National Issues
How Obasanjo, Yar’Adua, Jonathan squandered over N11trn for electricity – SERAP
The Socio-Economic Rights and Accountability Project, SERAP, on Wednesday disclosed how over N11 trillion meant for the provision of electricity supply was allegedly squandered by the administrations of former Presidents, Olusegun Obasanjo, Umaru Musa Yar’Adua and Goodluck Jonathan.
SERAP in a new report claimed that corruption in the electricity sector started during the administration of Obasanjo in 1999.
The body made the claim in a 65-page report titled: “From Darkness to Darkness: How Nigerians are Paying the Price for Corruption in the Electricity Sector”, which was launched in Lagos.
Presenting the report to the public, Yemi Oke, Assistant Professor, Energy/Electricity Law, Faculty of Law, University of Lagos said, “the country has lost more megawatts in the post-privatisation era due to corruption, impunity, among other social challenges reflected in the report.”
The report sent to DAILY POST by SERAP’s Deputy Director, Timothy Adewale, reads, “The total estimated financial loss to Nigeria from corruption in the electricity sector starting from the return to democracy in 1999 to date is over Eleven Trillion Naira (N11 Trillion Naira). This represents public funds, private equity and social investment (or divestments) in the power sector. It is estimated that may reach over Twenty Trillion Naira (N20 Trillion Naira) in the next decade given the rate of Government investment and funding in the power sector amidst dwindling fortune and recurrent revenue shortfalls.
“The much-publicised power sector reforms in Nigeria under the Electric Power Sector Reform Act of 2005 is yet to yield desired and/or anticipated fruits largely due to corruption and impunity of perpetrators, regulatory lapses and policy inconsistencies. Ordinary Nigerians continue to pay the price for corruption in the electricity sector–staying in darkness, but still made to pay crazy electricity bills.”
The report accused Dr. Ransom Owan-led board of the Nigerian Electricity Regulatory Commission (NERC) of allegedly “settling officials with millions of Naira as severance packages and for embarrassing them with alleged Three Billion Naira (N3,000,000,000.00) Fraud. The authorities must undertake a thorough, impartial and transparent investigation as to the reasons why corruption charges were withdrawn, and to recover any corrupt funds.”
The report also called for the reopening and effective prosecution of corruption allegations, including the alleged “looting of the benefits of families of the deceased employees of Power Holding Company of Nigeria (PHCN) levelled against a former Permanent Secretary in the Ministry of Power, Godknows Igali.
“The Obasanjo’s administration spent $10 billion on NIPP with no results in terms of increase in power generation. $13.278,937,409.94 was expended on the power sector in eight years while unfunded commitments amounted to $12 billion.
“The Federal Government then budgeted a whopping N16 billion for the various reforms under Liyel Imoke (2003 to 2007) which went down the drains as it failed to generate the needed amount of electricity or meet the set goals. Imoke was alleged to have personally collected the sum of $7.8 million for the execution of the contract for the construction of the Jos-Yola Transmission Line, which was never executed. There were documented/reported allegations of corruption against Imoke that fizzled-out shortly thereafter.
“Professor Chinedu Nebo handed over the assets of the PHCN to private investors on November 1, 2013. Prof. Nebo is alleged to have corruptly funded the privatized power sector with over N200 Billion despite privatization. The allegation of N200 Billion funding of the privatized power sector during Prof Nebo’s tenure should be thoroughly and transparently investigated and anyone suspected to be responsible prosecuted. Any corrupt funds should be fully recovered.
“Our research revealed that the sum of N1.5 billion with which the vehicles were acquired was allegedly sourced from the diverted N27 billion insurance premium of deceased workers of the defunct Power Holding Company of Nigeria (PHCN).
“The National Assembly and members should desist from and avoid manipulating the award of electricity contracts or cite projects in their constituencies under the guise of “Constituency Project”. The National Assembly should publish and ensure the full implementation of the recommendations of all power-related investigations to date.
“The Federal Government should back-down from Rural Electrification initiatives and allow States to undertake rural electrification through their respective Local Governments and Development Areas. Federal Government should consider fully divesting its stakes in the power sector and allow for efficient, decentralized sector governance by Federal and State governments, as appropriate, in line with the provisions of the Second Schedule, paragraph 13 and 14 of the Constitution of the Federal Republic of Nigeria 1999 (as amended).
“The 36 state governments should wake up to their rights, duties and obligations under the Constitution of the Federal Republic of Nigeria relating to the power sector by working to promote and ensure access to regular and uninterrupted electricity supply for all residents within their states. The 36 state governments have been abdicating the duties to the power sector, bearing in mind that Power is an item on the Concurrent Legislative List under the Nigerian Constitution 1999 (as amended).
“When the late Bola Ige took up the mantle of the Power and Steel Ministry in 1999, he probably didn’t understand the magnitude of problems in the power sector and consequently, promised that within six months of his appointment, “power failure will be a thing of the past” and that on a regular basis, he will brief the nation on the state of power, steel and aluminum. Current minister Babatunde Fashola SAN also claimed that ‘a serious Government will fix the power problem in six months.
“The power sector under Ige was characterized by epileptic and unreliable supply, bogus billing and archaic rate collection. The late Minister failed and was unable to put an end to these. His failure was attributed to acts of sabotage and corruption by people who were benefitting from the use of generators. The late Bola Ige was not accused of corruption.
“When Rilwan Lanre Babalola (2008 to 2010) took over the affairs in the Ministry of Power, he met 3,700MW on ground and promised to increase it to 6,000MW and ensure a 24-hour power supply by the end of 2009. Six months after assuring Nigerians of making a significant impact in the sector, in September 2009, the 3,700MW capacity he met on ground dropped to 2,710MW which shortfall was attributed to inadequate supply of gas to the new generators.
“The duo, Elumelu and Ugbane allegedly colluded in misappropriating over N10 billion public funds from the account of Rural Electrification Agency (REA). The research also established, based on evaluation and analyzing documents, a prima-facie case of misappropriation of unspent funds at the end of the year instead of returning same to the treasury. Alleged misappropriation of N500million to buy houses; diversion of REA’s funds; flouting of government’s rules on award of contracts and award of fictitious and unnecessary contracts without following due process.
“The government of Nigeria handed over the transmission company to a Canadian company Manitoba, to manage and under a management service contract of over $200 million. Findings also show that the Transmission Company of Nigeria could not execute most of its approved 44 projects after having 50 percent of its N30 billion 2016 budget released to it. Funds were released from Eurobond. $23.6 million allegedly paid to Manitoba Hydro International (MHI) of Canada to manage the Transmission Company of Nigeria (TCN) would appear to be without due process.
“The privatization of PHCN would appear to have yielded the country total darkness. Gains of privatization were lost through alleged corruption, manipulation of rules and disregard to extant laws and lack of transparency in the exercise. The PBE encouraged the deferment of payment and restructuring of payment terms in contravention of bidding rules to the disadvantage of other bidders.
“Billing methodology shrouded in secrecy. Billings do not reflect actual electricity consumptions in most cases. Most if not all, officials of the DISCOs are still very corrupt and demand gratification from customers before doing the job they are paid to do. Grand corruption against the Federal Government owner of the 40% stakes in the DISCOS, and by implications, the Nigerian masses due to non-remittance or under-remittances of the monies collected by the DISCOs.
“The Manitoba deal is shrouded in secrecy as essential details of the deal remain unknown to Nigerians till date. The authorities should undertake a public-oriented audit on the state of affairs of the TCN two years before and after the Manitoba deal. The outcome of the audit should form basis for further action and charges in court against the suspected perpetrators and corrupt funds fully recovered.
“The Federal Government should undertake a thorough, impartial and transparent investigation into the power sector privatization with a view to doing things the right, fair and just way. Ownership of public stakes of 40% in those entities should be revisited and further privatized to avoid using government/public resources to subsidize private entities.
“Attention should be focused also on petty corruption. Petty corruption in the electricity sector has not received much attention, as the focus has been on grand corruption in the sector.
“The Attorney-General of the Federation and Minister of Justice Abubakar Malami SAN should request the report of the House of Representative Committee that probed government spending in the power sector from 2000 to 2007, and the Elumelu House Probe Committee which had accused 21 persons and 36 companies of subversion of government policy on due process make the report public and ensure appropriate legal action against anyone suspected to be involved in corruption as well as full recovery of corrupt funds.
“Undocumented, monumental fraud and corruption is said to be perpetrated at the Niger Delta Power Holding Company (NDPHC) and investigation by the EFCC and ICPC will ensure that those involved are effectively brought to justice.
“Mr Malami should direct the EFCC and ICPC to probe metering and billing fraud and corruption and bribery among Discos. Most consumers are unhappy will their billing methodology and feel short-changed by the operators. Mr Malami should promptly make progress on all outstanding cases of corruption in the electricity sector including by ensuring effective prosecution of all power sector cases being handled by the Ministry.
“The ICPC should make public the status of the investigation and recommendations for prosecution (if any) on the AEDC Recruitment Scandal/Jumbo Pay Scandal given the facts that the Nigerian Government and public have 40% stakes in the AEDC. The Manitoba deal is shrouded in secrecy as essential details of the deal remain unknown to Nigerians till date. The EFCC/ICPC should lead a public-oriented audit on the state of affairs of the TCN two years before and after the Manitoba deal.
“The ICPC show tell Nigerians about the current status of the probe of the recruitment scandal and corruption-induced jumbo pay to workers of the Abuja Electricity Distribution Company (AEDC Plc). Anyone found to be responsible should be brought to justice and corrupt funds fully recovered.”
TEXT OF THE BROADCAST BY PRESIDENT BOLA AHMED TINUBU, COMMANDER-IN-CHIEF OF THE ARMED FORCES, DECLARING STATE OF EMERGENCY IN RIVERS STATE ON TUESDAY 18 MARCH 2025
Fellow Nigerians, I feel greatly disturbed at the turn we have come to regarding the political crisis in Rivers State. Like many of you, I have watched with concern the development with the hope that the parties involved would allow good sense to prevail at the soonest, but all that hope burned out without any solution to the crisis.
With the crisis persisting, there is no way democratic governance, which we have all fought and worked for over the years, can thrive in a way that will redound to the benefit of the good people of the state. The state has been at a standstill since the crisis started, with the good people of the state not being able to have access to the dividends of democracy.
Also, it is public knowledge that the Governor of Rivers State for unjustifiable reasons, demolished the House of Assembly of the state as far back as 13th December 2023 and has, up until now, fourteen (14) months after, not rebuilt same. I have made personal interventions between the contending parties for a peaceful resolution of the crisis, but my efforts have been largely ignored by the parties to the crisis. I am also aware that many well-meaning Nigerians, Leaders of thought and Patriotic groups have also intervened at various times with the best of intentions to resolve the matter, but all their efforts were also to no avail. Still, I thank them.
On February 28, 2025, the supreme court, in a judgment in respect of about eight consolidated appeals concerning the political crisis in Rivers State, based on several grave unconstitutional acts and disregard of rule of law that have been committed by the Governor of Rivers State as shown by the evidence before it pronounced in very clear terms:
“a government cannot be said to exist without one of the three arms that make up the government of a state under the 1999 Constitution as amended. In this case the head of the executive arm of the government has chosen to collapse the legislature to enable him to govern without the legislature as a despot. As it is there is no government in Rivers State.”
The above pronouncement came after a catalogue of judicial findings of constitutional breaches against the Governor Siminalayi Fubara.
Going Forward in their judgment, and having found and held that 27 members of the House who had allegedly defected
“are still valid members of Rivers State House of Assembly and cannot be prevented from participating in the proceedings of that House by the 8th Respondent (that is, the Governor) in cohorts with four members”
The Supreme Court then made some orders to restore the state to immediate constitutional democracy. These orders include the immediate passing of an Appropriation Bill by the Rivers State House of Assembly which up till now has not been facilitated.
Some militants had threatened fire and brimstone against their perceived enemy of the governor who has up till now NOT disowned them.
Apart from that both the House and the governor have not been able to work together.
Both of them do not realise that they are in office to work together for the peace and good governance of the state.
The latest security reports made available to me show that between yesterday and today there have been disturbing incidents of vandalization of pipelines by some militant without the governor taking any action to curtail them. I have, of course given stern order to the security agencies to ensure safety of lives of the good people of Rivers State and the oil pipelines.
With all these and many more, no good and responsible President will standby and allow the grave situation to continue without taking remedial steps prescribed by the Constitution to address the situation in the state, which no doubt requires extraordinary measures to restore good governance, peace, order and security.
In the circumstance, having soberly reflected on and evaluated the political situation in Rivers State and the Governor and Deputy Governor of Rivers State having failed to make a request to me as President to issue this proclamation as required by section 305(5) of the 1999 Constitution as amended, it has become inevitably compelling for me to invoke the provision of section 305 of the Constitution of the Federal Republic of Nigeria, 1999 as amended, to declare a state of emergency in Rivers State with effect from today, 18th March, 2025 and I so do.
By this declaration, the Governor of Rivers State, Mr Siminalayi Fubara, his deputy, Mrs Ngozi Odu and all elected members of the House of Assembly of Rivers State are hereby suspended for an initial period of six months.
In the meantime, I hereby nominate Vice Admiral Ibokette Ibas (Rtd) as Administrator to take charge of the affairs of the state in the interest of the good people of Rivers State. For the avoidance of doubt, this declaration does not affect the judicial arm of Rivers State, which shall continue to function in accordance with their constitutional mandate.
The Administrator will not make any new laws. He will, however, be free to formulate regulations as may be found necessary to do his job, but such regulations will need to be considered and approved by the Federal Executive Council and promulgated by the President for the state.
This declaration has been published in the Federal Gazette, a copy of which has been forwarded to the National Assembly in accordance with the Constitution. It is my fervent hope that this inevitable intervention will help to restore peace and order in Rivers State by awakening all the contenders to the constitutional imperatives binding on all political players in Rivers State in particular and Nigeria as a whole.
Long live a united, peaceful, secure and democratic Rivers State in particular and the Federal Republic of Nigeria as a whole.
The Department of State Services (DSS) has emphasized the need for the recruitment of intelligent graduates into its ranks, stating that crime-fighting requires intellect and strategic thinking.
DSS Director, Oluwatosin Ajayi, made this known on Wednesday while delivering a lecture at the University of Ilorin, Kwara State.
The lecture, titled “The Roles of the DSS in Security, Peacekeeping, and National Integration,” highlighted the agency’s crucial role in safeguarding the nation and the necessity of strengthening intelligence institutions.
Ajayi, represented by DSS Deputy Director Patrick Ikenweiwe, stressed that the country’s best minds should be drafted into the DSS to address the growing security challenges.
“If I have my way, the best graduates in the country should be compelled to join the DSS and serve the nation in tackling security threats,” Ikenweiwe stated.
Drawing a comparison to Israel’s academic system, he noted: “In Israel, students who score above 70 marks in their university entrance exam are automatically placed in the university. Tell me, how would a ‘Dundee’ (dullard) be able to counter a criminal gang made up of first-class brains? Intelligence is key to fighting crime.”
He further advocated for collaboration with academic institutions to identify top-performing students who could be recruited into the intelligence service.
The DSS official also outlined several threats to national security, including sabotage, subversion, and espionage, urging a comprehensive approach to national security that includes intelligence-driven solutions and a well-trained workforce.
The Nigerian government spent a staggering $3.58 billion on servicing foreign debt within the first nine months of 2024, marking a significant 39.77% increase compared to the $2.56 billion expended over the same period in 2023.
This data, drawn from a recent report on international payment statistics by the Central Bank of Nigeria (CBN), reflects a concerning rise in the country’s foreign debt obligations amid depreciating currency values.
According to the report, the most substantial monthly debt servicing payment occurred in May 2024, totaling $854.37 million. This is a substantial 286.52% increase from May 2023’s $221.05 million.
Meanwhile, the highest monthly payment for 2023 was $641.7 million in July, underscoring the trend of Nigeria’s escalating debt costs.
Detailed analysis of monthly payments further illuminates the trend.
In January 2024, debt servicing costs surged by 398.89%, reaching $560.52 million, a significant rise from $112.35 million in January 2023. However, February saw a modest reduction of 1.84%, with costs decreasing from $288.54 million in 2023 to $283.22 million in 2024. March also recorded a decline of 31.04%, down to $276.17 million from $400.47 million the previous year.
Additional fluctuations in debt payments continued throughout the year, with June witnessing a slight decrease of 6.51% to $50.82 million from $54.36 million in 2023. July 2024 payments dropped by 15.48%, while August showed a 9.69% decline compared to 2023. September, however, reversed the trend with a 17.49% increase, highlighting persistent pressure on foreign debt obligations.
With the rise in exchange rates exacerbating these financial strains, Nigeria’s foreign debt servicing costs are projected to remain elevated.
The central bank’s data highlights how these obligations are stretching national resources as the naira’s devaluation continues to impact debt repayment in dollar terms.
Rising State Debt Levels Add Pressure
The federal government’s debt challenges are mirrored by state governments, whose collective debt rose to N11.47 trillion by June 30, 2024.
Despite allocations from the Federal Accounts Allocation Committee (FAAC) and internally generated revenue (IGR), states remain heavily reliant on federal transfers to meet budgetary demands.
According to the Debt Management Office (DMO), the debt burden for Nigeria’s 36 states and the Federal Capital Territory (FCT) rose by 14.57% from N10.01 trillion in December 2023.
In naira terms, debt rose by 73.46%, from N4.15 trillion to N7.2 trillion, primarily due to the naira’s depreciation from N899.39 to N1,470.19 per dollar within six months. External debt for states and the FCT also increased from $4.61 billion to $4.89 billion during this period.
Further data from BudgIT’s 2024 State of States report illustrates how reliant states are on federal support. The report revealed that 32 states depended on FAAC allocations for at least 55% of their revenue in 2023.
In fact, 14 states relied on FAAC for 70% or more of their revenue. This heavy dependence on federal transfers underscores the vulnerability of states to fluctuations in federal revenue, particularly those tied to oil prices.
The economic challenges facing both the federal and state governments are stark. The combination of mounting foreign debt, fluctuating exchange rates, and high reliance on federally distributed revenue suggests a need for fiscal reforms to bolster revenue generation and reduce vulnerability to external shocks.
With foreign debt obligations continuing to grow, the report emphasizes the urgency for Nigeria to address its debt sustainability to foster long-term economic stability.
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