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Edo: Obaseki Gives BEDC seven-day Ultimatum to Restore Power

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  • Edo: Obaseki Gives BEDC seven-day Ultimatum to Restore Power

Edo State Governor, Godwin Obaseki, has given a seven-day ultimatum to the Benin Electricity Distribution Company to restore power supply to consumers in the state within a week or risk a shutdown of its offices.

Obaseki gave the ultimatum while concluding the ward-to-ward campaign of the All Progressives Congress in the Egor Local Government Area of the state, where he urged voters to support candidates of the APC in the 2019 general elections.

The governor lamented that the Disco had continued to frustrate his efforts to ensure that residents in the state got stable electricity to power their businesses.

“BEDC has continued to put us in darkness in the state and we will give them seven days to restore electricity or else we will shut their offices down in the state,” he said.

Speaking during the campaign in Ward 9, Obaseki said N500m had been set aside in the 2019 budget to construct an entertainment park and waterworks, urging residents in the ward to support the APC candidates to represent them at the state and federal levels.

He said, “We have awarded the contracts for the repair of the failed portions of Okhoro road and the contractor who went on holiday has resumed work with the promise to start work next week.”

He described Ward 10 as a special ward that had several federal and state institutions, stating that his administration had completed the design of the Technical College road and awarded the contract.

“I have also asked the contractor to rehabilitate Adolor College Road and in two weeks’ time, contractors will commence work,” he assured.

The governor further noted that the rehabilitation work on Adolor College road had become important because over N300m had been spent so far in revamping the Government Science Technical College which would be reopened for academic activities in September 2019 with 1,500 students.

He said, “Due to the work we are doing at the college, the Minister of Power has promised to give us a direct line from Ihovbor Power Plant to help light up the state. Officials of Transmission Company of Nigeria are already in the state preparing the ground to bring power and to enable the people to enjoy 24/7 electricity.”

Reacting, the company in a statement by Head of Corporate Communications, Mr Tayo Adekunle, said that the Disco did not need an ultimatum to restore power in the state.

The Disco said, “Since late December, power has been restored to most parts of Benin affected by the outage caused by faulty power transformers used by the TCN to wheel power to feeders supplying electricity to the Benin metropolis. Average availability in most locations presently is a minimum of six hours.

“Except for few locations with technical fault or isolated issue, nearly 80 per cent of Benin has power supply. As a service provider, BEDC is committed to improving service delivery to the good people of Edo State and other coverage areas. We reconnected three communities in Ekiti and one in Ondo in December, in addition to 42 communities restored back to the grid as of last November.”

“In all our coverage states, we do not need an ultimatum before fixing issues affecting our service delivery.”

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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Economy

IMF Staff Completes Virtual Mission to Lesotho

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Lesotho has been struggling with the fallout from the pandemic and a sharp decline in revenues from the Southern African Customs Union (SACU); The authorities and the mission team made significant progress in their discussions on policies that could be supported by the IMF under a financial arrangement.

A team from the International Monetary Fund (IMF), led by Mr. Aqib Aslam, conducted a series of virtual missions, most recently from September 7 to October 15, 2021, to discuss the authorities’ economic and financial program and their request for IMF financial support.

The authorities and the mission team had productive discussions on policies that could be supported by the IMF under a financial arrangement. The program under discussion would aim to support a durable post-pandemic recovery, restore fiscal sustainability, strengthen public financial management, and ensure the protection of the most vulnerable. Other key structural reforms to be implemented include strengthening governance and fostering private sector investment to spur inclusive growth and employment over the medium term.

At the end of the visit, Mr. Aslam issued the following statement:

“Lesotho has been experiencing twin economic shocks resulting from the pandemic and a decline in revenues from the Southern African Customs Union (SACU) that have proved to be highly volatile. Public expenditures have been increasing while SACU revenues were buoyant but have not adapted to their decline and the limited growth in other revenue sources. At the same time, the economy has been in recession since 2017. The resulting fiscal and external imbalances, if left unaddressed, would continue to put pressure on international reserves and lead to government payment arrears.

“Discussions emphasized the need to support a robust and inclusive post-pandemic recovery. To this end, the mission discussed with the authorities a number of options for containing the fiscal deficit to a level that is sustainable and can be fully financed. The team noted that the adjustment should be focused on expenditure measures while boosting poverty-reducing social spending to protect the most vulnerable. Complementary actions include efforts to broaden financial access and inclusion; strengthen financial supervision; modernize the legal frameworks for bank lending, business rescue, and restructuring, and digitalize payment systems.

“On the fiscal front, efforts should focus on addressing the public sector wage bill, which is one of the largest in the world compared to the size of the economy; saving on public sector and official allowances; better targeting education loans; streamlining the capital budget and initiating gender-responsive budgeting. Discussions also considered measures to modernize tax policy and improve domestic revenue mobilization. The mission noted the need to address long-standing PFM issues to ensure the provision of reliable fiscal data, the integrity of government systems, and the sound use of public resources.

“Significant progress was made during the visit, and discussions will continue in the coming weeks. If agreement is reached on policy measures in support of the reform program, an arrangement to support Lesotho’s economic program would be proposed for the IMF Executive Board’s consideration.

“The IMF team thanks the authorities for their hospitality and constructive discussions.”

The IMF mission met with Prime Minister Majoro, Minister of Finance Sophonea, Central Bank Governor Matlanyane, and other senior government officials. The team also met with representatives of the diplomatic community, private sector, civil society, and multilateral development partners.

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Nigeria’s Inflation: Prices Increase at Slower Pace in September 2021

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Consumer Confidence

Prices of goods and services moderated further in Africa’s largest economy, Nigeria in the month of September 2021, the latest report from the National Bureau of Statistics (NBS) has revealed.

Consumer Price Index (CPI), which measures the inflation rate, grew at 16.63 percent year-on-year in September, slower than the 17.01 percent rate achieved in the month of August.

On a monthly basis, inflation rose by 1.15 percent in September 2021, representing an increase of 0.13 percent from 1.02 percent filed in August 2021.

Food Index that gauges price of food items grew at 19.57 percent rate in the month, below the 20.30 percent rate recorded in August 2021.

The increase in the food index was caused by increases in prices of oils and fats, bread and cereals, food product N.E.C., fish, coffee, tea and cocoa, potatoes, yam and other tuber and milk, cheese and egg.

However, on a monthly basis, the price of food index rose by 0.20 percent from 1.06 percent filed in August 2021 to 1.26 percent in September 2021.

The more stable twelve months average ending in September 2021 revealed that prices of food items grew by 0.21 percent from 20.50 percent in August to 20.71 percent in September.

Prices of goods and services have been on the decline in Nigeria in recent months, according to the NBS. However. on masses are complaining of the persistent rise in prices of goods and services across the nation.

Some experts attributed the increase to Nigeria’s weak foreign exchange rate given it is largely an import-dependent economy.

 

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Economy

Global Debt Rises by $27 Trillion to $226 Trillion in 2020 – IMF

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IMF - Investors King

The pandemic has led to an unprecedented increase in debt—issued by governments, nonfinancial corporations, and households the IMF estimated in the latest Fiscal Monitor report. In 2020 global debt reached $226 trillion and increased by $27 trillion, the IMF estimated Wednesday  (October 13) in Washington, DC.

High and growing levels of public and private debt are associated with risks to financial stability and public finances, said Vitor Gaspar, Director of the IMF’s Fiscal Affairs Department.

“According to preliminary estimates from the Global Debt Database, global debt by governments, households, and non-financial corporations reached $226 trillion. That represents an increase of $27 trillion relative to 2019. Both the level and the pace of increase are record highs. We know that high and rising debts increase risks to financial stability and public finances,” Gaspar said ahead of the Fiscal Monitor release.

Gaspar emphasized that countries with a high credibility fiscal framework benefit from better bond market access. They also experience lower interest rates on sovereign bonds.

“A strong message from the fiscal monitor is that fiscal credibility pays off. Countries that have credible fiscal frameworks benefit from better and cheaper access to bond markets. That’s a precious asset to have in an uncertain and difficult times like COVID 19. Fiscal credibility pays off!,” added Gaspar.

He also recognized that while the international community has provided critical support to alleviate fiscal vulnerabilities in low-income countries, still more is needed.

“In 2020, the IMF’s rapid financing and the G20 Debt Service Suspension Initiative contribute to make resources available to the countries that need it the most. But more is needed. With a general allocation of SDRs of $650 billion, liquidity has been provided, but much more could be achieved if rich countries would make part of their resources available to the developing world. By doing so, donors would be contributing to fighting the pandemic and to the achievement of sustainable and inclusive growth,” said Gaspar

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