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At GOCOP Confab: Liyel Imoke says alleged expenditure of a phantom $16b delayed Nigeria’s power sector reforms

Published

4 months ago

October 5, 2024

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

A former minister of power, who later served as governor of Cross River State, Senator Liyel Imoke, on Thursday, in Lokoja, stated that alleged “expenditure” of a phantom $16 billion on the power sector by the Olusegun Obasanjo administration never happened.

Imoke, who was also Chairman of the Power Sector Technical Board under the Obasanjo administration, stated this as a matter of fact in his keynote at the 8th Annual Conference of the Guild of Corporate Online Publishers (GOCOP), themed: “Nigeria: Tackling insecurity, power deficit, and transitioning to digital economy.”

Admitting that the National Electric Power Authority (NEPA), as it then was, was a monopoly, he said that electricity distribution was also a monopoly even as the execution of so many programmes faced various challenges.

He referred to the undue delay in implementation of the power sector reforms, which resulted from the probe of the claim of a phantom expenditure of $16 billion on the sector under the administration.

According to him: “The power sector probe took about two years. The delay led to huge cost overruns; doubling costs of various contracts awarded during my tenure. Several of these projects were delayed in completion. As we speak, we still have several IPP projects that are ongoing.”

He said that at the end of the probe, they found out that there was no missing $16b, but lamented that the alleged expenditure of the phantom $16b had been used as a political tool to criticize “those of us in government.”

Imoke fingered inadequate information as the trigger for the allegation, pointing out that, for instance, on his watch as Minister of Power, the actual spending was between $2b and $3b, much of which went to the original electric manufacturer.

The former power minister said that insecurity, power deficit, and the slowness in Nigeria’s transition to a full digital economy were challenges impeding national growth and development.

According to him: “These are challenges that impede our growth as a nation. They make us less globally competitive. If you look at electricity insecurity and digital economy and if we tackle these, we will be on our way to economic growth.”

He said to unlock Nigeria’s potential, the administration must tackle insecurity, noting that there had been insurgency and the emergence of Boko Haram, which split into ISWAP.

“We have experienced banditry, kidnapping, armed killings, mass kidnapping, and illegal mining. These days, we can’t go to a gathering of this magnitude without seeing someone who had been kidnapped before. This is one of our new realities,” he stated.

He implicated ethnic tension as a contributory cause of communal violence, adding that grievances in the Niger Delta caused a lot of insecurity in the region in the 2000s.

Imoke spoke about organized private crimes in the Gulf of Guinea, which created insecurity in the area and the separatist marginalization in the southeast region, leading to agitation

He stated that, for instance, between 2009 and 2020, insurgency by Boko Haram alone resulted in over 40,000 deaths.

Imoke listed poverty, high unemployment rate, which was in 1999 put at six per cent, in 2022 put at 22 per cent but which as of today is approaching 40 per cent, weak governance and corruption as well as climate change, as some of the factors that contributed or fuelled insecurity in the country.

He also listed proliferation of small arms and violent crimes across the country as a sore thumb, lamenting that there were more arms with some non-state actors put in their hands by desperate politicians and which at the end of elections, were not retrieved from them and on which they now depended to survive.

Saying that hope was not lost, Imoke declared that successive administrations had succeeded in degrading Boko Haram and recovering territories in the Northeast hitherto seized by the group.

According to him, “The military was able to degrade the group and reclaim the areas in the Northeast around Maiduguri.”

He listed other successes as the decrease in Boko Haram insurgency and deaths by 23 per cent according to the global terrorism index, adding that “there is also reduction of militancy in the Niger Delta as there is no more MEND in the region.”

He continued: “Oil production has significantly rebounded until recently because during the era of MEND, oil production dropped below 1.5 m barrels per day.

“There is anti-piracy measure launched through NIMASA and international collaborators to reduce the piracy in the Gulf of Guinea. Piracy decreased by 58 per cent between 2020 and 2021 in the Gulf of Guinea.

“In the Southeast, the arrest of Nnamdi Kanu is an achievement in the region…Nigerian government has increased its surveillance measures; its counter insurgency operation has been used in combating terrorism. We now have drone technology and others to attack security issues across the board. The persistent Boko Haram issue has been watered down, but there is a humanitarian issue. About 2.7m people have been affected. The UN said that 350,000 people have died as a result of insurgency.”

He, however, noted that Herder-farmers’ conflict was still ongoing, pointing out that over 2,600 people were reportedly killed in 2021 alone.

The former Cross River State governor said that continued separatist agitation had led to the death of police officers as well as IPoB members, adding that there had been extra judicial killings and arbitrary arrests, among others.

He said a multifaceted approach was required to effectively tackle security issues in Nigeria, recommending among others community policing, which should be legally regulated, deployment of vigilance groups in securing the communities, and giving consideration to decentralisation of security rather than centralisation that has not worked.

He also established a nexus between security and economy, arguing that “until we can address the state of our economy, we will not able to address security issues effectively.”

He stated that education, skill acquisition, entrepreneurship training, and access to SMES funding were key, adding that a strong and comprehensive rural development programme was necessary to address banditry and farmer-herder conflicts.

“I am a strong believer in peace and mediation. If the government can establish dialogue platforms between farmers and herders, it would reduce competition over land,” he said.

He also said that the procurement process must be transparent and resources should be deployed in the welfare and training of security personnel, adding that the nation’s judicial system must be able to tackle impunity.

While dwelling on power deficit, Imoke said that there was a lack of continuation of policies and programmes, pointing out that “your predecessor is your most valuable material. We always assume that our predecessor did not know anything, and there is a tendency to want to start afresh. It is important for me to always go back to my predecessor to ask for guidance.”

Admitting that electricity problem in Nigeria is the most humongous problem ever, Imoke said that with over 200 million Nigerians, the country’s installed capacity was like 13,000 megawatts. He said: “It sounds like good news, but we only manage to distribute an average of 4,000 megawatts whereas there are potential distributable 20,000 megawatts.”

He reeled out some sobering comparative statistics about per capita electricity consumption by Nigeria and some countries on the African continent based on recent data.

According to the data referred to by Imoke, “Nigeria per capita electricity consumption is between 150 and 200 kilowatts hours per year (kilowatts hour is the amount of electricity delivered to each household in the country in a year); Ghana is between 800 and 1000 kilowatts hour per year; South Africa is between 4000 and 5000 kilowatts hours per year while Ivory coast is between 500 and 600 kilowatts hour per year.”

Imoke lamented the Nigerian situation, adding that “these tell you the strengths of industrial bases of these countries.”

He, however, noted that despite numerous reforms in Nigeria, the power sector had continued to struggle.

Imoke asked if there was a solution in the face of growing demand? He resolved the question somewhat in the negative, pointing out that with the exponential growth in Nigerian’s population, there was a concomitant rising demand on the electricity supply.

On the transitioning to digital economy, Imoke said the growth in e-commerce platforms like Jumia and others was allowing for competition and efficiency.

According to him: “We are in the fourth industrial revolution, and it is a digital revolution. We missed out on the first, second, and third industrial revolutions. It is for us now as a nation, with a deliberateness of government policy, not to lose out on the fourth industrial revolution.

“All the three sectors-security, power and digital economy – are critical to our growth. The three are intertwined challenges that Nigerian must address to unlock her potential.

“With the collective effort of all, Nigerian can truly emerge as a global leader. Let us seize this moment to build a secure, electrified, and digitalized Nigerian that offers prosperity, growth, and development to all.”

News

TCC is Required, WAEC Exams Still Free in Lagos, LIRS Clarifies

Published

12 hours ago

February 4, 2025

august24admin

TCC is Required, WAEC Exams Still Free in Lagos, LIRS Clarifies

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The Lagos State Internal Revenue Service (LIRS) has reiterated that the provision of FREE West African Examinations Council, WAEC registration for SS3 students in state-funded secondary schools is a vital policy of the Lagos State Government and that free education policy from kindergarten to SS3 is still in operation.

This initiative, part of the THEMES PLUS agenda, is included in the government’s broader efforts to provide essential services such as affordable housing, efficient transportation, free healthcare, youth and small business empowerment programs, enhanced security, and better road infrastructure, among others.

Mr. Ayo Subair, Executive Chairman of LIRS, stated, “It is standard procedure to require a Tax Clearance Certificate (TCC) to access government services. To obtain a TCC, individuals must file their annual tax returns for the applicable assessment year and ensure their tax payments are currently based on their declared income.”

He highlighted that this requirement has been in practice for a long time and aligns with Section 85 of the Personal Income Tax Act (PITA) 2004 (as amended).

It is important to emphasize that every resident of the state, whether in formal employment or not, is required by law to file annual tax returns, declaring their income and paying any taxes due.

This requirement is backed by the Nigerian Constitution, it is also the law, as stipulated in the PITA and part of the social contract between the government and residents.

The Lagos State Government is dedicated to offering quality and efficient services to its residents. As part of this mission, it mandates that all taxable individuals register with the tax authority, submit their returns, and pay applicable taxes to maintain an updated Tax Clearance Certificate (TCC).

Mr. Subair explained that tax compliance is essential for the sustainability of public programs and services.

He noted that requiring a TCC for access to free services is not a new policy but a longstanding practice intended to foster fairness and transparency in using public resources. Tax revenues help fund various public programs that benefit millions of Lagos residents. For informal sector taxpayers, who might not have detailed financial records, the government has introduced a presumptive tax of ₦10,100 (comprising ₦10,000 in annual tax and a ₦100 development levy) to facilitate their inclusion in the tax net.

To enhance convenience and streamline the process, LIRS has deployed staff and agents to markets and schools, establishing one-stop centers where individuals can obtain their TCC without needing to visit tax offices. Flexible payment options, including installment plans, are also available, though full payment must be completed before the TCC is issued.

He also added that the TCC of guardians will be accepted from students who do not reside with their biological parents.

“The aim is fairness, accountability, and sustainability,” emphasized Mr. Subair. “This policy is not about inflicting hardship, but rather ensuring that everyone, including those in the formal sector, contributes their fair share to sustain the provision of essential services.”

By meeting their civic responsibilities, residents play a role in the growth and development of Lagos State, reinforcing the government’s commitment to enhancing the quality of life for its citizens.

News

LAWMA Intensifies Enforcement, Waste Clean-up Across Lagos

Published

12 hours ago

February 4, 2025

august24admin

… Agency Urges Residents to Stop Patronising Cart Pushers

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The Lagos Waste Management Authority (LAWMA) has intensified its enforcement and clean-up operations across the state to curb indiscriminate waste disposal and maintain environmental sustainability.

The agency’s Managing Director and Chief Executive Officer, Dr. Muyiwa Gbadegesin, emphasised LAWMA’s unwavering commitment to keeping Lagos clean, noting that the monitoring and enforcement team had been mobilised to ensure compliance with waste management laws of the state.

He said, “LAWMA remains resolute in stamping out illegal waste disposal and environmental violations. Our Environmental Monitoring and Enforcement Anti-Cart Pushers Squad has been actively dislodging illegal waste operators who contribute to the degradation of our environment. We urge residents to desist from patronising them and instead work with registered PSP operators for proper waste disposal.”

Gbadegesin said the enforcement team recently carried out major operations in areas like Ifako-Ijaiye, Dopemu, Agege, Ojodu Berger, and other parts of Lagos, apprehending cart pushers known for collecting waste and dumping it at unauthorised locations, stressing that such activities violated environmental laws and undermined the state government’s efforts at maintaining a clean and livable city.

He warned that ignorance of the law is not an excuse and anyone caught engaging in cart pushing would be made to face the full wrath of the law.

The LAWMA boss further noted that the Authority had also commenced the evacuation of waste from illegal dumpsites along the Lekki-Epe Expressway, particularly behind Circle Mall, adding that the operation, simultaneously taking place at Mile 2 Badagry expressway, would continue in the coming weeks, in line with the agency’s ongoing efforts to clear accumulated waste, remove silt along the median and verges and prevent indiscriminate disposal along highways.

In a separate exercise, LAWMA has intensified efforts to clean up Lagos waterways, ensuring that rivers and water bodies remain free of waste and blockages. The initiative is aimed at reducing environmental pollution and promoting cleaner water channels across the state.

Gbadegesin urged Lagosians to support LAWMA’s initiatives in 2025, by properly disposing of their waste, reporting service gaps, and calling the agency’s helplines for backup waste collection services.

“A cleaner Lagos is achievable when everyone plays their part. We urge residents to work with assigned PSP operators, report waste-related infractions, and adopt responsible waste disposal habits. Together, we can create a cleaner and healthier city for all,” he added.

For waste management related issues and complaints, please call LAWMA toll-free numbers: 080000LAWMA (08000052962), 07080601020 and 617, or visit www.lawma.gov.ng.

News

Access Bank Appoints Uche Orji as Independent Non-Executive Director

Published

2 days ago

February 2, 2025

august24admin

Access Bank Appoints Uche Orji as Independent Non-Executive Director

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Access Holdings Plc (‘the Company’) is pleased to announce the appointment of Mr. Uche Orji as an Independent Non-Executive Director of its flagship subsidiary, Access Bank Plc (‘the Bank’), effective from January 7, 2025, following the approval of the Central Bank of Nigeria (‘CBN’).

This appointment reflects our commitment to enhancing our governance practices and ensuring a diverse and experienced board.

Mr. Orji is a renowned investment banking professional, information technology entrepreneur, and finance expert with three (3) decades of professional and board experience. He is the Co-founder and Partner of Titangate Capital Management, an equity firm that invests in deep-tech, enterprise software, semi-conductors, hardware, and artificial intelligence companies.

He is the Founder and Director of Vitesse Africa Limited, an investment advisory firm focused on African energy, technology and infrastructure sectors. He serves as an Executive Board member and investor in Ultrasafe AI, an artificial intelligence/IT development firm that maintains strategic collaborations with leading technology companies. He also sits on the Board of Private Infrastructure Development Group, London, and chairs the Risk Committee.

Previously, Mr. Orji served as the founding Managing Director and Chief Executive Officer of Nigeria Sovereign Investment Authority. He held positions as Managing Director and Senior Analyst at UBS Securities Limited New York and Managing Director and Head of European Technology/Semiconductor Equity Research at JP Morgan Securities, London. He also served as Executive Director/Portfolio Manager at Goldman Sachs Asset Management, London. Earlier in his career, he was Acting Financial Controller at Diamond Bank Limited and an Audit Trainee at Arthur Andersen & Co.

He holds a Bachelor of Engineering Degree in Chemical Engineering from the University of Port-Harcourt and a Master of Business Administration from Harvard Business School.

Commenting on the appointment, Mr. Paul Usoro, SAN, the Chairman of the Bank said:

“Mr. Orji has been appointed based on his exceptionally rich professional, academic, and corporate board experience which will be invaluable to the Bank as we continue to pursue our strategic objectives.

We are confident that his addition to the Board would further enrich the quality of our decision-making process, enabling us to deliver even greater value to our customers and stakeholders.

His appointment has been made in accordance with the Bank’s internal policies and has been notified to all relevant regulatory authorities underscoring our commitment to upholding the highest standards of corporate governance.

On behalf of the Board, Management and staff, I warmly welcome Mr. Orji to the Board and look forward to his contributions towards our goal of becoming one of the top 5 African Banks in the shortest possible time.”