The Federal Government has no plans to increase electricity tariff as President Umaru Musa Yar'Adua has not authorised such.
A presidential source disclosed yesterday that the President was also worried about the perception that the Federal Government is not respecting agreements reached over the privatisation processes.
According to the source, the President at a meeting with the Minister of Information and Communications, Mr. John Odey, and the Minister of State for Energy (Power), Hajia Fatimah Ibrahim, yesterday morning expressed displeasure over the announcement of the increase in the electricity tariff and the “distortion” in the purported revocation of the sale of Nigerian Telecommunications Limited (NITEL) to Transnational Corporation (Transcorp).
“The President also asked Mr. Odey to hold a meeting and a joint press conference with Transcorp Chairman and Director General of the Nigerian Stock Exchange (NSE), Dr. Ndi Okereke-Onyiuke, to tidy up the truth about the approval he gave from the disengagement of Transcorp from the sale NITEL/MTEL,” the source said.
THISDAY gathered that President Yar’Adua had to delay his trip to Maiduguri, Borno State by a few hours in order to meet the ministers.
“President Yar'Adua, at the meeting, expressed displeasure with the way the two ministers handled the issues,” the source said.
The Minister of Information and Communications had in a statement last weekend announced the revocation of the sale of the telecommunications firm to Transcorp.
A letter by Odey addressed to the Group Managing Director of Transcorp reads: “Following the failure of Transnational Corporation in the post-sale transaction of NITEL/M-TEL as contained in the Share Purchase Agreement signed between your organisation and the Federal Government through the Bureau of Public Enterprises; the Federal Government has taken a decision to reverse the sale in consonance with the relevant sections of the Agreement.
“This is also in addition to the withdrawal of your Technical Partners – British Telecoms – the act of which negates the Share Purchase Agreement.
“But in consideration of the fact that you are a Nigerian company and taking into cognisance your antecedents, the Federal Government has magnanimously approved your retention of ten per cent (10%) of the company’s share (NITEL/M-TEL).
“In the circumstance, I am to request you to keep in abeyance all actions pertaining to the operations of NITEL/M-TEL forthwith.
“By copy of this letter, the CEO’s of NITEL, M-TEL and BPE are hereby informed of this development and directed to note the above and ensure strict compliance.”
The Minister of State for Energy (Power) on her part had on Wednesday at the just concluded Nigerian Oil and Gas Conference in Abuja announced the increase in electricity tariff.
She had hinged the increase on attracting investment into the power sector, adding that the tariff, which currently stands at N6.00 per kilowatt per hour, had to be increased because potential private investors considered it very low.
She, however, did not state by how much the tariff would be increased but argued that for the country to develop the partnership with the private sector, there was the need to develop a competitive model to attract private investors.
The Presidency source said President Yar'Adua, at the meeting held at the Presidential Villa, Abuja directed Hajia Ibrahim to retract the statement.
The President, at the meeting, had said his government would not increase any tariff on electricity until there is stable power supply in the country.
According to the source, "the President invited the two ministers to explain their roles in the two issues. There is no plan to increase tariff on electricity and no such thing would be done until Nigerians can get stable power supply; that is the position of the President. He was very angry after reading the report on the increase and has asked the minister to retract her statement. Nigerians can be rest assured that no kobo will be added until they begin to enjoy stable electricity. And the President is working round the clock to ensure that.
“On the controversy over the revocation of the sale of NITEL to Transcorp, the President said he could not understand how what he approved was distorted in the media and directed Mr. Odey to hold a meeting and joint press conference with the Transcorp chairman, Dr. Okereke-Onyiuke.
“The President's approval tallied with what Transcorp had agreed with the Federal Government. The President does not understand where ‘revocation’ came from.
"This President believes that the best way to properly address the nation's economic challenges is through the Private Public Partnership (PPP). So, how can he take a decision that injures private investment? What the President approved on NITEL/MTEL was a decision already agreed between the Federal Government and Transcorp to rescue the telecommunications company that is very strategic for the nation.”
He said the President would soon address the nation on his efforts to redirect the economy.
Nigerians, he said, would appreciate what the President had spent the last eight months doing, adding that he had clear a direction on the power sector and would come out clearly with targets and timelines that would be met on power generation, transmission and distribution.
The emergency in the sector would also be declared soon and it would be far-reaching, not the type of thing most Nigerians envisage, the source said.
"What the President is coming out with is tied to the future of the country and not just the cosmetic approach or mere pronouncement. Yes, it is true the President promised he would declare emergency within three months of his administration. But having looked at the global picture in the sector when he came in, he realised he would be doing a disservice to the nation if he didn't take longer time to examine all the contending issues on ground and find lasting solutions to them," the source added.
The Special Adviser to the President on Communications, Mr. Olusegun Adeniyi, had told THISDAY on Wednesday that the revocation of the sale of NITEL to Transcorp had not been reversed, contrary to the impression created by the statement issued by Odey.
Adeniyi had said that the minister claimed that the media misquoted him on the issue.
According to Adeniyi, “I fail to understand where the story of the so-called reversal of NITEL/Mtel sales came from because I have spoken to the minister and he said he was misrepresented…I am aware of the issues concerning NITEL/Mtel and Transcorp and the various meetings that were held between the management and the government to address these problems which have been killing the company.
He had said the intervention “of the President on the issue followed petitions and appeals from several stakeholders, including the union and current management of Transcorp, who have shown very clearly that they need help. The approval of the President is not, and should therefore not be construed to mean reversal of the sale of Transcorp”.
Adeniyi had also said the two presidential approvals are: “One, that the Federal Government shares be diluted by 24 per cent and Transcorp Plc shares by 41 per cent to enable the new strategic investor secure 65 per cent controlling share holding. Two, that the Bureau of Public Enterprise, BPE, should undertake a transparent, public and sincere bidding for these divested shares.
“I am aware that Transcorp management has no problem with these decisions that were taken to protect the investors and help resolve some of the problems associated with the privatisation of the sales. Yes, it is true the President also directed that all allegations bordering on underhand dealings in the process leading to the privatisation be investigated by the relevant authorities. That is the correct position with regards to Transcorp so it is not accurate to use the word reversal because nothing has been reversed.”
A presidential source disclosed yesterday that the President was also worried about the perception that the Federal Government is not respecting agreements reached over the privatisation processes.
According to the source, the President at a meeting with the Minister of Information and Communications, Mr. John Odey, and the Minister of State for Energy (Power), Hajia Fatimah Ibrahim, yesterday morning expressed displeasure over the announcement of the increase in the electricity tariff and the “distortion” in the purported revocation of the sale of Nigerian Telecommunications Limited (NITEL) to Transnational Corporation (Transcorp).
“The President also asked Mr. Odey to hold a meeting and a joint press conference with Transcorp Chairman and Director General of the Nigerian Stock Exchange (NSE), Dr. Ndi Okereke-Onyiuke, to tidy up the truth about the approval he gave from the disengagement of Transcorp from the sale NITEL/MTEL,” the source said.
THISDAY gathered that President Yar’Adua had to delay his trip to Maiduguri, Borno State by a few hours in order to meet the ministers.
“President Yar'Adua, at the meeting, expressed displeasure with the way the two ministers handled the issues,” the source said.
The Minister of Information and Communications had in a statement last weekend announced the revocation of the sale of the telecommunications firm to Transcorp.
A letter by Odey addressed to the Group Managing Director of Transcorp reads: “Following the failure of Transnational Corporation in the post-sale transaction of NITEL/M-TEL as contained in the Share Purchase Agreement signed between your organisation and the Federal Government through the Bureau of Public Enterprises; the Federal Government has taken a decision to reverse the sale in consonance with the relevant sections of the Agreement.
“This is also in addition to the withdrawal of your Technical Partners – British Telecoms – the act of which negates the Share Purchase Agreement.
“But in consideration of the fact that you are a Nigerian company and taking into cognisance your antecedents, the Federal Government has magnanimously approved your retention of ten per cent (10%) of the company’s share (NITEL/M-TEL).
“In the circumstance, I am to request you to keep in abeyance all actions pertaining to the operations of NITEL/M-TEL forthwith.
“By copy of this letter, the CEO’s of NITEL, M-TEL and BPE are hereby informed of this development and directed to note the above and ensure strict compliance.”
The Minister of State for Energy (Power) on her part had on Wednesday at the just concluded Nigerian Oil and Gas Conference in Abuja announced the increase in electricity tariff.
She had hinged the increase on attracting investment into the power sector, adding that the tariff, which currently stands at N6.00 per kilowatt per hour, had to be increased because potential private investors considered it very low.
She, however, did not state by how much the tariff would be increased but argued that for the country to develop the partnership with the private sector, there was the need to develop a competitive model to attract private investors.
The Presidency source said President Yar'Adua, at the meeting held at the Presidential Villa, Abuja directed Hajia Ibrahim to retract the statement.
The President, at the meeting, had said his government would not increase any tariff on electricity until there is stable power supply in the country.
According to the source, "the President invited the two ministers to explain their roles in the two issues. There is no plan to increase tariff on electricity and no such thing would be done until Nigerians can get stable power supply; that is the position of the President. He was very angry after reading the report on the increase and has asked the minister to retract her statement. Nigerians can be rest assured that no kobo will be added until they begin to enjoy stable electricity. And the President is working round the clock to ensure that.
“On the controversy over the revocation of the sale of NITEL to Transcorp, the President said he could not understand how what he approved was distorted in the media and directed Mr. Odey to hold a meeting and joint press conference with the Transcorp chairman, Dr. Okereke-Onyiuke.
“The President's approval tallied with what Transcorp had agreed with the Federal Government. The President does not understand where ‘revocation’ came from.
"This President believes that the best way to properly address the nation's economic challenges is through the Private Public Partnership (PPP). So, how can he take a decision that injures private investment? What the President approved on NITEL/MTEL was a decision already agreed between the Federal Government and Transcorp to rescue the telecommunications company that is very strategic for the nation.”
He said the President would soon address the nation on his efforts to redirect the economy.
Nigerians, he said, would appreciate what the President had spent the last eight months doing, adding that he had clear a direction on the power sector and would come out clearly with targets and timelines that would be met on power generation, transmission and distribution.
The emergency in the sector would also be declared soon and it would be far-reaching, not the type of thing most Nigerians envisage, the source said.
"What the President is coming out with is tied to the future of the country and not just the cosmetic approach or mere pronouncement. Yes, it is true the President promised he would declare emergency within three months of his administration. But having looked at the global picture in the sector when he came in, he realised he would be doing a disservice to the nation if he didn't take longer time to examine all the contending issues on ground and find lasting solutions to them," the source added.
The Special Adviser to the President on Communications, Mr. Olusegun Adeniyi, had told THISDAY on Wednesday that the revocation of the sale of NITEL to Transcorp had not been reversed, contrary to the impression created by the statement issued by Odey.
Adeniyi had said that the minister claimed that the media misquoted him on the issue.
According to Adeniyi, “I fail to understand where the story of the so-called reversal of NITEL/Mtel sales came from because I have spoken to the minister and he said he was misrepresented…I am aware of the issues concerning NITEL/Mtel and Transcorp and the various meetings that were held between the management and the government to address these problems which have been killing the company.
He had said the intervention “of the President on the issue followed petitions and appeals from several stakeholders, including the union and current management of Transcorp, who have shown very clearly that they need help. The approval of the President is not, and should therefore not be construed to mean reversal of the sale of Transcorp”.
Adeniyi had also said the two presidential approvals are: “One, that the Federal Government shares be diluted by 24 per cent and Transcorp Plc shares by 41 per cent to enable the new strategic investor secure 65 per cent controlling share holding. Two, that the Bureau of Public Enterprise, BPE, should undertake a transparent, public and sincere bidding for these divested shares.
“I am aware that Transcorp management has no problem with these decisions that were taken to protect the investors and help resolve some of the problems associated with the privatisation of the sales. Yes, it is true the President also directed that all allegations bordering on underhand dealings in the process leading to the privatisation be investigated by the relevant authorities. That is the correct position with regards to Transcorp so it is not accurate to use the word reversal because nothing has been reversed.”
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