Business
FG Owes Power Firms N95bn in Subsidy
The Federal Government
currently owes the power distribution companies about N95 billion in subsidy for electricity usage by consumers investigation which our correspondent has revealed.
Out of the N100 billion electricity subsidy, which was to be released by the Ministry of fiancé, covered the N12 subsidy per kilowatt/hour of electricity that the government claimed it was currently paying on behalf of electricity consumers.
Based on the computation of the Nigerian Electricity Regulatory Commission (NERC(, consumers are supposed to be paying about N24 for each kilowatt of electricity per hour, but because of the citizens’ adverse reactions to higher tariffs, the government took up the responsibility of paying half of the amount as subsidy for consumers in the P2 category which most households belong to.
The Federal Government as part of its efforts to provide stable electricity, said in 2012 that it had set aside N100 billion to subsidies electricity supply for that year and the next.
Findings by our correspondent on Monday, however, indicated that only N5 billion had officially been released to the sector as subsidies.
Technically, the Federal Government is indebted to the power generation distribution and transmission companies to the tune of the subsidy arrears. Ideally, such arrears are supposed to be payable to the market operation an arm of the transmission network which acts as a treasury unit for the industry.
The power firms retire their invoices to the market operator.
With the recent upward review of gas price, NEFC and other stakeholders in the petroleum and power sectors are currently considering sharing parameters for the new electricity tariff that will soon be created.
The chairman NERC, Dr Sam Amadi, told our correspondent in an interview that the commission was encouraging the Federal Government to adopt an upfront subsidy payment mode. Where it would have to pay first before the power would be consumed.
He said, “with this, we will not be assuming that the subsidy for a particular month will be paid, and then be faced with the reality of non-payment after all. With upfront subsidy power firms will get their money in good time and consumers will have to pay less than they will ordinarily pay.
“It can be indirect subsidy in form of tax holidays and the likes of the power firms. We feel the government should be committed to upfront subsidy so that the power firms can get back their money.”
The Nigerian Electricity Regulatory Agency in 2012 did announce, the setting aside of N100 billion by the government to support the multi-year tariff older in the country.
The commissioner, Market Competition and Rates, NERA, Mr Eyo Epko, had explained then that the government would provide N50 billion that year and additional N5 billion in 2013 to support the new tariff regime.
He had said, “Over the next two to three years, the government is going to make available N50bn this year and N50bn next year to support the new electricity tariff regime.
“And by 2014, most of the subsidy will go out except the cross-subsidy provide by the higher classes for the R1, that one will be made but the government subsidy will go out of the Nigerian electricity market.
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter