Obafemi Hamzat and the Trail of ‘Government Money’

When Deputy Governor of Lagos State, Obafemi Hamzat, recently addressed issues concerning the power sector, I pondered over how many Nigerians might have paid attention. Specifically, I was curious whether those directly involved took notice of what he had to say. During his speech at an event centered around electricity production and delivery within Lagos, Hamzat highlighted various difficulties plaguing the industry. Among the attendees were representatives from both the Rural Electrification Agency and the Lagos State government.

Hamzat elaborated, “The individuals who are struggling to make ends meet share one thing: they lack power. Power is what they do not possess. Billing issues are also part of their problems. Actually, I can personally attest to this.”

Last month, at my residence or rather the one where I reside, our utility bill amounted to ₦2.7 million. However, this month, Eko DisCo issued us with a new bill totaling an astounding ₦29 million. Consequently, I forwarded it to the Minister responsible for energy matters. The situation seems outrageous. To address these issues, I had acquired a meter hoping to eliminate estimated bills. Although I purchased the device, converting it into use has proven challenging. In a neighborhood known as Coker Aguda within Surulere, locals approached me expressing their concerns, which led me to advise them not to panic over such matters. For instance, someone pays around ₦2 million annually just for his rental costs alone; yet, he received an electric bill amounting to ₦2.8 million—a figure higher than what he spends yearly on accommodation! These are some of the problems we face today due to inaccurate estimations.

I quoted Hamzat at some length because, I judge, paraphrasing him wouldn’t convey the very energy in what he said. “Our people are suffering because of estimated billing.” That can only come from a public official who feels strongly about the difficulties people are experiencing. You don’t hear public officials talk like that every day. On a normal note, Hamzat is a man of considerable energy, as could be seen in every public comment he makes. I don’t even mean physical energy; I mean Hamzat’s heart is in what he says. He says what he believes in. This always comes across. No hiding it. Now, why did I take note of what Hamzat said? One reason was that in recent months, I interrogated several issues related to the power sector on this page.

I highlighted several issues that consumers encountered, an issue apparently ignored by those who should be addressing them. Authorities often discuss various aspects of the industry yet tend to sidestep consumer struggles. Nevertheless, we see the deputy governor of Nigeria’s most dynamic state intervening on behalf of consumers. Recently, I haven’t come across a public figure speaking as passionately as Hamzat has recently concerning the daily hardships caused by this sector for Nigerians. Consider his initiative to prevent the Lagos State Government from losing funds due to arbitrarily calculated utility charges—charges he personally does not have to cover at his official residence. Many officials residing in government properties remain silent on such thefts because it seems like “public” rather than personal loss. But Hamzat views public resource management very differently.

What Hamzat brought up made me recall a buddy who launched his enterprise well before graduating college. This pal supplied goods to businesses initially. Later, he moved into securing contracts with the government. During that period, we occasionally crossed paths when I visited locations where he renovated various governmental buildings. Once after some time had passed, I queried whether he was still working under contract for the government. His response was negative. Puzzled, I asked why. He explained that government officials forced him to accept payments based on inflated figures, pocketing most of the funds themselves. According to him, these officials were stealing resources intended for citizens, so he decided against exploiting his fellow countrymen. Consequently, he shifted towards different commercial ventures. Among how many Nigerians does such thinking prevail? And among how many Nigerian civil servants can you find individuals dedicated enough to prevent embezzlement as exemplified by Hamzat’s case? Charging 29 million naira for power usage this month, which last month cost merely 2.7 million naira, clearly demonstrated outright theft of state finances.

Inextricably linked to the issues raised by Hamzat is the subpar performance within the power sector, a topic widely discussed among stakeholders, including manufacturers. As an example, Dr. Mansan Ogoro, Director-General of the Manufacturers Association of Nigeria (MAN), stated that companies invested ₦1.11 trillion in alternate energy solutions during 2024 because of ongoing problems with consistent power delivery. It’s worth noting that these expenses represent a significant increase—up 42.3 percent—from the previous total of ₦781.68 billion documented in 2023. In detail, spending reached ₦404.80 billion in H1 2024 before jumping dramatically to ₦708.07 billion in H2—a rise of approximately 75%. The root cause was identified as insufficient and unstable electrical supplies leading to inflated operational costs.
Despite some improvement in daily power availability—the average rising from 11.4 hours in Q1-2Q 2024 to 15.2 hours in Q3-Q4—it came at a steep price: tariff hikes exceeding double digits hit Band A customers particularly hard, substantially boosting overall production expenditures. This situation echoed Hamzat’s observations but targeted those without involvement in manufacturing processes, highlighting how escalating rates disproportionately affected everyday citizens lacking business profits altogether.

On the contrary, even with the underperformance of the sector, the Federal Government disclosed that they owe more than NGN 4 trillion combined to both power generating firms and distributing entities. Specifically, this includes over NGN 2 trillion owed to Generation Companies (GenCos) and approximately NGN 1.97 trillion related to unclaimed subsidies from 2024. Additionally, Distribution Companies (DisCos) are due NGN 450 billion for energy subsidies incurred during 2024. However, a critical inquiry arises: While people criticize excessive rates, were the methods employed to quantify these debts equitable according to the government’s claims? Alternatively, could these obligations be akin to what occurred at Hamzat’s official home where charges surged unexpectedly—from NGN 2.7 million one month to NGN 29 million the next? This matter holds significant weight since certain state-affiliated organizations have warned against estimative billing practices directed towards their establishments.

A few years back, at Ahmadu Bello University in Zaria, there was an incident during the tenure of Vice-Chancellor Professor Ibrahim Garba, who was known for his transparency and persistence. During that period, Garba expressed significant concern over a demand from a Distribution Company (DisCo) asking ABU to consistently pay more than ₦80 million. He insisted that payments must adhere to specific criteria rather than being based on estimates. He refused to allocate the university’s limited funds without proper verification. It wasn’t until this matter was settled according to his terms that he relented.
So once again, how often do individuals holding public office manage governmental finances as scrupulously as him? Many simply accept the practice of estimated billing since they view it as part of dealing with state funds, even though it leads to unnecessary losses.

Along with the difficulties faced within the power sector, there is also tension between the Federal Competition and Consumer Protection Commission (FCCPC) and Distribution Companies (DisCos). At a recent event held in Ota, Ogun State, the FCCPC instructed the Ibadan DisCo to return all monies paid by customers who purchased transformers and similar equipment. According to the regulatory authority, these purchases should not have been made by consumers; thus, they demand reimbursement from the DISCOs. Instead of acknowledging their obligation to reimburse customers, however, the head of the Ibadan DisCo based in Ogun State accused consumers of acquiring transformers independently without informing the company.

He mentioned that customers should notify the Nigerian Electricity Regulatory Commission of their plans to buy transformers and other necessary equipment for local electricity distribution before proceeding with the purchases. However, the FCCPC opposed this view, stating that customers do not have to acquire these materials nor report such intentions to anyone. This situation creates uncertainty within the power industry where consumers find themselves ensnared. Previously, Hamzantouched upon this issue, highlighting the necessity to lessen the strain the sector imposes on Nigerians. He merits recognition from everyone since this field seems dedicated solely to exploiting vulnerable citizens and even government funds to sustain its own ineffectiveness.

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