Electricity union decries CBN’s directive on power sector
The Nigeria Union of Electricity Employees (NUEE) says the Central Bank of Nigeria (CBN)’s directive authorising banks to ring-fence collection accounts of electricity distribution companies (DisCos) in Nigeria is counter productive.
Its General Secretary,
Joe Ajaero, said on Tuesday in Lagos that the directive would result in
operational and overhead cost challenges.
The News Agency of
Nigeria (NAN) reports that CBN on August 21 had issued a circular authorising
banks to ring-fence collection accounts of electricity distribution companies
(DisCos) in Nigeria.
The apex bank
instructed that all the collections and remittances of the DisCos to both NBET
and TCN would now be the responsibility of banks providing guarantees to
DisCos.
Mr Ajaero said: “CBN
is not a regulatory body for the power sector and has very minute knowledge
about its operations and cannot be in a position to issue directives in a
sector where it lacks expertise.
“Since the
privatisation of the Nigerian power sector on November 1, 2013, not much has
been done toward ensuring that electricity consumers are issued prepaid meters.
“This is to properly
account and justify payments being made for energy consumers, rather than the
estimated billing system which has further placed huge financial burden on
Nigerians.”
He said also that
the CBN’s directive would not guarantee jobs security.
According to him, it
will throw thousands of electricity workers into the labour market, thus
increasing hardship and hunger on family members of those affected.
“The directive will
further increase the unemployment index which the current administration is
working assiduously to prune down.
“The CBN directive
is a subtle attempt to take over jobs in the power sector which will be
resisted.
“You cannot work in
the financial sector of the economy and collect your pay from the power sector;
enough of this usurpation,” he said.
Mr Ajaero urged the
Federal Government to concentrate on metering every electricity consumer in the
country, instead of asking them to keep paying for electricity not consumed.
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