Discos and historic electricity debtors
The news has been trending for some time now on how much some Nigerian public institutions are owing Nigerian electricity distributor companies called discos. The amount, which runs into billions of naira, is really disturbing. It has been noted that the debtors cut across the three tiers of government – local, state and even the […]
The news has been trending for some time now on how much some Nigerian public institutions are owing Nigerian electricity distributor companies called discos. The amount, which runs into billions of naira, is really disturbing.
It has been noted that the debtors cut across the three tiers of government – local, state and even the federal government, including the security apparatuses. Certainly, that is a very bothersome development, which simply does not augur well for any hope of having constant power supply in Nigeria or for any meaningful economic development to occur. It is obviously worrisome when institutions which should set the pace for others to follow are the leading defaulters on payment of electricity bills.
Worse still is the obvious situation of these public institutions being the very ones expected to act to prevail on ordinary and corporate debtors to pay their electricity bills in case of default on payment of such bills. What sort of moral authority would such public institutions and security outfits have to prevail or induce electricity debtors to pay their bills when they too are owing similar bills they have not paid?
Certainly, a huge moral deficit has been created for such organisations that have not paid their electricity bills. Obviously, such defaulters in high places, both in power and on the corridors of power, have contributed immensely to the parlous state of electricity supply in the nation and the odium of poor performance that attended the image of both NEPA and the PHCN, both predecessors of the discos in the delivery of electricity in Nigeria.
Given the huge investments of the discos to come on stream in electricity delivery as a result of privatisation, it is certainly unrealistic, if not downright wicked, to expect the discos to carry a debt burden that preceded privatisation without some financial help from government in recognition of the existence of such debt burden on the discos. But now that government itself is involved at all tiers, it is as if it was a government policy not to pay electricity bills at all levels, which definitely cannot be the case. Or are we mistaken on this matter in assuming that government has decreed not to pay electricity bills when it privatised the power industry in this nation, thus contributing immensely to the huge historic debt burden inflicted on the discos?
Certainly, an answer needs to be provided at the highest echelons of government to solve this riddle finely but mischievously hidden in an enigma of unbelievable government default of electricity bills.
The obvious comparison is for government at all levels to consider how it will feel if citizens in each local government, state and the nation at large, fail to pay taxes. Of course, they are taken to court, and if found guilty, are jailed. Now, how can the discos who are partners with government successfully perform their task of delivering electricity when consumers, including the government, don’t pay the equivalent of taxes which are electricity tariffs, and which in this case, are cost reflective and putting that weight of delivery on the shoulders of the discos? Certainly, something is rotten in the state of public institutions’ perception of their electricity bills. Government at all tiers must do their duty in this regard to prove that, like all of us who pay our taxes and electricity bills, they too are worthy to be called solid individuals or corporate citizens.
This is a clear-cut case of civil irresponsibility that should be nipped in the bud before it becomes the norm in our society and nation generally. Public institutions have always had priority over individuals or even busy corporate companies and the private sector at large in the allocation of electricity, even before the coming of the discos, till now. So why can’t they justify their importance by simply footing the bill of their electricity consumption?
This none payment of electricity bills by agents of government at all tiers has cast deep aspersion on the integrity and sense of accountability of such institutions in the governance of this nation. This is another act of blatant corruption and misuse of public funds since such public institutions must have budgeted for electricity usage and delivery. This certainly is another Pandora box in the Buhari government’s fight against corruption. Government should simply ask its institutions of all shapes and sizes, and at all levels, to pay what they owe the discos or be ready to face sanction.
Nwankwo, an analyst, wrote from Benin