Connect with us

Economy

Discos Knock Obaseki Over Row With BEDC Boss

Published

on

power
  • Discos Knock Obaseki Over Row With BEDC Boss

The Association of Nigerian Electricity Distributors has expressed its displeasure over the recent treatment meted out to the Managing Director of Benin Electricity Distribution Company, Mrs Funke Osibodu, by the Edo State Governor, Mr Godwin Obaseki.

Obaseki, on Tuesday, had ordered Osibodu to leave his office for “failing to meet obligations to electricity consumers in Edo and throwing the state into darkness for weeks.”

The mild drama was said to have played out while the governor was receiving members of the House of Representatives Committee on Power who were in the Government House on a courtesy visit.

But ANED, the umbrella body of the 11 electricity distribution companies in the country, described the governor’s outburst as unfair.

The Executive Director for Research and Advocacy, ANED, Chief Sunday Oduntan, said in a statement, “What is most unfortunate about the whole episode is that there is a misunderstanding about how the power sector works and this has led to the governor’s unfair expectations from the BEDC.

“With the upcoming elections and everyone looking for scapegoats, I cannot also rule out that local politics may be involved in this case and that is highly unfortunate.”

Oduntan noted that governor mentioned that the state was generating over 600 megawatts and as such should not be encountering power supply challenges.

“However, he needs to understand that the power generated at Azura or any other power plant in the country for that matter is first sent to the national grid from where it is redistributed to different Discos for distribution to customers,” he added.

According to him, Benin Disco is only entitled to nine per cent of the power sent out from the national grid and so it is clear that the Disco does not have the power to retain the 600MW generated by Azura.

The ANED spokesman said, “More interesting is the fact that out of this nine per cent, over 40 per cent of it is distributed within Edo State as the host community of the Disco. The other three states in the franchise area – Delta, Ekiti and Ondo – share the remaining 60 per cent.

“You can clearly see, therefore, that Edo State enjoys the lion share of what the Disco gets already. To allocate more to Edo – which is what the governor is advocating – will be grossly unfair to the other states.”

Oduntan said it was “unfair to attack a Disco that is on record as having the highest number of prepaid meters in the country all in a bid to ensure customers get value for their money as well as to end the practice of estimated billing within its franchise area.”

Meanwhile, two groups and a market women association have praised Obaseki for the “display of courage and defence of the common man.”

According to a statement from the Edo State Government, Mr Edorodion Frank, in a message on behalf of Aisiokuo-Edo Group, commended the governor “for sending clear signals to those onlookers who think you are weak or afraid to take some compelling proactive radical decisions, which are in the overall interest of Edo people, no matter whose ox is gored.”

He said his reactions, on behalf of Edo people, had won the hearts of majority of residents in the state, including the opposition parties and the non-indigenes, particularly the Aisiokuo-Edo group.

The leader of market women in the state, Mrs Blacky Omoregie, said the governor had once again demonstrated his love for the common people in the state.

“He rose to the occasion to prove the Edo man in him that he is fearless and honest. Our businesses have been suffering for over three weeks since we have been in darkness in Edo State due to the insensitivity of the BEDC,” she added.

The Benin Integrity Group, led by Chief Uhunwa Ighodaro, was quoted as saying, “The Benin Integrity Group salutes Governor Godwin Obaseki’s patriotism and courage to defend the overall interest of Edo people and advises the governor to take more decisive and proactive actions in his burning desire to lay solid socio-economic and infrastructural development of Edo State.”

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.

Economy

Electricity Consumers Get 611,231 Meters Under MAP Scheme

Published

on

power project

Electricity Consumers Get 611,231 Meters Under MAP Scheme

A total of 611,231 meters have been deployed as at January 31, 2021 under the Meter Asset Provider initiative since its full operation despite the COVID-19 pandemic and other extraneous factors, the Nigerian Electricity Regulatory Commission has said.

NERC disclosed this in a consultation paper on the review of the MAP Regulations.

The proposed review of the MAP scheme is coming nearly four months after the Federal Government launched a new initiative called National Mass Metering Programme aimed at distributing six million meters to consumers free of charge.

“The existence of a huge metering gap and the need to ensure successful implementation of the MYTO 2020 Service-Based Tariff resulted in the approval of the NMMP, a policy of the Federal Government anchored on the provision of long-term low interest financing to the Discos,” NERC said.

The commission had in March 2018 approved the MAP Regulations with the aim of fast-tracking the closure of the metering gap in the sector through the engagement of third-party investors (called meter asset providers) for the financing, procurement, supply, installation and maintenance of meters.

It set a target of providing meters to all customers within three years, and directed the Discos and the approved MAPs to commence the rollout of meters not later than May 1, 2019.

But in February 2020, NERC said several constraints, including changes in fiscal policy and the limited availability of long-term funding, had led to limited success in meter rollout.

NERC, in the consultation paper, highlighted three proposed options for metering implementation going forward.

The first option is to allow the implementation of both the NMMP and MAP metering frameworks to run concurrently; the second is to continue with the current MAP framework with meters procured under the NMMP supplied only through MAPs (by being off-takers from the local manufacturers/assemblers).

The third option is to wind down the MAP framework and allow the Discos to procure meters directly from local manufacturers/assemblers (or as procured by the World Bank), and enter into new contracts for the installation and maintenance of such meters.

“Customers who choose not to wait to receive meters based on the deployment schedule of the NMMP shall continue to have the option of making upfront payments for meters which will be installed within a maximum period of 10 working days,” NERC said.

The regulator said such customers would be refunded by the Discos through energy credits, adding that there would be no option for meter acquisition through the payment of a monthly meter service charge.

“Where meters have already been deployed under the meter service charge option, Discos shall make one-off repayment to affected customers and associated MAPs. Such meters shall be recognised in the rate base of the Discos,” it added.

NERC urged stakeholders to provide comments, objections, and representations on the proposed amendments within 21 days of the publication of the consultation paper.

Continue Reading

Economy

Nigeria’s Economy Moving in Right Direction but Slow – Amina Mohammed

Published

on

Banana Island

Nigeria’s Economy Moving in Right Direction but Slow – Amina Mohammed

Nigeria is moving in the right direction economically but its movement is not fast, the United Nations stated on Thursday.

Deputy Secretary-General of the United Nations, Amina Mohammed, said this during a meeting at the headquarters of the Federal Ministry of Industry, Trade and Investment in Abuja.

She said the challenges in Nigeria were huge, its population large but described the country’s economy as great with lots of opportunities.

The UN scribe stated that after traveling by train and through various roads in the Northern parts of Nigeria, she discovered that the roads were motorable, although there were ongoing repairs on some of them.

Mohammed said, “This is a country that is diverse in nature, ethnicity, religious backgrounds and opportunities. But these are its strengths, not weaknesses.

“And I think the narrative for Nigeria has to change to one that is very much the reality.”

Speaking on her trips across parts of Nigeria, she said, “What I saw along the way is really a country that is growing, that is moving in the right direction economically. Is it fast enough? No. Is it in the right direction? Yes it is.

“And the challenges still remain with security, our social cohesion and social contract between government and the people. But I know that people are working on these issues.”

She said the UN recognised the reforms in Nigeria and other nations, adding that the common global agenda was the Sustainable Development Goals.

Mohammad commended Nigeria’s quick response to the COVID-19 pandemic, as she expressed hope that the arrival of vaccines would be the beginning of the end of COVID-19.

On his part, the Minister of Industry, Trade and Investment, Adeniyi Adebayo, told his guest that the Federal Government was working hard to make Nigeria the entrepreneurial hub of Africa.

Continue Reading

Economy

N10.7tn Spent on Fuel Subsidy in 10 Years – MOMAN

Published

on

petrol Oil

N10.7tn Spent on Fuel Subsidy in 10 Years – MOMAN

Nigeria spent a total of N10.7tn on fuel subsidy in the last 10 years, the Chairman, Major Oil Marketers Association of Nigeria, Mr Adetunji Oyebanji, has said.

Oyebanji, who was the guest speaker at the 18th Aret Adams Lecture on Thursday, said N750bn was spent on subsidy in 2019.

He highlighted the need for a transition to a market-driven environment through policy-backed legislative and commercial frameworks, enabling the sustainability of the downstream petroleum sector.

“Total deregulation is more than just the removal of price subsidies; it is aimed at improving business operations, increasing the investments in the oil and gas sector value chain, resulting in the growth in the nation’s downstream petroleum sector as a whole,” he said.

The managing director of 11 Plc (formerly Mobil Oil Nigeria Plc) said steps had been taken, “but larger and faster leaps are now required.”

According to him, deregulation requires the creation of a competitive market environment, and will guarantee the supply of products at commercial and market prices.

“It requires unrestricted and profitable investments in infrastructure, earning reasonable returns to investors. It requires a strong regulator to enable transparency and fair competition among players, and not to regulate prices,” Oyebanji said.

He noted that MOMAN had recently called for a national debate by stakeholders to share pragmatic and realistic initiatives to ease the impact of the subsidy removal on society – especially on the most vulnerable.

He said, “A shift from crude oil production to crude oil full value realisation through deliberate investment in domestic refining and refined products distribution, creates the opportunity to transform the dynamics of the downstream sector from one of ‘net importer’ to one of ‘net exporter’, spurring the growth of the Nigerian economy.

“Effective reforms and regulations are key drivers for the growth within the refining sector. Non-functional refineries cost Nigeria over $13bn in 2019. If the NNPC refineries were operating at optimal capacity, Nigeria would have imported only 40 per cent of what it consumed in 2019.”

Full deregulation of the downstream sector remains the most glaring boost to potential investors in this space, according to Oyebanji.

He said, “As crude oil prices will fluctuate depending on the prevailing exchange rates, it will be astute to trade in naira to avoid inevitable price swings.

“There needs to be a balance between ensuring the sustainable growth of the crude oil value chain (upstream through downstream) and providing value for the Nigerian consumer and the Nigerian economy.”

He said the philosophy should be for the government to put the legislative and commercial framework in place and let the market develop by itself.

Continue Reading

Trending