News
GenCos, DisCos Owe Banks N836bn Amid Crisis – Report

Power generation and distribution companies owe Nigerian banks N836.09bn amid the lingering problems plaguing the sector since it was privatised over eight years ago.
This is according to the Central Bank of Nigeria’s June 2022 data obtained by The Punch.
While power generation firms and independent power producers owed banks N562.19bn, power transmission and distribution firms were indebted to the tune of N273.89bn.
Report had it earlier in July 2020 that the core investors in the distribution companies were looking to restructure the loans advanced to them by banks for the acquisition of the power assets.
READ ALSO: Why There’s Drop In Electricity Generation – FG
In November 2013, the nation’s distribution and generation companies were privatised through the Bureau of Public Enterprises, fetching about $3.2bn for the Federal Government. The Discos and Gencos were sold for $1.7bn and $1.5bn respectively.
The Federal Government officially privatised the six successor power generation companies and 11 distribution firms that were unbundled from the defunct Power Holding Company of Nigeria.
The acquisitions by the core investors were financed mostly by debts, a significant portion of which was provided by local banks.
Recall that the crisis rocking Nigeria’s power sector seems to be expanding annually despite efforts by the Federal Government and the private sector in managing it.
From power generation to transmission down to distribution, there have been diverse concerns, as well as in other arms of the business such as in the regulation of the industry.
These concerns have made stakeholders express doubts over the viability of the privatisation of the distribution and generation arms of the industry.
They stated that the recent takeover or re-acquisition of some power distribution companies by a Deposit Money Bank, the Asset Management Corporation of Nigeria and another investor, for instance, showed that all was not well with the Discos.
Chris Akamnonu, who served as managing director in three Discos in the South-East and South-West for about 13 years, told The PUNCH, “The situation is more complex than the ordinary person sees. The entire experiment may not be yielding the desired results; that is the frank truth.”
In July this year, it was reported that the Federal Government alongside Fidelity Bank and AMCON had taken over the affairs of five electricity distribution companies, also known as DISCOs, over debts owed to Fidelity Bank.
READ ALSO: Energy Crisis: Blackout As Electricity National Grid Collapses Again
The affected companies were Kano Electricity Distribution Company, Ibadan Electricity Distribution Company, Benin Electricity Distribution Company, Kaduna Electric, and Port Harcourt Electricity Distribution Company.
The companies had failed to repay loans obtained to pay for assets acquired in the 2013 privatisation exercise.
Also, the government, through its BPE, announced that with the takeover of Ibadan Disco by the AMCON, the BPE had obtained approval from the Nigerian Electricity Regulatory Commission to appoint an interim managing director for the distressed power firm.
PUNCH.
News
Nigerian Engineers applaud Gov. Mohammed’s $5bn Investment Deals
The Nigerian Society of Engineers (NSE), Bauchi state chapter has commended Gov. Bala Mohammed for organising the maiden international investment summit that recorded a 5 billion Dollars investment deal in the state.
It could be recalled that Prof. Murtala Sagagi, Chairman of the Summit Planning Committee, disclosed at the end of the summit that it recorded over 5 billion Dollars investment deals and 47 Memoranda of Understanding (MoUs) signed.
He said that the agreements signed covered agriculture, solid minerals, power, infrastructure, and ICT sectors, adding that one of the MoUs translated into a concrete investment deal worth 1 billion dollars, which would become operational before the end of 2025.
Speaking with newsmen on Sunday, Engr. Abdulkarim Hassan, Chairman, NSE, Bauchi state chapter, congratulated the state government for organizing and the successful completion of the economic and investment summit.
READ ALSO:Bauchi Attorney-General Says GBV Is A Pressing Human Right Issue
According to him, the summit has also showcased Nigerian engineers’ professional prowess to the world as the newly constructed International Conference Centre (ICC) where the summit was held was built by a Nigerian construction company.
He expressed confidence in the governor for engaging Nigerian engineers to do the job, saying “the feeling is mutual because if he didn’t have confidence in us, he would have engaged foreign engineers to do the work.
“We extend our profound
congratulations to the governor on the successful completion of the Bauchi
Investment Summit.
“This summit was not merely an event, it was a clear demonstration of his visionary leadership and unwavering commitment to transforming Bauchi State into a prime destination for investment.
READ ALSO:Bauchi Attorney-General Says GBV Is A Pressing Human Right Issue
“The quality of delegates, the insightful discussions, and the tangible commitments secured during the summit have set a new benchmark for economic engagement in the North-East and other
regions in Nigeria.
“As professional engineers, we were particularly encouraged by the strong emphasis placed on infrastructure, industrialisation, and technological development, which are key pillars that will
drive sustainable growth,” he said.
Hassan added that the success of the summit has laid a robust foundation for attracting the capital necessary to execute the ambitious infrastructural projects required for the state’s development.
He expressed the readiness of the NSE, Bauchi branch to partner with the state government by offering its professional expertise and technical support to ensure that the outcomes and MoUs from the summit translated into sustainable reality for the people of Bauchi State.
News
OPINION: Oshiomhole In A Fight Between The Elephant And The Pit
By Tony Erha
‘Okuo imose”, “no fight is attractive” – all fight is ugly, according to the Edo people. If a fight doesn’t pluck the teeth it would drip the noise of red blood. That is why pundits were apprehensive and had to caution Dangote Refinery and the Petrol and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to a sound reasoning, over the sack of 800 of its workers by Dangote, which was followed by a strike action that was later called-off. The fisticuff was intensified as the National Union of Petroleum and Gas Workers of Nigeria (NUPENG), joined the spat by supporting PENGASSAN.
Like the American freestyle wrestling, where partakers fight with anything they lay their hands upon, a melee, a-free-for-all in which no one seems to know the real opponents. The fallout of the Dangote and PENGASSAN fight has unsettled Nigerians. The Benins would say “ama re fi ekpa arie gb’ ihue”; “the fisticuffs hadn’t started when the nose bled blood”. For the hapless consumer public is still at the mercy of the raging feud after the settlement. Indeed, the grass suffered where two elephants fought dirty. Buyers of Dangote products are still groaning under a surge of cooking gas price, from about N1,000 to N3,200 per kg.
Dangote Refinery’s kingpin, Aliko Dangote, who has huge investment monies flowing in his veins, vowed to a showdown with the PENGASSAN and NUPENG. Do not take my calmness for cowardice; Aliko seemed to have said, flinging his hat into the ring. “…There is no fight I have never won…” he boasted, whereas he actually won several and lost some, in the monopoly business with fellow competitors.
It was a rivalry fight between the Elephant and the Pit, when the Elephant arrogates to being the largest land animal; and the Pit boastful he is the hugest depth in the ground. The Pit threatens to swallow the Elephant and the Elephant determined to cover up the Pit. Finally on the encounter, the Pit that swallows the Elephant wouldn’t swallow more animals, nor will the Elephant live to swallow another pit.
MORE FROM THE AUTHOR:OPINION: ‘Ikhueki’, Benin Market Women Are At War!
In wrestling and boxing of exchange of punches and slams, America’s loquacious president and all-time wrestling and boxing promoter, Donald Trump, is well-known. One of the memorable grim and tricky fights of the tempest Trump was when he dragged his fellow promoter from the ringside to the dais, and beckoned on others to instantly shave his head, to the wild delight of wrestling fans across the globe. Realising that he had truly missed out from his rasmatazz in promoting competitive boxing and wrestling, an intoxicating Trump had recently arranged for a cage-wrestling showdown to mark one of his official events in a US presidential venue. When a lion king thirsts for the blood and flesh of prey, as he no longer go hunting, he claws to his own tongue to a consolatory leak of his own blood to quench his lust for blood.
Adams Aliu Oshiomhole, Nigeria’s former labour leader and ex-governor of Edo State, was dragged into the fight with his comment that PEGASSAN erred declaring a strike action without a second thought for the majority poor, who were bound to suffer the strike’s consequences. PENGASSAN and NUPENG thereby saw Oshiomhole as entering the fight arena as in ‘Enter the Dragon’, an epic film in which Chuck Norris; a famous kickboxer sorted it out with Bruce Lee, the late iconic martial artiste. It was somewhat absurd for NUPENG to point menacingly at Oshiomhole, declaring him a ‘persona non grata’ and placed a ban on him from all NUPENG’s activities, whereas the oil union was only one amongst the over 41 affiliate unions that constituted his command of the Nigerian Labour Congress (NLC), with him as its two term president.
Now, Oshiomhole seems better placed having resumed his pro-people stand, with his current valuable contributions to it in the Senate’s chamber. But NUPENG is irritated that one of their own could attempt to stop the mongoose from killing the snakes that had all along been killed for gains and superiority sakes. Do the organised labour trust Oshiomhole, vice versa? It’s likened to the crusading music of the late musician Joseph Osayomore; “Who know man naim dey kill man” (one’s enemy is his friend). Although Oshiomhole left active labour activism about two decades ago, he’s probably the same ‘adamant Adams’ who knows the strength and pitfalls of regimental unionism, where men in khaki are soldier ants.
Why will NUPENG, led by William Akporeha, its president, be so unfair banning their former leader from speaking in their public fora, knowing that speaking in the function of the organized labour was the most effective pills he takes to get well?
MORE FROM THE AUTHOR:OPINION: Endless Season Of Guns, Terror And Uncertainties
Oshiomhole may not be a ringside promoter to Dangote and his mercantile, in the fight-to-finish with the PENGASSAN and NUPENG warlords, as he was accused of, nor for a ravaging workers union, than for a weary public that is a usual butt of undue strikes by insensitive workers’ and endless monopoly by businesses. A suspicious PENGASSAN and NUPENG, even though are rightly condemned for anti-people stand, by their inept strike, might have made a valid point that leaders, whose words sometimes (if not often) conflict with the good examples they preach, set the bad example for others to follow.
In a game of survival, like the odd one currently faced by the Super Eagles, in their bid to qualify for the world cup, a Gernot Roy, Nigeria’s former coach, who was booted out, and now leading the national team of the Republic of Benin, would open Nigeria’s football secrets to his newest side, as NUPENG also think their leaders are to Dangote. And is an irony that Gernot Roy is a decider of the fate of Nigeria, in the Super Eagles final match with the Benin team for the world cup carnival.
Like Trump, Oshiomhole is ‘very slippery’ as he has in common a showmanship, raw courage and the resilience of a marathoner. Oshiomhole is ‘a giant’ who’s physical and determined. Sufuyan Ojeifo, a prolific writer and journalist, once called him ‘dynamite that comes in pieces’; while I add ‘dynamite that turns a mass into pieces’. For a man who trains so rigorously, and does drills which most young men can hardly do, I was terrified when Oshiomhole, unlike a pugilist promoter in a prematch talk-show, angrily warned Reuben Abati, the Arise TV presenter, that he would punch him to puff-puff’ (swollen pie), with a black-eye and calluses, for slandering him.
If the fight between the Dangote petroleum outfit and the oil unions was in the interest of the public, and not for their selfish interests, all wouldn’t be bothered. Union workers usually orchestrate strike actions, only when it comes to their welfare, whilst staple oil derivative products are still beyond reach , notwithstanding that Nigeria is one of the leading oil producing countries of the world, that are starved of its products.
News
Edo: Council Boss Attacked During Traffic Intervention At MUYI Line
The acting chairman of Egor Local Government Council, Edo State, Hon. Osaro Eribo, was reportedly attacked by thugs suspected of MUYI Line Transport Company while personally leading the council’s traffic enforcement operation along the Uselu-Lagos Road.
Eribo said the assault occurred as he sought to address complaints about indiscriminate parking and road obstruction by MUYI Line.
According to him, on several occasions, the council had serviced MUYI Line notices to desist from the indiscriminate parking and obstruction of the highway, but refused to comply with the instruction.
He said, “On assumption of office, I discovered that each time I’m going to the office there is always serious traffic gridlock caused by the MUYI Line. So I decided to visit the transport company, repeatedly meeting with the manager, who walked out on us on our last visit and suddenly some hoodlums there attacked us.
READ ALSO:Edo LG Warns MUYI Line, Other Over Traffic Violation, Obstruction
“I had to place a call to the Chief of Staff to the governor who detailed additional security personnel from Government House, that made the situation not to escalate further,” Eribo said.
“After the thugs were apprehended, we had asked the management of the transport company to come to the council to sign an undertaking, after several appeals from well meaning individuals. I’m surprised that the same people are the ones now quick to run to social media misrepresenting the situation.”
“We even learnt that previous administrations have had their buses confiscated at a point over this same traffic obstruction,” he added.
He dismissed claims that the operation was intended to harass transport operators or targeted at MUYI Line.
READ ALSO:Why I Allowed Muslim Clerics Speak From My Pulpit – Pastor Kumuyi
“Our intervention was purely about public safety. We cannot fold our arms while lives are being put at risk daily. This is what MUYI Line is currently doing. So, it was never a witch-hunt or an attempt to embarrass anyone,” Eribo said.
The council boss explained that the traffic operation was part of a broader initiative to keep major roads within Egor safe, accessible, and orderly.
“We are determined to make driving in Egor stress-free and accident-free. Every action we take is guided by the need to protect residents and motorists,” he added.
Eribo also clarified that neither MUYI Line nor Mouka Foam were singled out of malice.
READ ALSO:Why Macaulay, Vatsa, Saro-Wiwa, Others Were Granted Pardons — Presidency
“We respect them as employers of labour and contributors to the local economy.
“Our engagement is about partnership, not confrontation,” he said, noting that discussions with both companies are ongoing to find workable solutions.
He urged residents to ignore false reports circulating online.
“Governance sometimes requires tough decisions for the greater good. Our only aim is a cleaner, safer, and more orderly Egor,” Eribo concluded.
Calls to the proprietor of MUYI Line Transport Company for a reaction were not picked, neither were messages sent to his WhatsApp were responded to.
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