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EEDC Operations and the Invitation by Abia House of Assembly

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Enugu Electricity Distribution Company EEDC

By Okechukwu Keshi Ukegbu

Recently, the Abia House of Assembly invited the management of Enugu Electricity Distribution Company (EEDC) to explain its poor power supply to the consumers and other operations.

The invitation came on the heels of a matter of urgent importance by the Speaker of the House, Mr Chinedum Orji, and was provoked by the company’s shoddy operations in the region which includes poor power supply and estimated billing system which is a ploy designed by the company to exploit its consumers.

On the increasing list of the company’s misdemeanours is that it does not repair or replace its faulty facilities. This leaves consumers stranded for a lingered period in their struggles to replace these faulty facilities.

The overwhelming acceptance of the matter received in the House and the hues and cries generated by the public over the periods indicate that EEDC has not fared well in its operations.

There have been several metamorphoses of organisations and bodies governing the use and distribution of electricity in Nigeria. The Electricity Corporation of Nigeria (ECN) ordinance No. 15 came into force in 1950 with the mandate to integrate electricity power development and make it effective. The advent of the ordinance collapsed the electricity department and all those undertakings into one body.

ECN underwent a further metamorphosis in April 1972 when it was merged with the Niger Dam Authority (NDA) to become the National Electric Power Authority (NEPA) with effect from 1 April 1972. The actual merger came into force in January 1973 when the first general manager was appointed.

NEPA was granted the statutory function of developing and maintaining an efficient co-ordinate and economical system of electricity supply throughout the Federation. The decree further states that the monopoly of all commercial electric supply shall be enjoyed by NEPA to the exclusion of all other organisations. Within the metamorphosis circle in the late 2000s, NEPA became a public limited company (NEPA plc). The name was later changed from NEPA plc to the Power Holding Company of Nigeria (PHCN).

Despite this multiple metamorphoses and the huge cash investment by the federal government in this sector, the stories of NEPA, PHCN, and what have you, have been that of woes and incessant cries of disappointment from their numerous consumers.

The awful situation elevated incessant power outages to the status of the norm instead of an aberration. The disappointing situations clothed the organizations with numerous and derogatory metaphors such as Never Expect Power Always (NEPA), No Electrical Power at All; Please Light Candle (NEPA plc), and Please Hold a Candle Now (PHCN), among others.

Perennial power outages, unstable services by these bodies regulating the use of energy in the country informed the radical action by the Nigerian government which gave birth to the Electric Power Sector Reform Act of 2005. This Act called for the unbundling of the national power utility company into a series of 18 successor companies: six generation companies, 12 distribution companies covering all 36 Nigerian states, and a national power transmission company.

The further stipulation made by the act includes that ownership of these companies is granted to the Bureau of Public Enterprises. The unbundling paved the way for an ambitious privatization program to be carried out by the Bureau of Public Enterprises in Nigeria.

PHCN’s existence came to a halt in September 2013, following the privatization programme of Goodluck Jonathan’s administration.

The Nigerian Electricity Regulatory Commission (NERC) was formed as an independent regulatory agency and was guaranteed by the Electric Power Sector Reform Act of 2005 to monitor and regulate the Nigerian electricity industry; issuing licences to market participants; and ensuring compliance with market rules and operating guidelines.

The 2013 divestiture of the federal government from PHCN, divided it into separate companies called Local Electric Distribution Companies or Local Distribution Companies (LDC) with each company responsible for handling electricity distribution in each state or region. The present structure consists of 11 distribution companies, six generating companies, and one transmission company.

Some key arguments reigned supreme at the height of the privatization process. Analysts were of the strong view that key public corporations embedded in critical sectors of the economy such as power are not privatized to protect the citizens against exploitation. It is elementary economics that one of the essences of a public corporation is to provide essential services to the public at a subsidized rate.

Again, if the underlying motive of privatizing PHCN was to break the monopoly, that motive is good as useless. For example, in Aba where the multi-billion Geometric Power Project could have provided a better and strong alternative, the project was highly sabotaged in a manner that strongly is not devoid of politics.

It is incontrovertible that were Geometric allowed to come on stream, residents of Aba, the latest Small and Medium Enterprises-hub would have been rescued from the terrible claws of EEDC, which holds sway in the South East.

The activities of EEDC in Aba are both despicable and exploitative. It is highly inimical to the commercial and artisanship spirits of the town. The attitude of the field workers of the establishment- who are arguably permanent staff- is irritating.

They are impunity epitomized: disconnecting consumers at will even when there is clear evidence of payment of bills; failure to; issue disconnection notices; indiscriminate re-connection charges without the issuance of receipts as evidence of payment. These field workers are lords unto themselves and you dare not question their authority.

The billing system is nothing to write home about. They implement what is called an “estimated or crazing billing system” and the irony of the entire episodes is that consumers may go some months without electricity but are duty-bound to pay bills. It is common knowledge that the payment for products is to derive utility, which is the satisfaction derived from consuming a product. For EEDC, “utility” is a “strange concept”.

The rural communities are not spared in this madness. They are under what is called “the bulk billing system” which runs upwards of N600,000 per month.

Pundits are yet to terms with why rural communities- where it crystal clear that energy consumption is very low because there are no; industrial activities or gadgets that should scale up energy consumption- should be awarded such outrageous bills.

More worrisome is the fact that these rural communities are peopled by predominantly peasant farmers whose means of livelihood are too inadequate to sustain them. The situation has forced communities and individuals to drag EEDC to court.

But this option is as well frustrating because of the delay associated with our judicial system. Some communities that do not consider legal actions as viable options have resorted to self-help by physically manhandling EEDC staff.

On the other hand, the situation has provoked peaceful protests in some major locations in Aba as well some civil society groups are gearing for a showdown with EEDC in form of court actions. Some individuals are agitating for the Enugu State model to be replicated here.

It will be recalled that Enugu State House of Assembly sometimes ago resolved to send the Enugu Electricity Distribution Company, EEDC, out of the state.  The quit notice was informed by various allegations by electricity consumers in the state that resulted in protests to the state legislature.

The motion for EEDC to leave the state was moved by Chinedu Nwamba, representing Nsukka East state constituency on behalf of 22 others. It was alleged numerous unwarranted activities of EEDC in the provision of electricity services to the people of the state which he said had reached an alarming and unbearable stage.

The motion was preceded by scores of protests by electricity consumers in Enugu to the state House of Assembly over incessant power outage, outrageous billing, alarming tariff among other forms of alleged exploitative activities by EEDC.

The Nigerian Electricity Regulatory Commission (NERC) is empowered by the Electric Power Sector Reform (EPSR) Act, 2005 to ensure an efficiently managed electricity supply industry that meets the yearnings of Nigerians for a stable, adequate and safe electricity supply. The Act mandates the Commission to ensure that electricity Operators recover costs on prudent investment and provide quality service to customers.

It is pertinent to note here that electricity consumers are privileged to the following rights:  all new electricity connections must be done strictly based on metering before connection.

That is, no new customer should be connected by a DISCO without a meter first being installed at the premises; all customers have a right to electricity supply in a safe and reliable manner; all customers have a right to a properly installed and functional meter; all customers have a right to properly informed and educated on the electricity service; all customers have a right to transparent electricity billing; all Un-metered customers should be issued with electricity bills strictly based on NERC’s estimated billing methodology; it  is the customer’s right to be notified in writing ahead of disconnection of electricity service by the DISCO serving the customer in line with NERC’s guidelines; all customers have a right to refund when over billed; all customers have a right to file complaints and to the prompt investigation of complaints; all complaints on electricity supply and other billing issues are to be sent to the nearest business unit of the DISCO serving the customer; if a complaint is not satisfactorily addressed, customers have a right to escalate the issue to the NERC Forum Office within the coverage area of the DISCO; customers have the right to appeal the decision of the NERC Forum Office by writing a petition to the commission; it is the customer’s right to contest any electricity bill; any un-metered customer who is disputing his or her estimated bill has the right not to pay the disputed bill, but pay only the last undisputed bill as the contested bill go through the dispute resolution process of NERC; it is not the responsibility of electricity customer or community to buy, replace or repair electricity transformers, poles and related equipment used in the supply of electricity.

It is on this note that a strong is sounded to EEDC to rejig their activities in Aba as not to constitute a clog in the wheel of progress of the city as an SME hub of the nation.

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NIMC Upgrades Diaspora NIN Enrollment Platform, Onboards Partners

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NIMC

By Adedapo Adesanya

The National Identity Management Commission (NIMC) has announced the completion of an upgrade to its diaspora enrolment platform.

A statement by the commission said the upgrade was to improve service delivery and enhance the management of National Identification Number (NIN) registration for Nigerians abroad.

The agency said the upgrade will deliver a more seamless, secure, robust, and efficient process for NIN enrolment in the diaspora.

As part of the initiative, NIMC Diaspora Front-End Partners (FEPs) have been onboarded to the new system and given intensive training to ensure effective application and management of the platform.

According to NIMC, all Diaspora FEPs are required to obtain and activate their enrolment licences on the upgraded platform within the next 48 hours, while Nigerians abroad can access services from compliant partners.

Head of Corporate Communications at NIMC, Mr Kayode Adegoke, apologised for any inconvenience caused during the upgrade process, adding that the commission has set up a dedicated service team to address issues related to diaspora enrolment.

“The commission apologises for any inconvenience the platform upgrade process might have caused and has set up a dedicated service team to resolve all issues related to diaspora enrolment. Diaspora applicants experiencing issues with NIN enrolment should please reach the commission via nimccustomercare@nimc.gov.ng for timely resolution,” he said.

Mr Adegoke also urged Nigerians who have completed their NIN registration to download the NIMC NINAuth App from the iOS or Google Play Store to verify their NINs instantly, approve access to their information, control their data, and enjoy seamless authentication services.

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Nigeria Considers Bond Issuance, Others to Clear N4trn Electricity Debt

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FGN Retail Bonds

By Adedapo Adesanya

The Nigerian government may issue bonds and other instruments for the payment of N4 trillion owed players inn the electricity sector to help stabilise the nation’s ailing power industry and improve supply.

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, on Wednesday confirmed the presentation of a proposal to the Federal Executive Council (FEC) for the clearance of the N4 trillion debt owed to power generation companies (GenCos).

Mr Edun told State House reporters after the FEC meeting that he presented a memo on refinancing outstanding obligations in the electricity industry.

“I presented a memo on the all-important refinancing of the electricity sector’s outstanding obligations totalling N4 trillion,” he said, adding that, “Though the financing plan was not fully approved immediately, we have moved into implementation, led by the Debt Management Office and other experts.”

The debt, primarily owed to 27 power generation companies for outstanding invoices between 2015 and 2023, has stifled investment in the industry and exacerbated chronic power outages in Africa’s most populous nation.

He said the refinancing would be executed within three to four weeks under the oversight of the debt management office.

“It is now fully approved, and we move to implementation,” Mr Edun said.

In April, the GenCos warned that the unpaid N4 trillion debt owed by the federal government and stakeholders for electricity generated threatens their operations. A breakdown of the debt includes N2 trillion for 2024 and N1.9 trillion in legacy debts.

Back then, the Minister of Power, Mr Adebayo Adelabu said the federal government may borrow to settle GenCos, adding that the federal government plans to pay them N2 trillion of the N4 trillion debts owed to them between now and the end of 2025.

He said he was already discussing with the Minister of Finance, to settle the debt with budgetary allocation or guaranteed debt instruments as promissory notes.

He explained that the promissory notes would be formidable enough for them to tender at the banks for immediate cash needs.

The Minister said, “And I can tell you that between now and the end of the year, we are going to pay close to N2 trillion out of this N4 trillion.

“I have had discussions with the Minister of Finance and the Coordinating Minister of the Economy, who has promised that they working on the promissory note and once we have budget releases, cash payments will also be made.”

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Tinubu Wants Review of NNPC 30% Management Fee, Frontier Exploration Deduction

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NNPC Crude Cargoes pricing

By Adedapo Adesanya

President Bola Tinubu has ordered the review of deductions and revenue retention by the Nigerian National Petroleum Company (NNPC) Limited and other major revenue-generating agencies in the country.

The move is to boost public savings, improve spending efficiency, and unlock resources for growth, according to resolutions reached at Wednesday’s Federal Executive Council (FEC) meeting in Abuja.

The directive applied to NNPC, the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Maritime Administration and Safety Agency (NIMASA).

Mr Tinubu specifically called for a reassessment of NNPC’s 30 per cent management fee and 30 per cent frontier exploration deduction under the Petroleum Industry Act (PIA).

He tasked the Economic Management Team, led by the Minister of Finance, Mr Wale Edun, to present actionable recommendations to FEC on the best way forward.

President Tinubu said the directive was part of efforts to sustain reforms that had dismantled economic distortions, restored policy credibility, enhanced resilience, and bolstered investors’ confidence.

The reforms have created a transparent and competitive business environment attractive to local and foreign investors in critical sectors, such as infrastructure, oil and gas, health, and manufacturing.

Also, President Tinubu noted that Nigeria’s goal of $1 trillion economy by 2030 required growth of at least seven per cent annually from 2027, describing the target as “not just economic, but a moral imperative” as higher growth was the surest way to tackle poverty.

He cited the July 2025 International Monetary Fund (IMF) Article IV report, which he said endorsed Nigeria’s economic trajectory and the need for investment-led growth.

The President also said Nigeria’s goal of $1 trillion economy by 2030 required growth of at least seven per cent annually from 2027.

Mr Tinubu, according to a statement from the Ministry of Finance, described it as “not just economic, but a moral imperative”, as higher growth is the surest path to tackling poverty.

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