I have been reliably informed that the Senate President, Senator Godswill Akpabio and Gov. Umo Eno are currently working together on a number of significant initiatives that would be included in the 2024 Federal Budget for the benefit of AKwa Ibom State. Such projects will span infrastructure, environment and many more, and would be the first time in a long while that Akwa Ibom interests are captured in the Appropriation Bill of the federal government. I commend the two gentlemen for tossing aside partisan politics to collaborate in the interest of our people, and I thank all those working behind the scenes to make this new era possible. From the enthusiastic airport reception last Friday and the massive turnouts at his thank you visits to the various constituencies in his district, it is clear that Akwa Ibom people are pleased to have one of their own as Senate President.

 In addition to the whatever the governor and the SP are working on, I should mention the four major federal roads that lead into Akwa Ibom state which require urgent attention from Abuja. They are: Calabar-Itu-Ikot Ekpene Expressway; Aba-Ikot Ekpene Road; Umuahia-Ikot Ekpene Road and a section of the East-West Road. The Senate President should ensure that these roads are adequately provided for in the budgets in the next four years and contractors adequately funded for their reconstruction. Although the Aba-Ikot Ekpene Road is funded directly from the tax proceeds paid by NNPCL, it is important for us to keep a close eye on it. Of course, the Ibaka Deepsea port project is very dear to our people. The SP and the state government should work closely to close deal before the next general elections.

Akwa Ibom was completely forgotten by the Buhari administration, partly due to the arrogant aloofness of the former governor. He felt too important to go and see the Minister of Works and other relevant officials in Abuja who were in a position to help. In a complex federation like ours, a governor must come down from his high horse and seek help, even from lowly places. Now, that we have our son as the Senate President, it is important that we close ranks and work earnestly to cover lost grounds. Umo Eno is off to a good start on this.

On his part, Senator Akpabio is bent on leaving an enduring legacy as the most prominent politician from the state. Whosoever emerges as a minister from the state should quickly fall in as part of the political trinity for the development of the state. For now, the Senate President is taking steps to endear himself to his supporters and deepen his grassroots networks. His homecoming and the series of thanksgiving events he’s been holding in his senatorial district testify to his sense of gratitude. His people are now satisfied that the dream of his becoming the Senate President which dominated discussions during the campaign season has not turned out to be a hoax. They would be justified to expect some dividends from his exalted office.

 In terms of appointments, Chief Sylvester Okonkwo is a solid pick as the Chief of Staff. I knew him way back in 2006 as a member of Akpabio’s inner circle who worked with others for his gubernatorial election. Okonkwo was the intermediary between some of us in Lagos and the campaign in Uyo. He is very knowledgeable about Akwa Ibom and its politics. That he is not from Akwa Ibom should be an advantage. It will help insulate him from our peculiar ethnic issues in the course of his work. Okonkwo should not pay attention to such idle talks like ‘’enyem ado owo Attah, or enyem odo owo Etiebet’’.

Finally, as we continue to savour the shifting alliances in the state, I wish to draw the governor’s attention to the long line-up of abandoned projects in the state. The important ones are: The Worship Center; Airport Road expansion; Airport Terminal Building; the hotel and water parks at the Tropicana entertainment complex and the Science Park. I am told that the former governor received another tranche of N250 billion from the federal government as payment for Derivation shortfall in the last one month of his administration. Nobody knows how he spent all that money, but it is now up to Gov. Umo Eno to complete these abandoned projects and put them to use in the interest of Akwa Ibom people.

The Central Bank of Nigeria has set a daily cumulative limit for contactless payment.

The bank in a circular on Tuesday defined the transaction limits for contactless payment through accounts and wallets as N15,000 and daily cumulative of N50,000.

Contactless payment system are credit cards and debit cards, key fobs, smart cards, or other devices like smartphones and other mobile devices, that use radio-frequency identification or near-field communication for making secure payments.

“High-value contactless payments are transactions that exceed the above-stated limits and shall require appropriate verification and authorization. Limits above this stipulated daily cumulative limit shall be conducted using contact-based technology,” CBN said.

The CBN had in October 2022 released a ‘Draft Guidelines for Contactless Payments in Nigeria, ‘ which provides minimum standards and requirements for the operations of contactless payments in Nigeria.

Based on the guidelines, the contactless transaction is limited to only accounts or wallets that have the Bank Verification Number.

On guidelines for merchants, the CBN said any amount above the stipulated limits per transaction will request for customer’s authorisation such as PIN, token, and biometrics.

“The bank shall determine the transaction limit and cumulative daily limits for contactless payments from time to time. Stakeholders shall be permitted to set limits in line with the bank’s limits,” the document said.

Cashless transaction has begun to gain traction in Nigeria with players like Interswitch, in partnership with ProvidusBank, Mastercard and Thales Group, announcing their Tap-to-Pay service in Nigeria in 2022.

Now-Now, a Nigerian Company that offers Tap-and-Pay services6 raised $13m seed to increase the adoption of Contactless Payment in Nigeria.

More international manufacturing companies may leave Nigeria and site their factories in other countries should power distributors implement the planned hike in the tariff payable by consumers from July 1, 2023, the Manufacturers Association of Nigeria has said.

It stated that some international manufacturing firms had already exited Nigeria as a result of the power crisis, coupled with the unpredictability of the country’s foreign exchange rate before it was recently unified.

The President, Manufacturers Association of Nigeria, Francis Meshioye, told our correspondent on Tuesday that the over N144bn spent on alternative sources of energy by manufacturers in 2022 impacted adversely on the operations of his members.

He stressed that any further hike in tariff would lead to an exodus of companies, and called on the government to reconsider the move.

“In every system there’s always a core structure and this includes the elements that make up the total cost spent in generating your revenue. Now, what we experience as manufacturers is that energy cost is a major cost in processing our products.

“Now, if you spent N144bn on alternative energy sources in one year, you can only imagine the impact which that will have on your cost of operations. The manufacturing business in Nigeria is affected by so many factors, energy is a major one,” Meshioye stated.

He added, “Manufacturers provide almost every infrastructure by themselves. Outside the major roads, you find out that manufacturers provide water, power, security, etc. So when you look at it, you find out that the cost of doing business is so huge, that a businessman will ask, is this the only place I can do my business? Can I move may capital elsewhere?

“The downsizing of businesses in Nigeria, for instance, shows that businesses are not doing very well. So this power issue and other things have made some manufacturers, particularly international businessmen to relocate from Nigeria to other countries.”

He stated that something should be done about the power issue, adding that raising tariffs was not in the interest of manufacturers.

“Therefore anything to reduce this energy cost will be very beneficial both to manufacturers and the masses in general. So it (power) is a high cost to us, and a major driver in terms of cost. At the same time, it could lead to other things.

“It is one of the things that make some manufacturers to seek to move their business to another region and site their factories there. It is not the only reason, but, of course, it is one of the major ones,” Meshioye stated

In a statement issued last week, MAN stated that its surveyed data suggested that manufacturers spent at least N144.5bn on sourcing alternative energy in 2022, up from N77.22bn in 2021.

This, it said, translated to about 87 per cent increase in the cost of access to alternative energy sources by manufacturers within a year.

The statement read partly, “In the last eight years, electricity tariff has been increased by 186 per cent. The fact that the government itself is owing N75bn in unpaid electricity bill is indicative of how burdensome the cost of electricity has become.

“Therefore, it is highly concerning for manufacturers to witness the electricity tariff skyrocketing beyond the present high prices, starting July 1. A 40 per cent hike at this time is simply outrageous.”

When asked to name some other reasons that might make manufacturers to Nigeria, Meshioye replied, “We have the unpredictability of the foreign exchange rate.

“In a business model, the more predictable the forex, the better you are. But the availability of the forex itself is another thing. All these are problems that border manufacturers.”

On whether there was an estimated number of international manufacturing companies that had exited the country due to the issues around power supply and forex concerns or manufacturers that had closed down as a result of these challenges, Meshioye said, “I can’t say categorically now.”

Tariff may hit N300/kwh

The President, Nigeria Consumer Protection Network, and coordinator, Power Sector Perspectives, Kunle Olubiyo, explained that Nigerians might pay between N150/kilowatt-hour to N300/kwh once the Discos hike electricity tariffs from July 1, 2023.

“At the moment, band C (customer category) that presently goes for about N40/kwh may be increased to about N100/kwh, while band A that is presently at about N56kwh might be jerked up to about N150kwh.

“What it means technical speaking is that electricity tariff is now going to be floated and it will be market driven as naira/dollar exchange rates, and it will now be subjected to a free market.

“With high exchange rate volatility, in the next few days, electricity tariff may go from a minimum baseline of N100/kwh to a maximum threshold of N300/kwh. As sad as it is, this shall not translate into any significant improvement in reliable electricity supply, nor translate into efficient service delivery,” he stated.

The World Bank yesterday disclosed plans to support the Nigerian Electrification Project (NEP) with an additional $750 million.

Ms Elizabeth Huybens, World Bank’s Director of Strategy and Operations for Western/Central African Region, disclosed this shortly after inspecting a 60kw solar-powered mini grid in Kilankwa II, a settlement in Kwali Area Council of the FCT.

Daily Trust reports that the initial $350m grant expires in August, 2023.

NEP, which is administered by the Rural Electrification Agency (REA) and funded by the World Bank, is a nationwide initiative aimed at delivering energy access to underserved communities.

Huybens said that access to electricity was a priority goal for the bank as it was one of the fastest routes to eradicating poverty.

She noted that: “It is hard for me to think about modern life without electricity. It is also hard to think about reducing poverty without access to electricity. And since the World Bank’s overarching goal is to help countries eradicate poverty, we need to help countries provide access to electricity to their populations.

“The $350 million grant is coming to a close. We we are preparing a successor project that will be $750 million. So, we are expanding our support to something that we think is really critical which, Nigeria is leading the world with this sort of small grant development.”

The Managing Director/Chief Executive Officer of REA, Engr Ahmad Salihijo Ahmad, said energy efficient equipment would be connected to the mini grid for more productive use.

“The 60kw capacity project is serving about 300 connections, and it’s been operational for some time now, so we’re privileged to have come here today with the director of the World Bank task team to see how it’s performing. We’re still looking for more productive use, ensuring that we have energy efficient equipment connected to the mini grid,” Ahmad said.