Economy & Politics
Electricity not the only factor limiting Nigeria’s economy – Boason Omofaye
Published
2 years agoon
By
Amaka Obioji
Earlier today, Nairametrics reported that Transcorp Nigeria Plc has plans to invest as much as $2.5 billion in the Nigerian power sector, a development that could improve the country’s electricity generation.
We also noted that the development would be good for the Nigerian economy which, for many years, has been adversely affected by epileptic power situation in the country.
Some people disagreed on Twitter – But some people seemed to disagree, arguing that electricity is not the only factor that prevents businesses in Nigeria from performing well.
The narrative that constant power supply holds the key to business growth and development anywhere in Africa is a myth. @BBoason @StearsBusiness
— Jonbull (@Jonbullish) March 26, 2019
Mr Baoson Omofaye contributed to the conversation – Even popular business journalist, Baoson Omofaye, was dragged into the conversation. And in his response, he explained that electricity is not the only factor militating against the success of businesses in Nigeria.
According to him, he recently anchored a session during Afreximbank’s 2018 AGM in Kigali, during which panellists established that other factors such as bad roads and bad policies also affect businesses.
At the @afreximbank 2018 AGM in Kigali, a session with some 50 or so CEOs of different African companies which I handled, identified so many other factors aside #electricity – roads, logistics, local skills-sets, tariffs, local rules, etc as faultlines for businesses. https://t.co/6Aza3bEQfr
— Boason Omofaye (@BBoason) March 26, 2019
But electricity is, indeed, a major problem– Some people, however, maintained that inadequate power supply is, indeed, a major problem affecting Nigerian businesses. This has resulted in companies having to spend a lot on the purchase of petrol/diesel used in the generation of their own power.
They argued that if the electricity problem is sorted out, many businesses in the country would perform better.
https://twitter.com/special_one_loe/status/1110471186046246912
I believe in the overall, creating enabling business policies and environment covers power supplies and many other factors affecting businesses. Power is just one of many factors.
— Obinna Ezeifedi (@zefedi) March 26, 2019
Might not hold the key, but erratic power is a major stumbling block…if moved out of the way, we can find the key and open the door of business and economic growth
— Richard Awe (@Richard3d7) March 26, 2019
Nairametrics’ position on the matter – Let it be known that Nairametrics never implied that Nigeria’s inadequate power supply is the only problem affecting businesses in the country. Instead, we focused on epileptic power supply because it is central to the news story we earlier reported. Moreover, epileptic power supply is, indeed, one of the major problems affecting the country.
Once again, Transcorp’s proposed $2.5 billion investment will help boost the country’s energy sector. This will, in turn, position the Nigerian economy on the path to growth.
Economy & Politics
CBN extends Covid-19 forbearance for intervention loans by another 12 months
CBN will continue to charge an interest rate of 5% for its intervention loans for another 1 year.

Published
4 days agoon
March 4, 2021
The Central Bank of Nigeria has announced an extension of its regulatory forbearance for the restructuring of its intervention facilities by another 12 months.
In a circular signed by Dr. Kevin Amugo, the Director of Financial Policy and Regulatory. the apex bank said it will continue to charge its borrowers an interest rate of 5% per annum as against the 9% originally offered. The CBN had on March 20th reduced the interest rates on its intervention loans from 9% to 5% as part of its response to the economic crunch brought on by Covid-19 induced lockdowns.
The CBN also offered to rollover moratorium granted on all principal payments on a case by case basis. All credit facilities had been granted a one-year moratorium starting from march 1, 2020 when the pandemic first gripped Nigeria.
READ: Analysing the Central Bank of Nigeria’s Dollar Remittance Policy
See excerpt from Circular
“The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from 9% to 5% per annum for one-year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 Pandemic on the Nigerian economy.”
Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020.
Following the expiration of the above timelines, the CBN hereby approves as follows:
1) The extension by another twelve (12) months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities;
2) The roll-over of the moratorium on the above facilities shall be considered on a case by case basis.
READ: Nigeria attracts more FDI than FPI for the first time in 4 years
What this means
Companies who secured intervention funds from the CBN or through any of its on-lending banks will continue to service the loans at an interest rate of 5% per annum instead of 9%.
- They can also get another year of not needing to pay back the principal sum collection. However, they will need to apply.
- Whilst this move helps the small businesses continue to manage their cash flow, it means the CBN will record a reduction in its income extended under such facility.
- Regulatory forbearance is a widely adopted concept during an economic crunch and it is meant to help stimulate businesses. These pronouncements if implemented will only affect those who borrow from the CBN or BOI but those who do not will miss out.
- Download the circular here.
READ: CBN discloses conditions for assessing N100 billion credit facility, addresses ‘process problems’
Economy & Politics
Senate endorses ex-Service Chiefs as Non-career Ambassadors
The Senate has confirmed President Buhari’s nomination of the immediate past service chiefs as non-career ambassadors.

Published
2 weeks agoon
February 23, 2021
The Nigerian Senate has endorsed the nomination of the past serving Military Service Chiefs as Non-career Ambassadors.
This was confirmed during Tuesday’s plenary session and announced in a social media statement by the Nigerian Senate.
Their confirmation follows the consideration of the report of the Senate Committee on Foreign Affairs, Chaired by Senator Adamu Bulkachuwa.
According to reports, the Senate Minority Leader Enyinaya Abaribe, however, questioned the nomination and confirmation of the ex-service chiefs when the Senate had on 3 different occasions called for their sack.
Senator Abaribe also raised issues on the petitions against the former service chiefs and questioned why they were dismissed without explanations.
But Senate President Ahmad Lawan dismissed Senator Abaribe’s concerns, ruling that the nomination of the former service chiefs cannot be nullified simply because the upper chamber had called for their sack, noting that this is totally a different assignment.
In his concluding statement, the Senate President, Senator Lawan added that these nominees that have just been confirmed have served this country to the best of their abilities. He appealed to the executive to make sure they use their experience as military men to the best.
“These nominees that we have just confirmed are nominees that have served this country to the best of their ability. Our appeal to the Executive is to make sure they use their experiences as military men to the best,” Lawan said.
Lawan, on behalf of the senate, wished them a very successful career in their capacity as Non-Career Ambassadors.
What you should know
- Recall Nairametrics reported earlier this month that President Muhammadu Buhari nominated ex-Service Chiefs for Senate approval as non-career Ambassadors-Designate.
- Their appointment came barely a week after their retirement as service chiefs and their replacement with new ones.
- This led to a spate of criticisms from some Nigerians who felt that the nation’s security situation got worse under their watch.
- They were reported to have tendered their resignation from their positions amid heightened calls that they should be sacked due to the increasing rate of insecurity across the country.
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