Free Electricity: A Dangling Reps’ Initiative?, By Joshua Egbodo
POLITICS DIGEST – Days into suspension of the National Assembly in line with preventive measures introduced by the federal government of Nigeria, to halt the spread of COVID-19, a member of the House of Representatives, and Chairman of the committee on Air Force, Hon Shehu Koko came up with a call on the government to suspend payment obligations on Nigerians for certain utility bills for two months, one of which he suggested was electricity. He said he was concerned about ordinary Nigerians in view of the dwindling economic fortunes expected from the lockdown.
Koko, a member of the All Progressives Congress (APC), who represents the Maiyama/Koko/Besse Federal Constituency of Kebbi state, in a statement the said ” Our country is going through trying times just like the international community. While we continue to pray for God to come to our rescue, I urge the federal government to provide basic amenities like water and electricity at no cost, especially those at the grassroots level without interruption”
He continued that with this, “I believe will go a long way to assist the federal government’s decision to provide relief materials to citizens this period.
“Though these amenities are private sector driven, we urge the government to intervene and ameliorate the sufferings of the people”.
He commended the earlier announced palliative measures intended by the President Muhammadu Buhari-led government, but noted that his suggestion, if adopted would be of added advantage to common Nigerians, as they obey the sit-at-home order of the federal government, which began on March 31, 2020.
Gbjabiamila keyed in
While responses were on by Nigerians that it was a noble idea, the Speaker of the House expressed support for the move. He said the stakeholders would be engaged to see the workability of the suggestion, and subsequently initiated series of meetings with different strategic groups on how to cushion the effect of the lockdown, using free electricity supply for Nigerians.
Stakeholders collectively meet
A later meeting was to hold on Wednesday March 15, 2020, with the various stakeholders in collective attendance. Present were the Minister of Power, Mamman Sale; Chairman and Chief Executive Officer (CEO) of the Nigerian Electricity Regulatory Commission (NERC), James Momoh; Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari; Managing Director/Chief Executive Officer (CEO), Nigeria Bulk Electricity Trading Cmpany (NBET), Marilyn Amobi, as well as representatives of Distribution Companies (DISCOs).
Also at the meeting were Majority Leader of the House, Alhassan Ado Doguwa; Chief Whip, Hon. Mohammed Tahir Monguno; Deputy Leader, Hon. Peter Akpatason; Deputy Chief Whip, Hon. Nkeiruka Onyejeocha; Minority Leader, Hon. Ndudi Elumelu, and Chairman, House Committee on Power, Hon. Magaji Da’u Aliyu, among others.
What was said
Gbajabiamila in his remarks described the proposed free electricity supply as the best stimulus package Nigerian government can give to its citizens at the moment, explaining that the essence of the meeting was to proffer means of alleviating the socio-economic effects of COVID-19 on Nigerians during and after the crisis period, through the supply of power.
“We are here to find out how we go about it. I’m happy that in my previous engagements with the NNPC GMD, he was very interested. Whatever the issues are within the power supply chain, they have to be dealt with and set aside, but how we deal with the issue at stake is why we are here today (last Wednesday).
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“This is not about technicalities or blaming any part of the power supply value chain; it is just about how we find a solution. The objective is very simple: we are asking people to stay at home for several days or weeks, so we need to make their stay at home comfortable. We need to help the poorest of the poor at this time in Nigeria.
“How we go about it is why we are here today. So, the mandate is very simple with all the stakeholders here. I believe that the best stimulus that we can give our people right now is the supply of electricity to the very vulnerable households.
“Even if we agree that this proposal as an investment scheme according to the power sector stakeholders, I think we need to keep our eyes on the ball. What is that ball? Get to the end-user, who is the beneficiary of that investment scheme. I wouldn’t want to look at it as the DisCos or GenCos or even the Transmission Company as the beneficiaries. For me, the ultimate beneficiary is the Nigerian people.
“If that is what the investment scheme takes, to supply power, it may not be 100 percent, but let’s say 70 or 80 percent, then we would have succeeded”, the speaker said.
He however expressed disappointment over the non-existence of the Power Consumer Assistance Fund, expected to be established by NERC, adding that the Fund would have served the purpose it was meant for, at this point, were it in place as required by section 83 of the Electricity Power Sector Reform Act
“We have broken the law because the law mandated it; it is not optional. It is the Act that mandated its establishment. If that had been set up, way back, perhaps we would have had the fund with which to assist this proposal. This is the kind of time that this fund was anticipating. I think we should look into setting up this fund because we don’t know when next this kind of issue may come up”, he said.
Minister of power
Minister of Power, Mamman in his submissions, said the executive arm is ready to contribute its part to the success of the proposal, noting that “We will give all the support as well as technical advice towards the realization of this objective. We are ready whenever our input is needed”.
NNPC GMD
On his part, the Group Managing Director of NNPC, Kyari noted that the issue of gas supply to the GenCos is critical to power supply, adding that the proposal is workable if the issue of who is to carry the burden of cost and margins in the supply value chain is settled and agreed on by all the parties. He explained further that note had to be taken of the actual beneficiaries of the two-month free supply palliative because not every Nigerian falls into the category of the poorest,
Kyari pointed out that the existence of the industrial sector should be of concern at the end of the crisis period, noting also that though 100 percent uninterrupted power supply is impossible because not enough is generated due to the COVID-19 crisis, as he gave assurance that gas supply would not be an issue, as full supply would be guaranteed once the debt issue has been addressed.
DISCOs
The Distribution Companies on their parts assured that they can deliver the mandate as soon as all the details were worked out.
Implementation
With the seeming agreement among the stakeholders, many are of the opinion that the next step would be how to implement the proposal. Hopeful to analysts on this was however the agreement between the stakeholders after the last meeting, to set up a joint implementation committee on the proposal. How soon would the team be in place? Who is to benefit? When is the gesture commencing, would it remain a dangling proposal? All these are questions, answers to which are desperately being expected by the citizens.
Source: Blueprint
