Connect with us

Economy

Nigerians To Pay More For Electricity As President Buhari Approves Implementation Of New Tariff

Published

on

President Muhammadu Buhari has finally approved the official implementation of cost-reflective tariffs for the Nigerian Electricity Supply Industry.

The new tariff, which will now formally commence on September 1, 2020, was one of the preconditions given by the World Bank for a $1.5bn loan for Nigeria.

Other preconditions include the removal of fuel subsidy and unification of exchange rate, which the Central Bank of Nigeria is implementing.

In January, the Nigerian Electricity Regulatory Commission had announced that there would be an upward review of electricity tariffs across the country from April 1.

However, this was suspended after reports indicated that electricity distribution companies had pushed for a postponement until key areas of disagreement were sorted.

The National Assembly in June persuaded the DisCos to defer the plan till the first quarter of 2021 because of the COVID-19 pandemic on energy consumers.

It was gathered that Buhari set up a committee earlier this month to look at the issues in the Nigerian electricity supply industry and come up with a report on the tariff structure among other recommendations.

The committee was given two weeks to conclude its job due to the urgency involved and was chaired by a former Managing Director of Guaranty Trust Bank, Mr Fola Adeola.

Aside from the former top banker, other members of the committee included Prof Charles Soludo and Dr Doyin Salami among others.

According to the new tariff via a NERC order dated December 31, 2019, Abuja Electricity Distribution Company residential customers R3 that were paying N27.20 per unit will now pay N47.09 and N63.42 by next year.

For the Ikeja Electricity Distribution Company customers, the R3 category paying N26.50 per unit will now pay N36.49 per unit and later N58.

Continue Reading

Economy

CBN Uncovers $2.4b Invalid FOREX Claims

Published

on

CBN Governor Yemi Cardoso

Central Bank of Nigeria (CBN) Governor Yemi Cardoso said the apex bank has discovered $2.4 billion invalid forex outstanding claims pressuring the naira and causing anxiety in the currency market.

Cardoso disclosed this in an interview with Arise Television on Monday.

According to Cardoso, this was uncovered during an audit by the consultant the CBN hired, which exposed a number of dubious transactions.

The CBN Governor stated that the apex bank commissioned Deloitte to look into the FX allegations to provide a true picture of the situation.

Cardoso said, according to the Deloitte assessment, up to $2.4 billion of the backlog consists of fictitious claims, with claimants in certain cases being unable to provide import documentation.

“We had had reasons to believe we needed to take a harder look at these obligations. So we contracted Deloitte management consultants to do a forensics of all these obligations and to actually tell us what was valid and what was not,” Mr Cardoso said.

“The result that came out of this was startling in a great respect. It was startling. We discovered that of the roughly $7 billion, about $2.4 billion had issues, which we believe had no business being there and the infractions on that ranged from so many things, for example not having valid import documents and in some cases entities that do not exist,” he said.

Continue Reading

Economy

We are Determined to Stabilise Forex and Boost Economic Growth. -FG

Published

on

By Christopher Sunday

Minister of Information and National Orientation, Mohammed Idris, has said the Tinubu administration is committed to implementing macroeconomic reforms.
aimed at curbing inflation, easing the cost of living, and stabilising the foreign exchange as part of the broader objective of boosting economic growth.

The Minister stated this on Saturday in Minna, Niger State, at the 2024 Press Week of the Niger State Chapter of the Nigeria Union of Journalists (NUJ).

Represented by the Director General of the Voice of Nigeria, Mallam Jibrin Baba Ndace, the Minister said the year 2024 holds a lot of prospects for Nigerians as some of the promising initiatives of the administration begin to bear fruit.

“Permit me, distinguished invited guests, as chief spokesperson of the Federal
Government of Nigeria, to use this hallowed platform to tell Nigerians, at this early and auspicious time of the year, that 2024 would be a great year for Nigeria as thepolicies of President Bola Ahmed Tinubu under the Renewed Hope Agenda takefirmer roots for the growth of our nation’s economic development, our invaluablehuman assets, and national security.

“The Tinubu administration will continue to implement macroeconomic reforms.
to achieve broad economic objectives of sustained economic growth aimed at
bringing down inflation, easing the cost of living, and stabilising foreign exchange
and job creation, among others,” he said.

Idris said, against the backdrop of the withdrawal of fuel subsidies, liberalising the foreign exchange regime, and the fight against corruption, the Tinubu government is showing fidelity to the rule of law and the independence of institutions, as demonstrated in the recent judgements of the courts.

The Minister explained that the recent Federal Government decision to relocate certain departments of the Central Bank of Nigeria (CBN) and the headquarters of the Federal Airports Authority of Nigeria (FAAN) to Lagos is part of a broader strategy to enhance operational efficiency, streamline processes, ensure a responsive financial system for Nigeria, and cut operations costs. He emphasised that the government’s directive aligns with global best practices and has no political motivation, however wrongly propagated.

The minister assured that no policy of the present administration would put any part of the country in a disadvantageous position. “President Bola Ahmed Tinubu’s commitment to fairness and equitable development, as outlined in his oath of office, ensures that no policy under his administration will disadvantage any region. His dedication to fostering national unity and inclusivity is reflected in policies guided by principles of fairness and equality,” he said.

The Minister, who also used the occasion to enlist the support of the media in the fight against fake news, said the hydra-headed menace of fake news is ravaging the media space. “My dear colleagues, we need to rise against the elements of fake news that are deliberately designed to misinform Nigerians,” he said.

Idris also announced to the gathering that the Federal Government would soon unveil comprehensive details of the National Values Charter, which are aimed at inculcating values in the citizenry.

Continue Reading

Economy

No Plans to Convert Domiciliary Accounts to Naira – FG

Published

on

* Finance Minister Describes Report as Handiwork of Economic Saboteurs

By James Aduku

The Federal government has debunked a media report that it plans to convert foreign exchange in depositors’ domiciliary accounts to naira, describing it as tantamount to economic sabotage.

There had been a viral media report on Saturday to the effect that the Federal Government has perfected plans to convert foreign exchange in domiciliary accounts.

However, the Coordinating Minister of Economy, Wale Edun, in a statement on Saturday, said such reports were false and misleading.

According to Edun: “There is no iota of truth in the claims of Punch Newspaper that the Federal Government plans to convert foreign exchange in depositors’ domiciliary accounts to naira.

“The publication of such falsehood at a time when the government is working to restore economic stability and confidence in the national currency is tantamount to economic sabotage.

“This report in the Punch Newspaper violates the standards of responsible journalism.

“For the avoidance of doubt, I emphasise that depositors’ foreign currency in their domiciliary accounts will not be converted to naira.”

Punch had reported that there were strong indications that the Federal Government was mulling a policy that will result in the conversion of foreign currencies in domiciliary accounts of citizens to naira to stabilise the national currency, which earlier this week recorded its worst performance in history.

It had said that if the Nigerian government goes ahead with the plan, the government will order the conversion of foreign currencies sitting idly in individuals’ and corporate organisations’ domiciliary accounts to naira at a rate to be determined by the Central Bank of Nigeria.

According to top Presidency sources, the move is meant to stabilise the naira, which recorded its biggest fall in the official Nigerian Foreign Exchange Market on Monday, depreciating by 24 per cent to close at N1,348 per dollar.

One of the Presidency sources said that the problem of forex scarcity and the naira fall was an elite issue, adding that the Federal Government would not fold its arms and continue to watch some individuals hoarding foreign currencies at the expense of the naira.

Continue Reading

Archives

Categories

Meta

Advertisement
Advertisement
Advertisement

Trending