- Banks Shun Energy Financing Over N3tr Exposure
Deposit Money Banks’ (DMBs) commitment of over- N3trillion in the energy sub-sector is discouraging the financial institutions from further financing of energy and power projects.
Energy Market and Rates Consultants Country Director, Mrs. Rahila Thomas, said this while enumerating the challenges confronting the power sector in Lagos, adding that, the huge exposure of banks to the power sector has made it difficult for operators to access funds.
She said revenues generated from the sector were substantially lower than expected as a result of factors such as inbuilt deficit in revenue due to tariff sculpting, low generation, low revenue collection due to unwillingness of power consumers to pay, high differential in exchange rate now compared to when the sector was privatised, and gas supply deficit, among others. These factors, Thomas said are responsible for the liquidity crisis confronting the power sector.
She noted that the sculpting of tariff under the multi-year tariff order (MYTO) methodology requires the distribution companies (DisCos) to operate in such a way to enable them recover their losses in future years, adding that with the overstretch space for recovery, customers don’t pay for consumption.
On low generation, she noted that the performance agreement the investors signed with government on takeover of the power firms, and with which they went to bank to seek loans, was that power generation would be increased to between 5,000megawatts (Mw) and 7,500Mw by last year, but average generation has remained at 3,000Mw.
She said at the time of takeover, exchange rate was N197 to a dollar but today it is over N350. Therefore, the cost of buying equipment and gas to power the plants have increased while price of power has not changed appropriately.
She said all the agreements the investors entered with the government on handover of the power firms, the government has not fulfilled any, adding that the companies have been operating at a loss for the past two and half years.
Thomas also said if the government had fulfilled its own part of the agreement, the generation plants have over 10,000Mw output capacity.
According to her, the privatised power stations (successor companies) have capacity to generate 5,155Mw, while the power plants built under the National Integrated Power Project (NIPP) can generate 3,926Mw, and on-grid independent power plants (IPPs) such as Ibom Power, AES, Agip’s Okpai power plant and Shell’s Afam V1 can generate 1248Mw. There is also 244Mw capacity from off-grid IPPs such as Rivers Trans Amadi and Aba Power, power plants that can generate 1,635Mw are in the works, she added.
FG Introduces NEXIT Portal for Npower Batch A and B Beneficiaries
The Federal Government has introduced a new online portal for exited Npower beneficiaries of batch A and B.
According to the Minister for Humanitarian Affairs, Sadiya Farouq, the portal was launched in collaboration with the Central Bank of Nigeria (CBN) to enable exited Npower beneficiaries apply for available federal government empowerment options.
This was disclosed in a statement issued by Nneka Anibeze, the media aide to the minister, on Friday.
The ministry said the NEXIT portal will be used to determine the suitability of exited beneficiaries for various CBN-affiliated programmes.
She explained that selection will be based on the conditions and criteria set by the apex bank.
Ms Farouq, therefore, urged interested exited Npower beneficiaries to log on to the NEXIT portal and provide the required additional information for possible placements into central bank’s intervention options.
“The Minister expressed her deep appreciation to the CBN Governor Mr Godwin Emefiele CON for his support adding that the Ministry of Humanitarian Affairs remained committed to the vision of Mr President to lift 100 million Nigerians out of poverty in the next 10 years.
“Minister Umar Farouq pledged the Ministry’s willingness to collaborate with relevant agencies of government and other stakeholders towards the realization of that vision and congratulated the exited beneficiaries while wishing them well in their future endeavours.
“The Federal Government of Nigeria is very proud of the milestones you have achieved during your period of service to the nation. As we prepare to exit into prospective endeavours.”
Ellah Lakes Partner Ondo State Government to Develop Oil Palm, Cassava in the State
The management of Ellah Lakes Plc said it has partnered with Ondo State Government to develop and manage 5000 hectares of land for the purpose of cultivating oil palm and cassava in Ondo State, Nigeria.
The company stated in a statement signed by Kenechi Ezezika, Company Secretary, Ellah Lakes Plc.
Speaking on the development, the Chief Executive Officer, Chuka Mordi said: “This is a significant landmark for the Company in the development of our landbank, & we are very excited to be working with ODSG.
“I am delighted that we are fulfilling our strategic objective of progressively expanding our land bank & diversifying our portfolio and production base. I am also glad to say that the intercropping programme in Edo State is progressing steadily & we have achieved our first milestone of 100Hectares of Cassava with the participation of personnel of the Agricultural Development Program (ADP), in Edo State”.
The Special Adviser on Development & Investment to the Ondo State Governor/ Chief Executive Officer of Ondo State Development and Investment Promotion Agency (ONDIPA), Mr. Akinboye Oyewumi, who also spoke on the development said: “We are pleased with this collaboration with Ellah Lakes Plc., and we look forward to a mutually beneficial, valuable and fruitful venture.”
Unilever Nigeria Appoints Mr Jaime Aguilera as a Non-Executive Director
Unilever Nigeria Plc announced it has appointed Mr. Jaime Aguilera as a Non-Executive Director of the company effective from January 2021.
The company stated in a statement filed with the Nigerian Stock Exchange.
Mr Jaime Aguilera worked with Coca-cola, Nestle and Procter & Gamble before joining Unilever as Executive Vice President Unilever Eastern Europe in September 2016.
Therefore, his experience spans from Europe, Americas and Asia.
His key expertise areas are “in Sales & Marketing and he has lead teams in Spain, Brazil, South Eastern Europe, Middle East, Mexico and Global teams.
“In 2009, he joined Unilever Spain as EVP & Chairman and then moved to his current role as Unilever Executive Vice President Africa, leading the Unilever business in Africa. Jaime is of Spanish origin and is an alumnus of the Universidad Pontificia de Comillas- ICADE. Jaime majored in Economic Sciences, Management & Business Administration.”
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