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Power: Abuja Disco Adds 60,000 Meters worth N2.4bn

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  • Power: Abuja Disco Adds 60,000 Meters worth N2.4bn

The Abuja Electricity Distribution Company (AEDC) on Friday moved closer to ending its practice of estimated billing to electricity consumers in its network when it signed an agreement with indigenous Nigerian meter manufacturing outfit – Mojec Nigeria, to procure and install 60,000 units of electricity meters at the premises of its residential consumers.

The agreement which was signed by the Managing Director of Abuja Disco, Mr. Ernest Mupwaya, and Chairman of Mojec, Mrs. Mojisola Abdul, at the Disco’s corporate headquarter in Abuja, was worth N2.4 billion, and would reportedly bring the Disco closer to accomplishing its plan to provide 120,000 meters to its customers in its 2017 business year.

Already, the Disco had earlier in the year deployed 30,000 meters to residential consumers in its network, in addition to the volumes it deployed to its maximum demand consumers as initially directed by the Nigerian Electricity Regulatory Commission (NERC).

It also disclosed that it would sign another fresh agreement for the manufacture and supply of an additional 30,000 meters with an undisclosed metering firm next week, to bring its meter deployment target for 2017 to fulfillment.

Speaking at the signing ceremony, Mupwaya, explained that so far, the Discos had invested $2 million and N3.6 billion on meter procurement and installation across its network. He also noted that a total of $150 million had however been spent on metering and other infrastructure by the Disco.

Mupwaya, equally stated that with the Disco’s advancement of its metering plan, it was looking forward to closing down on repeated revenue losses to estimated customers and energy theft.

He explained that the Disco was more comfortable with providing meters to its customers as against reports that it was more at an advantage keeping with estimated billing. He however said that funding the meter deployment was still demanding.

According to him, most Discos in the country’s power market were going through various operational challenges which he said included tariffs that were not cost reflective; systemic thefts of energy by consumers; and vandalism of distribution assets across their networks.

“This is an important milestone for us. This is part of our agreement with the government, and we know metering is at the heart of the power sector transformation,” said Mupwaya.

He further stated: “We had earlier signed a contract for the procurement and deployment of 30,000 residential meters, we are signing another one for 60,000 and will by next week sign another for 30,000 to bring it to 120,000 which we committed to do in 2017.

“For this particular programme, it is costing us N2.4 billion, but we are doing it despite the challenges because we believe that if we reduce losses in the long-term, we could reduce tariff. That is why we are serious about our metering programme.”

He also noted that: “In areas without meters, we have very high losses, unlike areas with meter. So, it is actually in our interest to meter our customers.”

Similarly in her remarks, Abdul noted that the Disco had remained one of its frontline customers, adding that its support for local meter manufacturing outfits like hers had remained encouraging.

She however called for government’s support of the metering industry and the Discos, pointing out that so far, charges by the Nigerian Electricity Management Services Agency (NEMSA) for testing of meters at its testing stations were affecting the Disco’s metering plans.

Abdul, stated that her firm had the capacity to produce up to 1.1 million meters for the Discos in the country but the financial challenges of the Discos had not made it possible for it to attain optimal production at its plant.

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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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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