Tuesday, 9 February 2016

Controversy: Group alleges scam in power sector

Controversy: Group alleges scam in power sector


– Statements by the Electricity Consumer Protection Forum (ECPF), suggests some fowl play in the power sector
– The ECPF claim that private electricity firms still owe the nation debts running into billions of dollars.
The Electricity Consumer Protection Forum (ECPF) has made statements suggesting the possibility of a fraud within the Nigerian power sector.
According to the ECPF, some firms which took over the Nigerian power sector after its privatization, are yet to pay the debt they owe the nation.
Adeola Samuel-Ilori, the coordinator of the forum, made the disclosure, while addressing a crowd at the office of the Ikeja Electricity Distribution Company (IKEDC) in Alausa, Ikeja.
A nationwide protest held on Monday, February 8, to kick against an increment in electricity tariffs.

The crowd was made up of members belonging to the Nigerian Labour Congress (NLC), the Trade Union Congress (TUC), the Consumer protection forum, as well as members of the general working public.
They had marched to the IKEDC office in protest against an allegedly “irrational” increase in electricity tariffs.
Samuel-Ilori who was of the opinion that Nigeria practically gave the power sector away on a platter of gold, said the group has been engaging the government on the delicate issue for about 3-years.
He stressed that he was in the knowing of all that has been happening in the sector, adding that he is aware that most of the firms which took over the power sector are yet to pay what they owe Nigeria.
The Electricity Consumer Protection Forum claims that the increment in electricity tariff is injustice to the Nigerian consumer

The ECPF  leader further informed that only three firms involved in the privatization-deal, had made full payments.
According to Samuel-Ilori, Nigeria is supposed to generate about $2.5billion from the sales, but the government cannot really account for the money generated so far.  He said: “I wonder if the money has been kept in a place called dedicated account, where nobody’s hand can reach it.”
The activist said the forum sees the increment as “an ‘abushment’ of the consumer”, debating that there is no way a producer can make an increase in price, without a correspondent improvement in the service delivery.
According to the ECPF, an increase in tariffs that does not correspond to the product quality is an aberration.

He informed that one of the Unique Selling Points (USP) of a product by organization is quality, and it is disheartening to know that the minister for power, works and housing, Babatunde Fashola, would agree that price be increased before quality is upped.
While still debating that the increment is an aberration, Samuel-Ilori recalled that in November 12, 2015, a similar protest was carried out regarding the tariff increase. He said the agitation was based on the fact that the increment legally, morally and economically wrong.
“Legally because there is a subsisting order received on may 28 2015, in a case instituted by my friend and colleague Barrister Adebiyi in Ikoyi Federal High Court,” the ECPF coordinator stressed.
According to him, Justice Idris Abubakar issued a decree placing on hold every act geared towards an increment in electricity tariffs, however, the government has gone against the injunction of the court, because the case has not been determined.
In conclusion, Samuel-Ilori stressed that

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