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Discos’ Collections Rise to N831bn in Two Years

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  • Discos’ Collections Rise to N831bn in Two Years

Electricity consumers who are hooked on to the national grid paid N831 billion to the Distribution Companies (Discos) out of about N1.3 billion worth of electricity that was sent to their homes and offices between the second quarter of 2017 (Q2 2017) and first quarter of 2019 (Q1 2019).

According to the records obtained, the 10 Discos were Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano and Port Harcourt. Yola Disco which is now under the management of the federal government having gone back to it on account of a force majeure earlier declared by its private operator, was not covered by the report.

It showed that between the period – Q2 2017 and Q1 2019, the Discos received 52,185 gigawatt hour (GWh) of electricity from the grid and billed their customers for 40,901 GWh of electricity sent to them.

The total worth of the billed electricity to the consumers, the report showed was N1.3 trillion for the period, but N831 billion was realised. It explained the Discos within the period, improved on their revenue collection efficiency, which rose from 62 per cent in Q2 2017 and Q1 2018, to 66 per cent in Q2 2018 and Q1 2019.

“The total energy collection (across the 10 Discos) increased by N61 billion more, as compared to the previous 12 months (+16 per cent). This is mainly due to improved performance (+12 per cent), as well as the incremental energy received (4 per cent). In this quarter, in general, Discos have increased their revenue collection,” the report obtained from the Discos trade association – Association of Nigerian Electricity Distributors (ANED) showed.

“Overall, the ATC&C (Aggregate Technical Commercial and Collection) keeps reducing and reached a new low in February 2019 (47.2 per cent) versus a starting point of 56 per cent, on set of privatisation,” it added.

According to it, in Q1 2019, energy received increased for five Discos but decreased for the other five Discos which were not named in the report.

It equally stated that between 2016 and Q1 2019, the Discos’ average revenue collection efficiency has improved from a low of 47.8 per cent to 68.4 per cent.

“Overall, the amount of revenue collected increased immensely (+16 per cent), as well as energy billed (+7 per cent), which summarises that the performance improvement of Discos is not only due to the benefit of receiving more energy (+4 per cent),” it added.

Furthermore, showing the distribution, the report noted that between Q2 2017 and Q1 2018, the total energy billed by Discos was 19,741GWh which was equivalent to N628 billion, and from which N385 billion was collected. Between Q2 2018 and Q1 2019, the total energy billed was 21,160GW, equivalent to N672 billion, and from which N446 billion was earned.

For Q1 2019, it said the total amount of energy billed was 5,576.8GWh, equivalent to N176.5 billion, and from which N114.6 billion was also collected from consumers.

Based on a moving average, it explained that since July 2016, there had been a gradual rise in both energy received by Discos and, consequently, in the energy billed.

It further stated: “Although the retail tariff has remained unchanged since Feb 2016, the revenue collection has been increased continuously, up by almost N40 billion in March, compared to the average of N24 billion per month in 2016. This is a consequence of improved Disco performance.

“The energy received by ANED´s members have increased by 7 per cent in the last quarter compared to the previous one and in some Discos the increase is above 10 per cent.”

While calling for an improved rapport with the Transmission Company of Nigeria (TCN) on proactive energy management, the Discos in the document stated: “It is important to better understand the reasons behind these variations to avoid decreasing scenarios, while in parallel, there is an urgent need to improve the energy management communications between TCN and Discos on daily basis.

“Until this operational coordination is completed, Discos might face erratic scenarios that negatively affect the evolution of their KPIs (Key Performance Indicators), under their PIPs (Performance Improvement Plans).”

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

FG Plans to Build 10 New Airports in Anambra, Benue, Others – Aviation Minister

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Buhari in Port Harcourt

Aviation Minister Says FG Working on Building 10 New Airports

The Minister of Aviation, Hadi Sirika, on Tuesday, said the Federal Government plans to build 10 airports across the country to improve civil aviation.

The minister made the statement while defending his ministry’s 2021 budget proposals.

Sirika said President Muhammadu Buhari has done justice to the aviation ministry through the ongoing framework and implementation.

He said the administration would construct new airports in Anambra, Benue, Ekiti, Nasarawa, Ebonyi and Gombe States.

He further stated that airports in Kebbi, Osubi and Dutse have been taken over for redevelopment by the Federal Government.

Sirika said, “Consequent upon that roadmap, we have seen aviation grow in 2018 to become the second-fastest-growing sector of the economy.

“Also and by 2019, it became the fastest-growing sector of the economy and increased its GDP contribution.

“From 2015 till now, we’ve seen a lot of growth in civil aviation, the number of airports is increasing.

“So far, about seven airports have been added to the map, some of them completed, some of them under construction.

“There are airports coming up in Benue, Ebonyi, Ekiti, Lafia, Damaturu, Anambra and so on.

“All these show that civil aviation is growing during this administration.

“So, we have about 10 new airports coming up, that is almost half the number of airports we used to have in Nigeria.

“We are adding 50 per cent of the number of airports,” the minister added.

Sirika noted that Nigeria Air, the proposed national carrier, was part of the new roadmap and could be delivered before 2023.

He said, “We are on it. The transaction adviser has brought in the outline business case.

“It is being reviewed by Infrastructure Concession Regulatory Commission, Soon after it finishes, it will go to the Federal Executive Council and it will be approved.

“We will not leave this government without having it in place.”

He defended why Lokoja, Kogi State needs another airport, saying it is an alternative to the Nnamdi Azikiwe International Airport in Abuja.

He said, “Lokoja is an important northern town. It is a cosmopolitan town, it’s a mini Nigeria and it is extremely very important in growth and development of our country.

“We have a lot of agricultural activities there. There is fishery, there is perishable item production and so on.

“So, establishing an airport there is quite apt. For me, it is something we should have done long ago for its importance.”

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Economy

FG Says Over N6 Billion Disbursed to Poor Households in Zamfara

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Over N6 Billion Disbursed to Poor Households in Zamfara

The Federal Government said it has disbursed over N6 billion under the Conditional Cash Transfer (CCT) scheme to poor households in six out of the 14 local governments in Zamfara in 2020.

The Minister of Humanitarian Affairs, Disaster Management and Social Development, Hajiya Sadiya Umar-Farouk disclosed this on Tuesday during the flag off of Grant for Rural Women Project in Gusau.

The minister said the CCT program was created in 2016 to address the deficiencies in capacity and lack of investment in human capital of poor and vulnerable households.

The programme is designed to deliver timely and accessible cash transfers to beneficiary households.

“And sets to support development objectives and priorities, to achieve improvement in health and nutrition, school enrolment and retention, environmental sanitation and empowerment among others,” she explained.

Umar-Faruk said a total of 130,000 beneficiaries from Anka, Bungudu, Birnin Magaji, Kaura Namoda, Tsafe, and Talata Mafara local government areas received between N30,000 to N80,000, depending on the dates the beneficiary enrolled in the programme.

Speaking on the grant for Rural Women, the minister said the programme was introduced to deepen the social inclusion agenda of President Buhari administration that includes lifting 100 million Nigerians out of poverty in 10 years.

It is designed to provide a one-off grant to some of the poorest and most vulnerable women in rural Nigeria.

“A grant of N20,000 will be disbursed to over 150,000 poor rural women across the 36 states of the federation,” she said.

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Economy

Delta State Gov Okowa Presents N378.48 Billion Budget for 2021

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Ifeanyi Okowa Presents N378.48 Billion Proposed Budget for 2021

The Executive Governor of Delta State, Senator (Dr) Ifeanyi Okowa, on Tuesday presented a N378.48 billion budget to the state’s House of Assembly for consideration for the 2021 fiscal year.

The budget christened “Budget of Recovery” appropriated N207.52 billion for Capital Expenditure while Recurrent Expenditure was allocated N171.32 billion.

According to the Governor, capital expenditure accounted for 54.76 percent of the budget while 45.24 percent represented recurrent expenditure.

He explained that the allocations were in line with his administration’s agenda of spending more on projects and programmes that would impact positively on the socio-economic well-being of the people of Delta.

The proposed budget for 2021 is N96.2 billion or 34.05 per cent more than the N282 billion approved for 2020.

The governor said that the 2021 budget proposals reinforced the state government’s commitment to road infrastructure, education, health, job and wealth creation programmes as the principal-drivers of the Stronger Delta agenda.

According to him, N113 billion, representing 89.94 per cent of the capital budget is allocated to the economic sector while N35 billion is allocated to the social sector; the administration sector got 10.93 billion and the regional sector, N42 billion.

“In 2021, we propose to spend N66.66 billion on Road Infrastructure; N6.79 billion on Health; Education will gulp N23.55 billion; Agriculture, N2.04 billion and Water Sector, N1.83 billion.

“Job and Wealth Creation Bureau will gulp N1 Billion and Youth Development, N1.25 billion. These key sectors are very essential in our 2021 budget,” Okowa said.

Okowa also explained that due to the negative impact of COVID-19 on the economy and the world at large, government spending was significantly affected by the global pandemic and that Delta was no exception.

The governor, therefore, stated that “the proposed 2021 Budget for Delta is primarily focused on protecting and supporting our people in a COVID-19 environment, accelerating infrastructural renewal, incentivizing growth, enhancing job creation, engendering social inclusion and developing sustainably.

“Overall, the proposed 2021 Budget is predicated on inclusive economic growth that is sustainable and people-centred, with strengthening fiscal sustainability through increased efficiency in spending, improved revenue mobilization and debt sustainability.

“It also entails improving processes and systems in Public Financial Management, and Monitoring and Evaluation, to bolster better public sector service delivery.”

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