part-payments for the acquisition of Sapele Power Plc, have met the deadline.
Under the privatization programme, any of the preferred bidders that fail to meet the deadline would forfeit its initial 25 per cent payment while the company would be offered to the reserved bidder. : “Any bidder that failed to meet his obligation will lose the slot for that company, and we will hand it over to the reserved bidder,” said Atedo Peterside, Chairman, Technical Committee of the National Council on Privatisation.
So, as it stands, if the Bureau of Public Enterprises (BPE) were to follow strictly the terms of the scheme as it is expected to, Interstate Electrics Consortium would lose the bid to Eastern Electric Company, which has already declared its preparedness to pay $ 126 million for the takeover of the company.
Eastern Electric Company is a consortium formed by the fi ve South-east state governments; Nestoil, a major indigenous operator in the upstream sector of the petroleum industry; Aba Power Ltd and Geometric Power Ltd, led by former Power Minister Bart Nnaji and Diamond Bank’s founding chairman Pascal Dozie, among others.
The company, in a statement by its communication
consultant, Don Adinuba said it has a robust and matchless combination of global best practices and the best experience of emerging economies. “We shall not have diffi culty raising the funds. The Bureau of Public Enterprises is still holding on to our $ 10m bank bond raised when we were bidding for the Enugu Disco. As all Nigerians must have known, the 141MW Aba integrated power project built by Geometric Power and which cost over $ 450 million is about to be commissioned,” the statement said.
Other members of the Eastern Electric Company Company include NRECA of the United States which operates in Latin America, Pakistan, Sudan, Bangladesh and controls 10 per cent of the United States one million Megawatt grid amounting to some 100,000MW, and the NETGroup of South Africa which operated Tanzanian power and maintains a signifi cant presence in South Africa’s electricity business.
“We have a robust and matchless combination of global best practices and the best experience of emerging economies.
Analysts have equally said that the failure of Interstate Electrics to pay for the Enugu Electricity Distribution Company, may have even foreclosed the legal tussle between it and Nnaji’s Geometric Power over Aba and Ariaria Market Business Units of the Power Holding Company, PHCN.
Geometric Power Ltd had sued the BPE over Interstate’s claim and Interstate requested to be in the suit as an interested party. Geometric had insisted that the two business units are excluded from the Enugu Distribution Company based on its 2005 agreement with the Federal Government and amended in 2006.
With the payment, the bidders are expected to take full control of the various companies and commence the implementation of their various turnaround initiatives that are expected to engender a new phase in the troubled power sector.
Already, Prof. Nebo, in a statement had stated that the completion of payments entitled the bid winners to fully take over the power fi rms. Nebo described the privatization as a great milestone in the Power Sector Reform Roadmap that should give hope to Nigerians and inspire confi dence in government’s power reform programme and President Goodluck Jonathan’s Transformation Agenda.
The minister said he would soon formally declare the Transition Electricity Market, TEM, to enable the investors commence business in earnest and further drive the process.
Nebo also reassured all Nigerians and investors of government’s resolve to pursue the transformation agenda to the end and monitor the emerging transition market in order to protect the interest of the citizenry and the investors.
He said the stability of the national grid was being enhanced to ensure effective transmission of any quantity of power being generated in the new dispensation, adding that efforts were also being made to provide more electricity off-grid, especially for the rural areas, while also sustaining subsidy for low income electricity consumers.
So far, Business Courage learnt that the Federal Government may have raked in about $ 2.238 billion or N358.045 billion, an equivalent of 7.18 per cent of the 2013 budget of N4.987 trillion, thus making the exercise the biggest privatisation sales ever in the history of Nigeria and Africa.
The sum is derived from the $ 559.44 million already paid by the 14 bidders as 25 per cent of the total cost of their bids for the respective DISCOs and GENCOs unbundled from PHCN and the balance of 75 per cent paid by 14 of the bidders.
However, how well the remaining part of the process would go, will to a large extent determine whether Nigeria’s has indeed crossed the Rubicon.
At the stakeholders meeting led by Dr. Owan, the new owners had raised some issues which industry analysts say need to be addressed to fully enjoy the benefi t expected from the exercise.
These include the Transition Electricity Market, TEM, which they said would herald the start of contractual arrangements in the power sector and the automation of billing and metering operations of the market operator in line with market rules.
The investors had also noted that conditions precedent that were yet to be fulfi lled include the completion of metering of the grid interface points; testing of the market operators settlement systems and processes and constitution of dispute resolution panel without which the Nigerian Electricity Regulatory Commission, NERC, could not advise the Minister of Power to declare the start of TEM.
They had also pointed out that industry agreements, including power purchase agreements, vesting contracts and transmission network agreements, which underpinned industry revenue, would be deemed illegal and a nullity until the declaration was made by the minister.
Of serious concern was the issue of revenues as the investors said DISCOs were operating at a loss and buyers would quickly deploy their respective turnaround plans, but a cost refl ective tariff, which guarantees regulated return and covers all industry payments, was not yet producing the desired results due to systemic and structural problems.
This means that if the DISCOs were unable to cover the cost of the energy delivered by the bulk trader, the Transmission Company of Nigeria, TCN, and the generation companies, would be adversely affected. Thus calling for the release of the subsidy contained in the Multi-Year Tariff Order, MYTO, model for each DISCO.
Other demands include adequate funding of the TCN to enable it to adequately evacuate power produced for DISCOs as well as the grant of fi ve to 10 years special tax holidays for electricity.
Already, some analysts have punched holes in some of the demands, particularly as it has to do with the issue of subsidy or tax holiday for the investor.
An industry expert who wished to remain anonymous told Business Courage at the weekend that the new owners were assumed to have done their homework before putting down their money, stressing that “If they were building new facilities on the prompting of the government, this could apply.”
He said that the electricity market is huge in Nigeria with all citizens underserved at the moment, stressing that they will make their money in no time with the right strategies and investments. “For me, the most important aspect of this milestone is the potential transformational effect on the economy. Availability of power will easily translate into lower cost for businesses and more job creation opportunities as Nigerian goods become more competitive in the local international market. It will reduce the billions spent on diesel and petrol for generators. Small business without capacity to absorb and spread costs will thrive,” he said.
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Posted in Nigerian Newspapers. A DisNaija.Com network.
Source: National Mirror Newspaper
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•Deploy more personnel as army chief vows to wipe out terror group
•Security beefed up at N’Assembly
Deji Elumoye and Kingsley Nwezeh in Abuja
Abuja, Nigeria’s seat of power, is under a massive security cordon following threats of attacks by insurgents and the increasing wave of banditry in the contiguous states of Kaduna, Kogi, Nasarawa and Niger States, THISDAY’s investigation has revealed.
There has been a wave of kidnappings in the outskirts of the federal capital, notably Pegi, Tuganmaje and Kuje among others, which the police have battled in recent times.
The security situation in and around the Federal Capital Territory (FCT) was heightened by the pronouncement of the Niger State Governor, Mr. Sani Bello, that Boko Haram fighters who he said sacked 50 villages in the state and hoisted the terror group’s flag, were about two hours drive away from the FCT.
Security has also been beefed up at the National Assembly as operatives, yesterday, thoroughly screened every vehicle approaching the National Assembly complex in Abuja.
The deteriorating security situation nationwide prompted the National Chairman of the Peoples Democratic Party (PDP), Prince Uche Secondus, to warn that the 2023 general election may not hold, demanding the declaration of a state of emergency as well as the convocation of a national conference.
However, the Chief of Army Staff, Lt. Gen. Ibrahim Attahiru, yesterday restated the Nigerian Army’s determination to annihilate Boko Haram.
But the Governor of Katsina State, Hon. Bello Masari, cautioned against declaring a state of emergency, saying doing so isn’t the solution to combat the security challenges facing the country.
The security of the nation’s airports was also in focus yesterday as the Office of the National Security Adviser (ONSA) said there was no threat to them.
THISDAY’s investigations showed increased presence of troops, police, Nigerian Security and Civil Defence Corps (NSCDC) personnel and intelligence operatives at the three strategic entrances to the city notably, Keffi, Zuba and Gwagwalada.
More checkpoints were also mounted around Gwagwalada and Keffi.
THISDAY also observed increased intelligence deployment at the entrance and the borders of FCT with contiguous states.
Beyond the borders, there were more deployments and police patrols inside the city and increased intelligence deployments as well.
Security sources told THISDAY: “There are deployments here and there but they are routine. Alertness is key to a secure environment.”
It was also learnt that security agencies were involved in frenzied meetings throughout yesterday.
The meetings, coordinated by the office of the Chief of Defence Staff under the new joint operational strategy of the armed forces, were aimed at coordinating a joint response to possible threats of attack to the FCT.
“I understand the security teams have been meeting for some days now and if you look around you, you will notice that there are increasing patrols and numbers of security personnel. The threats are not been taken lightly,” a source said.
National Assembly workers, lawmakers and visitors also had a harrowing experience accessing the legislative complex due to heightened security in the area.
Security operatives thoroughly screened every vehicle approaching the National Assembly complex in Abuja, impeding both human and vehicular traffic.
The Sergeant-at-arm of the National Assembly and other security agencies supervised the operations, leading to huge traffic build-up inside the complex.
Legislative staff, visitors and lawmakers were seen patiently waiting for their cars to be searched so that they could go ahead with the business of the day.
Some staff and visitors at some point got tired of waiting and were seen alighting from their cars to trek from the gate to the complex.
Meanwhile, the ONSA has said there is no threat to the nation’s airports.
A statement by the Head of Strategic Communication, Mr. Zachari Usman, said the reports of threats to the airports were an internal correspondence of security threat assessment misconstrued as security threat to the airports.
PDP Demands State of Emergency
In a related development, the PDP National Chairman, Prince Uche Secondus, yesterday demanded the declaration of a state of emergency, warning that the 2023 general election might not hold if the federal government failed to tackle insecurity.
He called on the federal government to summon a national conference to address the spike in insecurity.
Secondus added that the national caucus of the party will meet today to discuss the state of the nation.
Addressing members of the National Executive Committee (NEC) in Abuja, Secondus said: “We are worried Abuja is not even safe. It is no longer politics. We got alert of plots to bomb and burn down our airports.
“We urge the federal government to declare a national state of emergency in security. There is the need to call a national conference to discuss the insecurity in the country.
“There may not be any election in 2023 in Nigeria due to insecurity. This government must listen to the people. The Buhari government should call a national confab to discuss security and state of the nation. It is no longer politics. This time we are not playing politics. Let’s keep politics aside and move the nation forward.”
He said the country had been grounded, regretting that there had been no matching response from the federal government.
Secondus said in the past, terrorism in the North was confined to the North-east, but with the report of Boko Haram occupying villages in Niger State, terrorism had spread to the North-central
“Herdsmen are also menacing in the West; gunmen causing havoc in the East; and the militants in the South; all killing, looting, raping, maiming and burning down homes. The situation is bad; Nigerians all over are living in fear,” he said.
The Senate Minority Leader, Senator Enyinnaya Abaribe, said the problem of Nigeria was outside of the PDP headquarters, while pledging the support of the Senate to the declaration of state of emergency in security.
Abaribe said he deliberately decided not to speak on the floor of the Senate but to allow the APC senators to speak so as to avoid being accused of giving a partisan colouration to the issue of insecurity.
He stated that only electoral reforms would give victory to the opposition party in the 2023 general election and ensure a democratic defeat of the APC-led federal government.
Also, the Minority Leader of the House of Representatives, Hon. Ndudi Elumelu, commended the NEC and the PDP leadership for their collective efforts at resolving the House leadership crisis.
The NEC meeting adopted the position of Secondus, calling on the federal government to convoke a national conference to discuss the state of insecurity in the country, according to a communiqué read by the National Publicity Secretary, Mr. Kola Ologbondiyan.
Army Chief Vows to Wipe Out Boko Haram
The army yesterday reiterated its commitment to wipe out Boko Haram.
Chief of Army Staff (COAS), Lt. Gen. Ibrahim Attahiru, told reporters in Maiduguri, Borno State that Boko Haram had been defeated in many encounters and would continue to be defeated until it’s annihilated from Nigeria.
“We will take on Boko Haram decisively, and we are committed to the focus of the operations, which is the total annihilation of Boko Haram from Nigeria,” he said.
The COAS, who was visiting the headquarters of Operation Lafiya Dole in Maiduguri for the fifth time since his appointment four months ago, said the visit was to boost the morale of the troops, reassure them and listen to any issues affecting them.
Earlier, the Theatre Commander of Operation Lafiya Dole, Maj. Gen. Farouq Yahaya, lauded the visit, which he said had continued to boost the morale of the troops.
“We are honoured, we are grateful, we are encouraged by those visits. You provided us guidance, logistics and other things we required. We are most grateful for those visits,” Yahaya said.
State of Emergency Won’t Solve Security Challenges, Says Masari
Katsina State Governor, Hon. Aminu Masari, has, however, said declaration of a state of emergency won’t solve the security challenges facing the nation.
Masari, who spoke yesterday with journalists after meeting with the Chief of Staff to the President, Prof. Ibrahim Gambari at the State House, Abuja stated that he was against the recent call by the House of Representatives for the declaration of a state of emergency in the security sector as it would not solve the problem.
According to him, declaring a state of emergency will not achieve the desired effect as the security structure and personnel to be used to execute the emergency are already overstretched in a bid to safeguard lives and property.
Sourced From: THISDAYLIVE
Tribune Online
Nigeria records 55 new COVID-19 infections, total now 165,110
The Nigeria Centre for Disease Control (NCDC) has recorded 62 new cases of COVID-19, bringing the total number of infections in the country to 165,110. The NCDC disclosed this on its official Twitter handle on Friday. “55 new cases of #COVID19Nigeria; Lagos-21, Yobe-19, Ogun-6, Akwa Ibom-3, Kaduna-2, Plateau-2, FCT-1, Rivers-1.” YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE COVID-19: Nigeria Recorded […]
Nigeria records 55 new COVID-19 infections, total now 165,110
Tribune Online
Sourced From: Tribune Online
By Olasunkanmi Akoni
The people of the South East region have been urged to explore the power of negotiation and mutual settlement in the face of ongoing killings and security challenges in the zone because the east can not afford another war at present.
Stakeholders from the South-East geo-political zone made the remark on Thursday, at the unveiling of the book, “Igbo, 50 years after Biafra,” written by Special Adviser to Lagos State Governor Babajide Sanwo-Olu on Drainage Services, Joe Igbokwe, held at Ikeja G.R.A.
Speaking at the unveiling of the book, the chairman of the occasion, Mr. Cutis Adigba,
urged the people of the South-East to learn to build bridges across the country, so that they can realise their ambition of producing the next president of Nigeria.
Adigba urged leaders from the zone to discourage the move and agitation by some youths in the South East to go to war and secede out of Nigeria.
Also read: Banditry: Disregard viral video, Niger State gov’t urges residents
He said that Igbo have always found it difficult to rule Nigeria because they refused to build bridges across the six geo-political zones that made up Nigeria.
While describing the agitation as uncalled for, Adigba noted that after two decades that Nigeria returned to civil rule, the Igbo has predominantly identified with only one political party.
He maintained that remaining in one party can not advance the cause of the people of South East and cannot make them realise their objective of producing an Igbo man as president.
He maintained that the publisher of the book, Igbokwe played politics outside his state, so that the Igbo race can be integrated with one another race.
Adigba said the failure of the Igbo to reintegrate with other ethnic nationalities politically was responsible for the retrogression of the race in Nigerian politics.
Igbokwe, also addressing guests on the occasion, maintained that the Igbo are not advancing politically because they refused to be integrated into National politics, lamenting that, despite their success in business, they are not successful in playing politics at the national level.
Corroborating Dimgba, Igbokwe noted that there was the need for the Igbo people to stand up and build bridges so that their objective of producing the next president of Nigeria could be realised.
According to him: “I have decided to raise my voice, I hope my people will hear me while trying to quell the effect of the war, our people are spoiling for another war, mayhem is being unleashed in Igbo land, and there is palpable fear.
“Those who could speak have lost their voice, mindful of the consequences of their actions, I am calling on all Igbo leaders to speak up because all actions carry consequences, consequences of the silence will be too dastardly to sustain.
“Those silently supporting the wild wind should be careful or else they hand over to their children,” he said.
Igbokwe urged those spoiling for war to jettison their plan and embrace dialogue, urging them to learn from the South West region that despite the challenges faced after the annulment of the June 12, 1993, election, they did not go to war, and the region had the opportunity of producing two of her sons for presidential position in 1999.
“You have to build bridges to become president of Nigeria, but it is unfortunate the Igbo are burning bridges.”
Speaking at the event, Chief Uche Dimgba who is the coordinator of Igbo in All Progressives Congress, APC in Lagos, described Igbokwe as “a Frank, fearless and reliable leader, who based his views on issues and stand by his opinions, and we the Igbo have confidence in him and believe he can lead us aright.”
“He is a leader we Igbo believe in and we will follow him. If he can serve all the governors produced in Lagos State since 1999, he is a better man to follow because he possesses all the experience that can be of benefit to Igbo both at home and in the diaspora.”
The post Attacks on S’East: We must explore all options of negotiation — Stakeholders urge Igbo appeared first on Vanguard News.
Sourced From: Vanguard News
The government said that no worker should stay back beyond 6:00 p.m. within premises of buildings undergoing construction.
The post Insecurity: Lagos bans occupation of abandoned buildings appeared first on Premium Times Nigeria.
Sourced From: Premium Times Nigeria
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Nigeria records 55 new COVID-19 infections, total now 165,110
Military, Police Ring Abuja to Forestall Boko Haram Attack
UFC: Usman gets N584m after beating Masvidal
Insecurity: Lagos bans occupation of abandoned buildings
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