Connect with us

Business

‘Allow NERC Perform Its Mandate Without Interference’

Published

on

The Bureau of Public Enterprises (BPE) says for privatisation of power to work effectively, the Nigerian Electricity Regulatory Commission (NERC) must be allowed to perform its mandate without interference.
Mr Alex Okoh, the Head, Public Communications made this known in a statement in Abuja .
NERC is the body saddled with the responsibility of regulating the power sector.
He said that the Acting Director General, Dr Vincent Akpotaire, made the appeal at a two-day stakeholder’s interactive dialogue/workshop organised by the joint committees of the National Assembly on Power.
Akpotaire said that NERC must be allowed to fix tariffs in line with the Electric Power Sector Reform Act (EPSRA) without interference from any quarters.
He added that if the tariffs were considered high, the government could decide to mitigate the effects by taking up a percentage of the tariffs instead of outright cancellation.
He cautioned against the blame game in the power sector and appealed to the executive and legislative arms of government and other stakeholders to come together to find solutions to the sector’s challenges.
Akpotaire explained why the Federal Government was being asked to subsidise the Nigeria Electric Supply Industry (NESI).
“The loss levels at the point of privatisation of the power sector, that is the Aggregate Technical, Commercial and Collection (ATC &C) loss of Nigeria was about 50 per cent on the average.
“This could not be fully passed to consumers immediately, to avoid rate shock and consumer rebellion.’’
He also explained why the Central Bank of Nigeria (CBN) gave a loan of N213 billion to the privatised power companies.
“The Multi-Year Tariff Order 2 (2012) that was put in place when investors took over on Nov. 1, 2013, had assumed AT & C loss level of 25 per cent.
“The agreements signed with the investors gave NERC and the Distribution Companies (DISCOs) one year to determine the true ATC and C loss levels which were subsequently found to be about 50 per cent on the average. “Based on the new ATC and C loss levels, a new tariff was issued by NERC with effect from February 2015, but the shortfall that accumulated because of the wrongly assumed ATC and C of 25 per cent from Nov. 1, 2013 to Dec. 31, 2014 amounted to N213 billion.
“Consumers were liable to pay the N213 billion immediately, but the CBN intervention by way of a loan to the DISCOs, enabled NERC to spread the recovery of the money from the consumers over a 10 year period.’’
He also said that the core investors in the DISCOs were not investing heavily in line with the covenants they signed with the government.
This, he said was because the transaction structure compelled investors to raise money and pay for their 60 per cent equity in DISCOs using their own balance sheet.
He added that upon take over, the investors were expected to leverage on the acquired companies’ clean balance sheets to raise additional funds for investments.
“However, financial institutions have refused to lend money to the DISCOs until a cost reflective tariff is approved in line with the agreements and the CBN loan to the industry removed from the books of the DISCOs.’’
Akpotaire said that though the Federal Government owned 40 per cent of the DISCOs, it was not part of the management because it was not funding its shares on the boards.
He said that the performance agreement executed with investors had assigned operational risks to investors.
“The performance agreement provides that a core investor who fails to achieve agreed targets stands the risk of losing his/her equity at the payment of one dollar by the Federal Government.”
He also said that the BPE was on the boards of the power companies since 1988 when the Technical Committee on Privatisation and Commercialisation (TCPC), the agency BPE replaced,was established.
He added that BPE had always represented the Federal Government on the board of any company undergoing reform and privatisation.
“This is on the grounds that it makes it possible for the BPE to have access to all the information it requires to carry out its statutory duties of reform and privatisation.

Continue Reading

Business

Wigwe’s Luxury Yacht Goes For N8.74 Billion After Legal Proceedings

Published

on

The daughter of late Nigerian banking executive, Herbert Wigwe has sold her father’s luxury yacht for $6.5 million which is the equivalent of N8.74 Billion following legal proceedings involving her, Otutochi Wigwe, and the company holding the vessel, Grosvenor Marine Ventures Limited.

This was contained in an online report obtained by The Tide Source in Port Harcourt recently.

The Source further clarified that $6. 5 Million dollars or N8.74 Billion was the asking price as at March this year but was unable to prove, if the said amount was exactly what the vessel went for.

The yacht, known as Chitochi, is a 2016 Custom Line 108 superyacht measuring approximately 33 metres (108 feet) in length. The transaction was handled by international yacht brokerage firm IYC, with its sales and charter consultant, Mark Elliott, overseeing the sale.

The disposal of the high-value vessel followed legal steps taken to address the corporate status of Grosvenor Marine Ventures Ltd., the company through which the yacht was held.

Otutochi Wigwe reportedly approached a court in the British Virgin Islands (BVI) to secure the restoration of the company to the corporate register, a move that enabled the necessary legal steps towards the sale of the vessel.

The proceedings were central to resolving the corporate issues affecting the company and facilitating the transaction, underscoring the legal complexities that may arise when valuable assets are held through corporate entities in foreign jurisdictions.

The sale is also significant in the context of estate administration, as luxury yachts require substantial financial commitments to maintain, even when they are no longer actively used by their owners or beneficiaries.

Such vessels typically attract considerable expenses, including crew salaries, insurance premiums, berthing charges, routine servicing and other maintenance costs, making their continued ownership a major financial responsibility.

Beyond the recurring expenses, luxury yachts are depreciating assets that may lose value over time. Their disposal can therefore form part of a strategy to preserve estate value, reduce liabilities and convert an expensive asset into liquid funds.

Wigwe, who was the former Group Chief Executive Officer of Access Holdings, died on February 9, 2024, in a helicopter crash in California, United States, alongside his wife, Chizoba; their son, Chizi; and former Nigerian Exchange Group chairman, Abimbola Ogunbanjo.

His death was widely mourned across Nigeria’s banking and business communities, where he was recognised for his contributions to the financial services industry, entrepreneurship and philanthropy.

Wigwe’s passing left behind an estate whose administration involves the management of assets and other financial interests, a process that can require legal and financial decisions to protect the interests of the estate and its beneficiaries.

The sale of Chitochi highlights the challenges associated with managing high-value assets held through corporate structures, particularly where the relevant companies and legal proceedings fall under different jurisdictions.

The $6.5 million transaction brings the yacht’s ownership chapter to a close while illustrating how legal procedures, financial considerations and estate management can intersect in the administration of the assets of a prominent business figure.

‘’We determined to get all our equipments and machinery functioning as we progress. For now we’ve about 105 workers, comprising daily paid harvesters and regular staffs. But aside these 105 staffs we also employ daily slashers who for now are about 100.

“During peak periods, hopefully on or before January 2026 we hope to increase our work force for maximum production”, the firm’s management Stated.

 

King Onunwor

 

Continue Reading

Business

Firm Mulls Crash Down On Vegetable Oil Price …Targets Revenue Boost, Job Creation

Published

on

A firm, Kompetenz Investment Zentrum Ltd,  has said it would crash down the cost of vegetable oil in the market through adequate production and milling of its product for large scale sales in and around the State.
The Head, Human Resource Management of the firm, Mrs Amina Shehu said this in Yenagoa, the State capital, Wednesday while speaking with newsmen on an inspection tour of the company.
She noted that while other firms have previously managed the Palm farm, her company which she described as an experienced manager of palm farms recently acquired right of management of the Bayelsa Government-own palm plantation in September, 2026.
“We inherited a poorly managed farm and machineries from our predecessors, and so we’re working assiduously to overhaul the mills in this firm, more especially the biggest one.
”Today we’ve been able to put the small one into use, and it’s functioning well. Some engineering contractors have also came around with their various interest in bidding for the repair and overhaul of the ailing big mill we inherited, but surely the cost of repairs shown to us by the engineers run into billions.We’re however determined to get all our equipments and machinery functioning soon”, she said.
Mrs Shehu bemoaned the dysfunctional State of the farm facilities prior to its acquisition,  adding however that there were plans by the company to get all moribund machinery functioning and put them to maximum utilisation and production capacity, while also working towards ensuring revenue boost for the firm and the State in the future.
Speaking on manpower and employment generation, the company’s HRM  emphasised that at low peaks, the firm has employed no fewer than 200 staffers, comprising regular, casuals and workers on its daily payroll.
“At peak periods of harvest, more hands would be employed and production and milling capacity will be increased to 10 tons of palm oil  per day in order to gradually crash down the soaring price of red oil in and around  this State.
“We have just acquired the right of management of the Bayelsa Palm estate in September, 2026. We’re barely two months old as new management of this farm. As you can see for yourselves, a lot of work is currently ongoing in this farm.
“We have borrowed loans to run this farm, and so a lot of work; slashing of the palm fruits and clearing of the farm is ongoing.  But upon what we have done which amounts to millions, it’s like we have  not yet started because the Bayelsa Palm estate is really big” Mrs Shehu added.
She noted that during the world food day the company  “showcased some of our produce and as we speak calls are coming in from far and near placing orders and showing interest in doing business with us.
“Our Director (our boss), has the requisite experience in this business. He has reinvigorated and invested in similar Palm farm businesses in other parts of this country.
“Some contractors have also came around with their various interest in bidding for the repair and overhaul of the ailing machinery we inherited, but surely the cost of repairs shown to us by the engineers run into billions.
‘We determined to get all our equipments and machinery functioning as we progress. For now we have  about 105 workers, comprising daily paid harvesters and regular staffs. But aside these 105 staffs we also employ daily slashers who for now are about 100.
“During peak periods, hopefully on or before January 2026 we hope to increase our work force for maximum production”.
The Tide gathered that the firm is the new operator of the Bayelsa Palm estate and managers of the state’s Palm tree plantation.
The Tide  spoke with a cross section of traders and consumers in major markets of the State and reports said the price of Palm oil which is botanically referred to as ‘elaeis guineensis’ has increased astronomically in recent months, due to general inflation in prices of commodities.

Ariwera Ibibo-Howells, Yenagoa

Continue Reading

Business

Traders Decry Continuous Increase In Prices Of Foodstuffs

Published

on

Some traders at the Rumuwoji Market popularly known as Mile 1 Market have decried the continuous increase in the prices of food stuffs and other items in the ember season.

This was made known by the traders when The Tide  visited the market recently.

The traders revealed varying changes in the prices of foodstuffs, with some commodities recording higher increase than others .

A trader Mrs Charity Obinna, at the market, said the price of yam remained the same last week and this week compared to the prices from last month to this month, adding that only a difference of about N100 to  N200 was seen.

Another trader, Chukwuebuka Livinus who deals on garri, reported that the prices of some food commodities had been changing frequently.

According to him, the price of a bag of garri increased from N45,000 last week to N58,000 this week, representing an increase of  N13,000.

Livinus described the increase as scary and called on the government to do something about it, especially as we get closer to the festive period.

A trader that deals on vegetables, Mrs Joy reported that a significant increase in the prices of pepper rose from N20,000 last week to N40,000 this week.

Similarly, the price of a bag of melon (egusi) increased from N420,000 toN490,000 this week.

In a separate report, Mrs Charity Obinna said that foodstuffs were generally cheaper last month than this month, with price differences ranging from N150 to N200 for some items.

Meanwhile, Giff Okoro reported a decrease in the price of tomatoes. According to her, a quantity of tomatoes that cost N45,000 last month now sells for N25,000, indicating a reduction of N20,000.

Another trader, Usman Ibrahim said the cost of transporting goods from the communities to urban areas where they are sold is one of the major reasons for high cost of goods.

He said transport cost has doubled due to the cost of petroleum products in Nigeria, adding the whole cost is part of the goods because “entrepreneurs must cover their cost and make their gains .

Ibrahim called on the government to help farmers and traders even with little capitals to expand and sustain their business.

Another trader, Mrs Choice Promise a fish retailer said a cartoon which sold at #35,000 last week now sells at #50,000 .

Promise complained that there is no gain or profit because the price has drastically increase and most people cannot afford to buy fish again.

“Mr. President’s Renewed Hope Agenda recognizes that economic ambition requires dependable infrastructure,” Tegbe said.

He added that investments in electricity infrastructure would strengthen the foundations for business expansion, employment and economic growth.

The Kankia substations comprise two 60 MVA, 132/33 kilovolt (kV) facilities designed to strengthen the transmission network serving Katsina State and neighbouring areas.

Tegbe said the infrastructure would improve the network’s ability to distribute available electricity, supporting commercial activities and household welfare.

He also urged residents to protect the facilities against vandalism and other activities that could disrupt electricity infrastructure, asking them to report suspicious activities to TCN or security agencies.

Katsina State Governor, Dikko Umaru Radda, described the project as a significant investment in the state’s electricity infrastructure.

Radda stated that improved electricity supply could support industrial development, economic growth and public service delivery.

He further commended the President, the Federal Ministry of Power and TCN for completing the project.

It would be noted that the latest projects come amid a broader government’s drive to address bottlenecks in Nigeria’s electricity transmission network, which has constrained the amount of electricity that can be delivered to distribution companies and end users.

 

Wali Chioma, Obasi Chidinma & Amarachi Uche

 

Continue Reading

Trending