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FG May Pay ‘Failed Investors’ N736Bn to Repossess Discos

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Federal government is considering repossession of 10 electricity distribution firms as one of the options to rescue the nation’s beleaguered electricity industry.

 

According to the Punch, this is coming ahead of the scheduled final performance review of the private firms that bought into the distribution companies carved out from the defunct Power Holding Company of Nigeria (PHCN).

 

However, document available to one of our correspondents shows that the Federal Government would require up to $2.4bn (N736bn) to repossess the privatised distribution assets from the core investors if it finally takes the decision.

 

Giving clue that it could recover the assets from the core investors, the Ministry of Power, Works and Housing in a document sighted by one of our correspondents has described the co-owners of the distribution companies as ‘failed investors.’

 

The distribution and generation companies carved out of the defunct Power Holding Company of Nigeria were handed over to private investors on November 1, 2013, following the privatisation of the power sector by the President Goodluck Jonathan administration.

 

The Transmission Company of Nigeria, which is responsible for electricity transmission, is still fully owned and operated by the government.

 

The PUNCH had on Friday reported that 17 of the nation’s 27 power stations had been forced to shut down some of their units on the back of low demand by Discos, worsening the blackout being experienced by millions of customers across the country.

 

11 Discos declared technically insolvent

Total power generation dropped to 3,264.4 megawatts as of 6am on Monday, August 12 from 3,580.5MW on Sunday. It stood at 2,842.1MW as of 6am last Thursday.

 

Five and a half years after privatisation, the 11 Discos have been described as ‘technically insolvent.’

 

The ministry, in its new ‘Power Sector Policy Directives and Timelines,’ said there was an urgent need to recapitalise the Discos.

 

It described the inability of the Discos to improve customer service and meet operational costs as a direct consequence of their inability to raise capital.

 

The Bureau of Public Enterprises (BPE) said in October 2018 that the five-year performance agreement with the core investors in the Discos, with the exception of Kaduna Disco, became effective on January 1, 2015 and the fifth anniversary for final performance review would therefore be December 31, 2019.

 

The ministry said the Discos’ accumulated debts to the Nigeria Bulk Electricity Trading Plc and the Market Operator had made them technically insolvent.

 

On the option of repossessing the distribution assets, it said, “To do so within the provisions of the Share Sale Agreement will require a sum in the region of $2.4bn, some of which will be paid as compensation to the failed investors. This is not a desirable outcome. It is noteworthy that government is yet to pay the investor in Yola Disco for its negotiated return to government.”

 

On July 2015, the Federal Government took over Yola Electricity Distribution Company following the exit of the core investor after it declared a force majeure, citing insecurity in the North-East geopolitical zone of the country.

 

While highlighting the reasons for the inability of the Discos to raise the capital required, the ministry said new lenders would require additional equity injection.

 

“But any new equity investor would require clarity about how the accumulated debts would be treated, and what support, possibly in the form of subsidy, regulatory assets and or higher tariff, would be available to manage new operating shortfalls during a transition period,” it added.

 

Review power sale but don’t politicise exercise —ECAN

Mr Chijioke James, president, Electricity Consumers Association of Nigeria (ECAN), told Punch correspondent in a telephone interview that there was a need to revive the power sector.

 

He said, “It is a welcome development that by December, there will be a review to know how the core investors who took over the power assets have performed. It is based on that feedback mechanism that the government can make an informed decision, which should not be political because the power sector is a very strategic sector for the economy of our country.

 

“Therefore, in taking any decision, they should have the overall national interest at heart, and not make the same mistakes made in the past. We will love to see a situation where things are done based on merit.

 

“The Discos that are doing well should be supported and encouraged to do more; those who have failed should be shown the way out.”

 

Cancelling Discos sale’ll come with contigent liability —TCN MD

Although Mr Usman Mohammed, managing director of TCN, had consistently called for recapitalisation of the distribution companies, he said that cancelling the sale of the Discos was not in the best interest of the nation.

 

Mohammed had stressed the need for the recapitalisation of the Discos, saying the transmission company would support any initiative aimed at expanding the distribution network.

 

He said in an interview, “If you implemented right things wrongly, you should right the wrong instead of cancelling it. Because when you cancel it, you get it wrong completely. What we need is to correct it, and recapitalisation can correct it.

 

“If we cancel the privatisation, we are going to have a contingent liability and we will send a signal to the whole world that Nigeria is not private sector-friendly.

 

“Secondly, does government have sustainable money to invest in the power sector? No. When you cancel, you will return the money of the investors and you are going to pay them 20 per cent for five years.”

 

Speaking at the opening of the 23rd Nigeria Economic Summit in Abuja on October 10, 2017, the Chairman of Heirs Holding, Mr Tony Elemelu, had asked the government to dilute the shares of the private investors in the power companies.

 

Elumelu, a major shareholder in Transcorp Power Consortium, advised the government to invest more in the privatised power firms to wrest them from current operators.

 

Subsequently, he said, the government could give the Discos to investors who have the resource to run the distribution companies.

 

Although the government acknowledged at a point that it was considering this option, no concrete action had been seen along this line.

 

In March, the National Leader of the All Progressives Congress, Bola Tinubu, called on the Federal Government to revisit the privatisation of the sector.

 

He accused the People’s Democratic Party administration of sharing out the power assets to friends and cronies without very deep and thoughtful research and evaluation.

 

Acting on behalf of the Federal Government, the BPE had in its power sector reform programme overseen the sale of 15 power companies — 10 distribution companies and five generation companies — in 2013.

 

While $1.26bn was realised from the sale of the 10 distribution companies, $1.06bn was realised from the sale of the five generation companies.

 

The successful opening of financial bids for 15 successor companies towards the end of 2012 opened the gates for the financial inflows into the country in terms of privatisation proceeds.

 

For Abuja Distribution Company, Kann Consortium emerged as the preferred bidder; for Benin Disco, Vigeo Power Consortium and for Eko Disco, West Power and Gas.

 

For Enugu Disco, Interstate Electrics Limited emerged while for Ibadan Disco, Integrated Energy Distribution and Marketing Limited had emerged.

 

EDC/KEPCO Consortium emerged the preferred bidder for Ikeja Disco; Aura Energy Limited for Jos Disco; Sahelian Power Limited for Kano Disco; 4Power Consortium for Port Harcourt Disco; while Integrated Energy Distribution and Marketing Limited emerged for Yola Disco.

 

For the power generation companies, North-South Power Limited emerged for Shiroro Hydro Power Plc; Mainstream Energy Solutions emerged for Kainji Hydro Power Plc.

 

CMEC/EURAFRIC Energy Limited emerged for Sapele Power Plc; Amperion Power Distribution Limited emerged for Geregu Power Plc; while the Transcorp Consortium emerged for Ughelli Power Plc:

 

Two consortia also later emerged preferred bidders for the last of the two successor electricity companies from the Power Holding Company of Nigeria — Afam Power Plc and Kaduna Electricity Distribution Company.

 

With a bid of $260.05m, Taleveras beat TES Power to emerge the preferred bidder for Afam Power Plc, the last of the generating companies carved out from the defunct PHCN.

 

Similarly, Northwest Power Limited emerged the preferred bidder for Kaduna Electricity Distribution Company, the only remaining of the 11 distribution companies carved out from PHCN.

 

However, the sale of Afam to Televeras later felled apart.


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UK Pledges €1Bn to Fight against Malaria in Nigeria

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The UK has pledged £1 billion to Nigeria’s fight against malaria and other diseases from 2024 to 2026.

UK Pledges €1Bn to Fight against Malaria in Nigeria

Ebere Anyachukwu, health adviser at the British High Commission, announced this on World Malaria Day in an interview with NAN.

This contribution supplements existing funds from other donors and will primarily support the procurement of insecticides, treated bed nets, malaria diagnostics, and chemoprevention efforts.

“There are some states in Nigeria where malaria is seasonal. Those are states where chemoprevention is used to prevent children from coming down with malaria,“ he said.

“In those states, malaria spreads in a few months within a year, and during that period, there is a high level of malaria transmission in children, resulting in lots of deaths.”

The health adviser said children in such states are usually given malaria drugs, whether or not they have the infection.

He said the UK is a big contributor to the global fund, currently supporting about 13 states in Nigeria.

He listed the states to include Adamawa, Delta, Gombe, Jigawa, Kaduna, Kano, Katsina, Kwara, Niger, Ogun, Osun, Yobe and Taraba.

“With the global funding support, there has been a significant reduction of malaria-related deaths in children in Nigeria,“ Anyachukwu said.


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60 Hearty Cheers to Chioma Ekeh, Africa’s Leading Unusual Female Tech

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The story has often been told in tech circles of how a relatively unknown Nigerian female student became a sensation of sorts among the international student population back in the early 80s in India owing to the unusual course of study she was undertaking.

60 Hearty Cheers to Chioma Ekeh, Africa’s Leading Unusual Female Tech

Chioma Ekeh

Electing to study Mathematics at Bachelor’s degree level – a course that required not only battling differential equations, calculus, advanced algebra, and so on, but also pitting one’s wits against that of wizened professors – is not a task for the faint-hearted. But that was the path that this unusual lady took at Punjab University, located in the culturally rich and aesthetically pleasing city of Chandigarh, India.

It was a decision that would lead Chioma Ekeh (nee Emelonye) along the path of meeting the love of her life, a certain Leo Stan Ekeh and returning to Nigeria with him to play a leading role in shaping the course of technology distribution in Africa.

Undoubtedly, unusual may also be a word that defines Chioma and Leo Stan Ekeh’s remarkable journey together. A power couple and exemplary partners who have worked together for over 30 years building a successful technology empire is a rarity, one that is not often seen.

That sojourn to India and her subsequent career trajectory laid the groundwork for the impressive reputation Chioma Ekeh has built in the highly competitive technology space. Business associates and representatives of global brands never fail to cite her intellect and brainpower.

Job seekers who cross her path during interviews often recall being asked to solve a simple arithmetic problem. For those who eventually become employees, there is never-ending adulation.

Her husband, Leo Stan Ekeh, describes her as the integral analytics, the backbone behind the brilliant success of the Zinox Group where she has continued to support all the businesses across the board.

Such is the cerebral aptitude of this unusual woman that she is reported to have taken the stage once at a company-wide business review to present a financial report punctuated by humongous accurate numbers, figures and percentages, all from memory and without recourse to any notes, a device or an actual presentation document.

Born on April 25, 1964, the story of the impressive diffusion, accessibility, useability and affordability of cutting-edge technology devices and solutions in Nigeria and indeed, sub-Saharan Africa will be grossly incomplete without a detailed citation on Chioma Ekeh and the leadership role she has played – one she has continued to play as a silent innovator and disruptor–alongside her legendary spouse.

A Fellow of the Chartered Institute of Certified Accountants (FCCA, UK), Mrs. Chioma Ekeh is the brains behind TD Africa, a regional technology distribution powerhouse headquartered in Nigeria and with branches across Africa and in four other continents.

A company she led from start-up stage, TD Africa with Chioma Ekeh as CEO, pioneered ICT distribution in Sub-Saharan Africa and has remained the industry leader by market share in the region and the biggest provider of credit to resellers.

Founded in 1999, TD Africa is Africa’s leading distributor of technology and lifestyle products, boasting an unmatched and growing network of partnership with global brands like HP, Microsoft, Apple, Starlink, IBM, Dell Technologies, Ring (by Amazon), Cisco, Lenovo, APC by Schneider Electric, Samsung, Bosch, Phillips, Logitech, Vivo, among several others. Under Chioma’s exemplary leadership, the company has achieved numerous milestones, earned a long list of local and international awards/accolades and ensured Nigeria and indeed Africa is reckoned with at the global table of technology conversations and discussion-making.

However, this remarkable story may have turned out differently, had Chioma not returned to Nigeria under the guidance of her husband.

Armed with a formidable Mathematics degree after completing her studies in India, Chioma had the world at her feet and was the toast of leading companies the world over.

Moving to the United Kingdom at the invitation of her husband, Chioma joined the exalted league of Chartered Accountants and thereafter, bagged an MBA at the reputable Heriot Watts University.In 1987, she joined Sterling Deveraux as an Investment Analyst, engaging in researchand analyzing assets, such as stocks, bonds, currenciesand commodities.

Her acumen and exceptional skills were growing in demand and before long, she left Sterling Deveraux, joining the London Borough of Lewisham as an accountant in 1988.

Between 1988 and 1991, Chioma’s sterling work saw her rise swiftly through the ranks at the London Borough of Lewisham, moving from Accountant to Senior Auditor and then to Financial Auditor.

Certainly, Chioma Ekeh had a clear path to becoming CFO and possibly CEO at the London Borough of Lewisham or even going on immediately to taking up other elevated roles at other organizations. But the love of motherland and the call of her husband – Leo Stan Ekeh – to return home to Nigeria with him and build a technology legacy for Nigeria and Africa proved too strong.

Back home, Chioma Ekeh’s initial area of responsibility was with Task Systems Ltd., the first of many companies in the Zinox Group set up by Leo Stan Ekeh.

She took up the position of Financial Controller and spent six achievement-filled years at Task before driving the vision of technology distribution birthed by her husband in launching TD Africa where she became the company’s pioneer CEO.

A quiet, unassuming tech icon, Chioma Ekeh has acquired a well-deserved status as unarguably one of Nigeria’s top three leading Women-in-Tech, a female technology business leader with extensive years of proven capacity in building high-performing teams and transforming businesses beyond stakeholders’ expectations.

In partnership with her husband, Chioma Ekeh has played immense roles in growing and nurturing partner businesses, launching several thriving new businesses and successfully closing some of the biggest acquisitions in the technology space in Nigeria.

The Tech Experience Centre – Africa’s first technology experience centre – located at Yudala Heights, a sprawling edifice in the heart of Victoria Island – is another project that has Chioma Ekeh’s indelible signature on it.

The launch of the Tech Experience Centre in October 2020 received high praise from the Nigerian government and representatives of global Original Equipment Manufacturers (OEMs).

Under her guidance, Celebrating You, an annual showpiece celebratory event hosted by TD Africa has become unarguably the biggest year-end event in the Nigerian technology industry for over a decade.

Also, she has spearheaded several CSR projects, including The Herwakening – an empowerment programme for female entrepreneurs– and Girls in ICT – a project targeted at encouraging young girls to take up STEM (Science, Technology, Engineering, Mathematics) disciplines and considering careers in technology.

As she turns 60, Chioma Ekeh deserves rarefied mention and unmitigated encomiums. An amazon, this unusual female tech icon who has shattered several glass ceilings, knows no fatigue and has continued to innovate, effortlessly leading from the front.

 

 


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Academic Technologists Propose N350,000 Minimum Wage

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National Association of Academic Technologists (NAAT), has proposed N350,000 as the new minimum wage for Technologists in the tertiary institutions.

Academic Technologists Propose N350,000 Minimum Wage

Comrade Ibeji Nwokoma, national pesident of NAAT, stated this at 5th National Delegate Conference in University of Abuja.

Nwokoma, said the proposal was based on the present economic situation in the country occasioned by the removal of fuel subsidy, high inflationary rate and the attendant hardship.

Nwokoma maintained that technology rule the world and advanced development and shaping the landscape of education in developed countries.

Prof. Tahir Mamman, minister of Education, said the federal government will soon introduce the policy that will make skill acquisition compulsory for primary and secondary schools.

The minister said global space is driven by technology which the advanced world is using to solve problems and gaining grounds.

The Union protect, defend, and promote the rights and well being and interests of all members and to advance the cause of members, employed in Nigerian Tertiary Institutions Universities, Polytechnics, and Colleges of Education.

The theme of the conference is, “Technology, a recipe for national development and socioeconomic growth in the 21st century: the Nigeria quest for a better tomorrow.”

 

 


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