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Meter Supply is Discos’ Responsibility, Says FG

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prepaid meter
  • Meter Supply is Discos’ Responsibility, Says FG

The Federal Government on Monday announced that power distribution companies still had the responsibility of providing meters to customers as opposed to the recent position of the Discos.

It said the Meter Asset Provider Regulation, which was unveiled by the Nigerian Electricity Regulatory Commission in March this year, did not completely remove the responsibility of providing meters by the Discos.

The latest announcement by the Minister of Power, Works and Housing, Babatunde Fashola, however, contradicts the position of the Discos, whose spokesperson, Sunday Oduntan, recently stated that metering was now the responsibility of NERC.

NERC had announced on March 12 that power distributors would no longer have the sole responsibility of providing meters to electricity consumers.

It explained that its MAP Regulation had introduced another class of operators in the power sector called Meter Asset Providers, adding that MAPs would henceforth take up the duty of providing meters to customers, among other functions.

Based on this initiative, the Discos recently urged power users to understand that the responsibility of providing meters was now that of MAPs through the regulator.

“It looks like from now on metering is no more our business. Metering is now government’s business,” Oduntan said at a recent interview.

But while speaking at the 29th power sector stakeholders’ meeting organised by Mainstream Energy Solutions Limited on Monday, Fashola stated that metering was still a contractual obligation of the Discos despite the introduction of MAP.

He said, “MAP, which was introduced to address meter supply gaps, provides relief to the Discos of the financial burden of supplying meters, and allow entrepreneurs to take this up as a business and diversify source of meter supply.

“Regulations and conditions for operation were issued by NERC on 28th of March 2018. Part of the objectives of this policy was to give relief to the Discos of the financial burden of meters.

“This government’s intervention is part of its roles of enabling business in the sector; it does not relieve the Discos of their contractual obligations to provide meters. On the contrary, it seeks to help them to perform their contracts.”

The minister stated that the new regulation was being embraced, but stressed that the most pressing challenge in the sector was from the distribution arm.

Fashola said, “Those who know and who genuinely desire to solve problems in this industry do not need to be told that the most pressing challenge of the sector today lies at the distribution end.

“Among the challenges at this sector of the value chain, (and there are problems in gas, generation and transmission), the most urgent is the distribution of available energy to consumers; and there is unused energy in the region of 2,000 megawatts in this category.”

He added, “The other, of course, is the supply of meters to consumers. These two issues of power distribution and supply of meters rank highest in the feedback from the stakeholders in the industry.”

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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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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