11 May

Daily Watch – 30% of Nigeria’s electricity is unpaid for, TUC craves FG intervention in mass sacks

  • Jay McCoskey, the CEO of the Port Harcourt Electric Distribution Company, has said that Nigeria loses up to N21 billion to stolen electricity. McCoskey also said up to 30 percent of electricity generated is not paid for by users. McCoskey also complained that up to N7 billion debt is owed distribution companies by government customers. The Minister for Power, Babatunde Fashola, has said that Ministries Departments and Agencies of government must pay up the electricity debts accumulated over the years as one of the solutions towards incremental and steady power supply in the country.
  • The TUC president, Bobbio Kaigama, has asked the FG to intervene in the sack of workers by some major companies in the country, including Guinness, Cadbury, 7-Up and Coca Cola bottling companies. Kaigama said other companies laying workers off included Nigeria Breweries, Nestle Nigeria, as well as construction and oil and telecommunication companies. Thousands of workers from these, and other companies have been recently thrown into the already saturated labour market. Kaigama pointed to a recent report by the ILO which says that although Nigeria with an employment rate of 10.4 percent at the end of 2015 has a better record among 66 countries, its situation is “worse than 111 countries, including 23 African countries, which have unemployment rates lower than 10.4 percent”.
  • Oando Gas and Power Limited, has started developing a mini LNG facility through its subsidiary, Transit Gas Nigeria Limited in Ajaokuta, Kogi State. The facility is being built to meet up with the gas supply requirement for captive power plants, embedded generation, and industrial clusters in the Northern region, as well as stranded customers in the South. Upon completion, off-takers, particularly, power plants and industrial customers who currently utilise liquid fuels such as diesel and LPFO, will be able to lower energy costs by up to 40 percent. It will also bring about a significant reduction in carbon emission. The Ajaokuta LNG facility will commence operations in the second quarter of 2017.