By Gbenro Adesina
As Nigerians brace themselves up for the increase in electricity tariff in April 2020, most of them are unhappy with the services being rendered by the electricity service providers, despite their expectation of having adequate and reliable power supply. Though, daily, they complain, protest, wail, the government does not seem to hear their voices. The Nigerian Electricity Regulatory Commission, NERC, which is supposed to whip them into line, appears not to be doing much in protecting electricity customers in the hands of the country’s Distribution Companies, DISCOs.
NERC is empowered by the Electric Power Sector Reform, EPSR, Act, 2005, to ensure an efficiently managed electricity supply industry that meets the yearnings of Nigerians for stable, adequate and safe electricity supply. Item 15 of the responsibility of the commission, under the Consumer Rights and Obligations section states, “It is not the responsibility of electricity customer or community to buy, replace or repair electricity transformers, poles and related equipment used in the supply of electricity”. But this is not the experience of customers of Ibadan Electricity Distribution Company, IBEDC, one of the DISCOs, under the control of NERC, which investigations revealed made over N5b profit for the year 2019. According to USAID, as at October 2019, IBEDC which covers the largest franchise area in Nigeria, basically, Oyo, Ogun, Osun and Kwara states and parts of Niger, Ekiti and Kogi States serves over 1.7 million customers. Stated to be the owners of IBEDC are some powerful Nigerians including the former Military Head of State, General Abdulsalam Abubakah, Captain Idahosa Okunbor, Tunde Ayeni, Olusola Ayandele, Dan Kunle and Garth Dooley.
On a Whatsapp group, Friends of TheNEWS, Habib Aruna summarizes the agonies of the DISCOs’ customers thus: “Customers buy poles, cable and meters. Customers contribute money to buy or replace the community transformer. As soon as these are done, these items automatically become their property. Then the fraudster electricity distribution companies will, without taking the meter reading, send outrageous estimated bills to you for power never consumed. And the customers dare raise a question against their barefaced robbery; they will come and remove the cable bought by the customers with their money as their property. Then the customers will be charged what they call re-connection fee to get their cable fixed back. And customers will have to bribe their personnel to replace melted fuses or customers will remain perpetually in darkness and still pay the bill at the end of the month. The most heinous part of their corporate crime against the people is the revenue target they set for their personnel as to how much they intend to rob Nigerians every month”. This is the pain the customers of IBEDC shared with the magazine.
Many of IBEDC’s customers who spoke to the magazine in Ibadan, where the head office of the company is located, lamented that they are being made to purchase electricity equipment and infrastructure, install transformers, buy and erect electricity poles, change poles, buy cable/wire and other accessories as well as being responsible for the maintenance and repair of electricity infrastructure. It is alleged that the staff of the company extort in the most incredible manners just like the biblical tax collectors, to the extent that the customers have become vulnerable preys of both the company and the staff. There is virtually no community in Ibadan and Oyo State in general that the house owners and tenants do not tax themselves to buying and maintaining electricity infrastructure. Those who cannot afford electricity equipment stay in darkness, in most cases, for years.
Among those, who shared their experiences with the magazine are members of different zones and estates in Akobo Area of Ibadan. One of such zones is Elewuro-Akobo along Ojurin-Akobo-Olorunda-Aba under Lagelu Local Government. There are over 100 estates in this area and some of these estates are grouped under different zones. Among the zones is Ifedapo with Central Working Committees, CWC, for easy administration. Though, not all estates are members of the CWC catchment, which is equally noted for nefarious activities of forceful extortion of the landlords, landladies and tenants, as well as wielding crude powers, which is absolutely not in consonance with the nation’s constitution. In Ifedapo, for instance, only one estate-Awotunde is stated to have a 300 KVA transformer from IBEDC, while others bought their transformers. All the transformers cited in the zone were said to have been bought through community efforts. They also shoulder the cost for installation, which normally includes about N150, 000 bribe, tagged ‘PR’ at the energisation level.
One of the estates, Paradise Avenue narrated its ordeal to the magazine. One of the community’s leaders, Mr Adekunle Najimudeen said, “Because of some challenges we are facing from CWC, we decided to buy our transformer. Because we cannot buy it alone, we had to approach a bigger and more formidable estate, Opelope Olorun to join hands in the purchase of the transformer. Members of the two communities contributed money and eventually bought a 500KVA transformer N3.2m. By the time we added transport fare, the transformer cost N3.4m. After the purchase, we realised that we did not have money to install it so, we wrote a letter of assistance to IBEDC to supply us necessary materials that we needed to install the transformer. We wrote the letter on July 14 and as I speak with you, there is no official reply. We made efforts to speak with them but we were later told that they could not help and that we had to buy the materials and install the transformers by ourselves, after which we will transfer ownership to them. That is the reason we have not been able to install the transformer”.
Also, one of the transformers jointly bought by landlords and landladies under CWC got spoilt. After almost a year, the concerned estates under CWC had to contribute money to buy another 500KVA transformer and they shouldered its installation and energisation.
Furthermore, residents of Araba-Oluwo Area of Ibadan, along Ibadan Ile-Ife Expressway have their own pathetic tales of woes to tell about IBEDC. The four zones covered in the area are Okewusi 1 and 2, Ifedapo and Ore-Ofe Estates. After several years of appeal to IBEDC to supply transformers to them to no avail, they sought help elsewhere. While the community contributed money to buy two transformers, they got two donated by MTN Telecommunication and the MDGs Office. The four transformers are 300KVA each.
According to the residents of Okewusi 1 and 2, they did not have electricity for over four years as a result of lack of transformers and other electricity infrastructure, adding that all attempts to get transformers from IBEDC proved abortive. Eventually, all the house owners and tenants contributed money to buy transformers. Giving details of how four zones of the community got linked up to the national grid, a land agent in the area, Mr. Amidu Ajibade stated, “I am in Okewusi 2. We really suffered and we were in darkness for years. When we could not afford transformer, we had to approach Onipepeye Zone to give us a leg from their transformer. After holding several meetings, they opted to sell a leg for us and we bought one leg at the cost of N800, 000. I don’t blame them for collecting money from us because they actually contributed money to buy the transformer. It is morally illogical to ask them to give us one leg just like that. That was how we initially solved the problem. We were both managing the transformer. If it gets fault, we will contribute money and repair it”.
“We continued to make frantic efforts to get our own transformer. We approached and begged politicians to help us, but they did not answer us. The two zones had to tax themselves and when they realised enough money, they bought 300KVA each for the two zones. At this, we went to IBEDC to seek their assistance for installation but the company still declined our request. We were so poor and we did not have money to install the transformers. Later, with the assistance of some people, we got assistance from World Bank. They awarded N5m each for the installation of the two transformers. Okewusi 1 has got its own N5m and used it to install the transformer. That is why there is light there.N2.5m only has so far been released to Okewusi 2. They have expended it on the project and awaiting the remaining N2.5m from the World Bank to complete the installation”, he added.
Ogo-Oluwa, another zone with similar experience just had light about two years ago. For several years, they were contributing to buy a transformer, to no avail. When they realised that they were so poor to raise enough money to buy transformer, a landlord, who has a link with MTN Telecommunication Nigeria Limited sought the assistance from the company. MTN responded by donating a 300KVA transformer, which they personally funded the installation. The only challenge the zone has is that the capacity of the transformer is low for five estates that are hooked on it. A resident, who identified himself as John Ibitoye pointed out, “Five estates are using the transformer. The estates include Unity, Ifesowapo and Ogo-Oluwa. I cannot remember the names of the remaining two. We always have low voltage, power surge and fuse cut. Frequently, we have one thing or the other to repair. Without another transformer, we cannot enjoy electricity in our estate”.
Also assisted by World Bank in the area for installation was Ifedapo Zone, which bought 300 KVA at N1.8m. Ore-Ofe Araba Zone was not that lucky to get any form of assistance but it was able to buy a 300KVA transformer and installed it. Another zone in the community was lucky to have Senator Monsurat Sumonu facilitating a 300 KVA transformer from the MDGs, but they contributed money to install it and it is already working.
The problem of provision of electricity infrastructure is not peculiar to Ibadan or Oyo State alone, it cuts across the jurisdiction of IBEDC. A resident of Ayetoro Yewa in Yewa North Local Government, Mr Tunji Adebowale intimated the magazine that transformers are being bought by the communities and at times, politicians donate and install for people. He said, “As we are speaking, we do not have light for the past four months because our transformer is bad beyond repair and needs replacement. After the community leaders have contacted IBEDC for replacement and it is not forthcoming, we have to solicit for assistance from Hon Olaifa, representing us at Federal House of Representatives, Abuja. He has promised to buy the transformer for us but I do not know whether he will install it for us or we will contribute money for the installation. The transformer is yet to come. At our last meeting, we agreed that each house should be levied some amount of money and whatever we can raise, we will go and tell the honourable. We are also considering meeting other politicians that can help us because it seems that Hon. Olaifa cannot shoulder the purchase alone. If he can, by now, he should have bought it for us. That is the situation we have found ourselves”.
Also, a consumer living around Oke Ore, very close to Igbesa in Ogun State, who spoke to the magazine anonymously, declared that virtually all, if not all the electricity infrastructure including the purchase of transformers around the area are community financed projects. He said, “Around here, it is either the communities contribute money to fund the electricity projects in terms of buying transformers, poles or other accessories or multinational companies donate towards this worthy cause. For example, Ladi Adebutu used to donate transformers to communities in Ogun State. Multinational companies have donated transformers to Oke Ore Area, Olorunda-Owode Eleyele, Alaraba and Kajola. Even the one being used at Adeyeye Street in Alaraba is alien to IBEDC. My take on this scenario is that first, the areas being covered by IBEDC is too large. The government should prune it down. Secondly, there is money in electricity. Government should take it over and run it. If government could do this, government will generate money and have more money to run the country”.
Individuals have equally condemned the activities of IBEDC for exploitation and different kind of sharp practices. One of such is Dr Nweya O. Gerald of the Department of Linguistics, University of Ibadan. He narrated to the magazine how IBEDC marketer, Babajide Olabode Adewunmi collected outrageous price for the supply of metres in the area. Gerald contacted Adewunmi, a former marketer at Apete Area of Ibadan on the processes of acquiring metre and Adewunmi volunteered to help him out. He said a prepaid metre as at that time was N45, 000, the money Gerald transferred to the marketer. “I transferred the money to his GTB account. For over a year he didn’t bring the metre. Later, he came back to say that I needed to add N15, 000 because IBEDC has introduced another type of metre. The new one is CAM. I also transferred the money. On October 6, 2017, April 9, 2018 and May 5, 2018, I transferred N5, 000, N7, 500 and N10, 000 respectively. By the time he brought the metre, I notice it did not have credit and I asked him why? He didn’t give me any reasonable reason. He only said that I should not be bothered about that. Ignorantly, I gave him N4, 000 to buy credit for me and load it. That was how I resolved the problem. But later, I found out that the credit on the metre is not exhausted and I was surprised. I called him and told him. He told me that the metre doesn’t need reloading. I was surprised and he told me not to be bothered about it too. It was at that point that I knew that the N4, 000 he collected from me to buy credit was not used for the purpose I gave him the money for. At this point, there is nothing I can I do. I continue to use the metre like that. Recently, IBEDC came around to disconnect Apete light because they claimed that we bought wrong metres. We never set out to buy wrong metres. It was their marketer that sold wrong metres to us and we must not be punished for the crime we didn’t commit”.
The magazine found out that IBEDC mislead the government as regards the provision of electricity infrastructure as they publish false projects in the media, which are at variance with what are in the communities. As a matter of fact, IBEDC with other DISCOs formed an association known as Association of Electricity Distributors, ANED, as a media campaign apparatus to counter NERC/FG and perceived negative public opinions against their interest. On daily basis, the deluge of complaints lodged at the company by the customers and in the media clearly shows the insincerity of the investors. It was gathered that the technical department in collaboration with the Chief Operating Officer cook up the books to reflect false infrastructural upgrade projects, highly inflated to show that the company is working, whereas the reverse is the case. Transformers and injection substations are painted and ‘polished for deception and there are countless over- invoicing and bankers’ expertise book-cooking and inflation going on in the last six years. The magazine equally found out that the failure of the investors to serve the customers better is as a result of mismanagement of intervention funds from the Federal Government.
Corroborating this assertion, on a Channels TV Programme titled, “Capitalisation of Discos: Bridging the Gap in the Power Supply Chain”, Rector, Kaduna Polytechnic, Professor Idris Bugaje lamented the ways DISCOs handle their accounts. He said, “DISCOs do not even allow anybody to look at their books of account because of the undercover things they are doing and they are generating billions of naira”. He spoke further, “Government has not given proper attention to DISCOs. How can government have 40 per cent share and you have only one board member among seven on the DISCOs boards? That is very wrong. There should be four members of government representation on the boards. How can the private sector produce both Chairman and Managing Director? That also is very wrong”.
Attempts to seek reactions from IBEDC authority proved abortive as the Head, Branding and Corporate Communication, Mrs Angela Olanrewaju did not pick her calls. However, Engineer AbdulRasaq Jimoh of Molete Branch of IBEDC on Tuesday 10, 2019 admitted on a Broadcasting Corporation of Oyo State, BCOS, live broadcast titled, “Imole De” that customers of IBEDC buy transformers and other electricity infrastructure emphatically responded to a question, “Yes, customers buy transformers, electricity poles, wire and other accessories”. He equally admitted that it is not the responsibility of the customers to buy electricity infrastructure, stressing that in most cases, people are not patient for the company to provide these facilities.
Commenting on the forceful acquisition of the transformers from the community, he noted that as soon as the transformer is ready for energisation, the company makes the buyers to relinquish the ownership to IBEDC. Though, unable to justify the morality of taking possession of transformers and other electricity infrastructure bought by the community, he stated, “We make them to sign this undertaking because some customers will now say that they will not pay electricity bill for some years because they bought the transformers as well as provided other facilities, which we cannot accept. They will say that they should be allowed to use electricity free commensurate to the amount they bought the transformers. To forestall this, we make them to sign undertaking to relinquish the ownership of the transformers to IBEDC”.
Reacting, an Ibadan based legal practitioner, Mr Yemi Olofin of Dare Adebayo Chamber, Iwo Road, noted that the malaise of electricity companies defrauding its customers in different ways is phenomenal, stressing that IBEDC and other DISCOs only collect money, legal and illegal, without corresponding provision of services. It is a common phenomenon in Nigeria that people buy transformers, buy poles, electric wire and common fuse that supposed to be secured at IBEDC office. What is happening in DISCOs is sophisticated corruption that has eaten deep into the fabric of the system. Corruption is instutionalised in Nigeria”, he pointed out.
Olofin, though, noted that the federal government’s intention for the privatization of PHCN was good, saying, “As a matter of fact, the intention of the Federal Government to privatise PHCN was to enable the people to enjoy what they pay for. Unfortunately, the reverse is the case and it has gone to something else. The service has not improved from where it was. It has been so erratic such that people are not even enjoying the service. Some companies in Nigeria are closing down because of electricity problem. IBEDC is performing below average”, he said.
Olofin, however, urged the government to put in place mechanism to checkmate the excesses and exploitation of DISCOs rather than revoking their licenses adding, “One will not say that the government should take DISCOs back but there could be a kind of apparatus that will monitor people that have acquired it or bought it. Actually it is not the best for government to take it over. It will go to the normal civil service stuff where accountability is zero. Government should look for a way of giving them serious supervision”. Reacting to the allegation of impatience on the part of customers for IBEDC to provide transformers and other infrastructure that will bring light to the community, Olofin said, “Patience or what did you say. Somebody, who has been in darkness for months or years, who has come to your office to inform you about what should be done immediately and you do not do and such a person now go ahead to look for money from all quarters and you still have gut to accuse such of impatience, this is a wicked accusation to me”.
Another legal practitioner and a prosecutor at Iyaganku Magistrate Court, James Oriola, advocated that the government should immediately take over all the electricity companies in the country, rhetorically asking, why will a company be allowed to rip off people of their hard earned money at this ridiculous level?
He said, “It is absolutely abnormal and illegal for people to buy transformers and electricity materials. This can only happen in Nigeria. That is not how it supposed to be according to the law of the nation. DISCOs are supposed to supply all the electricity facilities and make their money from the bills paid by the customers. The community will be the one that will buy transformer, if they want to install it, the IBEDC will say that before they can come to install, they will collect money and without collecting money, they will not come and collect it. Immediately the transformer is installed, they will start claiming that they are the owner of the transformer. They are cheating us in the most uncivilised and wicked ways. This can’t happen in a sane society. Now the government has to come to our aid as a matter of urgency in assisting to put an end to this criminality that has become a norm in our society. The situation is beyond our capacity. Nigerians are too vulnerable and they cannot help themselves”.
Oriola narrated the ordeal of his community, “In my own community at Badeku after Egbeda, we contributed money to purchase transformer and we informed IBEDC. We wrote a letter to IBEDC that we have bought a transformer and that the company should come and install it. After a while, IBEDC replied. In the company’s reply, we were asked to come for a dialogue. On getting there, they said they did not have materials and that the community should provide money for the transformer. We went back to the community and informed them and the community people said that they could not do that. After being in darkness for six months and we didn’t know when it will end, we had to talk to ourselves and appealed to ourselves to still contribute money for the installation of the transformer. It was after we paid the money that they came to install the transformer. Despite this, they still come with crazy bills. We did not gain anything from it. We bought the transformer, we bought the materials for installation and they even collected money for coming to install it and we are paying exorbitant bills. I think they should negotiate with us on how to refund us, rather, they paid us back with exorbitant bills. After the completion of the installation, they summoned us to their office and asked us to sign some forms that we have donated it and that if we do not do that, they will not energise the transformer”.
It is not only the customers of IBEDC that have tales of woes to share. Investigations revealed that some staff are suffering and smiling. The most aggrieved set of staff are the staff inherited from PHCN that is estimated to be about 50,000 workforce with 70 percent of them languishing in abject lack, limitation, poverty and abandonment. Some of these staff tagged “Legacy Staff”, have died, with some battling with terminal illnesses and their dependents caught in the crossfire of hopelessness as a result of treatments melted to them by the buyers of PHCN.
One of these legacy staff under anonymity, who noted that the investors are making huge money which they were not making from the banking sector they came from, lamented the inhuman treatments being melted unto the inherited staff, pointing out that the company terminates employments without recourse to labour laws and practices. “Promotions were rapidly given to proxies, cronies, families, friends under the guise of competence and false revenue claims. Example of such is the lie called Assets and Customer Enumeration, ACE, exercise that gulped N7b. The vendor, who did not get up to five percent of the sum, has been crying in silence. The two other scenarios are contracts on safety trainings and equipment, AMPAK, and Metre Asset Provider, MAP Scheme wherein the Licensees are being arm twisted in the process to part with a percentage from the cost of each metre. This is the major reason for the delay in metre procurement and installations. It is noteworthy that the subsidiary revenue collector firm – FETS belongs to the suspended chairman of IBEDC. This is a gross violation of corporate ethics that one chairman heads the two companies. A breach of corporate governance! This company collects as much as seven per cent as commission from revenue already collected by the CROs, Collection agents and other payments channels”, she added.
To resolve the problem of power in Nigeria, the government must first love the citizens genuinely and be determined to be responsible. It is immoral if the rich are empowered to still collect the little the poor have. Also, for the power sector to move forward, the federal government should either recapitalise or repossess these DISCOs for proper privatization devoid of tribal, religious and political sentiments.
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