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54% of Electricity Consumers Have no Meters – Sahara Group

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Rotimi Onanuga

A total of 2.8 million electricity consumers in Nigeria have no prepaid meters, the Business Leader  (Distribution), Sahara Group, the firm with majority stakes in Ikeja Electricity Distribution Company, Mr. Rotimi Onanuga, has said.

The figure represents about 54.15 per cent of 5, 172, 979, the total number of power consumers in the country.

Onanuga, who spoke at the 2016 Huawei Connect conference in Shanghai, China, also said manufacturing and trade enterprises as well as private homes spent an average of N3.5tn (about $21.9bn) annually on diesel and petrol for power generation.

He added that the huge amount was due to the unstable power supply in the country.

He said that the IKEDC had been able to distribute 61,000 meters within its area of coverage, but stated that the target was to distribute at least 300,000 meters on or before April 2017.

Onanuga listed some challenges facing power generation and the quick deployment meters to include high-line loss rate and serious electricity theft.

“The line loss rate can reach up to 40 per cent, which is much higher than that of European and American countries, pegged at eight per cent.

“Twenty per cent of consumers committed electricity theft and difficulties exist in supervision and regulation,” he said.

He expressed regret about the energy crisis in Nigeria “given that it is the most populous country in Africa, boasting a population of 173 million, which accounts for 16 per cent of the total population of Africa.”

He said, “Despite rich energy reserves, the enactment of the Power Reform Act, and continual government investments, Nigeria’s power supply still faces serious challenges with the fast development of the social economy.

“As the largest economy in Africa, Nigeria vigorously develops its infrastructures and invests primarily in four fields: energy generation, power transmission, power distribution, and renewable energy.

“Yet due to the unstable power supply, manufacturing enterprises, trade enterprises and common families spend an annual average of N3.5tn to purchase diesel and gasoline for power generation.”

The Sahara Group business leader also listed the difficulties in electricity fee collection as another challenge being faced by the IKEDC, saying that the payment period was often as long as three to four months, thereby delaying capital withdrawal.

Meanwhile, the Sahara Group said that it had contracted Huawei Technologies for its Internet of Things solution, which would aid the IKEDC to improve its performance in area of power supply and metering.

Onanuga said, “$1.4m has been paid to Huawei, spanning over a period of over two years, from January 2015 to April 2017, to enable it to set up its IoT solution in solving our power problems.”

The Sahara Group boss explained that the Ikeja Electric was already deploying the Huawei AMI Solution, “which provides a complete set of components, including smart meters, concentrators (Huawei IoT gateway AR530 series), and an electricity operation and management system.”

The Rotating Chief Executive Officer, Huawei Technologies, Eric Xu, said that infrastructure in Africa was less developed, while Information Technology was still in its rudimentary level.

He said, “Africa needs new operating model to provide modern services for its populace.”

According to him, Huawei will provide better solutions to Africa, especially to governments that will help in the transformation of the continent.

       

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Markets

Global Markets Near Record Peaks and Will Get Stronger: deVere CEO

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Stocks

As the FTSE 100 hits 7,000 points for the first time since the Covid pandemic, global stock markets are poised to “get even stronger”, says the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The observation from Nigel Green, the chief executive and founder of deVere Group, comes as London’s index jumped over the important threshold in early trading in London, gaining over 0.5% to 7024 points.

Mr Green notes: “London’s blue-chip index is up 40% since the worst lows of the pandemic.

“This landmark moment represents the wider optimistic sentiment gripping global markets which are near record peaks.

“We can expect global stock markets to get even stronger as investors look to seize the opportunities from economies reopening.

“They are looking towards economies rebounding in a post-pandemic era due to the monetary and fiscal stimulus, pent-up cash and demand, and strong corporate earnings.

“The current ultra-low interest rate environment and the under-performance of bonds will also act as a catalyst for stock markets.”

However, the CEO’s bullish comments also come with a warning.

“I would urge investors to proceed with caution as there are some headwinds on the horizon, including relations between the U.S. and China, the world’s two largest economies, which could be coming to a tipping point in coming weeks.

“As such, in order to capitalise on the opportunities and mitigate risks, investors must ensure proper portfolio diversification.”

Mr Green concludes: “A variety of factors are going to drive global stock markets. Investors will not want to miss out and should work with a good fund manager to judiciously top-up their portfolios.”

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Markets

Refinitiv Expands Economic Data Coverage Across Africa

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Building on its commitment to drive positive change through its data and insights, Refinitiv today announced the expansion of its economic data coverage of Africa. The new data set allows investment managers, central bankers, economists, and research teams to use Refinitiv Datasteam analytical data for detailed exploration of economic relationships and investment opportunities among data series covering the African continent.

Securing reliable, detailed, timely, locally sourced content has not been easy for economists who have in the past had to use international sources which often can take many months to update and opportunities to monitor the market can be missed. Because Africa is a diverse continent, economists and strategists need more timely access to country-specific data via national sources to create tailored business, policy, trading and investment strategies to meet specific goals.

Africa continues to develop critical infrastructure, telecommunications, digital technology and access to financial services for its 1.3bn people. The World Bank estimates that over 50% of African inhabitants will be under 25 by 2050. This presents substantial opportunities for investors who can spot important trends and make informed decisions based on robust and timely economic data.

Stuart Brown, Group Head of Enterprise Data Solutions, Refinitiv, said: “Africa’s growing, dynamic and fast evolving economies makes it a focal point for financial markets today and in the coming decades.  As part of LSEG’s commitment to empowering the global markets with accurate and timely data, we are excited about making these unique datasets available via the Refinitiv Data Platform. Our economic data coverage of Africa will provide our customers with deeper and broader inputs for macroeconomic analyses and enable more effective investment strategies and economic research.”

Refinitiv Africa economic data coverage:

  • Africa economics content comprises around 500,000 nationally sourced time series data covering 54 African nations
  • Content is sourced from national statistical offices, central banks and other key national institutions
  • The full breadth of economics categories in Datastream including national accounts, money and finance, prices, surveys, labor market, consumer, industry, government and external sectors
  • International sources including OECD, World Bank, IMF, African Development Bank, Oxford Economics & more provide comparable data & forecasts across the continent

Refinitiv® Datastream® has global macroeconomics coverage to analyze virtually any macro environment, and better understand economic cycles to uncover trends and forecast market conditions. With over 14.2 million economic times series map trends, customers can validate ideas and identify opportunities using Refinitiv Datastream. Access its powerful charting tools, 9,000 pre-built chart templates and chart studies for commonly used valuation, performance, and technical and fundamental analysis.

 Refinitiv continually grows available data – the China expansion in 2019 covered a unique combination of economic and financial indicators. Refinitiv plans to expand Southeast Asia covering Thailand, Vietnam, Philippines and Malaysia with delivery expected in 2021. This ensures that Refinitiv will have much needed emerging market economic content.

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Oil Rises on Drawdown in U.S. Oil Stocks, OPEC Demand Outlook

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Oil 1

Oil prices rose in early trade on Wednesday, adding to overnight gains, after industry data showed U.S. oil inventories declined more than expected and OPEC raised its outlook for oil demand.

Brent crude futures rose 28 cents, or 0.4%, to $63.95 a barrel at 0057 GMT, after climbing 39 cents on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures similarly climbed 28 cents, or 0.5%, to $60.46 a barrel, adding to Tuesday’s rise of 48 cents.

Oil price gains over the past week have been underpinned by signs of a strong economic recovery in China and the United States, but have been capped by concerns over stalled vaccine rollouts worldwide and soaring COVID-19 infections in India and Brazil.

Nevertheless, the Organization of the Petroleum Exporting Countries (OPEC) tweaked up its forecast on Tuesday for world oil demand growth this year, now expecting demand to rise by 5.95 million barrels per day (bpd) in 2021, up by 70,000 bpd from its forecast last month. It is banking on the pandemic to subside and travel curbs to be eased.

“It was a welcome prognosis by the market, which had been fretting about the impact the ongoing pandemic was having on demand,” ANZ Research analysts said in a note.

Further supporting the market on Wednesday, sources said data from the American Petroleum Institute showed crude stocks fell by 3.6 million barrels in the week ended April 9, compared with estimates for a decline of about 2.9 million barrels from analysts polled by Reuters.

Traders are waiting to see if official inventory data from the U.S. Energy Information Administration (EIA) on Wednesday matches that view.

Market gains are being capped on concerns about increased oil production in the United States and rising supply from Iran at a time when OPEC and its allies, together called OPEC+, are set to bring on more supply from May.

“They may have to contend with rising U.S. supply,” ANZ analysts said.

EIA said this week oil output from seven major shale formations is expected to rise by 13,000 bpd in May to 7.61 million bpd.

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