We Have Attained 97% Compliance With MD Customers’ Metering --- Alh Haruna Muhammad
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| Alh Haruna Muhammad Head MD Unit |
In the Month of May, 2018, the Company crossed the N2b revenue mark, an unprecedented feat in the history of the Company. Interestingly, Maximum Demand customers contributed almost fifty percent of the collection. It is against this background that we sat with Alhaji Muhammad Haruna, as he is fondly called, the Head, MD Unit to discuss the strategic position of the Unit, challenges facing it and the expectation of the Management.
CCD: The Company hit two billion naira collection last month, what is your take on this important achievement?
AH: Its quite a good development; this is what have been in the Company’s agenda that we should hit the two billion Naira mark all along, we have been trying but we didn’t reach there until last month.
The Company is actually pleased with each and every staff for their contributions and the most important thing however is to sustain the momentum; you know about a year ago, we collected 1.6billion, we applauded ourselves then only for us to dropped to 1.3bilinon and even further nose-dived to 1.2billion. So now that we hit 2billion naira, we should work extra hard to ensure that the 2billion Naira is sustained and we should keep on going forward.
CCD: How much was the contribution of the MD Unit towards the collection of last month?
AH: The figure has not been correctly configured by the collection unit, but I believe we would have contributed close to 1 billion Naira, about 930-950million naira. The MD Unit is the cash cow of the Company.
CCD: How strategically positioned is your unit in ensuring we have a sustainable progress in revenue generation?
AH: We were in Abuja for three days meeting with the MD, he has specifically given us a target, we should ensure 100% billing efficiency of the MD customers, this month, we are targeting a minimum of 1.5million and going forward, we should clock 1.8-2billion naira monthly via billings, we are now looking at each and every MD customer to ensure that all the customers are properly metered, and also ensure no meter is compromised. We are also working closely with Engineering Division to
ensure that the MD customers are given priority in terms of supply and we should also ensure we monitor each customer within the range; all these tasks are being undertaken so that we can be able to hit the target of 2billion naira.
CCD: NERC has out lawed estimated billing of MD Customers, what is the Company’s compliance level with the directive?
AH: We have about 97% of our MD Customers metered; only about 3 or less than 3 % remaining and we are determined to ensure that by the end of this month, customers in MD category are metered and the Management have also instructed that no new customers should be connected without being metered. Now any customer that is coming in will be metered both residential, commercials or the military.
CCD: We have high concentration of Military formation in our franchise area, how is this affecting the performance of your Unit?
AH: You are correct, we have the highest concentration of military formations among the eleven Discos; We have numerous military establishments in Kaduna, Jaji, Zaria, Kachia, Kebbi, Sokoto and even in Zamfara and their average monthly billing is about 300million naira and this payment is always forthcoming. So basically, we have already fall short of 300million from the target given. However, we are working hard to ensure that we get some money from them monthly and we have been engaging them and we will continue to engage them. The Management at higher level are also working towards getting payment from source going forward.
CCD: What is the debt statues of the Federal and State MDAs what efforts are you making to recover this debt?
AH: The military have a close debts portfolio of close to 1.2 billion Naira as at last Month. State like Kebbi is not owing anything, they pay their bills every Month. For Sokoto State, there is an order from the government that they should pay current charges, we are very going to negotiate with Sokoto State on modality for settling the debt. As for Zamfara State that have the highest debt, the Governor has also given order of paying 19million Naira every Month. The MD/CEO is actually working very hard towards ensuring that the State Governments pay their outstanding not only in Zamfara but all the States; last month we had a meeting with Kaduna State Government and it was very fruitful, the Governor promised to pay 300million naira last month which he did and subsequently he will pay 250million every month courtesy of the discussion with the MD/CEO; and the same goes to Kebbi, the MD/CEO had an agreement with the Governor and it is being honored. I believe it is also going to work in Zamfara and Sokoto States. By the time they pay 3-5times, they will have liquidated their debts then we will be working on current charges that is where we have to go over again to ensure that we source for the money that will cover the deficit that may arise after all the debt has been settled.
CCD: Some Industries experts are of the opinion that prepaid MD meters should be install at military and police formations, what is your view?
AH: It’s a very good development even though the Company is actually working towards that. Some vendors came and displayed some meters and the Company is considering bringing them into circuit. However, you know the military can tamper with the meter and they won’t allow you to have access to go and confirm the situation on ground, but if we can get a tamper proof MD prepaid meter, it will go a long way in helping us recover our monthly billings from the military and paramilitary accounts we have. It will be a very good development if it is introduced and it should be done at a shortest possible time, for now we have to live with the devil around us and continue to dialogue and lobby them and get some money from them at least monthly.
CCD: What do you consider the daunting challenge in your unit and how do you want the Management to assist?
AH: Externally, it is the customer’s attitude towards settlement, internally it has to do with proper energy management; we should push the energy where we fill it is needed so that we can recover our money. In March we billed one of we major Customer called Sun glass 15.2million when we did some energy management and created an 11KV feeder dedicated to them two weeks after, we billed them in April 19.8million that is about 4.5 million naira increase within two weeks, I suggest that should be doing the same thing to other industries, we can direct energy to them for 18, 20-22 hours within the 24hours of the day so that they will be able to go on shift production at their own levels, the Company is also in discussion with Northern Noodles Company along Refinery Road, Nigerian breweries and Olam. Nigerian brewery spends more than 200miillion Naira monthly on diesel, so if we can to take 30-40% of that, we will have a lot of money at the end of the Month as per collection.
We also need assistance of better logistics in terms of transportation and Staff; we have 8 Area Offices with only 2-3vehicles; ideally we should have vehicle in each of the Area Offices and areas where we feel we have good customer base like Doka,Makera, Sokoto and Kebbi, we should have 2 representatives their so that we can cover every customer within a short period of time. These are the things we require and definitely with all this things on ground, we will deliver because we are determined.
CCD: Do you have anything to share with us?
AH: The only thing is for the Corporate Communication to actually mobilize the general Staff towards team work; everybody should put in his/her best, we should be honest to ourselves and the Company; we should not allow ourselves to be tempted to compromise the Company’s interest for any personal gain; whatever that is due to the Company should be remitted into the account of the Company; by so doing we will be able to have our monthly collections increased. In all honesty, at the rate the collection is going and the Company’s overhead, we should expect any increase in salary and allowances, but by the time we block all the loopholes and put in our best, we will be able to increase the collections. If we maintain the 2billion Naira, defiantly the Company will increase our numerations.
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