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Nationwide Blackout Looms As GenCos Threaten Shutdown Over ₦4trn Debts

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By Cyril Ogar  and ABAH ADAH, Abuja

A nationwide blackout may be imminent as power generation companies ,GenCos, yesterday issued a warning to the Federal Government over the continued accumulation of debts now totalling over ₦4tn.

The companies announced that they are on the brink of shutting down operations due to the growing liquidity crisis in the power sector.

In a statement released under the umbrella of the Association of Power Generation Companies ,APGC, the GenCos expressed deep frustration over what they described as “inadequate payment for electricity generated and consumed on the national grid.

They described it as a major threat to the viability of their power plants.

According to the statement, which was signed by the Chairman of the Board of Trustees of the GenCos, Col. Sani Bello ,Retd., the companies are currently owed over ₦2tn for electricity generated in 2024, in addition to ₦1.9tn in legacy debts, bringing the total outstanding to approximately ₦4 trillion.

“The Power Generation Companies “GenCos” are constrained to issue this press release to draw the attention of the federal government ,FG, and key stakeholders to the need to urgently address the issue of inadequate payment for electricity generated by them and consumed on the national grid, which is currently threatening the continued operation of their power generation plants.

“It is no more news that the power generation companies ,GenCos, have continued to bear the brunt of the liquidity crisis in the Nigerian Electric Supply Industry ,NESI. Outstanding Payments: GenCos are currently owed about ₦4tn ,₦2tn for 2024 and ₦1.9tn in legacy debts. No possible solutions, including cash payments, financial instruments, and debt swaps, are in sight.

“Notwithstanding this and other severe difficulties the GenCos have battled with since takeover in 2013, they have kept to the terms of their contractual agreements by ramping up capacity, which has been largely constrained systemically.

“Against the backdrop of the many challenges facing the power sector in Nigeria, the crises from cash liquidity are on the top burner and have reduced GenCos’ ability to continue to perform their obligations, thereby threatening to completely undermine the Electricity value chain”, the group said.

The group said despite investing significantly in ramping up generation capacity since the sector’s privatization in 2013, the absence of firm contracts, poor enforcement of power purchase agreements, and persistent non-payment of invoices have crippled their operations.

The companies also pointed out that hopes of being settled through external support mechanisms like the World Bank’s Power Sector Recovery Operation ,PSRO, have been dashed due to other market players’ failure to meet required performance targets.

“The GenCos’ expectations of being settled through external support such as the World Bank PSRO have also been dampened due to other market participants’ inability to meet their respective distribution-linked indicators ,DLIs, enshrined in the Power Sector Recovery Program ,PSRP”, they said.

They also raised alarm about the declining payment rates, noting that in 2024, the collection rate had dropped below 30 per cent, the figure they described as “alarming and unsustainable”.

“The implication of this is that GenCos only get paid a portion of their invoices, sometimes as low as 9% or 11%, based on what is left after other payments are made. This is a complete aberration and a clear departure from the existing terms of the Power Purchase Agreement ,PPA, with NBET”, the statement read.

The GenCos rejected the current ₦900bn allocation in the 2025 national budget for the power sector, describing it as “grossly inadequate” to cover both arrears and future payments.

To avert a total shutdown of power generation across the country, the GenCos issued a list of urgent demands to the Federal Government:

The GenCos warned that unless urgent and coordinated steps are taken to address the liquidity crunch, Nigeria’s electricity supply could collapse, with dire consequences for national security, economic growth, and public welfare.

“The crises from cash liquidity are on the top burner and have reduced GenCos’ ability to continue to perform their obligations, thereby threatening to completely undermine the electricity value chain”, the statement added.

Recall that Power generation companies had last month responded to an accusation levelled against them by the Transmission Company of Nigeria ,TCN, blaming the Generating Companies ,GenCos, for the load shedding and power failures experienced in the country.

“TCN can only transmit the quantum of power generated by GenCos through the national grid to distribution load centres nationwide. TCN does not generate electricity”, said the TCN.

The TCN also claimed that the cumulative power generation nationwide is low and attributed the development to several factors.

But responding to the accusation, the GenCos said the blackouts were as a result of the weak infrastructure of transmission and distribution companies.

The Executive Secretary, Association of Power Generation Companies, Joy Ogaji, insisted that the TCN should be held responsible.

She said that the GenCos have made huge investments to increase generation capacity up to 13,000 megawatts without a complementing investment by the TCN.

Ogaji said, “Since 2013 when the power sector was partially privatised till date, weak and inadequate infrastructure ,transmission and distribution, have continued to render inconsequential, a significant portion of the generation capacities recovered or added by GenCos through huge investments to increase their respective generation capacities.

“While the owners of the GenCos invested and increased generation capacity up to 13,000 megawatts across the country, no corresponding investment and improvements were made at the transmission and distribution ends.

“The result was the significant stranded capacity of GenCos, which ironically, Nigerians are in dire need of but cannot get.

“The persistence of this anomaly over these years compelled Gencos to begin to question the commercial reasonability of continued investment in recovery or expansion of generation capacity that would end up being stranded and not utilised to transmit and distribute electricity to end-users who are yearning for the same”.

Bank Recapitalisation To Build $1tn Economy —CBN

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By Yahaya Umar 

 Deputy Governor, Corporate Services, Central Bank of Nigeria ,CBN, Emem Usoro, has said the bank recapitalisation exercise being implemented by the apex bank is a critical step towards achieving Nigeria’s ambition of building a $1tn economy.

Usoro said this at the opening session of the 36th edition of the Finance Correspondents Association of Nigeria and Business Editors seminar held on Monday in Abuja.

The event had as its theme “Banking recapitalisation towards a $1tn economy”.

Earlier in 2024, the CBN announced an upward review of Nigeria’s minimum capital requirements for commercial, merchant, and non-interest banks. The minimum capital base for banks with international authorisation was increased to N500bn.

The minimum capital base for commercial banks holding national authorisation is N200bn, and for those with regional authorisation, it is N50bn. Merchant banks will also require a minimum capital requirement of N50bn, while non-interest banks holding national and regional authorisations must adhere to new minimum requirements of N20bn and N10bn, respectively.

Currently, Nigeria’s economy is valued at around $250bn. According to her, achieving the $1tn target will require not only strong banks but also careful planning, robust policy direction, dutiful implementation, and broad stakeholder commitment across all sectors.

Usoro said, “As you may know, the global financial system and architecture have assumed a new dimension even before the new administration of Donald Trump in the United States of America. Globalisation has broken the limits of financial flows, and investors have inadvertently taken full advantage of the opportunities.

“However, countries and their financial systems must be prepared and ready to utilise opportunities created by financial globalisation through appropriate policy support and actions.

“As you are aware, the Nigerian banking system has also undergone reform, including bank recapitalisation and consolidation exercises. The 2004 banking sector consolidation and recapitalisation exercise, which set the limit of ₦25bn minimum capital fees for banks, brought the banks from 89 to 25. It was a noble idea that the Central Bank of Nigeria implemented in line with the emerging developments at that time.

“As we work towards building a $1tn economy, we must consider the recapitalisation of our banks to be able to fund, finance, and power the economy and favourably compete with its peers globally.

“We should particularly pay significant attention to bank recapitalisation to ensure that our banks are strong, resilient, and stable enough to carry out financial intermediation and the much-needed financing of development projects and programmes.

“Building a $1tn economy is not an easy task. It should require careful planning, robust and clear policy direction, dutiful implementation, and a wide commitment to stakeholders that will galvanise the various sectors of the economy”.

Usoro pointed out that discussions at the seminar, which include regulatory, industry, and media perspectives, are crucial in charting the way forward.

“As we aspire to build a $1tn economy, all hands must be on deck to achieve this. This gathering is essential to bring to the fore the bank’s effort and policy direction.

“The push for the capitalisation of banks will no doubt improve the strength and health of the financial system, deepen financial intermediation, and promote healthier competition that will strengthen our payment system.

“Therefore, it is my sincere expectation that at the end of your deliberation at this seminar, participants will better appreciate the rationale and ideas behind the goal of attaining a one trillion economy and its operational mechanism”.

JAMB Warns Tertiary Institutions Against Illegal Admission

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By Chika Nwachukwu

Joint Admissions and Matriculation Board, JAMB, has warned newly-established, upgraded and adopted tertiary institutions against engaging in illegal admission, stressing that there will be no room for regularisation.

Speaking at an interactive session with principal officers of the affected institutions Monday in Abuja, JAMB’s Registrar, Professor Is-haq Oloyede emphasised that all admissions must be routed through the Central Admissions Processing System, CAPS, and strictly follow due process.

“CAPS ensures transparency, fairness and integrity in admissions. Any institution attempting to bypass this platform risks nullifying such admission,” Oloyede said.

He called for the full compliance of the over 80 new institutions recently approved by the federal government to the admission procedures.

The registrar explained that CAPS, introduced in 2017, automates and standardises the admission process, while the Integrated Brochure and Syllabus System, IBASS, launched in 2018, facilitates clear communication and programme eligibility checks.

 According to him, both platforms, now upgraded with institutional mail services, serve as JAMB’s sole official communication channels.

The JAMB boss lauded the federal government, under President Bola Tinubu, for its commitment to expand access to tertiary education, citing the approval of 22 new universities, 33 new polytechnics and monotechnics, and 12 new colleges of education across the country between late 2024 and 2025.

He noted that while CAPS and IBASS accounts had been created for these institutions, only programmes cleared by the National Universities Commission, NUC, National Board for Technical Education, NBTE, and National Commission for Colleges of Education, NCCE, would be activated.

Oloyede also outlined the proper procedures for onboarding candidates, stressing that institutions must nominate designated officers to manage CAPS and IBASS access.

“JAMB will provide full technical support, but compliance is non-negotiable. Institutions must avoid shortcuts. There is no justification for admitting students through the backdoor,” he added.

A live demonstration of the CAPS and IBASS systems followed the session to acquaint the institutions with their operational protocols.

Also speaking, Vice Chancellor of the Federal University of Applied Sciences, Kachia, Professor William Qurix said the  meeting was to acquaint heads of institutions with the workings and operations of CAPS and IBAS through which the institutions can communicate and interact with JAMB.

Qurix disclosed that some candidates had already registered for JAMB before some new universities or polytechnics were approved or established. 

According to him, such institutions would normally find it difficult to secure candidates to come to them.

“But this process has been cleared for us and we are quite enlightened. JAMB gave us assurances of prompt response to  inquiries that might come from  heads of institutions, through their CAPS or IBAS system. So definitely, this meeting has enlightened us and it will have a great impact,” he said.

Earlier, the Director of Colleges at the Ministry of Education, Dr Uche Uba noted that there are some criteria set by the National Universities Commission which which must be followed by the new institutions.

Uba urged the colleges of education upgraded to dual mode to meet  officials of the NUC to familiarise themselves with the criteria.

On his part, the Executive Secretary of NCCE, Professor Paulinus Okwelle commended JAMB for its efforts to establish a seamless admission process for tertiary institutions.

Okwelle encouraged the new colleges of education approved to run dual mode system (Degrees and National Certificate on Education) to follow the laid down processes for admission to keep them in competition.

A’Ibom Unveils Human Capital Devt Plan, Prioritises Education, Healthcare

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Akwa Ibom State government Monday unveiled the State Human Capital Development Strategy Plan, with priority attention in education and healthcare.

The plan, christened ‘ARISE Human Capital Development Strategy Plan,’ was unveiled by Vice President Kashim Shettima in Uyo.

Speaking at the event, Shettima said the policy is a declaration that the true wealth of any nation lies in its human capital development, especially education and health of the citizenry.

The vice president said human capital development plans should be rooted in the people and guided by a steady understanding of the direction of the world.

He noted that the country must pay attention to citizens’ need for immunisation, unemployment and maternal mortality to effectively promote human capital development.

Shettima urged the Akwa Ibom government to ensure effective implementation of the plan at the local government level.

The vice president commended Akwa Ibom for being the first state to domesticate the national human development plan and urged other states to follow up.

“The true wealth of any nation lies in the certainty of its human capital development, especially education, health and the productivity of its workforce.

“The ARISE human capital development strategy is a template for other states of the federation to follow. We cannot build an enduring future without a solid foundation.

“Akwa Ibom has shown core leadership. It has become the first state in the nation to localise the human capital development plan,” he said.

In his remarks, Governor Umo Eno said the human capital development plan has become imperative due to the need to address the post COVID-19 challenges that the world is facing.

“It became proper for the state government to strengthen individual and institutional capacities to rise in real time to confront future pandemics.

“Apart from the above key areas, the plan is also designed to expansively provide key human-centric projects in healthcare and education.

“We are currently investing in the construction and equipping of primary healthcare centres. We are also providing quality education at the primary and secondary levels,” he said.

Eno said the state government has plans to construct model secondary schools in the three senatorial districts.

He added that Ibom Leadership and Entrepreneurial Development Centre had trained and given start-up grants to no fewer than 4,000 people.

“Also, Dakkada Skills Acquisition Centre, recently graduated about 400 trainees in various areas of marketable and entrepreneurial skills.

“These 400 graduands were trained in ICT, mechanised agriculture, carpentry, fashion design, tourism among others,” he said.

The governor commended President Bola Tinubu for this critical initiative and commitment to national development.

“We appreciate the federal government for selecting Akwa Ibom as the first state for the launch of the programme. This has shown that the president does not play politics with development.

In a goodwill message, the Group Managing Director, Techno Oil Limited, Mrs Nkechi Obi, said no meaningful development could take place without a deliberate and actionable roadmap.

Obi said for development to take place, there must be well thought-out plans to address the critical challenges militating against human capital development.

The group managing director noted that a human capital development plan is critical to the economic buoyancy of a country such as Nigeria.

She expressed the commitment of Techno Oil towards ensuring cleaner, greener, safer and more friendly environment by producing quality cooking cylinders.

Obi said Techno Oil had distributed no fewer than 20,000 units of 6kg LPG cylinders to indigent women as part of its corporate social responsibility.

Earlier, the Chairman, Akwa Ibom State Human Capital Development Council, Dr Nathaniel Adiakpan, said the plan represents a collective resolve to empower citizens through education, innovation and creativity.
Adiakpan noted that the comprehensive framework was designed to address the unique needs of citizens and communities. (NAN)

Killings: Falana Calls For Immediate Ban On Open Grazing In Plateau, Benue

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By Uche Onyeali 

Human rights lawyer, Mr Femi Falana (SAN) has asked the Plateau and Benue State governments to immediately ban open grazing and prosecute suspects linked to violent crimes in their states.

Falana, who is the Chairman of the Alliance on Surviving Covid-19 and Beyond, ASCAB, made the call in a statement on Sunday while expressing sympathy over the incessant loss of lives in both states.

Describing the recent spate of attacks as genocidal, the senior advocate expressed disbelief that security forces had failed to defeat the ill-equipped gunmen terrorising unarmed people in Benue and Plateau States.

He recalled that during the administration of former President Muhammadu Buhari,  northern and southern governors forums agreed to outlaw open grazing across the country.

Falana said the federal government adopted ranching to curb the violent clashes between herders and farmers by releasing N6.2 billion to the Katsina State government.

“Our call on other state governments then to demand for the same amount and for the same purpose fell on deaf ears,” he said.

The human rights lawyer commended  Benue and Plateau governments for establishing state security outfits, in line with the example set by the late Rotimi Akeredolu, former governor of Ondo State. 

He, however, said there have been allegations that the security outfits in both states are underfunded.

“As a matter of urgency, the operatives of both security agencies should be well trained and  motivated to rout out the merchants of death operating in both states,” he said.

Falana said over 1,000 suspects were arrested between January and December 2024 by a combined team of the Nigeria Police Force and the  armed forces in connection with killings, kidnappings and other crimes in Plateau and Benue States.

He added that no less than 100 suspects have been arrested between January and March.

“We are, however, disturbed that most of the arrested suspects were briefly detained and released either conditionally or unconditionally.

“Hence, the killing and abduction of innocent persons have continued unabated.”

He urged the attorneys-general of Benue and Plateau States to ensure that all suspected killers are prosecuted in line with the provisions of the penal codes applicable in their states.

“It is high time that open grazing is banned by the governments of Benue and Plateau States.

“Without  further delay, the federal government should establish ranches in Benue, Plateau and other states and ban the movement of cattle in the Federal Capital Territory and all states of the federation,” he said.

Libyan Police Arrest 3 Nigerians For Drug Trafficking 

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Agency Report 

Authorities in Southern Libya have arrested three Nigerians on charges of drug trafficking.

This was announced in a statement released on Sunday by Migrant Rescue Watch, MRW, a monitoring organisation that tracks migrant-related incidents across North Africa.

The suspects were apprehended by  Samnu Police Department in the town of Samnu, located in  Murzuq District, a region notorious for smuggling and trafficking activities due to its proximity to Libya’s porous southern borders.

According to  MRW’s report, the trio were found in possession of  hashish allegedly prepared for sale. The specific amount of the narcotics seized was not disclosed and the identities of the suspects are yet to be made public.

“Samnu Police Department arrested three migrants of Nigerian nationality on charges of drug trafficking.

“The trio were found in possession of a quantity of hashish earmarked for sale. The case was referred to public prosecution,” MRW said in a social media post confirming the arrest.

The arrest forms part of intensified security operations in the region aimed at combating rising incidents of drug trafficking and illegal cross-border activities involving both local and foreign nationals.

Libya continues to serve as a major transit point for migrants, many of whom are attempting to cross into Europe through dangerous Mediterranean routes.

The country’s southern districts, including Murzuq, are also plagued by criminal networks involved in drug smuggling and human trafficking.

The suspects have been transferred to the public prosecution for further investigation and possible prosecution under Libyan law.

Army Rescues 16 Abducted Passengers In Plateau

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army

By Uche Onyeali 

Troops of 3 Division, Nigerian Army, and Operation SAFE HAVEN, OPSH,  rescued 16 passengers kidnapped along Jos-Mangu road in Plateau State.

This was disclosed in a statement by the Media Information Officer, Operation SAFE HAVEN, Major Samson  Zhakom.

According to Major Zhakom, the rescue operation began when troops conducting Operation LAFIYAN JAMA’A discovered an empty vehicle abandoned by the roadside at Mararaban Kantoma in Mangu Local Government Area at about 9pm on April 13

On sighting the scene, the troops immediately searched the nearby bushes to trace the occupants of the vehicle suspected to have been kidnapped.

“The kidnappers, on sighting the troops opened fire, but  troops overwhelmed the criminals with superior firepower forcing them to abandon the victims and flee. 

“Troops exploited the general area and rescued the 16 abducted passengers which include six children.

“Troops administered first aid to some of the rescued victims who sustained minor injuries during the incident. Thereafter, they escorted the victims to safety to continue their journey to Jos Metropolis.

“Meanwhile, troops are on the lookout for the fleeing kidnappers suspected to have sustained gunshot wounds during the encounter,” the statement said.

Jigawa Govt Urges Citizens To Drive Social, Economic Devt 

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Jigawa State government has urged the people to embrace the Citizens Engagement Forum and voice their views on its programmes to fast track sustainable social and economic development.

Commissioner for Information, Youth, Sports and Culture, Mr Sagir Musa said this during an engagement exercise Monday in Guri, headquarters of Guri Local Government Area.

Governor Umar Namadi’s administration had initiated the forum to encourage inclusive governance and ensure successful implementation of its programmes. 

The exercise, billed to be held across the 27 local government areas, would end in October.

Musa advised residents  to avail themselves of the opportunities of the engagement exercise to voice out their concerns on government’s policies and programmes.

He said the forum was designed to bring  government closer to the people and provide a platform for feedback.

The commissioner said the initiative also availed  government the opportunity to carry people along to ensure successful implementation of its policies and programmes.

Also, Senator Abdulhamid Malam Madori (APC – Jigawa South-East), commended Namadi over the execution of viable infrastructure and people oriented projects.

He noted that Namadi’s outstanding performance deserves re-election for a second term.

The senator urged politicians to rally behind the governor and support his re-election bid rather than contesting against him.

“The present governor is doing well in his first tenure so no need for anyone to think of challenging him in the 2027 election,

“Governor Namadi deserves to serve his second term come 2027 because of his outstanding performances,” Malam Madori said.

The senator promised to ensure effective representation to provide the dividends of democracy to his constituents. (NAN)

Court Remands 4 For  Oil Bunkering, Others In Edo

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court binance

Benin High Court on Monday remanded four persons in police custody over alleged illegal oil bunkering.

The presiding judge, Justice Williams Azeigbemhin said the matter should be referred to the Federal High Court. 

Azeigbemhin said the Federal High Court is in an appropriate position to entertain the matter.

The defendants, whose pleas were not taken, are Ayemoba John, Orji Kalu, Isaac Ikpedide and Haruna Safi.

The prosecutor, Polycap Odion, told the court that they were arraigned for conspiracy, illegal crude bunkering, stealing, illegal possession of firearms and tampering with oil pipelines.

He said the defendants and others at large on March 22 at Epeko Community Forest in Etsako Central Local Government, allegedly tampered with an oil pipeline.

He alleged that the defendants unlawfully carried out illegal crude oil bunkering activities from NNPCL’s pipeline. 

He said the offence contravened Sections 412 (1) of the Criminal Law of Edo State LaW, 2022.

He also said the offence contravened Section 7 (a) (b) of the Miscellaneous Offences Act, Cap M17, Laws of the Federation of Nigeria, 2004.

The prosecutor urged the court to remand the defendants in the correctional centre pending the advice of the Director of Public Prosecution on the matter.

The judge granted the plea of the prosecutor. (NAN)

World Bank Commends Sokoto L-PRES Office For Financial Mgt

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From Ibrahim Goronyo, Sokoto 

World Bank Financial Management specialist, Mr Arigu  Kudu has praised  Sokoto Livelihood and Public Works Project, L-PRES, office for its timely financial reporting processes. 

The commendation was made during a financial review meeting with management teams of World Bank-funded projects in Sokoto State, including L-PRES, RAAMP and ACReSAL.

The financial review meeting aims to address seven key areas as interim financial report, internal audit report, external audit report, fixed asset register, as well as bank statement, bank reconciliation and statement of expenditure, to identify and correct anomalies in financial reporting processes, enhancing the efficiency of the projects in fulfilling their responsibilities.

Mr Arigu expressed appreciation for the dedication and commitment of the L-PRES management team, acknowledging their efforts in maintaining high standard of financial management. 

The commendation highlights  L-PRES office’s effectiveness in managing World Bank funds and its potential for continued success in project implementation.