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Nigeria to pay $4b extra to service debts if senate blocks loan restructuring, Buhari warns

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If the Senate continue with its resolve to block the plan to restructure government loans from the Central Bank, the country will be made to pay an extra $4 billion to service its debt, President Muhammadu Buhari told the senate during a meeting on Tuesday.

“Failure to grant the securitization approval will however cost the government about 1.8 trillion naira in additional interest in 2023,” the President added, according to an emailed statement from his spokesman, Femi Adesina to Bloomberg International.

There was uproar in the Senate last week over President Muhammadu Buhari request for approval of restructuring of N22.7trillion Ways and Means advances given the federal government by the Central Bank of Nigeria (CBN) 
The lawmakers raised objections while considering the report of the Committee on Finance for Approval of restructuring of N22.7trillion Ways and Means advances collected by the Federal Government from Central Bank of Nigeria (CBN) within the last ten years.

President Buhari had in a letter read on the floor of the Senate on Wednesday last week, sought for restructuring of the N22.7trillion Ways and Means advances collected from CBN within the last ten years in addition to N1trillion to be collected as fresh domestic loan.
Buhari in the letter said Ways and Means are advances from the Central Bank of Nigeria to the federal government for emergency funding of delayed receipt of fiscal deficits

The President in the request said, “The ways and means advances by the Central Bank of Nigeria, to the federal government has been a funding option for the federal government to cater for short term or emergency finance to fund delayed government expected cash receipt of physical deficit.

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Legislature

Electricity tariff: Rowdy session as Senate leadership truncates debate abruptly

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**panel wants tariff hike suspended

The Senate report seeking the suspension of hike in electricity tariff resulted in another round of a rowdy session in the Senate chamber on Thursday, after the debate on the report was brought to a halt abruptly by the leadership

The Senator Eyinnaya Abaribe-led Senate’s committe on Power had recommended among others that the National Electricity Regulatory Commission (NERC) should suspend the ongoing implementation of MYTO, 2024 which approved over 200% upward review of the previous tariffs from N68/kWh to N225/kWh to allow for robust consultation with customers on the various bands on the cost of service instead of heavy reliance on feeder location and duration of service which are difficult to determine and monitor”

The report which was presented to the senate by Abaribe also recommended that “NERC should ensure full compliance with the mandatory requirement of stakeholder consultation under Section 48 of the Electricity Act, 2023 regarding future regulatory decisions to avoid a repeat of the confusion and public outcry that trailed the recent tariff increase”.

But immediately the report was presented the 10-point recommendation, senators took their turns to condemn the hike in tariff and pointed out that it was done amidst high cost of living.

Chief Whip of the Senate, Ali Ndume said the plan by NERC was discriminatory and unconstitutional.

“I am surprised with the sudden hike in electricity tariff which is against the constitution. When I heard about this, I checked the constitution and what they did was discrimination which is against the constitution.

“If you are living among the masses, you are getting power from Band A and others are not, it’s discrimination,” Ndume said stating that he is happy the president is not buying into such policies.

Sen Isah Jibrin (Kogi East) said the government must intervene in some sectors of the economy particularly power sector.

“Most of the companies in Nigeria today cannot operate because of power. Government should invest by way of subsidies,” he said.

The Senate minority leader, Abba Moro said what was going on in Nigeria was very sad.

He revealed that Nigerians provide transformers for their communities and pay the electricity companies to install them and after which electricity companies take ownership of the transformers.

Sen Adamu Aliero (Kebbi Central) said the increment in electricity tariff was done without consultation and urged the Senate to swing into action by adopting the committee report.

Also speaking, a former senate leader, Yahaya Abdullahi (Kebbi North) said the power sector is so segmented to the detriment of the consumers.

He said the amount of resources spent on power is always wasted.

While deliberations were ongoing, Sen Jimoh Ibrahim (Ondo South) said as beautiful as the matter was, the Senate should give respect to the judiciary, an affirmation of an earlier point of order raised by Sen Titus Zam (Benue North East), to the effect that a Kano High Court is already entertaining the matter of the electricity hike.

Ibrahim advised that since the case is in court, the Senate should not be the judge, urging the Senate to step down the report.

Ruling on the matter, the Deputy President of the Senate, Barau Jibrin who presided over the plenary said he knew about the order of the court adding that he is constrained.

“There is a need for us to have restraint,” Barau said, adding that having listened to the comments of Sen Zam, who is the chairman of rules and business, their is need to stepped down debate on the report.

Other recommendations of the committee are “that the Ministry of Power and NERC should in the meantime adopt measures to address the problem of power scarcity holistically rather than its preoccupation with price manipulation which has proven to be counterproductive.

“That NERC should hold the DISCOs accountable on Key performance Indicators (KPIs) including failure to deliver on CAPEX and OPEX allocations, customer metering obligation under the Electricity Act, 2023, essential customer service obligations including customer sensitization, implementation of energy credits for customers who invested in transformers meters and other assets on the DISCO networks.

“That rate designs should only be cost-reflective if proper account is taken of the relevant macroeconomic environment that determine the affordability of electricity to the different segments of the market”

The committee also recommended “that the Federal Government metering intervention should be encouraged and intensified to address current metering gap of 6.3 million and this must be pursued by the FGN without prejudice to the statutory obligation of DISCOS to meter their customers as provided under Section 68(1)(b) of the Electricity Act, 2023. In this regard, Mr. President should be commended for the introduction of the Presidential Metering Initiative.

“That the Federal Ministry of Power should be advised to intensify efforts towards honouring the subsisting contract with Ziklagsis Networks Ltd (ZNL) for the manufacture, supply, installation, management and maintenance of Pre-Paid Meters (PPMs) in Nigeria including the recent Tripartite Metering Project Consortium Agreement between ZNL and De-Haryor Global Services Limited and the Nigerian Army dated 7th September, 2023 which was signed by ZNL for the metering of Army Barracks and other Military Facilities or in the alternative refund the initial funding to the Federal Government.

“That vigorous implementation of power decentralization provided for under the Constitution of the Federal Republic of Nigeria, 1999 (As Amended) and the Electricity Act, 2023 to relieve the Federal Government of the pressure to electrify every nook and cranny of this country should be encouraged.

And “that the Ministry of Power should establish Electricity Consumer Protection (ECP) Unit to develop, implement and enforce Electricity Consumer Protection component of the Electricity Act, 2023. 34(2)(c) and 119 (1)(f)”

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Legislature

Kogi Assembly urges Govt to beef up security around tertiary institutions

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By Friday Idachaba, Lokoja

KOGI State House of Assembly has called on Governor Ahmed Usman Ododo to beef up security around all the Tertiary Educational Institutions in the state to curtail further abduction of students from campuses by hoodlums.

The call was contained in a resolution of the House following adoption of a Motion Of Urgent Public Importance moved by Hon. Asema Baba Haruna (APC-Adavi) at plenary in Lokoja

Haruna who is also the Chief Whip of the House, while presenting the motion condemned the recent abduction of 24 students from the state-owned Confluence University of Science and Technology (CUSTECH), Osara.

The legislator sympathized with families of the kidnapped students on the sad incident saying, “It is high time we beefed up security around our schools to avert a repetition of what happened in Osara.

“The government should as a matter of urgency construct perimeter fencing in all our Schools to stop this hoodlums from kidnapping our Students.

“The Governor should also motivate our security agencies for their good work in combating insecurities in our dare State.” he urged.

Supporting the motion, Hon. Idowu Ibikunle (ADC-Yagba-West) who is also the Minority Leader of the House said though about 20 out of the 24 kidnapped students had been rescued, the condition tion of the rest could only be imagined.

He hinted that a business tycoon recently Kidnapped in his constituency had not been released.

“We are appealing to the Kogi state Government to make a stiffer law against kidnapping. By doing this, whoever that is caught in kidnapping will dance to the music”

Also supporting the motion, many of the legislators were unanimous in their call on security agencies to change their surveillance and operational strategies in tackling insecurity in Kogi State.

In his ruling, Speaker of the House, Rt. Hon. Aliyu Umar Yusuf (APC-Lokoja II) said Governor Ahmed Usman Ododo had shown much commitment and seriousness in tackling insecurity and making the state one of the safest in the Country.

“We want all the kidnappers to be apprehended and made to face the full wrath of the law. Kogi State can never be a breeding place for this criminal elements who are enemies of the State”, he added.

The speaker also urged the State Government to support the creation of State Police in a bid to address the spate of insecurity in the Country.

The motion was adopted by overwhelming voice votes in its favour. (Ends)

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Senate prescribes death sentence for hard drugs manufacturers

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**15years for consumers of hard drugs

The Senate on Thursday passed a bill which upgraded the maximum sentence of life imprisonment to the death penalty amidst controversy over the voice votes.
The legislation titled the National Drug Law Enforcement Agency Act (Amendment Bill) 2024 had passed a third reading at the Senate on Thursday.
The Bill sought to review penalties provision, update the list of dangerous drugs, strengthen the operations of the NDLEA, and empower the NDLEA to establish laboratories.
Section 11 of the current act which prescribes that any person who, without lawful authority; Imports, manufactures, produces, processes, plants or grows the drugs popularly known as cocaine, LSD, heroin or any other similar drugs shall be guilty of an offence and liable on conviction to be sentenced to imprisonment for life was amended to reflect a stiffer death penalty.
The bill was passed after the Senate considered the Report of the Committee on Judiciary, Human Rights and Legal Matters presented by Mongonu Tahir, the Senator representing Borno North.
Though the report did not recommend death penalty, Ali Ndume, the Senate Chief Whip, however, moved that the death penalty be replaced with a life sentence.
During a clause-by-clause consideration of Bill, Barau Jibrin, the Deputy Senate President who presided over the session, put the amendment on the death penalty to a voice vote and declared that the “ayes” had it, but Adams Oshiomhole, Senator Representing Edo North objected that the “nays” had it rather.
He argued that matters of life and death should not be treated hurriedly, but Barau said it was too late, as he failed to raise a point of division soon enough.
The bill was subsequently passed.

Speaking to newsmen on the implication of the bill, chairman Senate committee on Human Rights and Legal Matters indicated that the import of the ammendment of the NDLEA act as passed by the Senate prescribed the punishment of death sentence for people who engage in the manufacturing, processing of hard drugs.
“But for the people that engage in the consuption of these hard drugs the sentence prescribed is 15years.
“I think the Senate in its wisdom decided to prescribe death sentence in view of the havoc being created by substance and drug abuse in this country which if not nipped in the bud have the potential of destroying the future of this country because it is the majority of the youth that are engaged in the drug and substance abuse, sometimes innocently as a result of peer group influence. he sentence is 15years without the option of fine.

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