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Tag: NBET

  • NBET to spend N858b next year

    NBET to spend N858b next year

    The Nigerian Bulk Electricity Trading Company Limited (NBET) is to spend N858,493,153,585 in 2025.

    This is contained in the 2025 Appropriation Bill currently before the National Assembly for passage into an Act.

    Among the expenditures of the company is N422.6million for the development of guarantees liquidity and payment solution for the Nigerian Electricity Supply Industry (NESI).

    The company is also to spend N151million on general litigation, alternative dispute resolution awards and legal opinions.

    Read Also: NBET to Reps committee: we are not created to make money for government

    NBET is also seeking to spend N800 million on vehicles.

    Other capital projects, according to the bill, will gulp N857,693,153,585.

    NBET is essentially mandated to

    Recalled that NBET in November announced that the Nigerian Electricity Regulatory Commission (NERC) renewed its operating license for additional three years.

     The renewal was sequel to NERC review of NBET’s application and corporate business plan.

    The electricity bulk trader was set up as a credit worthy off-taker of bulk electricity distributed through the national power grid to consumers.

    The agency’s initial license was for a 10-year period which ended this November.

  • NBET to spend N858b in 2025

    NBET to spend N858b in 2025

    The Nigerian Bulk Electricity Trading Company Limited (NBET) is proposing to spend N858,493,153,585 in 2025.

    This is contained in its 2025 Appropriation Bill currently before the National Assembly for passage into an Act.

    Among the expenditures of the company is N422.6 million for the development of guarantees liquidity and payment solution for the Nigerian Electricity Supply Industry (NESI).

    The company is also proposing to spend N151 million on general litigation, alternative dispute resolution awards, and legal opinions.

    NBET is seeking to spend N800 million on vehicles, while other capital projects, according to the Bill, will gulp N857,693,153,585.

    Read Also: NBET to repeat submission for licence renewal

    Last month, NBET announced that the Nigerian Electricity Regulatory Commission (NERC) renewed its operating licence for additional three years.

    The renewal followed NERC’s review of NBET’s application and corporate business plan.

    The electricity bulk trader was set up as a credit worthy off-taker of bulk electricity distributed through the national power grid to consumers.

    The agency’s initial licence was for a 10-year period, which ended last month.

  • NBET to Reps committee: we are not created to make money for government

    NBET to Reps committee: we are not created to make money for government

    The Nigeria Bulk Electricity Trading (NBET) PLC has said that it was not established by the government to generate and remit revenue to the coffers of the federal government through remittances to the consolidated revenue fund.

    Addressing members of the House of Representatives Committee on Finance on an oversight visit to the agency, its chief finance officer, Sambo Abdullahi also said that the agency does not draw its finance from the annual budget of the federation.

    He explained that the organisation finances its activities through what he called regulators fund which it receives from the Nigeria Electricity Regulatory Commission.

    Abdullahi said the agency has not made any financial remittance to the federal government since it was established to be a bridge between power generation companies and distribution companies.

    He said further that NBET was registered under the Companies and Allied Matters Act which expects it to do business in accordance with global best practices, adding that it is audited according to the provisions of the CAMA.

    He said that the inception of the agency was not made of agencies listed under the Fiscal Responsibility Commission, but was built to operate under the CAMA and therefore not required to declare dividends from where they can pay the operating surplus to the government.

    He explained that when the Accountant General of the Federation deducted money from their account on the premise that they were owing the government, the money had to be refunded when they protested to the Minister of Finance.

    Speaking on subsidy in the electricity sector, the acting managing director of the agency, Johnson Akinnawo said the money budget for the electricity reform is used annually to pay subsidy on electricity consumed by Nigerians.

    He explained that the country’s power plants were concessioned by the government which entered into an agreement with the operators, who are expected to pay concession fees to the government in dollars.

    Read Also: NBET to repeat submission for licence renewal

    He said with the increase in the exchange rate, the price of electricity is bound to go up since the operators are paying their concession fees to the government in dollars, adding that the government was looking for ways to clear the backlog of debt owed to generation companies.

    Responding to questions from the lawmakers, Akinnawo said once power generated is not utilised, the government and the operators cannot earn money on it.

    He said the electricity value chain in Nigeria is challenged throughout the chain, adding that the government is currently doing all it can you reform the sector through the World Bank

    Deputy Chairman of the committee recalled that the agency has had a running battle with the House because of the nature of their operations “based on what we see.”

  • NBET to repeat submission for licence renewal

    NBET to repeat submission for licence renewal

    The Nigerian Electricity Regulatory Commission (NERC) has directed the Nigerian Bulk Electricity Trading (NBET) to make another submission for its licence renewal.

    In his closing remarks at the Public Hearing for the licence renewal in Abuja, NERC Commissioner Legal and Licensing Compliance, Barrister Dafe Akpeneye, expressed dissatisfaction with the presentation the NBET Acting Managing Director, Mr. Johnson Akinawo made for renewal.

    According to the commissioner, the NBET boss failed to justify the issues that qualify the organisation for the renewal of its licence, which expires on November 21, 2024.

    Akpeneye insisted that NBET will not have the opportunity for another public hearing, although the NERC will give it the window to make a written submission justifying the request for a licence renewal.

    He said: “But in making those presentation to us, we expect you have talked more about the issues.

    “There are issues you need to give to raise level of confidence. Even somebody will walk out of this room and will make investment based on what you said because you are setting a trajectory of what is happening in the horizon.

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    “NBET has the opportunity to make a … We are not going to have a hearing for NBET. NBET knows why. When does your licence expire. November 21st.

    “So, we can’t start doing this anymore. So you have the opportunity to make a proper written submission in support of your application.

    “The commission hasn’t made up its mind on which way to go. “But on the basis of the strength of what you have presented before us, the decision will be taken.”

    In his presentation, Akinawo urged the commission to renew NBET licence by 10 years.

    He said the Nigerian Electricity Supply Industry (NESI) is not ripe for bilateral trade.

    He said NBET can still function as the supplier of last resort in the electricity market.

    According to him, there are still some Power Purchase Agreements that NBET needs to conclude.

    He doubted the ability of the states that NERC have given approval to establish their own electricity commissions to cope with tariff matters.

    Responding, the Azura – Edo Power Plant, Managing Director, Mr. Edun Okeke urged the commission to renew the NBET license.

    He said there is not need to limit the license to 10 years as Akinawo requested.

    According to him, an indefinite license will boost investors and banks’ confidence that the one limited to 10 years.

    Similarly, making case for the license renewal, the former Market Operator, Mr. Edmund Eje said NBET still has a substantial role to play in the industry.

    Meanwhile, the Mainstream Energy Solutions Limited, Executive Director, Mrs. Atinuke Taiwo asked NBET to state how it will function as the supplier of last resort.

    She also wondered how NBET will pay for the residual power it will buy, stressing if there is a capitalization or enough fund to pay as supplier of last resort.

    Taiwo also wondered whether NBET has the funds to pay for market shortfall.

    The Market Operator, Dr. Abubakar Aliyu urged NERC to renew the NBET license, noting no entity will take care of the Power Purchase Agreements better.

  • Is electricity industry ready for NBET’s exit?

    Is electricity industry ready for NBET’s exit?

    Sir: The Nigerian electricity landscape has been undergoing significant transformations in alignment with the country’s goal of promoting a competitive national electricity market. The EPSRA 2005, now repealed by the Electricity Act (EA) 2023, made provisions for the systems and processes to be set up to ensure the validity of the electricity sector’s pre and post-privatization activities. One of the post-privatization requirements was the establishment of the Nigerian Bulk Electricity Trading Company (NBET).

    NBET is the bulk buyer of power generated and fed into the national grid by Generation Companies (GenCos) through a Power Purchase Agreement (PPA). The Power Purchase Agreement executed between GenCos and NBET provides guidelines that govern transactions between GenCos and NBET. NBET operates as the wholesaler of power purchased from GenCos to Distribution Companies (DisCos) through a vesting contract. Vesting contracts govern transactional relationships between DisCos and NBET. Consequently, NBET acts as a middleman whose primary function revolves around ensuring the stability and financial viability of the electricity market by guaranteeing payments to GenCos, thereby sustaining electricity generation and supply.

    As the Nigerian electricity market progresses to the next market stage, NBET’s role is under scrutiny, particularly regarding its long-term sustainability and relevance. Given NBET’s crucial responsibility over the years, is the NESI ripe for NBET’s exit from the market? Can the NESI succeed without NBET’s operations in its market design?

    The debate surrounding NBET’s future revolves around its effectiveness in fulfilling its intended role within NESI. Advocates for NBET’s exit argue that the company has failed to act as a creditworthy off-taker, inhibiting market dynamism and hindering the realisation of economic benefits envisaged under the PPAs. They contend that removing NBET from the equation would enable stakeholders to engage more freely, promoting innovation, competition and efficiency within the market. Additionally, they stress the importance of developing a comprehensive strategic plan to facilitate a seamless transition to a more competitive market structure. Therefore, extending NBET’s license is deemed unnecessary in light of these considerations.

    Read Also: Adeleke’s aide absent as IGP starts defamation case over comment against Oyetola’s ex-commissioner

    Conversely, opponents of NBET’s exit caution against premature dissolution, citing the company’s pivotal role in mitigating payment risks for DisCos. They argue that transferring these risks to GenCos could destabilise the market and undermine investor confidence. Furthermore, they emphasise NBET’s contribution to market stability and investor assurance, highlighting the need to address underlying structural issues before contemplating its exit. In addition, NBET’s presence as a reliable off-taker, backed by the federal government, instils confidence in investors to engage in the power sector. Extending NBET’s license ensures the sustained confidence of investors and enhances sector sustainability.

    The readiness of NESI for NBET’s exit depends on various factors, including considerations regarding the emergence of the state electricity market, regulatory frameworks, infrastructure, and the capacity of market participants. A well-planned transition implementation strategy is imperative to mitigate potential risks and uncertainties associated with NBET’s exit. This strategy should address existing contractual gaps, resolve institutional misalignments, and build the capacity of market participants to operate efficiently in a post-NBET environment. NBET and NERC must establish a clear and well-thought-out mechanism for winding up the bulk traders’ activities.

    With the emergence of the state electricity market introduced by the Electricity Act of 2023, states are boldly developing their own electricity market. Another crucial question emerges: Should states incorporate the NBET market design in setting up their state electricity? The peculiarities of each state need to be considered. The suitability of this choice depends on each state’s unique circumstances and should emphasise the need for tailored approaches to electricity market development or design.

    While the prospect of NBET’s exit presents challenges and opportunities for NESI, careful deliberation and strategic planning are essential to navigate this transition successfully. A collaborative approach with industry stakeholders is crucial to ensure Nigeria’s electricity sector’s seamless and sustainable evolution towards a more competitive and resilient future

    •Ani Nkem Nnenne Esq.

    nkemani2011@yahoo.com

  • DisCos low remmittances inhibits NBET

    The Nigerian Bulk Electricity Trading (NBET) Plc yesterday blamed its inability to meet its obligation to electricity generating companies (GenCos) on the low remmittances from the power firm which is  between 25 and 30 per cent.

    Due to the shortfall, the GenCos too cannot meet their obligations to their gas suppliers.

    The NBET Managing Director, Dr. Marilyn Amobi, disclosed this in a note to The Nation in Abuja.

    The note which was endorsed by Mr. Ibrahim Saliu on behalf of NBET CEO, explained that the Nigerian Electricity Regulatory Commission (NERC) is already looking into different ways to solve the liquidity challenge in the electricity market.

    Amobi said: “The Nigerian Electricity Supply Industry (NESI) is still facing severe liquidity challenges. Remittances from the DisCos to the market still hover around 25-30 per cent of their invoices.

    “This makes it practically impossible for NBET to meet its payment obligations to the GenCos and which in turn constrains the ability of the GenCos to meet their obligations to their respective gas suppliers. The government, through the industry regulator, NERC is examining various ways to address this liquidity issues.”

    The Executive Secretary, Association of Power Generation Companies (APGC), Barr Joy Ogaji, confirmed yesterday that the liquidity issue in the industry was yet to abate.

    “Nothing has changed. The payment issue has not changed,” she said in a telephone interview.

    Ogaji had also said gas suppliers such as Total and Shell Petroleum Development Company (SDPC) had shut their supply to four gas companies for failure to pay their gas debt.

    She said the GenCos are looking forward to hearing from the Minister of Power, Works and Housing, Babatunde Fashola and NERC in terms of the sector’s policy direction.

    She said: “We are yet to hear the policy direction from Fashola and NERC.”

    She had early this year said the N701billion Power Assurance Guarantee intervention for the GenCos got finished in December 2018.

    The Ministry’s Permanent Secretary, Dr. Louis Edozien that commented on the payment of shortfall to the GenCos in NERC workshop on eligible customers on February 12, said it is not the responsibility of government to pay for GenCos’ shortfall.

    According to him, the government that paid the intervention through NBET will now exit from playing the role.

     

    Edozien said that “In addition to that 2,000 MW,  the 4,000mwh that is consistently being delivered is not fully paid for. Government through the nation’s insurance Programme is paying the generation companies for any shortfall payment from NBET.

    “Clearly that is not what act intends the industry to be. And ultimately government has to exit from this role.”

    Amobi that The Nation asked to comment state whether there is a fresh government intervention for the GenCos, said that “NBET is not the approving authority for power sector intervention funds. If a decision is taken by the appropriate authority on it, the information will be made public.”

     

  • FG stops payment of GenCos shortfall

    …urges evacuation of stranded 2,000mw for revenue

     

    The Federal Government on Tuesday announced its exit from the payment of the shortfall for the 4000mega watts per hour (mwh) to the Electricity Generation Companies (GenCos).

    According to the Permanent Secretary, Ministry of Power, Dr. Louis Edozein, who broke the news to stakeholders at the Nigerian Electricity Regulatory Commission (NERC) workshop on Eligible Customer Regulation in Abuja, the Electric Power Sector Act does not make provision for the Nigerian Bulk Electricity Trading Company (NBET) to pay for the shortfall to the GenCos.

    He told the stakeholders that in line with the contractual agreements, it is the consumers, who should pay for the power they consume.

    His words: “In addition to that 2,000 MW, the 4,000mwh that is consistently being delivered is not fully paid for. Government through the nation’s insurance Programme is paying the generation companies for any shortfall payment from NBET.

    “Clearly that is not what act intends the industry to be. And ultimately government has to exit from this role.

    “So, it is this regulation that will ensure that not just stranded power but delivered power, is delivered to consumers who are contractually bound to pay for it. And if they do not pay for it they do not enjoy the service.”

    The Permanent Secretary noted that it is obvious that there is more generation than the consumers can pay for, noting that the solution is for the stakeholders to look for the customers that are not well served under the Eligible Customers Regulation to take it and pay for it for their benefits.

    Read Also: FG may convert seized properties to museum

    He submitted that “if we do this aggressively, that 2,000mw of so-called stranded generation will quickly evaporate.”

    He told the stakeholders to look for customers to buy the stranded power because it is inappropriate for government to continue to pay for the power.

    According to him, government cannot perpetually pay for their power consumption.

    Edozein also told the Transmission Company of Nigeria (TCN) to stop the complaint about non-increase of tariff to the NERC and work with the GenCos to get willing customers to buy the available power.

    He said that “I have a message also for TCN: stop complaining to NERC about your tariff. Your job is to satisfy your own customers that is GenCos and DisCos.

    “Work with them as you have the money to find all customers using this policy who will take the power GenCos have, contract with GenCos at a tariff that you, the GenCos and customers agreed to transmit the power close to the customers. That is the way you will raise your revenue.”

    The Permanent Secretary urged the DisCos to satisfy their customers in order to encourage them to pay for the service.

    He explained to the DisCos that the reason the customers would want to take advantage of the eligible customer regulation is when they are not satisfied with the services rendered to them by the DisCos.

    He said “So DisCos this is your opportunity to service your customers better. Listen to them when there is infrastructure challenge in getting the product to them.”

    There was however a mild drama as the Deputy Managing Director, Ibadan Electricity Distribution Company, Engr. John Ayodele counted the Permanent Secretary on stranded 2,000mw.

    He told the stakeholders that there is no stranded 2,000mw anywhere in the Nigerian Electricity Supply Industry (NESI) but the Executive Director, Mainstream Energy Solution Limited, Mr. Siraj Abdullahi, insisted that his company, Kainji Power Hydro habours some stranded power.

    He challenged the stakeholders to come visiting the plant to observe the stranded power.

  • N701. 9b subsidy: Power ministry, NBET flex muscle

    The misunderstanding between the Power ministry and the Nigerian Bulk Electricity Trading (NBET) may have compounded the process of recouping the N701 billion subsidy provided by the Federal Government to stabilise the power sector. Managing Editor, Northern Operation YUSUF ALLI reports the power tussle between the permanent secretary in the Power ministry and NBET’s managing director.

    THE Nigerian Bulk Electricity Trading (NBET) Plc has been urged to exert its energies on how to recover the N701 billion power subsidy granted to Generation Companies (GenCos).

    NBET’s Managing Director Dr. Marylin Amobi got a memo from the Power Ministry give priority to the recovery of the facility instead of hounding her workers.

    According to the ministry, it was sad that Distribution Companies (DisCos) had been receiving electricity supply from GenCos without much payment despite the fact that the end-users never defaulted.

    The ministry claimed that the payment performance of the DisCos has dropped since August 2017 from a little over 30 per cent to below 25 per cent.

    It urged the NBET chief to pull the brake on the suspension and sack of two management staff, Mr. Abdullahi Sambo and Waziri Bintube, who had cautioned the agency against leading the initiative for the N701 billion credit facilities for GenCos which sells electricity to the agency.

    According to investigation, the N701 billion was a “bridging facility to enable NBET provide minimum level of payment to generation companies to meet their obligations to gas suppliers and increase their levels of generation.”

    The loan is expected to be paid back through the following sources: retail electricity tariff where arrangements have been fully agreed upon and finalised at the time of repayment; budgetary appropriation; external borrowings by the Federal Ministry of Finance and any other payment arrangements to be agreed upon by the Central Bank of Nigeria and the Finance ministry, including auto debit into the Consolidated Revenue Fund (CRF).

    But, the DisCos, which ought to be sources of repayment through electricity tariff, had been defaulting even as the  DisCos, which do not spare consumers, had gets supply without payment to NBET which sells to them.

    There were fears that the Federal Government may not be able to recoup the loan from sales of electricity to DisCos, prompting the Power ministry to issue the strong-worded memo to the NBET managing director to shape up.

    Signed by the Permanent Secretary (Power), Mr. Louis O.N. Edozien, the memo reads in part: “In the meantime, I urge the MD/CEO to apply your creativity, energy and considerable knowledge you clearly possess to the real threats to NBET and the electricity industry, rather than wasting them on imaginary challenges to your authority (which is not in doubt), and fictional interference in the daily operations of NBET by the permanent secretary.

    “The following real threats are noteworthy: Viability and sustainability of the 2017-2018 N701.9 billion payment assurance program is premised on raising the payment performance of the distribution companies who buy electricity from NBET under Vesting Contracts from 24 per cent (as at January 2017) to 80 per cent and above by end 2018.

    “After steady improvement from January 2017 through August 2017 to above 30 per cent, a drop has been observed since September 2017 to below 25 per cent. Why is the payment performance dropping? What strategy does NBET propose to reverse the trend and attain 80 per cent or above by end of 2018.

    “The current payment performance of the distribution companies is too discretionary. It is necessary to agree a realistic ‘contractual’ payment threshold with the distribution companies that give NBET a remedy in the event of non-payment.

    “The contractual remedy is calling payment security provided for in the vesting contracts. NBET’s strategy to achieve this is long overdue. I am aware that NERC has proposed a pathway to a ‘contractual’ payment threshold by recognising ‘regulatory assets/entitlements’ based on the difference between the recently concluded tariff review and the actual tariffs chargeable .

    “NBET’s enforcement of the settlement calendar captured in e-market rules is unsatisfactory. Admittedly, the market rules did not anticipate the current persistent payment defaults, or the documentation required to implement the payment assurance program.

    “Nevertheless, it is necessary to agree, document and enforce a workable settlement calendar, with executed Power Purchase Agreement (PPA) Vesting Contract addenda as necessary. This work is outstanding.

    “In a related vein, whilst the payment assurance programme has brought confidence into the gas and generation end of the industry, that confidence will quickly dissipate if the current delays in disbursement of the monthly payment assurance persist. The last payment supplement disbursed to generation companies was for July 2017.

    “I only received the request for August, September and October 2017 after several reminders which I have forwarded to the governor of Central Bank. As we discussed, you are expected to submit for the minister’s consideration a payment calendar that excludes for a given any generating company that does not meet the documentation requirements by stated deadlines in the settlement calendar.

    “Several structural elements of the contracting process for the Power Purchase Agreement (PPA) and Put Call Option Agreement (PCOA) need to be streamlined, especially those related to waiver of sovereign immunity, the application of procurement regulations, and the timing of attorney-general’s clearance. NBET’s strategy for streamlining these processes is long outstanding.

    “NBET was conceived as a transitional institution to leverage the financial strength of the sovereign to establish a bankable buyer of electricity on PPA agreement while the industry transition from a vertically integrated Government monopoly to a financial viable industry based on NBET, transition plan and timeline is still expected.

    “You are advised to refocus your considerable talents, which recognise and value on resolving these substantial threats recognise.”

    The ministry also urged Dr. Amobi to halt action on either the suspension or sack of two NBET officials.

    The memo said: “I repeat my instruction (copy attached) that NBET management, which you lead, refrain from taking any action that gives effect to your report that Waziri Bintube and Sambo Abdullahi, have ceased to be a staff of NBET, until appropriate authority has determined that they have in fact ceased to be staff of NBET, after considering their petitions contesting the veracity of the report.

    “For the avoidance of any doubt, the activity NBET management should refrain from taking includes suspension of their salaries and emoluments.

    “Contrary to your assertion, I did not convey this instruction overall to the Director Finance & Accounts or any other officer of NBET. I conveyed it to the MD/CEO of NBET in writing by the letter I had attached.

    “I intended the letter to be a lawful instruction from a superior officer in the context of Public Service Rule 030301 (m), so long appropriate authority of NBET, in the absence of the NBET Board, rests with the Minister of Power, Works & Housing, who is the head of the supervising ministry and representative of Mr. President, where the authority ultimately rests.

    “As stated in my earlier letter, I regret that the series of petitions and counter-petitions emanating from NBET have not been determined by appropriate authority.

    “The mistaken expectation was that the effusion of time and the team spirit that is usually built in the course of collective work by a management team would resolve the issues.

    “Since that has clearly not happened, the ministry is taking steps to review the cases and advise the minister on the steps to take to determine the cases.”

    However, in a counter-memo to the Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), the NBET managing director accused the Power ministry of undue interference.

    The ministry said the NBET chief got it wrong by reporting it to NERC, “a regulator in the power sector and an agency under the ministry”.

    Dr. Amobi said in her memo to the NERC that NBET’s continued existence was under threat by undue interference in its operations by the ministry through its permanent secretary.

    She said: “l refer to the captioned subject matter, and respectfully write to inform the Commission that the long-term survival of NBET is currently under threat.

    “In submitting this notification to the Commission, NBET relies on two of the terms and conditions of its licence; specifically: Condition 2, paragraph 5, which prescribes that always, the organisation should have sufficient capabilities to allow it to fully discharge its obligations; and Condition 8, paragraph 2 that requires NBET to provide a detailed report of the Commission if the organisation experiences a notable change in its circumstances that may inhibit it from achieving its licence conditions. This includes the occurrence of any act or omission by others that may materially affect NBET’s business operations.

    “Today, NBETs business operations as a provider of timeous, transparent and credible system settlement administration to the Nigerian Electricity Supply Industry (NESI), is under threat and requires the urgent intervention from the Commission.

    “Background: On the 15th day of November, 2011, in accordance with the Electricity Power Sector Reform (EPSR) Act of 2005, the Commission licensed NBET, an agency of the Federal Government of Nigeria, to carry out the business of bulk electricity trading the shareholding of the Company, which was incorporated at the Corporate Affairs Commission on the 29th day of July 2010, was divided between the Bureau of Public Enterprises (BPE) and the ministry of Finance.

    “Whilst the BPE holds 80 per cent of the shares of the company, the ministry of Finance holds 20 per cent on behalf of the Federal Government.

    “As the Commission is aware, on the 23rd day of August, 2011, Mr. President appointed its pioneer Board of Directors that had nine members. Mr. President dissolved the Board on the 16th day of July, 2015 vide a circular from the Secretary to the Government of the Federation with reference number: SGF.19/S.81/XlX/964.

    “The circular directed the chief executive officers of government-owned companies (which includes NBET) to refer matters that require the attention of their boards to Mr. President through the permanent secretaries of their respective supervising ministries.

    “It is to be noted that by the circular, whilst the ministry used to have one slot out of nine on the NBET Board of Directors, it became the de facto sole governing authority in absence of a properly constituted board.

    “In compliance with the presidential directive, NBET has referred several matters that required the attention of the Board to the Ministry of Power, Works and Housing (‘the Ministry’).

    “NBETs continued existence in the sector is now threatened by the undue interference in its daily operations by the ministry, through the permanent secretary (Power). Some of these include but are not limited to the following:

    “Promoting deviant behaviours and gross insubordination by all cadres of staff against the Managing Director and Chief Executive Officer; thereby enabling anarchy to thrive in the organization.

    “Refusing to deal with disciplinary matters that relate to management staff on which the organisation followed the process, recommended in its human resources policy manual to refer to the ministry.

    “Dealing directly and in some Cases, issuing counter directives to subordinates of the managing director / chief executive officer, and;

    “Unduly withholding, or not approving the requests the organisation makes to the ministry for its efficient and effective operation.

    “l attach for your guidance, the recent letter that the permanent secretary (Power) sent to NBET dated Monday the 22nd day of January, 2018. This letter seems to be is response to two letters the organisation wrote to the ministry and respectively dated the 22nd day of December, 2017 and the 9th day of January, 2018. The copies of these letters are also attached for your ease of referencing.”

    On the disciplinary action against two management staff, the NBET memo said: “It is to be noted that last week, the permanent secretary (Power) sent an oral message to the Director of Finance and Accounts (DFA) who acted in the MD’s absence, to reinstate Mr. Bintube and include him in the payment of salary for the month of January.

    “The permanent secretary (Power) is aware that on the 22nd day of December, 2017, having been absent from work for over one week without authorisation, that management followed due process to enter Mr. Bintube as having resigned and no longer in good standing. Mr. Bintube was duly informed of the decision and copies of the communication were sent to the ministry for its information.

    “Furthermore, the permanent secretary (Power) directed the DFA to include Abdullahi in the payment of salary for the month of January, 2018.

    “The permanent secretary (Power) is aware that on the 22nd day of December, 2017, the management suspended further payment of salaries and emoluments to Abdullahi and informed the ministry of the action it took, which will remain pending its determination of Abdullahis petition against his redeployment.

    “The permanent secretary (Power) knows that on the 20th day of June, 2017, Abdullahi wrote a joint petition to the ministry with Bintube. The permanent secretary is aware that the managing director refined the structure of the company to accommodate the treasury accountants the Head of Service of the Federation approved that the Accountant-General of the Federation deployed to NBET in pursuance to its ‘self-accounting’ status designation.”

    “The refined structure introduced critical lines of businesses that are required to enhance the efficiency and effectiveness of the organization.

    “The permanent secretary is aware that since the managing director refined the organisation in June and until today that Abdullahi locked up the security safe of the organisation whilst he sized its two audit stamps, as a result, inhibited the company from carrying out its statutory responsibilities.

    “Indeed, against the requirements in the civil service and the laws of the Federal Republic of Nigeria, Abdullahi sent the audit stamps of the organisation to the permanent secretary purportedly for ‘safe keeping’; and the permanent secretary held onto them without deeming it fit to return them to the managing director.

    “Finally, in consultation with the permanent secretary Bintube turned up to ’work’ and created an office for himself in the conference room of the organisation, purportedly on the advice of the permanent secretary that he resumes work ‘after his vacation’, which he, the permanent secretary approved for him.

    “The situation that the permanent secretary has created for this office with is oral directive to reinstate Bintube without due regard to the fact that that since the 22nd day of December, 2017, Bintube ceased to be a staff of the company.

    “In NBETs opinion, it further strengthens the message the ministry continues to provide to staff and stakeholders that the managing director is not in charge of the organisation.

    “It is to be noted that when disciplinary matters remain unresolved, as has happened at NBET, or the permanent secretary continues to communicate oral and formal directives on disciplinary matters, which are clearly unsupportable by law, it fosters a culture of indiscipline, impunity and insubordination.

    The permanent secretary is aware that his persistent directives that undermine the authority of the managing director emboldened some staff to continue to behave most inappropriately.

    “Prayer: The Commission is, respectfully, invited to urgently review the potential threat NBET is currently facing to its continued survival, due to the undue and persistent interference in its daily operations from the permanent secretary.

    “Honourable Vice Chairman sir, on behalf of the management team at NBET, I wish to reaffirm my resolute commitment to leading the organisation to successfully deliver in its corporate goals and ensure that Nigerians enjoy the benefits of the reforms currently being implemented in the sector.

    “Kindly accept, sir, the renewed assurance of my highest respect and regards.”

     

  • MDAs electricity debts will be paid – Fashola

    MDAs electricity debts will be paid – Fashola

    The Minister of Power, Works and Housing, Babatunde Fashola, said on Tuesday the Federal Government would pay the Ministries, Departments and Agencies (MDAs) electricity debts by setting it off against debts owed the Nigeria Bulk Electricity Trading company (NBET) by the Electricity Distribution Companies (DisCoS).

    He said the Federal Executive Council (FEC) has approved the payment of the verified sum of N25.9b the MDAs owed the DisCos.

    The minister stated these at the 20th monthly power sector stakeholders’ meeting in Owerri, Imo State.

    He said: “In the last month also, specifically on Wednesday 4th October 2017, the Federal Executive Council approved the verified sum of  MDAs debts totalling N25.9billion, and its payment by setting it off against the debts owed by the DisCos to NBET.

    “We are also making progress in recovering debts from international customers and you will be notified of how much has been received when the appropriate accounts confirm that they have received value for the credits we have been notified of.

    “You will be receiving official communication of how these have been applied to reduce debts owed by DisCos to NBET.”

    On investment recovery, Fashola added: “Understandably you are concerned about investment recovery and in your views, the solution is a tariff review.”

     

     

     

     

  • EFCC’s probe: NBET MD implicates Perm Sec

    EFCC’s probe: NBET MD implicates Perm Sec

    Worried by the ongoing probe by the Economic and Financial Crimes Commission, the Managing Director of the Nigerian Bulk Electricity Trading Plc( NBET) Dr. Marylin Amobi has raised the alarm that a Federal Permanent Secretary is putting her under pressure.

    She said the Permanent Secretary wanted her  to pay N248million to a consulting firm, in which her sister has interest, to facilitate the conclusion of Bond and Promissory Notes for the agency.

    She also said the Permanent Secretary has been trying to force her to resign based on the alleged instructions of the Acting President, Prof. Yemi Osinbajo.

    But she said she told the affected Permanent Secretary that she would not be bullied to quit office unless directed by the presidency.

    Amobi, who made the submissions in an Executive Summary sent to the presidency, asked the Acting President to urgently constitute the board of NBET.

    The Federal Executive had early in the year approved a Power Sector Recovery Plan to look for an alternative all-inclusive strategy for addressing the liquidity crisis facing the power Generating Companies( GENCOS) in the country.

    The recovery plan was designed to avert the total collapse of the electricity sector because many Distribution Companies ( DISCOS) have not been able to meet their financial obligations to GENCOS.

    Some of the liquidity sources being considered are getting a consulting firm to secure Bond and Promissory Notes; approval by the Federal Government and the Central Bank of Nigeria ( CBN) for a loan of N701billion under a “payment assurance programme; and an utilized $350million loan which has been hidden in an account.

    But the NBET boss said the affected Permanent Secretary has preference for “Power Sector Bond/ Promissory Note” through a consulting firm because of personal interest.

    She said the Permanent Secretary wanted her to pay N248million to the consulting firm to facilitate the conclusion of Bond and Promissory Notes for the electricity sector.

    She said it was difficult to comply with the directive of the Permanent Secretary because it was an unjustifiable  payment.

    The Executive Summary reads in part: “ I came under pressure yet again to do the following:

    1. Reconnect with the consulting firm to steer forward the conclusion of the Bond and Promissory Notes products for the electricity sector; and
    2. To pay a sum of N39M or N2248M to MT Consulting, as outstanding consultancy fees for what I consider as an unjustifiable payment for the work that they had done before I joined the organisation, that involved the development of the abandoned financial product.

    “When I protested to the PS about this, he engaged me by email on an allegation that the NASS was investigating a petition on a consultancy work NBET gave to an Engineer, which in his allegation was the same as the work the consulting firm had done. It is to be noted that the NASS confirmed to me a few days thereafter that they did not receive any petition as the PS had alluded.

    “At the kick off meeting that I had with the Permanent Secretary on the 19th of August  2016, I reiterated some of the concerns that I had with the Bond issuance to him.

    “ And he assured me that he understood my concerns, would support me to review the work NBET had already done on the product and make what I consider would be the best decision in the circumstance.

    “He did not tell me that he had an interest in the initiative and was the lead consultant and the face of the consulting company at the conceptualisation stages or that his sister is the MD / CEO the company. I learned that at the interrogatory session that the House Committee on Power conducted a few days after I resumed work as the MD / CEO at NBET.

    “However, the relevance of my concerns regarding the integrity of these matters soon disappeared after the National Assembly (NASS) launched an investigation into the matter in September 2016; and ruled that there was an “attempted fraud” at NBET.

    “Furthermore, they ordered that the Procurement Department that was previously under the Human Resources Department, be placed under the Office of the MD / CEO and that I penalised the staff who were culpable for the attempted fraud.”