Business

NERC Has Approved Sum of N21bn To meter end-User Customers Free

Published

7 months ago

June 21, 2024

The Nigerian Electricity Regulatory Commission (NERC) announced on Friday, June 21, the approval of N21 billion for the eleven electricity Distribution Companies (DisCos) to provide meters for end-use customers at zero cost. This move is part of the Presidential Metering Initiative under the Meter Acquisition Fund (MAF), aiming to bridge the metering gap and enhance customer satisfaction.

In ORDER NO: NERC/2024/072, titled “The Operationalization of ‘Tranche A’ of the Presidential Metering Initiative Under the Framework of Meter Acquisition Fund,” NERC detailed the operationalization of this initiative. The order states that DisCos will purchase and install meters for customers free of charge, utilizing the funds accrued up to the April 2024 market settlement cycle. The total amount available for this first tranche, known as “Tranche A,” is NGN21,864,851,725.00, with NGN21,000,000,000 approved for immediate use.

“The Commission hereby approves the use of a sum of NGN21,000,000,000 apportioned pro rata to contribution by the DisCos as Tranche A of the MAF scheme. Attached to this Order as Schedule 1 is a breakdown of the funds available for each DisCo for the purchase of end-use customer meters,” NERC stated.

NERC emphasized that all meters procured and installed under this framework will be at no cost to the customers. This initiative is expected to accelerate meter deployment, close the current metering gap, reduce commercial and collection losses for DisCos, and enhance service quality and customer satisfaction.

The first tranche of the MAF Scheme, based on contributions made by DisCos as of the April 2024 market settlement, will focus on procuring and installing meters for unmetered Band ‘A’ customers within their franchise areas. Band A customers are defined as those receiving a minimum of 20 hours of electricity per day and are charged a premium tariff of N208 per kilowatt-hour (kWh).

NERC also noted the importance of a transparent and competitive procurement process for meter price determination and the selection and engagement of Meter Asset Providers (MAPs) and Licensed Meter Manufacturers and Assemblers (LMMAs). This process aims to ensure the efficient deployment of meters and the protection of revenue streams within the Nigerian Electricity Supply Industry (NESI).

Adebayo Adelabu, the Minister of Power, previously stated that the federal government would release N20 billion to DisCos for procuring meters for unmetered Band A customers within the next three months. This funding will further help close the metering gap for these customers.

“Before I left the office yesterday, I met with the chairman of NERC, Alhaji Garba Sanusi, and we’ve agreed that we have an accrued N20 billion for metering. I said to him, let us release this N20 billion for the DisCos to procure meters for the unmetered Band A customers before the end of September. That is going to happen. I can assure you that,” Adelabu said.

Business

FCMB, Proparco Partner to Boost Women-Led Businesses, Agriculture

Published

2 days ago

January 23, 2025

Samson Adeyanju

By Our Correspondent

First City Monument Bank (FCMB), and Proparco have strengthened their partnership with a $35 million senior credit line and two guarantees—ARIZ (€3 million) and EURIZ (€6 million)—signed on January 20, 2025.

The deal, facilitated under the European Union’s EFSD programme, aims to empower small and medium enterprises (SMEs), with a focus on agriculture (90%) and women-led businesses (10%).

This initiative enhances FCMB’s role as a leading SME bank in Nigeria and aligns with global development goals, such as SDG 2 (Zero Hunger) and SDG 8 (Decent Work and Economic Growth). The funding will support high-impact sectors, including agriculture and renewable energy, fostering job creation and economic progress.

Proparco Deputy CEO Djalal Khimdjee emphasized the partnership’s impact: “This collaboration enables the growth of SMEs, advances gender equality, and strengthens food security in Nigeria, building a sustainable and resilient economy.”

Since 2014, Proparco has supported FCMB in advancing Nigeria’s economic development. This latest collaboration reaffirms both institutions’ commitment to inclusive growth and sustainable economic transformation.

Business

Cardoso Vows to End Buying, Selling of Naira Notes

Published

3 days ago

January 22, 2025

Samson Adeyanju

By Our Correspondent

Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has pledged decisive action to end the commoditization of the Naira, which has become prevalent across the country.

Speaking at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO), in Lagos, themed “Commoditization of Naira: The Way Forward,” Cardoso, represented by his Senior Special Adviser, Fatai Kareem, described the practice as a grave threat to Nigeria’s financial system and economic stability.

He noted that the Naira, beyond being a currency, represents the nation’s identity and its stability is essential for economic growth.

However, the growing trend of treating the Naira as a commodity undermines its role as a medium of exchange.

Cardoso highlighted strategies to combat the issue, including public awareness campaigns on responsible currency use, enhancing cash management systems to ensure fair distribution, enforcing regulations against offenders, and promoting digital payment systems to reduce cash dependency.

Chairman of CHBO, Abraham Aziegbe, attributed the commoditization of the Naira to cash shortages in recent years, which forced Nigerians to pay premiums for transactions.

He emphasized the need for robust measures to address cash scarcity and prevent hoarding by financial institutions.

Business

Abuja BDC Denies Money Laundering, Terrorism Financing Allegations

Published

2 weeks ago

January 13, 2025

Samson Adeyanju

By Emmanuel Ogbodo
Abdullahi Abubakar Dauran, outgoing chairman of the Wuse Zone 4 Bureau de Change (BDC), merchants association, has dismissed allegations that the group is involved in money laundering and terrorism financing.
Dauran described the claims as baseless, emphasizing that the association operates within Nigeria’s financial laws.
He also refuted reports suggesting the formation of a parallel BDC group, calling them fabrications.
He urged the public to disregard the allegations and warned The Nation and The Independent newspapers to retract their reports within 48 hours or face legal action.