According to data from the Debt Management Office (DMO), the total public debt in Nigeria is an estimated N97.34 trillion ($108.23 billion) as of December 2023.
This figure was an increase of 146% from N39.56 trillion ($95.77 billion) at the end of the previous year.
The major reason for the significant increase is the addition of CBN’s N20 trillion ($48 billion) in Ways and Means lending to the government and about 60% devaluation of naira.
The federal and state governments owe a combination of domestic and foreign debts. Domestic debt is made up of FGN securities, treasury bills, and more recently, CBN’s Ways and Means. On the foreign scene,
Nigeria owes countries like China, France, Germany and Japan (bilateral debts) and multilateral institutions like the World Bank, International Monetary Fund (IMF), Islamic Development Bank (IsDB) and the African Development bank (AfDB).
Domestic Debt
The federal and state government mostly borrows money by issuing bonds to the domestic market in the local currency, the naira. According to the data from the DMO, Nigeria’s total domestic debt is about N59.12 trillion out of which the states owe N5.86 trillion. The biggest sources of domestic debt as of December 2023 are FGN securities, making a total of N59.12 trillion, which make up 40% of Nigeria’s total debt.
FGN Bonds N42.2 trillion (+169.5% YoY)
- These are long term bonds issues by the federal government and mostly used to finance the country’s budget deficit.
- Nigeria’s FGN Bonds increased 169.5% YoY mostly due to the addition of Ways and Means into the FGN Bonds.
- FGN Bonds are traded on the FMDQ, Nigeria’s official market for trading government securities. It is also traded on the NGX, Nigeria premier markets for stocks and bonds.
- Among the holders of Nigeria’s FGN Bonds include institutional investors, retail investors, foreign portfolio investors and domestic investors in general.
Nigeria Treasury Bills N6.5 trillion (+47.5% YoY)
- These are short term securities issued by the government via the central bank.
- Treasury bills tenors are either 91 days, 182 days or 364 days attracting respective interest rates.
- The data reveals Nigeria has a total of N6.5 trillion in Treasury Bills as of December 2023 up from N4.4 trillion recorded same period 2022.
- Among the buyers of Nigeria’s Treasury bills are institutional investors, foreign portfolio investors and high net worth individuals.
Promissory Notes N1.33 trillion (+150.8% YoY)
- Nigeria’s issuance of Promissory Notes increased by 150.8% year-over-year, reaching N1.33 trillion, indicating a robust utilization of this financial instrument.
- Nigerian government offer issue promissory notes to settle arrears, fund infrastructural projects and settle judgement debts.
- This year-over-year jump also underscores the government’s reliance on these instruments to potentially ease liquidity constraints, implying that there may be an increasing number of contractors, pensioners, or other entities to whom the government owes money.
FGN Sukuk Fund N1.09 trillion (+47.1% YoY)
- FGN Sukuk Fund in Nigeria grows to N1.09 trillion, an increase of 47.1% compared to the previous year’s N742.56 billion.
- Sukuk bonds are usually used to funding for infrastructure projects like roads and bridges in the country.
- Funds raised by the DMO through the different Sukuks have been used to facilitate the construction and rehabilitation of over 4000 kilometers of roads and bridges in Nigeria.
FGN Saving Bonds N39.18 billion (+42.4% YoY)
- Nigeria’s FGN Saving Bonds rise to N39.18 billion, an increase of 42.4% increase year-over-year.
- It reflects greater public investment in government-backed savings, and indicates confidence in federal savings instruments.
- The DMO offers savings bonds monthly to interested investors.
Foreign Debt
The latest data as of December 2024, confirms Nigeria’s total external debt balance is $42.5 billion (N38.22 trillion), with states owing $4.61 billion (N4.15 trillion)
Islamic Development Bank $238.17 million (+70.01% YoY)
- The Islamic Development Bank (IsDB) is a multilateral creditor.
- It has significantly increased its lending to $238.17 million as of December 23, marking a substantial year-over-year surge of 70.10% from the previous $140 million.
- This notable rise reflects the bank’s growing engagement and support for developmental projects within its member countries.
Africa Growing Together Fund $23.35 million (+28.50% YoY)
- Under the multilateral category, the Africa Growing Together Fund is managed by the African Development Bank (AfDB)
- It saw a positive change as the fund’s contribution grew from $18.17 million to $23.35 million, an encouraging 28.50% increase year-over-year.
- This uptick signals an expanded commitment to fostering sustainable growth on the continent.
Exim Bank of China $5.17 billion (+20.30% YoY)
- In the bilateral category, the Exim Bank of China continues to play a crucial role in financing development, with its loans rising to $5.17 billion, up by 20.30% from the previous year’s $4,293.63 million.
- This increase underscores the strengthening financial relationship between China and its partner nations, with a focus on long-term investments in infrastructure and development.
- Chinese loans have been used for critical infrastructures, especially in the transportation sectors. For instance, the loans have been used to fund a number of railway projects in Nigeria.
- China is owed the highest with about about 86.7% of the total owed to countries.
International Development Association $14.96 billion (+11.30% YoY)
- The International Development Association (IDA) is a part of the World Bank Group.
- Classified under multilateral debt, it has increased its financial support to $14.96 billion, marking an 11.30% increase from $13.45 billion the previous year.
- The IDA’s consistent lending growth indicates sustained support for poverty reduction strategies and economic development programs.
International Fund For Agricultural Development $277.4 million (+9.80% YoY)
- The International Fund For Agricultural Development (IFAD), also a multilateral entity, has a lending increase to $277.4 million, a 9.80% rise from $252.74 million.
- This increment demonstrates the IFAD’s ongoing commitment to agricultural development and rural poverty reduction, emphasizing the importance of the agricultural sector in driving economic progress and food security.
What this means: Nigeria’s total public debt of about N97.34 trillion is about 42% of the country’s gross domestic product (GDP), which according to international standards is well within limits but above Nigeria’ self-imposed limit of 40%.
- More importantly, Nigeria is largely exposed to debts dominated in naira, with about 61% of the debts in local currency.
- This effectively means the Nigerian government has a moderate grasp and control over how it manages its domestic debts. It can, for example, be in an unlikely situation where it is unable to pay down local debts and when due, print more naira to meet this obligation.
- About 39% of the total value of debts are in foreign currency. Most of the debts are also medium to long-term Eurobonds and owed to diverse creditors. The DMO recently noted that a significant portion (63.79%) of its external debt is derived from loans from multilateral and bilateral lenders. These loans are primarily concessional or semi-concessional, indicating efforts to manage the debt burden effectively.
- While this is a manageable figure, it is more than Nigeria’s external reserves and is becoming expensive to service.
Nigeria is not in any favorable position to take on more foreign debts at the current rates considering the state of government revenues and the devaluation of naira. However, to meet its large budget deficits, it is likely to keep borrowing, especially by issuing more FGN securities.
[Nairametrics]
The average ‘Band A’ customer in Nigeria will now need as much as N170,000 for electricity per month, instead of the average of N50,000 that they were paying before now.
This follows the approval of a 240 per cent increase in the tariff of ‘Band A’ power customers from N66 per kilowatt hour (KwH) to N225/KwH starting from this month.
The Nigerian Electricity Regulatory Commission (NERC) yesterday approved an increase in the rate paid per Kwh of electricity from about N66 to N225 for the various distribution companies (DisCos) in the country.
Vice chairman of NERC, Musliu Oseni, speaking at a press briefing in Abuja on Wednesday, however, said the increase in tariff will only affect customers enjoying 20-hour power supply and above across the country. Other customers in Bands B, C, D and E who consume less than 20 hours of electricity per day are not affected by the increase.
NERC also stated that only a fraction of the over 3,000 DisCos’ feeders, that is fewer than 481 feeders, will be impacted, and this represents 15 per cent of the over 12 million electricity customers captured in the Nigerian Electricity Supply Industry (NESI).
Oseni also revealed that NERC had also ordered that the majority of the feeders which did not previously meet the 20-hour supply threshold be downgraded to lower bands.
“We currently have over 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 per cent of the feeders now qualifies as Band A.
“The commission, using technology, discovered that many of the feeders that the Electricity Distribution Companies currently brandish as Band A are not meeting the required service and as such the feeders were ordered to be downgraded immediately as a way of protecting consumers,” he said.
According to him, as part of enforcement mechanisms to ensure that areas affected by the review get the 20 hours supply, DisCos have been mandated to set up rapid response teams in locations where the feeders are located.
“This is to ensure that the customers can have access to the DisCos. They have also been mandated to publish the contact of the rapid response team where the customers are located.
“Failure to meet the commitment for seven consecutive days, the feeder will be downgraded immediately to the service level the DisCo is able to provide electricity to the feeder,” he said.
Oseni said where a DisCo failed to meet the commitment for two days, by the third day at 10am, the company must publish an explanation also via bulk SMS contacting the affected consumers on the feeder.
“They should explain why they could not meet the service for the two days and also submit the explanation to the commission,” he said.
LEADERSHIP reports that the Labour associations and the concerned public had advised the government not to remove electricity subsidy as canvassed by the International Monetary Fund (IMF).
In its recent report entitled ‘IMF Executive Board Concludes Post Financing Assessment with Nigeria,’ the IMF reiterated the importance of eliminating the subsidies to redirect resources towards more targeted and impactful social welfare programmes.
Amidst the prevailing cost-of-living crisis, the IMF proposed targeted social transfers to provide temporary assistance to the most vulnerable segments of the Nigerian population.
LEADERSHIP reported that the government may have concluded plans to hike electricity tariff to relieve pressure on fiscal spending. The federal government had now reduced electricity subsidies for 15 per cent of consumers to reduce its N3.3 trillion ($2.6 billion) cost, part of a series of reforms to ease pressure on public finances.
With the recent price hike, LEADERSHIP analysis indicates that an average Band ‘A’ consumer with the following appliances: one deep freezer, one fridge, three fans, two air conditioners, 15 bulbs, one pressing iron, one microwave oven and one electric kettle, who needed an average of N50,000 monthly to power his or her appliances before now, will now need N170,000 on the average to power his home, due to the new 240.9 per cent increase in tariff.
Also, the N50,000 electricity expenses, which could previously provide 757.57KwH or units, will now purchase only 222.2KwH or units.
Justifying this extra charges which will put further strain on the finances of many Nigerians, the NERC explained that these premium customers can now comfortably reduce or completely do away with their expenses on diesel and petrol generators as they will be enjoying quality power supply of 20 hours or more.
Oseni also gave assurance that where the stipulated hours are not fulfilled by the DisCos, the customers will be downgraded to lower bands.
Reacting to the new tariff regime, Labour groups and electricity consumers have frowned at the decision of the federal government to hike electricity tariffs for customers in Band A across the country.
This is even as Nigeria’s manufacturing sector is considering establishing its own power generation facility to cushion the effect of the new tariff announced by the federal government.
While the leadership of Nigeria Labour Congress (NLC) has warned the federal government against plunging Nigerians into further hardship amidst the current cost of living crisis, electricity consumers, especially Small and Medium Enterprises (SMEs) have said such increase in electricity tariffs will lead to higher operational costs, coupled with the fact that so many goods and services are already on the high side at the moment.
NLC said additional hike in electricity tariff despite the poor supply at this critical time will not be a good decision.
The union noted that, with Nigerians trying to survive the current economic realities, a good government ought to think of how to address the their immediate needs rather than embarking on an over 300 per cent hike in electricity tariff.
NLC acting deputy general secretary, Comrade Ismail Bello, in a chat with LEADERSHIP, reiterated the earlier call by Labour against privatisation of the sector.
He said, “What is happening now is reconfirmation of what we told the general public and federal government during the privatisation period – that privatisation was not the solution to the problem in the sector.
“During the clamour for the privatisation, we told the government the ills of privatisation but they went ahead against the wish of Labour. We then warned the government that privatisation without good services will have effects on the population.”
Comrade Bello called on the government to have a rethink on the hike as it will add additional burden on the already suffering citizens, and push more Nigerians under the poverty bar.
‘What Nigerians need most at this period is to address the current economic realities rather than pushing them into more hardship with further hike in electricity tariff,’ he said.
Speaking with LEADERSHIP yesterday, the immediate past chairman of the Apapa branch of the Manufacturers Association of Nigeria (MAN), Frank Onyebu said that, already, manufacturers are incapacitated by irregular supply which makes in-country produced goods not competitive. He stated that the decision is ill-timed and insensitive given the prevailing economic situation in the country.
According to him, stakeholders were not properly carried along in the hurried decision, and the manufacturers’ association may have no option but to fast-track the establishment of its power generation facilities.
According to him, since the government is not considering the plight of the informal sector, they will take strategic steps to support their businesses.
He recalled that the International Monetary Fund (IMF) had been pushing for the hike which had met resistance from Nigerians but lamented the government had chosen to move along in that direction.
Onyebu, who is also the managing director of Universal Luggage Limited, said corruption is endemic in the management of electricity and petroleum industries.
Government, he said, should rather begin to think of how to boost food production and deploy infrastructure to support economic activities, noting that there is nothing to signify that money realised from petrol subsidy removal has been well utilised whereas the cost of running government is rising daily.
In his reaction, the convener of PowerUp Nigeria, Adetayo Adegbemle, said the increment is a long time coming.
“We have spoken so much about the federal government not being able to continue to carry the huge subsidy on electricity, and this is them acknowledging everything we have been telling them,” he said.
According to Adegbemle, the hike is not about helping the distribution companies, but it is about appropriate pricing for electricity.
He argued that this pricing is also along the whole value chain.
“You will recall that gas pricing also recently changed, so there’s no way the price of electricity will remain the same, especially with all macroeconomic indices having also increased.”
“We also need to understand that the power sector is mostly a private concern now, and it is no longer a government utility; so appropriate pricing is needed for us to see the growth of the industry,” he noted.
On adequate metering, he said the regulatory commission spoke about metering initiatives by the government, and at this point it is important that these metering initiatives are pushed through.
“We are also asking that institutional financing should be encouraged through regulations, maybe amending the MAP Regulations so that the huge metering gap can be closed up,” he added.
On his part, the chief executive officer (CEO) of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said the power sector issue had become a major conundrum in the economy, stating that there is a major funding and liquidity crisis which is posing significant risks to investments in the electricity value chain.
“Costs across the chain have been rising as a result of the multiple macroeconomic headwinds. Meanwhile, the system is not generating the desired liquidity to match the escalating costs. Tariff review is thus an inevitability, but a 300 per cent increase in one fell swoop is difficult to justify,” he said.
He, however, expressed relief that the increase is not across board as only 15 per cent of electricity consumers are affected, targeting the segment with the highest ability to pay, which reflects some attributes of equity in pricing.
Dr Yusuf pointed out fundamental issues that need to be addressed in the electricity value chain.
“There are issues of technical and commercial losses which are yet to be addressed. These are inefficiency costs that consumers are compelled or expected to pay for as part of the cost recovery argument. And these costs are in billions of naira.
“There is also the exploitative practice of estimated billing. Millions of electricity consumers are yet to be metered,” he stated.
He noted that there is the problem of over centralisation of the power supply through the national grid model, saying there are capacity issues with some of the electricity distribution companies which contribute to the lapses in electricity delivery outcomes.
“The energy mix programme is yet to gain an impressive traction. It is important to fix these fundamental issues in the power sector. Fiscal policy measures should be immediately deployed to reduce costs across the entire electricity value chain,” he added.
A consumer, Sylvanus Okpara’ stated that for small and medium enterprises (SMEs), an increase in electricity tariffs will lead to higher operational costs coupled with the fact that prices of commodities are on the high side at the moment.
“This will have an adverse impact on their businesses, competitiveness and profitability, potentially leading to job cuts or reduced expansion opportunities,” he said.
He urged the government to ensure that vulnerable populations are not disproportionately affected, even as he decried the suddenness of government policies.
A project manager, Adeniyi Julius, noted that the increment will affect low-income families who find themselves in the category of those that would be affected as they are already financially strained.
According to him, “Low-income families may find it challenging to cope with higher electricity bills. This could lead to decreased usage of electrical appliances, affecting their quality of life and productivity.”
He, however, said the social and political implications cannot be ruled out as Nigerians are going through a lot.
“Electricity is a basic necessity, and any perceived unfairness in tariff increases can lead to public discontent and protests,” he stressed.
Similarly, a resident of Gbagada, Lagos, Blessing Oladipo, said she was not in support of the increase in the electricity tariff.
She queried “Is it the light that is almost nonexistent they are increasing the amount per kilowatt? I don’t even know what they are trying to do.
“For hours and days, we could not see a blink of light. We use prepaid metres. Since the beginning of February, we have hardly seen light. Phones and other appliances will be off for hours without a power source. I don’t know, if you ask others their story may be different, but for me, that has been my experience, and I do not buy into it.”
Also, an Ogun State resident, Ola Michael said increasing the electricity tariff is not a prudent decision at present.
“It would place undue strain on the populace given the current state of the economy. Furthermore, the inadequate lighting situation is unlikely to encourage compliance with any proposed price hike,” he said.
[Leadership]
Three residents of Takum town in Taraba State have lost their lives following a severe windstorm that struck the area twice in two days.
The first incident, according to a resident, Mallam Maiwada Takum, occurred on Tuesday evening, causing extensive damage to residential, commercial, school and office buildings.
Takum said the weather initially brought heavy rainfall, followed by a powerful windstorm that lasted for over an hour and a half.
“The impact was devastating, with some buildings collapsing and many people trapped. Flying debris, including zinc sheets, caused injuries to many residents,” he said.
Yakubu Adamu, another resident, described the windstorm as highly destructive, resulting in significant damage to property and infrastructure, in addition to the loss of lives.
He said three fatalities had been confirmed, and many others sustained injuries.
“The number of casualties and injuries may rise as rescue and recovery efforts continue,” he added.
James Gangum called for urgent assistance from the state government and the National Emergency Management Agency (NEMA) to support those affected by the windstorm.
On Wednesday, another powerful windstorm struck Takum town, causing further destruction to buildings and injuring many people.
The windstorm, accompanied by heavy rainfall, started shortly after Governor Agbu Kefas entered the town to inspect the damage caused by the earlier windstorm on Tuesday evening.
It was gathered that the storm, which began around 2:30 pm on Wednesday, led to the destruction of numerous buildings, including residential homes, schools, electric poles, and trees.
The second incident has hampered the governor’s efforts to assess the previous day’s damage caused by the windstorm.
Mr Emmanuel Bello, the Senior Assistant to Governor Agbu Kefas on Media and Digital Communication, said the governor had entered Takum to inspect the damage caused by the windstorm and that the town experienced another heavy rainfall.
Also, one person has been reported killed and several others injured by a windstorm that also destroyed over 100 houses in Agbashi community, Doma Local Government Area of Nasarawa State.
The Vice Chairman of Doma LGA, John Bako-Ari, confirmed the incident, stating that it occurred on Tuesday evening.
According to Bako-Ari, the windstorm caused extensive damage, including the destruction of over 100 residential houses, the Agbashi Central mosque, part of Pilot Primary School Agbashi, and various other public infrastructure.
Mr Anthony Oshinyeka, the acting Chairman of Agbashi Development Association (ADA), expressed sadness over the incident and the severe impact on the Bassa settlement in Iponu, where one person died and seven others were injured.
Oshinyeka called for urgent government intervention to assist the affected residents.
He specifically requested the immediate release of relief materials and medical aid by the government and charitable individuals to support the affected communities.
[DailyTrust]
Following the approval of a 250 per cent electricity tariff hike by the Nigerian Electricity Regulatory Commission on Wednesday, DAILY POST outlines what Nigerians should know about the hike.
Recall that NERC approved N225 per Kilowatt for ‘Band A’ electricity customers in Nigeria.
The development represents a significant shift from electricity subsidy in the Nigeria Electricity Supply Industry amid persistent epileptic power supply nationwide.
Customers Affected by Hike
NERC said that only Band A customers received at least 20 hours of power supplies from the eleven electricity distribution companies.
According to the Vice Chairman of NERC, Musiliu Oseni, only 15 per of the 12.12 million electricity customers in Nigeria are affected.
He explained that the tariff hike would not affect customers on B, C, D, and E, having less than 20 hours of power supply.
Implication of New Electricity Tariff
The hike implies that electricity consumers under Band A will pay 250 per cent more to get a power supply.
This means a complete electricity subsidy removal for customers under Band A.
Band A customers fall within 15 per cent of households in Urban areas in Nigeria.
According to NERC, Band A customers consume 40 per cent of electricity in the country.
However, the hike will not lead to an improvement in the electricity supply to the affected customers.
Date of hike commencement
According to the new tariff order, Discos commenced the implementation of the new electricity tariff on Wednesday, 3rd April 2024.
This means customers under Band A have begun paying 300 per cent more for electricity.
Meanwhile, since January 2024, customers across all bands have suffered epileptic power supply in Nigeria.
The Minister of Power, Adebayo Adelabu, blamed gas constraints for the erratic power supply in Nigeria.
The Federal Government plans to begin the issuance of domestic foreign currency-denominated bonds from this quarter, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said yesterday.
A Reuters report quoted the minister as speaking at a parley with business leaders in Lagos.
The government move is expected to herald domestic issuance of similar bonds by companies and sub-nationals, a plan already given provisional approval by the country’s apex capital regulator.
The sovereign domestic foreign currency issuance aligns with government’s move to attract more forex inflows to stabilise the naira. Dollar shortages have had significant adverse impact on the naira.
Edun told his audience that the government would seek to sell forex bonds to Nigerians at home and abroad who, “because of lack of faith in the currency, have decided to try to hold and save in dollars.”
“All the funds in the diaspora, we are targeting them. There are all these funds that you have brought into your (local foreign currency) accounts, we are targeting them,” said Edun.
The minister said President Bola Ahmed Tinubu in October 2023 signed executive orders to allow domestic issuance of instruments in foreign currency and also allow all cash outside the banking system to be brought into the banks.
He said that the government had not issued the bonds earlier because it sought to first build confidence in its fiscal policy and gain the trust of citizens who are sceptical of government policies.
Nigeria spends around 78 per cent of its revenue on debt servicing and the government has vowed to cut this to around 50 per cent.
“When they say what keeps you awake at night, I will say paying the debt service (cost),” said Edun.
Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) had given a provisional “no-objection” to the proposal to allow companies and governments to undertake dollar-denominated listings on the Nigerian stock market.
The proposal, being pushed by the Nigerian Exchange (NGX), involves creation of a new listing platform for high-valued issuers to raise capital through dollar-denominated debts and equities issuances.
The proposal is considered as one of the quick-interventions to bolster the country’s foreign exchange (forex) position by exploring alternative sources and redirecting remittances and informal sources to a formal market.
Securities and Exchange Commission (SEC) Director-General Lamido Yuguda said the apex regulator has “no problem” with the proposal for dollar-denominated listings by qualified issuers.
According to him, the basic premise of regulation is full disclosure and demonstrated ability of an issuer to meet the required obligations imposed by the issuance.
He said SEC would treat such dollar-denominated listings by companies or governments on the same basis of the ability to meet the required obligations as contained in the issuance documents, and in line with extant rules at the capital market.
Lamido said investors’ protection is deeply ingrained in all regulatory consideration by the Commission as it continues to explore ways to further deepen the capital market.
The listing of dollar-denominated bonds and shares at the Nigerian stock market is targeted at easing access to forex for select companies, especially high-valued companies that require substantial forex for their operations.
Under the proposed two-phased plan, the NGX plans to start with quotation of dollar-denominated debt issues such as bonds and then move to listing of dollar-based ordinary shares and other quasi-equities.
The provisional approval by SEC is a major boost for the NGX forex proposal.
NGX Chief Executive Officer (CEO) Temi Popoola said the Exchange would work with the SEC to create the required regulatory framework for the dollar-based listing.
Changes to listing regulations can be achieved within a “relatively short time”, Popoola said.
He explained that the Exchange was banking on the market-oriented stance and reforms of the Tinubu administration to push the dollar-listing proposal through.
Popoola said the Exchange would be targeting companies operating from the special economic free trade zones and those earning foreign currency
The primary objective, he noted, is to enable these companies to issue bonds denominated in dollars and eventually offer equity in dollars.
“It could potentially address the challenges posed by fluctuations in foreign currency,” Popoola said in an interview with Bloomberg.
Bloomberg reported that companies Nigeria consistently cite getting access to the dollars they need for raw materials as their biggest challenge.
The NGX also plans to work with SEC to initiate a framework that allows companies with home listing to pay dividends in dollars. Few companies with dual listings already pay dividends in dollars.
The NGX, which did not give a timeline for the launching of the plan, said government’s willingness to consider market reforms increases the prospect of success.
“Given the proactive stance of the current administration, it is reasonable to anticipate that these objectives can be achieved,” Popoola told Bloomberg.
He pointed out that both retail and institutional investors have “substantial” amounts of dollars that domestic capital markets can tap to encourage more local listings.
“If the target companies cannot access dollars within our market, many of them may opt to list abroad,” he said.
[TheNation]
Some communities in Abuja, Lagos and Nasarawa are currently experiencing power outages due to technical glitches.
The Ikeja Electricity Distribution Company on Tuesday said the service disruption was due to significant load restrictions across many of its transmission load centres.
According to the power distribution firm, the transmission stations affected include Oworo, Maryland, Itire, Isolo, Ogba, Alausa, Ejigbo, Alimosho and others.
“The current service disruption you are encountering is a result of significant load restrictions across many of our transmission load centres, particularly impacting:
“Oworo TS, Maryland TS, Itire TS, Isolo TS, Ogba TS, Alausa TS, Ejigbo TS, Alimosho TS, Ilupeju TS, Ayobo TS.
“We apologise for any inconvenience caused. We are actively collaborating with relevant stakeholders to restore normal operations,” the Ikeja DisCo said.
In the same vein, the Abuja Electricity Distribution Company informed its customers in Nasarawa that they were in darkness after windstorms brought down transmission lines.
Also, some areas in the FCT were said to be in darkness due to a technical fault.
“This is to notify residents in Nasarawa State: Uke, Gidan Zakara, Gora, Auta-Baleifi, Tukur Farm, CS Farm, Masaka, Keffi GRA, Luvu, Dunamis Community 1&2, Dadin Kowa, Keffi and its environs that the power outage currently being experienced is due to damage to the lines serving these areas, caused by strong winds.
[Punch]
The Nigeria Labour Congress (NLC) and some civil society organisations (CSOs) have kicked against the new hike in electricity tariff in the country.
Those who spoke to Daily Trust yesterday said all the reasons given by government officials on the increase were not tenable, saying even in advanced societies, citizens enjoy subsidies on some basic necessities like fuel and electricity.
Stunned by thousands of storks flying over the sky in Gia Viễn dike, Ninh Bình - Nếm TV
The Nigerian Electricity Regulatory Commission (NERC) Wednesday announced a tariff increment from N68 kilowatt hour (kwh) to N225 kwh.
The commission said the increment was made following consultations with the 11 electricity distribution companies (Discos) as well as the inability of the federal government to pay over N2.9 trillion that would accrue by the end of 2024 as electricity subsidy for failure to enable cost reflective tariff.
With this tariff hike, consumers under the Band A feeders and enjoying an average of 20 hours of power supply daily will pay about N135, 000 monthly.
At a press conference in Abuja, NERC’s Vice Chairman, Musiliu Oseni, said the increase would affect only 15 per cent of the 12 million electricity consumers.
He said the commission had downgraded some customers on the Band A to Band B and C due to the non-fulfilment of the required hours of electricity provided by the electricity distribution companies.
Oseni said the review would not affect customers on the other bands, which vary from B to E.
He, however, said the increase of tariff for Band A customers would bring some incentives to ensure they would not be short-changed by the Discos.
“There are targets that have been provided for the distribution companies, which the commission will monitor and review from time to time to ensure the migration of other customers for better service.
“As part of the enforcement mechanism, the rate, which will be paid, which is N225 is just about three times the existing rate, requires the customers to get the service.
“We will be using technology to ensure that we get access directly to the distribution system and it will be gotten from the meters installed on the feeders.
“Secondly, the order provides that the DisCos must publish the seven-day rolling average of services delivery on each of the feeders on their website,” he added.
He said as part of the enforcement and monitoring mechanisms, each Disco had been mandated to set up a response team in locations of feeders that would be affected in the rate review.
“This is for the customers to have access to near real time response form the company. The discos have been urged to publish the contact of the head of the response team,” Oseni said.
He said failure to meet the service commitment for seven consecutive days, would make the feeder to be downgraded immediately to the service level the Disco is able to provide.
“The other provision is that where a DisCos failed to make the service commitment for two consecutive days, on the third day by 10 am, the DisCos must publish an explanation via bulk SMS to contact the affected customers on the feeder and provide explanation on why it is unable to provide the service required for two days.
“It will also submit to the commission the explanation and update on the commitment to restore the service.”
He said when a DisCos failed to meet the service level for a month, it would downgrade the feeders and pay compensation to the customers.
Why tariff was increased – NERC
NERC’s Commissioner, Planning Research and Strategy, Yusuf Ali, said the impact of gas price and the unification of naira necessitated the review of the tariff.
He said in January this year alone, the electricity subsidy was N240 billion.
He said: “If we multiply that by 12 (months), it will lead to a subsidy margin of N2.9 trillion”.
Now, the approved appropriation for Nigeria is N27 trillion, if we take N2.9 trillion out of that, it is way more than 10 per cent of the budget.”
NLC, CSOs kick
The NLC, in a chat with Daily Trust, described the new electricity tariff increment as insensitive and callous.
It said this would further impoverish the already pauperised Nigerians battling the hardship caused by the fuel subsidy removal.
The Head of Information at the NLC headquarters, Benson Upah, said the labour would take a position on the “chaotic” policy after appropriate organs of the movement meet.
“The government’s decision is not only insensitive, it is callous. It further pauperises consumers, especially workers whose wages are fixed and insufficient.
“It similarly makes the operating environment more hostile for manufacturers with potential for an astronomical rise in cost of goods and services or in the worst-case scenario, more closures and loss of jobs.
“The only people who stand to gain from this mindless social violence against the people are the World Bank and IMF. Pity! We will get back to you on that (next step) after the appropriate organs decide.”
CSOs speak
The Executive Director, Resource Centre for Human Rights and Civic Education (CHRICED), Comrade Ibrahim Zikirullahi, once again slammed the federal government for increasing the electricity tariffs without consulting relevant stakeholders, “Especially in light of the ongoing hardships caused by the removal of fuel subsidy and the instability of the Naira.”
He alleged that similar to the unilateral removal of petrol subsidy, the government had demonstrated a lack of concern for the welfare of the people in its policies.
“In a democratic society, it is expected that the government should prioritise the interests of the people, but when this principle is disregarded, it signifies a regression towards a dictatorial era. In fact, the APC has consistently exhibited an authoritarian political culture, which can be traced back to the General Buhari regime.
“This authoritarian culture has now permeated all aspects of social relations in Nigeria, resulting in widespread insecurity, high levels of unemployment, rampant poverty, and the rapid depreciation of the naira.
“We have now reached a critical juncture where the people must take charge of their own survival,” he stated.
On his part, Country Director, ActionAid Nigeria, Andrew Mamedu, said the new tariff hike would place “An unbearable burden on already struggling Nigerian households, particularly low-income families and vulnerable communities and SMEs.”
According to him, it is important for the government to recognise that its decision to remove the fuel subsidy contributed to the current situation.
“Therefore, the government should be prepared to bear the brunt of these policy decisions without unduly passing on the burden to Nigerian citizens.
“It is important to note that energy security is one of the major areas that contributes to national security and welfare, which explains why nations guide their energy sector seriously and are always up and doing ensuring its availability and affordability.
“For instance, the government of Canada is currently providing up to 100 Canadian Dollar subsidy within this year to support homes, following the economic hardship.” Mamedu said.
He said the government’s priority right now must be to explore alternative solutions that prioritise improving the efficiency of electricity distribution, addressing corruption in the energy sector and promoting renewable energy sources.
Tariff hike will trigger power theft – Amadi
A former chairman of NERC, Sam Amadi, said the electricity tariff increase would cause power theft and corruption.
Speaking on Trust TV, Amadi said, “If you increase the tariff of power to the level that people can’t afford, it will increase the stealing of power through bypassing, corruption and at the end of the day, the utilities will lose more money.”
He admitted that there was a good reason to increase the tariff due to the forex crisis and the increase in the price of gas that will be sold to the electricity generation companies.
He, however, said the government should allow a special window where the distribution companies could access dollars at a preferential rate.
“If there is a way to help the DisCos and GenCos to operate well without suffocating the people much, they should do it.”
Air Peace, Nigeria’s flag carrier, has announced an increase in capacity on its Lagos-London flights.
The airline made the announcement on its X page on Wednesday.
On March 30, Air Peace commenced its Lagos-London flight services.
During an interview on Arise TV on April 2, Allen Onyema, chief executive officer of Air Peace, said the airline sold out tickets for the Lagos-London flights until September.
“Due to overwhelming demand and interest in our London route, we have decided to increase the capacity on the route,” Air Peace said.
“This means that more seats are now available.
“Air Peace would like to thank the Nigerian population, both in Nigeria and in the United Kingdom, for their support.
“We do not take it for granted, and we will be doing our best to continue to make the whole country proud.”
Meanwhile, on April 2, Onyema said the airline faced internal and external obstacles before it could commence Lagos-London flight operation, adding that it took the airline seven years to be able to commence operations.
He also said the country is being fleeced by all the airlines “going to London from this place”.
Onyema said people were paying five times more than they should have been paying for flights.
[TheCable]
The President Bola Tinubu-led Nigerian government has approved N225 ($0.15) per kilowatt-hour tariff increment for Band A electricity consumers in the country.
The Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), Musliu Oseni, who made this known at a press briefing in Abuja on Wednesday said the increase will see the customers paying N225 kilowatt per hour from the current N66.
According to Oseni, customers in Band A who are those who enjoy 20 hours of electricity supply daily represent 15 percent of the 12million electricity customers in Nigeria.
Oseni further said that the NERC had also downgraded some customers on the Band A to Band B due to non-fulfilment of the required hours of electricity provided by the electricity distribution company.
“We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 per cent now qualify as Band A feeders. These feeders only service 15 per cent of total electricity customers connected to the feeders.
“The commission has issued an order which is titled April supplementary order and the commission allows a 235 kilowatt per hour,” he said.
Oseni added that the upward review of the electricity tariff will not affect customers on the other Bands.
Gospel minister, Nathaniel Bassey, has petitioned the Inspector General of Police, Kayode Egbetokun, to investigate and prosecute four persons who he accused of criminal defamation and cyberstalking.
The singer submitted the petition to the IGP on April 1, 2024, through his lawyers, Peter Abraham, Uche Matthew, Gbenga Agunloye, and Anthony Abia.
Last week, four social media users alleged that Bassey fathered the son of fellow popular gospel singer, an allegation that went viral on X.
The lawyers, therefore, urged the police authorities to urgently treat the petition against the four social media users, identified in the petition as Okoronkwo Ejike, Kingsley Ibeh, Terrence Ekot and Dj Spoiltkid.
“Our client is a gospel music minister whose songs and ministrations have impacted the lives of so many from different walks of life across the globe,” the petition partly read.
“On Friday, the 29th day of March 2024, Mercy Chinwo Blessed another popular gospel music minister, and her husband posted pictures of their son and themselves on different social media platforms.
“However, our client was disheartened, saddened, and grossly disturbed to find that the above-mentioned suspects, as mischief makers with a criminal intent to destroy the image and character of our client, had made different social media posts of defamatory matter, calling our client ‘the father of minister Mercy Chinwo Blessed’s son,’ a woman who is married to another man.
“The post by Mr. Okoronkwo Ejike has since gone viral on the platform. In reaction to the post, Mr. Kingsley Ibeh commented on Mr. Okoronkwo’s post with a picture of our client with the caption “The real father of the baby.”
“In a post on the platform “X” formerly known as Twitter, “Dj SpoiltKid” a verified X user, quoted the statement by Okoronkwo Ejike along with a screenshot of the post and added, “When are we doing DNA test?”
“In another post, Mr. Terrence Ekot, on the platform “X” made a post thus: “Take a look at the stunning resemblance of mercy chinwo’s son and Nathaniel Bassey. Though duo has been working together on several projects in the past..what do you have to say?” (sic)
The lawyers said the social media posts by the four individuals amounted to complete assassination of Bassey’s character.
“These nefarious acts of these suspects, if not immediately dealt with, will continue to destroy our client’s image, injure his reputation, assassinate his character, and cast aspersion on the good name built by our client over the years.
The lawyers said the alleged actions of the four individuals contravened Sections 373 and 375 of the Criminal Code Act as well as Section 24(1)(b) of the Cybercrimes (Prohibition, Prevention, etc.).
“The consequences of making such statements on social media have been known to tarnish the reputations of individuals, render marriages unstable, and many never recover from them. International reputation is an asset—both for the individual and for the nation—and it takes time to acquire.
“Consequently, we urge you to use your good offices to, in the interest of justice, investigate this matter, arrest, and bring the suspect to justice, which will serve as a deterrent to others.”
Efforts to reach the Police Spokesman, Muyiwa Adejobi, for comments were not successful as of press time. Also, calls to Mercy Chinwo’s lawyer, Pelumi Olajengbesi, rang out.
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The Ondo State Attorney-General and Commissioner for Justice, Kayode Ajulo, has disclosed that he does not plan on paying his 273 aides from the coffers of the state government.
He explained that the designations are mainly honorary, adding that this means the lawyers do not have any right to receive financial remuneration or employment advantages from the Ondo State government.
He described the reaction that trailed the appointment as an “unfortunate misconception of issues.
Ajulo said that the aides will be classified as honorary and technical advisers, maintaining that they are comprised of professional and junior legal practitioners.
He noted that the aides would work closely with him to enhance what he described as ethical legal services to the state.
“Most of these designations are purely honorary, indicating that the lawyers do not have any right to receive financial remuneration or employment advantages from the Ondo State government.
A former national chairman of the Peoples Democratic Party (PDP), Uche Secondus, has lambasted the Minister of the Federal Capital Territory (FCT), Nyesom Wike, for describing him and a former Minister of Transportation, Abiye Sekibo, as “expired politicians” over their support for Rivers State governor, Siminalayi Fubara.
Recall that last week, Secondus, Sekibo, who was director-general of the party’s presidential campaign council in Rivers State; Senator Lee Maeba, Celestine Omehia, and Austin Opara, an ex-lawmaker, openly declared their support for Fubara and urged President Bola Tinubu to caution Wike.
But, Secondus in a statement by his media aide, Ike Abonyi, described Wike as “a showman noted for his double-speak, twisting of facts to score some cheap political points, and someone who stands the truth on its head.”
He further described the FCT Minister’s utterances during his media chat with select journalists as “appalling and rather unfortunate, more so he characterised our revered political leaders of Rivers State, casting them in a bad light by referring to them as transitional politicians, political vampires, and political buccaneers.”
[Leadership]
A former lawmaker, Shehu Sani has aired his opinion on the recent announcements made by the Federal Government on the increase of electricity tariffs.
DAILY POST reports that the Nigerian Electricity Regulatory Commission, NERC, on Wednesday gave the go-ahead to raise the electricity rates for customers in the Band A category.
During a press briefing in Abuja on Wednesday, the Vice Chairman of NERC, Musliu Oseni, announced that there will be a rise in electricity tariffs.
This adjustment will result in customers paying N225 per kilowatt-hour, up from the current rate of N66.
Sani, a former lawmaker, who represented Kaduna central district in the 8th assembly, said the increase would further reduce the living standard of Nigerians and kill businesses.
“Increasing electricity tariffs by 300% will finally electrocute human lives and businesses in the country,” he wrote on X.
[DailyPost]
President Bola Tinubu, on Wednesday, signed the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, into law.
This development follows individual reviews by both the Senate and the House of Representatives of the report from the Committee on Tertiary Institutions and TETFund.
What is the student loan bill in Nigeria?
The Bill sponsored by Senator representing Ekiti Central Senatorial District of Ekiti State, Bamidele Opeyemi aims to improve the execution of the Higher Education Student Loan Scheme in Nigeria by tackling issues related to the management structure of the Nigerian Education Loan Fund, applicant eligibility criteria, loan purposes, funding sources, and procedures for disbursement and repayment.
How does the student loan works in Nigeria?
Under this Bill, the Nigerian Education Loan Fund (NELFUND) would be established as a legal entity with the authority to litigate and be litigated in its own name, and it would possess the power to acquire, hold, and dispose of both movable and immovable property to fulfill its functions.
In essence, the Bill enables the Fund to offer loans to eligible Nigerians for their tuition, fees, charges, and living expenses while studying in approved tertiary institutions and vocational training centers in Nigeria.
In contrast to the previous 2023 Act, which placed the Fund’s administration under a Special Committee chaired by the Governor of the Central Bank of Nigeria, this Bill proposes changes in the management structure.
What are the terms and conditions for student loan in Nigeria?
Furthermore, the Bill eliminates the income-based eligibility criterion set by the existing law, which required an annual income of less than N500,000 for applicants or their families.
The Bill also broadens the scope of eligibility, allowing students from federally or state-established tertiary institutions and government-approved vocational institutions to apply, with specific criteria to be determined by the Fund.
Additionally, unlike the 2023 Act, which limited loan applications solely to tuition fees, the new Bill permits applicants to request loans to cover various institutional charges and maintenance allowances.