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CBN, NBET Negotiate Fresh N180bn Fiscal Stimulus for Power Sector

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The Nigerian Bulk Electricity Trading Plc (NBET) and Central Bank of Nigeria (CBN) are currently negotiating new financial stimulus worth N180 billion to support electricity operators in Nigeria’s power sector.

The paper gathered from an exclusive interview with the acting Managing Director of NBET, Mr. Waziri Bintube, at the weekend in Abuja that negotiations on the new package had advanced with the CBN favourably disposed to it.

NBET is a government agency responsible for the bulk purchase of electricity from generation companies (Gencos) for resell to distribution companies (Discos). It acts as a financial stabiliser in power trades between the Gencos and Discos.

Bintube, however, said the CBN had in addition to the N213 billion it approved in its Nigerian Electricity Market Stabilisation Facility (NEMSF) for disbursement to operators at a concessionary term, agreed to put another N180 billion into the facility.

He also said NBET had not touched its capitalisation fund, and that while the CBN expects to wrap up its first N213 billion to the market, the new N180 billion would immediately kick in.

“The NBET has a working capital, up to $350 million was given to us under the Euro bond facility and we have that amount in our kitty which we can deploy in exceptional situations. In addition, the government has given us N50 billion from its privatisation proceed on Egbin, and which we have put in our escrow account, the purpose of that is to breach the time difference when the Gencos want their money and when they can be paid.

“In addition, there are some off-the-line supports like the Central Bank’s Nigerian Electricity Market Stabilisation fund that was granted by the CBN to cover obligations in the market from the date of privatisation. That was another form of support to the market.

“We are currently negotiating with the CBN again to come in with a second tranche. They have some amount that they are yet to disburse but even after that, we are looking at getting the board to approve another second tranche on top of the N213 billion that has already been approved. We are looking at about N180 billion,” said Bintube.

Asked if the negotiations have largely being positive, he said: “Yes, we have the assurance of the CBN governor. He is very dedicated to resolving the logjam and ensuring that all the key pillars of the economy work because they are interrelated.”

He added: “If the power plants work, the manufacturers will have lesser problems, the banks will get paid for their products and then there will be less need for foreign products to come in and that reduces the request for foreign exchange. Just imagine that if our refineries are working, we will not need to depend on importation which takes away a lot from us including profits and jobs.”

Bintube also disclosed that NBET in conjunction with United States’ President Barack Obama’s Power Africa Initiative, recently trained key government agencies and officials involved in evaluating, reviewing and regulating power projects in the country on understanding Power Purchase Agreements (PPAs) and Put Call Options Agreements (PCOAs).

He said the training was done to help the agencies and its officials understand the contents and significance of the PPAs and PCOAs considering that they would always have to come across it for review and approvals for investors who are interested in building power plants in Nigeria.

According to him, the ministries of power, finance, justice and Bureau of Public Procurement (BPP), as well as the Nigerian Electricity Regulatory Commission (NERC) and Nigerian National Petroleum Corporation (NNPC) were some of the agencies that were trained on the use of the industry documents.

“Over the past several months, NBET has been negotiating PPAs and PCOAs with numerous gas and solar independent power project developers who are actively developing utility scale projects which will create circa 5,000 megawatts of new generation capacity for the country.

“The NBET PPA-PCOA training was designed to familiarise key government officials with the PPA and PCOA documents which will then be submitted to their respective offices for approval,” Bintube added.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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92.6 Million Nigerians Enrolled For the National Identification Number – NIMC

The Federal Government through the Corporate Affairs Commission (CAC) has stated that NIN will be a compulsory requirement for business registration. 

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The National Identity Management Commission (NIMC) has announced that 92.63 million Nigerians have enrolled for the National Identification Number as of November 2022.

This represents an increase of 1.9 million when compared to the 90.68 million recorded in October.

According to the recent data released by NIMC, more men have been captured than women. The data also revealed that men accounted for about 52.1 million people or 56 percent of the total people captured so far in the NIN database.

On the other hand, women represent 40.5 million or 44 percent of the total enrollment, Investors King learnt.

On a state-to-state basis,  Lagos State recorded the highest enrollment with about 10.3 million. This was followed by Kano State with more than 8 million people.

Other states with substantial enrollments include Kaduna with 5.4 million, Ogun with 3.8 million, Oyo with 3.6 million, FCT with 3.2 million, Katsina with 3.1 million, Rivers with 2.7 million, Delta with 2.4 million, and Bauchi with 2.4 million.

Meanwhile, Bayelsa is presently the state with the lowest enrollments.  A total of 583,323 have so far enrolled in the state. Ebonyi trailed Bayelsa with 744,869 and Ekiti’s record shows 971,712 enrollments. While Cross River, Taraba, Yobe, Enugu, Imo, Akwa Ibom and Zamfara followed with 1 million, 1.3 million, 1.3 million, 1.5 million, Imo 1.5 million, 1.5 million and 1.6 million, respectively.

In another development, the Federal Government through the Corporate Affairs Commission (CAC) has stated that NIN is now a compulsory requirement for business registration like it is with banks.

According to the Registrar of the Corporate Affairs Commission, Garba Abubakar, NIN was adopted because its security can’t be compromised, unlike the National Identity card, passport, and driver’s license, which could easily be cloned.

“If you don’t have a NIN, it means you can’t register your company. The essence is to verify the integrity of the data we are collecting,” Garba noted.

National Identification Number is the unique number created by the Nigerian government to identify Nigerians, curb crimes, deepen infrastructure in cities and generally access all citizens.

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Governors Forum Replies FG, Blames Poverty on Rising Insecurity

The NGF accused the federal government of being unable to tame rising insecurity which has led to the high costs of food.

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The Nigerian Governors Forum (NGF)  has stated that governors could not be blamed for poverty in their respective states. The NGF accused the federal government of being unable to tame rising insecurity which has led to the high costs of food.

Investors King could recall that President Muhammadu Buhari earlier alleged that governors are pocketing funds meant for the development of the local governments. 

Similarly, the Minister of State for Budget and National Planning, Clement Agba, also stated that the 36 governors were responsible for the rising poverty index in the country,

According to the Governors Forum, the rising level of poverty among Nigerians was a consequence of the biting effect of insecurity on commercial and agricultural activities.

A statement released by NGF’s  Director of Media and Public Affairs, AbdulRazaque Bello-Barkindo said “It is important to put on record the progress made by state governors in the administration of their states, which have witnessed tremendous progress in recent times. Governors have undertaken projects where they, in conjunction with their people, deem them fit for purpose.

“This dereliction of duty from the centre is the main reason why people have been unable to engage in regular agrarian activity and commerce. Today, rural areas are insecure, markets are unsafe, travel surety is improbable and life for the common people generally is harsh and brutish.”

Barkindo further accused the minister of deviating from the major issues and passing blames when he and his colleague, the Minister of Finance, Budget and National Planning, Zainab Ahmed, should be implementing policies that can ameliorate the hardship Nigerians were facing. 

Barkindo in the statement added that the primary duty of any government is to ensure the security of lives and property, an area he claimed the Federal Government has failed. 

“But the Federal Government, which is responsible for the security of lives and property, has been unable to fulfil this covenant with the people, thus allowing bandits, insurgents, and kidnappers to turn the country into a killing field, maiming and abducting people, in schools market squares and even on their farmlands,” he said. 

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President Buhari Accuses Governors of Stealing LG Funds

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Muhammadu Buhari

Nigerian President, Muhammadu Buhari has once again accused state governors of stealing monthly allocation due to local government under them.

The president spoke at a parley with members of the Senior Executive Course of the National Institute for Policy and Strategic Studies, Kuru, held at the State House Banquet Hall, Abuja.

Speaking at the event, the president stated that it beats anyone’s imagination how some governors collected money on behalf of council areas in their states, only to remit just half of such allocation to the council chairmen, who would further deplete the remittance by filching it. Investors King learnt. 

 ‘‘I found it necessary to digress after reading my speech and this digression is a result of my personal experience. What they did, this is my personal experience, if the money from the Federation Account to the state is about N100m, N50m will be sent to the chairman, but he will sign that he received N100m. The governor will pocket the balance and share it with whoever he wants to share it with,” the president narrated. 

‘‘This is what’s happening. This is Nigeria. It’s a terrible thing; you cannot say the person who was doing this is not educated. He was a qualified lawyer, he was experienced, yet he participated in this type of corruption.” he queried. 

Furthermore, the president clarified that state governors and local government chairmen should be held responsible for the underdevelopment in the rural areas noting that most of the local governments lack basic amenities. 

Similarly, the National Union of Local Government Employees on Thursday backed the position of the president on the embezzlement and mismanagement of local government funds.

Responding to Buhari’s position, the  President of the Nigeria Union of Local Government Employees (NULGE), Hakeem Ambali, said Buhari was merely stating the obvious.

The NULGE President nevertheless admonished the president to go beyond the statement and ensure governors, especially those in APC to sign the local government autonomy bill into law.  

“He should go beyond that statement. He is the leader of the party, he should ask them to sign the autonomy into law; he is the leader of the governors,’’ he said.

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