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Power Consumers Grumble Despite Rise in Generation

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  • Power Consumers Grumble Despite Rise in Generation

The recent comments by the Minister of Power, Works and Housing, Mr. Babatunde Fashola, on the rise in power generation to about 4,000 megawatts have been greeted with condemnation by individual electricity consumers as well as different consumer groups across the country.

According to them, the rise in power generation above 4,000MW has yet to translate into physical supply of electricity to households and businesses, as they argued that Nigeria’s power situation was still very poor.

In Lagos, Cross River and Imo states, Federal Capital Territory, as well as other states across the country, the reactions of consumers with respect to power supply were the same: no electricity!

They criticised the minister for stating that electricity generation had increased to 4,000MW, despite the fact that many parts of the country were still experiencing darkness and erratic power supply.

On February 19, Fashola stated that power generation in the country had stepped up to 4,000MW in the past two weeks.

The minister stated this in Benin while inspecting ongoing works at the Aduwawa axis of the Benin-Lokoja Expressway.

For several months, power generation had hovered around 3,000MW, a development said to have been caused by the incessant vandalism of gas pipelines supplying gas to the power plants.

Fashola’s statement on the recent gains in power generation was supported by several industry data released by the National Control Centre of the power sector in the month of February.

Last week, the NCC stated that the quantum of electricity that was sent out and delivered to households and industries across the country for the first time in one year crossed 4,000 megawatts-hour/hour on February 20, 2017.

This feat, it said, was surpassed a little on February 21, adding that the quantum of electricity delivered to consumers on the two days was 4,047MWh/h and 4,217MW/h, respectively, while power generation rose to a new high of 4,652.7MW on February 19.

Reacting to the disclosures by the minister and the NCC, the National President, Electricity Consumers Association of Nigeria, and a legal practitioner, Mr. James Chijioke, told our correspondent that the government should be ashamed to state that Nigeria was still struggling to generate 4,000MW of electricity.

He said, “There is no improvement in power supply. A lot of consumers across the country are complaining and they channel some of these complaints to us that they stay for several days without light. Are you talking about 4,000MW for a country that wants to diversify its economy and increase its local manufacturing base?

“In fact, I’m ashamed that we are telling ourselves that we have 4,000MW for more than 150 million people, while South Africa has 40,000MW generation and evacuation capacity and the population there is about 40 million. There is actually nothing to cheer about.”

Also refuting claims of improvement in electricity supply following the rise in power generation, the National Secretary, National Electricity Consumers Advocacy Network, Mr. Obong Eko, stated that aside from the fact that power supply had been erratic, the electric current being supplied to many locations had been very low.

Eko said, “You can barely see with it, for the light of a match-stick is brighter than what we get here in my village in Cross River State. And while you are expecting them to rectify the situation, before you know it, the whole thing is gone.”

Another consumer in Orlu, Imo State, Mr. Gideon Augustine, stated that despite the poor power situation, consumers under the estimated billing system were still getting very high monthly bills from the power distribution companies.

On why the power situation was still poor three years after privatisation, the Executive Director, Association of Nigerian Electricity Distributors, Mr. Sunday Oduntan, told our correspondent that the Discos only distributed what they got from the Transmission Company of Nigeria.

On complaints against exorbitant estimated bills despite the poor supply of electricity, Oduntan argued that the methodology that was adopted by the Discos was what they got from the Nigerian Electricity Regulatory Commission.

He said, “Talking about billing, just because you are not metered does not mean you should be using electricity free of charge. Estimated billing is a legitimate thing. They do it abroad. Whoever has no meter will be placed on estimated billing. And in the case of Nigeria, the estimated billing that we use is based on the methodology given to us by our regulator.”

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

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness - Investors King

Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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