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Businesses may crumble as FG approves 50% electricity tariff hike

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More small-scale businesses may suffer as the Nigerian Electricity Regulatory Commission has approved over 50 per cent increase in electricity tariff.

The new tariff regime to be paid by customers of the 11 electricity distribution companies will take effect from January 1 this year.

This is coming about two months after NERC forced the implementation of an earlier hike in electricity tariff despite opposition against it.

Already, many businesses have not recovered from the twin-tragedy of COVID-19-induced months of lockdown and #EndSARS protests hijacked by hoodlums that massively looted and vandalised companies across the country.

NERC announced the latest tariff hike in its December 2020 minor review of the Multi-Year Tariff Order and Minimum Remittance Order obtained in Abuja on Tuesday.

The MYTO order containing the latest tariff hike, Order NERC/225/2020, was signed by the new Chairman of NERC, Sanusi Garba, superseding the previous Order NERC/2028/2020.

The commission explained that it considered the 14.9 per cent inflation rate rise in November 2020 and foreign exchange of N379.4/$1 as of December 29, 2020 before approving the new rate.

Others factors considered, according to NERC, are available generation capacity, the United States inflation rate of 1.22 per cent and the capital expenditure of the power firms.

The revised Service-Based Tariff saw an increase in the rates payable by the various classes of electricity users unlike that of November 2020 that exempted low electricity consumers.

The commission also stated that the new tariff would be effective till June 2021 while a Cost Reflective Tariff would be activated from June to December 2021.

The commission said last month that it was carrying out a review for another tariff.

In September last year, the commission raised electricity tariff but this was faced with stiff opposition by the organised labour, as the unions threatened to embark on a nationwide strike.

After a series of negotiations, the tariff was reduced based on consumer classes and the hours of power supply.

On November 1, 2020 the Discos commenced the implementation of the revised electricity tariff that was jointly agreed upon by organised labour and the Federal Government.

Railway

Police still on trail of Warri-Itakpe rail track vandals – NRC

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• Says vandals risk life imprisonment
Vandals of a section of the newly inaugurated Warri-Itakpe rail track have not been arrested, contrary to an earlier report, the Nigerian Railway Corporation has said.
Coordinator of the new rail line operation, Abdulganniyu Saani, an engineer, who stated this, also dismissed the viral video of the arrest of five suspects with a vehicle load of rail track sleepers, saying it was an old clip of an incident around Jos, Plateau State taken some years back.
He also said the latest cutting of Warri-Itakpe track material was not on the main lane but an extra lane, which had not disrupted the running of freight and passenger trains.
Saani spoke in an interview with NewsTrends on the telephone, warning that vandals would be treated as manslaughter suspects with a maximum penalty of life imprisonment upon conviction because their activities could lead to fatal railway accidents.
He also said that a number of traps had been laid for the arrest of the vandals still on the run and other hoodlums that might be contemplating of vandalizing or stealing railway materials.
“The police in Kogi State where the incident had happened are on the red alert. They are working with other security agencies to apprehend the vandals and anybody who dares tamper with railway materials.
Details later…

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Aviation workers threaten one-week shutdown of Kaduna airport from Sunday

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Aviation workers have threatened to withdraw their services at the Kaduna airport from Sunday, May 16 to Friday, May 21.
The workers in a statement on Saturday said their action was in support of the Kaduna State chapter of the Nigeria Labour Congress (NLC) over “anti-labour practices perpetrated against public servants in Kaduna State”
The statement was jointly signed by Ocheme Aba, general secretary of the National Union Of Air Transport Employees (NUATE); Rasaq Saidu, general secretary of the Association Of Nigeria Aviation Professionals (ANANP); and Umoh Ofonime, deputy general secretary of the National Association Of Aircraft Pilots And Engineers (NAAPE).
NLC had said that over 20,000 state workers had not received their April salaries, adding that due process was not followed in the recent disengagement of over 4,000 workers from the local government service, state universal basic education board and primary healthcare agency.
The statement read in part, “As you are all aware, the Nigerian Labour Congress (NLC) has declared strike action against the Kaduna State Government over numerous anti-labour practices perpetrated against the public servants of Kaduna state.
“Our unions, being affiliates of the NLC, are part of the decision and are in support of the action against the Kaduna State Government In this regard, our participation on the planned shutdown of Kaduna State is hereby affirmed.
“Accordingly, all aviation workers at the Kaduna Airport are hereby directed to withdraw all services at the airport with effect from midnight of Sunday the 16th of May 2021 to midnight of Friday the 21st of May 2021.
“The effect shall be the total grounding of operations of the Airport within the stipulated period. By this notice, members of the public are advised to make alternative travel plans within the period.”

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Remittances to Nigeria drop by 28% – World Bank

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Remittance inflow to Nigeria dropped by 28 per cent in 2020 due to the COVID-19 pandemic, the World Bank has said.
The bank added that remittance flows fell for sub-Saharan Africa by 12.5 per cent, according to its Migration and Development Brief 33 Phase 11 entitled: “COVID-19 Crisis Through a Migration Lens’’ published on Thursday.
The report said the decline in remittance flows to Nigeria was largely responsible for the fall in remittance flows to sub-Saharan Africa.
“The decline in flows to sub-Saharan Africa was almost entirely due to a 28 per cent decline in remittance flows to Nigeria.
“Excluding flows to Nigeria, remittances to sub-Saharan Africa increased by 2.3 per cent, demonstrating resilience,’’ the report stated.
According to the report, the relatively strong performance of remittance flows during the COVID-19 crisis has also highlighted the importance of timely availability of data.
It stated that given its growing significance as a source of external financing for low and middle-income countries, there was need for better collection of data on remittances.
It emphasised that there was need for better collection of data on remittances, in terms of frequency, timely reporting, and granularity by corridor and channel.
With global growth expected to rebound further in 2021 and 2022, remittance flows to low and middle- income countries are expected to increase by 2.6 per cent to $553bn in 2021 and by 2.2 per cent to $565bn in 2022.
The report stated that global average cost of sending $200 remained high at 6.5 per cent in the fourth quarter of 2020, more than double the Sustainable Development Goals (SDGs) target of three per cent.
It stated that sub-Saharan Africa continued to have the highest average cost (8.2 per cent) adding that supporting the remittance infrastructure and keeping remittances flowing includes efforts to lower fees.
The true size of remittances, which includes formal and informal flows, is believed to be larger than officially reported data, though the extent of the impact of COVID-19 on informal flows is unclear.
“As COVID-19 still devastates families around the world, remittances continue to provide a critical lifeline for the poor and vulnerable,” said Michal Rutkowski, Global Director of the Social Protection and Jobs Global Practice at the World Bank.
“Supportive policy responses, together with national social protection systems, should continue to be inclusive of all communities, including migrants,” he said.

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