Lack of CEOs Stalls Power Agencies’ Budget


Federal Government parastatals and agencies without substantive Chief Executive Officers  cannot access the 2016 budget, it was learnt yesterday .

A source, who spoke on condition of anonymity, said the development has affected the Nigerian Electricity Regulatory Commission (NERC), Rural Electrification Agency (REA) and the Nigerian Bulk Electricity Trading Company (NBET)  that are are operating without substantive CEOs.

Without the budget, the source said, it would be impossible to pay contractors that need money to implement the projects.

The Nation learnt that the Minister of Power, Works and Housing, Babatunde Fashola last month directed Ministries, Department and Agencies (MDAs) to prepare their schedules for the payment of their contractors.

The source said: “The budgets of some MDAs that do not have substantive CEOs have not been released. Without the budget, you cannot make the contractors to move to site because once there is no money, the contractors will be reluctant to move. But once they know that there is money, it gingers them to work.

However, Fashola last month asked MDAs to prepare schedules for payments of contractors.

One  REA contractor lamented that there is an outstanding debt of N7billion owed to the contractors but the government approved only N1.2billion for the debt in this year’s budget.

The contractor said: “We have an outstanding payment of about N7 billion but what they put in the current budget is N1.2 billion. Up till now we have not seen it. They said the budget has been realised but nothing has dropped into the account.”

He said owing to the fact that there is no substantive CEO in  REA, there is also a limit to the action that could be taken as there is currently no board, stressing that some executive decisions are now referred to the Minister and Permanent Secretary.

“REA has no board and there is a limit to the executive power of the acting Managing Director of the agency so he still waits for the Minister or Permanent Secretary to take such decisions,“ the course said.



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