Prepaid meters: NERC 13% mass distribution performance shocks Senate – Newstrends
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Prepaid meters: NERC 13% mass distribution performance shocks Senate

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The Senate has expressed disappointment over reported poor performance of the Nigerian Electricity Regulatory Commission on Mass Metering Project in the country put at 13 per cent.

Already a sum of N33.4 billion was said to have been released by the Central Bank of Nigeria for the project, which has only recorded about 13 per cent implementation.

The Senator Gabriel Suswam-led Senate Committee on Power, gave the poor performance verdict on NERC on Thursday, sequel to assessment made on the project at an interactive session with the commission’s officials and representatives of the various electricity distribution companies at the Senate. NERC Chairman, Sanusi Garba, said the project which targets one million metering of houses  across the country between October 2020 and April 2021, had only recorded 13 per cent implementation as of 19th of March 2021.

He said, “While. N403,000 out of the targeted one million meters, have been delivered to the various DISCOs, only 127, 000 have been installed , representing 13 per cent performance.”

Garba attributed the poor performance to delay in disbursement of funds.

He said, “Target performance duration for the project, which is phase one, entailing metering of one million houses across the country in reducing the metering deficit of 6.5 million, is six months, that is from October 2020 to April 2021. “Though out of the N59.2 billion earmarked for it, N33.4 billion has been released to the various DISCOs by the Central Bank of Nigeria but disbursement of the releases were very slow which resulted in many of them, accessing the fund in February.

“This largely contributed to the poor performance percentage by the DISCOs for now, on the National Mass Metering project. “But with chunk of the funds available to the DISCOs now, the implementation performance index will rise astronomically within the next few weeks.”

Suswam noted that based on the poor performance recorded so far, the essence of intervention made by the Federal Government with the N59.2 billion loan might not be achieved.

He also said, “Your performance report on the Mass Metering Project is not impressive and encouraging at all.

“Nigerians are not happy that all efforts being made by the Federal Government to get electricity consumption metered are being thwarted in one way or the other. Estimated Billings is not acceptable and that is the reason why the intervention was made.”

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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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