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Abuja Update

Lighthouse Project: N57bn recovered from  N5.2trillion aggregate in MDAs

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By Matthew Denis

The Project Light House Programme of the Federal Government being managed by Federal Ministry of Finance, has through the consolidation efforts of the Debt Analytics and Reporting Application, been able to aggregate monumental debts of approximately N5.2 trillion aggregate recovery in 10 Ministries, Departments and Agencies (MDAs) due to concerted efforts on the part of stakeholders and Federal Government.

The Director  Special Projects Federal Ministry of Finance, Aisha Omar, made this disclosure today in Gombe, Gombe State during a one-day sensitisation programme for the North-East Geopolitical Zone programme on Federal Government’s debt recovery drive through the Project LightHouse Programme.

Omar hinted that these debts came to the spotlight from data aggregated from over 5,000+ debtors across ten (10) Ministries, Departments, Agencies (MDAs), adding that, the aggravation was still ongoing.

According to Omar, Project Lighthouse initiative was designed to help solve the intractable and perennial problem of debt recovery by using big data analytics  technology.

The Director who was represented at the  event by the Deputy Director in the Special Projects Department Federal Ministry of Finance, Mrs.Bridget Molokwu disclosed that the core focus of Project Lighthouse is to leverage on big data technology to help block revenue loopholes, identify new revenue opportunities, optimize existing revenue streams especially non-oil revenue as well as improve fiscal transparency.

She emphasized that the essence of the initiative was the recovery of debt owed to the Federal Government by individuals and companies through the debt recovery capability of Project Lighthouse engine. The system according to her collects, integrates and analyses data from revenue generating agencies in order to create insightful information for improved decision making on debt recovery.

According to the Director the importance of the  project is leveraging on big data technology to help in blocking revenue loopholes, identifying new revenue opportunities, optimising existing revenue streams especially the non-oil revenue as well as improving fiscal transparency.

She revealed that data from Project Lighthouse Programme revealed that many companies and individuals who owed government agencies and refused to honour their obligations were still being paid especially through the government platforms such as GIFMIS and Treasury Single Account (TSA) due to lack of visibility over such transactions.

The Director explained that the debts were in the form of debt liabilities to the Federal Inland Revenue Service (FIRS); refunds to the Government by companies which failed to deliver on projects for which payment had been effected, unpaid credit facilities granted to both corporate entities and individuals by the Bank of Industry (BOI) and Bank of Agriculture (BOA). Others were judgment debt in favour of Government, debts owed Pension Transition Arrangement Directorate (PTAD) by insurance companies among others.

She explained that the Ministry had taken steps to address the major revenue loopholes   some of which included :the issuance of a Ministerial directive on 26th September 2019 to all MDAs with a view to aggregating all government debts across the Public Finance Space, to have a single window on the credit profile of the  Federal Government and the Federal Executive Council (FEC) regulatory approval on Wednesday 31st March 2021, extension of the functionalities of the debt recovery capability of the Lighthouse Project Programme.

She noted that the above measures would enable Federal Ministry of Finance to fully automate the debt recovery process and make settlements of debts as seamless as possible.

She solicited the participants’ cooperation and commitment in providing quality and relevant information (debt-related data) to populate the platform, reiterating that their organizations stand to benefit immensely from the intelligence that the initiative will be producing, adding that she was counting on their continuous support to ensure the full realization of the goals and aspiration of the laudable project.

Omar assured the participants that “it is her firm believe that together we can dramatically change our revenue story by fully and innovatively exploiting the great power of Big Data Analytics, Data Science and related technologies”.

She also urged all stakeholders to put in their best to ensure the successful implementation of this initiative, adding that the essence of the workshop was to train officers on how to go about debt recovery, explaining that the initiative was an important aspect of government recovery process.

She disclosed that debt recovery would reduce the country’s indebtedness, tract day- to- day revenue generation, get true profile of our debt recovery porfolio, block revenue leakages and loopholes, adding that, Project Lighthouse initiative has come with this recovery process.

She noted that the organizations stand to benefit immensely from the intelligence generated from the Project Lighthouse Programme.

Earlier the Project consultant, Dr.Abraham Atteh stated that Project Lighthouse initiative was all about debt recovery through the use of technology. He said it was all about tracking, retrieving and recovering government debts. He  added that with the initiative, every entity that does business with the government will be able to pay debts owed to the government, adding that systems will be put in place to block loopholes created by these entities. He explained that government was putting every technology in place to recover its debts owed by both private and corporate entities, adding that those categories of debtors would be tracked using existing technology.

Mr. Usim Ahmed, one of the participants was quoted as saying , “The initiative is a good one but government should involve technology so that all these government huge debts be traced and recovered back to government coffers and payent platforms should be made effective with full technology to recover those debts.”

Another participant, Idris Nasiru Baba opined  that the policy is great but the implementation might be difficult since government contractors might owe one Ministry and go to the other to do business. He, however, called for total implementation of the policy.

While giving the Vote of Thanks the Deputy Director Presidential Initiative On Continuous Audit (PICA)  Federal Ministry of Finance, Mr. Johnson Oludare said, with the Project Lighthouse Initiative, the Ministry believes “Nigeria will work again, adding that engagement should not stop at the workshop but should be a continuous work until a better Nigeria is achieved”. He stated that all the participants were the role players and therefore encouraged to work harder until the debt recovery drive via the initiative was achieved.

Mr. Oludare who reiterated that the workshop was very educative and interactive thanked the participants on behalf of the Permanent Secretaries of the Federal Ministry of Finance, Mr. Aliyu Ahmed and Mr. Okokon Udo.

The North-East Zonal Sensitisation Programme was well attended by representatives drawn from government agencies, institutions and hospitals among others.

It could be recalled that the Ministry had organized a similar sensitisation programme on the Project LightHouse Programme in the South-West, North-West, South-South and North – Central Geopolitical Zones of the country

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Abuja Update

Father arrested for writing UTME for son — JAMB

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In a shocking incident, a father was recently arrested for writing the Unified Tertiary Matriculation Examination (UTME) for his son, according to Professor Ishaq Oloyede, the Registrar of the Joint Admissions and Matriculation Board (JAMB).

Professor Oloyede made this revelation on Wednesday while inspecting a JAMB centre in Kaduna, expressing concern over the growing trend of parents impersonating their children to sit examinations.

He emphasised that cheating does not pay and warned those engaging in such practices to desist.

The JAMB Registrar attributed the arrest to the board’s increased use of technology to detect and prevent impersonation.

He noted that the board is working hard to ensure the integrity of the examination process and prevent fraudulent activities.

“Across the country, most of the problem we have is impersonation. We have a case of a father impersonating his son, writing examinations for the son and I wonder, are you not destroying your son’s future?

 ”Of course, two of them are now in custody. I can’t understand what the father will now tell his son when they are both locked up in the same cell. This definitely happened not in Kaduna, but I don’t want to disclose the state.

“So, it is largely a case of impersonation, but we are ahead of them. We are just picking them up like chickens now, because the facilities are there for us to see what they are doing and to pick them up. And even those that we have left for research purposes, they will see what will happen after the exams,” he said.

The Registrar added that there were cases of people with two NINs which had defeated the purpose of the identity verification.

He said the board would take the matter up with the NIMC.

The JAMB Registrar also used the opportunity to inform those that have missed the exam, for reasons not caused by the Examination body, to forget about it, saying that JAMB cannot spend tens of millions of the nation’s resources to reorganise a session for few candidates who missed the exams due to their personal recklessness.

He also warned that UTME is not a school-based examination, as such, JAMB would not be responsible for any failure caused to candidates who registered through their secondary schools who either deliberately or due to logistics challenges could not get the candidates to meet their requirements.

The JAMB Registrar reiterated that UTME results cannot be allowed to be valid for more than a year, describing it as a ranking examination, and not an achievement examination that can be kept for a long time.

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Abuja Update

Escalating rivalry among Zamfara bandits, organisations threatens peace efforts

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In the heart of Zamfara State’s ongoing security crisis, a disturbing escalation in tensions between rival bandit groups has brought the region to the brink of further violence.

The standoff, marked by dire warnings and threats of lethal reprisals, underscores the complex and volatile dynamics at play within the criminal underworld of the state.

According to intelligence sources obtained by Zagazola, a platform specialising in regional security updates, four of the most feared bandit gangs have emerged as central players in the escalating conflict. These groups, each vying for dominance and control over lucrative criminal enterprises, have demonstrated a steadfast rejection of peaceful coexistence, opting instead for a combative stance against one another.

The latest chapter in this saga unfolded on Saturday, April 14 when representatives from three of the four factions convened at Usu village in Birnin-Magaji Local Government Area to explore the possibility of a peace agreement. Notably absent from the gathering was the Bello Turji faction, signaling a clear defiance of the reconciliation efforts.

Leading the negotiations were the leaders of the Alhaji Shingi gang, represented by Ado Aleru, the Kachalla Halilu faction, represented by Bello Tagoje, and the Gwaska group, represented by a coalition including Ardo Na-shawari, Alhaji Ali, Alhaji Shamago, and the youngest son of Dan Karami Gwaska. The absence of Bello Turji, however, cast a shadow of doubt over the prospects of achieving a comprehensive peace deal.

The deliberations were punctuated by stern warnings and ultimatums, with the Shingi gang, led by Ado Aleru, issuing a chilling threat to the Gwaska group. They forbade the Gwaska faction from setting foot in any village other than Tsanu and Rukudawa in Zurmi Local Government Area, accompanied by a stern warning of lethal consequences should they defy this directive.

To fortify their position, the three bandit leaders strategically deployed their forces in the north of Tsafe, signaling readiness for potential hostilities. In addition to territorial demands, the Shingi gang presented a list of conditions for peace, including the restitution of stolen livestock and firearms, as well as compensation for damages inflicted upon rival factions.

Despite the Gwaska group’s tentative agreement to the terms proposed by the Shingi gang, the obstinate stance of Bello Turji cast a pall over the prospects of lasting peace. Disregarding the overtures of reconciliation, Bello Turji reaffirmed his commitment to pursuing Dan Karami Gwaska, signaling a continuation of the cycle of violence that has plagued the region.

As Zamfara State hangs on the brink of further bloodshed, the efficacy of peace negotiations remains uncertain. With the specter of armed conflict looming large, the fate of countless innocent lives hangs in the balance, underscoring the urgent need for a concerted effort to quell the rising tide of violence and instability in the region.

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Abuja Update

Matters arising from new electricity tariff in Nigeria

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By Tolu Ogunlesi

Quite sad (but not surprising) that it’s the ‘freezer’ comment that totally dominated the headlines from yesterday’s Electricity press briefing. There was a lot more that was said, that’s useful to know, as background and basis for conversation and debate.

If you want to know what else HM Bayo Adelabu said, I took some notes – the comments below are attributable to him (and to the NERC Vice Chair, who also spoke).

[The important background to all this is that for now it’s ONLY Band A consumers who are affected by the 3-fold Tariff Increase rolled out this week. There are 5 Tariff Bands in all, A to E. Band A are the ones guaranteed a minimum of 20 hours of supply per day]

  1. Prior to tariff change, the Federal Government was subsidising 67 percent of the total cost of generating, transmitting, and distributing electricity in Nigeria.

Nigerian Electricity Regulatory Commission Vice Chair added: If you isolate Generation, that 67 percent figure rises considerably. For example, in January 2024, the total power generation invoice issued to DisCos was 240 Billion Naira, but the Discos were asked to pay only 24 Billion of this = 10 percent, which means 90 percent of the generation cost was being borne by FGN, as a subsidy.

  1. Total estimated electricity subsidy cost (on FGN) for 2024, without tariff adjustment: ~2.9 Trillion Naira (~240 Billion per month)
  2. Total estimated subsidy cost for 2024, after tariff adjustment: ~1.4 Trillion Naira (~113 Billion per month)
  3. The Tariff increase has also been accompanied by a reduction in the number of Band A “feeders” — i.e. feeders guaranteed to supply a minimum of 20 hours per day — across the country. There were previously over 1,000 Band A feeders; now, only 481 are classified as Band A.
  4. There are about 12 million electricity “customers” in Nigeria (please try and understand this carefully before jumping to make comments. It doesn’t mean 12 million ‘people’, it means 12m ‘meter-able’ consumption points, e.g households, businesses, etc).
  5. Band A accounts for = 15% of the 12 million electricity customers = approx 1.8m. The remaining >10m customers will continue to enjoy government subsidies on electricity consumption.

(Related to this, I’ve seen data elsewhere that suggests that 70 percent of the revenues collected in 2023 came from Band A – worth confirming that figure).

  1. Of the 12 million customers, only a little over 5 million are currently metered. Which means a metering gap of over 6 million.
  2. The subsidised pricing regime will continue in the short term, with a “transition plan” to attain full “cost-reflective” pricing over the next 3 years.
  3. The restricting of the Tariff increase to Band A is meant to serve as a “proof of concept”; i.e. kicking off with a Band that has the “capacity and willingness” to pay for 20 to 24 hours of daily supply.
  4. The pricing change will help address some of the liquidity issues in the industry; restore a “line of sight” for recovery of investment, and make it more “bankable.”
  5. There is a huge infrastructure deficit in the power sector; obsolete equipment at all levels (this is where the Minister cited the example of some equipment still carrying ECN branding; ECN has been defunct for more than 50 years now)—and vandalisation of everything from gas pipelines to grid towers etc.
  6. If DisCos supply less than 20 hours to Band A consumers, there must be sanctions and consequences. “We will not shy away from our responsibilities…”

(On this note, NERC Vice Chair added that under the old Power Sector Reform Act, the powers of NERC to sanction were limited, and fines for DisCos were outdated (he cited fines as low as N10,000 per day). But with the new Act signed by PBAT—see No. 15 below—NERC now has expanded regulatory and sanctions powers. Vice Chair cited example of 2018 when NERC suspended IBEDC Board, and Board went to Court and got the suspension set aside, vs 2024 when NERC was able to successfully dissolve the Board of KEDC).

  1. The new Tariff Regime for Band A means there’s now an incentive for DisCos to work to migrate other Bands to Band A, so that they can supply them Band A threshold, and charge Band A tariffs.
  2. Energy consumption management by consumers has to become a priority. This is where the ‘freezer’ example (that has gone viral) was cited. Yeah, def not the best example to use, as we’ve seen from the distracting fallout, but the larger point about more responsible usage stands.
  3. Minister mentioned ongoing efforts to improve electricity supply:

—The new Electricity Act signed by PBAT (which repealed the Electric Power Sector Reform Act of 2005) has now fully decentralised the sector, and empowers subnational governments for regulation and licensing.

—Renewable energy investments, led by REA

—New power plants like recently-completed Zungeru Hydropower (700MW)

—Investments in new lines, new injection substations, new transformers

—Closing the metering gap.

—Communications and advocacy

  1. “The journey of a thousand miles stand with a single step, in the right direction. This one is in the right direction.” — Bayo Adelabu

Ogunlesi is a Policy Communication Expert and former Special Assistant on Digital Communication to President Buhari

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