When Oyo state government and IBEC clashed over debts

The unnecessary ego between Oyo state government and the management of Ibadan Electricity Distribution Company (IBEDC) resulted in 24-hour power outage in and across the state as BAYO AGBOOLA reports.
The adage that whenever two elephants fight, it is the grasses that suffer came to light in Oyo state recently over debts between the  state government and the Ibadan Electricity Distribution Company (IBEDC) that subjected innocent people  into over 24 hours of total blackout.


The fight on the debts became more pronounced on Wednesday, February 9 when the state government through a court order sealed off all IBDEC offices in and across Ibadan over what the government put at over N400million unpaid tax, few hours after IBEDC cut the power supply to the state government-owned secretariat over N450million debt.


IBEDC’s grouse
According to IBEDC management in a  statement signed by the chief operating officer, Engr John Ayodele, “Oyo state government till date is owing IBEDC a whopping consumption outstanding of N450 million  for over a period of three years. IBEDC as part of efforts to get the outstanding paid initiated several engagements through correspondences and physical meetings, but all these efforts yielded no result.”


The management of Ibadan Electricity Distribution Company(IBEDC) Plc hereby  informs its esteemed customers of the retaliatory and illegal action of Oyo state government over the issue of its huge indebtedness. Oyo state government on Wednesday 9 February 2022 commenced the sealing of our offices within the state over some suddenly contrived debts labelled revenue bills and personal income without due notification. This issue of revenue bills and personal income arising now is quite suspicious.”


This was contained in a  statement signed by Ayodele. He said the state government is owing IBEDC a whopping consumption outstanding of 450 million naira for over a period of three years. 


Engr Ayodele explained that the company as part of efforts to get the outstanding bill paid initiated several engagements through correspondences and physical meetings, but said all efforts yielded no result, saying, “No business in this country can run successfully with such a huge outstanding.

The power we distribute to customers must be accounted for and paid for; we have no choice but to disconnect the Oyo state secretariat; so, it is worrisome to see that the government has sealed-off our offices with this underhand and arm-twisting tactics, instead of paying the debt owed. This was not done in good faith and it would have damaging effect on the business and service delivery to our customers.”


State government’s grouse
The state government in defending it’s action against all IBEDC offices in Ibadan declared that IBEDC has been owing revenues totalling over N400 million in the last two years and that the government approached the High Court of Justice in Ibadan to seek an order to seal off the premises of IBEDC because the company has been ignoring bills served it by the men of the state Board of Internal Revenue Service for the past two years.


Responding through the state commissioner for information, culture and tourism, Dr Wasiu Olatubosun, the state government gave the break down of IBEDC bills as follows: Harmonised bills N139,440,000.00; Infrastructure bills N122,590,000.00; Tax Audit bills N116,516,111.41; Signage bill  N22,000,000.00, all amounting to N400,546,111.41 (four hundred million, five hundred and forty-six thousand, one hundred and eleven naira, forty-one kobo.


“The Oyo State government has debunked the news making the rounds that the state sealed off the Ibadan Electricity Distribution Company (IBEDC) offices in Ibadan because the company disconnected the government office,” saying such report was not only false but misleading. “It is important for everyone to remember that it is the duty of all, individuals and businesses to pay taxes and levies. Without these payments, the government cannot provide basic necessities and perform necessary functions. 


“Therefore, IBEDC like any other business interest, should do the needful and meet its revenue obligations.”


According to Dr Olatubosun, the IBEDC’s indifference towards the settlement of the bill necessitated the locking and sealing of its major offices in the state as the company has never in any of their communication with the government revenue agency, objected to the claim of the figure owed and that documents from the state Board of Internal Revenue Services have shown that bills were served on IBEDC in the past two years (2020-2021) which they have ignored. 


“IBEDC never objected to owing accumulated bills, which led the state to seek a legal solution and the High Court of Justice gave the government the warrant to seal off their premises in order to enforce payment, as provided for in Section 45 (3&4) of the Revenue Administration Law of Oyo state.
“This is the stand of the government and we seek the understanding of the people not to be misled by those who trade in falsehood.” 


Political undertone
As usual, the opposition All Progressives Congress (APC) in the state on its part blamed the 24-hour total blackout on the Governor Seyi Makinde-led administration and the subsequent handling of the situation which according to the party degenerated into an untold hardship on innocent people of the state, saying there was no basis for the state government to have contemplated sealing off any IBEDC office in the first instance thereby allowing the entire state to be thrown into total darkness as a result of  the erroneous closure of the office of the Ibadan Electricity Distribution Company (IBDEC) on that particular Wednesday.


APC in the reaction by the state Chairman of the party, Ajiboye Isaac Omodewu stressed that it was unfortunate that the state government could hurriedly resolve into closing the IBDEC office instead of finding a means to settle over N450 million bills his administration is owing the distribution company lamenting that the development whereby IBDEC management claimed that the government owed it N450 electricity bill in the last three years is an indication of the poor administrative efficiency of Governor Makinde and the Peoples Democratic Party (PDP)-led government.


The party maintained that,  “In the last 24 hours, major businesses in Oyo have been paralysed, hospitals in comatose and artisans groaning due to lack of electricity.” These, according to him, has escalated the rate of crimes where hoodlums and men of underworld took advantage of the situation to inflict pains and series of robberies on innocent citizens.


The truce
However after over 24 hours of ego display by the two parties in the unnecessary face off, the state government and IBEDC a day later resolved their  differences at a meeting held at the state secretariat in Agodi, Ibadan with both expressing their readiness to work together to find an amicable resolution of all issues surrounding the recent sealing of IBEDC offices.
In a statement issued after the meeting jointly signed by the state commissioner for energy & mineral resources, Barr Temilolu Seun Ashamu and the chief operating officer of the IBEDC, Engr  Ayodele, it assured members of the public about the restoration of electricity as soon as possible and that the two parties would continue in amicable resolution of the issue and work together to make electricity meters available to all residents of the state.

 “This is to notify the general public that the Oyo state government and IBEDC have resolved and agreed to work together in the interest of the public.The general public is hereby assured of the restoration of electricity supply as soon as possible, while the two parties shall continue amicable resolution of the issue in the interest of the public, including working together to make electricity meters available to residents of the state.”