Business

FG still subsidising electricity tariff, says NERC

Published

2 years ago

September 6, 2022

The Federal Government is still subsiding electricity tariff being paid by cosumers, Nigerian Electricity Regulatory Commission has said.

Chairman of the commission, Sanusi Garba, stated this despite the complaints by consumers about high tariif.

He spoke on Monday during a session with the House of Representatives committee on finance on the 2023-2025 medium-term expenditure frame and fiscal strategy paper (MTEF/FSP).

Garba however did not give details of the subsidy, adding that the revenue would go up in the nect three years to reduce the tariff burden.

He said, “In 2024, revenues should go up slightly to N23.5 billion and the operating surplus would go down to N1.1 billion and the reason is simply that we are motivated as much as we can to reduce the tariff burden of consumers because of affordability issues.”

“In 2025, revenues go up to N24.7 and the operating surplus goes up to N1.4 billion. I repeat the surpluses are going down because we want to reduce the tariff burden of consumers. Right now, the Federal Government is subsidising the tariff to some extent. In the last few years, subsidies were in the region of N5 billion. So, we don’t want to contribute additional burden and that’s why the surpluses are declining as we go forward.”

For 2020, Garba said the auditor’s report revealed that the commission’s operating surplus was N3.8 billion and that reconciliation was ongoing with the office of the accountant-general of the federation, after which remittances would be made.

Garba also disclosed that NERC would be investing heavily in technology for enhanced service delivery to consumers, adding that the commission planned to spend N2.5bn on computers including software next year.

He in utility regulation, information technology is very important as it is not proper to rely on information given by licensees alone.

“So we are investing heavily in technology so we have credible information about quality of service. Without technology, we cannot know that a feeder in an area is out for 48 hours and people are in darkness,” he said.

He also said, “So, over the next few years, we will be investing heavily on technology for data aggregation.

“In 2021, the budget for computers, not just hardware but the software that drives the machine is N1.5 billion. And we are spending N2.5 billion in 2023 and N1 billion in 2025 and we will do this.”

Garba added that NERC “would want to be in a position to see what is happening in all the feeders directly from the commission, not relying on the Disco telling you we supplied this and that in so, so location; So, investing N5 billion on technology today is nothing,” he said.

He said the commission had engaged auditors to look into its account for the 2021 financial year and should be completed in October.

Speaking earlier, Stanley Olajide, a committee member, observed that N3.5 billion was earmarked for computer equipment and training in the 2023 budget proposal.

“Looking at your projections for 2023, you have about N2 billion to spend on computer equipment. In 2022, what do you have for computer equipment? Also, in 2021, what do you have because we are going to be lending money to fund this budget or if you are not going to spend this money, it could be revenue for the government,” Olajide asked.

“What part of this can you suspend: N2billion for computer equipment and about one point something billion for training, what is the value money in spending this N3 billion in 2023? If you did something like that in 2022, why 2023 again?”

In his remarks, Abdullahi Saidu, deputy chairman, house of representatives committee on finance, directed the office of the accountant-general (OAGF) and Fiscal Regulatory Commission (FRC) to sit with NERC and reconcile its 2021 account.

He said the country was in need of funds, frowning at the delay in reconciliation which was impeding funds from going into the federation account.

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Yuletide: Chisco deploys new luxury, mini buses, top quality services

Published

6 hours ago

January 1, 2025

Trends Admin

Yuletide: Chisco deploys new luxury, mini buses, top quality services

…hails Tinubu for 50% fare rebate

Nigeria’s Transport Company of the Year, Chisco Transport Ltd, has deployed in various routes nationwide its newly procured new luxury and mini buses with the latest innovative features in the industry.

It assured the travelling public of safe and top quality services on all its routes this Christmas/New Year season, and beyond.

It stated this in a statement released on Tuesday, adding that the company, which had been one of the country’s front runners in long distance passenger transportation and logistics for over 45 years, recently inaugurated about four new branches in order to bring its services closer to its teeming customers.

It listed some of the new branches that had helped to boost service delivery this Yuletide season as in Awka, Enugu, and on Okota Road (near Cele Bus Stop on Oshodi-Apapa expressway), Lagos.

It stated, “This is in addition to embarking on a comprehensive maintenance of the existing fleet of buses in order to ensure they are in roadworthy shape for trips across Nigeria and the Lagos-Cotonou-Lome-Accra international route.

“Apart from advanced safety features like real-time GPS tracking and efficient safety systems, the new-look Chisco Transport fleet, featuring state-of-the-art buses, has all it takes to guarantee that passengers travel in style with their comfort and safety prioritised this season.”

It stated that the updated fleet had enhanced the popular Chisco 24 to 48-hour nationwide mail and parcel services.

All these, the leading transport solutions and logistics provider said, are part of deliberate efforts to ensure seamless and comfortable bus and logistic services to the customers during the 2024 Yuletide season and thereafter.

Chisco’s Head of Business Operations, Mr Buchi Ochuba, in the statement explained that the same commitment to ensuring safe and comfortable trips out of major cities and towns before Christmas, would also be deployed to return journeys in the new year.

He said that the management was aware that the huge investments the company had been making towards upscaling its services recently earned it the Transport Company of the Year at the recent Nigeria Auto Journalists Association (NAJA) Awards in Lagos.

Ochuba reiterated Chisco Transport’s resolve to sustain the high standards that earned the company an enviable reputation, as well as continue investments in safety and comfort of travellers that have earned it the confidence of the travelling public and the auto journalists’ award.

“We appreciate the fact that in adjudging Chisco Transport the Transport Company of the Year, NAJA must have taken into consideration the high standards of our services, the over 50 new air-conditioned buses we procured recently, the new branches we inaugurated, our customer reward scheme and other investments we made to enhance passenger transportation and logistics,” Ochuba stated.

According to him, everything is in place to make certain that the teeming Chisco Transport customers all over Nigeria and on the international route enjoy top quality services, adding “We wish them a wonderful Christmas and a highly prosperous 2025.”

Chisco Transport also applauded President Bola Tinubu for the gesture of subsidising inter-state luxury bus transport fares by 50 percent this Christmas season.

Drawing attention to the importance of infrastructure to the road transportation business, the statement further commended the President for the appreciable allocations for the sector in the 2025 budget.

“We, therefore, wish to urge members of his cabinet to put in more deliberate efforts to help the President attain his vision with speedy and prudent execution inspired by patriotism.”

On the current sharp increase in fares across the routes, the award-winning transport company blamed the situation on rising costs of maintaining the buses, as well as on the high pump prices of diesel and petrol.

The Head of Operations, however, added that at the peak of every Christmas season, long distance buses are almost empty during return trips, which leads to a situation whereby the fares for the first journeys are raised to cushion the losses incurred during reverse trips.

Business

Naira exchanges N1,650/$ in parallel market

Published

9 hours ago

January 1, 2025

Trends Admin

Naira exchanges N1,650/$ in parallel market

Yesterday, the Naira appreciated N1,650 per dollar in the parallel market, compared to N1,655 on Monday.

Similarly, the Naira appreciated to N1,535 per dollar in the official foreign exchange market.

Business

Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation

Published

22 hours ago

December 31, 2024

Trends Admin

Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation

The exchange rate between the naira and the dollar ended the year at N1,535/$1 representing a 40.9% depreciation for 2024.

The official exchange rate between the naira and dollar closed in 2023 at N907.11/$1 thus depreciating by 40.9% for the year which compares to a 49.1% devaluation at the end of 2023.