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Business News

Nigerian Businesses spend N5 trillion yearly on power generation

The inadequate power supply situation in Nigeria has been identified as a major challenge facing many businesses in the country.

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Ambassador Ayoola Olukanni

The inadequate power supply situation in Nigeria has been identified as a major challenge facing many businesses in the country. According to Ayoola Olukanni, the Director-General of the National Association of Commerce Industry Mines and Agriculture, majority of the businesses in Nigeria spend N5 trillion annually to generate their own electricity.

“We spend about $14 billion annually on generators, maintenance and fueling in other to keep our business afloat.” 

[READ: Stakeholder explains why FG should provide tax waivers for startups]

The economic effect: Olukanni further stated that these expenses are a huge drain on the economy and may have resulted in the dwindling fortunes of most businesses.

“Generally, the business environment in the country in the past 12 months was certainly not palatable, but things can be better. We have not gotten to where we are supposed to be, though we are heading towards where we can just say that things can be better. We need to look at an alternative source of power, such as cost of purchase, maintenance, and fueling of generating sets in the country for the purpose of electricity both for manufacturing and general consumption.” 

Olukanni

The government should worry: Olukanni urged the Federal Government to work on the power situation in the country as the cost expended on power generation by businesses has become unbearable.

“If such amount is being dedicated to boosting business in the country and if the government gets the power situation right, then businesses would boom and we will become more competitive, especially now that we have signed the African Continental Free Trade Agreement (AfTA).

“Common knowledge shows that the cost of power generation by individuals is outrageous. If you look at the number of generators owned by business outfits in the country, you will understand why most businesses are closing shop. Regrettably, the worst hit is the MSMEs. This problem is experienced in the respective sectors where they operate.

“The heart of the issue still remains the question of the power sector. Things have gone from bad to worse, so business owners still have to rely on providing their own power to do business. This is not a good way to absolutely grow an economy, we have to find a way to sort this problem out and I sincerely hope that as part of the initiative for the current administration of Mr. President would be to address the power outage in other to enhance the competitiveness of the Nigerian businessman. Again, the question of the pursuit of the perfect will to execute top priorities like power is necessary, because business cannot thrive with the present power situation.”

FURTHER READ: Solar company boosts Nigeria’s power sector with $26 million investment

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Corporate Press Releases

Peter Obaseki retires as Chief Operating Officer of FCMB Group Plc

Mr Peter Obaseki, the Chief Operating Officer of FCMB Group has retired from the financial institution.

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The Board of Directors of FCMB Group Plc has announced the retirement of Mr. Peter Obaseki, the Chief Operating Officer of the financial institution, with effect from March 1, 2021. He was also an Executive Director of the Group.

His retirement was approved at a meeting of the Board of the Group on February 26, 2021. This has also been announced in a statement to the Nigerian Stock Exchange (NSE) by the financial institution.

The Chairman of FCMB Group Plc’s Board of Directors, Mr Oladipupo Jadesimi, thanked Mr. Obaseki for his valuable service and excellent support to the Board for many years.

FCMB Group Plc is a holding company divided along three business Groups; Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); as well as Asset & Wealth Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).

The Group and its subsidiaries are leaders in their respective segments with strong fundamentals.

For more information about FCMB Group Plc, please visit www.fcmbgroup.com.

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Tech News

Deezer accepts payment in Naira amid stiff competitions with Spotify, Youtube music, Apple music.

Deezer has gained quite a reputation in Nigeria, as it slashes its subscription fee and now accepts payment in Naira.

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Deezer slashes subscription fee and now accepts payment in Naira amid stiff competitions with Spotify, Youtube music, Apple music.

Deezer, the French music streaming platform that has gained quite a reputation in Nigeria has slashed its subscription fee and now accepts payment in Naira.

This is coming a few weeks after Spotify launched in Nigeria and 38 other new markets in Africa.

The competition in the Nigerian music streaming space is getting hotter by the day. More music streaming platforms are entering the Nigerian market with better payment methods and cheaper pricing, thereby forcing existing players to slash their prices so as to hold on to their customer base

Launched in 2007, Deezer currently connects over 16 million monthly active users around the world to 73 million tracks.

Before now, Deezer’s subscription was rated at $4.99 (₦1,800) for premium customers and the family plan for ₦2,700.

This number has been slashed in half. The music platform now charges ₦900 ($2.36) for Deezer Premium, ₦1,400 for Deezer HiFi and ₦1,400 ($3.67) for Deezer Family Plan.

Other streaming players in Nigeria like Apple Music, Spotify, Youtube music, Boom Play, Audiomack and Soundcloud have also slashed their prices.

For YouTube Music, the monthly individual subscription costs ₦900 while a family plan costs ₦1400 ($3.67).

Spotify Premium cost ₦900 per month in Nigeria. The Premium Family plan goes for ₦1,400 for up to 6 family members.

Apple music charges ₦450 per month for students, ₦900 per month for Individual plan while the Family plan goes for ₦1,400 for up to 6 family members.

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