Connect with us

Finance

Power Firms Reject TCN as Proposed N72bn Fund Manager

Published

on

electricity
  • Power Firms Reject TCN as Proposed N72bn Fund Manager

Operators in Nigeria’s power sector on Sunday rejected the Federal Government’s selection of the Transmission Company of Nigeria as the firm that will manage a N72bn investment fund expected to boost electricity distribution networks across the country.

The government has hinted of plans to invest N72bn in the distribution assets in order to effectively distribute more power.

The Managing Director, TCN, Usman Mohammed, recently stated that the transmission company would manage the fund.

But the power distributors on Sunday kicked against the move, as they argued that as holders of up to 60 per cent shares in the distribution assets, their boards should be allowed to deliberate and decide on the conditions for such investment, if they would ever accept it.

According to a document made available to our correspondent in Abuja by the Association of Nigerian Electricity Distributors, the Discos said they did not trust the capacity of the TCN to manage the investment fund.

They said, “It will be difficult for the Discos to acquiesce to the TCN/Ministry of Power, Works and Housing adding a further N72bn of debt to the N1.3tn of debt (and growing) already to our financial books, given the Discos’ inability to access debt financing required to address massive capital expenditure requirements.

”The capital expenditure requirements far exceed the N72bn initiative required to inject the efficiency that electricity customers demand, the Discos’ regulatory constraints, and the uncertainty of projects built by an entity that is licensed only to transmit energy and not distribute energy.

“It should also not be forgotten that the Discos are already carrying, out of the total sum of N210.61bn, 72.25 per cent or N152.16bn of legacy gas and energy debt (incurred by the defunct PHCN) associated with the Central Bank of Nigeria’s Nigerian Electricity Market Stabilisation Facility, a debt unconnected with the Discos, a contravention of the debt-free requirement, that was a fundamental contractual requirement of the sale of the distribution assets.”

ANED said the N72bn initiative held for the Discos pitfalls that would undermine any expected positive outcomes that were the genesis of the government’s plan.

They said the basis of the planned funding was to evacuate 2,000 megawatts of electricity which they claimed was not stranded on account of distribution limitations but mostly by gas, frequency and line constraints.

The power firms also explained that given the heavily regulated nature of their business, they were not sure they could recover the investment through tariff because it might not adhere to the regulatory requirement for capital investment, which the Nigerian Electricity Regulatory Commission stipulated for them.

“To ensure that electricity customers do not unduly bear the cost of electricity inefficiencies, fundamentally, all related procurement is required to be implemented efficiently and on a best-value basis. The implementation of this N72bn initiative by the TCN, outside of the regulated procurement requirements that the Discos are subjected to, will leave the best-value requirement wanting,” they said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Published

on

Nestle

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.

The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.

Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.

It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.

Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.

Continue Reading

Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

Published

on

Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

Continue Reading

Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

Published

on

Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

Continue Reading

Trending