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Power Distributors’ Revenue Collection Rises to N36bn Monthly

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Naira
  • Power Distributors’ Revenue Collection Rises to N36bn Monthly

The revenue collected by electricity distribution companies in the country from customers rose by 23 per cent this year, the Association of Nigeria Electricity Distributors said on Tuesday.

ANED, the umbrella body of the 11 Discos carved out of the defunct Power Holding Company of Nigeria, said although the retail tariff had not been changed since February 2016, the revenue collection had been increased continuously up to an average of N36bn per month this year.

It disclosed through infographics posted to its official Twitter account on Tuesday that the energy received by the Discos, excluding Yola Disco, from October 2017 to September 2018 increased to 26,368 gigawatt hours, compared to the 24,217 GWh received from October 2016 to September 2017.

The energy billed by the Discos rose by 11 per cent to 20,600 GWh (an equivalent of N650.1bn) this year from 18,552GWh (N590bn) in 2017.

The association said the Discos collected N422.5bn in 2018, up from N344.7bn in the previous year, with the collection efficiency rising to 65 per cent from 60 per cent while the Aggregate Technical, Commercial and Collection losses dropped to 49 per cent from 54 per cent.

According to it, Disco operators only collect 24 per cent of the tariff revenues, while the balance goes upstream to transmission, generation and other industry stakeholders.

“The Discos in general have capitalised the additional energy received from the Transmission Company of Nigeria, improving their performance,” ANED said in his presentation, titled ‘Disco Performance Report for 2018.’

It said the improved performance continued in the third quarter of this year, although the energy received had not increased as much as projected.

The energy received in the third quarter this year increased to 6,283GWh from 5,988 GWh in the same period in 2017.

The energy billed also rose to 5,015GWh (an equivalent of N158.2bn) from 4,620GWh (N147bn), while the collection increased to N105.1bn from N88.4bn.

“Since July 2016, there has been a gradual rise in energy received by Discos and consequently on the energy billed,” ANED added.

The nation’s power sector was privatised in 2013, with the Discos and six generation companies handed over to core investors on November 1 that year. On July 2015, the Federal Government took over Yola Electricity Distribution Company following the exit of the core investor.

Last week, the National Union of Electricity Employees faulted the Bureau of Public Enterprises over the date for the final performance review of the Discos.

The Director-General, Bureau of Public Enterprises, Mr Alex Okoh, said last month that the review of the performance of the Discos would take place before December 2019.

He said the five-year performance agreement for all the Discos, with the exception of Kaduna Disco, became effective on January 1, 2015 and the fifth year anniversary for final performance review would therefore be December 31, 2019.

But the General Secretary, NUEE, Mr Joe Ajaero, described the declaration of December 31, 2019 as the final performance review date as “a negation of the performance agreements, which provides for a five-year tenure stipulated in the Memorandum of Understanding and Power Privatisation Act during which the core investors in the Discos are required to fully achieve far-reaching efficiency improvement target.”

“We are worried that since the core investors took over the privatised electricity assets on November 1, 2013, their performances have been abysmal, with Nigerians bearing the burden of paying outrageous/estimated bills since they have refused to provide their customers with prepaid meters,” he added.

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.

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Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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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.

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CIT Microfinance Bank Disburses Over N16bn Loans

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CIT Microfinance Bank Disburses Over N16bn Loans

CIT Microfinance Bank Limited says it has disbursed about N16bn loans since it commenced operations as part of its contributions to the financial sector and empowerment of businesses.

The Managing Director of the microfinance bank, Mr Kingsley Eremionkhale, disclosed this during the company’s 10th anniversary in Lagos recently.

He reiterated that the bank was committed to supporting the growth of small and medium-scale enterprises in the country.

“Since inception, we have disbursed loans worth about N16bn. Our operation is not just about profit-making, but we have impacted many lives, empowered many businesses, and done a lot in terms of our core mandate as a microfinance bank.”

While appreciating its customers who had been loyal to it for years, he said it was concerned about their business success.

The managing director said, “We are part of our customers’ businesses. We provide services beyond lending and savings products and we also give financial advisory services.”

He appreciated the customers who had stayed with the financial institution for many years.

The managing director noted that the MfB is a state-licensed bank operating in Lagos, and a subsidiary of Capitalfield Investment Group.

He also attributed the success of the MfB to the board of directors which it said had been supportive, the management team and its workforce in the past 10 years.

While saying that the bank could lay claims to exponential growth, he said the public should expect more from it.

He also said that it was driving its operations through its digital offerings and our e-channels, to improve its services to our customers.

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Finance

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

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FMDQ

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

FMDQ Securities Exchange Limited has announced the approval of the quotation of the Valency Agro Nigeria Limited N5.12bn Series 1 Commercial Paper under its N20bn CP Programme on its platform.

The Exchange said in fostering the development of the Nigerian debt capital markets, it had continued to avail its credible and efficient platform as well as tailor its listings and quotations services to suit the needs of issuers and registration members through innovative and uninterrupted service delivery.

It said in a statement on Thursday that the Valency Agro Nigeria CP debut issue came at a time when the Nigerian economy was bedeviled with soaring food prices, amidst compounding challenges of insecurity.

It said the agricultural sector and its attendant transformation agenda had never been more important in driving increased and sustainable production of agricultural products as well as the derived foreign earnings through exports.

The Exchange said the proceeds from the issue of the CP would be applied by Valency Agro towards meeting the mid-term working capital requirements of the various agricultural produce under its portfolio such as cashew, sesame, cocoa and in value addition prior to export.

The Executive Director, Valency Agro Nigeria Limited, Mr Sumit Jain, was quoted as saying, “We are thankful to our investors towards showing their faith in our agenda to grow the agriculture-focused business with a clear aim to maximise value addition and create employment opportunities in Nigeria.

“We would also like to commend the efforts made by FBNQuest Merchant Bank Limited’s team to build the reach and FMDQ for their unconditional support for the industry”.

The Head, Capital Markets, FBNQuest Merchant Bank, Mr Oluseun Olatidoye, said, “FBNQuest Merchant Bank Limited is delighted with the successful debut of the N5.12bn Series 1 CP issued by Valency Agro Nigeria Limited. This reiterates our effort to enable underserved sectors access the debt markets, optimise their capital structure and further deepen the domestic capital markets.

“We are proud of the instrumental role FBNQuest Merchant Bank played in this transaction and appreciate the trust the management of Valency Agro placed in us to assist them. Our clients remain our priority, and we strongly believe their success is our success.”

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