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Upgrade: Discos may move three million subscribers to estimated billing

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Except there is a last-minute intervention, about three million electricity customers may be forced into estimated billing or outright darkness due to their failure to upgrade their prepaid meters.

This is as a consumer group estimated that half of the 5,993,340 metered customers would be caught in the web of the government policy.

But another group opined that anybody who has not upgraded his meter until now should be one of those Nigerians who like to display lackadaisical attitudes towards government policies, saying the upgrade started last year.

In the past 10 days, the Nigerian Electricity Regulatory Commission has repeatedly reminded Nigerians of the need to upgrade their meters.

Have you updated your meter yet? From November 24, 2024, you may not be able to recharge your meter without updating. However, updating is easy and free.

“DisCos have already commenced issuance of two free Key Change Tokens which will update your meter.

“The update will not affect the units in your meter, nor will it make your meter run faster than usual. Contact your DisCo for more information,” the NERC said in a post on its handles.

As the NERC continued to sensitise consumers to the meter update, most of the distribution companies appeared unbothered until the exercise elapsed on Sunday.

As of yesterday, there were various complaints from customers who have yet to update their meters.

While some customers said they encountered technical glitches in their efforts to update their meters, others complained of a lack of electricity and many said they got feedback that their meters could not be updated and they had to be replaced.

Earlier, the distribution companies in Lagos told their consumers that all Unistar meters would be phased out by November 14 2024 due to Token Identifier rollover.

Customers using Unistar meters were asked to pay for the replacement of their meters, sparking outrage from affected customers.

The Unistar meter producers denied claims that their meters are outdated. They stated that their meters utilising the card meter technology are fully upgradeable and compatible with the STS meter technology.

The Federal Competition and Consumer Protection Commission also intervened, urging the DisCos to halt their replacement of Unistar prepaid meters.

The FCCPC’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, at a recent meeting held at the FCCPC headquarters in Abuja and was attended by representatives from the NERC, the Nigerian Electricity Management Services Agency NEMSA, various electricity distribution companies and Unistar Hitech Systems Limited, expressed concern over practices that require consumers to pay upfront for meters without reimbursement, calling it a direct violation of the NERC Meter Asset Provider and National Mass Metering Regulations 2021.

He also noted that DisCos frequently places consumers with faulty meters on estimated billing, saying this is prohibited under NERC’s regulations.

Bello cited an example of a complaint received by FCCPC from an Ikeja Electric customer, who had expressed frustration at being asked to replace a functioning meter at a significant personal cost.

To prevent potential exploitation, FCCPC directed that all meter replacement processes be conducted transparently, with costs borne by the DisCos and not passed on to consumers.

Bello stressed that FCCPC would enforce strict compliance with these regulatory requirements to protect consumers from arbitrary charges and estimated billing.

The NERC’s Order mandates that DisCos must prioritise metering for unmetered customers under the National Mass Metering Programme and follow strict guidelines for replacing faulty or obsolete meters.

“Furthermore, DisCos are prohibited from placing customers on estimated billing due to delays in meter replacement, as new meters must be installed immediately upon removing any faulty or obsolete unit,” the FCCPC boss said.

However, it appears the DisCos did not heed the FCCPC’s directive FCCPC as complaints abound from customers about being asked to pay for the replacement of meters that cannot be upgraded.

Reacting to this, the NERC issued a statement warning DisCos to desist from asking customers to pay for meter replacement.

The commission said no customer should be made to pay for the replacement of any faulty or obsolete meter.

According to a statement last week, the regulator said it was aware that some DisCos had instructed their customers to pay for the replacement of their faulty or obsolete meters.

“The Nigerian Electricity Regulatory Commission is aware that some Distribution Companies have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas. This instruction contravenes the Commission’s Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete end-use Customer Meters in the Nigerian Electricity Supply Industry,” the NERC said.

According to the regulator, the order states that no metered customer should be forcefully migrated to estimated billing.

It was also emphasised that any customer’s meter adjudged to be obsolete or faulty must be replaced free of charge by the DisCo, provided the damage was not caused by the customer.

“The Order clearly states that no customer with a meter should be forcefully migrated to estimated billing. If any customer’s meter is adjudged by any DisCo to be obsolete or faulty, it is the responsibility of the DisCo to replace the meter free of charge, provided that the fault was not caused by the customer,” it was stated.

Speaking with The PUNCH earlier, the Vice Chairman of NERC, Musiliu Oseni, stated that meters that are not upgradable will need to be phased out.

“Operationally, if they say some meters are not upgradable, they can decide to phase them out. But as they remove the meters, based on the rule, they must replace them. It is the responsibility of the DisCos to replace them,” he said.

He emphasised that during the phase-out process, no customer should be placed on estimated billing or be denied access to electricity.

He pointed out that if customers were asked to purchase meters under the MAP framework, DisCos must provide a clear mechanism for refunds, as they are obligated to refund the customers.

However, customers who spoke to our correspondent lamented that the DisCos have been doing the contrary.

A customer of the Ikeja Electric complained of how five meters were phased out in a property of eight flats and the flats were placed on estimated billing, with each asked to pay N268,000 per month.

“In a property I manage at Ikeja, a block of eight flats, IKEDC began by phasing out meters. Five meters have been phased out, and the trend continues. They asked individual flats to apply for direct connection to the pole with monthly estimated bills. Then, each flat should apply and pay for new meters they never brought. The estimated bill now charged for one month per flat is N268,000. How come a three-bedroom flat will consume N268,000 per month? Some don’t even have an air conditioner.

“Three tenants each just received the same bill this week, regardless of their consumption. They went to the IKEDC office to complain, and the officials told them to go and pay their bills,” the property manager complained.

Speaking in an interview with our correspondent, the Executive Director of the Electricity Consumer Protection Advocacy Centre, Princewill Okorie, expressed displeasure over the number of consumers that would be plunged into estimated billing over the meter upgrade.

According to Okorie, more than half of the current metered customers would lose their meters and join the over 7 million unmetered ones.

“More than half of metered customers will be subjected to estimated billing by this policy. The same meter that people are crying for so that they can know what they are consuming, you want to frustrate them with this strategy. You want to bring this strategy to make more consumers go into estimated billing. Are the DisCos obeying the estimated billing methodology approved by NERC?

“So, this is an indirect way of putting Nigerians underestimation. And I know that, without a meter, whether you use light or not, they will give you a bill. There was a grid collapse for about five days; the moment light came, those unmetered consumers were made to pay as if there was an electricity supply for 24 hours. It is wickedness against the poor,” Okorie lamented.

The consumer rights activist wondered what the FCCPC is doing to ensure electricity consumers are protected from all forms of exploitation.

“As far as I am concerned, the government should take decisive steps to protect Nigerians against the exploitative tendency of the distribution companies and NERC. The regulator should be investigated, and if possible, sanctioned.

What is the FCCPC doing? Are they aware that consumers are about to be subjected to this? How is the FCCPC protecting consumers? Was it not the consumer protection commission that spoke the other day, and the DisCos said they have suspended it, now that they want to do this, what is the commission saying? How many metered and unmetered consumers do the FCCPC know?” he queried.

Customers share experience

A customer of the Ikeja DisCo, Dare Oguntuase, reported to NERC, his unsuccessful efforts to retrieve his meter allegedly taken away by the DisCo in September.

“NERC should do more than advocacy. Our Discos are irresponsible, fraudulent, and highly unpatriotic. Ikeja Electric is the worst. I have been in the darkness for 63 days now and still counting. My meter No. 47001599126, was retrieved for repair/replacement since 20th September,” he said.

Esther Madu, an X user, said her meter was not accepting the token for the upgrade.

“Someone please help me. I have recharged more than N8,000 on my prepaid meter but my meter has been rejecting the token since Monday. Therefore, I haven’t been able to use electricity in my home since Monday,” she cried out.

A customer of the Port Harcourt DisCo, Engr Gabby, reported, “My meter is rejecting the KCT given to me and I have dropped a complaint to the PHED, to date, no solution.”

Patrick, also under the Port Harcourt DisCo, pleaded with the regulator to extend the deadline, saying his area has been out of power supply due to vandalism.

“Our transformer armored cable was vandalised. PHED refused to fix it. We are contributing N6,000 each to replace the cable. Try to extend this deadline,” Patrick told NERC on X.

Olutosin Runsewe queried why old meter users cannot upgrade their meters.

When asked if she had been able to upgrade her meter, Runsewe replied, “No, they said Unistar meters can’t be upgraded.”

Another customer of the IKEDC, Ikhade Agboghayemeh, shared his chat with the company, which told him to request a meter replacement when he sought information on how to update his Unistar meter.

A customer of the Abuja DisCo simply identified as Austine reported that his faulty meter was not repaired almost a year ago.

“Please intervene in my case with the Abuja Electricity Distribution Company. My meter has been faulty for almost a year now. All my efforts to get them to repair it have failed,” Austine begged NERC.

Replying to calls for an upgrade, an electricity customer said, “You guys are funny, still not enough houses metered. You want to out-date existing meters after upgrading without any plans of replacement. The DisCos are making customers pay through their noses for meter replacement. If you don’t pay, they don’t change it or they place you on estimated billing.”

Also, a consumer identified as Mathew CB, voiced his frustration in Enugu.

“How do we upgrade the meter when we don’t have light here in Emene Enugu State for weeks? You can find out from Enugu DisCo why they’re frustrating people living in this part of Enugu State,” Mathew stated.

Alabi Alapa was concerned about whether or not the illiterates understand the process of meter upgrade, asking, “Do you mandate the DisCos to educate all these old women who live alone and are illiterate?”

In his case, another electricity user, Ayo Olaleye, noted that the response he got while trying to update his meter said, “Your meter is not qualified for TID Rollover.”

Meter replacement may continue till March 2025 – DisCos

In a recent interview, the Executive Director, Research and Advocacy, the Association of Nigerian Electricity Distributors, Sunday Oduntan, assured Nigerians that the DisCos would replace their obsolete or faulty electricity meters at no cost to them.

“Any meter that has lost its integrity, either by way of being obsolete or by way of it not conforming to our system. We will need to remove, retract, and replace those meters. The issue of cost is what I now have to make very clear. For Nigerians, be assured that when we come to your doorstep, we retrieve your meter, we shall replace it at our own cost and at no cost to you,” Oduntan disclosed.

He added that this became necessary for cost recovery.

“One of the reasons why we want to retrieve some meters and replace them is because they are making us lose a lot of money. In a particular Disco, we have 10,927 of those meters. Over time, only about 3,200 of them came out to buy credit. The others, we don’t know where they are. That’s a case of serious bypass. Any meter that makes it easy for my customers to bypass and steal energy, I will remove and replace it.

“What Nigerians don’t want is for me to give them further burdens. So, let it be a matter between me and my regulator. My regulator said, ‘Replace those meters at your cost.’ No problem. When I sit down with my regulator, what I need to ask is, I’ve replaced those meters, so what happens? Because I’m not the one that produces or supplies meters. The suppliers need to be paid, and to pay them, somehow the cost has to be recovered,” he posited.

Oduntan revealed that the meter replacement exercise would be done between now and the first quarter of 2025.

He emphasised that it is not in the interest of the DisCos to put customers on estimation because it leads to arguments between distributors and customers, who he also accused of wasting energy when not metered.

Customers blamed

Meanwhile, the National Coordinator of All Electricity Consumers Forum, Adeola Samuel-Ilori, said anyone who has not updated his meter should have himself to blame.

Samuel-Ilori said the upgrade of meters started last year and all consumers should have upgraded their meters by now.

According to him, an extension was done through his group’s continuous engagement with NERC.

“I believe with the type of engagement and enlightenment on it to consumers since last year, many ought to have done it without any hassles.

“If any customer has not done the upgrading till now, it may be out of the lackadaisical attitude of some Nigerians who like to wait till the last minute or until punitive measures are taken before they do the needful.

“I will not fold hands and watch the DisCos do anything that will tamper with consumers rights, even if it means approaching the court of competent jurisdiction. But this meter upgrade is not about sending many to the estimated billing system,” he stressed.

Contacted, a Senior Public Relations Officer at the Federal Competition and Consumer Protection Commission, Nicholas Utsalo, told our correspondent to send an official email, which has not been responded to since Saturday.

Our correspondent learnt that those whose meters were not updated would either choose to be in darkness or revert to the estimated billing system if they cannot wait till the day their DisCos will consider them for a new meter.

Likewise, individuals may decide to buy their own meter if it is taking too long to get a free device from their utility companies.

PUNCH NEWSPAPER

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Alleged 76bn, $31.5m Fraud: EFCC Arraigns Ex AMCON MD, Ahmed Kuru, Four Others in Lagos

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The Economic and Financial Crimes Commission (EFCC) on Monday, 20 January, 2025 arraigned a former Managing Director of Assets Management Corporation of Nigeria AMCON, Ahmed Kuru and four others for allegedly defrauding Arik Airline N76 billion and $31.5 million, respectively.

 

Other defendants are former Receiver Manager of Arik Airline Ltd, Kamilu Omokide, Chief Executive Officer of the airline, Captain Roy Ilegbodu, and Super Bravo Ltd and Union Bank PLC.

 

The defendants were arraigned before Justice Mojisola Dada of the Special Offences Court sitting in Ikeja, Lagos on a six-count charge bordering on theft, abuse of office and stealing by dishonestly taking the property of another.

 

The defendants, however, pleaded not guilty to all the six-count charges when they were read to them.

 

Count one reads: “That you, Union Bank Nigeria Plc, sometime in 2011 or thereabouts, in Lagos, within the jurisdiction of this Honourable Court, with the intention of causing and/or inducing unwarranted sale of Arik Air loans and bank guarantees with Union Bank, made false statements to the Assets Management Corporation of Nigeria (AMCON), regarding Arik Air Limited’s performing loans, following which you transferred a bogus figure of N71,000,000,000.00 (Seventy-One Billion Naira) to AMCON.”

 

Count two reads: “That you, Ahmed Lawal Kuru, Kamilu Alaba Omokide as Receiver Manager of Arik Air Limited, and Captain Roy Ilegbodu, Chief Executive Officer of Arik Air Limited in Receivership, sometime in 2022 or thereabout, in Lagos, within the jurisdiction of this honourable court, fraudulently converted to the use of NG Eagle Limited the total sum of N4,900,000,000.00 (Four Billion Nine Hundred Million Naira only), property of Arik Air Limited”.

 

Count five reads: “That you, Kamilu Alaba Omokide, Ahmed Lawal Kuru and Capt. Roy Ilegbodu, on the 12th day of February, 2022 or thereabout, in Lagos, within the jurisdiction of this Honourable Court, being public officers, directed to be done in abuse of the authority of your office and with intention of obtaining undue advantage for yourself and cronies an arbitrary act, to wit: intentionally authorizing the tear down and destruction of 5N-JEA with Serial No. 15058 valued at $31.5million (Thirty One Million, Five Hundred Thousand Dollars), an arbitrary act, which act is prejudicial to the economic stability of the Federal Republic of Nigeria and Arik Air Limited”.

 

The counsel to the first and third defendants, Prof Taiwo Osipitan, SAN, informed the court of a motion for bail application dated November 28, 2024 and November 29, 2024 for the two defendants.

 

Osipitan prayed the court that the defendants be granted bail on liberal terms.  According to him, the first defendant had no criminal records and that the EFCC granted him administration bail  which he didn’t jump.  “We pray the court grants bail to the two defendants on the same liberal terms given to them by EFCC,” he said.

 

EFCC Counsel, Wahab Shittu SAN, filed counter-affidavits dated December 2, 2024 against the first defendant and also another counter affidavits dated December 22, 2024 against the third defendant.  Shittu prayed the court to dismiss their bail applications.

 

According to him, the two defendants are facing serious offences of economic sabotage. However, he agreed with the second and third defence counsel that they are presumed innocent pending the determination of the court. Shittu , however, added that the temptation of the defendants leaving the country was very high. He thereafter prayed that accelerated hearing be granted and the defendants’ international passports be seized by the court.

 

“But if my lord decides to be magnanimous to grant them bail, we shall be praying for stringent conditions because we are particular about their attendance in court. “We urge that they should submit their international passports with the court in order to ensure that they come for trial,” he said.

 

The counsel to the second defendant, Olasupo Shasore, SAN in his motion for bail dated December 6, 2024 and filed on the same day, urged the court to also grant bail to his client on self recognition.

 

The prosecuting counsel in his counter affidavits dated January 17, 2025, opposed the bail application of the second defendant.

 

He said the application for bail was incompetent and should be struck out. Shittu cited relevance laws to buttress his argument. “My lord, the record of this court is to the effect that the second defendant, at one point, absconded in which your lordship had to issue a bench warrant. “The learned silk for the second defendant is not the defendant on trial and it is very unhealthy for a counsel to stand as a surety for a defendant.

 

“I urge my lord, in exercising his discretion, to take all this into consideration because our concern is the appearance of the second defendant in court so that he does not abscond.”

 

After listening to the arguments from all the parties, Justice Dada granted bail to the defendants in the sum of N20 million Naira each with two sureties in like sum.   The sureties must be gainfully employed and deposed to means of identification.

 

She also directed that the defendants must submit their international passports with the registrar of the court.

 

Justice Dada adjourned the matter till March 17, 18, and 19, 2025 for commencement of trial.

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Absence Of Oba Otudeko, Bisi Onasanya, Others Stalls Arraignment Over N12.3Billion Fraud As Otudeko’s Lawyer Protests In Court

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The counsel for Oba Otudeko, Chairman of Honeywell Group, who is facing charges of a N12.3 billion fraud, appeared before a Federal High Court in Lagos on Monday to protest the charge.

Mr. Bode Olanipekun (SAN) informed the court that he was protesting because the charge had not been served on Otudeko or the two other individuals charged alongside him, the News Agency of Nigeria reports.

Olanipekun informed the court that, despite not being served with the charge, the defendants were shocked to learn about the planned arraignment through the media when the story broke last Thursday.

The 13-count charge was filed by the Economic and Financial Crimes Commission (EFCC) against Oba Otudeko, former Managing Director of FirstBank Plc. Olabisi Onasanya, and former Honeywell board member Soji Akintayo.

Olanipekun is the counsel for the three defendants.

They were charged alongside the company, Anchorage Leisure Ltd.

 

The EFCC alleges that the defendants obtained the sum under false pretenses.

 

According to the EFCC, the four committed the fraud in tranches of N5.2billion, N6.2billion, N6.150billion, N1.5billion and N500million, between 2013 and 2014 in Lagos.

 

The 13-count charge, filed by EFCC counsel, Bilikisu Buhari, on January 16, 2025, further claimed that the defendants used forged documents to deceive the bank.

Specifically, count 1 accused the defendants of conspiring “to obtain the sum of N12.3Billion from First Bank Limited on the pretence that the said sum represented credit facilities applied for by V-TECH DYNAMIC LINKS LIMITED and Stallion Nigeria Limited, which representation you know to be false.”

 

In Count 2, it was alleged that the defendants, on or about 26th day of November, 2013 in Lagos, “obtained the sum of N5.2 billion from First Bank Limited on the pretence that the said sum represented credit facilities applied for by V TECH DYNAMIC LINKS LIMITED which representation you know to be false.”

 

The 3rd count alleged that the defendants, between 2013 and 2014 in Lagos, obtained N6.2billion from First Bank Limited on the pretence that the said sum represented credit facilities applied for and disbursed to Stallion Nigeria Limited, which representation you know to be false.”

 

In the 4th count, they were accused of conspiring to spend the N6.15billion, out of the monies.

According to the Commission, the offences contravened Section 8(a) of Advance Fee Fraud and Other Fraud Related Offences Act 2006 and was punishable under Section 1(3) of the same Act.

Counts 5 reads: “That you, Chief Oba Otudeko, Stephen Olabisi Onasanya, Soji Akintayo and Anchorage Leisure Limited on or about 11th day of December, 2013 in Lagos, procured Honeywell Flour Mills Plc to retain the sum of N1.5 billion, which sum you reasonably ought to have known forms part of proceeds of your unlawful activities to wit: Obtaining by False Pretense and you thereby committed an offence contrary to Section 18(c), 15 (2) (d) of the Money Laundering (Prohibition) Act, 2011 (as amended) and punishable under Section 15(3) of the same Act.”

Meanwhile, Otudeko had reportedly fled Nigeria ahead of his scheduled arraignment on fraud charges.

 

According to TheCable Newspaper, Otudeko’s exit from the country is linked to the mounting legal pressures and financial disputes he is facing.

The newspaper reported that the businessman left the country via one of the land borders.

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Loan controversy: Bisi Onasanya’s lawyer condemns media trial….Judge adjourns case to February 13

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In line with his resolve to defend himself and clear his name, Dr. Bisi Onasanya through his lawyer, Adeyinka Olumide-Fusika, SAN, at a session at the Federal High Court Lagos on Monday, January 20, 2025, demanded the service of proof of evidence and summons.

Onasanya, a chartered accountant and a former Group Managing Director of First Bank is defending himself against a controversial loan that allegedly occurred at First Bank 12 years ago. The retired banker is refuting the allegations alongside three others namely former Chairman of the bank, Chief Oba Otudeko, a former board member of Honeywell, Soji Akintayo, and a firm, Anchorage Leisure Ltd.

At a hearing at the Federal High Court in Lagos on Monday, Fusika condemned the media trial his client had been subjected to, saying he was not formally invited by the EFCC or served a notice of the charge.

He expressed surprise at seeing news stories in major newspapers linking Dr Onasanya to a trial on loan controversy during his time as First Bank Group Managing Director without prior notification.

“My Lord, it is concerning that my client has been unduly exposed to media trial without being formally served. This is a procedural anomaly that undermines his right to a fair hearing and personal dignity,” Olumide-Fusika said.

The prosecuting counsel, Rotimi Oyedepo, denied any involvement by the EFCC in the media coverage of the case.

He stated that the commission had not issued a press statement and suggested that journalists may have obtained information through other means.

“My Lord, we disassociate ourselves from any media reports,” Oyedepo said.

The EFCC also applied for an ex parte motion to issue a bench warrant for the defenders’ arrest and sought permission to serve them through substituted means, alleging they had evaded service.

Olumide-Fusika opposed the motion, arguing that his client had always been available and had not evaded service. Demonstrating his determination to clear his name, the senior lawyer prayed to the court to have the EFCC serve the charge and the proof of evidence in the open court.

“This application is unwarranted and speculative. My client has neither avoided service nor absented himself from this matter. The claims of the prosecution are baseless. Since I am here and my client is ready to go ahead with this case, I ask to be served the charge and the proof of evidence here in the court,” Olumide-Fusika argued.

Justice Chukwujekwu Aneke, who presided over the case, dismissed the EFCC’s motion for substituted service on Onasanya since he has accepted to be served in the open court.

The judge consequently ordered that the EFCC serve Olumide-Fusika the charge and proof of evidence in open court.

The EFCC complied with the directive, and Olumide-Fusika who confirmed the receipt of the document extracted a confirmation from the prosecution counsel that the proof of evidence submitted is exhaustive and there wouldn’t be an addendum. The defence counsel said EFCC’s confirmation should be on record, insisting that his client was ready to defend himself and clear his name.

Justice Aneke adjourned the case to February 13, 2025.

It will be recalled that Onasanya, through his Communication Advisor, Mr Michael Osunnuyi, had earlier dismissed allegations, describing the claims as baseless and an attempt to tarnish Onasanya’s stellar reputation for professionalism, integrity and humaneness.

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