KICNEWS

Category: Business

  • Labour Politics: Govs Meet Over Minimum Wage, LG Autonomy

    Labour Politics: Govs Meet Over Minimum Wage, LG Autonomy

    Governors of the thirty-six states under the umbrella of the Nigeria Governors’ Forum (NGF) are currently meeting to address the ongoing debate surrounding the new minimum wage proposal and local government autonomy.

    Previously, the governors expressed concerns about the Federal Government’s proposed ₦60,000 minimum wage, deeming it unsustainable.

    They argued that implementing such a wage would result in many states allocating their entire monthly federation account disbursements solely to salary payments

    The governors have urged the tripartite committee to agree on a fair and sustainable minimum wage.

    In response to these concerns, the Federal Government announced on Tuesday that President Bola Tinubu would engage in further consultations before reaching a decision on the new minimum wage.

    Another key item on the agenda is the unresolved issue of local government autonomy.

    The governors are also set to deliberate on other critical matters of national importance, covering a wide range of pressing issues that impact the country’s socio-economic and political landscape.

    This high-level meeting aims to foster collaborative solutions and develop strategic initiatives to address Nigeria’s challenges, with the goal of ensuring a unified and effective approach to governance.

     

     

  • Lagos Impounds 40 Vehicles Over Alleged Illegal Motor Parks, Obstructions

    Lagos Impounds 40 Vehicles Over Alleged Illegal Motor Parks, Obstructions

    Lagos Impounds 40 Vehicles Over Alleged Illegal Motor Parks, Obstructions

    The Director, Public Affairs and Enlightenment Department of LASTMA, Adebayo Taofiq, who made this known in a statement issued on Friday, said the operation was led by LASTMA Head of Enforcement Mr. Kayode Odunuga, under the directives of the Special Adviser to the Governor on Transportation, Sola Giwa.

     

    The Lagos State Traffic Management Authority (LASTMA) says its officers have impounded 25 commercial and 15 private vehicles allegedly operating illegal parks and causing “serious” road obstructions around Oyingbo, Ijora, and Idumota areas.

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    The Director, Public Affairs and Enlightenment Department of LASTMA, Adebayo Taofiq, who made this known in a statement issued on Friday, said the operation was led by LASTMA Head of Enforcement Mr. Kayode Odunuga, under the directives of the Special Adviser to the Governor on Transportation, Sola Giwa.

     

    According to Taofiq, the operation specifically targeted illegal garages that have been a persistent source of congestion and inconvenience for residents and commuters.

     

    Taofiq said that Giwa confirmed that the impoundment exercise, which began recently, is part of a broader initiative by Governor Babajide Sanwo-Olu’s administration to enhance the efficiency of the city’s

    transportation network.

    According to the LASTMA spokesperson, Giwa emphasised that the government was committed to maintaining law and order on the roads and ensuring that all traffic regulations are strictly enforced.

     

    The governor’s aide said “illegal garages have been a significant challenge in our quest to maintain a seamless traffic flow in Lagos”.

     

    He said, “These impoundments send a strong message to all offenders that the state will not tolerate activities that disrupt public order and endanger the lives of our citizens.

     

    “Our goal is to create a safe and orderly environment for all road users and this action is a crucial step in that direction.”

     

    Taofiq noted in the statement that the targeted areas – Oyingbo, Ijora, and Idumota – are known hotspots for traffic congestion due to unauthorised parking and the establishment of makeshift garages.

     

    “These activities not only obstruct the free movement of vehicles but also pose safety risks to pedestrians. LASTMA’s intervention aims to clear these bottlenecks and enhance the overall traffic situation in these critical areas.

     

    “Residents and business owners have expressed their support for the government’s action, noting the positive impact it will have on their daily activities.

     

    “LASTMA has also assured the public that the operation will be sustained and extended to other parts of the city where illegal garages and related activities are prevalent.

     

    “Hon. Giwa urged all vehicle owners and operators to adhere to the state’s traffic regulations and cooperate with authorities to avoid sanctions. He reiterated that the government’s primary objective is to create a better and more livable Lagos for everyone.

     

    “He also urged motorists to take ownership of the roads and to promptly inform LASTMA of any broken down or abandoned trailers or trucks via the Agency’s hotlines: 08100565860 / 08129928503,” Taofiq added.

  • FG to purchase 3.5 million electricity meters in 2024

    FG to purchase 3.5 million electricity meters in 2024

    FG to purchase 3.5 million electricity meters in 2024

    The federal government announced on Friday its plan to procure 3.5 million electricity meters by the end of the year to improve revenue for its cash-strapped power sector, where more than half of the customers are billed by estimates.

    The Minister of Power, Adebayo Adelabu stated that most of the supply would be sourced from international vendors, while a smaller quantity is expected to come from local manufacturers due to their limited capacity. Chinese companies have frequently supplied meters to Nigeria.

    He made these remarks during an energy conference organized by BusinessDay Newspapers.

    He said, “This year 2 million meters would be procured plus the 1.5 million meters being procured with World Bank support. We are going to have 3.5 million meters installed by the year-end,”

    The minister added that competitive bidding for the first batch of 1.5 million meters has already been concluded, with delivery expected within months.

    He also mentioned that the government has agreed to release 20 billion naira to electricity distribution companies to procure meters for large users, whose tariffs were raised in April. This will ensure they are all metered by September.

    Nigeria’s metering gap

    The current Minister of Power, Bayo Adelabu, estimates the number of unmetered customers in the country to be between 7 and 8 million.

    However, a PwC analysis suggests a much higher figure, estimating 38.91 million unmetered customers. The report hypothesizes that around 50% of Nigeria’s installed meters are either obsolete or faulty, representing 1.7 million customers, 4.09 million unmetered, and 33.1 million unconnected potential customers.

    According to the NERC in 2023, the overall metering rate across all DisCos was 44.51%. Ikeja DisCo had the highest metering rate at 72.0%, while Yola DisCo recorded the lowest at 18%.

    Out of 12.82 million customers, approximately 5.70 million were metered, leaving 7.11 million consumers unmetered. This represents a metering gap of 55.49% as of September 30, 2023.

    Customers without meters are required to pay a fixed, estimated charge, regardless of the erratic supply from the aging grid. Last year, 57% of all complaints received were about disputed bills, according to a report by the 5.49% as of September 30, 2023.

    Customers without meters are required to pay a fixed, estimated charge, regardless of the erratic supply from the aging grid. Last year, 57% of all complaints received were about disputed bills, according to a report by the Nigerian Electricity Regulatory Commission (NERC).

    World Bank loan for electricity sector

    Recently, the federal government secured a $500 million World Bank facility to improve the power sector part of which will be channelled into providing meters for electricity consumers.

    The Bureau of Public Enterprise (BPE) announced that the World Bank approved the loan in 2021. It was included in the government’s borrowing plan this month after certain milestones were achieved.

  • IT SKILLS: Kaduna Digital Academy Graduates 40 In IT Skills

    IT SKILLS: Kaduna Digital Academy Graduates 40 In IT Skills

    As part of efforts to reduce unemployment and provide youths with employable skills, Ihifix Digital Academy in Kaduna has graduated 40 individuals in software development, product design, and data analytics.

    The graduates include secondary school leavers, undergraduate students, bankers, housewives, and others who were trained for several months in various tech-related skills.

    One of the course instructors disclosed that, as a graduation requirement, the students were tasked with identifying a problem in their surroundings and solving it using their IT skills

    Notable projects by the students include: Diety, an app to simplify meal planning for individuals with specific dietary needs; Rental App to enhance rental property management by streamlining tenant-landlord communication, rent payments, and maintenance management.

    Other projects carried out by the graduates includes creation of TradeCrafts, a platform supporting young artisans and entrepreneurs by showcasing their handmade creations and providing access to mentorship and among others.

    Founder of the Academy, Emmanuel Adikpe, stated that the graduates are job-ready and can apply their skills wherever they find themselves. “We will not stop until you get a job,” Adikpe said.

  • CBN Announces New Measure To Boost Naira Liquidity

    CBN Announces New Measure To Boost Naira Liquidity

    The Central Bank of Nigeria (CBN) has announced the implementation of new measures aimed at enhancing naira liquidity and increasing diaspora remittances.

    In its latest circular, the apex bank announced on Tuesday that eligible International Money Transfer Operators (IMTOs) will now have access to naira liquidity through the bank’s window.

    This initiative, it said, aims to improve the accessibility of local currency liquidity, resulting in smoother and more efficient settlement processes for remittances.

    Transactions conducted before noon on a trading date will be settled on the same day, as stated by W. J. Kanya, the acting director of the trade and exchange department at the CBN.

    Also, all participants in this sector, including IMTOs, authorized dealer banks, and the CBN, are required to submit daily regulatory returns containing comprehensive information on the sources of funds.

    Naija News understands that under the new guidelines, IMTO operators will have direct access to the CBN window or can choose to go through their Authorised Dealer Banks (ADBs) to carry out foreign exchange transactions in the market.

    The circular provides specific compliance measures to ensure the smooth operation of this initiative.

     

    The Central Bank of Nigeria (CBN) has announced the implementation of new measures aimed at enhancing naira liquidity and increasing diaspora remittances.

    In its latest circular, the apex bank announced on Tuesday that eligible International Money Transfer Operators (IMTOs) will now have access to naira liquidity through the bank’s window

    This initiative, it said, aims to improve the accessibility of local currency liquidity, resulting in smoother and more efficient settlement processes for remittances.

    Transactions conducted before noon on a trading date will be settled on the same day, as stated by W. J. Kanya, the acting director of the trade and exchange department at the CBN.

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    Also, all participants in this sector, including IMTOs, authorized dealer banks, and the CBN, are required to submit daily regulatory returns containing comprehensive information on the sources of funds.

    Naija News understands that under the new guidelines, IMTO operators will have direct access to the CBN window or can choose to go through their Authorised Dealer Banks (ADBs) to carry out foreign exchange transactions in the market.

    The circular provides specific compliance measures to ensure the smooth operation of this initiative.

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    Furthermore, it states that pricing on the CBN portal will align with the NAFEX traded rates, which are based on a market benchmark that is widely accepted.

    The operation of this segment will follow the existing arrangements that are already in place for authorised dealers involved in foreign portfolio investment in primary market securities auctions.

    The circular emphasizes that these measures are effective immediately, demonstrating the bank’s dedication to maintaining the efficient functioning of the foreign exchange market and enhancing formal remittance channels.

     

  • Dangote Sugar Registers N200bn Multi-instrument Issuance Programme With SEC

    Dangote Sugar Registers N200bn Multi-instrument Issuance Programme With SEC

    Dangote Sugar Refinery Plc said it has registered its N200 billion multi-instrument issuance programme with the Securities and Exchange Commission (SEC).

    The company made this known through a statement signed by its company secretary/legal adviser, Temitope Hassan released on the Nigerian Exchange

    The statement said the registration of the multi-instrument issuance programme represents a significant step for Dangote Sugar and reinforces the Company’s commitment to diversifying its funding sources in alignment with its corporate objectives.

    “The management of the company will take decisions to proceed with issuances of any series of securities under the Multi-Instrument Issuance Programme in due course, subject to prevailing market conditions and obtaining relevant regulatory approvals.

    “The specific details of such issuance will be disclosed in the appropriate transaction documents at the relevant time. This announcement does not constitute an offer to sell securities under the multi-instrument issuance programme. Investment decisions to participate in any issuance, and subscribe for securities under the programme will be made based on the investor’s review of the information contained in, and incorporated by reference into, the Shelf Prospectus and Pricing Supplement to be published upon obtaining regulatory approval; after due consultation with its Stockbroker, Solicitor, Accountant, Banker or an Independent Investment Adviser,” it added.

    The company is a subsidiary of Dangote Industries Limited and is engaged in the refining, distributing, and marketing of granulated sugar to wholesalers and top players in the skin care, food and beverage, and pharmaceutical industries.

    Dangote Sugar is Sub-Saharan Africa’s largest sugar refinery, with a combined installed refining capacity of 1.49 MMT per annum. In the medium term, the Company is targeting an additional 1.5MMT of refined sugar from locally grown sugarcane and is on track to becoming a leading global integrated sugar producer with its backward integration plan.

  • SAD: High Operating Cost Forces 146 Internet Service Providers Out Of Business – Report

    SAD: High Operating Cost Forces 146 Internet Service Providers Out Of Business – Report

    Only 106 Internet Service Providers (ISPs) are currently active, out of the 252 companies licensed as ISPs as of fourth quarter (Q4), 2023, the Nigerian Communications Commission, NCC’s data revealed.

    NCC data showed the 106 ISPs had a total of 262,206 active customers, during the period under review.

    However, when compared to the four mobile network operators in the nation’s internet customer base, this number is still relatively low. Recall that 163.8 million internet subscribers were in use as of December 2023 across MTN, Airtel, Globacom, and 9mobile.

    A number of factors, including the high cost of operating in Nigeria, difficulties with right of way (RoW), low internet access in the country’s northern region due to security concerns, the completion of standardisation with state governments, and various taxes, were cited by stakeholders as reasons for the ISPs’ inactiveness.

    For instance, ISPs made a total revenue of N92,079,251,596.26, spent N5,243,381,710.22, to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment, with operating cost engulfing N71,200,884,440.55, according to the 2022 year end performance report.

    WTES Projects Limited’s chief operating officer, Chidi Ajuzie, responded to this by saying that Nigerian ISPs are facing a significant survival challenge, even as he urged them to broaden their operations and search for additional opportunities for growth and profitability in addition to sustainability.

    Highlighting some critical challenges faced by ISPs such as vandalisation, competition, tariffs, taxes and duties, power availability and cost, Ajuzie said this sub-sector needs regulatory support in terms of licensing issues, spectrum availability and price, inter-sector policies framework, Right of Way intervention, human security and safety at the plants.

    “The past two years have been very challenging for the ISPs, with lots of damages done to infrastructures, particularly in Lagos state. Federal government needs to put out laws to enforce the protection of critical telecoms infrastructure. ISP’s business in Nigeria is viable but we need to watch out and look out for governmental support at the federal, state and local levels for enabling business environment”, he stressed.

  • Six companies get licences to distribute power

    Six companies get licences to distribute power

    The Federal Government has issued six licences to different firms for the independent distribution of electricity in Nigeria, data obtained from the Nigerian Electricity Regulatory Commission showed.

     

    An analysis of the recent licensing and permits’ sections of the commission showed that the regulator issued the Independent Electricity Distribution Network licences to the six companies in 2023.

    The commission explained that the networks were designed to be independent of the main transmission system and operate on a smaller scale, providing electricity to specific areas or communities.

    It said the development of independent electricity distribution networks is seen as a viable solution for improving electricity access and reliability in Nigeria.

     

    The commission stated that it authorised the issuance of two new Independent Electricity Distribution Network licences and amendment of an existing IEDN licence in the first quarter of last year.

    In the second quarter of 2023, the commission did not issue licences for power distribution networks, but stated that it “issued two new trading licences in 2023/Q2.”

    The commission also stated that out of the 36 licences, permits and certifications issued in 2023/Q3, one was for the establishment of a new Independent Electricity Distribution Network, while one was a licence renewal for an IEDN.

    The other licences, according to NERC, include a trading licence and certifications for Meter Service Providers and Meter Assets Providers.

     

    The commission also issued 36 licences, permits and certifications in 2023/Q4. Three of the licences were for new Independent Electricity Distribution Network, while the others were trading licences, and certifications for Meter Service Providers and Meter Asset Providers.