•Stakeholders raise concerns, urge immediate intervention
•LUTH seeks band downgrading over N252 million monthly bill
Debt owed by Ministries Departments and Agencies (MDAs) to electricity distribution companies (DisCos) has spiked following the increase in electricity tariff for customers under band A.
The development, projected to worsen the liquidity crisis in the power sector, comes amidst over N100 billion in government-owned entities' (GOEs) debts to the Nigerian Electricity Supply Industry (NESI).
Already, the Lagos University Teaching Hospital (LUTH) is at loggerheads with the Eko Electricity Distribution Company (EKEDC) to migrate them from band ‘A' even as universities are already threatened over mounting electricity bills.
LUTH and other public institutions have insisted that the recent increase in tariffs for Band A customers by the Nigerian Electricity Regulatory Commission (NERC) has further strained their debts and budgets.
Indeed, some DisCos have disconnected some of the institutions, which is already causing unrest among students amidst the reoccurring collapse of the national grid.
The Chief Medical Director of LUTH, Prof. Wasiu Lanre Adeyemo, told The Guardian that the hospital had insisted on migrating away from Band A as they could not afford the bills.
He expressed dissatisfaction over the sudden migration to Band A by Eko Electricity Distribution Company (EKEDC), noting that the bill given to the College of Medicine and LUTH in April before the change was N69 million while the bill skyrocketed to N252 million in May.
“We have written to Eko DisCo and the Minister of Power on migration from Band A; we will write to NERC on the same matter as we cannot afford Band A bills.
“We were able to deploy that because we knew that we needed to go green, renewable energy, other areas of the hospital were powered with diesel, nobody died because there was no light, we were operating and very efficient though the number cannot be as much as when we had our light fully on the grid but we were able to function well but at a cost of buying diesel, we are happy to be back on the grid,” he said.
The Guardian gathered that the institution was cut off from power supply by Eko DisCo on Friday, 25th June 2024, and has been reconnected after part payment of the debt incurred.
Adeyemo, however, assured that before the end of 2025, the institution would have covered a substantial number of its facilities and any other structures coming up in LUTH with solar energy as that's the only way to survive.
Also, Jos Electricity Distribution Company disconnected the University of Jos from the national grid over debts amounting to about N126 million, the University of Benin, electricity was disconnected for over N300 million unpaid electricity debt, the Aliko Dangote University of Science and Technology, Wudil, Kano State, was disconnected over debts amounting to over N248 million.
However, The Kano Electricity Distribution Company (KEDCO) has reconnected power to Aliko Dangote University of Science and Technology, Wudil, following the payment of N100 million.
The Dean of Students' Affairs at Aliko Dangote University of Science and Technology, Prof. Abdulkadir Dambazau, attributed the reconnection to swift actions taken by the Kano State Government and the Dangote Foundation.
Dambazau noted that the state government has pledged to settle the remaining debts, while the Dangote Foundation is exploring lasting solutions, such as solar mini-grids, to prevent future interruptions.
Also, University of Ilorin Vice-Chancellor, Prof Wahab Egbewole expressed concern about the institution's rising monthly electricity bill, which has soared from N70 million to N230 million. He attributed this increase to recent tariff hikes imposed by the Ibadan Electricity Distribution Company (IBEDC).
During a podcast titled: “National Grid Collapses For The 6th Time in 2024 – Challenges and Way” on X social media platform, Energy Consultant Dr Hamisu Dandajeh, emphasised that the current generation capacity is inadequate to meet the needs of all Nigerians, suggesting that even providing Bands A customers with 20 to 24 hours of supply is not assured due to these constraints.
“We are not learning from this crisis, how can you put Universities and hospitals on Band A? Federal institutions like this need to find alternative means of energy for sustainability,” he said.
Stakeholders, however, kick against total dependence on the grid by the government institutions, hence advising a transition to cleaner and alternative means of energy.
They mentioned that customers in Bands A to E would be affected due to insufficient energy generation, with Band A customers benefiting at the detriment of other bands due to limited capacity without any increase in generation capacity.
NERC had in January said the Federal government would pay N1.6 trillion to subsidise electricity this year. However, the Executive Director at PowerUp Initiatives For Electricity Rights (PowerUp Nigeria), Adetayo Adegbemle, told The Guardian that the N1.6 trillion was for subsidy of those on Band B and below.
He mentioned that a study would have to be commissioned to study how effective the subsidy has been and it also has to reflect on energy utilisation by Discos.
“I am aware that as of April when the Band A subsidy was removed, the number of approved Feeders was barely 480 nationwide, which is supposed to account for about 15 per cent of Consumers, but now that more feeders have been approved, a study would have to be commissioned to ascertain how much effect this N1.6trn subsidy would be,” he said.
Regarding the current tariff structure and its impact on federal institutions, he emphasised that many reports suggesting institutions will remain without power due to the inability to pay electricity bills are exaggerating the situation.
He mentioned that none of the reports clearly stated their bills before the subsidy removal for Band A, how much diesel these institutions were purchasing, or whether they were receiving Band A supplies. He believes these reports are insufficient to determine if there has been a significant impact on these institutions.
“There's no empirical evidence to support the position that government institutions receive less than the promised 20 to 24 hours of electricity, We will need to prove this beyond doubt and provisions by NERC also demand that such Feeders be downgraded if they're not meeting with contracted Band A supply,” he said
Also, Electricity Market Analyst, Lanre Elatuyi said the current tariff structure is not discriminatory as it was not designed to impact federal institutions, noting that they are like any other customers who are expected to pay their tariffs depending on the band that supplies them.
He emphasized that the challenge with federal institutions and many Ministries, Departments, and Agencies (MDAs) is that they have not been paying their electricity bills over the years, resulting in accumulated debts.
“The challenge is not pricing per se, but MDAs despite provisions for electricity bills in their budget often decide not to pay and this is impacting on liquidity in the sector, government should settle the debts since it's owed by government institutions,” he said.
The Committee of Vice-Chancellors of Nigerian Universities (CVCNU) has cautioned that about 52 Federal universities in the country could face collapse soon due to the recent hike in electricity tariffs, which has raised their overhead costs.
Secretary to the CVCNU, Prof. Yakubu Ochefu, warned that unless the Federal Government intervenes to reduce electricity tariffs imposed by the Discos, 52 federal universities could collapse soon due to unsustainable overhead costs crippling their operations.
