– ANED Director reveals military formations as significant debtors in electricity bills.
– He clarifies that Nigerian government itself does not owe N100 billion, but MDAs collectively do.
– Some measures taken include demanding payment and addressing challenges in disconnecting defaulting MDAs.
Eko hot blog reports that In a recent interview, Sunday Oduntan, the Executive Director of Research and Advocacy at the Association of Nigerian Electricity Distributors (ANED), shed light on the issue of outstanding electricity bills owed by government ministries, departments, and agencies (MDAs), highlighting military formations as significant debtors.
Oduntan clarified that while the Nigerian government itself does not owe N100 billion, various MDAs collectively owe this amount in unpaid electricity bills.
He emphasized that each MDA operates independently and has its own budget, hence the responsibility for payment falls on them, not on the government as a whole.
Regarding military formations, Oduntan pointed out that while some pay their bills, the Army stands out as a major debtor.
He stressed that blaming top government officials like the Defence Minister or the President for non-payment overlooks the autonomy of MDAs and their budget allocations.
To address the issue, ANED has taken measures such as publishing adverts to demand payment from MDAs.
However, disconnecting power supply to defaulting MDAs, particularly military formations, poses challenges due to concerns about national security.
On the broader challenges facing the power sector, Oduntan highlighted the critical issue of gas shortage, which significantly affects power generation.
He explained that gas-fired power plants, which are the main sources of electricity in Nigeria, depend on consistent gas supply.
Addressing concerns about the efficiency of electricity distribution companies (Discos), Oduntan acknowledged room for improvement but also emphasized the role of fair pricing and customer cooperation in enhancing efficiency.
Regarding government policies and regulations, Oduntan acknowledged their importance in shaping the electricity system and expressed optimism about ongoing initiatives, including partnerships with foreign companies like Siemens to upgrade infrastructure.
In tackling electricity theft and illegal connections, ANED is deploying more technology and collaborating with law enforcement agencies to prosecute offenders.
Additionally, engaging with consumers to raise awareness about their roles in combating energy theft is a priority.
On tariff structure, Oduntan emphasized that tariffs are scientifically determined by regulators to balance financial viability for Discos and affordability for consumers.
Finally, on promoting private sector participation and investment, Oduntan stressed the need for a conducive environment provided by the government to attract both local and foreign investors.
Overall, while challenges persist, Oduntan remains hopeful about the sector’s future, emphasizing the importance of technology adoption, consumer education, and government support in achieving sustainable energy distribution and management in Nigeria.