Economy
Expect Chaos if you Criminalise Estimated Billing–NERC Warns Reps
By Modupe Gbadeyanka
The National Assembly has been warned of an imminent danger in the power sector if it attempts to criminalise the issuance of estimated bills by power distribution companies, fondly called discos, to unmetered customers.
At the moment, consumers of electricity in the country, who have not been metered by their discos, pay huge amount of money for their monthly power consumption as a result of the estimated billing system currently in operation.
This week, a bill sponsored by a lawmaker from lagos, Mr Femi Gbajabiamila, seeking a law to criminalise estimated billing for electricity consumers in the country, passed second reading on the floor of the House of Representatives.
Reacting to this development, the Nigerian Electricity Regulatory Commission (NERC) said passing this bill could spell doom on the struggling power sector in Nigeria.
Commissioner for Finance and Management Services at NERC, Mr Nathan Shatti, emphasised that a regulation that deals with estimated billing already exists in the power sector, stressing further that another law on the same matter may lead to a complete disorder in the industry.
Mr Shatti disclosed that the commission had met with the lawmaker, who sponsored the bill, to explain why it would not be right to have such a law at the moment.
“Few weeks ago, a bill was presented on the floor of the House of Representatives about criminalising estimated billing and ensuring prepaid meters supply. We went to meet the main sponsor of the bill and we told him that we already have a regulation on this to address the issues. And we told him that you should go by that rule, there would be chaos in this industry.
“‘And even if this is for one week, it will be in his record and he will not be able to contest in an election. That is the kind of law we want.’ And honestly, he (lawmaker) was happy with our submissions and he said they were going to look into it,” he added.
He stated that the commission was pleased with the concern of the House of Representatives, but stressed that one of the major challenges in the power sector was energy theft.
“So, we really like what they (lawmakers) are doing and this is because they are bringing to the fore the sufferings of people for all Nigerians to know. They do this because they have the voice and they have constituencies to go back to. Also, remember that 2019 is by the corner; they have to show their people that they are doing something,” he added.
The commissioner also stated that meter bypass was beyond what NERC regulations could address, adding that those involved in energy theft were usually people who could be classified as senior citizens.
He, however, noted that the commission would send a team to Ghana to visit a company that claimed to be manufacturing meters that could detect energy theft.
“Next week, a team from NERC is going to Ghana, because we got a company that is actually devising a kind of meter that can detect energy theft. They came, made a presentation and we felt what they are showing is good and so, our team is going to Ghana to look at it.
“But let me just explain something about meter bypass or energy theft; it is beyond regulation and it is beyond enforcing the regulation. It is also beyond technology. There is no amount of technology or checks that you will do to eliminate energy theft.
“However, there are things you can do and it has to do with our moral psyche as Nigerians. If you check properly, the calibre of people who steal energy are the top guys. They are those people who you think will never do such things, not the small people in the society. So, it is a problem of a society and we all have a responsibility to stop it,” Punch quoted the senior official of NERC as saying.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange weakened further by 1.75 per cent on Tuesday, August 18, triggered by losses recorded by the duo of Central Securities Clearing System (CSCS) Plc and Food Concepts Plc.
CSCS Plc, the Nigerian securities depository company, lost N8.48 to settle at N90.02 per share compared with the previous value of N98.50 per share, while Food Concepts Plc, the parent company of fast food franchise, Chicken Republic, dropped 15 Kobo to end at N2.35 per unit versus N2.50 per unit.
Consequently, the NASD Security Index (NSI) further declined by 77.26 points to 4,348.76 points from Monday’s 4,426.02 points, while the market capitalisation dipped by N46.37 billion to N2.610 trillion from N2.656 trillion.
During the session, the volume of securities bought and sold by investors slumped by 82.6 per cent to 113,728 units from the previous session’s 652,081 units, and the value of securities slid by 12.4 per cent to N9.4 million from the preceding day’s N10.7 million, while the number of deals increased by 47.6 per cent to 31 deals from 21 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units traded for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 79.7 million units transacted for N5.8 billion.
GNI Plc was also the most traded stock by volume on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, trailed by Infracredit Plc with 2.3 billion units worth N6.5 billion, and Resourcery Plc with 1.1 billion units exchanged for N415.7 million.
By Adedapo Adesanya
The value of the Nigerian Naira further appreciated against the US Dollar by N6.22 or 0.46 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, August 18, to N1,343.32/$1 from the previous rate of N1,349.54/$1.
This occurred amid steady growth in Nigeria’s external reserves, rising to $52.32 billion as of August 17, 2026, giving the Central Bank of Nigeria (CBN) enough arsenal to defend the local currency when the need arises in the FX market.
Also, the domestic currency improved its value against the Pound Sterling in the official market yesterday by N10.85 to close at N1,819.26/£1 compared with the previous day’s N1,830.11/£1, and gained N8.55 on the Euro to sell at N1,556.24/€1 versus Monday’s N1,564.79/€1.
In the same vein, the Naira appreciated against the Dollar in the black market during the trading session by N5 to quote at N1,390/$1, in contrast to the N1,395/$1 it was traded a day earlier, and strengthened at the GTBank forex desk by N7 to N1,357/$1 from N1,364/$1.
NAFEM interbank FX turnover declined as financial institutions’ activities moderated. Interbank FX turnover dropped by 16.6 per cent to $364.709 million from $437.529 million, with the number of deals down by 39.3 per cent to 108 deals from 178 deals.
As for the cryptocurrency market, Bitcoin (BTC) traded at $64,120.36, as most other major cryptocurrencies closed in the green amid a global selloff in chip stocks.
An Asian semiconductor gauge dropped more than 3 per cent, following a 5 per cent slide in the Philadelphia Semiconductor Index on Tuesday, its worst session since late July, while investors await US Federal Reserve minutes and are widely expecting no rate change in September.
Solana (SOL) gained 1.4 per cent to sell at $76.66, Cardano (ADA) added 0.9 per cent to trade at $0.1748, Ethereum (ETH) grew by 0.6 per cent to $1,905.54, Ripple (XRP) appreciated by 0.4 per cent to sell at $0.9986, TRON (TRX) improved by 0.3 per cent to $0.3327, and Dogecoin (DOGE) soared by 0.2 per cent to $0.0698.
However, Binance Coin (BNB) depreciated by 0.4 per cent to $600.88, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited has recently struggled to regain its spark due to continued selling pressure from investors reducing their exposure to equities in favour of fixed-income investment instruments.
Yesterday, the stock market further shed 0.35 per cent on the back of profit-taking in the banking sector, which closed lower by 1.83 per cent. The consumer goods space lost 0.13 per cent, and the energy counter depreciated by 0.01 per cent, while the insurance index gained 0.04 per cent, with the industrial goods segment closing flat.
Business Post reports that the All-Share Index (ASI) decreased on Tuesday by 843.42 points to 241,611.23 points from 242,454.65 points, and the market capitalisation shrank by N545 billion to N155.973 trillion from N156.518 trillion.
Like the previous session, investor sentiment was weak after Customs Street ended with 22 price gainers and 37 price losers, indicating a negative market breadth index.
Red Star Express weakened by 10.00 per cent to N16.20, Trans-Nationwide Express crashed by 9.94 per cent to N2.81, Meyer depleted by 9.88 per cent to N15.05, Chellarams plunged by 9.77 per cent to N9.70, and Fortis Global Insurance moderated by 9.70 per cent to N2.14.
On the flip side, Haldane McCall surged by 9.97 per cent to N3.20, Veritas Kapital climbed by 7.09 per cent to N1.36, Tantalizers rose by 5.26 per cent to N4.00, RT Briscoe appreciated by 4.31 per cent to N10.90, and Regency Alliance grew by 3.66 per cent to 85 Kobo.
A look at the activity chart for the day showed the volume of transactions significantly retreated by 66.94 per cent as a result of the absence of big-ticket trades, and the number of deals dropped by 21.57 per cent, while the value of trades increased by 20.09 per cent.
Market participants traded 429.8 million stocks valued at N27.5 billion in 35,683 deals during the session compared with the 1.3 billion stocks worth N22.9 billion transacted in 45,494 deals on Monday.
Sterling Holdings led the activity chart with a turnover of 51.6 million units for N390.6 million. FCMB traded 50.0 million units worth N584.8 million, Chams sold 32.4 million units valued at N134.5 million, Veritas Kapital exchanged 180 million units for N24.3 million, and First Holdco transacted 17.0 million units worth N2.2 billion.
