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Nigeria’s power sector loses N69.1 billion in 7 weeks

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TCN FG approves N600 billion disbursement for power sector

The Advisory Power Team (APT) at the office of the Vice President has said the nation’s power sector lost N69.1 billion between January 1 and February 19 this year due to the persistent challenges in the industry.

According to data gathered from the APT in the Office of the Vice President on Wednesday, the loss in the sector was due to insufficient gas supply to power generation plants as well as inadequate distribution and transmission infrastructure.

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The data showed that a total of 2,332.95 megawatts of electricity was not produced due to the deficiency of gas on February 19th, 2019.

The data further showed that 32.5 megawatts of power were not produced as a result of the unavailability of transmission infrastructure, while 543 megawatts was not produced due to high frequency as a result of the scarcity of distribution infrastructure.

The APT said,

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“The power sector lost an estimated N1.468 billion on February 19, 2019 due to insufficient gas supply, distribution infrastructure and transmission infrastructure. The estimated amount lost to insufficient gas supply, distribution, transmission and water reserves to date in 2019 is N69,064,000,000.”

It is puzzling, seeing last November, the Sahara Power Group partnered with South Sudan for power sector development, and yet the power sector still can’t generate enough electricity to be distributed across the country.

However, this shouldn’t be surprising as last year, the Association of Nigerian Electricity Distributors, ANED, said that Nigeria might not have stable power supply in the next five years except the challenges confronting the sector were addressed.

Power supply in Nigeria

A report from Spectator Index as of January 2018, ranked Nigeria as the second worst nation in power supply.

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An international organisation, Power for All, also said that no fewer than 93 million Nigerians lacked access to electricity.

The epileptic power supply has been a major bane to businesses in Nigeria, starting from industrialisation and survival of small scale businesses.

So many companies, have either closed shop or relocated their production bases to other countries with a better and reliable power supply to maximise production cost and efficiency. This is, however, no thanks to the epileptic power supply that has characterised the nation.

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Financial Services

How to access new CBN’s Agric fund

Each non-interest deposit Bank to set aside 5% of its PAT annually as contribution to the Fund.

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Economic Growth, CBN, Governor, Emefiele, CBN releases new capital base, sanctions for Microfinance Banks, Nigerian Banks broadly positive after naira devaluation, Naira hits N465 to $1, Central Bank begins disbursing $100million to hit at currency speculators

The Central Bank of Nigeria (CBN) has unveiled guidelines for a Non-Interest Financial Institutions under its Agri-Business, Small and Medium Enterprise Investment Scheme (AGSMEIS) and Micro, Small and Medium Enterprises Development Fund (MSMEDF).

This was disclosed by the apex bank via its website on Tuesday. The guidelines also included the Accelerated Agricultural Development Scheme (AADS) and seven other intervention schemes in its bouquet.

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How the AGSMEIS works

* The CBN would create a Fund to be known as ‘AGSMEIS Non-Interest Fund’ that will be domiciled in a dedicated account with the apex bank.

* Each non-interest deposit Bank (full-fledged or window) was to set aside 5% of its Profit After Tax (PAT) annually as contribution to the Fund.

* Each non-interest Deposit Bank was also to transfer its contribution to the CBN not later than 10 working days after the Annual General Meeting (AGM) of the participating bank.

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* Eligible activities under the Scheme are businesses across the agricultural value chain, covering production, inputs supply, storage, processing, logistics and marketing.

* Others included MSMEs in the real sector including manufacturing, ICT, mining, petrochemicals and the creative industry as well as other activities as the CBN may determine from time to time.

How to access fund

The application of the Fund shall be categorised into three broad components. They are debt, equity and developmental components.

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•  The debt component shall constitute 50% of the fund which shall be disbursed as financings to eligible businesses through Non-Interest Deposit Money Banks.

*Asset purchased shall be registered with the National Collateral Registry (NCR).

* Financing limit: N10,000,000

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* Mark-up: 5% per annum

* Tenor: Up to 7 years (depending on the nature/gestation period of the
project)

* Moratorium: Maximum of 18 months for principal and 6 months on mark-up.

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Documentation Requirements

* Duly completed application form.

* Bank Verification Number (BVN).

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* Certificate of Training from recognised Entrepreneurship Development Institution (EDI) or evidence of membership of organised private sector association.

* Letter of Introduction from any of the following: Clergy, Village Head, District Head, Traditional Ruler, senior civil servant etc (for individuals, microenterprises only).

* Evidence of registration of business name or certificate of incorporation and filing of annual returns (where applicable) in compliance with the provisions of the Companies and Allied Matters Act (1990).

Back story

Last month, the CBN announced that it has unveiled a framework that will integrate a non-interest window in all its intervention programmes aimed at supporting businesses and households that have been impacted negatively by the COVID-19 pandemic.

In a statement, the apex bank said the integration will focus mainly on its Anchor Borrowers’ Programme (ABP) as well as the Targeted Credit Facility (TCF).

Why it matters: The Scheme will be for start-ups, business expansion or revival of ailing companies and shall be in compliance with provisions of BOFIA (1991) as amended and the principles underpinning operations of NIFIs.

“The MSMEDF for NIFIs guidelines are aimed to channel low return funds to the MSME sub-sector of the Nigerian economy through participating Financial Institutions (PFIs) to enhance access by MSMEs to financial services.

“Similarly, the non-interest guidelines for the AADS are aimed at engaging a minimum of 370,000 youths in agricultural production across the country between now and 2023, in order to reduce unemployment among the youth in the country,” it added.

While the specific objectives of the MSMEDF for NIFIs are to increase the productivity and output of microenterprises, job creation and engender inclusive growth, those of the AADS are to increase agricultural production towards food security, job creation and economic diversification.

AADS

* It is targeted at Nigerian youth between 18 and 35 years, seek to promote interaction among state governments, the CBN and other stakeholders in the agricultural value chain in each state.

* To enhance job creation in the agricultural sector, with focus on two crops where States have comparative advantage.

* Others were the Real Sector Support Facility (RSSF) revised guidelines (V3); the Real Sector Support Facility (RSSF) among others.

Download the guidelines here

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Macro-Economic News

CBN to hold MPC meeting on July 20

Apex bank to hold its 274th Monetary Policy Committee meeting on Monday, July 20, 2020.

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CBN health intervention fund gets new interest rate by March 2012, Nigerian banks’ non-performing loans drop significantly by 41% in 2019, External reserves decline by over 8% in 3 months, Nigeria’s external reserves increase by $1.36 billion in 13 days

The Central Bank of Nigeria has announced that it would hold its 274th meeting of the Monetary Policy Committee (MPC) on Monday, July 20, 2020.

This was disclosed in a statement issued by the apex bank and published on its website.

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It stated, “The 274th Meeting of the Monetary Policy Committee (MPC) is scheduled to hold in Monday, July 20, 2020 by 8:00pm at the CBN’s Corporate Headquarters, Abuja.”

Last May, the MPC had reduced the Monetary Policy Rate (MPR) from 13.50% to 12.50%.

Governor, CBN, Godwin Emefiele, disclosed this while reading the communique at the end of the MPC meeting in Abuja.

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Meanwhile, other parameters such as the Cash Reserve Ratio (CRR) remained at 27.5%, Liquidity ratio at 30%.

Highlights of the Committee’s decision

* MPC cuts MPR by 100 basis points to 12.50%

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*CRR stood at 27.5%

*The Liquidity Ratio was also kept at 30%

Why it matters: The Committee is the highest policy-making committee of the Bank with the following mandate:

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* Review economic and financial conditions in the economy.

* Determine appropriate stance of policy in the short to medium term.

* Review regularly, the CBN monetary policy framework and adopt changes when necessary.

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* Also communicate monetary/financial policy decisions effectively to the public and ensure the credibility of the model of transmission mechanism of monetary policy.

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Coronavirus

COVID-19 Update in Nigeria

On the 14th of July 2020, 463 new confirmed cases and 10 deaths were recorded in Nigeria.

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 33,616 confirmed cases.

On the 14th of July 2020, 463 new confirmed cases and 10 deaths were recorded in Nigeria, having carried out a total daily test of 3,015 samples across the country.

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To date, 33,616 cases have been confirmed, 13,792 cases have been discharged and 754 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 186,309 tests have been carried out as of July 14th, 2020 compared to 183,294 tests a day earlier.

COVID-19 Case Updates- 14th July 2020,

  • Total Number of Cases – 33,616
  • Total Number Discharged – 13,792
  • Total Deaths – 754
  • Total Tests Carried out – 186,309

According to the NCDC, the 463 new cases were reported from 17 states- Lagos (128), Kwara (92), Enugu (39), Delta (33), Edo (29), Plateau (28), Kaduna (23), Oyo (15), Ogun (14), Osun (14), FCT (12), Ondo (9), Rivers (9), Abia (8), Bayelsa (5), Ekiti (3), Borno (2).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 12,711, followed by Abuja (2,687), Oyo (1,882), Edo (1,807), Rivers (1,397),  Delta (1,392), Kano (1,314), Ogun (1,105),  Kaduna (1,039), Ondo (747), Katsina (669), Ebonyi (616), Borno (593), Plateau (571), Gombe (533), Bauchi (521), Enugu (515), Kwara (422), Abia (413),  Imo (399).

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Jigawa state has recorded 321 cases, Bayelsa (318), Osun (276), Nasarawa (252), Sokoto (153), Akwa Ibom and Niger (145),  Benue (126), Adamawa (110), Anambra (101), Kebbi (87), Zamfara (76), Ekiti (66), Yobe (62), Taraba (30), Cross River (10) while Kogi state has recorded 5 cases only.

 

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

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Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020.

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READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

DateConfirmed caseNew casesTotal deathsNew deathsTotal recoveryActive casesCritical cases
July 14, 2020336164637541013792190707
July 13, 202033153595744413671187387
July 12, 2020325585717401613447183717
July 11, 2020319876647241513103181607
July 10, 2020313235757092012795178197
July 9, 202030748499689512546175137
July 8, 2020302494606841512373171927
July 7, 2020297895036691512108170127
July 6, 202029286575654911828168047
July 5, 2020287115446451111665164017
July 4, 202028167603634611462160717
July 3, 2020275644546281211069158677
July 2, 2020271106266161310801156937
July 1, 2020264847906031310152157297
June 30, 202025694561590179746153587
June 29, 20202513356657389402151587
June 28, 20202486749056579007149957
June 27, 20202407777955848625148947
June 26, 20202329868455458253144917
June 25, 20202261459454977822142437
June 24, 20202202064954297613138657
June 23, 20202137145253387338135007
June 22, 20202091967552577109132857
June 21, 202020242436518126879128477
June 20, 202019808661506196718125847
June 19, 202019147667487126581120797
June 18, 20201848074547566307116987
June 17, 202017735587469145967112997
June 16, 202017148490455315623110707
June 15, 20201665857342445349108857
June 14, 202016085403420135220104457
June 13, 20201568250140785101101747
June 12, 20201518162739912489198917
June 11, 2020145546813875449496737
June 10, 20201387340938217435191407
June 9, 2020134646633654420688937
June 8, 2020128013153617404084007
June 7, 20201248626035412395981737
June 6, 2020122333893429382680657
June 5, 20201184432833310369678157
June 4, 2020115163503238353576467
June 3, 2020111663483151332975227
June 2, 20201081924131415323972667
June 1, 20201057841629912312271579
May 31, 20201016230728714300768687
May 30, 2020985555327312285667267
May 29, 202093023872612269763447
May 28, 202089151822595259260647
May 27, 202087333892545250159787
May 26, 2020834427624916238557107
May 25, 202080682292337231155247
May 24, 202078393132265226353607
May 23, 202075262652210217451317
May 22, 2020726124522110200750337
May 21, 2020701633921111190748987
May 20, 202066772842008184046377
May 19, 202064012261921173444757
May 18, 202061752161919164443407
May 17, 202059593881826159441837
May 16, 202056211761765147239737
May 15, 202054452881713132039544
May 14, 202051621931683118038154
May 13, 202049711841646107037374
May 12, 20204787146158695936704
May 11, 202046412421521090235894
May 10, 202043992481421777834794
May 9, 202041512391271174532784
May 8, 202039123861181067931154
May 7, 20203526381108460128184
May 6, 20203145195104553425071
May 5, 2020295014899548123704
May 4, 2020280224594641722912
May 3, 2020255817088240020702
May 2, 20202388220861735119522
May 1, 20202170238691035117512
April 30, 2020193220459731715562
April 29, 2020172819652730713692
April 28, 2020153219545425512322
April 27, 20201337644102559942
April 26, 20201273914152399942
April 25, 20201182873632229252
April 24, 202010951143312088552
April 23, 20209811083231977532
April 22, 2020873912931976482
April 21, 20207821172631975602
April 20, 2020665382311884662
April 19, 2020627862221704362
April 18, 2020541482021663562
April 17, 2020493511841593172
April 16, 2020442351311522772
April 15, 2020407341211282672
April 14, 202037330111992632
April 13, 202034320100912422
April 12, 20203235100852282
April 11, 202031813103702382
April 10, 20203051770582402
April 9, 20202881471512302
April 8, 20202742260442262
April 7, 20202541661442042
April 6, 2020238650351982
April 5, 20202321851331942
April 4, 2020214540251850
April 3, 20202092542251800
April 2, 20201841020201620
April 1, 2020174352091630
March 31, 202013982091280
March 30, 2020131202181210
March 29, 2020111221031070
March 28, 20208919103850
March 27, 2020705103660
March 26, 20206514102620
March 25, 2020517102480
March 24, 2020444102410
March 23, 20204010112370
March 22, 2020308002280
March 21, 20202210001210
March 20, 2020124001110
March 19, 20208000170
March 18, 20208500170
March 17, 20203100030
March 16, 20202000020
March 15, 20202000020
March 14, 20202000020
March 13, 20202000020
March 12, 20202000020
March 11, 20202000020
March 10, 20202000020
March 9, 20202100020
March 8, 20201000010
March 7, 20201000010
March 6, 20201000010
March 5, 20201000010
March 4, 20201000010
March 3, 20201000010
March 2, 20201000010
March 1, 20201000010
February 29, 20201000010
February 28, 20201100010

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