BIG STORY

DISCOs: BPE, CBN Give Banks 6 Month Deadline To Quit

Published

2 years ago

August 15, 2022

The Bureau of Public Enterprises, BPE, and the Central Bank of Nigeria, CBN, has handed down a 6- month deadline to banks which recently took over the shares of core investors in some Electricity Distribution Companies, DISCOs, to exit them.

The Director-General of the BPE, Mr. Alex Okoh, told Vanguard in an exclusive interview in Abuja weekend that the banks were not expected to hold the shares in perpetuity, adding that those shares must be sold to credible operators within the stipulated period.

The affected DISCOs include those of Benin, Ibadan, Kaduna, and Kano.

He explained, however, that if the bank fails to sell the controlling shares to other operators within six months, they could be given a maximum of another six months to do so.

His words: “It is important for me to mention at this point that the banks are not expected to hold the DISCOs in perpetuity.

“In fact, in conjunction with the CBN, we have given them a deadline of six months within which to sell those shares to credible operators approved by the BPE and NERC and should they not be able to meet that deadline, they can be given a maximum extension of another six months. So in one-year maximum, they should be out of the DISCOs.”

Okoh also revealed that the $500 million World Bank loan for the DISCOs to enable them to improve their facilities, such as the provision of transformers, feeders, and transmission lines, was being administered by the interim management put in place in DISCOs where the banks took over the shares of the core investors due to the latters’ failure to service their loans.

The BPE boss assured that with the effective implementation of the Presidential Power Initiative, PPI, there should be a significant improvement in power supply across the country.

“Once we can fix transmission, we will be able to free a lot of stranded power from the GENCOs to the DISCOs and to consumers.

“There are a lot of interventions going in that regard. There is the 2.3 billion Euro for the transmission and distribution so that we can wheel more power for consumers,” he said.

While admitting that transmission capacity was a major challenge due to the government’s inability to adequately fund that sub-sector, especially before 2013, Okoh noted that some citizens were also making it difficult for the expansion of transmission lines as they constituted themselves as a hindrance to the construction of lines over compensation issues.

The DG said the compensation demand could sometimes be more than the cost of the construction of the lines.

He, therefore, urged citizens to change their attitude in that regard as according to him, “transmission lines are for the benefits of everybody” and should be supported by every member of the public.

On the moribund Aluminium Smelter Company of Nigeria (ALSCON) located in Ikot Abasi, Akwa Ibom State, which transaction had been bogged for many years by litigations, Okoh said the federal government was making efforts to resolve the problem, with a view to freeing the multi-billion Naira company to commence operations.

He added that the dredging of Imo River for both imports of materials and export of products would be addressed for a smooth operation of ALSCON.

Post Views: 330

BIG STORY

BREAKING: EFCC Declares Yahaya Bello Wanted [PHOTO]

Published

15 hours ago

April 18, 2024

PorscheClassy News

Yahaya Bello, the former governor of Kogi state, has been declared wanted by the EFCC.

He reportedly evaded arrest yesterday when the commission visited his home to enforce arrest.

More to come…

Post Views: 88

BIG STORY

Hydrogen, CCHub Partner To Encourage Fintech Startup Success

Published

15 hours ago

April 18, 2024

PorscheClassy News

As the country faces economic challenges, the need for adaptive strategies in the fintech industry becomes paramount. In line with this, leading fintech startup Hydrogen Payment Services Limited (‘Hydrogen’) has teamed up with Co-creation Hub (‘CcHub’) to host an insightful event themed ‘Adapting Fintech Business Models to Economic Climates’.

The event is set to take place on Thursday, April 18, 2024, from 12:00 a.m. WAT at the CCHub office in Sabo, Lagos, will delve deep into the intricacies of Nigerian economic challenges and how these influence the fintech ecosystem. Participants will gain actionable insights on how to adapt fintech business models to volatile economic conditions by prioritising flexibility, agility, and customer-centricity.

This collaboration underscores the shared commitment of both entities to empower aspiring founders venturing into the fintech space amidst economic uncertainties. By leveraging their respective expertise and resources, Hydrogen and CcHub aim to equip
emerging entrepreneurs with the knowledge, tools, and support needed to thrive in today’s dynamic economic conditions.

Emeka Awagu, Chief Technology Officer at Hydrogen, commented on the strategic partnership with CcHUB: “Our alliance with CcHUB amplifies our shared commitment to pioneering transformative solutions in the Nigerian fintech sector. By leveraging Hydrogen’s technological expertise alongside CcHU’s innovative approach, we are primed to set a new standard for fintech excellence and drive impactful change across the industry.”

The event will feature a distinguished panel of industry experts and thought leaders. including Ina Alogwu, Group Director, Digital Transformation, ARM HoldCo; Emeka Awagu, Chief Technology Officer, Hydrogen; and Miracle Ezechi, Digital Marketing Manager, Hydrogen.

The panel discussion will be moderated to encourage an engaging and insightful conversation on the strategies and innovations required to thrive in the Nigerian fintech landscape amidst economic challenges.

Interested attendees are encouraged to register here and reserve a spot.

Post Views: 39

BIG STORY

ECONOMY: CBN Not Using Foreign Reserves To Defend Naira — Olayemi Cardoso

Published

16 hours ago

April 18, 2024

PorscheClassy News

The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, asserts that the nation is not defending the value of the naira with its foreign reserves.

He made this known on Wednesday in Washington, DC, where he is attending the International Monetary Fund-World Bank Spring Meetings.

Cardoso said $600 million came into Nigeria’s reserves account within the last two days.

The naira has appreciated against the dollar in recent weeks, gaining over 40%, from about N1,900/$ to about N1,000/$1 now. But while the naira rebound, Nigeria’s foreign reserves are dwindling, dropping to about $32.29 billion on April 15 — the lowest level in over six years.

Cardoso said, “What you’ve seen with respect to the shift in our reserves is normal in any country’s reserves where for example, debt is due and certain payments need to be made because that is also part of keeping your credibility.

“Other times money comes in, it takes it up again. Between yesterday and today, about $600 million came into the reserves account. We are looking towards a market that operates by itself, willing buyers, willing sellers and price discovery.

“The shift in our reserves has really little or nothing to do with defending naira and that is certainly not our objective.”

Post Views: 40