NLC, FG set for showdown over fresh electricity tariff hike – Newstrends
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NLC, FG set for showdown over fresh electricity tariff hike

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A showdown may be imminent between the Nigeria Labour Congress and the Federal Government over a fresh increase in electricity tariff.

A new statement emanating from the electricity distribution companies has informed consumers of a new tariff regime for implementation with effect from September, having been approved by the Nigerian Electricity Regulatory Commission.

But the NLC has rejected the new tariff and urged the Federal Government not to implement it.

The labour union said while many sectors, including power, have been increasing tariffs, there had not been commensurate increases in workers’ wages.

NLC Deputy President Joe Ajaero, who spoke on the pains of Nigerian workers, wondered why electricity regulator – NERC – was considering another tariff increase when the wages of workers had remained stagnant.

Ajaero, who doubles as the General Secretary of the National Union of Electricity Employees (NUEE), said there was a regulatory hijack of the power sector by electricity distribution companies (DisCos), who he said were bent on transferring their “inefficiencies” to poor Nigerians.

He said five months after a seven-man technical committee on electricity tariff submitted its report, the Federal Government was yet to implement the recommendations in the report to reduce electricity tariff.

The seven-man technical committee on electricity tariff submitted its report on February 22, 2021 at the Banquet Hall of the Presidential Villa in Abuja to Labour and Employment Minister Chris Ngige.

The minister had said at a bipartite meeting between the government and organised labour that the government would consider the reports on electricity tariff and petrol increases.

Ajaero, who spoke on a breakfast programme on African Independent Television (AIT), Kakaaki, said, “Late last year when this issue came up (of course, you know they equally increased electricity tariff by 100 per cent), the NLC stepped in and then they set up a seven-man committee headed by Minister of State for Labour and Employment, Mr Festus Keyamo (SAN). I happen to be a member of the committee.

“We had certain assumptions – including the issue of who the members of NERC are – because it was clear who sits at NERC at the level of consultation.

“The law is clear that you have to equally consult with stakeholders before any increase (in electricity tariff) and those agreements were reached that the price of gas must be situated; that if we situate the price of gas very well, even what we are paying will crash.”

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CBN raises commercial banks’ capital base to N500bn

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CBN raises commercial banks’ capital base to N500bn

The Central Bank of Nigeria (CBN) has increased the minimum capital requirements for commercial, merchant and non-interest banks.

The CBN increased the capital base for commercial banks with international licences to N500 billion, while national and regional financial institutions’ capital bases were fixed at N200 billion and N50 billion, respectively.

This was announced in a statement on Thursday, noting that the increase was due to prevailing macroeconomic challenges and headwinds.

The statement signed by Haruna Mustafa, director, financial policy and regulation department at the CBN.

It said the upward review would enhance the banks’ resilience, solvency and capacity to continue to support the growth of the Nigerian economy.

Also, the CBN raised the merchant bank minimum capital requirement to N50 billion for national licence holders.

The financial regulator said the capital base for national and regional non-interest banks is N20 billion and N10 billion, respectively.

To meet the minimum capital requirements, the CBN advised banks to consider the injection of “fresh equity capital through private placements, rights issue and/or offer for subscription”.

The CBN also suggested merger and acquisition (M&A), as well as upgrade or downgrade of licences.

“The minimum capital specified above shall comprise paid-up capital and share premium only. For the avoidance of doubt, the new capital requirement shall not be based on shareholders’ funds,” it stated

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Tinubu orders creation of single-digit tax system

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Tinubu orders creation of single-digit tax system

President Bola Tinubu has directed a creation of a single-digit tax system with a maximum of nine taxes for a company or an individual.

Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed this in Abuja while speaking with the management team of Guinness Nigeria who paid him a visit.

A statement on Wednesday by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, quoted Adedeji as saying, “The President gave a directive that he wants a single-digit tax in the country, meaning that the maximum number of taxes we will have after the work of the Presidential Committee on Fiscal Policy and Tax Reforms will be nine taxes.”

The statement added that the plan was aimed at having a conducive environment “created for businesses to flourish and grow the economy.”

 

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Naira gains further against dollar

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Naira gains further against dollar

The Naira rose further in the official market on Tuesday, trading at N1,382.95 to the dollar.

According to data from the FMDQ’s official trading portal, the Naira rose by N25.09, or 1.78 percent, from the previous day’s rate of N1,408 versus the dollar.

On Tuesday, total turnover was $245.58 million, up from $222.15 million on Monday.

Meanwhile, at the Investor’s and Exporters (I&E) window, the Naira traded between N1,486 and N1,300 against the dollar.

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The News Agency of Nigeria (NAN) reports that the Central Bank of Nigeria (CBN) had, earlier on Tuesday at its 294th Monetary Policy Committee (MPC), raised Monetary Policy Rate (MPR) by 200 basis points from 22.75 per cent to 24.75 per cent.

CBN governor Yemi Cardoso said that was meant to tackle the nation’s rising inflation.

Naira gains further against dollar

(NAN)

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