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Economy

Manufacturers Hail Reversal of Electricity Tariff Adjustment

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Electricity Tariff Hike

By Ahmed Rahma

The Manufacturers Association of Nigeria (MAN) has hailed the federal government for hearing its plea and suspending the recent hike in electricity tariff by the Nigerian Electricity Regulatory Commission (NERC).

MAN described the directive by the FG to suspend the implementation of the proposed electricity upward adjustment as a temporary relief.

Reacting to the directive, the Director-General of the association, Mr Segun Ajayi-Kadir, said the three weeks respite was to accommodate the spirit of the agreement between the Labour Union and the Federal Government on the tariff increase.

Business Post had earlier reported that NERC has approved another hike in electricity tariff, less than two months after the last increase, citing the partial impact of inflation and movement in forex as the rationale for the action.

“Though there is a possibility that the increase may be reconsidered during this period, there is no doubt that the National Electricity Regulatory Commission is already anticipating an increase.

“This is why the call for circumspection and pragmatism in the matter of increase remains relevant.

“No matter what becomes the outcome of the Ad-Hoc Committee’s work, an increase at this time is ill-timed and not manufacturing friendly,” the head of the manufacturers’ body said.

The DG urged the government to go beyond the reasons given for the timed suspension, to include consultations with other economic actors, such as the manufacturers.

“They are the major consumers of electricity and they are the ones whose businesses will be most impacted by the increase.

“The sector is already groaning under inclement operating environment, including the debilitating impact of COVID-19 disruptions and deteriorating infrastructure.

“It is, therefore, important for us to avoid this additional burden,” he said.

The FG had suspended the hike on Wednesday stating that it was to allow Joint Ad-Hoc Committee to work until the end of January 2021.

Ahmed Rahma is a journalist with great interest in arts and craft. She is also a foodie who loves new ideas. She loves to travel and would love to visit other African countries someday. She is a sucker for historical movies and afrobeat.

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Economy

Oando Holds AGM December 17 as Former PwC Nigeria Head Joins Board

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Oando

By Aduragbemi Omiyale

The much-awaited Annual General Meeting (AGM) of Oando Plc will take place on Tuesday, December 17, 2024, at 10 am in Lagos, a statement from the energy company has revealed.

The day would be used to present the audited financial statements of the organisation for the year ended December 31, 2023, to shareholders.

Oando will also seek the approval of investors to appoint Mr Ken Igbokwe and Mr Bashir Bello to the boards of the company with effect from Monday, November 25, 2024.

Mr Igbokwe is a highly experienced management and consulting professional with over 35 years of expertise in various sectors, including oil and gas, financial services and the public sector.

During his distinguished career at PwC Nigeria, he held key leadership roles in Assurance, Tax and Consulting.

His experience spans a wide range of areas such as statutory, financial and process audits and assurance, business valuations, dispute resolution, financial and information systems risk management, corporate strategy development, corporate performance management, and tax planning.

In his role as Country Leader of PwC Nigeria, Mr Igbokwe was responsible for driving strategic thinking and the visioning that underpinned the growth of the firm.

He was in this leadership position for 10 years during which PwC Nigeria’s business recorded tremendous growth with PwC becoming the leading “Big 4” brand. He led the PwC West Africa business into the Africa-wide PwC merger in 2012.

The new appointee contributes to public discourse and debates on public sector transformation in Nigeria and on matters which focus on corporate governance and the strengthening of the investment climate.

Mr Igbokwe holds a B.Sc. (Eng) degree in Mechanical Engineering from Imperial College, London University, which he attended as a Shell Scholar and graduated from, in 1978.

He is a current member of the Institutes of Chartered Accountants in England and Wales and Nigeria. He is also a current member of the Chartered Institute of Taxation of Nigeria.

On his part, Mr Bello is an oil and gas professional with over 32 years of experience in Technical and Executive Management positions across the industry. His expertise spans all sectors, from Downstream (Refining) to Midstream (LNG) and Upstream (Exploration and Production), with a strong focus on Operations, Engineering, Project Management, and Corporate Governance.

He has served as a Board Member for Shell Petroleum Development Company of Nigeria Limited, Bonny Gas Transport Company, NLNG Ship Manning Company Limited, and various Board Committees of Nigeria LNG.

With a proven ability in Interface and Stakeholder Management, he is skilled at delivering business value in Joint Ventures with diverse shareholder agendas, managing projects with complex interfaces and stakeholder expectations, and overseeing operations with diverse functional requirements and limited resources.

Mr Bello holds a Bachelor of Engineering (B.Eng.) in Mechanical Engineering from Bayero University Kano, Nigeria. He is a Fellow of the Nigeria Society of Engineers (NSE), and a Registered Engineer with the Council for the Regulation of Engineering in Nigeria (COREN).

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Economy

CBN Hikes Interest Rates for Sixth Time to 27.5%

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interest rate hike

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has raised the monetary policy rate by 25 basis points to 27.50 per cent to further tackle rising inflation in Nigeria.

This was disclosed by the Governor of the apex bank, Mr Yemi Cardoso, at the end of the 298th Monetary Policy Committee (MPC) meeting in Abuja.

This is the sixth time that the country has hiked interest rate this year after it announced a 50-basis-point that brought the previous rate to 27.25 per cent in September 2024.

The rationale for increasing interest rates is that higher interest rates increase the cost of borrowing for individuals and businesses. This creates a ripple effect that reduces loans spent on items like homes, cars, and investments and curbs overall spending in the economy.

Normally, low interest rates can lead to excessive borrowing and investments in assets that will then inflate their prices.

Also, increased interest rates make saving more attractive as depositors earn more on their savings. It is widely accepted that saving reduces the demand for goods and services and thus helps to stabilise prices.

Mr Cardoso also used the opportunity to reiterate that the CBN will continue to employ necessary means to bring down inflation.

He projected that Nigeria’s high inflation should moderate by the end of the first quarter of  2025.

The inflation rate continued its upward trend in October 2024, impacted by rises in the price of food, electricity, and fuels, as it came in at 33.88 per cent, relative to the September 2024 headline inflation rate of 32.70 per cent.

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Economy

Unlisted Securities Exchange Falls 0.37%

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NASD Unlisted Securities Index

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange dropped by 0.37 per cent to open the week on a negative foot on Monday, November 25.

The NASD OTC market capitalisation lost N3.95  billion during the trading day to settle at N1.050 trillion compared with the previous trading day’s N1.054 trillion and the Unlisted Security Index (NSI) decreased by 11.26 points to wrap the session at 2,997.68 points compared with 3,008.94 points recorded in the previous session.

This happened as there was no gainer or loser on record during the session, according to daily trading data.

However, there was a rise in the volume of securities traded during the opening session of the week as investors exchanged 1.7 million units compared with last Friday’s 157,791 units, indicating an increase of 948 per cent.

Also, the value of shares traded yesterday grew by 4.8 per cent to N6.5 million from the N6.2 million recorded in the preceding trading day.

The number of deals carried out in the trading session remained unchanged at 20 deals.

Geo-Fluids Plc remained as the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, Okitipupa Plc came next with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc followed with 297.3 million units worth N5.3 billion.

Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, Okitipupa Plc came next with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc was in third with 297.3 million units sold for N5.3 billion.

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