Sam Amadi: I — not Jonathan — reversed electricity tariff

Sam Amadi, former chairman of the Nigeria Electricity
Regulatory Commission (NERC), says ex-President Goodluck Jonathan
did not order the reversal of electricity tariff in
2014.
In the build-up to the 2015 general, the commission announced an
increase in electricity tariff, but it later suspended the
action.

Speaking at a public lecture in Lagos on Thursday, Babatunde
Fashola, minister of power, works and housing, said the Jonathan
government ordered a reversal of tariff in order to win electoral
votes.

But in a statement issued on Friday, Amadi said he and his
colleagues at NERC took the decision to suspend the action.

He also said Jonathan never dictated policy to the commission,
and that he was determined to ensure the independence of the
regulator.

“I have read some piece of news suggesting that President
Jonathan ordered the reversal of electricity tariff during his
tenure as president. Since I have left office I have avoided issues
about electricity regulation in Nigeria to give our successors the
best opportunity to do better than we did,” he said.

“My understanding of public office that the best a former public
officer should do is to truly step aside and be willing to provide
advice if and when it is needed. In the best tradition of public
service, you don’t obstruct the new administration.

“But I am constrained to restate the truth of what happened for
the purpose of ensuring proper information to enable the present
administration do their best to fix the electricity crisis.
Throughout our five years as commissioners of NERC, there was no
single day that President Jonathan ever dictated or instructed
policy to the commission concerning any issue on electricity
regulation.”

Amadi said Jonathan was a great president to the electricity
sector and that he found him very understanding.

He also said all tariffs issued from 2010 to 2015 did not
require the approval of the former president.

“On the matter of the tariff, the facts are straightforward and
borne out by records. NERC as a regulation has comprehensive
methodology and business rules for regulating tariff. The act,
methodology and business rules put the responsibility on NERC
commissioners who vote democratically for every such decision, just
like the board of governors of the CBN does for monetary policies,”
he explained.

“Every tariff we have issued from 2010 to 2015 did not receive
or require the approval of the president. Only NERC commissioners
approved them.

“I am prepared to take slacks for any intended or unintended
consequences of that decision as the chairman and chief executive
of NERC. I still strongly believe that my reading of effective
regulation confirms that it was a good decision to internalise
efficiency in the distribution segment of the electricity industry.
But President Jonathan played no role at all in that decision. His
ministers did not play any role. It was a bona fide regulatory
decision that may be termed wise or unwise, after the facts. But
should not be used to denigrate President Jonathan or the ministers
of power.

“But for now, take it from the horse’s mouth: Jonathan did not
reverse any tariff. Sam Amadi and his colleagues changed the tariff
through the normal due process and as part of the effective
regulation of the sector.”

Sam Amadi, former chairman of the Nigeria Electricity
Regulatory Commission (NERC), says ex-President Goodluck Jonathan
did not order the reversal of electricity tariff in 2014.

In the build-up to the 2015 general, the commission announced an
increase in electricity tariff, but it later suspended the
action.

Speaking at a public lecture in Lagos on Thursday, Babatunde
Fashola, minister of power, works and housing, said the Jonathan
government ordered a reversal of tariff in order to win electoral
votes.

But in a statement issued on Friday, Amadi said he and his
colleagues at NERC took the decision to suspend the action.

He also said Jonathan never dictated policy to the commission,
and that he was determined to ensure the independence of the
regulator.

“I have read some piece of news suggesting that President
Jonathan ordered the reversal of electricity tariff during his
tenure as president. Since I have left office I have avoided issues
about electricity regulation in Nigeria to give our successors the
best opportunity to do better than we did,” he said.

“My understanding of public office that the best a former public
officer should do is to truly step aside and be willing to provide
advice if and when it is needed. In the best tradition of public
service, you don’t obstruct the new administration.

“But I am constrained to restate the truth of what happened for
the purpose of ensuring proper information to enable the present
administration do their best to fix the electricity crisis.
Throughout our five years as commissioners of NERC, there was no
single day that President Jonathan ever dictated or instructed
policy to the commission concerning any issue on electricity
regulation.”

Amadi said Jonathan was a great president to the electricity
sector and that he found him very understanding.

He also said all tariffs issued from 2010 to 2015 did not
require the approval of the former president.

“On the matter of the tariff, the facts are straightforward and
borne out by records. NERC as a regulation has comprehensive
methodology and business rules for regulating tariff. The act,
methodology and business rules put the responsibility on NERC
commissioners who vote democratically for every such decision, just
like the board of governors of the CBN does for monetary policies,”
he explained.

“Every tariff we have issued from 2010 to 2015 did not receive
or require the approval of the president. Only NERC commissioners
approved them.

“I am prepared to take slacks for any intended or unintended
consequences of that decision as the chairman and chief executive
of NERC. I still strongly believe that my reading of effective
regulation confirms that it was a good decision to internalise
efficiency in the distribution segment of the electricity industry.
But President Jonathan played no role at all in that decision. His
ministers did not play any role. It was a bona fide regulatory
decision that may be termed wise or unwise, after the facts. But
should not be used to denigrate President Jonathan or the ministers
of power.

“But for now, take it from the horse’s mouth: Jonathan did not
reverse any tariff. Sam Amadi and his colleagues changed the tariff
through the normal due process and as part of the effective
regulation of the sector.”