- Power Sector Records 4.9% Rise in Generation, Income Shortfall
Nigeria’s power sector recorded a 4.9 per cent increase in average generation in February, when compared to its January output, data obtained from the Advisory Power Team in the office of the Vice President, Prof. Yemi Osinbajo has disclosed.
The data obtained disclosed that between January and February 2019, the sector equally recorded a 7.2 per cent rise in the amount of revenue it lost to various sources of operational constraints.
This is just as a former Managing Director of the Nigeria Bulk Electricity Trading Plc (NBET), Mr. Rumundaka Wonodi, has advised the federal government on how best to get the sector working in the next four years of President Muhammadu Buhari’s tenure.
The data explained that in January average power generation was 3,952 megawatts (MW) while that of February was 4,148MW, indicating an increase by 196MW or 4.9 per cent.
It further explained that in January, the sector lost N41.371 billion and N44.383 billion respectively, indicating a difference of N3.012 billion or 7.2 per cent.
It added that the total volume of power that could not be generated in the sector on account of various constraints for the two months were 2,780MW for January and 3,302MW for February.
Meanwhile, Wonodi, has asked the government to take decisive steps in aligning its leadership and policy pursuits in the sector.
Wonodi added: “Policies must be consistent with the reform agenda most importantly, the rules and contracts as intended. For example, the government cannot wash its hands from NBET responsibility to Gencos on the PPAs by saying that it will no longer support the payment assurance.
“It must because that is the premise of the reform and NBET PPA. Another example is the cannibalisation of the Discos through some controversial micro-grid implementation,” said Wonodi.
He further stated: “Investment in transmission. This has to be huge and inspirational. We must aim for the heavens and work exceedingly hard such that when we fail, we be stuck at the clouds. We need a backbone transmission network and it is time to bring about the transmission network development fund, a fund that will be market based.
“Its projects must be proposed by the ISO (independent system operator) and approved by NERC in consultation with stakeholders and the stakeholder advisory panel (SAP).
“It is important project identification is taken away from sole control of the TCN. The ISO or at least the functions of the MO and SO need to come under the control of NERC and market participants.”
Continuing, Wonodi, noted: “There is an urgent need to expand and enhance Disco distribution capacity. Capital can come through recapitalisation of the companies using government equity. This to my mind is the greatest challenge to sector. Cost reflective tariffs must also come into place.”
Nigeria Appoints Four Global Banks To Oversee Eurobonds Issuance
Nigeria on Wednesday appointed four global lenders, JPMorgan, Citigroup, Standard Chartered and Goldman Sachs as book-runners for its forthcoming Eurobond issue, according to the Debt Management Office (DMO).
The debt office also appointed Chapel Hill Denham as Nigerian bookrunner and FSDH Merchant Bank as a financial adviser.
It said in a statement that the Transaction Advisers emerged from an Open Competitive Bidding Process as outlined in the Public Procurement Act, 2007 (as amended).
According to the debt office, 38 institutions jostled for the transaction advisers but chose to select eight after “rigorous evaluation to ascertain the technical capacities of the responders to execute the Transaction.”
The Eurobonds are aimed at raising the external borrowing portion of the N5.6 trillion deficits in the 2021 budget put at N2.34 trillion.
“Whilst the government expects a successful outing, it will be mindful of costs and risks in terms of tenor and pricing in determining the amount of Eurobonds to issue,” the DMO said.
The DMO said proceeds from the bond sale will be used to fund various projects in the budget with the resultant inflow of foreign exchange into the country which will boost Nigeria’s dollar reserves and support the naira.
Nigeria had planned a Eurobond issue early last year after its sixth sale in 2018 where it raised $2.86 billion. But it decided to defer the 2020 sale due to the turmoil caused by the COVID-19 pandemic.
The National Assembly last month approved the external borrowing of about $6.2 billion through the issuance of a Eurobond.
The government has said it wanted to moderate debt servicing costs by accessing relatively cheaper funds abroad, as global interest rates fall below 2020 levels while local rates rise.
Nigeria emerged from its second recession since 2016 in the fourth quarter of last year, but growth is fragile.
The government expects a 2021 budget deficit of N5.6 trillion to be financed largely from foreign and local borrowings in equal proportion.
Nestle Nigeria Plc Appoints Two New Directors
Nestle Nigeria Plc has appointed Mrs Adebisi Lamikanra and Mr Ibukun-Okun Ipinmoye as non-executive director and executive director respectively.
According to a statement signed by the Company Secretary, Bode Ayeku, Lamikanra, whose appointment was approved by the board, has over 30 years of professional experience providing advisory and consulting services to various public and private sector entities within and outside Nigeria.
The statement said before her appointment, Lamikanra was the head of the advisory practice of KPMG Nigeria consisting of management consulting, deal advisory, technology advisory and risk consulting business units. She had also led the financial services sector across Africa.
Lamikanra has a degree in economics and is a fellow of the Institute of Chartered Accountants of Nigeria. She attended various leadership programs over the years at Instead, Lagos Business School, Harvard Business School, Kellogg and many others.
She is currently the co-chair of Women Corporate Directors in Nigeria and the thematic leader for the non-banking sector for the Nigerian Economic Summit Group. She is a promoter of an NGO which focuses on providing employability training to Nigerian graduates.
On his part, the statement said Ipinmoye was currently the factory manager at, Agbara factory. He is a certified professional coach and a fellow of the Institute of Management Consultants.
He had joined Nestle Nigeria as a graduate trainee in 1993 and was appointed in 2016 to be the factory manager, Flowergate Factory, where he effectively built and sustained a high-performing culture at the factory.
He holds an M.Sc degree in biochemistry from the University of Ilorin and an M.Sc degree in management from Commonwealth Open University, United Kingdom.
FrieslandCampina Re-Launches Olympic, Coast Milk Brands
FrieslandCampina WAMCO, Nigeria’s foremost dairy company and makers of Peak and Three Crowns milk, has re-launched Olympic, Coast, and Nunu milk brands into the Nigerian market through the ‘Word twist’ campaign.
The new ‘Word twist’ campaign requires consumers to compose meaningful sentences with Coast, Olympic, and Nunu for a chance to win fantastic prizes.
For example, “You can now Coast to natural goodness like the fastest man alive cruises to Olympic medals with one Nunu milk a day in your meal.”
Omolara Banjoko, marketing manager, FrieslandCampina disclosed that the campaign became necessary following FrieslandCampina WAMCO’s acquisition of PZ Nutricima and its brands; Olympic, Coast, and Nunu.
“These brands have an existing portfolio across different formats with varied strengths in the different regions of the country. Hence, with this campaign, we plan to strengthen the perception of the brands leveraging FrieslandCampina WAMCO’s strong heritage” Banjoko said.
She further explained that FrieslandCampina is committed to bringing affordable and readily available quality dairy products to Nigerians and with the acquisition, it will be able to meet the growing demands of its consumers.
“Coast Milk promises natural goodness and therefore it is a perfect match that will work well with consumers who wish to stick to natural-made products.
“Adults have a myriad of responsibilities to attend to daily and with Olympic milk, they are assured of getting the right nutrients that will cater to their energy needs and active lifestyle,” she said.
“Nunu offers nutrient-rich milk that can conveniently be used by consumers and businesses looking to upgrade their everyday meal and intermediate products. Olympic, Nunu, and Coast milk are back like they never left and we encourage people to look out for the brands in their neighborhood” Banjoko added.
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