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‘Cost-reflective Tariff Coming’

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tax relief
  • ‘Cost-reflective Tariff Coming’

A Cost-reflective tariff is coming in the power sector as the new metering scheme, introduced by the Federal Government, gets underway, the Nigerian Electricity Regulatory Commission(NERC) Chairman, Prof James Momoh, has said.

The new metering arrangement, which culminated in the approval of Meter Asset Providers (MAPs), he said, would reduce the 4.7million metering gap and make it easier for Nigerians to monitor their consumption level.

NERC chairman, who spoke at a training organised for 100 newly recruited graduates by Eko Electricity Distribution Company (EKEDC) in Lagos, said the firm had met its statutory obligation by improving supply of electricity to its customers.

He said the company has attained 100 per cent in the area of providing solutions to the grievances of its customers, urging other power firms to follow suit.

Also, the Ikeja Electric and Port Harcourt Electricity Distribution Companies (PHEDC) have concluded arrangements to provide 440,000meters to customers in five states Lagos, Bayelsa, Rivers, Cross-Rivers and Akwa-Ibom.

While Ikeja Electric will distribute 276,000 meters to customers in Ikodoru and Epe, Port Harcourt Electricity Distribution Company is expected to provide 175,000 meters to customers in Bayelsa, Rivers, Cross-River and Akwa-Ibom states.

Speaking on the sideline of the introduction of New Hampshire Capital to customers of Ikeja Electric at Ikorodu Town Hall, its Chief Executive Officer, Odion Wesley Omongoman, said two firms, New Hampshire Capital and Ikeja Electric are out to achieve a common goal of metering customers under Ikeja jurisdiction.

Omongoman said his firm and Ikeja Electric have agreed to simplify the process of acquiring meters by customers in line with NERC directives.

He said: ”Whether you are paying for meters upfront or instalmentally, we would provide you with meters. Irrespective of the payment options you choose, our duty is to provide you meters and later reach an agreement with customers on how to settle their debts.”

Similarly, Armese Power Solutions Chief Executive Officer, Mr Aslam Khokhar said the company would try its best to meter as many customers as possible.

He said the firm, a metering asset provider to Port Harcourt Electricity Distribution Company had the capacity to meet any volume of meters given it.

He said: ”Port Harcourt Electricity Distribution Company has more than 14 million customers and through our meter manufacturing plant in Akwa-Ibom, we have the capacity to provide meters, no matter the volume.”

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

Airtel Grows Customer Base by 12 Percent to 116.4m in H1

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Airtel Africa Increased Customer Base by 12 Percent to 116.4m in the First Quarter of 2021

Airtel Africa Plc, one of the leading telecommunications companies in Africa, grew customer base by 12 percent to 116.4 million in the first half of the year that ended September 30, 2020.

In the financial results signed by Simon O’Hara, Group Company Secretary, and released through the Nigerian Stock Exchange on Friday, the telecommunication giant reported a 10.7 percent increase in revenue to $1,815 million with second-quarter growth of 14.3 percent.

Similarly, revenue growth in constant currency was 16.4 percent in the first half of the year but 19.6 percent in the second quarter during the peak of COVID-19 locked down.

The report also showed growth was recorded across all regions with Nigeria rising by 20.2 percent. East Africa followed with 21.9 percent growth while Francophone Africa expanded by 4.4 percent.

Services with voice revenue grew by 7 percent with data and mobile money appreciating by 33.4 percent and 30.4 percent, respectively.

Airtel operating profit increased by 19.5 percent to $472 million, representing an increase of 28.3 percent in constant currency. The company’s free cash flow stood at $319 million, up from $210 million filed in the same period of last year.

Raghunath Mandava, chief executive officer, on the trading update: “The first half of our fiscal year included the peak impact of the COVID-19 pandemic in the countries where we operate, as lockdown measures were swiftly implemented to stem the initial spread of contagion. In these unprecedented times, the telecoms industry has emerged as a key and essential service for these economies, allowing customers to work remotely, reduce their travels, keep them connected and allow access to affordable entertainment. In these exceptional circumstances, in the first half, we delivered a strong set of results and as lockdown restrictions eased during Q2 our performance continued to improve with constant currency revenue growth of 19.6%, up 6.6% from the prior quarter.

“Importantly, the fundamentals of our business remain strong and revenue growth further benefitted from the execution of our strategy with a specific focus on expanding distribution in the rural areas, investing in our network and increasing 4G coverage, as well as benefitting from the fact we provide an essential service to consumers. In Q2, performance in our mobile money business also significantly improved with constant currency revenue growth of 33.9%, up 8% from prior quarter, as lockdown restrictions were eased and fees on certain transactions, which had been previously waived, were largely reintroduced. We also continued to enter new partnerships with leading institutions such as WorldRemit, MoneyGram, Standard Chartered Bank, and Mukuru to increase use cases and improve customers’ access to digital
payments and financial services.

We remain alert to the potential for further disruptionsfrom a second wave of COVID-19 across Africa, and the associated actions of governments to minimise contagion. Nevertheless, we are in a strong financial position to capture the opportunities in a fast-growing region that is vastly underpenetrated in terms of mobile and banking services. We remain confident of delivering long term sustained growth for our shareholders.”

Airtel’s full financial year starts from April of the current year and ends in March of the following year.

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Total Currency in Circulation Increased by N56.44bn in September

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Currency in Circulation Rose by N56.44bn in the Month of September to N2.426 trillion

The total currency in circulation increased to N2.426 trillion in the month of September, the Central Bank of Nigeria (CBN) report has shown.

In the report released on Wednesday, the apex bank said the total currency in circulation stood at N2.369 trillion as of the end of August.

The amount then rose by N56.44 billion in September to N2.426 trillion.

A further breakdown of the report revealed that currency in circulation declined by 6 percent in the first quarter of the year to N2.29 trillion, about 7.5 percent below the same quarter of 2019.

The figure stood at N2.35 trillion in May, then rose to N2.39 trillion by the end of July.

While reserve money expanded by 5.9 percent to N12.96 trillion when compared to a 20.7 percent growth recorded in April 2020.

The report also noted that at N10.61 trillion, liabilities to other depository corporations grew 70.5 percent above the previous month’s growth rate of 59.7 percent.

The report said, “The heightened uncertain outlook due to the lockdown encouraged more cash to be held by the public.

“This was evident from the increase in currency in circulation, compared with the level in the preceding month.

“Currency in circulation rose by two per cent to N2.35tn at the end of May 2020, compared with the increase of 0.5 per cent at the end of April 2020.”

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CBN Directs Banks to go After COVID-19 Financial Criminals

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Godwin Emefile

Central Bank Asks Banks to Stay Abreast Frauds and Rising COVID-19 Financial Crimes

The Central Bank of Nigeria has directed all financial institutions in Nigeria to update alert protocols in their Anti-Money Laundering/Combating the Financing of Terrorism monitoring tools, in accordance with emerging trends of rising COVID-19 related financial crimes.

In a circular titled, ‘Administrative letters to all banks and other financial institutions’ issued on Monday and signed by J.M. Gana, the Director, Financial Policy and Regulation Department, the apex bank said changes in business activities and financial transactions due to the shift caused by COVID-19 pandemic have led to the surge in financial crimes globally.

Therefore, it said financial institutions must now adapt quickly and keep abreast of the new emerging financial risks and other developments to arrest this new and emerging ML/TF.

According to the circular, this includes strategic investment in data mining and artificial intelligence software to monitor financial transactions effectively and report as quickly as possible.

The central bank said the Nigerian Financial Intelligence Unit, the central repository of suspicious transactions and other financial information, had released a comprehensive report on STRs and others.

It stated that the NFIU had identified cybercrimes, frauds, counterfeiting and substandard goods, diversion of public funds and misuse of non-government organisations funds as some of the ongoing crimes that banks across the nation need to stay abreast and report.

Other suspicious transactions and red flags identified in the report were some e-commerce companies with little or zero history or internet presence suddenly receiving multiple payments from unrelated third parties.

Similarly, it said individuals with zero or little history of financial transactions receiving multiple payments from unrelated third parties. It also noted that customers who suddenly start delaying in the supply or purchases of medical supplies and payment of goods linked to known brands, yet the beneficiary is an individual, not a corporate company should be flagged.

The measures, the apex bank said were necessary due to the rising numbers of unusual transactions from banks’ customers and unscrupulous individuals.

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