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DisCos Generate N291.62bn Revenue in Q1 2024

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By Adedapo Adesanya

The Nigerian Electricity Regulatory Commission (NERC) has indicated that power Distribution Companies (Discos) in the country made N291.62 billion in revenue in the first quarter of 2024.

The newly-released data showed that the N291.2 billion was from the N368.65 billion billed to customers, translating to a collection efficiency of 79.11 per cent, which represents an increase of over 5.32 per cent when compared with the 73.79 per cent recorded in the fourth quarter of 2023.

Aggregate Technical, Commercial and Collection (ATC&C) Loss in the period under review was 36.36 per cent comprising technical and commercial loss of 19.55 per cent and collection loss of 20.83 per cent, the report indicated.

This showed that the ATC&C loss improved by 5.75 per cent compared to the 42.11 per cent achieved in the preceding quarter.

The ATC&C loss provides a consolidated report of how much revenue a Disco can collect relative to how much it should have collected based on the volume of energy it received and sold to customers. It is the indicator that evaluates the actual energy and revenue loss in electricity distribution systems.

During the quarter, Ikeja was the only Disco that recorded a lower ATC&C of 15.81 per cent than its target of 18.73 per cent, the report added.

The inability of Discos to achieve their respective ATC&C targets meant that they were not able to recover the full revenues required to provide returns to investors.

In Q1 of 2024, the cumulative upstream invoice payable by Discos was N114.12 billion, consisting of N65.96 billion for adjusted generation costs from the Nigerian Bulk Electricity Trading Plc (NBET) and 448.16 billion for transmission and administrative services by the Market Operator (MO), the report stressed.

Out of this amount, the Discos collectively remitted a total of N110.62 billion, that is N65.52 billion for NBET and N45.10 billion for MO, with an outstanding balance of N3.50 billion.

According to NERC, this translates to a remittance performance of 96.93 per cent in the first three months of 2024 versus the 69.88 per cent recorded in the last three months of 2023.

The average energy offtake by Discos at their trading points during the period under review was 3,283.87MWh/h, which was a decrease of -429.29MWh/h (11.56 per cent) compared to the 3,713.16MWh/h recorded in the previous quarter.

In addition, the total energy received by all Discos in 2024/Q1 was 7,171.93GWh, while the energy billed to end-use customers was 5,769.52GWh, translating into an overall billing efficiency of 80.45 per cent, representing an increase of 2 per cent relative to the 78.45 per cent recorded in Q4 of last year.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Customs Agents Ask Tinubu to Halt Planned Shipping Charge Hike

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By Adedapo Adesanya

The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), the umbrella body of customs agents in Nigeria, has petitioned President Bola Tinubu to compel the Nigerian Shippers’ Council (NSC) to suspend the planned increase in shipping charges pending the review by the standing committee.

According to Mr Lucky Amiwero, the president of the body, in a letter to the President, the increase is a clear contravention of the Memorandum of Understanding (MOU) signed in respect of local shipping charges between providers and users of shipping/Port and related service approved by the federal government.

The MoU under Articles 2(b)&4 clearly states that any other charges shall require agreement between the Parties concerned through the Nigerian Shippers Council, which must be complied with.

“In line with the provisions of Articles 2 and 4 of the Memorandum of Understanding, there is a need to follow the prescribed procedure as contained in the MOU. First is by submitting the information of the increase to the standing committee, including the detailed information, why the increase, and the percentage, to the standing committee for consideration and review of any increase

“We hereby request the suspension of any Local Shipping Charges increase, pending the review by the standing committee, which entails the detailed information of the increase, the Percentage (%), and if the Increase is necessary, to be sent to the standing Committee as approved by the Federal Government,” he said.

The official said the NSC were supposed to forward all detailed information on the increase in the local shipping charges to the standing committee, who are signatory to the MOU, and then to review in line with the approved federal government directive.

“We refer the government to the usual procedure of initiating an increase in local shipping charges. Notification of increase as proposed is always forwarded to the standing committee, reference 2003 NSC/TOD/FPS/011/VOL.V/54 OF 20TH JUNE, and NSC/TOD/FPS/011/VOL.35 OF 14TH April 2003 in line with article 2(b)&4 of the MOU.

“In line with Article 2(b)&4 of the memorandum of understanding, the request made by Shipping Association of Nigeria (SAN), which was forwarded to the Shippers Council and the Shippers Council forwarded the same to the technical standing committee for review,” he added.

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Presidency Raises Alarm Over Politically Motivated Deepfake Campaigns

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By Adedapo Adesanya

The presidency has raised alarm over what it described as a growing pattern of digitally manipulated content aimed at exploiting religious sentiments for political purposes.

In a public service announcement issued by the Office of Digital Engagement and Strategy, it was disclosed that “deliberate attempts” to mislead Nigerians through deep fake videos and false narratives across online platforms had been identified.

According to the statement, a manipulated video surfaced on Tuesday, featuring altered audio and false attributions designed to portray President Bola Tinubu in a negative light.

It noted that a similar attempt followed shortly after, involving a fabricated video linked to a religious leader, allegedly intended to incite Muslim communities against the President.

The presidency said the recurring pattern suggests a coordinated effort to inflame religious tensions and sow division, particularly as political activities begin to intensify ahead of future elections.

It warned that “desperate actors” are likely to continue deploying misinformation tactics, including distorting religious messages, manipulating context, and spreading provocative content through social media and messaging platforms.

The presidency urged Nigerians to exercise caution before sharing sensitive or inflammatory content, encouraging citizens to question the motives behind such materials and to verify information through credible sources.

Describing the trend as “coordinated manipulation at scale,” it stressed that such actions are neither patriotic nor reflective of genuine political engagement.

The statement further warned that individuals and groups involved in the creation and dissemination of false information would be held accountable under relevant Nigerian laws, including those relating to cybercrime, incitement, and threats to public peace and national security.

It concluded by calling on citizens to remain vigilant and united in safeguarding the country’s social cohesion against digital disinformation.

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Tinubu Says Next Phase of Reforms Will Directly Impact Nigerians

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By Adedapo Adesanya

President Bola Tinubu has said his administration plans to prioritise translating ongoing economic reforms into tangible improvements in the daily lives of Nigerians as citizens continue to grapple with the effects of subsidy removal and foreign exchange reforms.

In a nationwide broadcast to mark the third anniversary of his administration, the President acknowledged the hardship caused by the removal of the fuel subsidy and foreign exchange reforms, but insisted that the measures were necessary to stabilise the economy and prevent a deeper national crisis.

He was sworn in on May 29, 2023, and immediately declared the removal of the fuel subsidy — a decision that sent petrol prices up immediately and had an effect on food and transportation.

He promised that the government would continue efforts to keep food prices low, noting that prices had already dropped from their peak levels in 2023 and 2024.

Mr Tinubu also promised lower transportation costs as commercial vehicle operators convert from petrol engines to compressed natural gas and electric vehicles.

The President said when his administration assumed office in 2023, Nigeria was facing severe economic and structural challenges, including mounting fiscal pressures, unsustainable fuel subsidies, declining revenues, exchange-rate distortions, rising debt-servicing costs, insecurity, energy constraints and weakening public confidence in institutions.

President Tinubu said when his administration assumed office in 2023, Nigeria was facing severe economic and structural challenges, including mounting fiscal pressures, unsustainable fuel subsidies, declining revenues, exchange-rate distortions, rising debt-servicing costs, insecurity, energy constraints and weakening public confidence in institutions.

According to him, the country was spending as much as N18.4 billion daily on petrol subsidy payments at the peak of the regime, with over N4 trillion spent on subsidy in 2022 alone.

He also said multiple exchange-rate windows and forex arbitrage led to massive distortions, with the country losing more than N8 trillion within three years to speculative activities and rent-seeking.

“The situation demanded urgent and courageous action. Difficult but necessary decisions had to be taken to stabilise the economy and prevent a deeper national crisis. The easy choices would have been politically convenient. But leadership demands courage, especially when the right decisions are difficult.

“Had we refused to act, our nation would have drifted towards fiscal breakdown, worsening poverty and severe economic uncertainty. Together, we chose reform over ruin and decisiveness over hesitation. We chose long-term national recovery over short-term comfort,” he said.

The President admitted that the reforms triggered a sharp rise in the cost of living and placed enormous pressure on families, workers and businesses, while many young Nigerians seeking jobs became discouraged.

“I remain deeply conscious of those sacrifices, and I assure you: your sacrifice has not been in vain,” he stated.

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