…insists ₦180 million payment only covers a small portion—17.39 percent—of total debt

… “UNILAG was disconnected on August 27, after exhausted negotiations fail to yield resolution” – Lasaki

Oredola Adeola

The Eko Electricity Distribution Company (EKEDC) has clarified its decision to disconnect the University of Lagos (UNILAG) from the power grid, citing an outstanding debt of ₦1,035,197,446.43 owed by the university, despite a recent payment of ₦180 million for July 2024.

According to EKEDC, the ₦180 million payment only covers a small portion—17.39 percent—of the total debt, which now exceeds one billion naira, emphasising that the outstanding amount remains substantial, justifying the disconnection.

Babatunde Lasaki, General Manager, Corporate Communications and Strategy at EKEDC, communicated this in a statement obtained by Advisors Reports.

“UNILAG was disconnected from the power grid on Tuesday, August 27, 2024, due to recurring accumulated outstanding payments and multiple engagements between the UNILAG team and EKEDC,” Lasaki said.

“Disconnection notices were served at different times to the university’s principal staff, including the Vice-Chancellor, Prof. Folasade Ogunsola, Director of Works Engr. Olaniyi, and Head of Technical Department Engr. Ajayi. These engagements were led by EKEDC’s GM, Technical Services, Engr. Femi Olaoye, AGM, Key Customer Group, Mr. Abdulkadir AbduRahman, and the Ijora District Business Manager, Mr. Clement Sanyaolu.”

“To set the record straight, UNILAG’s migration from Band B to Band A tariff followed due process, with adequate engagement and communication regarding the implications.

“The tariff increase reflects the institution’s average 23 hours of supply availability, aligning with Band A criteria.”

“While the university has preferred to remain on Band B, it is important to note that tariff classifications are determined based on supply availability and cannot be altered arbitrarily.

“UNILAG receives power from the grid on two dedicated feeders for their consumption.”

Lasaki further explained that EKEDC values its relationship with UNILAG but, as a distribution company, it must meet its remittance obligations to sustain the sector and its business.

“After exhausting all negotiation options without reaching a satisfactory resolution, the institution was disconnected on August 27, 2024.

“We understand the inconvenience caused by this situation and appeal to the university community for their understanding. EKEDC is committed to providing reliable electricity services, but this is contingent on the timely settlement of bills and adherence to agreed-upon terms,” Lasaki added.

The GM EKEDC’s Corporate Communication therefore emphasised that EKEDC has initiated further discussions with UNILAG’s management to explore feasible solutions, including a phased repayment plan that aligns with the university’s budgetary constraints.

The University of Lagos (UNILAG) management had earlier issued a statement on Wednesday, claimed that the university was disconnected from the power grid on August 27, without any prior warning from EKEDC.

According to the university, its tariff category was recently upgraded from “Band B” to “Band A,” resulting in a substantial increase in monthly electricity bills.

The management disclosed that prior to the adjustment, UNILAG’s electricity expenses ranged between ₦150 million and ₦180 million per month.

They further noted that under the new “Band A” classification, the university’s June bill nearly doubled, soaring to almost ₦300 million—a sharp rise that has significantly strained the institution’s finances.

The institution has therefore expressed its frustration over the blackout that has persisted since Tuesday, despite ongoing discussions with EKEDC.