21102019 - BORDER CLOSURE:‘How neighbouring countries worked against Nigeria’

Vanguard, MONDAY, OCTOBER 21, 2019 — 41
‘How neighbouring
countries worked
against Nigeria’
Continues from page 5
as loans to the electricity
distribution companies,
DISCOs.
She stated: “We had very
productive meetings with
the World Bank group, and
the country’s team on the
power sector in Nigeria.
The discussion was centred
around the power sector
recovery program wherein
we received an update on
the outstanding issues
covering sustainable fiscal
support, policy as well as
regulatory environment.
“We also discussed
extensively on the need for
the sector to be more
operationally efficient, and
also the infrastructure
investment that would be
required to ensure the
power sector is restored to
full productivity in a
manner that is sustainable.
“We identified the
imperative of solving two
critical problems. One,
which is operational
efficiency and two,
revamping associated
infrastructure in the power
sector to ensure that the
overall success of the
intervention in the power
sector are achieved
“We made two sets of
requests to the bank. The
first is technical assistance
from the Bank to
implementing agencies,
especially the Nigeria
Electricity Regulatory
Commission, NERC, on
the review of the
performance improvement
plans of the distribution
networks and, two, we
asked for technical
assistance on business
continuity regulation as
well as to the Ministry of
Finance in the assessment
of contingent liabilities in
the power sector and
options for dealing with
them.
“Most importantly, we put
a request for financing of
the sector at the range of
$1.5 billion to $4 billion. At
the end of the day, it is like
we would be looking at the
funding size of $3 billion
that will be provided in four
tranches of $750 million
each.
“Our plan is that the team
will be able to go to the
World Bank for the
approval of the first tranche
in April 2020.”
‘How the $3bn’ll be used’
Speaking further on
utilisation of the loan,
Ahmed said: “The $3
billion that we are trying to
raise from the World Bank
is for financing the power
sector. This financing will
include right now, the gap
between what is provided
for in the current tariff and
the cost of the businesses
themselves because, there
is a tariff shortfall; but it
would also enhance our
ability to pay the previous
obligations that have
crystallised that we have
not yet been able to pay.
“Some portion of it will be
for the transmission
network and if we are able
to expand the facility to $4
billion, the additional $1
billion is for the distribution
network. It will help us to
exit the subsidy that is now
inherent in the power
sector.
‘’It is supposed to reform
the sector, to restore the
distribution business side
of the sector, especially on
a stronger footing so that
they are freed up enough
to go out and raise
financing to invest in
expanding the distribution
network.”
...UK supports Jollof
Bonds issuance
Speaking on the support
of the United Kingdom for
the federal government
efforts to raise additional
foreign loans through
Jollof Bonds, the Minister
said: “We held a number of
bilateral meetings. One of
the bilateral meetings was
with the United Kingdom
Minister of State for
International Development.
We also participated in the
United Kingdom
investment summit to
explore further areas of
corporation.
“I am happy to announce
the willingness of the UK
authorities to support our
infrastructure financing
through the possible
issuance of Jollof Bonds.
Already, a working
committee is being set up
to interface with Nigeria on
this possible Naira
denominated bond.
“The CBN will be leading
in this effort, while we will
also explore all options in
this regard at the next UK
investment summit that
will be holding in January
2020.
“We met with the
representative of the Island
of New Jersey, we explored
areas of mutual corporation,
even the possibility of
signing an agreement on
the avoidance of double
taxation as well as asset
repatriation.
“The Jollof Bond (some
countries call their own
sala bonds, essentially
these are bonds that are
issued offshore but
denominated in the local
currency and the
importance of such a bond
is that it protects the
country, the issuer from
exchange rate exposure. We
are contemplating such a
bond.
“There have been
proposals made to us not
just by the UK government
but also by Deutsche Bank
and today also by the World
Bank to look at that as
another instrument to raise
financing for the national
budget.
“In the past, we have
issued Eurobond which
had done well but we are
considering this option
because it could be cheap
and even if it is not, it will
be more cost effective
because we are protected
from exchange rate
differential risk.”
FG heading for clash
with GENCOs, DISCOs
In a related
development, the Federal
Government, lawmakers,
Electricity Generating
Companies, GENCOs, and
Electricity Distribution
Companies, DISCOs,
appear to be heading for
collision as the House of
Representatives moves to
implement its plan in the
power sector this year.
Specifically, the House
has vowed to push the
Federal government to
reprivatise some
“ineffective” power
generating, GENCos, and
distributing companies,
DISCOs, in the country.
The House’ plan to move
against the management of
the privatised power
companies, is contained on
page 32 of the “Legislative
Agenda of the 9th House
of Representatives, Federal
Republic of Nigeria 2019-
2023”, made available to
Vanguard.
Under the Power Sector
section of the seventeenpoint
Agenda, subtitled
“Legislative intervention”,
the House said it would
“enable the federal
government to actively
exercise control over
privatized, yet inefficient
power companies and
encourage and assist
capable market players
and investors, take over
ineffective ones”.
The lawmakers also want
power companies to
AS the closure of the
Seme border entered
its 86th day today, the
development is beginning
to breed petty thieves and
other criminal acts within
the Badagry-Seme axis.
Stakeholders who spoke
to Vanguard over the
weekend said that there
has been an upsurge in the
rate of stealing and
burglary, shops are broken
into and goods carted
away.
A visit to the border by
Vanguard showed a once
boisterous town now
looking like a graveyard.
Seme border town before
now, is a town that never
sleeps because of the high
level of activities at any
point in time of the day.
Apart from the
presence of some relevant
agencies of government
like the Nigerian
Immigration Ssrvice, NIS,
the Nigeria Customs
Service and others, the
border is calm and devoid
of its characteristics of an
international passage into
and out of Nigeria.
Speaking on the
development Mr. Tony
Nweze, who run an
electronic and telephone
accessory shop, said that
distribute electricity directly
to consumers, or where
they must send to the grid,
“there must be guaranteed
payment for power
supplies from the federal
government”.
It stated: “This House
will pass a legislation that
will support full
commercialisation of the
industry to attract new
capital and advanced
technology.”
The House document also
showed it was set to
encourage renewable
energy as an alternative
through legislation.
The document added:
“The House will make laws
that would expand the
energy source mix for
power generation and
mandate significant
government investment in
renewable energy sources
and infrastructure.
“The House will revisit all
efforts and commitment to
renewable energy, with the
intent to develop a viable
alternative distribution to
the national grid. Nigeria
potential capacity in
renewable energy will be
expanded and utilized,
especially solar,
geothermal, and wind that
is in abundance in various
parts of our great country.”
The House regretted that
some renewable energy
companies were yet to be
cleared because of
bureaucratic red tape.
“Currently, only a handful
of licenses exist in the
country and regulatory
bottlenecks are hampering
take off,” it lamented.
The lawmakers also
warned that “If we are to
meet the set target, there
would be a need to review
existing legislation in order
to attract more players into
the green energy industry.”
Investigation by
Vanguard showed that the
Border closure now breeding criminality
within Seme—Stakeholders
By Godwin Oritse
Managing Director, Emotan Global Ventures, Josephine Aburime-Shine (L);
Gov. Abdullahi Sule of Nasarawa State (3rd, R); Minister of Mines and Steel
Development, Mr Olamilekan Adegbite (4th,R); Minister of State for Mines and
Steel Development, Dr Uchechukwu Ogah (2nd, R); and other participants during
an exhibition at the 4th Annual Nigeria Mining Week in Abuja. Photo: NAN.
besides the low sales
recorded by traders and
other businesses, the issue
of theft and breaking into
shops has further
compounded the
frustrations people are
going through as a result
of the closure of the
border.
Nweze also said that
before the border was
closed, he could sell up to
ten items in one day
adding that he can barely
sell three now.
He said: “Since the
border was shut, there has
been an increase in crime,
sometimes they break into
peoples’ shops, sometimes
they steal peoples phone.
“A woman’s phone was
stolen two hours before you
came there is hunger in the
land and these criminals
are trying to survive.”
Similarly, a licensed
Customs Chief Chinedu
Jonathan Ushi, said that the
frustrations occasioned by
the closure of the border
have reached an
unbearable limit lamenting
that businesses have been
lost to the closure.
Ushi also said that even
the animals around the
Seme border town can also
feel the pinch of the
development because some
of them are beginning to
lose weight.
He explained that the
border closure affects
everybody both local and
international traders.
Ushi said: “Everybody
here is affected by the
closure of the border, goats
and dogs and even know
that all is not well within the
border area. It is not only
human beings that are
affected.
“Today makes it two and
a half months that the
border has been closed,
masses are crying. This is
where the transaction takes
place, look at those trucks,
they have been here in the
last ten weeks.
“This one is carrying dry
pepper, the other one is
also carrying pepper. One
of the trucks carrying
Onions was sold as auction
because the Onions got
spoilt on the truck due to
the closure.
“Billions of Naira have
been lost to the closure, we
appeal to government to
help us, see what can be
done to re-open the
border.”
Asked what will happen
if the closure continues for
another two months, he
said that many people will
die and more armed
robbers will emerge.
“Many people will die
House of Representatives
has also summoned
stakeholders, including the
DISCOs, to appear before
it on Tuesday, October 21,
2019.
Executive Director,
Research and Advocacy of
Association of Electricity
Distributor, ANED, Mr.
Sunday Oduntan, who
confirmed the development
in a telephone interview
with Vanguard yesterday,
said: “I don’t know about
withdrawal of licences. I
know that NERC issued an
order to eight DISCOs,
asking them to explain
within six weeks why their
licences should not be
cancelled for their low
remittance level.
‘’The House of
Representatives has
invited all parties to the
national Assembly for
Tuesday morning to
discuss the way out.”
and the situation will
create a lot of robbers, as
more people will become
hungry.
Even for the two and half
months that the border has
been shut, a lot of families
are crying, people are
frustrated and people have
relocated and a lot of
people are begging to
survive.” He stated
A food vendor, Madam
Moji Oke who spoke to our
correspondent in ‘Yoruba’
Language said that before
the border was shut, she
cooks a big cooler of rice
and sell to visitors and
others that come to
roadside shop to eat.
Oke said she hardly can
cook and sell only four
‘Derica’ cups of rice in one
day.
She said business is very
bad adding that since the
border was closed she
stays out up until 1 a.m.
and sometimes 2 a.m. to sell
a small quantity of cooked
food.
An Okada rider,
Mohammed Lookmon said
that there are motor bikes
lining up waiting for
passengers that are not
coming.
Another Okada rider,
Bello Mohammed told
Vanguard that some of them
have a gentleman’s
agreement with officials of
NIS get travelers across the
border for fee.