News
Oyo Senator, Balogun breaks silence, kicks against electricity tariff hike
Senator Kola Balogun, representing Oyo South Senatorial District, last Thursday broke silence on the electricity tariff hike.
Balogun, who is also a member of the Senate Committee on Power kicked against the increase in electricity tariff implemented by power distribution companies across the country, just as he absolved the Senate of being part of the decision.
The lawmaker maintained that any policy that will further inflict more hardship on the masses will always be rejected.
Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) had on August 27 informed that electricity tariff reviews, going forward will only follow service-based principles.
According to NERC, DiSCos will only be able to review tariff rates for customers when they consult with them and commit to increasing the number of hours of supply per day and quality of service.
Senator Balogun, during a media parley with the Southwest Group of Online Publishers (SWEGOP) in Ibadan, the Oyo State capital further disclosed how the Committee rejected the plan to increase electricity tarrif at a meeting organised by the National Electricity Regularly Commission (NERC), in Lagos.
“Sometimes last year, NERC invited us to a meeting in Lagos where they came up with this proposal to increase electricity tariff and quite a number of us on that day rejected it out rightly, we said we will not support it.
“Because, how can you charge people for what they are not getting? That’s our position. Go and improve on your performances.
“Look at the telecoms. When NITEL was unbundled and we now have GSM, people are willing to pay, they are still paying because they are getting the services .
“So, how can I go back to my district and tell them that I agreed with the tariff to pay more for what they are not getting, it doesn’t make sense. I know we spoke against it and we left it at that. So we didn’t support it”, he explained.
Balogun, however continued, “But, it is safe for us to pass a law or amend an act to stop any situation, that is what is binding. As we speak I still don’t support it because timing is wrong, even if they have enough reasons to increase, how can you do that at this material time of COVID?”, he questioned.
The PDP chieftain noted that the problem in power sector started with the way and manner the system was unbundled. He alleged that the players lacked the wherewithal; both technical and financial muscle to perform optimally.
“Already we have 8,000MW, deliverable is still about 3,000-4,000MW; because they are not investing in transmission infrastructure.
“So, they don’t give them more than they can take, because if the load goes back, it will damage the system. And of course, distribution also has its own problem.
“If we have 5,000 MW deliverables, Nigerians will witness mass improvement in our electricity supply and then you can imagine if we have about 7, 000 MW deliverables.
“They said they don’t have the off takers which is not true. They also complained about inability to collect revenues from the general public and that the federal government is also owing them a lot of money. But, we say go and get prepaid meters. So what the federal government is trying to do now is likely to procure prepaid meters for them. If you have prepaid meters you make more money because nobody will take your electricity without paying”, he submitted.
Balogun also commended the federal government for bringing Siemens to invest in transmission infrastructure.
According to him, “What the federal government is doing now, I am in support of it. The federal government is bringing Siemens to invest in transmission infrastructure. In fact it took a little argument before the owners of the transmission business allowed that to happen because there is always an agreement.
“In fact, we have to really be diplomatic, almost being persuasive for them to allow Siemens to come in and they have done a lot of feasibility study and they are bringing in almost everything that we would need to invest in transmission infrastructure; although with a loan from France”, he added.
The headquarters of Heritage Bank at Victoria Island, Lagos, was besieged on Thursday by members of the labour union, protesting the recent dismissal of 1,000 support workers.
The National President of the National Union of Banks, Insurance and Financial Institutions Employees, Comrade Anthony Abakpa, led the demonstration, condemning the bank’s management for what he deemed a lack of adherence to due process in the termination of employment contracts.
Speaking during the protest, Comrade Abakpa asserted that the leadership of Heritage Bank failed to follow established protocols before executing the mass layoffs.
He emphasised the union’s commitment to pursuing justice for the affected workers, vowing to escalate their demands until the bank’s management rectifies the situation.
“We will intensify our demands for justice,” declared Comrade Abakpa, urging the bank’s management to take corrective action to address the grievances of the dismissed workers.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, clarified that Nigeria is not utilising its foreign reserves to bolster the naira, despite recent fluctuations in reserve levels.
Speaking from Washington DC, where he is attending the International Monetary Fund-World Bank Spring Meetings, Cardoso highlighted the influx of $600 million into Nigeria’s reserves account within the past two days.
While the naira has experienced a notable appreciation against the dollar in recent weeks, climbing over 40% from approximately N1,900/$ to about N1,000/$1, Nigeria’s foreign reserves have been dwindling. As of April 15, reserves dropped to approximately $32.29 billion, marking the lowest level in over six years.
Cardoso emphasised that the shifts in reserves are typical for any country, where various financial obligations, such as debt repayments, necessitate withdrawals.
He stated, “What you’ve seen with respect to the shift in our reserves is normal in any country’s reserves where, for example, debts are due and certain payments need to be made. They are made because that is also part of keeping your credibility.”
Continuing, Cardoso underscored the dynamic nature of the market, advocating for a system driven by willing buyers, willing sellers, and price discovery.
He emphasised, “The shift in our reserves has really little or nothing to do with defending the naira, and that is certainly not our objective.”
Dangote Petroleum Refinery has made headlines by announcing a further reduction in the price of diesel, dropping it from ₦1200 to ₦1000 naira per litre.
The refinery’s decision comes on the heels of its recent supply at a significantly reduced price of ₦1200 per litre, which was introduced three weeks ago, signifying a remarkable 30 per cent decrease from the previous market price of approximately ₦1600 per litre.
This substantial reduction in diesel prices at Dangote Petroleum Refinery is expected to reiterate positively throughout various sectors of the economy, potentially serving as a catalyst in alleviating the persistently high inflation rate in the country.
In a statement last week, Aliko Dangote, Africa’s wealthiest individual and the owner of the refinery, expressed his optimism regarding the potential impact of the price reduction on inflation in Nigeria.
“I believe that we are on the right track. I believe Nigerians have been patient, and I also believe that a lot of goodies will now come through. There’s quite a lot of improvement because if you look at it, one of the major issues that we’ve had was the naira devaluation that has gone very aggressively up to about ₦1900,” he remarked.
As anticipation builds around the implications of this move by Dangote Petroleum Refinery, stakeholders and consumers alike remain hopeful for the positive effects it could bring to the Nigerian economy in the coming months.
-
Politics3 days agoWhy Oyo State cannot afford another 3 years of Makinde’s mismanagement of council funds
-
Opinion3 days ago
Tinubu’s Naira Miracle: Abracadabra or Economic Wizardry? | By Adeniyi Olowofela
-
News1 week ago
FERMA House C’ttee Chair, Oseni Consoles Sen. Buhari over mum’s death
-
Politics1 week ago
APC Urges Fairness in Oyo LG Election
