Ibadan, Kaduna DisCos hike Band A electricity tariffs, after NERC approval

Two power firms, Ibadan Electricity Distribution Company (IBEDC) and Kaduna Electricity Distribution Company (Kaduna DisCo) have announced an increase in electricity tariffs for their Band A customers, with effect from July 1st, 2024.

They said the hike in tariff had received the approval of the regulator, the Nigerian Electricity Regulatory Commission.

Acting Managing Director, IBEDC, Francis Agoha, in a notice said “this adjustment affects only Band A customers.

He added that the tariffs for Bands B, C, D, and E remained unchanged.

Agoha further stated that the company remained committed to providing reliable and efficient electricity services to all its customers across different bands.

“We understand that any change in tariffs can be a concern for our customers, and we assure you that this adjustment is necessary to maintain and improve the quality of our services. Our goal is to ensure that you receive the best possible value for your money,” he said.

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On its part, Kaduna DisCo in a statement by the company’s Head of Corporate Communication, Abdulazeez Abdullahi, also said the tariff for Band A feeders had gone up from N206.80 per kilowatt-hour (kWh) to N209.50 per kWh. This represents a 1.3 per cent increase.

Band A customers are those categorized under the Service Based Tariff regime and receive a guaranteed minimum of 20 hours to 24 hours of electricity supply daily.

This category often includes residential, commercial, and industrial consumers with high electricity consumption.

In the statement titled, ‘Upward Review of Tariff for Band A Feeders’, Abdullahi disclosed that the new tariff became effective on July 1.

“Dear esteemed customers, the Management of Kaduna Electric informs the public of an upward review in the tariff of Band A feeders from N206.80/kWh to N209.5/kWh.

“The review is effective from 1st July 2024 and affects both prepaid and postpaid customers.

“Kaduna Electric assures customers on its Band A feeders of the continued availability of 20-24hrs supply daily as stipulated in the Service Based Tariff regime.”

Ibadan, Kaduna DisCos hike Band A electricity tariffs, after NERC approval

Bitcoin drops by 3% putting pressure on other cryptos

Bitcoin the primary crypto asset has fallen below its $61,000 price level in the early hours of today with the asset now trading for $60,400 at the time of report.

The crypto asset has fallen from $62,000 yesterday to $60,400 representing a 3% decline in price value over the last 24 hours.

The decline in Bitcoin price affected other major crypto assets with Ethereum, Solana, and Dogecoin all witnessing a 3% drop in price as well.

Bitcoin’s drop in price value can be attributed to various pressures the most significant being an impending major activity on the Mt. Gox exchange. The now-defunct Mt. Gox exchange is expected to begin the distribution of Bitcoin this month.

QCP Capital, a Singapore-based crypto firm shed more light on this issue in a Telegram broadcast to its nearly 14,000 members.

“The Mt Gox release is also slated to happen this week,” the firm wrote in its Telegram broadcast. “This overhang of up to 140,000 BTC should continue to weigh on markets, especially since the exact release schedule is unknown right now. The firm added.

Despite the drop in Price value due to the looming Mt. Gox activity Bitcoin has maintained a support level above $60,000 and Ethereum has not fallen below $3300. These are positive signs according to QCP Capital.

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Crypto analyst Ali shared his position on the crypto markets should Bitcoin price rebound from its current level to $62,600. He cited CoinGlass data stating that there is going to be significant liquidations should Bitcoin rebound past $62,000.

“Over $1 billion will be liquidated if #Bitcoin now rebounds to $62,600,” he wrote on X this morning.

Ali also pointed out the possibility of Bitcoin breaking its critical resistance level which he called was the $65,795 price level.

“One of the most crucial resistance areas for #Bitcoin is $65,795. If $BTC can break past this level, the next significant target is $78,700!” Ali added. 

Tom Lee, managing partner and head of research at Fundstrat Global Advisors gave his 2 cents on the Mt. Gox issue from a long-term perspective in a recent interview with CNBC.

Over 140,000 BTC is set to be redistributed from the now-defunct Mt. Gox exchange and this activity is viewed as a net negative for Bitcoin price value.

Bitcoin drops by 3% putting pressure on other cryptos

Expect gazette exempting SMEs, farmers, manufacturers from paying withholding tax soon – Presidency

Newly approved withholding tax regulation exempting the Small and Medium Enterprises (SMEs), farmers and some manufacturers from paying withholding tax will be published in the official gazette in the coming days.

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed this on Tuesday.

The new tax regime also includes a reduction of rates for businesses with low margins and measures to curb tax evasion.

Oyedele, in a post via X on Tuesday, said, “As part of the ongoing fiscal policy and tax reforms, a new withholding tax regime has been approved.

“The key changes introduced are to address the identified challenges and specifically include the exemption of small businesses from Withholding Tax compliance and reduced rates for businesses with low margins.

“Exemptions for manufacturers and producers such as farmers, measures to curb evasion and minimise tax avoidance.

“Ease of obtaining credit and utilisation of tax deducted at source, changes to reflect emerging issues and adopt global best practices and clarity on the timing of deduction and definition of key terms.”

Withholding tax (WHT) is an advance payment of income tax which may be used to offset or reduce tax liabilities, according to the Federal Inland Revenue Service (FIRS).

The WHT is deducted at varying rates ranging from five per cent to 10 per cent, depending on the transaction.

On June 3, Oyedele announced that the Federal Government had approved the exemption of small businesses earning N25 million and less from withholding tax.

Giving updates in a post on X on Tuesday, Oyedele said the approved regulation includes measures to curb evasion and minimise avoidance.

“Withholding tax was introduced into the Nigeria tax system in 1977 to serve as an advance payment of income tax on specified transactions,” he said.

“It was designed to provide the government with regular revenue flow and to serve as a means of curbing tax evasion.

“As the regime expanded over time to cover more transactions, various ambiguities and complications crept in.

“This resulted in many businesses, especially SMEs, being exposed to excessive burden of compliance and a strain on the working capital of low-margin businesses.”

Oyedele said some other unintended consequences included ambiguities regarding persons required to comply, eligible transactions, applicable rates, and timing of the obligation for remittance.