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FG sues Bayelsa for owing N1.9bn electricity debt

By on July 21, 2014
The Federal Government has filed a suit before a Federal High Court in Abuja to recover the over N1.9bn allegedly owed the defunct Power Holding Company of Nigeria by the Bayelsa State Government.
 
The Federal Government, through the Nigeria Electricity Liability Management Limited, said the money covered the state government’s electricity consumption between 2007 and 2011.
 
In the suit marked, FHC/ABJ/CS/241/2014, the NELML said the debt of N1,916,053,016.71 was owed to the Port Harcourt Electricity Distribution Company, an arm of the PHCN, prior to its sale.
The Nigeria Electricity Liability Management Limited therefore sued the state government, the state’s Attorney General, the Central Bank of Nigeria and the Federal Ministry of Finance seeking an order of court compelling the state government to pay the said debt.
 
The suit is before Justice Gabriel Kolawole.
The plaintiff said it was empowered to recover PHCN’s money from its debtors under the Electric Power Sector Reform Act (2005) and the Road map of Power Sector Reform inaugurated by President Goodluck Jonathan in Lagos in August 2010.
 
The NELML was established by the Federal Government to take over the liabilities of the PHCN following its unbundling under the power sector privatisation process.
 
The plaintiff said it resorted to court action because of the Bayelsa Government’s unwillingness to settle the debt despite earlier concessions granted it.
NELML said, in its statement of claim that PHEDC had upon an “extensive reconciliation of the accounts of all its customers,” found that Bayelsa Govt owed about N2.292bn for the period of December 1, 2007 to March 31, 2012 for the electricity supplied it for the running of its activities.
It added that on the completion of the reconciliation exercise between parties it was agreed that the debt be put at N1.916,053.016.17, following which the state’s  Attorney General wrote a letter dated September 6, 2012 seeking a discount of N1b, a proposal the PHEDC refused, but agreed to 20 per cent discount.
The plaintiff stated that the state’s Attorney General again wrote on September 25, 2013 proposing to be allowed to pay N1bn in full liquidation of the agreed debt, which PHEDC also refused, but agreed to accept a reduced amount of N1.2bn.
 
It added that although Bayelsa latter accepted and sought to be allowed to pay the N1.2bn in three installments, it failed, necessitating several other meetings.
 
It therefore claims against the defendants, a declaration that the 1st and 2nd defendants are jointly and severally indebted to the plaintiff in the sum of N1.916,053,016.71 being the unpaid bills for electricity supplied to the 1st defendant from December 1, 2007 to March 31, 2011.
Although Bayelsa and its Attorney General had yet to respond to the suit, the CBN and FMF had  filed separate objections to the suit, challenging the court’s jurisdiction, their inclusion in the case and praying the court to exclude them from the suit.
The CBN argued that the plaintiff had failed to establish any cause of action against it and that by virtue of the provision of Section 251 of the Constitution, the Federal High Court lacked the jurisdiction to entertain the plaintiff’s claims.
The FMF argued that since it was not a juristic person, the court lacked the jurisdiction to entertain the suit against it.
The suit has been adjourned till October 21.
 
[Punch]