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Tariff Hike Looms For Band A Feeders As Monthly Power Subsidy Hits N181bn

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Electricity customers on Band A feeders may face a tariff increase due to the rising electricity tariff shortfall, or subsidy.

The Federal Government’s electricity subsidy rose from N102.30bn in May to N181.63bn in September.

In April, the Nigerian Electricity Regulatory Commission removed subsidies for Band A feeders, which had a N140.7bn subsidy.

This change raised tariffs to N225/kWh for Band A customers, who receive at least 20 hours of electricity daily.

The decision sparked outrage among Nigerians, including labour unions and education and health institutions, whose electricity bills tripled.

When the subsidy dropped to N102.30bn in May, the government lowered the Band A tariff to N206.80/kWh. However, the tariff increased to N209/kWh in July as the subsidy rose to N158bn in June.

According to data released by the NERC, the subsidy rose to N163.87bn in July, N173.88bn in August, and N181.63bn in September, fuelling speculations that there may be another tariff increase in the October Multi-Year Tariff Order unless the cost of power generation drops.

It was gathered that the foreign exchange crisis has been the major driver of the electricity subsidy. The NERC put the dollar exchange rate at N1,494.1 in July; 1,564.3 in August; and N1601.5 in September.

According to the regulator, the dollar rate and inflation are the determinants of the cost of power production. In the MYTO order to all the power distribution companies for September, the NERC said, further to Section 23 of the MYTO-2024, the supplementary orders are to reflect the changes in the pass-through indices outside the control of licensees including inflation rates, naira/dollar exchange rate, available generation capacity and gas price for the determination of cost-reflective tariffs.

The naira to the US dollar exchange rate of N1,601.50 to a dollar was adopted for September.

The Nigerian inflation rate of 33.40 per cent for July 2024 as published by the National Bureau of Statistics was applied to revise the Nigerian inflation rate projection for 2024 while the US inflation rate of 2.90 percent for July 2024 was applied to revise the US Inflation rate projection for 2024.

As of September, the NERC maintains the benchmark gas-to-power price of $2.42/MMBTU based on the established benchmark price of gas-to-power by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in line with Section 167 of the Petroleum Industry Act 2021.

The cost of power generation is also being impacted by contracted gas supply and transportation prices outside the domestic gas delivery obligation quantities based on effective gas sale agreements approved by the commission.

When the commission reduced the Band A tariff to N206/KWh in May, its spokesperson, Usman Arabi, said that the reduction was due to the naira appreciation in the foreign exchange market.

It was observed that despite the rise in the cost of power generation, the Federal Government has yet to approve another tariff hike, perhaps due to the current economic hardship in the country, especially with the rise in the cost of premium motor spirit otherwise known as petrol.

For example, in the Abuja Electricity Distribution Company, the commission said the energy delivered was 611 megawatt-hours per hour in April.

The same was delivered from May to September. While the generation cost was N103.9 per kilowatt-hour in April, it dropped to N87.33/KWh in May and rose to N113.69/KWh in September.

The AEDC had a transmission and admin cost of N9.1/kWh in April, N8.9/kWh in May and N9.8/kWh in June. It is N10.4 in September.

It was gathered from the NERC data that the end-user cost-reflective tariff in AEDC was N185/kWh in July; N192.2/kWh in August and N195.5/kWh in September.

Similarly, the end-user allowed tariff was N117.31/kWh in the three months, indicating that despite the rise in the cost of power generation, the NERC pegged the allowed tariffs at the same rate in July, August, and September.

However, it was gathered that the Discos are already complaining over the non-cost-reflective tariffs.

Some of them are currently refusing to off-take electricity allocated to them from the grid, demanding that subsidies be removed in all bands.

A top official of one of the Discos had said that the power companies were finding it difficult to pick the extra energy produced by generation companies because they were not happy with the tariff on other bands apart from Band A.

“As it is now, we are operating at a loss. Yes, they supply more power but this problem could be solved with improved tariff for the other bands and more meter penetration to recover the cost,” the Disco official, who pleaded not to be named due to lack of authorisation to speak on the matter, said.

The Minister of Power, Adebayo Adelabu, recently decried the rejection of power by electricity distribution companies, describing it as regrettable.

According to the minister, generation peaked above 5,000 megawatts recently, but “unfortunately, it had to be ramped down by 1,400MW due to the inability of the Discos to pick the supply.”

Adelabu lamented the development, saying “This is really regrettable considering that the government is on course to increase generation to 6,000MW by the end of the year.”

Adelabu called on power distribution companies to take more energy to prevent grid collapse as the grid’s frequency drops when power is produced and not picked by the Discos.

 

Credit: The Punch

BIG STORY

Lagos Dislodges Illegal Occupants Under Eko Bridge

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The Lagos Environmental Sanitation Corps (LAGESC), widely known as KAI, announced on Monday that it had dislodged occupants from 84 rooms constructed under the Eko Bridge at Elegbata, on Lagos Island.

The Corps Marshal, retired Major Olanini Cole, made this known in a statement signed by the agency’s Spokesperson, Mr. Lukman Ajayi, in Lagos.

Cole explained that one individual, who allegedly constructed an eight-room toilet and connected the pipes to the Lagoon, was also arrested during the operation.

He stated that the operation was carried out after a member of the public was attacked at the location.

The individual subsequently filed a complaint with the state Commissioner for Environment, who issued an order for the demolition of the illegal structures.

Cole further revealed that some of the people evicted had been residing there for the past 30 years.

“It is interesting that eight toilet pipes were linked to the Lagoon, close to where fishermen were fishing. Some of the occupants were cooking for the public in that place.

“The water they are using to cook can cause public health hazards. One person operating the toilet was detained,” the Corps Marshal added.

He also mentioned that the evictees claimed they had resorted to living there due to their inability to afford decent housing.

Cole concluded that the operation would continue across various parts of the state to dislodge illegal occupants from black spots.

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BIG STORY

Lagos 2027: Early Promptings Of Idiocy — By Shola Oyeyipo

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There have been subtle projections for the Lagos state governorship election in 2027. Unfortunately, these early promptings seem to lack the requisite intellectual rigour for the dynamic politics and leadership demands of the state of acquatic splendour. Shola Oyeyipo writes.

A general build-up to the 2027 national elections can no longer be dismissed as “too early” again, given the current provisions of the nation’s electoral laws. By the letters of these laws, elected officials can hardly savour two years at a stretch to deliver on their promises, before campaign distractions commence.

Sections 76(2), 116(2), 132(2) and 178(2) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), state that elections shall hold not earlier than one hundred and fifty (150) days and not later than thirty (30) days before the expiration of the term of office of` the last holder of that office.

By these provisions, the electoral commission, INEC, is empowered by Section 28(1) of the Electoral Act 2022 to issue Notice for the elections not later than 360 days before the date of the elections.

Once this is done, governance takes the back stage and politics becomes the in-thing. Thus, if anyone is starting to project for the next bout of election, it may be considered part of the build-up, albeit an unlawful indulgence at this time.

Yet, the recent balloon trials about the likely turn that the Lagos governorship might take were not only poor attempts at simulating anything, they failed to show a grasp of the issues that might dominate political discourse at this time.

In one of those efforts, the failure to credit the president, Asiwaju Bola Tinubu, with deserving political intelligence by expressly tipping his son, Seyi, as a likely choice for the Lagos governorship,  was one idiotic undertaking loaded with absolute baloney.

Excuse qualification for a bit as a different debate on its own, no other more serious political considerations, including religion and geopolitical factors spared a thought for him.

How a president, who would be battling to return to office, would willfully set his empire on fire, is unlikely his disposition, even though a renowned risk-taking political juggernaut.

It’s no doubt a delicate wager and there’s no debating the fact that no politician worth his salt would travel, not just on such a highway to nowhere, but obstreperously stoke a fire that would consume all that he already has in the bag.

That said, the qualification debate can now step forward. However, anyone looks at this, what has Seyi done that would make his father push him forward for the Lagos governorship?

Take a quick review of the profiles of everyone who had governed Lagos, starting from his father and say to yourself which of them he comes close to, including Akinwunmi Ambode, who was not allowed to seek re-election?

The Yoruba will readily ask anyone with poor reasoning to smell his own words and tell how badly it stinks. Perhaps, those pushing this agenda should read over their garbage and tell themselves how that is feasible with all the variables waiting to determine the next choice for Lagos.

Curiously, the other leg to the early promptings and their tawdry delivery was the veiled move to put down some names, while making others appear impossible choices.

It is true and arguable that the Senator representing Lagos East, Tokunbo Abiru, is a good material for Lagos. From the halls of many banks to the red chamber, it is hard to dismiss or downplay his eligibility, suitability and capacity.

He fits the bill in all ramifications and has earned a constant mention in the race for the Lagos governorship, even before he went to the senate. These notwithstanding, he, too, would battle other factors, although determined by the “owner” of Lagos, when the time comes. His choice is therefore not a given yet.

Interestingly, one name that is gradually creeping into the mix, and which a majority of the Lagos politicians are coming to terms with as seemingly fitting the bill and picture of Tinubu’s unusual choice for governor is the current Minister of Education, Dr. Tunji Alausa.

Whatever analysis anyone is doing now that does not yield a deserving space to Alausa is probably clowning for want of what to write. He may appear unnoticed and unpopular for now, many observers from Lagos already see his redeployment from junior minister at the Ministry of Health to Education as instructive.

This development, they now argue, was not only to properly position and prepare him for the Lagos challenge, they are convinced that the ministry would start to get more votes as part of design to empower and put him on a stronger footing ahead of the decision to either draft him into the race or empower him.

For an average politician, his nomination to the cabinet was not a surprise. The duo of Tinubu and Alausa had come a long way since their days in the United States. While the latter was said to have done a lot in service for the former back in the day, Tinubu has not had the opportunity to compensate him. The time to do so is now.

Unfortunately, there’s one more name that is already being mentioned, sadly in talk-down tone and that is the current Deputy Governor of Lagos State, Dr. Obafemi Hamzat – a man of class and distinction.

While no one can emerge Lagos governor without the blessing of the president, except, of course, God personally steps in, Hamzat is one material that both the political class and the ordinary citizens of the state have continued to tip as Lagos’ best bet. Their reasons suit all logics.

 

First, as the current deputy governor, who would have run the state with Governor Babajide Sanwo-Olu for eight years by 2027, it would make transition easy. The fact that he understands the development agenda of the state as an active player cancels out many “ifs”.

In addition, he satisfies practically all political considerations as far as the race to the Lagos governorship is concerned. Smart, sound and very intelligent, he is also hands-on, so much that his choice would naturally relieve the president of any worry back home while the battle for his reelection rages across the nation.

His knowledge of Lagos, development politics, issues and the management of the political class puts him miles ahead of everyone else. This also explains while those conversant with these facts but want someone else have continued to use his strengths against him, insinuating that the president would not field a man, who seems solid in everything.

By implications, the move is intended to set him up for failure and make him lose favour before the president. Indeed, some have also openly sung to him that anyone who overtly or subtly indicates interest in the governorship never gets it, citing the president’s style as constant in this decision.

However, while it may appear that the president has always gambled with his choice of the Lagos governor, and has always been lucky to end up with good hands, including Ambode, his inadequacies nonetheless, political dynamics also demand a review of strategy for results that are in sync with current realities.

At the end of the day, the only person who will determine the next governor of Lagos state is God through the instrumentality of the people.

The same God has also placed in President Tinubu, the power and influence to choose right on behalf of the people again in 2027, without downplaying the prevailing factors, both in the state and his own election.

But the choice candidate must have the right character, temper, knowledge and capacity to do the job. After all, this is Lagos.

In the final analysis, the early promptings are not completely out of place and may help stoke real conversations ahead of the Lagos 2027 poll. However, pandering to obvious idiocy in order to flesh up weak analyses is counterproductive, even to their own idea of who the cap fits.

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BIG STORY

Stowe School, Woodhall Capital International Foundation Strengthen Educational, Philanthropic Ties In Nigeria

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In a recent event held at the Capital Club in Lagos, Woodhall Capital International Foundation hosted Dr. Anthony Wallersteiner, head of The Stowe Group, alongside his team from the prestigious Stowe School in the UK.

The event, aimed at showcasing the foundation’s work in Nigeria, provided an opportunity to introduce the Stowe team to local communities, Nigerian alumni, and prospective parents.

Stowe School, an esteemed British institution for students aged 13–18, is renowned for its educational excellence and commitment to nurturing students for future challenges.

Woodhall Capital, with its mission to promote Nigeria globally, organised the event to highlight Nigeria’s investment potential and cultural richness.

Viavo Hunponu-Wusu, chairman of Woodhall Capital Foundation, emphasised the importance of such collaborations, noting that the partnership aligns with the foundation’s focus on education, which he describes as “key to addressing societal challenges.”

Dr. Wallersteiner spoke of the meaningful connection between UK charitable organisations and Nigerian philanthropists, stating, “It is exciting to see what can be achieved by working together to make Nigeria, and indeed the world, a better place.”

He shared insights into Stowe School’s initiatives, which include educational programmes and humanitarian outreach in areas like Maiduguri and Borno.

“We’ve been in Nigeria for over a week, feeding more than two thousand children and assisting with education programmes,” Wallersteiner revealed, noting the school’s efforts to educate teachers, support girls’ education, and provide aid to vulnerable youth.

During their stay, the Stowe School team also visited the Soup Kitchen of Woodhall Capital International Foundation, in collaboration with the Kanu Heart Foundation.

Here, they experienced Nigerian cuisine and learned about the foundation’s projects, such as providing dormitories for street children.

The partnership aligns with Woodhall Capital’s broader objective to demonstrate Nigeria’s generosity, with foundation founder Moji Hunponu-Wusu highlighting that “Nigerians are a giving nation, something that isn’t always recognised.”

Stowe School alumni parent, Otunba Funsho Lawal, commended the institution’s impact on his four children, stating, “Stowe brought out the best in my children, shaping them into disciplined and focused individuals.”

Lawal also praised the school’s stability under the consistent leadership of Dr. Wallersteiner.

The event reinforced Woodhall Capital’s commitment to expanding educational opportunities in Nigeria through partnerships with institutions like Stowe.

Hunponu-Wusu expressed her desire for more Nigerians to access high-quality education, both locally and internationally, adding, “We aim to show that our focus on education is international and that Nigerian families also give generously.”

This partnership between Woodhall Capital and Stowe School is part of a larger vision to foster cross-cultural understanding and elevate Nigeria’s educational landscape.

Through such initiatives, Woodhall Capital International Foundation seeks to create a lasting impact that extends beyond borders, celebrating philanthropy and education as universal pillars of progress.

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