- Power Grid Suffers Total Collapse, TCN May Expel Discos
The nation’s power grid recorded its eighth total collapse this year on Sunday, plunging consumers across the country into blackout for some hours.
The government-owned Transmission Company of Nigeria, which manages the grid, blamed electricity distribution companies for the system failure, which it said occurred at 9.10 am.
Total generation stood at 3,825 megawatts as of 6.00 am on Sunday, compared to 3,260.9MW on Saturday, the data obtained from the Nigeria Electricity System Operator, an arm of the TCN, showed.
The grid suffered four total collapses in January and one each in February, April and May, according to the system operator.
Enugu Electricity Distribution Plc had announced on its Twitter handle on Sunday afternoon that “the present loss of supply in the entire South-East is as a result of a system collapse which occurred at 09.21 am of today, 30th June, 2019.”
“This is as a result of a fire outbreak on Benin 330KV transmission line reactor. As a result of this unfortunate development, there is zero supply to all customers in our franchise areas as all our injection substations are affected,” it added.
Another Disco, Kaduna Electricity Distribution Plc, also informed its customers about the system failure from the national grid.
“We are currently experiencing a system collapse from the national grid, hence the power outage in our franchise states. Normal supply to our customers will resume as soon as the national grid is back up and stable,” it said on Twitter.
The TCN, in a statement made available to our correspondent around 6.28 pm, said the national grid experienced a system collapse today at 9.10 am due to high voltage following a massive drop of load by the electricity distribution companies.
It said the high voltage also caused a fire incident in the 75MX reactor in the Benin Substation, Sapele Road in Benin City, Edo State.
“The massive load drop led to high voltage in the system, which shattered the lightning arrester in close proximity to the 75MX reactor in Benin Substation. The shattered lightning arrester porcelain hit the reactor bushing, causing a further explosion on the reactor and resulting in a fire outbreak.”
The TCN said the restoration of the grid commenced immediately and as of 1.30pm, bulk power supply to most parts of the nation had been restored.
The company said it had commenced the movement of another reactor to Benin City to replace the burnt reactor and ensure voltage stability in the city as well as prevent a re-occurrence.
It said, “Management would also ensure a review of the entire protection and earthing system nationwide. This is done in addition to the overall upgrading of the system through the TREP programme being financed by multi-lateral donors.
“The installation of three reactors on the Ikot-Ekpene-Ugwuaji–Jos line has reached an advance stage. It is expected that once these three reactors are installed and inaugurated, the grid would be further stabilised. TCN management wishes to assure Nigerians that it is doing everything possible to modernise, upgrade and stabilise the national grid.”
Meanwhile, the TCN has said it may expel some Discos from the market as a result of their inability to provide their security cover.
Last week, the Market Operator, an arm of the TCN, ordered the suspension of Enugu Electricity Distribution Company, Ikeja Electricity Distribution Company and Eko Electricity Distribution Company from the MO-administered markets for failing to renew their security cover.
According to the TCN, security cover when so required of an amount established by Market Operator to serve as a form of guarantee of payment for all amounts due from the participant to the MO.
The Managing Director, TCN, Mr Usman Mohammed, in a telephone interview with our correspondent on Sunday, said Enugu Disco was given a disconnection notice while Ikeja and Eko Discos only got a notice of suspension from the market.
He said if they don’t make good within a certain period of time, the next thing that will happen is that they will be expelled, and when they are expelled, it means that the Nigerian Electricity Regulatory Commission will be notified that those people are incapable of meeting their responsibilities in the market, so NERC should invoke its business continuity regulation to ensure that they are replaced.
“We did not disconnect Eko and Ikeja Discos because the gravity of their offence did not warrant that. But in Enugu, we disconnected some lines. When they (Enugu Disco) make good, they will be restored to the market. But if they don’t, they will go to the next level, which is expulsion.”
More Stimulus is Welcomed – But What’s Needed is Smarter Stimulus
Stock markets are cautiously upbeat that a stimulus package can be agreed in the U.S. before the November 3 election – but even if it does happen, it’s likely to be a “short-lived sticking plaster” that masks the major long-term issue: unemployment.
This is the warning from Nigel Green, CEO and founder of deVere Group, one of the world’s largest independent financial advisory and fintech organizations.
It comes as House Speaker Nancy Pelosi and Secretary Steven Mnuchin spoke again on Tuesday – the deadline imposed by the Speaker – as the two sides try and strike a deal over another significant fiscal stimulus package ahead of the election.
Earlier this month, Republican senators slammed a $1.8 trillion offer made by the Trump administration to the Democrats as too big, an offer Ms Pelosi dismissed as “insufficient.”
Discussions are due to continue on Wednesday upon the Secretary’s return to Washington.
Nigel Green warns: “No doubt, a breakthrough of the deadlock that would allow for more stimulus would provide a lifeline to millions and millions of Americans.
“U.S. and global markets are, generally, cautiously optimistic that a deal can be agreed by the two sides.
“There’s a sentiment that something will have to materialize – and this is fueling markets.
“However, the window of opportunity is closing and it is not yet a done deal.
“If talks collapse, the markets will inevitably be disappointed and there’s likely to be a short-lived sell-off.”
He continues: “Even if Pelosi and Mnuchin can get another massive stimulus package agreed, and U.S. and global markets rise, this is likely to serve only as a sticking plaster.
“A market rally is going to be difficult to be sustained due to the enormous uncertainty created by other factors including the presidential election, a possible looming constitutional crisis in the world’s largest economy, and the growing Covid-19 infections in America and other major economies.”
The deVere CEO goes on to add: “Getting over the political impasse would help boost the economy and deliver much-needed money to Americans, but the major, lasting issue triggered by the pandemic remains: mass unemployment, which will hit demand, growth and investment.
“As such, a swift rebound for the U.S. economy is doubtful as unemployment claims continue to rise.
“That V-shaped recovery talked about by so many? That will be impossible with so many millions facing long-term unemployment.”
Whilst it is certainly positive that unemployment has fallen from 15% in the U.S. to 11% in recent weeks, it should be remembered that this is still at the same rate of the 2008 crash.
In addition, a second wave of soaring unemployment could hit imminently as some support measures wind-down and business’ and households’ savings and resources have been already run-down.
Mr Green concludes: “Near-term support for sure, but a long-term strategy – a multi-year vision – for growth and investment is essential.
“What’s needed is not just more stimulus, but smarter stimulus.”
The Highest Corporation Taxes Around the World and the Main Drivers Behind them
Taxes Pay by Corporation Around the World and the Main Drivers Behind them
While corporation tax rates are influenced by the country’s definition, there’s clearly a pattern with developing countries and emerging economies paying higher rates to sustain the country.
The top five richest countries in the world’s corporation tax are relatively varied, with Luxemburg standing at 27.08%, Norway at 22%, Iceland at 20%, Switzerland at 18% and Ireland at 12.5%. It would appear that some countries’ cultures factor into how much tax they pay. For example, Scandinavian countries are proud to pay higher taxes to contribute to social welfare.
On average, Africa has the highest corporation tax rate throughout the world’s continents at 28.45% and South America, the second highest with an average rate of 27.63%. However, Europe stands at the lowest rate of 20.27%. Does this contradict the claim that developed countries pay higher tax?
OECD explained that corporation tax plays a key part in government revenue. This is particularly true in developing countries, despite the global trend of falling rates since the 1980s. Let’s take a closer look at two continents, South America and Africa, paying the highest corporation tax rates in the world.
South America has most countries in highest corporation tax top 10
According to data analysed, Brazil and Venezuela have the highest corporation tax at 34%, followed closely by Colombia at 33%, and Argentina at 30%, making South America the continent with the most countries in the top 10 who pay the highest corporation tax.
It is unclear whether South America, as an emerging continent, is charging higher taxes in order to raise government revenue or to benefit from businesses that are looking to expand internationally and enter new markets. According to research, South America is becoming a popular choice for business to enter, with strong trade links and an advantageous geographic location. Indeed, South America is a large continent where some countries are business friendly and others are harder to penetrate.
Africa: the continent with the highest average corporation tax
Being the poorest continent in the world, Africa unsurprisingly has the highest average corporation tax at 28.45%. With the highest in this data being Zambia at 35% and the lowest being Libya and Madagascar at 20%, South Africa stands roughly in the middle at 28%, slightly above average for Africa overall. Does this mean that South Africa is the safest bet for business?
South Africa is one of Africa’s largest economies, with 54 diverse countries in terms of political stability, development, growth, and population. As South Africa has been a relatively slow growth area over the years, corporation tax dropped from 34.55% in 2012 to the current rate — but was this effective? GDP in South Africa has fluctuated quite dramatically since the 1960s. Business favours countries with political stability, which is something South Africa doesn’t currently have. Furthermore, South Africa’s government debt to GDP sits roughly in the middle of the continent’s countries — is this influencing their corporate tax rate?
|Puerto Rico||North America||37.5|
|Sri Lanka||Asia Pacific||28|
|New Zealand||Asia Pacific||28|
|South Korea||Asia Pacific||25|
|United States||North America||21|
|Saudi Arabia||Middle East||20|
|Hong Kong||Asia Pacific||16.5|
Lucy Desai is a content writer at QuickBooks, a global company offering the world’s leading accountancy software.
Nigeria’s Crude Oil Production Declined to 1.31mbpd in September
Nigeria’s Crude Oil Output Declined from 1.37mbpd in August to 1.31mbpd in September
The Organisation of the Petroleum Exporting Countries (OPEC) reported that Nigeria’s crude oil production declined by 58,000 barrels per day in the Month of September when compared to the nation’s oil production of August.
In its latest oil market report, the cartel said Nigeria produced 1.37 million barrels per day in the month of August but that number declined by 58,000 to 1.31 million barrels per day in September. Bringing the total decline for the 30 days of september to 1.74 million barrels.
On oil price movement in September, the organisation said prices settled lower in the month under review after four consecutive months of gains.
OPEC Reference Basket declined by 8.1 percent or $3.65 in September to $41.54 per barrel, while it moderated to $40.62 per barrel from the year-to-date.
Commenting on the recent changed in Nigeria’s monetary policy rate, the oil cartel said “the recent cut is a part of the policy to continue supporting the economy that plunged 6.1 per cent in the second quarter hit by the global pandemic.
“Nevertheless, Nigeria’s annual inflation rate surged to the highest rate since March 2018 in August 2020, as it rose to 13.22 per cent year-on-year from 12.82 per in in July.”
Oil prices sustained bullish trend on Thursday after data showed U.S oil inventories declined last week.
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