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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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Nigerian Artists’ Spotify Revenue Surges by 2,500% in Seven Years

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Nigerian musicians have experienced a shift in their fortunes on the global streaming platform Spotify with revenue surging by a 2,500% over the past seven years.

This meteoric rise shows the growing importance of digital platforms in propelling the country’s vibrant music industry onto the international stage.

According to Spotify’s annual report titled “Loud & Clear,” Nigerian artists collectively earned N25 billion from the platform in 2023 alone.

This figure represents a doubling of earnings compared to the previous year and a jaw-dropping increase of 2,500% since 2017.

The report further highlights the widening reach and impact of Nigerian music, revealing that more artists than ever before are now reaping rewards from their streaming activity.

In 2023, three times as many Nigerian artists earned over N10 million compared to 2018, reflecting the growing appetite for Nigerian music both at home and abroad.

Jocelyne Muhutu-Remy, Spotify’s managing director for Sub-Saharan Africa, hailed the growth in royalties earned by Nigerian artists on the platform as a testament to their talent, creativity, and global appeal.

She emphasized Spotify’s commitment to supporting African creators and pledged to continue investing in Nigerian artists to sustain this momentum.

Despite these gains, Nigerian artists’ earnings on Spotify still represent only a fraction of the platform’s total payout.

In 2023, Spotify paid out $9 billion in royalties globally with Nigerian artists accounting for a modest share of approximately $28.65 million.

A recent analysis revealed that South Africa remains the dominant force in Africa’s music streaming landscape, commanding a substantial portion of the region’s total music revenue.

However, Nigeria’s rapid ascent signals a shifting dynamic with the country’s music industry poised for even greater prominence on the global stage.

The International Federation of the Phonographic Industry (IFPI) corroborated this trend in its 2024 report, identifying the Sub-Saharan African market as the world’s fastest-growing music revenue market.

The report attributed this growth to the surge in paid streaming services, which contributed significantly to the region’s overall music revenue.

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Naira Depreciation Pushes Import Duty Costs Up by 23%

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Amidst the ongoing economic turbulence in Nigeria, the depreciation of the Naira has inflicted a significant blow to businesses and importers.

The latest casualty is the surge in import duty costs which have skyrocketed by 23% due to the weakening of the national currency against the United States dollar.

The cost of clearing imports has surged to N1,412.573/$ as of May 8, an increase from the year-to-date low of N1,150.16/$ recorded on April 23.

This sudden spike in import duty costs reflects a 48% surge compared to the rate recorded in January.

The surge in import duty costs comes as a result of the fluctuation in the exchange rate between the Naira and the US dollar.

While the Naira experienced a brief rally in April, providing some relief to importers, the recent depreciation has erased those gains and compounded the financial strain on businesses.

Jonathan Nicole, former president of the Shippers Association of Lagos State, voiced concerns over the destabilizing effect of the fluctuating import duty rates on importers.

He criticized the lack of consistency in Nigeria’s economic policies and said there is a need for stability to attract investments and foster economic growth.

In response to the escalating import duty costs, stakeholders in the business community have called for urgent intervention to mitigate the adverse impact on businesses.

The surge in import duty costs poses a significant challenge to manufacturers and importers, particularly those who had already incurred expenses in anticipation of stable exchange rates.

As the cost of doing business continues to rise, there are growing concerns about the long-term viability of businesses and the potential impact on Nigeria’s economy.

With the economic landscape fraught with uncertainties, stakeholders are urging the government and regulatory authorities to implement measures aimed at stabilizing the currency and creating a conducive environment for businesses to thrive.

Failure to address these challenges could further exacerbate the economic woes facing Nigeria, jeopardizing its path to recovery and growth.

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Appointments

Ebenezer Olufowose Takes Helm at First Bank of Nigeria Limited as Chairman

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First Bank of Nigeria Limited has announced the appointment of Mr. Ebenezer Olufowose as its new Chairman.

This significant change follows the completion of the tenure of Mr. Tunde Hassan-Odukale, in accordance with the Central Bank of Nigeria’s Corporate Governance Guidelines, which mandates a maximum of twelve years for a Non-Executive Director.

Mr. Olufowose, a seasoned veteran in the financial services industry, brings over 36 years of experience to his new role.

He assumes the position of Chairman with a wealth of expertise garnered from his diverse background in Corporate Finance, Project Finance, and Investment Banking.

Prior to his appointment as Chairman, Mr. Olufowose served as a Non-Executive Director on the Board of First Bank of Nigeria Limited, a position he held since April 29, 2021.

He is also the Group Managing Director of First Ally Capital Limited, a reputable investment banking firm headquartered in Lagos.

His impressive career trajectory includes pivotal roles at Access Bank Plc and Citibank Nigeria, where he played instrumental roles in leading and executing corporate finance and investment banking transactions.

He spearheaded Citigroup’s origination, structuring, and execution of various high-profile deals in Nigeria.

Mr. Olufowose commenced his banking journey in 1985 at NAL Merchant Bank Plc (NAL), where he honed his skills in Corporate Planning and Finance.

Armed with a first-class honours degree in Economics from the University of Lagos and an MA in International Economics from the University of Sussex, England, Mr. Olufowose has continuously pursued excellence in his field.

Throughout his career, he has actively participated in numerous management and leadership training programs at esteemed institutions such as the Institute of Management Development in Switzerland, Harvard Business School in Boston, USA, and INSEAD in Singapore.

Also, he is an alumnus of the Harvard Business School and the Lagos Business School, further solidifying his reputation as a seasoned professional in the banking sector.

Mr. Olufowose’s commitment to professional development is evident in his affiliations with prestigious bodies such as the Chartered Institute of Bankers of Nigeria, where he holds an Honorary Senior Membership, and the Institute of Credit Administration and the Association of Investment Advisers and Portfolio Managers, where he is recognized as a Fellow.

As he assumes his new role as Chairman of First Bank of Nigeria Limited, Mr. Olufowose is poised to lead the institution with integrity, vision, and a steadfast commitment to excellence.

With his extensive experience and proven track record, he is well-positioned to guide the bank through its next phase of growth and reinforce its position as a leading financial institution in Nigeria.

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