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Crisis hits Eko Disco as chairman and directors disagree on Dr. Tinuade Sanda’s sacking

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Members of the board of the Eko Electricity Distribution Company are at loggerheads over the sack of the company’s Managing Director/Chief Executive Officer, Dr Tinuade Sanda.

We reported that the firm replaced Sanda with Mrs Rekhiat Momoh, who was said to have taken over on Tuesday.

It was gathered that Sanda’s sack was communicated through a letter signed by the EKEDC Chairman, Dere Otubu, on March 25.

According to Otubu, the decision to relieve Sanda of her duties followed a directive from the Nigeria Electricity Regulatory Commission.

“We have received a directive from NERC stating that all staff working for the utility must be employed directly by the utility, bound by applicable service conditions that are applicable to the employees of the utility, and paid through the utility’s payroll.

“The Disco is obligated to comply with these directives due to the powers of NERC as stipulated in the Electricity Act 2023. In compliance with the aforementioned directive, all seconded staff from WPG Ltd are being released by Eko Electricity Distribution Plc and returned to WPG Ltd.

“Accordingly, you are hereby relieved of your role, office, and position at Eko Electricity Distribution Plc effectively immediately, and returned to your employer, WPG Ltd,” Otubu had said.

We reported earlier that some senior staff members of the Eko DisCo were recently accused of ghost worker recruitment, fraud and negligence; a claim the firm said was unfounded.

Reacting to the allegation, NERC ordered thorough investigations, while directing that all existing WPG secondees be returned to their original employer.

While announcing the change of leadership, the DisCo said, “We wish to inform the general public that Mrs Rekhiat Momoh has on 26th March 2024 assumed the role of Acting CEO of Eko Disco.

“This follows the redeployment of our erstwhile MD/CEO Mrs Tinuade Sanda back to WPG Ltd, the core investor who seconded her to Eko Disco.

“We have great confidence in her ability to perform this role effectively and take the company to greater heights,” the EKEDC said.

However, in a rebuttal on Wednesday, a Director and Chairman of the Legal & Regulatory Committee, Mr Babor Egeregor, disagreed with the chairman over the sack of Sanda.

He said the NERC did not order the removal of any staff either seconded to or hired by EKEDC, except those connected to the alleged fraud and negligence.

“It has come to my notice that by a letter dated 26th of March 2024, the Chairman of EKEDC, Mr Dere Otubu, purportedly terminated the Contract of Employment of Dr Tinuade Sanda, the MD/CEO of EKEDC, allegedly in compliance with orders/directives issued by the NERC.

“The said order of the NERC, herein displayed, are unambiguous, incapable of, and unyielding to plural interpretations. There was nowhere in the order where NERC requested the removal of any staff either seconded to or hired by EKEDC, except those connected to the alleged fraud and negligence i.e., Wola Joseph Condotti, Sheri Adegbenro, and Aik Alenkhe,” he said.

According to Egregor, NERC’s directives were issued to compel the board of EKEDC, following picketing by the union and unrelenting staff protests, “to act appropriately in the face of the determined position of a majority of the board members to cover up the alleged use of ghost workers together with the alleged fraud and protect Wola Joseph Condotti, especially”.

“Mr Dere Otubu’s letter, therefore, was done in bad faith and in vengeful revenge against the MD/CEO for escalating the alleged fraud and issuing queries against one of his protégés, whom he has desperately sworn to protect by all means.

“Rather than comply with the orders of NERC, a recourse to subterfuge was hatched with the purported termination. There are no doubts about a deliberate agenda and unconcealed mischief to misread the orders of the NERC to malign Dr Sanda’s reputation for daring to escalate and issue queries to Wola Joseph Condotti for alleged fraud through the use of ghost workers for three years, and continuous payment of salaries to exited staff despite personally receiving their resignation letters,” Egregor stated.

He added that similar queries were issued to the Chief Audit and Compliance Officer, Sheri Adegbenro, and the Chief Human Resources Officers, Aik Alenkhe, “for their failure and gross negligence to audit and detect fraudulent payments on payroll for over three years”.

On the appointment of Momoh as the Acting MD/CEO, Egregor said, “The board of EKEDC, on which I sit, has neither met nor decided on the purported appointment of Mrs Rekiah Momoh as Acting MD/CEO, except Mr Otubu and his close circle of colleagues have transformed themselves into ‘the board’.

“I and all well-meaning members of the EKEDC board, I believe, should vehemently distance themselves from this contrivance.

“The board is not a one-man show, and matters are to be collectively deliberated on and approved by Board members. Mrs Momoh is the Chief Commercial Officer of EKEDC and remains so.”

Amid the allegations of fraud, the director took pride in saying that the EKEDC was known for due process and legality, adding that anything that would erode the commitment to due process and corporate governance would be resisted.

“Therefore, let it be known that Dr Tinuade Sanda remains the MD/CEO of Eko Electricity Distribution Company and has since her assumption of office as the MD/CEO, turned EKEDC around for good, with very great milestones and achievements which every sector player recognises.

“She made EKEDC the number one distribution company in Nigeria. The investors, board, and management of EKEDC believe firmly in her leadership and look forward to many more record-setting and breaking moments,” he submitted.

Contacted, the EKEDC spokesperson, Babatunde Lasaki, told our correspondent that Sanda was not sacked but only asked to step aside “until the realignment of the structural management process is completed”.

According to Lasaki, Momoh was appointed to avoid a vacuum.

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Mass layoff: Disengaged staff members sue CBN, demand N30bn compensation

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Former staff members of the Central Bank of Nigeria (CBN) who were dismissed in a mass layoff last year, have sued the apex bank.

In a court document seen by TheCable on Monday, the workers alleged that the CBN violated internal policies, Nigerian labour laws, and their contractual rights.

The claimants, represented by Stephen Gana and 32 others, filed a class action lawsuit at the national industrial court of Nigeria (NICN), Abuja.

They said their termination process, carried out through letters, titled, ‘Reorganizational and Human Capital Restructuring’, and dated April 5, 2024, violated both the CBN human resources policies and procedures manual (HRPPM) and Section 36 of the Nigerian constitution.

The claimants said the process lacked the necessary consultation and fair hearing mandated by law.

The originating summons, filed on July 4, 2024, under the NICN Civil Procedure Rules 2017, raised several questions for the court to consider, including whether the claimants were denied their constitutional right to a fair hearing before and after their appointments were terminated.

The workers also claimed that the termination letters, issued on the basis of “restructuring,” were arbitrary, illegal, and unconstitutional.

Insisting that they continue to work for the apex bank, the claimants are seeking a court ruling that their dismissals are “void and useless”.

Additionally, they sought a restraining order to prevent the CBN from firing them without following the proper procedures, immediate reinstatement, and payment of salaries and benefits from the date of termination.

The court filing references Article 16.4.1 of the HRPPM, which mandates consultation with the joint consultative council (JCC) and adherence to fair procedures before employment actions adversely affect staff.

The claimants said the provision was flagrantly disregarded, as they were given just three days to vacate their positions and hand over official property.

They are also seeking N30 billion in general damages for psychological distress, hardship, and reputational harm caused by the dismissal; and an additional N500 million as the cost of the suit.

COURT ENCOURAGES AMICABLE RESOLUTION

In another document dated November 20, 2024, the court called for an amicable resolution of the matter.

Gana and their counsel represented the claimants while Inam Wilson alongside seven other lawyers represented the CBN (the defendant).

In the document, Obaseki Osaghae, the presiding judge of the industrial court, acknowledged the defendant’s preliminary objection, filed on November 4, 2024, challenging the suit’s admissibility.

The claimants responded with a counter-affidavit, which their counsel confirmed had been served.

In response, the judge encouraged both parties to explore a settlement under Section 20 of the National Industrial Court Act (NICA) of 2006.

“It is my view that parties should attempt an amicable resolution of this dispute,” Osaghae said.

The matter was, therefore adjourned to January 29 for the hearing of the preliminary objection or to review the progress of any settlement discussions.

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Exit of 1,000 staff from CBN was 100% voluntary, says Cardoso

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Tinubu did not ask Cardoso to resign, says presidency

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), said the 1,000 staff who left the bank were not forced to leave.

Cardoso spoke on Friday at the resumed house of representatives investigative hearing on the disengagement of the 1,000 workers by CBN.

On December 4, 2024, the apex bank said its early exit package (EEP) was entirely voluntary and without any negative repercussions for eligible staff.

CBN’s statement followed reports that 1,000 staff were sacked from the apex bank.

Reacting to the development, the house of representatives asked the CBN to suspend the “planned” retirement of 1,000 staff.

The lower chamber had also set up an ad hoc committee to investigate the “process and legality” of the exercise.

However, on Friday at the resumption of the investigative hearing, the CBN governor said the 1,000 members of staff were not forced to quit.

Cardoso, who was represented by Bala Bello, CBN’s deputy director of corporate service, also said the early exit programme, the restructuring and reorganisation was to optimise the bank for enhanced efficiency.

“They are basically ways and means through which the performance of an organisation is optimised by putting, ensuring that round pegs are put in right holes,” Cardoso said.

“The manpower requirement of the bank is actually met.

“I’m very happy to mention, Mr. Chairman and members of the committee, that the early exit program of the central bank is 100 percent voluntary.

“It’s not mandatory. Nobody has been asked to leave, and nobody has been forced to leave. It’s a completely voluntary programme that has been put in place.

“I believe several organisations across the world, and even within this country, both in the private sector and the public sector, are undertaking similar exercises. So nobody has been asked to leave. With a lot of humility, I will tell you that this same program that is taking place is not at the instance of the bank.”

‘CBN FACED WITH SEVERAL CHALLENGES, INCLUDING LACK OF CAREER GROWTH’

Cardoso said CBN had been faced with several challenges.

“In the past, you have had cases of stagnation and lack of career progression. I mean, in an organisation, you’ve got a pyramid where from each level to the next level, you know, the gap keeps narrowing. If not, you are going to have a quasi-organisation, inverted pyramid,” he said.

“There are several instances in which similar exercise took place in the central bank, which has happened several times. This is not the first time. It’s not the second time. It’s not the third time. It has happened several times.

“You’ve had instances in which people at the top request that, look, it’s going to take me X number of years to actually aspire to become a director in an organisation. But right now, there’s no vacancy. And the person sitting next to me probably has eight years to go. Meanwhile, I have seven.

“So there’s no career growth. And a lot of opportunities are out there. For example, among the people that have left, there are, like, three or four people who are going to set up a bank.

“The approach that we told them, literally, anything you want to do, if you need the support of the central bank, you are done. So the popular demand then was at the top, people that are stagnated, people that don’t have any career progression any longer, they have reached their peak, and they are willing to go and take other risks before they get to an age where they become scared to take risks.

“You know, those programmes are actually put in place to ensure that those people are given an opportunity to actually exit, go and start other things with their lives.

“But in this particular case, based on popular request, and I came with the Union Leader of the bank, the staff requested that in this case, similar opportunity should be extended to other categories of staff.

“In the entire period that similar exercise has taken place, it’s only people within a certain cadre, within the director cadre. The deputy director and directors who feel they want to go and start some other things, and assistant directors are given.

“But for the first time in the over 60 years history of the bank, the early exit program is extended to everybody who is actually willing to take it. And this came at the instance of the staff. So it’s not mandatory, it’s not compulsory, there’s no coercion, there’s no forceful exit, and there’s no intimidation for anybody to take it.

“In fact, when this same thing was approved by the bank, and it was open, the number of staff that actually came forward to take it was even very amazing. Like I told you, there are some other people that are even thinking of going to start with their own bank. Those who want to take it took it, and those who don’t want to take it are still in the bank.”

Usman Kumo, chairman of the ad-hoc committee, said the investigation will be fair to all the parties involved.

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Telcos want 100% tariff increase to address rising costs, says MTN CEO

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Karl Toriola, chief executive officer (CEO) of MTN Nigeria, says telecommunication companies (telcos) in the country want a 100 percent increase in tariffs.

On April 25, 2024, telcos said their services were overdue for price increments as they have not raised rates in the last 11 years.

Speaking on the business segment of Channels Television’s Sunrise Daily on Friday, Toriola said the hike is necessary to address the escalating operational costs caused by inflation, and naira devaluation.

“We at MTN believe we need tariff adjustment of about 100 percent, I think the industry is pretty much aligned because we are all experiencing the same headwinds,” the CEO said.

“Now, the government is very sensitive to squeeze consumers’ wallets with the pressures that have come from inflation and currency devaluation on consumers.

“So, I am not sure they will give us 100 percent, but I am optimistic they will give us something substantial and maybe progressively over the course of the year we can have smaller adjustments that will help us to get back to where we need to be.”

He pointed out that while sectors like aviation and power have adjusted their tariffs to cope with rising costs, the telecommunications industry has yet to do so.

According to Toriola, global telecommunications industry statistics indicate Nigeria likely has the second or third lowest tariffs worldwide for both data and voice services.

‘TARIFF ADJUSTMENT CRITICAL TO MAINTAIN QUALITY SERVICE’

The proposed tariff adjustment, Toriola said, would not only ensure the sustainability of the telecoms industry but also enable companies to maintain and improve the quality of their services.

“What the tariff allows us to do is to continue to invest, continue to build capacity, build resilience, put in additional generators, authentic power supply system to give you stable and high-quality networks,” he said.

“So, it addresses sustainability and also enables the regulators to hold the big stick on the issue of quality of service and allows us consequently to invest in giving the quality of service Nigerians deserve.”

Toriola described 2024 as a “torrid year” for Nigeria’s telecommunications industry, citing the impacts of soaring inflation and the government’s devaluation of the naira.

He commended policymakers for taking steps aimed at ensuring the long-term sustainability of the sector.

Responding to concerns about potential service disruptions if the tariff increase is not approved, Toriola assured Nigerians that MTN and other network providers remain committed to keeping their networks operational.

“What I try to do is paint a realistic picture without being alarmist. The truth is that if you have any organisation that is spending 160 percent of what they earn in revenue, effectively at some point that organisation is going to shut down,” he said.

“So we are always going to act responsibly. We will use all our resources. We are keeping our networks up. We are not shutting down our networks at this point in time and we will continue to do so.”

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Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.

She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others

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