Connect with us

Economy

NERC says 62.3% electricity consumers still on estimated billing

Published

on

Electricity: NLC, TUC Condemn Higher Tariff For Non-existent Electricity

…Highlights 8.10m MWh electricity generated in Q4 2019 – NERC***

The Nigerian Electricity Regulatory Commission (NERC), on Saturday said 62.3 per cent of electricity consumers in the country were still on estimated billing as at December 2019.

NERC made this known in its Fourth Quarter 2019 Report which was obtained from its website by News Agency of Nigeria (NAN) in Lagos.

The commission said: “Inadequate metering remains a serious challenge in the industry, with only 3,918,322 (37.77 per cent ) of the total customer population of 10,374,597

metered.

“With 62.37 per cent of the end-use customers on estimated billing, huge collection losses due to customer apathy have posed a serious challenge to the viability and sustainability of the industry.”

It said  in comparison to the third quarter of 2019, the  numbers of registered and metered customers increased by 699,850 (7.23 per cent) and 22,825 (0.59 per cent) respectively.

NERC said the increase in the number of registered customers was attributable to the on-going enumeration exercise by DisCos while the increase in metered customers was due to the roll-out of meters under the Meter Asset Provider (MAP) schemes.

It said: “The commission notes with concern that the additional 22,825 end-use customers’ meters installed during the fourth quarter fell significantly from the 83,768 meters installed during the third quarter.

“This poses risk to the Commission’s goal of closing the metering gap in Nigerian Electricity Supply Industry (NESI) by Dec. 31, 2021.

“Although some MAPs have not fully commenced meter deployments, the low metering recorded during the quarter was partly due to the increase of 35 per cent in import duty on meter components.

NERC said it was already working with the Ministry of Finance, Budget and National Planning toward addressing those issues in order to fast-track meters roll-out.

It said during the period under review, only Abuja, Eko, Enugu, Ikeja, Kaduna, and Port Harcourt DisCos metered additional customers.

According to NERC,  the metering status of the DisCos as at December 2019 is: Benin DisCo, 53.71 per cent;  Abuja,  52.39 per cent; Eko,  46.67 per cent; Ikeja, 40.38 per cent and Jos,  31.71 per cent.

Others are: Port Harcourt, 38.34 per cent; Ibadan, 32.21 per cent; Kaduna,  22.2 per cent; Kano, 18.36 per cent; Enugu , 41.26 per cent and Yola, 18.75 per cent.

The commission said it would continue to monitor the DisCos to ensure total compliance with the MAP regulations.

In the meantime, the Nigerian Electricity Regulatory Commission (NERC) has said that 8.101 million Megawatts-hour (MWh) of electricity was generated in the fourth quarter (Q4) of 2019.

NERC made this known in its Fourth Quarter Report 2019 obtained on Saturday by the News Agency of Nigeria (NAN) in Lagos from its website.

The regulatory agency said the total electricity generated during the fourth quarter of 2019 was 1.46 per cent higher than the energy generated during the preceding quarter.

The commission said: “Within the same quarter, the industry recorded a peak daily generation of 5,157MW.

“The available plant generation units on bar decreased to 63 from the daily average of 66 units recorded in the preceding quarter.

“However, in spite of the decrease in the available generation units in the fourth quarter, the total electric energy generated increased by 1.46 per cent with 5.44 percentage points increase in generation capacity utilisation. “

According to NERC, the improved capacity utilisation is attributed to reduction in constraints such as gas supply shortage, transmission and distribution networks and water management at the hydropower stations.

It also disclosed that there was one incidence of partial system collapse (failure of a section of the grid) during the fourth quarter of 2019, as compared to zero partial system collapse recorded during the third quarter.

Also read:  UN puts Nigeria’s electricity access rate at 57%

The commission disclosed that the resolution of technical and operational constraints in Nigerian Electricity Supply Industry (NESI) remains one of its top priorities.

NERC said it would continue to work on addressing the interface bottlenecks between the 11 electricity Distribution Companies (DisCos) and the Transmission Company of Nigeria (TCN).

It said the move intends to free up part of the stranded generation capacity by addressing the technical constraints inhibiting the flow of energy.

NERC said: “Also, the commission is currently reviewing the Performance Improvement Plans (PIPs) submitted by the DisCos.

“The PIPs, which were prepared following guidelines issued by the commission, cover the period 2020-2025.

“They have an overall objective of ensuring that utilities invest in projects critical to addressing the technical and operational challenges affecting their operational efficiency,” it said.

 

Economy

ILLEGAL EXPORT: Nigeria Signed Asset Agreement With Jersey For Return Of £2.1m- Fagbemi

Published

on

ILLEGAL EXPORT: Nigeria Signed Asset Agreement With Jersey For Return Of £2.1m- Fagbemi

…Secures £20 Million interim costs award, against P&ID

The Federal Government of Nigeria has signed an Asset Sharing Agreement with the Bailiwick of Jersey for the return of 2.1 million pounds proceeds of corruption.

The Attorney-General of the Federation (AGF), Lateef Fagbemi SAN, made this known while presenting the scorecard of his ministry as part of the activities to mark the first anniversary of President Bola Tinubu’s administration.

The minister said that  the signing of the agreement in February this year was in line with the cardinal principle of the present administration in the fight against corruption,

He said President Tinubu has already approved the use of money for the continuation of works on the Abuja-Kano Road project.

Fagbemi said that an efficient justice delivery system is key to ensuring Nigeria’s economic growth and development, as well as ensuring the socio-economic well-being of citizens.

“Effective justice system is measured not only by the numbers of cases which are successfully disposed of but also and more importantly, the strategic measures adopted to avoid litigation.

“Using a combination of effective defence strategies to cases, arbitration, mediation and diligent prosecution of appeal cases, the ministry succeeded in saving the country from huge debt liabilities.

“In the reporting period, a total of 625 cases instituted against the President, Federal Government and its agencies, before States, Federal and ECOWAS Court were served and responded to by the ministry.

“The ministry also received and treated 593 requests for legal advice and petitions from May 2023 till date and in all, we obtained 235 judgments’’.

He noted that the administration had witnessed a landmark decision in an arbitration instituted against Nigeria by Process and Industrial Development Limited (P&ID).

“In that case, a UK commercial court set aside an arbitral award of over 11 billion dollars granted against Nigeria in the United Kingdom for breach of a gas supply and processing agreement.

“So, I am pleased to report that due to concerted efforts of our legal team, Nigeria has been awarded interim costs in the sum of £20 Million against P&ID’’.

Fagbemi noted that the case was a useful lesson that had been learnt as the case had the potential of wiping off the nation’s entire foreign reserves.

He said the issue had led to the development of a Federal Contracts Administration System.

“As noted by the English Court, the genesis of the case is traceable to a flawed contractual agreement that was tainted with fraud’’.

He said that in line with the cardinal principle of the present administration in the fight against corruption, the ministry has achieved success in its International Asset Recovery and Management efforts.

“For the Glencore Settlement, we have concluded negotiation of a Settlement Agreement with Glencore International A.G. wherein Glencore is expected to pay the sum of 50 million dollars as penalty and compensation for certain activities in Nigeria’’.

He noted that the ministry has equally done well in facilitating international cooperation on terrorism financing and other transnational crimes.

“We have gotten 13 convictions in terrorism financing cases and have also successfully concluded 150 mutual legal assistance requests and 12 extradition requests from Law Enforcement Agencies and foreign countries.

“We secured 160 convictions for criminal offences, 87 convictions for terrorism cases, and 3 novel convictions for extremist terrorism actors involved in the radicalisation of children and violence against women. 

Continue Reading

Economy

FG Begins Construction On Lagos-Calabar Coastal Highway Sections 3, 4 –Umahi

Published

on

FG Begins Construction On Lagos-Calabar Coastal Highway Sections 3, 4 –Umahi

…Sokoto to Badagry 1,000 km stretch also receives approval

The Federal Government has announced the immediate flag-off of construction work on sections three and four of the Lagos-Calabar Coastal Highway project, beginning from Calabar.

The Minister of Works, Sen. Dave Umahi, announced an engagement with representatives of communities within the alignment of the road between Eko Atlantic (Chainage Zero) and Eleko inside (Chainage 47.4klm, on Thursday in Lagos.

He said that section three would start from Calabar and section four from Akwa Ibom.

Umahi said, “Let me announce also that Mr President has directed that section three, starting from Calabar and section four is starting from Akwa Ibom should commence immediately; and so, we are in the process of concluding the procurement.

“And for those who have been saying why not start these roads in Calabar, one, the zero point is Lagos and what wrong has Lagos done to these people?

“However, an impartial President of the Federal Republic of Nigeria, Sen. Bola Tinubu, has directed that sections three and four be started from the end of the project. So while this is moving, the other one will be moving.

“I’m sure that sections five and six will also start in places like Port Harcourt and Bayelsa.”

Umahi also announced that the president had approved the commencement of construction work on the road connecting Sokoto to Badagry.

He said: ” Just the last Federal Executive Committee meeting on Monday, Mr President also approved another project; because this road has two spurs, we start the design and procurement of that Sokoto to Badagry.

” It’s a 1,000 km, it’s running through a lot of irrigation, lands and dams where you can have a lot of power generation and its running from Sokoto to Kebbi, Kebbi to Niger, Niger to Kwara, Kwara to Oyo, Oyo to Ogun state, and then to Badagry in Lagos State.”

The minister, who acknowledged potential criticism about the project’s scale and chosen sections, mentioned that section one, 47.7 kilometres, was ambitious for an interstate road project.

He said that the federal government planned to recoup construction costs through tolling and selling land along the road corridors.

The aim, according to him, is to create a scenic route similar to coastal highways in other countries.

Additionally, he said that the return on investment would start immediately after the first section was completed and would come from tolls and land sales along the completed section one.

The minister pointed out that the country loses money daily due to cargo transhipment at Apapa Port.

He explained that Apapa Port’s water depth was insufficient for large ships, forcing them to use deeper ports elsewhere for cargo transfer (transhipment), which incurred millions of dollars on daily basis.

He said that the new roads would act as an evacuation corridor for the Lekki Deep Sea Port to other parts of the country.

Continue Reading

Economy

Hope Rising: Naira Gains N3.31 Against Dollar At Official Market

Published

on

Naira Gains N61.38 Against Dollar At Official Market

…Trades at N1,465.68 to dollar

 The Naira gained N3.31 at the official market on Tuesday, trading at N1,465.68 to the dollar.

Data from the FMDQ Exchange, which oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed a 0.22 percent appreciation for the Naira compared to Monday’s rate of N1,468.99 to the dollar.

The volume of currency traded also increased, with the total daily turnover rising to 268.17 million dollars on Tuesday from 161.41 million dollars on Monday.

At the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,549.00 and N1,401.00 against the dollar.

The Association of Bureau De Change Operators of Nigeria (ABCON) commended the CBN’s reforms for the Naira’s appreciation at the official market.

Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON)

ABCON President, Dr Aminu Gwadabe, urged the CBN to sustain policies benefiting the local currency.

Gwadabe cited multifaceted efforts through fiscal and monetary policies, alongside security agency interventions, as key to the Naira’s recovery.

“Volatility is like runoff water; if not directed, it will direct itself. I am happy to see multiple agencies coming together to confront these challenges,” he said.

Gwadabe called for technological upgrades and collaboration among operators, regulators, the government, and security agencies.

This, he noted, was to improve control over the foreign exchange market and to establish a bylaw to mitigate volatility. 

Continue Reading

Advertisement

Editor’s Pick

Politics