Business News
FG may increase electricity tariffs to improve power supply
Nigerians will start paying more on electricity supply as the Federal Government is planning on increasing electricity tariffs.
Nigerians will start paying more on electricity supply as the Federal Government plans to boost power supply.
The Minister of Power, Saleh Mamman, said the hike was inevitable due to the rising cost of electricity generation in Nigeria.
According to Mamma, improvement in electricity supply necessitated the need to increase the electricity tariffs. Already, there is ongoing tariff reform in the power sector for the eleven power Distribution Companies (DisCos), The Nation reported. The sector has also initiated the ‘willing buyers and willing sellers’ policy to cater for stranded power not supplied due to failed distribution chain.
The power sector in Nigeria was privatised in 2013 and the supply of the electricity was divided into several categories: six generation companies; 12 distribution companies covering all 36 Nigerian states, and a national power transmission company. This was done to improve electricity in the country; however, the situation has remained the same.
Electricity plant
Nigeria’s electricity problem: Mamma said electricity supply in the country was being affected by cost-ineffective tariff. He stated that it was a drawback on the operation of the energy distributors. So, if electricity supply was to improve, there’s need for procurement of needed equipment that would reflect on the electricity tariff.
[READ MORE: FG threatens to disconnect Togo, others from electricity over $16 million debt]
Mamma, who disclosed that efforts were ongoing to improve power supply to the Northern part of the country, also said there’s need to ensure customers pay tariffs relative to their consumption of electricity, as specified by the Nigerian Electricity Regulatory Commission (NERC). The power generating (Gencos) firms are owed N1.3 trillion by the power distribution companies (DisCos) and other agencies.
“As part of efforts to improve supply of power to the Northern part of the country, a new 330 KVA line is about to be installed by the government. This, among other projects, would improve supply of electricity in Nigeria. With the improvement in power supply, the increase in tariffs in the country was inevitable, because the cost of generating electricity must be met by the operators.”
Coronavirus
How to access CBN’s healthcare grant
The disbursement under the Scheme shall be made to beneficiaries in tranches subject to approved milestones achieved.
The Central Bank of Nigeria (CBN) has issued the guidelines to its Healthcare Sector Research and Development Intervention Scheme (HSRDIS).
The grant was designed to help strengthen the public healthcare system with innovative financing of research and development (R&D) in new and improved drugs, vaccines and diagnostics of infectious diseases in Nigeria.
This was disclosed by CBN via its site in Saturday and seen by Nairametrics. The guideline stated that the HSRDIS is designed to trigger intense national R&D activities to develop a Nigerian vaccine, drugs and herbal medicines against the spread of COVID-19.
CBN Releases it’s Healthcare Research and Development Grant Guidelines to help strengthen the public healthcare system. See website…ow.ly/SLxc50A0Njo
— Central Bank of Nigeria (@cenbank) June 6, 2020
It stated, “It would also curb any other communicable or non-communicable diseases through the provision of grants to biotechnological and pharmaceutical companies, institutions, researchers, and research institutes.
The Scheme is intended to boost domestic manufacturing of critical drugs and vaccines to ensure their sustainable domestic supply and reduce the bulk manufacturing costs of the drugs, herbal medicines and vaccines in Nigeria.
READ MORE: FG to reduce raw materials import by N3trillion
Source of fund
According to the apex bank, the Scheme shall be funded from the Developmental Component of the Micro, Small and Medium Enterprise Development Fund (MSMEDF).
Grant Limit
While Research activities would not access more than N50 million, development/Manufacturing activities will access more than N500.0 million.
CBN emphasised that the disbursement under the Scheme shall be made to beneficiaries in tranches subject to approved milestones achieved.
READ ALSO: Fidson’s plan to dominate the pharmaceutical space in the next 10 years
Timeframe
Timeframe given to research activities was not more than two years from the date of release of fund and Development/Manufacturing activities are not more than one (1) year from the date of release of fund.
Who is eligible:
Candidate vaccines undergoing pre-clinical testing or trials shall not be
eligible for consideration under this Scheme.
But candidate vaccines undergoing clinical testing or trials shall be eligible for consideration under the Scheme if considered to have high potential to cross the clinical trial stage and prospects of scale by the Body of Experts (BoE).
It stated, “In applying for the grant, the applicant shall be required to have conducted pre-clinical testing of the candidate drugs, herbal medicines and vaccines, and obtained certification from relevant health authorities for further research and development.
“Special consideration shall be given to candidate drugs, herbal medicines and
vaccines with high scientific merit against emerging infections and contribute to the development of the Nigerian vaccine.”
Modalities
The applicant(s) shall submit its application, with relevant documentation of validation from relevant health authorities, trial results, patent registration details (if any) and development timetable to the Body of Experts (BoE).
“The BoE shall evaluate applications and recommend to the CBN. CBN shall review for documentation adequacy and completeness.
“Upon approval, the approved grant sum shall be released to the applicant’s
account with any PFI of his/her choice. The beneficiary shall submit periodic progress report on the project to the CBN.
“The CBN shall have proprietary right over all financed R&D outcomes or
products. Equally, licensing protocol for the mass manufacturing of developed
drugs, phytomedicines and vaccines shall be defined by the BoE in accordance with
the World Health Organisation’s current Good Manufacturing Practices (cGMP),” it added.
Business News
Possibilities of a second wave of COVID-19 infections Limits U.S dollar gains
American dollar ended the week cumulatively lower as the possibilities of the second wave of COVID-19 pandemic limited its upside.
The American dollar index closed on Friday up at 0.18% to 96.93.
However American dollar ended the week cumulatively lower, for a third straight week, as uncertainty about America’s economy limited its upside.
The uncertainties about the economic outlook and the possibilities of a second wave of COVID-19 infections had capped the greenback’s gains, Chuck Tomes, portfolio manager at Manulife Asset Management said in an interview with CNBC.
What is the importance of the dollar index? The American Dollar Index tracks the U.S dollar strength relatively against a bouquet of other major currencies around the world, such as (Japanese yen, Euro, British pounds sterling, Swedish krona, Canadian dollar, Swiss Franc).
(READ MORE: Again, U.S dollar slumps against major currencies, investors become optimistic about global demand)
Nigerians hoping to meet foreign exchange debt or payment obligations, transactions via the U.S dollar to countries like France, United Kingdom, Australia, Germany Japan, would have the need to pay fewer dollars to fulfill such transactions.
“Today you’ve seen better-than-expected economic data coming out of the U.S. in terms of the jobs numbers.
“The reaction on the back of that has been expectations of better growth coming out of the U.S. as well as a steepening yield curve, both of which have provided a lift to the dollar.” Chuck Tomes added.
READ ALSO: Gold spot prices plunge as U.S releases impressive economic data
However, some currency analysts in a report to CNBC said the good macroeconomic gains recorded on Friday in America might not be repeated soon.
READ ALSO: Bundle Africa launches social payment app
“While this was no doubt a great jobs report, a lot of good news was already priced in. Future estimates and expectations on the economic rebound are likely higher from here and therefore harder to meet or beat,” said Matt Miskin, co-chief investment strategist at John Hancock Investment Management.
Business News
NPA to receive shiploads of petroleum products and food items in Lagos port
Among the expected items to be received are frozen fish, base oil, general cargo, bulk salt, bulk clinker, butane gas, bulk wheat and soya beans.
The Nigerian Ports Authority (NPA) will receive 16 ships laden with petroleum products, food items and other goods over the next 14 days.
According to its publication, `Shipping Position,’ which was released on Saturday, the receipts of the shipment will last from June 6 through June 20.
According to the publication viewed by NAN, the ships are expected to arrive at the Lagos Port Complex.
Among the expected items to be received are frozen fish, base oil, general cargo, bulk salt, bulk clinker, butane gas, bulk wheat and soya beans.
READ ALSO: NPA and BUA Group dispute to affect 1000 jobs, $500,000 monthly revenue
The NPA also noted in its publication that 23 ships had arrived the ports, waiting to berth with containers, general cargo and petrol, while 17 other ships were at the ports discharging containers, petrol, butane, bulk fertilizer, bulk wheat, general cargo and frozen fish.
What you should know
When the World Health Organisation declared COVID-19 a pandemic, and several industries started shutting down, the Nigerian government took the decision to leave Nigerian ports operation in line with stipulated guidelines.
This was done to prevent further contraction in the economy, as the economic implications of shutting down the seaports in an import-dependent economy were considered unsavory.
The government decided that, just like the food and healthcare sectors, the ports were to be considered essential too since there was a need to keep a steady import of foods, refined petroleum products, raw materials for the local industries, finished consumer goods and most importantly, drugs for the healthcare system.
Managing Director of the NPA, Hadiza Bala-Usman, also suspended applicable terminal storage fees on consignments for an initial period of 21 days effective 23 March, and agreed to fast-track the clearance of over 1,500 overtime cargoes as part of its efforts to promote ease of business.
Anonymous
December 21, 2019 at 8:39 pm
Let the government not increase the tariff. The neighbouring countr