Connect with us

Business

Discos Generate N3.95trn In Five years

Published

on

Nigeria’s electricity distribution companies collectively generated about N3.95trn revenue between 2019 and the first quarter of 2024.
This is according to data from the National Bureau of Statistics (NBS).
The NBS data revealed an upward trajectory in revenue generation over the past five years, as the power distributors made N482.6billion in 2019, N526.8billion in 2020, N761.2billion in 2021, N828.1billion in 2022, N1.07billion in 2023, and N291.6billion in the first quarter of 2024.
Experts attribute this consistent growth in revenue to several factors, including ongoing tariff adjustments moving towards cost-reflective pricing, which has allowed the Discos to align revenue with the cost of providing electricity.
Also, the National Mass Metering Programme has increased the number of metered customers, reducing estimated billing and improving the accuracy of revenue collection.
The programme has also contributed to reducing Aggregate Technical, Commercial, and Collection losses that have previously plagued the sector.
Also, the enhanced regulatory oversight and the adoption of modern technology in billing and collection have streamlined processes, minimised revenue leakages, and improved collection efficiency.
However, despite this revenue growth, the Discos face significant challenges, including high unpaid bills, electricity theft, infrastructure deficits, and energy losses.
These issues have hindered the Discos’ ability to fully capitalise on the potential of Nigeria’s electricity market.
While reacting to this, the President of the Nigeria Consumer Protection Network, Kunle Olubiyo, questioned the efficiency of the Discos and called for urgent reforms.
According to him, despite the pre-privatisation commitments of the Discos to meter customers and the improved collection and billing efficiency, the power distributors had largely failed to meet their obligations.
“We cannot score the Discos more than five per cent. In terms of complaints resolution, they lack the software to track issues and have failed woefully in conflict resolution”, he said.
Olubiyo further highlighted the inadequacies of the Discos despite significant investments in the firms by the government and the Central Bank of Nigeria aimed at network improvements.
He raised concerns about the implementation of the Federal Government’s National Mass Metering Programme, accusing some meter vendors and Discos of conspiracy.
“Many of the customers listed as metered were not metered. The idea was to attach GPS coordinates to every metered point as a precondition for metering, but this was not done”, the NCPN President stated.
According to Olubiyo, the government’s ongoing intervention, which includes funding the importation and installation of two million meters annually using public funds, raises questions about the essence of privatisation.
He highlighted instances where governance or liquidity issues led to Discos being placed under receivership, with interim management teams appointed by the Bureau of Public Enterprises.
He, however, noted that the effectiveness of these interventions was often undermined by internal politics and job insecurity among Disco management.
He said, “We’ve seen board chairmen abruptly remove MDs in Abuja, Port Harcourt, and several other Discos”.
Olubiyo welcomed the recent empowerment of states to regulate electricity within their jurisdictions under the Electricity Act, describing it as a positive development.
“The migration of electricity from the exclusive to the concurrent list is a good omen”, he said.
He urged the Federal Government to invest its 40 per cent equity in Discos and shift towards resource-driven energy solutions.
Reflecting on the power sector’s performance since privatisation, Olubiyo lamented the stagnation in electricity generation.
He noted that “In 2013, the peak generation on the grid was 5,800 megawatts. As we speak, from 2013 to now, we haven’t even been able to hit 6,000 megawatts of electricity evacuation on the grid”.
Describing the present situation as “a decline or backward growth, progressing in error”, Olubiyo, however, praised the recent licensing of companies such as MTN and Honeywell to engage in Nigeria’s bulk electricity trading or captive generation.
He argued that off-grid generation and independent power plants, etc, were steps in the right direction to stabilise power supply, particularly for industrial areas.
This came as the Transmission Company of Nigeria, a Federal Government-owned firm that transmits electricity from power generation companies to distribution firms, announced that it had been grappling with funding shortfalls.
It said this has stalled the completion of 129 critical projects. TCN’s Managing Director, Abdulaziz Sule, who revealed this recently in Abuja, said the company was facing a funding gap of N637.37bn, out of a total required amount of N1.79tn.
Sule appealed to the National Assembly for intervention to address these challenges and ensure the timely completion of the critical projects. The funding gap, he noted, is delaying project completion and hindering efficient service delivery.
He said the company is dealing with other challenges including inadequate modern tools, port clearance issues, lengthy procurement processes, lack of spinning reserve, delayed donor-funded projects due to unpaid counterpart funding, and recent VAT and levy charges on offshore equipment.

Continue Reading

Business

Minister Constitutes Tech Committee On Aviation Ties With Angola

Published

on

Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, has constituted a technical committee to work with the Angolan Embassy on deepening aviation ties with Nigeria.
Special Assistant on Media and Communications to the Minister, Mr. Tunde Moshood, in a statement, said the committee would oversee logistics and help solidify plans for the Minister’s visit and potential areas of collaboration.
This development is coming after Keyamo received the Angolan Ambassador to Nigeria, Jose Bamoquina Zau, and his Deputy, Nelson Paulo Kafikiri, in Abuja.
The statement revealed that the Angola’s Minister of Transport, Dr. Ricardo Viegas de Abreu, was keen to build a synergy between both nations and was eager to tap into the wealth of experience of Nigeria’s aviation leadership.
According to the statement, “The visit is aimed at strengthening aviation ties between Nigeria and Angola, particularly as Angola embarks on a new era for its aviation industry.
“The Angolan delegation brought positive updates on the progress of Angola’s aviation sector, specifically highlighting the recent overhaul of its airport infrastructure.
Ambassador Zau informed Keyamo that the new airport, set to serve as a strategic hub for the region, will be officially inaugurated in one month’s time.
In delivering a message from the Angolan Minister of Transport, Ricardo de Abreu, the Ambassador conveyed the Minister’s warm greetings and underscored Angola’s eagerness to foster collaboration with Nigeria.
He expressed interest in exploring a bilateral air services agreement and other mutually beneficial opportunities within the aviation sector.
Ambassador Zau also extended an official invitation from Minister Ricardo de Abreu for Keyamo to attend the grand opening of Angola’s new airport next month.
He emphasised that both nations stand to gain from deeper cooperation, particularly in aviation business and infrastructure development.
In response, the aviation Minister expressed appreciation for the visit and congratulated the Angolan government on its impressive strides in aviation infrastructure.
He affirmed his commitment to attend the upcoming event and signalled Nigeria’s readiness to work closely with Angola to enhance air connectivity and explore new business opportunities.
“To ensure seamless coordination ahead of the event, the Aviation Minister has constituted a technical committee to work with the Angolan Embassy’s team.
“The committee will oversee logistics and help solidify plans for the Minister’s visit and potential areas of collaboration.
“The meeting underscores the continued commitment of both nations to expand their aviation sectors and work towards a prosperous and mutually beneficial relationship”, Moshood stated.

Continue Reading

Business

NIWA Wants Deeper Private Investment In Blue Economy

Published

on

The National Inland Waterways Authority (NIWA) has called for deeper private sector participation in the blue economy initiative to harness greater benefits from it, for national development.
The Authority also commenced moves to improve security across the nation’s Waterways, in a bid to attract private investment into the Blue economy.
Managing Director of NIWA, Mr. Bola Oyebamiji, who disclosed this to newsmen during the tour of Wari and Onithsa area offices, said NIWA is determined to revamp the nation’s economy by consolidating on Public/Private Partnerships (PPP) initiatives.
“This initiative is part of our deliberate plans to open up new opportunities to maximise full economic potentials of the nation’s waterways.
“The PPP is the way to go but we need people or investors, who have genuine intentions and purposes to enable us align with President Bola Tinubu’s Renewed Hope Agenda for economic recovery”, he said.
The agency’s boss tasked the staff to live up to expectation by working harder in revenue generation that could open rooms to better their welfare.
He warned the staff against indolence and laxity since he was committed to staff welfare and revenue generation
According to him, there is need for the staff to be disciplined and committed by rededicating themselves to the growth and development of the Authority.

Continue Reading

Business

Discount Airfares: Qatar Airways, Access Bank Extend To Dec

Published

on

The Qatar Airlines, in its efforts to further ease financial burden of air passengers, has extended its discount partnership deal with Access Bank till December 2024.
Access Bank customers, who book their flights online using Qatar Airways’ website in this deal, enjoy up to 12 percent discount on both business and economy classses.
The Bank’s customers, using the promo code “ACCESS”, can book flights to any destination in the world and travel.
Qarta Airline, in a statement through the Vice President–Africa, Hendrick du Preez, stated that the partnership reiterates the Airways’ commitment to streamline travel within and across African markets by delivering first-rate services and offerings to passengers.
“As we are in the summer season and passengers tend to want to travel to spend time with loved ones, our priority at Qatar Airways remains broadening opportunities to travel for our passengers in the African market.
“Although Africa stands as the most underserved market, we strongly believe in the power of partnerships like these in transforming travel within the continent.
“We are proud to partner with respected pan-African financial institutions like Access Bank to provide innovative incentives for passengers and customers”, he stated.
This is coming on the heels of Qatar Airways’ recent expansion of routes across the African continent along with increased flight frequencies in various locations.
Also in the release, Access Bank’s Executive Director for Corporate and Investment Banking, Iyabo Soji-Okusanya, expressed enthusiasm about the partnership.
“Our team is delighted to collaborate with Qatar Airways to bring exceptional travel benefits to our valued customers. This offering aligns with our commitment to enhancing the overall experience for those who choose Access Bank and continue to do so every year.
“By providing exclusive discounts on Qatar Airways flights, we aim to make travel more accessible and enjoyable for our customers”, Soji-Okusanya said.

Corlins Walter

Continue Reading

Trending