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Category: Economy

  • TCN Transfers Market and System Functions to Newly Established Entity

    TCN Transfers Market and System Functions to Newly Established Entity

    In a bid to revitalize Nigeria’s power sector, President Bola Tinubu, in collaboration with the Nigerian Electricity Regulatory Commission (NERC), has introduced sweeping reforms by unveiling the Nigerian Independent System Operator of Nigeria Limited (NISO). This significant restructuring marks a pivotal moment for the country’s energy landscape.

    The decision was formalized through an official order signed by TCN’s Chairman, Mr. Sanusi Garba, and Vice Chairman, Mr. Muslim Oseni, in Abuja on Saturday.

    Under the directives outlined in the order, TCN will undergo a comprehensive transfer of all market and system operation functions to the newly established NISO.

    This realignment of responsibilities is in accordance with the stipulations set forth in the Electricity Act 2023, aimed at providing a more streamlined approach to the management of Nigeria’s power infrastructure.

    Previously, TCN held critical licenses, including Transmission Service Provider (TSP) and System Operations (SO) licenses issued by NERC. With the inception of NISO, TCN will divest its market and system operation assets and liabilities to the newly formed entity, allowing for a sharper focus on its core transmission functions.

    To facilitate this transition, the Bureau of Public Enterprises (BPE) has been tasked with overseeing the incorporation of a private company limited by shares under the provisions of the Companies and Allied Matters Act (CAMA) by May 31.

    This entity, named the Nigerian Independent System Operator of Nigeria Limited (NISO), will assume full responsibility for market and system operation functions as outlined in the Electricity Act and TCN’s system operation license.

    NISO’s mandate encompasses the efficient management of assets and liabilities associated with market and system operations on behalf of market participants and consumer groups.
    Furthermore, the newly established ISO will play a crucial role in negotiating contracts for ancillary services with independent power producers and generation licensees, ensuring the stability and reliability of Nigeria’s national grid.

  • NDIC Increases Deposit Insurance Coverage For Banks, Mobile Money Operators

    NDIC Increases Deposit Insurance Coverage For Banks, Mobile Money Operators

    The Nigeria Deposit Insurance Corporation (NDIC) has increased deposit insurance coverage for all licensed deposit-taking financial institutions.

    Speaking at a press briefing in Abuja on Thursday, the NDIC Managing Director/Chief Executive, Bello Hassan, said the coverage ensures that depositors will be reimbursed up to a certain limit for their deposits in the event of a bank failure.

    He said the increment applies to Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs) and Mobile Money Operators (MMOs).

    The NDIC boss said by increasing deposit insurance coverage, the corporation is ensuring that the move will strengthen the banking system and encourage further financial inclusion within the country.

    Hassan said the increased deposit insurance coverage levels will take effect immediately, offering Nigerians greater peace of mind when saving their money with licensed financial institutions.

    He said: “Key increases in Deposit Insurance Coverage: Deposit Money Banks (DMBs) coverage has jumped from N500,000 to N5,000,000, providing full coverage for 98.98 per cent of depositors compared to the previous 89.20 per cent.

    “Microfinance Banks (MFBs) coverage has risen from N200,000 to N2,000,000, offering full coverage for 99.27 per cent of depositors (up from 98.76 per cent) and significantly increasing the value of covered deposits (from 14.38 per cent to 34.43 per cent of total deposits).

    “For Primary Mortgage Banks (PMBs), the maximum coverage has been raised from N500,000 to N2,000,000, ensuring full coverage for 99.34 per cent of depositors (up from 97.98 per cent) and boosting the value of covered deposits (from 10.77 per cent to 21.04 per cent of total deposits).

    “Payment Service Banks (PSBs) coverage has been increased from N500,000 to N2,000,000, providing near-complete protection (99.99 per cent) for depositors and raising the value of covered deposits to 43.10 per cent of the total (from 40.60 per cent).

    “For Mobile Money Operators (MMOs), the maximum Pass-through deposit insurance coverage has been raised to N5,000,000 per subscriber per MMO, aligning it with the coverage level for DMBs.

    “Deposit insurance coverage levels for all licensed deposit-taking financial institutions refer to the amount of protection provided to depositors in deposit-taking financial institutions in case the financial institution fails or goes bankrupt.”

  • There Will Be Total Blackout For The Next Three Months If You Reject New Policy – Minister of Power Warns Senate

    There Will Be Total Blackout For The Next Three Months If You Reject New Policy – Minister of Power Warns Senate

    The Minister of Power, Adebayo Adelabu, has warned that there will be a total blackout in Nigeria in the next three months if the proposed electricity tariff hike is not implemented.

    The minister stated this yesterday in Abuja when he appeared before the Senate Committee on Power at an investigative hearing over the recent electricity tariff hike by the Nigerian Electricity Regulatory Commission (NERC).

    This is after the Senate committee, led by Senator Enyinnaya Abaribe, rejected the new tariff regime.

    Adelabu warned that the entire sector would be grounded if the Commission fails to increase the tariff.

    Adelabu said, “The entire sector will be grounded if we don’t increase the tariff. With what we have now in the next three months, the entire country will be in darkness if we don’t increase tariffs.

    “The increment will catapult us to the next level. We are also Nigerians. We are also feeling the impact.”

    He said $10 billion yearly for the next ten years is needed to revive the nation’s power sector and nip in the bud the challenges bedevilling it.

    “For this sector to be revived, the government needs to spend nothing less than 10 billion dollars annually in the next 10 years.

    “This is because of the infrastructure requirement for the stability of the sector. But the government can not afford that. And so we must make this sector attractive to investors and to lenders.

    “So, for us to attract investors and investment, we must make the sector attractive, and the only way it can be made attractive is that there must be commercial pricing.

    “If the value is still at N66 and the government is not paying subsidy, the investors will not come. But now that we have increased the tariff for A Band, there are interests being shown by investors,” he said.

  • Dangote Refinery Gives Update On Diesel Price Reduction

    Dangote Refinery Gives Update On Diesel Price Reduction

    Dangote Petroleum Refinery said its N940 per litre diesel price cut is only applicable to customers buying five million litres and above.

    The Head of Communication, Mr Anthony Chiejina made the clarification in a statement on Tuesday, noting that N970 per litre is for customers buying one million and above.

    Dangote Refinery made its third diesel price cut to N940 and N970 per litre, respectively.

    The company had earlier announced two price cuts which saw the price of diesel drop to N1,000 per litre from N1,600.

    Recall that the entrance of Dangote Refinery into the sale of Automotive Gas Oil, AGO, had impacted the West Africa oil & gas industry.

    On May 22 last year, the 650,000 barrels per day crude oil refinery was commissioned.

    However, the facility is yet to commence the sale of fuel.

    Standard and Poor’s Global Commodities said Dangote Refinery will commence the sale of fuel in the fourth quarter of 2024.

  • FG begins unbundling of DISCOS

    FG begins unbundling of DISCOS

    The Federal Government has announced the unbundling of power distribution companies in Nigeria along state lines.

    This is due to their large sizes which often result in inefficiency and ineffectiveness.

    The Minister of Power, Adebayo Adelabu stated this on Monday when he received the Senate Committee on Power, led by their Chairman, Senator Eyinnaya Abaribe.

    Adelabu said the Tinubu-led administration had commenced the restructuring of Nigeria’s 11 power distribution companies.

    According to him, the privatisation of the firms would not be reversed but stressed that the Discos would be broken into more efficient structures

    The Nigerian government has also ordered the sale of Discos that have been taken over by banks and the Assets Management Corporation of Nigeria from its original investors/owners.

    The likes of Abuja Electricity Distribution Company, AEDC; Benin Electricity Distribution Company, BEDC; Kaduna Electricity Distribution Company, KEDC; and Kano Electricity Distribution Company are all being managed by banks and AMCON.

    AEDC is under the management of UBA, and Fidelity Bank manages BEDC, KEDC and Kano Electricity Distribution Company.

    AMCON is in charge of the Ibadan Electricity Distribution Company.

    This is due to their inability to repay their loans to the financial institutions.

    The Senate Committee on Power said the distribution companies have failed to meet the expectations of Nigerians since they took over the privatised assets over 10 years ago.

    The Minister further revealed that over 100 projects of the Transmission Company of Nigeria have not been completed since 2001, a period of about 23 years.

    “We are unbundling the Discos along state lines. Some of the Discos are too big for efficiency. They are too big for effectiveness. Ibadan Disco covers seven states. It is practically impossible for them to be efficient,” he said.

    “So we are rearranging and restructuring the Discos along state lines so that each state government will know the responsible Disco for their states.

    “Also, the federal and state governments should start exercising their rights in the operation and management of the Discos because we still own 40 per cent in the firms.

    “But we have left it for the private sector operators for too long and they have messed it up. So the government must come back to take over its own right in the Discos. We are also planning to franchise the unserved communities under the Discos.”

    The minister went ahead to state that “we will start seeing regulations about franchising. The fact you are Eko Disco doesn’t mean that you cannot have smaller Discos that are ready to invest in your unserved communities. So we are looking at franchising.”

  • Again, Dangote reduces diesel, aviation fuel prices 

    Again, Dangote reduces diesel, aviation fuel prices 

    Dangote Petroleum Refinery has once more announced a further crash in the prices of diesel and aviation fuel to N940 and N980 per litre, respectively.

    This comes in the wake of its widely celebrated price crash to N1,000 barely two weeks ago.

    The new price of N940 is applicable to customers buying five million litres and above from the refinery, while N970 is for customers buying one million litres and above.

    While speaking on the new development, the Head of Communication, Dangote Group, Anthony Chiejina, pointed out that the new price is in consonance with the company’s commitment to cushion the effect of economic hardship in Nigeria.

    “I can confirm to you that Dangote Petroleum Refinery has entered a strategic partnership with MRS Oil and Gas stations, to ensure that consumers get to buy fuel at affordable price, in all their stations be it Lagos or Maiduguri. You can buy as low as 1 litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates,” Chiejina said.

    He added that the partnership will be extended to other major oil marketers.

    “The essence of this is to ensure that retail buyers do not buy at exorbitant prices. The Dangote Group is committed to ensuring that Nigerians have a better welfare and as such, we are happy to announce these new prices and hope that it would go a long way to cushion the effect of economic challenges in the country,” he stated.

  • CBN sells $10,000 to BDCs at N1,021 per dollar

    CBN sells $10,000 to BDCs at N1,021 per dollar

    The Central Bank of Nigeria, CBN, has approved the sale of an additional 10,000 dollars to 1,583 eligible Bureaux De Change, BDC, operators in the country to meet the demands of the market.

    The CBN’s Director, Trade and Exchange Department, Dr Hassan Mahmud, made this known in a letter addressed to the President, Association of Bureau De Change Operators of Nigeria, ABCON, on Tuesday in Abuja.

    Mahmud said that the CBN would sell to the BDCs at the rate of N1,021 to a dollar.

    “The BDCs are, in turn, to sell to eligible end users at a spread of not more than 1.5 per cent above the purchase price,” he said.

    He directed all eligible BDCs to commence payment of Naira deposit to some designated CBN Naira deposit account numbers.

    “All BDCs are advised to continue to abide by the rules and conditions as stipulated in our earlier operational guidelines,” he added.

    Recall that on April 8, the apex bank approved the sale of 10,000 dollars to 1,588 eligible BDC operators at the rate of N1,101 to the dollar amid efforts to stabilize the Naira at the FX market.

    The development comes amid the recent drop in the value of the Naira against the dollar. From last month to date, the Naira has depreciated four times.

  • Rainstorm Plunges 40 Ogun Communities Into Darkness

    Rainstorm Plunges 40 Ogun Communities Into Darkness

    Forty communities in Ogun State have been plunged into darkness following a rainstorm on Sunday. 

    The downpour which began around midday, destroyed electricity facilities in some parts of the state, leading to a blackout.

    “Due to broken poles occasioned by the heavy downpour at Ota and Mowe, customers in the following communities: lyana lyesi, Osuke Town, Egan Road, lyana Ilogbo, Ijaba, Ijagba, Itele, Lafenwa, Singer, Joju, Alishiba, Oju Ore, Tollgate, Eledi, Akeja, Abebi, Osi Round About, Ota Town, Ota Industrial Estate, Igberen, lju, Atan, Onipanu, Obasanjo, Lusada, Arigba, Odugbe, Ado-Odo, Igbesa, Owode,” the Ibadan Electricity Distribution Company (IBEDC) said in a statement late Sunday.

    “Olokuta, Hanushi, Bamtish Camp Lufiwape, Eltees Farm, August Engineering, Spark Cear Soap Ayetoro, Amazing Grace Oil, Christopher University, Royal Garden Estate, Pentagon Estate, and environs are experiencing power outages”.

    It called on residents of the areas to avoid “contact with the broken poles, saggy wires or any other electrical installation affected by the rain”.

    “Our technical team is working to clear and replace the broken poles and installations to ensure power supply is restored as soon as possible,” IBEDC said.

  • Kenyan Police Arrest Binance Executive Who Escaped From Nigeria

    Kenyan Police Arrest Binance Executive Who Escaped From Nigeria

    The Kenya Police Service has successfully apprehended a senior executive of Binance, Nadeem Anjarwalla, who had been on the run, as efforts to extradite him to Nigeria gain momentum.

    This development was confirmed by government sources on Sunday night, who spoke to Punch under the condition of anonymity due to restrictions on their authority to discuss the matter publicly.

    One of the sources said, “Binance executive, Nadeem Anjarwalla, has been arrested by the Kenya Police Service, and he would be extradited to Nigeria this week by INTERPOL.”

    Another source noted, “As we had said before that Anjarwalla would be extradited, he has been arrested in Kenya, and he’ll be extradited to Nigeria this week.”

    Recall that the Federal Government revealed that it traced Anjarwalla to Kenya, following his escape from lawful custody in Nigeria.

    A source that spoke on the development at the time said, “We have found him. We know where he is; he is in Kenya, and we’re working with the authorities to bring him back to Nigeria.

    “All hands are on the deck, the government and all the security agencies are working hard in conjunction with the Kenyan authorities and INTERPOL, to ensure his return to Nigeria to face the charges brought against him.”

    Meanwhile, the EFCC Chairman, Ola Olukoyede, had in the March edition of its bulletin titled, “EFCC Alert,” confirmed that the commission was working in conjunction with the International Criminal Police Organisation, the United States’ Federal Bureau of Investigation, the governments of the United Kingdom, Northern Ireland, and Kenya to extradite Anjarwalla.

    Olukoyed said, “The takeover of the prosecution of Binance chiefs by the commission is no less a strong message in the direction of EFCC’s resolve to hedge in distortions and disruptions in the country’s forex market.

    “Tax evasion, currency speculation, and money laundering to the tune of $35,400,000 and are at the foundation of the Commission’s five counts against Binance Holdings Limited, Tigran Gambaryan and Nadeem Anjarwalla, the company’s chief executives.

    “While Gambaryan is currently in the Commission’s net, the process of extraditing the fleeing Anjarwalla is revving in full swing. Involved in partnership with the EFCC to nick Anjarwalla in flight are the International Criminal Police Organisation, the United States Federal Bureau of Investigation, the governments of the United Kingdom, Northern Ireland, and Kenya as the clock winds down to his arraignment in absentia alongside the company and Gambaryan.”

  • NNPC’s Mele Kyari Earns Energy Times’ GCEO of the Year Award, Vows Gas Revolution

    NNPC’s Mele Kyari Earns Energy Times’ GCEO of the Year Award, Vows Gas Revolution

    By Doris Israel Ijeoma

    Mele Kyari, Nigerian National Petroleum Corporation Limited (NNPCL)’s Group Chief Executive Officer, has been honoured with the prestigious Energy Times’ GCEO of the Year Award, a testament to his dedication to excellence in the energy sector.

    The accolade recognizes Kyari’s unwavering commitment to transparency, accountability, and outstanding performance.

    At the award ceremony held at Lagos’ Eko Hotel & Suites, NNPC’s Chief Corporate Communications Officer, Mr. Olufemi Soneye, accepted the award on Kyari’s behalf.

    The Energy Times Award Committee praised Kyari’s leadership, citing his pivotal role in NNPC’s success and his contributions to Nigeria’s energy industry.

    In his acceptance speech, Kyari highlighted NNPC’s efforts to transition Nigeria into a gas-powered nation, leveraging the country’s abundant natural gas reserves.

    He outlined key initiatives, including the development of gas infrastructure such as the OB-3 and AKK gas pipelines, as well as strategic partnerships for global gas exports.

    Kyari also emphasized NNPC’s expansion into the power sector, citing investments in independent power plants and plans for new facilities along the AKK pipeline corridor.

    He underscored NNPC’s commitment to sustainable energy solutions and its role in driving Nigeria’s economic growth.

    Dedicating the award to NNPC staff, Kyari expressed gratitude to the Energy Times editorial board for the recognition, pledging to redouble efforts in advancing NNPC’s mission and the Nigerian oil and gas industry.