Business News
TCN plans to offset loans by having Nigerians pay for it
The Transmission Company of Nigeria (TCN) may hike tariff in efforts to raise enough capital in order to offset its debts.
Electricity consumers in Nigeria may soon be forced to pay more tariff to the Transmission Company of Nigeria (TCN) in order to facilitate the company’s efforts to raise enough capital to offset its debts.
Moreover, the company’s management believes that the consumers currently pay lower tariffs than they are supposed to. Therefore, there is a need for an “extraordinary tariff review”.
Already, a proposal to this effect has been sent to the Nigerian Electricity Regulatory Commission (NERC) since last year. But no approval has yet been given.
TCN’s Chief Executive Officer, Mr Usman Mohammed Gur, recently lamented over the situation with the new tariff, wondering why “unfortunately up till now, it has not been approved.”
Meanwhile, a source at TCN who spoke on condition of anonymity, expressed high hopes that the new tariff plan would indeed be approved soon. The tariff will also facilitate debt settlement.
“What we want to assure Nigerians is that once we have cost reflective tariff the loan we are taking is not going to be a burden on the nation. TCN will pay its own loan. I want you know that the Eurobond we took, TCN is paying the loan, it is not allowing government to pay. We are on track on paying that Eurobond.”
Note that under the current tariff, the Transmission Company of Nigeria receives an average of 40% of the electricity market’s monthly revenue.
The average Nigerian household spends about ₦10,000 monthly on electricity per month. But this is mostly for services not rendered because the epileptic power supply is the norm.
About Transmission Company of Nigeria
The TCN manages Nigeria’s electricity transmission network. It is one of the 18 companies that was unbundled from the defunct Power Holding Company of Nigeria (PHCN) in April 2004 and is a product of a merger of the transmission and system operations parts of PHCN.
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Business News
Best payment gateway platforms to avoid scams in your business
A payment gateway is a technology used to accept and hasten debit or credit card purchases from customers.
Many businesses in Nigeria have adopted the online payment method because it is safe, fast, secure, and convenient. In recent times, fintech startups in Nigeria have developed safer payment channels to help businesses conveniently receive online payments.
What is a payment gateway?
A payment gateway is a technology used by merchants to accept debit or credit card purchases from customers. Integrating a payment gateway into your business is highly beneficial as it offers a more secure transaction process for your customers. It can also expand your customer base exponentially because many people will have access to your business at all times. The payment gateway offers faster transaction processing and customers can avoid the inconvenience of long queues.
In Nigeria, there is a wide range of payment gateways to choose from as a business owner. Before choosing a payment provider, you have to find out what each provider is offering and at what cost. Also, look out for PCI-compliant and SSL certificates in order to avoid security problems.
Here is a list of the top payment gateway providers and what they offer.
Paystack
Paystack is a growth engine for a new generation of innovative, forward-looking organizations operating in Africa. The company makes it easy for businesses to accept secure payments from multiple local and global payment channels, while also providing tools to help you retain existing customers, and acquire new ones.
Onboarding and approval take approximately 30 minutes, Paystack accepts payment in USD, GHC, NGN; and offers a wide range of payment methods like Card, Bank Account, Bank Transfer, USSD, Visa QR, and Mobile Money.
Pricing
- Integrating Paystack is 100% free.
- Paystack charges 1.5% + ₦100 for local transactions and 3.9% + ₦100 for international transactions.
- ₦100 fee is waived for transactions less than ₦2500.
Flutterwave
Flutterwave provides the easiest and most reliable payment solution for businesses anywhere in the world. The company makes it easier for Africans to build global businesses that can make and accept any payment, from anywhere across Africa and beyond.
Onboarding and approval happen immediately. Flutterwave offers a wide range of payment methods like Mastercard, VISA, Bank Account, USSD, Bank Transfer, POS, and Visa QR (for local payments); and Mastercard, VISA, and AMEX (for international payments).
Pricing
- Integrating Flutterwave is free.
- Flutterwave charges 1.4% for local transactions and 3.8% for international transactions.
- Processing fees are capped at a maximum of NGN 2,000.
Remita
Remita is a payment solution that helps individuals and businesses make and receive payments, pay bills, and manage their finances across multiple banks. Remita accepts payment in Naira and USD.
Remita offers a wide range of payment methods including Internet Banking, Debit/Credit Cards, Bank Branch, POS Terminals, Mobile Wallet, Cash Agents, mPOS, Direct Debit, Standing Order, and Electronic Purse.
Pricing
- Setting up Remita for your business is free.
- Remita charges 2% for local transactions and 4% for foreign transactions.
Interswitch Webpay
Interswitch is Nigeria’s leading technology-driven digital payments company, helping to shape the payments ecosystem across the growing e-commerce sector in Africa. Interswitch offers a wide range of payment methods including all Nigerian cards, Verve, MasterCard, and Visa. Onboarding and approval take 1 – 2 weeks approximately.
Pricing
- Interswitch charges a one-time integration fee of N150,000.
- For transactions below N133,333, a fee of 1.5% applies, and N2,000 flat fee for transactions above N133,333.
PayU
PayU is a global payment platform that provides a secure way for individuals and merchants to accept and process online payments without the need for their own websites. PayU offers a variety of payment methods including Mastercard credit and debit cards, Verve, Visa and EFT bank transfer.
Pricing
- PayU has a free setup cost.
- It has a 2% service charge on all transactions.
Voguepay
Voguepay is an online payment gateway that allows businesses to process payments in any currency from customers all around the world. Vogue accepts payments via local and international payment methods including Verve, Visa, Mastercard, Bank Transfer, and Voguepay wallets.
Pricing
- Vogue pay charges N1500 (with Corporate Affairs Commission Certificate) and N2500 (with Government issued Identity cards) for setup.
- Local transactions attract a 1.5% charge, while international transactions attract a 3.8% charge.
- Onboarding and approval to Voguepay take between 1-5 days.
Monnify
Monnify is a payment gateway that allows businesses to seamlessly process payments from customers from multiple payment channels. It provides an easier and faster way for businesses to receive payments from customers on their web and mobile applications.
Monnify accepts payments via USSD, Internet banking, mobile banking app, and all Nigerian debit cards.
Pricing
- Monnify setup fees and maintenance costs are free.
- The fee for account transfers is capped at N500 per transaction or a flat rate of N300 (excluding VAT).
- The card fee is capped at N2000 per transaction.
Adopting a payment gateway for your online business can reduce the risk of fraud and also help you retain your customers. This means that your business is open 24/7 and your customers can shop at any time from the comfort of their homes.
