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New revenue formula out 2021, says RMAFC

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Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) has commenced work on the new revenue allocation sharing formula, which will take effect from 2021, the chairman of the commission, Chief Elias Mbam.

He said this on Sunday during an interview at Item Amagu, Ikwo in the Ikwo Local Government Area of Ebonyi State.

He also journalists that the commission had diversified sources of revenue to the Federal Government, adding that attention had been paid to the mineral sector to increase revenue.

“Presently, we are working on new revenue sharing formula. We have started the process and all things being in equal, we expect that the new formula will be out in 2021,” he said.

“We are diversifying the sources of revenue, we have gone into the solid mineral sector. For the first time, the solid mineral sector is contributing to the federation account and we are closing up leakages.

“We are ensuring that revenue leakages are closed up or minimised so that more revenue will be accrued to the federation account.

“The commission is ever determined to use all its constitutional powers to ensure that all revenue accruable to the government is remitted to the federation account and on time,” he said.

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Happening now: Photos: Unveiling of 3 units of Twincustom CX series, African Rolls Royce, in Lagos

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Three Russian firms, eight others bid for Ajaokuta steel company

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Eleven companies are currently bidding for the concession of the Ajaokuta steel company, Minister of Mines and Steel Development, Olamilekan Adegbite, has said.

He said three of the bidders are Russian firms.

Adegbite disclosed this at the presentation of the achievements of his ministry during the 9th edition of President Muhammadu Buhari’s scorecard series,  held in Abuja on Thursday.

The minister said the Buhari government had been able to resolve all contending legal issues with the steel company and was in the concession process.

He also said the major issue with the company was the concession that was done in 2005 by former president Olusegun Obasanjo to Global Steel, which resulted in litigation and a demand of $7 billion by the company.

“One of the major albatross on Ajaokuta was the concession that occurred under former President Olusegun Obasanjo to Messers Global Steel Industries,” he said.

“Things went sour and they took us to court. The court case went on for about 12 years, but thanks to a patriotic Nigerian lawyer in the United Kingdom who handled the case very effectively.

“Global steel came with a demand of $7 billion, but our lawyer was able to puncture holes in their case, and at the end, they had to settle for $496 million.”

According to Adegbite, the judgement was favourable to Nigerians.

There had been issues around the payment of $496 million to Global Steel — years after the firm gave up all claims.

The minister also said the current administration had plans to make Ajaokuta Steel Company functional before the end of 2022, but for the outbreak of the COVID-19 pandemic.

He, however, said that the government was still committed to ensuring that the company was given out through a concession to a competent bidder with technical and financial capacities to optimise its potential.

“We were supposed to make the plant work in 2022. One of the presidential mandates was to resolve all contending issues on Ajaokuta,” he added.

“In 2019, at the Russian-Africa summit in Moscow, President Muhammadu Buhari discussed the idea of resuscitating Ajaokuta with President Vladimir Putin.

“An agreement was reached for Russian engineers to come in for a technical audit by March 2020.

“But the emergence of the first and second waves of COVID-19 stalled the plan.

“We hope that we can give Ajaokuta to a company, not just on a concession basis, but on equity participation.”

Adegbite further said out of the 11 companies bidding, adding that three of the companies were Russian.

“We are talking of companies who intend to bring their own money into Ajaokuta to make sure that it works,” the minister said.

“The plant is still good if we put in the right amount of capital, it will start producing in less than two years.

“Government has employed a transaction adviser who will guide us through the process.”

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Don’t buy meter, transformer, wires, NERC tells electricity consumers

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NERC’s Commissioner-in-charge of Consumers Affairs, Aisha Mahmud

• Insists consumers must sign agreement for refund
Nigerian Electricity Regulatory Commission (NERC), yesterday, in Abuja, said it remains the responsibility of electricity distribution companies to provide meters, transformers, poles, wires and other things needed for electricity supply to consumers.

NERC’s Commissioner-in-charge of Consumers Affairs, Aisha Mahmud, speaking during a three-day NERC/Abuja Electricity Distribution Company (AEDC) Customer Complaint Resolution Meeting, said a lot of consumers in Nigeria are not aware of their right.

“It is not the responsibility of the consumers to buy meters, poles or any assets for the DisCos (distribution companies) because we have already provided for that in the tariff of the utilities.
“But under any circumstances that you have to purchase these items and you cannot wait for the DisCos to make that investment, we have made provision for that under our ‘investment regulation’,” Mahmud said.

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She noted that the commission will continue to educate consumers on their responsibilities and obligations, adding that there’s a regulation, and based on that, if a consumer has to purchase a transformer, it has to be done through an agreement.

She said: “The agreement should contain a dispute resolution clause and all other items that are expected of a standard agreement. What we expect from the DisCos is to use their Internally Generated Revenue to buy those assets or rather use shareholders’ investment or borrow from banks to purchase the assets.”

According to her, it’s NERC’s responsibility to educate customers on their rights and obligations and all they are supposed to know about the electricity market.
Managing Director of AEDC, Adeoye Fadeyibi, said the company will do everything possible to meet the demands of consumers.

Represented by the Head, Regulatory and Government Relation of the AEDC, Olajumoke Delonia, Fadeyibi said the idea of the forum was to address customers’ complaints and commended NERC for the initiative.

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