Connect with us
nairametrics
UBA ads

Business News

Afam Power might face liquidation if NBET refuses to pay its debt

Afam Power Plc has pleaded with NBET to pay up over N1 billion it owes for power generation as the company is currently facing liquidation problem.

Published

on

Afam Power Plc

The Managing Director and Chief Executive Officer of Afam Power Plc, Engr. Olumide Obademi, has requested that the Nigerian Bulk Electricity Trading Plc (NBET), fulfils its power generation debt that has exceeded N1 billion.

“NBET should endeavour to pay all the outstanding bills owed to Afam Power PLC in order for the company to sustain the running of the units GTs 17 & 18.”

The company currently experiences zero funding to critical projects – Olumide, who made this plea while receiving the ministerial media team led by senior officials of the Ministry of Works, Power and Housing (Power Section) during a visit to the plant in Oyigbo, Rivers State, said the company was currently experiencing zero funding of critical projects.

UBA ADS

Liquidity has become a critical challenge – Olumide further stated that since they have not been paid for energy generation, liquidity has become a critical challenge facing the company.

“Liquidity problem also is a big challenge to the company as the little amount earned from energy generated is not fully paid by NBET.”

Problems associated with privatisation are bringing down the company

Privatisation exercises have so far contributed to the liquidity challenges facing the company. Since 2012, there has been no budget allocated to the company as a result of privatisation, thereby forcing it to survive on Internally Generated Revenue (IGR).

The company got stranded – The bidder that was supposed to handle the company’s funding could not complete payment. As a result, the company could no get funds from the capital market because its ownership was not clearly defined.

GTBank 728 x 90

Recall that Nairametrics had earlier reported that the company had five bidders in line to purchase some 51 percent stakes in the company and Yola Electricity Distribution Company.

FG should intervene – In view of the problems facing the company, Olumide asked the Federal Government to take over its funding by including it in the Ministry of power budget, since it has not been totally privatised yet.

“Not minding the privatisation process, the Federal Government should fund Afam Power PLC for capital projects to overhaul GTs 19 & 20 that are relatively new with a total capacity of 276MW.”

Deal book 300 x 250
Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Around the World

Buhari nominates Okonjo-Iweala as DG World Trade Organization

President Muhammadu Buhari nominated the former Minister of Finance and Coordinating Minister of the economy, Ngozi Okonjo Iweala, as the Director-General of the World Trade Organization (WTO).

Published

on

Nigeria’s former finance minister, Okonjo-Iweala, gets IMF appointment

President Muhammadu Buhari has nominated the former Minister of Finance and Coordinating Minister of the Economy, Ngozi Okonjo Iweala, as the Director-General of the World Trade Organization (WTO).

This was seen in a tweet posted by the Presidential aide on Digital and New Media, Tolu Ogunlesi, in the early hours of Friday, June 5, 2020.

UBA ADS

In the statement, Ogunlesi said that the current Director-General of the intergovernmental organization, Roberto Azevedo, is stepping down from his position on August 2020, a year ahead of the end of his tenure.

Azevedo, who has been the head of the WTO since 2013, is stepping down at this critical period of global economic crisis and the trade war between the United States of America and China.

This means that the election that was earlier scheduled for 2021 when his tenure was supposed to expire might be coming up much earlier for a new four-year term.

GTBank 728 x 90

Tolu Ogunlesi in his statement said, ”President Muhammadu Buhari has nominated Okonji-Iweala as Nigeria’s candidate for the position of the Director-General of World Trade Organization. DG Azevedo is stepping down in August 2020, a year earlier, so the election of the new DG, originally scheduled for 2021, may take place much earlier”.

Details later…

 

 

app

Patricia
Continue Reading

Around the World

Just-in: AfDB board agrees to an independent probe of Akinwumi Adesina

The independent review shall be conducted by a neutral high calibre individual with unquestionable experience, high international reputation and integrity within a short time period of not more than two to four weeks maximum, taking the Bank group’s electoral calendar into account.

Published

on

Dr. Akinwnmi Adesina, Lutoyilex Construct Ltd, Fraud, AfDB

The Bureau of the Board of Governors of the African Development Bank (AfDB), has agreed to authorize an independent review of the report of the ethics committee of the bank’s board of directors on the allegations levied against the President of the Bank, Akinwumi Adesina.

This was contained in a communique which was released and signed by the Chairperson of the Bureau of Board of Governors, Ms Niale Kaba, after the meeting of the bureau board of governors on June 4, 2020, with respect to the complaints against the President of the bank.

UBA ADS

In taking the decision, the Bureau agreed that the ethics committee performed its role on this matter in accordance with the applicable rule under resolution B/BG/2008/11 of the board of governors and that the Chairperson of the Bureau of Board of Governors performed her role in accepting the findings of the ethics committee in accordance with the said resolution.

The bank’s board of governors in its statement said, ‘’Based on the views of some Governors on the matter and the need to carry every Governor along in resolving it, the Bureau agrees to authorize an independent review of the report of the ethics committee of the board of governors relative to the allegations considered by the ethics committee and the submissions made by the President of the Bank Group thereto in the interest of due process.

‘’The independent review shall be conducted by a neutral high calibre individual with unquestionable experience, high international reputation and integrity within a short time period of not more than two to four weeks maximum, taking the Bank group’s electoral calendar into account.

GTBank 728 x 90

‘’The Bureau agrees that, within a three to six months period and following the independent review of the ethics committee report, an independent comprehensive review of the implementation of the bank’s group whistleblowing and complaints handling policy should be conducted with a view to ensuring that the policy is properly implemented, and revising it where necessary, to avoid situations of this nature in the future.’’

Following the allegations of unethical conducts, questionable appointments and contract awards by a group of whistleblowers and the subsequent clearance of all charges by the bank’s ethics committee, the United States Government, who is the largest shareholder outside Africa, asked for an independent probe of those allegations.

The US treasury secretary questioned the integrity of the committee’s process as well as the internal processes of the bank.

Adesina, a few days ago, met with President Muhammadu Buhari, where he assured of the country’s support towards his travails and his second term bid for the Presidency of the multilateral institution.

app
Continue Reading

Business News

FG removes cap on petrol price, allows marketers to fix price

The price cap per liter in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations.

Published

on

Subsidy and PIB

The Federal Government has removed the cap on Premium Motor Spirit (PMS) price, popularly known as petrol.

This was disclosed by the Petroleum Products Pricing Regulatory Agency (PPPRA) via a memo, which was dated March 30, 2020, but realised on May 4, 2020, titled ‘Market Based  Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020.

UBA ADS

What it means: With the new development, marketers now have the freedom to fix the price of the commodity and sell above the price given by the agency.

Executive Secretary, PPPRA, Abdulkadir Saidu, explained that the agency would continue to monitor trends in the crude oil market and advise the Nigerian National Petroleum Corporation (NNPC) and oil marketers on the monthly guiding price for the commodity.

“The price cap per litre in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations. From the commencement of these Regulations, a market-based pricing regime for PMS shall take effect,” he said.

GTBank 728 x 90

Meanwhile, Nairametrics had reported that the agency announced a new retail price band for oil marketers.

In a circular dated May 31st, as seen by Nairametrics, the downstream regulator said oil marketers are now expected to sell petrol within the price range of N121.50 and N123.50. Part of the circular said:

“Please recall the recently approved pricing regime which became effective March 19, 2020, and the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations.”

Continue Reading