₦airaland Forum

fiizznation:
May God bless the wealthy men in kano. There are many people who donated one or two things ...Anyway kano will always take care of itself as usual. We are in kano and we ain't going anywhere until the fight against covid19 is won, insha'Allah.

sapientia:
The promised change is here.

Nigerians will pay much higher tariff for power in 2021, going by promises made by the Federal Government to the International Monetary Fund while seeking the $3.4bn emergency financial assistance recently approved for Nigeria.

The Executive Board of the IMF approved the Rapid Financing Instrument, which the Federal Government plans to use to address the economic impact of the COVID-19 pandemic in the country, on April 28.

A Letter of Intent, jointly signed by the Finance Minister, Zainab Ahmed, and the Governor of Central Bank of Nigeria, Godwin Emefiele, and addressed to the IMF Managing Director, Kristalina Georgieva, indicated that the Federal Government made a number of promises to the fund in order to secure the financial assistance.

One of the promises, or commitments, which the government made in a bid to assure the executive board of the IMF of its readiness to reposition the Nigerian economy after the pandemic, is that Nigerians would pay full cost-reflective tariff for power in 2021.

The Federal Government also told the IMF it intends to cap electricity tariff shortfalls to N380bn in 2020.

“We are also advancing in our power sector reforms – with technical assistance and financial support from the World Bank – including through capping electricity tariff shortfalls this year to N380bn and moving to full cost-reflective tariffs in 2021,” the Federal Government said in the letter.

On January 4, the Nigerian Electricity Regulatory Commission approved an increase in electricity tariff for the 11 electricity distribution companies in Nigeria.

It, however, could not implement the tariff increase after labour unions, lawmakers and other Nigerians kicked against the move, which would have commenced on April 1, 2020.

Although the NERC-reviewed tariff was not cost-reflective enough as required by power distributors, it showed that Nigerians would definitely pay more for electricity if it had been implemented.

This, therefore, implies that once the government enforces the payment of full cost-reflective tariff, in line with the promise to the IMF, power users might pay far higher than what was projected in NERC’s recent tariff review.

The commission had explained that its directive on the January 2020 tariff regime for different Discos superseded the earlier one issued on the subject matter.

According to details of the review published by the commission in January, for the Abuja Electricity Distribution Company, residential customers in R3 category who were paying N27.20 per unit would have been paying N47.09, had the regime started on April 1, 2020.The customers would have paid N19.89 more per unit.

The NERC review also showed that for Ikeja Electricity Distribution Company, customers on the R3 category who were paying N26.50 per unit would have paid N36.92 per unit from April 1.The new rate amounted to an additional N10.02 per unit.

In the same vein, going by the NERC’s stalled tariff plan, Enugu Electricity Distribution Company residential (R3) customers who were paying N27.11 per unit in 2015 would have paid N48.12 per unit from April 1, 2020.The new rates were, however, put on hold after customers kicked vehemently against the development.

But going by the Federal Government’s promise to the IMF, an implementation of cost-reflective tariffs in 2021 means that Nigerians would pay even much higher for power than the rates which NERC had planned to charge from April 1.

Also, in the Letter of Intent, which was dated April 21, the Federal Government also hinted at further increment in Value Added Tax as part of plan to increase its revenue to 15 per cent of Gross Domestic Product.The planned revenue drive also includes hike of excise fees and removal of tax exemptions.

“First and foremost, we will revert to our government’s planned medium-term fiscal consolidation path – which includes increasing revenue to 15 per cent of GDP through further VAT reforms, rise in excises, and removal of tax exemptions – once the crisis passes,” the letter said.

The Federal Government also assured the IMF that it was working to reduce its budget deficit to under three per cent of GDP in line with the Fiscal Responsibility Act.

The Federal Government also assured the fund that it was committed to eliminating recourse to central bank financing of budget deficits by 2025.

Khayceeofficial:
Better having a pandemic than having this demented bunch of ingrates tagged leaders Dealers

dkdmy:
We have to lockdown, that’s the only way we can survive this! God will help us

sweetsell:
Obasa is doomed for sure no escape.

Mysticwebb:
I can feel your pain Mr Sagay, I'm sure you might have calculated how much that will get to you during the relooting before you realise that there was a condition attached to the money.Thieves.

Speaking in an interview with SaharaReporters on Monday, the professor of law said it undermines the sovereignty of Nigeria for the United States to give conditions on the use of the money by the Nigerian Government.

Chairman of the Presidential Advisory Committee against Corruption, Prof Itse Sagay (SAN), has reacted to the return of $300m looted by the late dictator, Sani Abacha.

Attorney-General of the Federation and Minister of Justice, Abubakar Malami, confirmed the return of the looted funds on Monday in a statement by his Special Assistant on Media and Public Relations, Dr Umar Gwandu.

Speaking in an interview with SaharaReporters on Monday, the professor of law said it undermines the sovereignty of Nigeria for the United States to give conditions on the use of the money by the Nigerian Government. Itse Sagay

The United States Government had told Nigeria to be ready to “replace” the $300m General Sani Abacha loot it returned to the country if the fund was misused. 

According to the U.S. Justice Department, the money must be used for the agreed public projects highlighted in the agreement signed with it before the fund was returned to Nigeria. SEE ALSOJUST IN: Nigerian Government Receives $311m Abacha Loot From United States7 Comments6 Hours Ago

Sagay further explained that although it was wrong to give conditions, the US resorted to that based on previous experience with returned loot which was stolen upon getting to Nigeria.

Reacting specifically as to whether it was wrong for the US to give conditions on how the money should be spent, Sagay said, “In principle, it is wrong for them (US) to do that, it undermines our sovereignty and I will almost say it’s an insult of some sort given the fact that it is our money, which was taken to their jurisdiction illegally.

“What they (US) are doing is based on experience. We have had a lot of loot; Abacha loot released in the past which was simply relooted by those in power. That happened a lot and the whole world knows that that is why they have been giving conditions. SEE ALSOBe Ready To “Replace” Returned $300m Abacha Loot If Misused, United States Tells Nigerian Government12 Comments5 Hours Ago

“You find that the social investment project was as a result of this type of situation, where the World Bank was supervising the project because that was the condition, on which whatever money that was released was released.

“In the past, those funds were ‘relooted’ by those in power. It’s a pity because those in power now are the very antithesis of those who were in power then but the international community is not aware of that and it is not prepared to countenance or appreciate that fact.

“I think as long as both parties agree and that is what the government wanted to use it for in the first place or it was not imposed on them, it’s okay.

“Whatever is agreed to, usually it would be a good thing, usually, it will be for the benefit of the most vulnerable at times, maybe infrastructural project. Whatever it is, let the Nigerian government truly apply it to it and then the country will be better for it.”

"The wicked flee when no man pursueth: but the righteous are bold as a lion." -Proverbs 28:1