The Association of Nigerian Electricity Distributors (ANED), the professional body representing Nigeria’s 11 electricity distribution companies (DisCos), has stated that the Sam Ethnam Air Force Base in Ikeja, Lagos, will not be reconnected to the national grid until its outstanding debt of N4.3 billion to Ikeja Electric Plc is settled.
The military base was disconnected last week due to unpaid bills, a situation that has significantly impacted the operations of Ikeja Electric.
Reacting to reports of Air Force personnel allegedly storming Ikeja Electric’s headquarters, vandalizing equipment, and assaulting staff, including journalists, ANED’s Executive Director for Research and Advocacy, Sunday Oduntan, condemned the actions, emphasizing that reconnection would only occur upon full payment of the debt.
“Reconnection is not possible immediately. They have to pay what they owe us,” Oduntan stated.
Meanwhile, Vanguard gathered that discussions are ongoing to facilitate a resolution and potential reconnection of the military base.
Condemning the reported invasion, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, described the military’s actions as unacceptable and detrimental to Nigeria’s investment climate.
“This jungle approach to solving problems is not good. As a nation, we have moved beyond this methodology. The top hierarchy of the Air Force and the military in general should caution their operatives to prevent further embarrassment,” Yusuf stated.
He stressed that there are more civilized and diplomatic means of resolving financial disputes, urging authorities to avoid similar incidents in the future.
Efforts to reach the Chairman of Ikeja Electric, Kola Adesina, were unsuccessful. However, he previously acknowledged the long-standing debt issue, revealing that discussions have been ongoing for over seven years without resolution.
“We are owed a significant amount, about N4 billion. We have engaged in discussions, but payments have not been forthcoming. As a distribution company, we are responsible for collecting and remitting funds into a common account to pay key market players, including gas suppliers, the Transmission Company of Nigeria, and other stakeholders,” Adesina stated.
He further highlighted the financial strain caused by the outstanding debt, noting that it has negatively impacted the company’s financial health.
“We have been carrying this liability on our balance sheet, and it has put us in a precarious position,” he added.
The situation remains unresolved as stakeholders continue negotiations to find a lasting solution.
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