EXPOSED! New Method Electricity Companies Use To Extort Nigerians UNCOVERED By Rights Group; SEE The Method
A Civil Society Group, Africa Anti Slavery Coalition, AASLAC, has exposed the latest method being deployed by Electricity Distribution Companies, DisCos, to extort Nigerians and fleece them of their hard-earned money.
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The group has therefore approached the National Assembly, urging it to invoke its powers of oversight and organise a Public Hearing in Lagos to save Nigerians from the extortion which is being done through the prepaid metering system.
In a statement by its Convener, Comrade Tony Masha, the group regretted that prepaid metering, which was intended to bring succour to electricity consumers by ensuring that they pay for what they consume, has become a source of intolerable extortion by DisCos.
It said: “The current practice in most parts of Lagos metropolis is for DisCos to lure unsuspecting consumers to fill forms for prepaid meters and once that has been done, bills will begin to accumulate whether the prepaid meters were installed or not.
“Thus, consumers are trapped, through this fraudulent method, into accumulating debts running into hundreds of thousands of Naira for prepaid meters that were never installed let alone connected to the residences of those concerned. This is very unfortunate and must stop.”
According to AASLAC, in one instance under Ikeja Electric in Gbagada, Lagos, the prepaid meters of the flats in a compound were yanked off when the residents had gone to work and businesses and, on inquiry, they were told to pay more than N367,000 for a prepaid meter that was applied for to power the borehole about two years ago but was never installed despite that reports by the landlord to Ikeja Electric to stop raising bills on the meter were treated with contempt.
The group noted that there were cases when two buildings, for example, House 18A and House 18B in a street, the residents were disconnected because one or two occupants in one of the buildings were owing bills.
“A landlord in the Ojota area had his light disconnected in his absence and when he inquired, he was told that a tenant, who is on estimated billing, was owing and he wondered what that has got to do with him.
“In fact, in one pathetic instance, someone who bought a dilapidated building and rebuilt it in Gbagada was ordered to pay about N500,000 on the excuse that the residents of the property before he built his own owed electricity bills. What a travesty of justice,” the group lamented.
AASLAC urged the National Assembly to visit DisCos offices in Lagos under cover and see how citizens are treated like slaves by discourteous officials of electricity companies who see themselves as demi-gods, adding that extortion has intensified as we approach the festive period.
“The good news is that the Senate itself has recognised that the privatisation of the power sector in 2013, was a failure and needs to be revisited.
“As part of the sensitisation, the National Assembly must visit DisCos offices nationwide and listen to the tale of woes by Nigerians who suffer all manner of humiliation, extortion and hostility from officers of these electricity companies,” the group added.
In other news, the League of Northern Democrats, LND, on Thursday listed conditions for supporting President Bola Ahmed Tinubu’s Tax Reform Bills currently under review in the National Assembly.
Senator Ibrahim Shekarau, chairman of LND and former governor of Kano State, on Thursday in Abuja during the presentation of a report by a technical committee set up by the group to assess the controversial Tax Reform Bills, emphasised the importance of addressing concerns raised by the technical committee set up to evaluate the bills.
The committee’s findings highlight socio-cultural and governance issues that, if overlooked, could have severe consequences.
Shekarau underscored the LND’s stance on the reforms as a chance to foster economic stability while tackling broader national challenges.
“The LND views the proposed tax reform bills as an opportunity to advance Nigeria’s economic stability while addressing constitutional, socio-cultural, and governance concerns,” Shekarau stated.
“We urge comprehensive amendments to ensure inclusivity, national cohesion, and equitable resource distribution.”
LND also advised that the Tax Reform Bills should align with constitutional provisions, as well as respect the religious and cultural practices, particularly on inheritance taxation, adding that if properly implemented, the reforms have the potential to transform Nigeria’s economy, unlock opportunities for growth and development.
The league had two weeks ago, set up a technical committee to study the bill and to come out with a position to be advanced by the body.
Picking holes in the bills, the chairman of the committee, Senator Bala Na’Allah, explained that the Tax Administration Bill intends to provide for uniform procedures for a consistent and efficient administration of tax laws in the country in order to facilitate tax compliance and optimise tax revenue collection.
Kicking against some sections of the bills, Sen. Na’Allah pointed out that there is lack of clarity on Section 77.
He expressed concerns on the effectiveness and appropriateness of the corporate governance of state Inland Revenue Service as provided for by sections 82, 84, 87, and 90 of the Tax Administration Bill.
Section 77 of the Tax Administration Bill states that “Notwithstanding any formula that may be prescribed by any other law, the net revenue accruing by virtue of the operation of chapter six of the Nigeria Tax Act shall be distributed” based on 10 percent for the Federal Government; 55 percent to the state governments and the Federal Capital Territory; and 35 percent to the local governments.
He stated that the committee’s analysis of the October 2024 Federal Government allocation showed a disproportionate application of the existing formula for the derivation portion of value added tax (VAT) proceeds.
The committee chairman further disclosed that the distribution of the derivation allocation of October 2024 VAT collection to the 774 local governments in the country showed that all the states belonged to a cluster apart from two, Rivers and Lagos states.
He said: “This development is not unconnected with the interpretation of derivation by the tax authority. These two states host most of the head offices of companies that remit VAT centrally.”
Analysing the sharing of the allocations, Sen. Na’Allah said that the South West with 137 local government areas, Lagos State with only 20 local government areas collected 88.2 per cent of the zonal total, while the remaining 11.8 per cent was shared by the 117 local government areas in the other five states in the zone.
He said: “While in the South-South, Rivers State collected 82.1 per cent and the remaining five states shared the balance of 17.9 per cent of the allocation to the zone.
“Looking at the share of each zone …the South West received the most (this was the sum of N31.27 billion) while the South East zone received the least (this was the sum of N903.28 million).
“Indeed, the allocation to all the 95 local government areas in the South East was less the share of only one local government area in Lagos State that received N915.08 million.
“Of all the states, Imo received the least allocation of N20.57 million for all of its 27 local government areas.”
Also speaking, the former Minister of State for Finance, Dr. Yerima Ngama, said “if the government and successive ones will formulate similar policies that would double or even triple such huge corporations especially in agriculture, animal husbandry, mining, etc., we will build the economy, triple our VAT earnings and lessen the burden on the poor in the country.
“Very importantly also, Northern Nigeria will substantially increase its production capacity and reduce its endemic poverty.”
Meanwhile, the Nigeria Labour Congress, NLC, also on Thursday kicked against the alleged exclusion of labour unions in the formulation of the new tax policy by the Federal Government, urging the National Assembly to halt deliberation on the proposed legislations until wider consultations were made on critical aspects.
It said that workers who are one of the critical stakeholders of any tax regime were not consulted by the initiators of the new tax reform bills, describing the said exclusion as unacceptable and as undermining the principles of tax justice. “If labour is not at the table, it is effectively on the menu,’ it argued.
Organised labour made its position known in a communique issued after its National Executive Council, NEC, meeting held in Owerri, Imo state and signed by the NLC President, Joe Ajaero and General Secretary, Emmanuel Ugboaja.
NLC also described as disturbing a report that Nigerians paid a staggering N2.23 trillion in ransom to kidnappers this year alone, expressing concern over what it described as worsening insecurity in the country.
“The NEC raised alarms over the worsening insecurity in the country, referencing disturbing reports that Nigerians paid a staggering N2.23 trillion in ransom this year alone across 51.8 million recorded crime incidents. Also, 614,937 Nigerians lost their lives while 2,235,954 others were kidnapped within one year.
“This appalling state of insecurity underscores the urgent need for the government to take decisive action to safeguard lives and property, restore public confidence, and ensure the rule of law prevails. Majority of the citizens who either lost their lives or are maimed as a result are workers,” it added.
Additionally, NLC decried the persistent cash scarcity in Nigeria, describing it as an unfortunate and exploitative burden on the already struggling populace.
It said that the situation was unacceptable as its impact on small businesses and the informal economy exacerbates the economic woes facing the citizens.
NLC expressed worry that Nigerians are being forced to forfeit 5 per cent of their funds each time they access cash.
