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Revealed! How Siemens Got Energy Deal

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A high wire presidential intervention brokered by Angela Merkel, German Chancellor led to the inclusion of controversial firm, Siemens Nigeria in the energy partnership deal between Nigeria and Germany, Nigeria CommunicationsWeek investigations can now reveal.

Though a groundswell of criticisms have greeted the deal, the Federal government is going ahead with the energy deal where Siemens Nigeria and four other German firms — EVONIK, ArGe, E.ON and KfW Ipex Bank are expected to boost power supply in electricity starved Nigeria.

Siemens which was suspended and its supply contract cancelled in December 2007 by the Federal Government for allegedly offering $14million bribe to Nigerian officials will act as lead engineers for various power projects in different parts of Nigeria under the new energy deal.

The projects include the rehabilitation and implementation to supply water; problem–solving assistance; and capacity building — are expected to inject about 6,500 megawatts of electricity into the national grid between 2008 and 2020.

Nigeria CommunicationsWeek gathered that President Umaru Musa Yar’Adua, was particularly impressed with the concerns expressed by the German Chancellor over Nigeria’s notoriously unreliable power supply and offered her countries expertise to solve it.

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Siemens is also credited with wealth of knowledge of the Nigeria energy environment being the first company in West Africa to establish modern production facilities for power distribution and control systems.

It built the Geregu Gas Power Plant in Kogi State, North Central Nigeria in February, 2007 and it is also the first company in Nigeria to manufacture medium- and high-voltage switchgear, distribution systems, transformers and control panels, which are still widely used in Nigeria’s industrial sector today.

A close source to the presidency said that Yar’Adua was also counting on a number of factors including assurances by Siemens that it will henceforth conform to global best practices in Nigeria and elsewhere.

Critics said that the reasons were pedestrian describing it as "moral somersault" which show that there is no genuine commitment to tackle the power crisis in Nigeria.

Yinka Odumakin, national publicity secretary, Afenifere, said that "the only redemptive route for the administration is to get Siemens out of this deal"

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Odumakin also said that "there is no way the Yar’Adua presidency can convince right-thinking people that this Siemens deal is not borne out of moral compromise. It is rather sad that while the nation is waiting for what the House of Representatives would do on the report of the Elumelu Committee on power probe which indicted former President Olusegun Obasanjo, Segun Agagu, governor of Ondo state, Liyel Imoke, former governor of Cross River state and others, President Yar’Adua has entered into another phoney deal that may go the way of the squandered $16billion of Obasanjo era"

Elsewhere,Hon Dino Melaye, former chairman, House Committee on Information accused the president of "improper and immoral characteristics" by patronizing Siemens, a firm blacklisted last year over alleged bribe scam.

Mr Dahiru Abdullahi, national secretary, Progressive People’s Alliance (PPA) said that such partnership with a `discredited’ company suggests government’s tolerance for corruption”.

 

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Ogbaga, Abuja Lawyer to Sue Telcos, DStv over Alleged Unfair Practices

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Ogba Ogbaga, an Abuja-based lawyer, has said that he has been instructed to institute legal proceedings against MTN Nigeria, Airtel Nigeria, Globacom, 9mobile and MultiChoice Nigeria, operators of DStv, over what he described as unfair consumer practices relating to expiring data bundles and television subscriptions.

Ogbaga, Abuja Lawyer to Sue Telcos, DStv over Alleged Unfair Practices

In a statement posted on Facebook, Ogbaga said his law firm, GIMBG Legals, received instructions from its client, KAA, also known as KaaTruths, to challenge the companies’ subscription policies in court.

According to him, the proposed suit will question whether telecom operators and DStv’s subscription models comply with provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018 and other applicable laws.

Ogbaga alleged that telecom providers operate internet data services that are unfair to consumers, claiming subscribers sometimes do not receive the services they paid for but still lose their subscriptions once the validity period expires.

He also criticised DStv’s subscription model, arguing that consumers lose paid viewing time due to factors such as power outages, adverse weather conditions and service interruptions, while subscriptions continue to count down regardless.

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“Our clients have complained that MTN data services are unduly one-sided,” Ogbaga said, adding that the legal action would also extend to other telecommunications providers and DStv.

He said the court action would seek judicial determination on whether the companies’ subscription practices comply with consumer protection laws.

The lawyer also invited interested legal practitioners to collaborate on the case, saying his firm would provide updates as the matter progresses.

In a separate Facebook post on Wednesday, Ogbaga said previous policy discussions, town hall meetings and debates at the National Assembly had failed to address the concerns raised by consumers.

He argued that telecom operators regularly carry out maintenance and network upgrades that temporarily disrupt services without extending customers’ subscription periods, while DStv subscribers also lose viewing time because of electricity outages and weather-related disruptions.

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NAICOM Issues New Licences to 43 Recapitalized Insurers

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The National Insurance Commission (NAICOM) has commenced the issuance of new licence certificates to insurance companies that successfully met the industry’s new minimum capital requirements, marking the formal beginning of a new regulatory era aimed at strengthening the financial capacity, governance and global competitiveness of Nigeria’s insurance sector.

At a ceremony held at the Commission’s headquarters in Abuja, the Commissioner for Insurance, Olusegun Ayo Omosehin, presented the new licence certificates to compliant operators, describing the exercise as a major milestone in the industry’s recapitalisation programme.

According to the Commission, a total of 43 insurance companies declared compliant with the new capital requirements are expected to receive the new licence certificates in phases.

Omosehin congratulated the successful companies, saying the issuance of the new licences signals the beginning of a stronger regulatory framework anchored on improved capitalisation, sound corporate governance, innovation and sustainable growth.

He urged operators to leverage their enhanced capital base to develop innovative insurance products, improve operational efficiency and deepen insurance penetration across the country.

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The Commissioner said the Commission expects the recapitalised companies to deliver stronger financial performance while maintaining high standards of professionalism and customer service.

He also announced that NAICOM’s next major regulatory initiative would be the implementation of the Risk-Based Capital (RBC) framework, under which insurers’ capital levels would be aligned with the risks inherent in their respective business portfolios.

According to him, the new framework will further strengthen the industry’s resilience by ensuring that insurers maintain capital commensurate with the risks they underwrite, thereby enhancing policyholder protection and boosting market confidence.

Omosehin reaffirmed the Commission’s commitment to removing regulatory impediments where necessary while maintaining effective oversight to safeguard policyholders and strengthen confidence in the insurance market.

The issuance of the new licence certificates marks the commencement of a phased transition to higher capital standards aimed at improving the financial capacity, solvency and claims-paying ability of insurance companies operating in Nigeria.

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Nigeria CommunicationsWeek Retracts Story on Pan African Towers Litigation

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Management of Nigeria CommunicationsWeek Media has withdrawn its publication titled “Adefolarin Ogunsanya and the Allegations of Shareholder Interference and Self-Dealing at Pan African Towers,” which was published on its platform.

Nigeria CommunicationsWeek Retracts Story on Pan African Towers Litigation

The decision to retract the story follows an editorial review to ensure that the platform maintains the highest standards of accuracy, fairness and responsible journalism in reporting matters that are the subject of ongoing judicial proceedings.

Nigeria CommunicationsWeek acknowledges that the issues raised in the publication remain before the courts and have not been finally determined.

Accordingly, the organisation has decided to remove the article from its platforms pending the conclusion of the legal processes or the availability of additional verified information.

The publication regrets any inconvenience or misunderstanding the report may have caused to readers or any individuals or organisations mentioned in the story.

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Nigeria CommunicationsWeek remains committed to the principles of balanced, factual and ethical journalism and will continue to uphold professional standards in its coverage of judicial and corporate governance matters.

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