Business

Tariff Review: BEDC To Improve Electricity Supply, Plans 300MW Embedded Power

Published

4 years ago

February 26, 2020

Editor

‘You’ve Performed Below Expectation’-Customers

The management of Benin Electricity Distribution Company,(BEDC) Plc, Tuesday, February 26 disclosed that with a reviewed tariff, it will revolutionize electricity distribution and provide top services to customers by embarking on network re-alignment.

Speaking at a Public Consultation Forum in Benin City to review tariff increase, Chief Head of BEDC, Benin, Mr. Abel Enechiaziam, said the company is set to provide new distribution transformers and also provide dedicated express feeders to supply 24×7 power to identified customer groups.

The Public Consultation Forum was held across all BEDC franchise states of Edo, Delta, Ondo and Ekiti.

Abel assured that the company would actualize its proposal for an embedded power of about 300megawatts under the willing buyer, willing seller arrangement with independent power generators outside the Transmission Company of Nigeria (TCN) national grid in order to boost power supply and meet needs of customers.

He further assured customers that it would also improve supply to commercial entities across its coverage states due to the need to enable the companies ensure job creation and balance social lives, by adding new injection substations and 500 number distribution substations to strengthen existing network.

“Plan is ongoing to invest in electrification of electrified areas and strengthening of existing network” BEDC said, adding that it also plans to ensure 100per cent metering under the Meter Asset Provider (MAP) and 100per cent enumeration and proper mapping of customers to transformers and feeders.

Addressing customer complaints further, the Chief Head said BEDC would equip its Call Centre to a level where customer issues would be resolved at a point of discussion thereby making the Call Centre a one-stop shop for complaints resolution.

He noted that in all the electricity value chain process, customer was king and critical to sustenance of the sector, as he encouraged them to pay their bills, sayingthis would assure adequate, reliable and affordable power.

However, reacting, customers were angry about BEDC performance as all who spoke at the forum scored BEDC low.

A customer, while speaking, urged the company to jettison the planned increase on tariff and rather focus on improvement on power supply.

Another customer charged BEDC to tackle bypassing of meters as practised by some customers, warning that if tariff increases, bypassing would be order of the day.

On his part, another customer, said BEDC has performed below expectation and that all information presented by the company were false.

“Most of the information provided by you are false and misleading. In your information, your allocated Edo State community to Delta State, this reveals your lies and that you are not well-organised.

In his remark, Deputy General Manager, Consumer Affair of
Nigerian Electricity Regulatory Commission (NERC), Mr. Shittu Shuaibu, said no electricity consumers should be made to pay for service not rendered by the the electricity distribution companies (DISCOs)

He said it would be a disservice to the electricity consumers by making them to pay for what they are not given.

“Electricity is two side thing, if you don’t get the service, you don’t need to pay for it. If you don’t fuel or repair generator you cannot pay electrician.

“But we want as much as possible to ensure that BEDC have what to serve you better. The most critical thing is that they must served you before they get paid.

“If you are given service, you pay for service and if you are not given light, you should challenge it through NERC process.

He explained “customers will have to report to the Customers Complaint Unit first, and if not satisfied, take it to the Forum Office and after which, you pass on to the Commission and the issues will be resolved. it doesn’t matter whether it is metering, transformer or service delivery problem,”.

Shaibu, however, assured that the commission will do everything within the armbit of the law to ensure that electricity problems are addressed in the country.

On the issue of the revocation of the company’s lincens, he said BEDC still has additional year to prove their competency.

Business

CBN Sells Fresh Dollars To BDCs At N1,021/$

Published

4 days ago

April 23, 2024

Editor

The Central Bank of Nigeria (CBN) started fresh and direct sales of US dollars at N1,021 per dollar to Bureau De Change operators.

Nigeria’s apex bank disclosed this in a circular signed by its Director of Trade and Exchange Department Hassan Mahmud.

“We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1,021/$1. The BDCs are in turn to sell to eligible end users at a spread of NOT MORE THAN 1.5 percent above the purchase price,” the circular posted on its website read.

“ALL eligible BDCs are therefore directed to commence payment of the Naira deposit to the underlisted CBN Naira Deposit Account Numbers from today, Monday, April 22, 2024, and submit confirmation of payment, with other necessary documentations, for disbursement of FX at the respective CBN Branches.”

CBN’s move is coming as the naira is recording a slight depreciation against the dollar after weeks of gains.

In late March, the bank also sold $10,000 to each of the eligible Bureau De Change (BDC) operators in the country at the rate of N1,251/$1.

Like in the most recent sales, it warned BDCs against breaching terms of the dollar sales, vowing to sanction defaulters “including outright suspension from further participation in the sale”.

The fortunes of the naira have fallen sharply since President Bola Tinubu took over in May. Inflation figures have reached new highs and the cost of living hitting the rooftops.

Nigeria’s currency slid to about N1,900/$ some months ago at the parallel market. But in recent weeks, it has gained against the dollar.

The Nigerian authorities have also doubled down on their crackdown against cryptocurrency platform Binance and illegal BDCs.

On March 1, the CBN revoked the licences of 4,173 BDCs over compliance failures.

Business

JUST IN: FirstBank Gets New MD/CEO

Published

6 days ago

April 22, 2024

Editor

Olusegun Alebiosu has been appointed as the Acting Managing Director/Chief Executive Officer of First Bank of Nigeria Limited (FirstBank Group), effective April 2024.

Alebiosu steps into this pivotal role from his previous position as the Executive Director, Chief Risk Officer, and Executive Compliance Officer, a position he held since January 2022.

Alebiosu brings to the helm of FirstBank over 28 years of extensive experience in the banking and financial services industry. His expertise spans various domains including credit risk management, financial planning and control, corporate and commercial banking, agriculture financing, oil and gas, transportation, and project financing.

Having embarked on his professional journey in 1991 with Oceanic Bank Plc. (now EcoBank Plc.), Alebiosu has held several notable positions in esteemed financial institutions.

Prior to joining FirstBank in 2016, he served as Chief Risk Officer at Coronation Merchant Bank Limited, Chief Credit Risk Officer at the African Development Bank Group, and Group Head of Credit Policy & Deputy Chief Credit Risk Officer at United Bank for Africa Plc.

Alebiosu’s academic credentials further enrich his professional profile. He is an alumnus of the Harvard School of Government and holds a Bachelor’s degree in Industrial Relations and Personnel Management. Additionally, he obtained a Master’s degree in International Law and Diplomacy from the University of Lagos, as well as a Master’s degree in Development Studies from the London School of Economics and Political Science.

A distinguished member of various professional bodies, including the Institute of Chartered Accountants (FCA), Nigeria Institute of Management (ANIM), and Chartered Institute of Bankers of Nigeria (CIBN), Alebiosu is renowned for his commitment to excellence and ethical practices in the banking sector.

Beyond his professional endeavors, Alebiosu is known for his passion for golf and adventure. He is happily married and a proud parent.

With Alebiosu’s appointment, FirstBank of Nigeria Limited anticipates continued growth and innovation under his leadership, reinforcing its position as a leading financial institution in Nigeria and beyond.

Business

CBN Gives New Directive On Lending In Real Estate

Published

1 week ago

April 17, 2024

Editor

The Central Bank of Nigeria, CBN, has released a new regulatory directive to enhance lending to the real sector of the Nigerian economy.

The directive, issued on April 17, 2024, with reference number BSD/DIR/PUB/LAB/017/005 and signed by the Acting Director of Banking Supervision, Adetona Adedeji, signifies a notable shift in the bank’s policy towards a more contractionary approach.

In line with the new measures, the CBN has reduced the loan-to-deposit ratio by 15 percentage points, down to 50 per cent.

This move aligns with the CBN’s current monetary tightening policies and reflects the increase in the Cash Reserve ratio rate for banks.

The LDR is a metric used to evaluate a bank’s liquidity by comparing its total loans to its total deposits over the same period, expressed as a percentage.

An excessively high ratio may indicate insufficient liquidity to meet unexpected fund requirements.

All Deposit Money Banks are now mandated to adhere to this revised LDR.

The CBN has stated that average daily figures will be utilised to gauge compliance with this directive.

Furthermore, while DMBs are encouraged to maintain robust risk management practices in their lending activities, the CBN has committed to continuous monitoring of adherence and will adjust the LDR as necessary based on market developments.

Adedeji has called on all banks to acknowledge these modifications and adjust their operations accordingly. He emphasised that this regulatory adjustment is anticipated to significantly influence the banking sector and the wider Nigerian economy.

The circular read in part, “Following a shift in the Bank’s policy stance towards a more contractionary approach, it is crucial to revise the loan-to-deposit ratio policy to conform with the CBN’s ongoing monetary tightening.

“Consequently, the CBN has decided to decrease the LDR by 15 percentage points to 50 per cent, proportionate to the rise in the CRR rate for banks.

“All DMBs must maintain this level, and it is advised that average daily figures will still be applied for compliance assessment.

“While DMBs are urged to sustain strong risk management practices concerning their lending operations, the CBN will persist in monitoring compliance, reviewing market developments, and making necessary adjustments to the LDR. Please be guided accordingly.”