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DisCos Raise Alarm Over 20 State Governments Owing Electricity Bills

Electricity distribution companies in Nigeria have lamented that no fewer than 20 of the 36 state governments in the country have refused to pay their electricity bills racked up by Government House, and office complexes.

The Executive Director of Research and Advocacy, Association of Nigerian Electricity Distributors, Sunday Oduntan, while speaking with journalists on Monday, said most government agencies were used to free electricity before privatization, saying they have refused to adjust since the sector was privatized.

Oduntan, the spokesman of the Discos, recalled that the Aso Rock villa owed electricity bills before President Bola Tinubu ordered that it be paid.

“But does it have to get to the President for people that work there to know that they have to pay their bill? We shouldn’t get to the point where we have to threaten a state government or a state house, a ministry, a department or an agency with disconnection,” he stated

Oduntan declared, “If you look at all our states right now, at least 20 states are seen to be owing electricity bills in either the government house or MDAs.”

Oduntan regretted that when the Discos attempted to recover the debts from the state governments, they would have their offices sealed over claims of unpaid taxes to the states.

“When the Discos now go to demand for money to be paid, the next day they (government agents) will go and seal off the Discos’ offices, saying they’re owing them some taxes,” he noted.

The spokesman advised Discos to always pay their taxes but warned that states should not be mischievous.

“The Discos should pay their taxes, but the states should not be mischievous and be blackmailing the Discos every time we ask them to pay us.

“There is a state governor who is known for that kind of act. And one day, I hope to be able to come forward face-to-face with him and say, ‘Your Excellency, you have not been excellent. Paying your bill is something that you should know that you should do because when you run your generator in your government house, it costs you a lot more,” he asserted.

“I don’t want to mention the name of that governor or the state. But I will get outstanding debts from all states. I will need to get the information from the Discos. I will not waste time on it,” he stated

The Kaduna Disco had its office sealed after it disconnected the power supply to the Kaduna State Government House and other state government offices over unpaid bills amounting to N2.9bn. The Kaduna Electric headquarters was sealed off by the Kaduna Internal Revenue Service over what it called unpaid taxes of over N600m.

Similarly, the Federal Inland Revenue Service in July sealed the headquarters of the Abuja Electricity Distribution Company, barely a month after the AEDC last published the FIRS as one of its debtors. Its debt was put at N362m as of January.

In 2022, the offices of the Oyo State Government were disconnected by the Ibadan Disco over N450m debt. The government, in return, sealed off IBEDC offices, saying the power company was owing N400m in debt – N139.44m in harmonized bills, N122.59m in infrastructure bills, N116.51m in tax audit bills, and N22m in signage bills.

Last month, the IBEDC said the Ayede transmission station was locked down by the Oyo State Government, impacting its ability to supply power to some areas in the state.

A few days after it issued disconnection notices over unpaid electricity debt, the corporate headquarters of the Enugu Disco and its offices were sealed off in June by the Enugu State Government. EEDC said the Enugu government alone was indebted to it to the tune of N1bn, out of a total of N1.8bn unpaid electricity debt in the region.

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Dangote Group Debunks NNPC’s Claim Of Buying Petrol At N898 As ‘Misleading’, Says Products Sold In Dollars, Not Naira

Dangote Group has described a statement by the Nigerian National Petroleum Company (NNPC) Limited that it bought petrol at N898 per liter as “misleading and mischievous”.
The NNPC earlier on Sunday announced its fuel purchase from Dangote Refinery at a rate of N898 per liter. NNPCL dispatched about 300 trucks to the 650,000 barrels per day capacity refinery in Lagos on Saturday, with loading operations commencing on Sunday.

A spokesperson for the NNPCL, Olufemi Soneye, on Sunday, told Daily Trust the company bought the fuel at N898 per liter contrary to reports claiming N760
“We successfully loaded PMS at the Dangote Refinery today. The claim that we purchased it at N760 per liter is incorrect. For this initial loading, the price from the refinery was N898 per litre,” he said.

However, in a statement on Sunday evening, Anthony Chiejina, Dangote Group’s Chief Branding and Communications Officer knocked the claim made by the NNPC.

He said, “Our attention has been drawn to a statement attributed to NNPCL spokesperson, Mr. Olufemi Soneye, that we sell our PMS at N898 per litre to the NNPCL.

“This statement is both misleading and mischievous, deliberately aimed at undermining the milestone achievement recorded today, September 15, 2024, towards addressing energy insufficiency and insecurity, which has bedeviled the economy in the past 50 years.

“We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing, by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Ahmed Tinubu GCFR, which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars.

“It should also be noted that we sold the products to NNPCL in dollars with much savings against what they are currently importing. With this action, there will be petrol in every local government area of the country regardless of their remote nature.”

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Remittances Hit All-time High In July At $553m – CBN

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The Central Bank of Nigeria(CBN) has reported a significant increase in remittance inflows, reaching $553 million in July 2024, a 130 percent increase from the corresponding period in 2023.

This figure represents the highest monthly total inflows on record and reflects ongoing efforts by the CBN to enhance liquidity in Nigeria’s foreign exchange market.

A statement issued by the apex bank and signed by its acting director, Corporate Communications, Hakama Sidi Ali, noted that the growth in remittance receipts is attributable to policy measures introduced to enhance liquidity in Nigeria’s foreign exchange market. These measures include granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and enabling timely access to naira liquidity for IMTOs.

Noting that diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments, it said, the CBN’s initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year.

“The increase in remittances is a strong testament to the success of the CBN’s ongoing efforts to bolster public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability, essential for sustained economic growth,” she stressed.

Recent data from the National Bureau of Statistics (NBS) revealed that Nigeria’s year-on-year headline inflation rate slowed in July 2024, for the first time in 19 months a clear indication that the CBN’s monetary policy tightening measures are delivering results.

To her, “the CBN anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market. The Bank will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria.”

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NNPC Boss Dissociates the Company from Allegation of Importation of substandard products

Group Chief Executive Officer of the Nigerian National Petroleum
Corporation (NNPC) Limited, Mr. Mele Kyari, has said the company is absolutely
nothing to do with the importation of substandard petroleum products into Nigeria
The spokesperson of NNPC, Olufemi Soneye, quoted Kyari saying this during a
Senate hearing investigating alleged economic sabotage in the Nigeria Petroleum
Industry on Wednesday in Abuja.

According to the statement released by Soneye, Kyari said the national oil company
has not breached any of the enabling laws guiding its dealings with partners.

Politicians, celebrities, and ordinary citizens weighed in on the debate. While many came to her defense, others argued she should be disqualified

He added that Investors in local refineries ought to secure its feedstocks as well as find
a market for its refinery.
According to him, this is a straightforward part of the refining business

“Refining business is a straightforward business. You must secure (a source for) your
feedstock and you must find a market. This is basic and this determines what
happens in any refinery anywhere in the world. That is the business of refining. We
have done nothing to sabotage any domestic refinery.”

According to the GCEO, the law is clear on domestic crude oil supply obligations
and also on providing for local refineries. However, Kyari added, that the same law
also said that there must be a willing buyer and a willing seller.

Speaking on the allegations of the importation of low-quality petroleum products into
Nigeria, Soneye conveyed Kyari saying that NNPC has no involvement in such matter.

He added that the regulatory agencies are bound by the law not to allow the
importation of substandard products into the country. Moreover, Kyari said there is enough infrastructure in the country to produce 2 million barrels of crude per day but the challenges of crude oil theft, pipeline vandalism and absence of investment in the upstream are the major factors hindering the sector.

“On the alleged importation of sub-standard products into the country, Kyari said the
NNPC Limited has nothing to do with that as the relevant regulatory agencies will, by
law, not allowing any sub-standard product into the country.

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