29.2 C
Lagos
type here...
Home Blog

World Environment Day 2023: Chevron Nigeria reiterates commitment to an eco-friendly environment

By
Simon Ugwu
-
0
©Troy Fields

Kennedy

The world commemorates World Environment Day annually on June 5 to celebrate and promote environmental awareness and sustainability across the globe. Led by the United Nations Environment Programme, UNEP, and held every year since 1974, each edition focuses on raising awareness and mobilizing the world to take positive action to protect nature and our planet.

 

The theme for this year is Solutions to Plastic Pollution under the campaign slogan #BeatPlasticPollution. The theme is focused on creating awareness on the effects of plastic pollution on our ecosystem.

 

Chevron Nigeria Limited, CNL, operator of the joint venture between the Nigerian National Petroleum Company Limited, NNPCL, and CNL, identifies with this global action to address the impact of plastic pollution as it aligns with our commitment to protecting the environment while providing affordable, reliable, and ever-cleaner energy.

CNL conducts its business in a socially and environmentally sustainable manner, in compliance with all applicable laws and regulatory requirements, stakeholder expectations and best industry practices, and has made environmental stewardship part of its social investment programmes.

The CNL’s Chairman and Managing Director, Rick Kennedy, explains that the company’s approach to sustainability is highlighted by its commitment to protecting the environment, empowering its people, and always getting results the right way. “Environmental protection is a key Operational Excellence focus that is integrated into our project planning and life cycle of our assets. We implement a robust process for management of wastes, including solid wastes like plastics of various densities through reduction, reuse, and recycling options.

 

“We continue to assess and implement reduction of single-use plastic water bottles by providing water dispensers. We have also invested in waste management equipment to shred, crush, and compact for recycling and re-use of waste by third party service providers. These actions have prevented our used plastics from leaking into our immediate natural environment,” he said.

 

According to Rick, CNL’s Operational Excellence Management System delivers industry-leading performance in process safety, personal safety and health, environment, reliability, and efficiency. “Our focus on the environment during decision making lays the foundation for sound environmental management. The company protects the environment through the entire lifecycle from responsible design, development, operations, and asset retirement,” he added.

CNL recognizes the importance of minimizing its environmental footprints by promoting ecosystem restoration. The company continually aims to achieve world class environmental excellence through implementation of its Environment Risk Management process to identify, assess, mitigate against, and manage environmental risks, environmentally related community health risks, and environmentally related social risks.

CNL is advancing its lower carbon strategy by focusing on lowering the carbon intensity of its operations and by implementing methane detection and reduction capabilities. CNL utilizes high tech Optical Gas Imaging, OGI, cameras for detecting fugitive emissions and in the past 10 years has reduced routine gas flaring by over 97% in its operations.

The company, in partnership with the Nigerian Conservation Foundation, NCF, established the Lekki Conservation Centre in 1992. This 78-hectare facility, a center of excellence in environmental research and education, is reserved as a sanctuary for the rich flora and fauna of the Lekki Peninsula.

In 2005, CNL began supporting a yearly postgraduate research scholarship for PhD students in environment and conservation, instituted by the NCF.

Additionally, the company hosts the annual S.L. Edu Memorial Lecture to promote environmental management awareness and partners with the Lagos State Government and NCF to sponsor the annual Walk for Nature event, a programme aimed at creating awareness for nature conservation and sustainable environmental management. The theme of the 2019 edition was “Plastic Pollution, the enemy of our development agenda.”

Esimaje Brikinn, CNL’s General Manager, Policy, Government and Public Affairs notes that CNL recognizes the importance of protecting and conserving biodiversity. “We have a long history of working in collaboration with communities, industry groups, regulators, and conservation groups to identify and protect biodiversity in parts of the world where we operate. For over 60 years, the company has remained an active agent of sustainable development and strong advocate of partnerships in support of the environment. We will continue to partner with stakeholders in raising public awareness to create the transformative environmental change we need to advance to a more sustainable world that Beats plastic pollution for ourselves and for future generations,” he noted.

 

Nonso Okpala joins CSCS Board

By
Simon Ugwu
-
0

Okpala

The Central Securities Clearing System Plc, CSCS, Nigeria’s premier Financial Market Infrastructure company, has appointed Nonso Okpala, Group Managing Director/CEO of VFD Group, into its Board.

 

 

Nonso Okpala, who currently serves as the Group Managing Director and Chief Executive Director of VFD Group, a proprietary investment company with diversified portfolio – a company he co-founded with a group of astute professionals 15 years ago, began his career as a Senior Auditor at KPMG Professional Services (Nigeria), and later served as the Director of Finance/CFO at Heirs Holdings Ltd.

 

 

Last year, shareholders of the Nigerian Exchange Group Plc approved Okpala’s appointment as a Non-Executive Director as part of NGX’s efforts toward its board’s reconstitution. Nonso’s appointment to the board of CSCS and the NGX is critical to the development and enhancement of the market infrastructure and exchange business in Nigeria, which VFD Group, a company with significant holding in the NGX has recently been advocating.

 

 

Nonso’s business turn around capabilities has been evident in the evolution of VFD Group from initial capital of 2.5 million Naira to a company with current asset value at over 200 billion Naira and investment in over 40 *businesses* across diverse sectors of the Nigerian economy. He led the eight capital raises, setting and exceeding targets, building a reputable brand that transitioned from listing on the National Association of Security Dealers, NASD, to the Nigeria Exchange Limited, NGX, in just four years, a nontraditional feat further clinching the “Equity Listing of the Year Award” at the Made of Africa Awards in December 2023.

 

 

Okpala is a Non-Executive Director of Abbey Mortgage Bank, the oldest Mortgage bank in Nigeria currently valued at over 60 billion Naira from 6 billion prior to VFD Group’s investment and institution of strong corporate governance practices.

 

 

It is believed that his presence on the CSCS Board will enhance the company’s governance structure, instilling confidence among investors and stakeholders in CSCS Plc’s commitment to upholding the highest standards of corporate governance and accountability.

 

The VFD Group raises 12.5Bn and lists additional shares on the NGX

By
Simon Ugwu
-
0

The Nigerian Exchange Limited, NGX, Friday, listed VFD Group Plc’s Rights Issue of 63,342,455 ordinary shares of 50 kobo each, valued at N197.33 per share, culminating in a total value of N12.499 billion.

 

This strategic listing significantly bolsters VFD Group’s presence on the NGX, following the company’s recent listing of 190 million units of shares at N244.88 per share, which added N46.527 billion to the NGX market capitalization.

 

The Securities and Exchange Commission, SEC, approved the rights issue, which allocated one new ordinary share for every three existing ordinary shares as of 12 October 2023. The initiative illustrates both the strength of VFD Group’s financial position and its commitment to fostering liquidity in the Nigerian capital market.

 

In December 2023, VFD Group revealed that the SEC had approved its rights issue. As a result, the Rights Issue commenced on December 20th, 2023, with a 31-day duration. Shareholders were informed through rights circulars and application forms facilitated by United Capital Plc, the leading issuing house, Kairos Capital Limited, and participating stockbroking firms which include TRW Stockbrokers Limited, Cowries Securities and Anchoria Investment & Securities Limited.

 

With the listing of these additional shares, VFD Group Plc’s total issued and fully paid-up shares have surged from 190,027,365 to 253,369,820 ordinary shares of 50 kobo each. This expansion reflects the company’s aggressive growth strategy and its dedication to enhancing shareholder value.

 

According to the Group Managing Director and Chief Executive Officer of VFD Group Plc., Nonso Okpala, “The successful closure of this Rights Issue, eagerly embraced by our shareholders, is a testament to the unwavering trust and confidence they place in our strategic direction and operational resilience. We are grateful for the approval from the Securities Exchange Commission, SEC, and the continuous support from the Nigerian Exchange Limited.”

 

Talking about the significance of the rights issue, Nonso added, “Our objective with this rights issue is to further strengthen our market position and enhance our capacity to drive growth and innovation, particularly in the realm of exchange businesses. We believe that by expanding our capital base, we can better serve our stakeholders and contribute to the development of Nigeria’s financial markets.”

 

This listing is a strategic move by VFD Group to enhance its visibility, access to capital, and liquidity, ultimately benefiting its esteemed investors and stakeholders. As VFD Group continues to expand its portfolio across various sectors, it remains committed to building positive and socially conscious ecosystems that contribute to the socioeconomic development of Nigeria.

 

NNPC: Changing the Narrative through Effective Corporate Communications

By
Simon Ugwu
-
0

Soneye

By Thaddeus Nduka

One of the best things to happen to the Nigerian National Petroleum Company Limited, NNPCL, was the appointment of Mele Kyari as its Group Managing Director in 2019. To fair-minded analysts, the appointment based on verifiable evidence has changed the trajectory of that company and set it on a path of sound corporate governance with the whole panoply of fiscal responsibility, transparency and ethical discipline.

 

Before Kyari’s coming the NNPC was rightly or wrongly, viewed by many Nigerians as a conduit pipe for the siphoning of government resources by private interests. It was also perceived by many as operating as a secret society whose activities are shrouded in mystery.

Kyari’s coming changed all that. He came up with a plan not only to change the ugly narrative about the NNPCL but to re-engineer its administrative processes and present to Nigerians and the international community, a world-class organisation run on global best practices. To achieve this, he unfurled his TAPE (Transparency, Accountability and Performance Excellence) agenda. TAPE signposted transparency in operations, commitment to excellence and more robust stakeholder engagement in a way that ensures a smoother relationship and closer collaboration with its partners and the Nigerian public.

It is clear that part of the recipe for the successful reversal of the negative trend of losses and the poor image the NNPC had borne for decades, is Kyari’s leadership style. NNPC insiders say the GCEO has an eye for talent backed by an uncanny ability to guide and coach his subordinates towards achieving the strategic objectives of the NNPCL.

A case in point is the headhunting of veteran journalist and media relations expert, Olufemi Soneye, from his United States base to function as NNPCL’s chief corporate communication officer. Key industry watchers are of the view that the step is perhaps the most significant decision Kyari has taken in the post-Petroleum Industry Act (PIA) era.

His appointment with the NNPCL on October 18, 2023, was received with much excitement, especially within the Nigerian media usually critical of its members taking up appointments with the government or the private sector. In just six months in office, Soneye, aligning his strategy with the overarching vision of TAPE as espoused by Kyari, has initiated a silent revolution in the communications process of NNPCL. One way he has done this is by transforming the entire Corporate Communications Division of the organisation to become a core part of every NNPC Ltd business.

He has done this by motivating and re-orienting his staff to see themselves as the first front desk of NNPCL whose attitude can impinge positively or negatively on the company’s relationship with its internal/external stakeholders. A key result of his tactics is that today, most business entities within the NNPCL, most of them unknown hitherto, have become recognisable to the Nigerian public through the CCD’s masterful and inspiring telling of their stories.

A few examples in this regard include the NNPC Foundation, whose CSR efforts are now in the public limelight; and the NNPC Academy, which is gradually becoming a leader in oil and gas training in the country.

While repositioning these previously unknown business units and entities of NNPCL, Soneye has repositioned the main brand itself to loftier heights through positive projection and promotion of the company’s brand identity. Through his all-round approach to corporate branding, individuals and organisations are coming in their numbers to associate themselves with NNPC Ltd.

Today, courtesy of his relentless efforts at repositioning the NNPC Ltd, the company enjoys global brand exposure with Soneye spearheading a 100% increase in the organisation’s brand visibility through strategic projection as a trailblazer and industry leader on both national and international platforms.
Soneye has secured impressive brand exposure for NNPC Ltd at key industry gatherings such as the Nigeria International Energy Summit, NIES, COP28 in Dubai, United Arab Emirates, CERAWEEK in Houston, Nigerian Association of Petroleum Explorationists, NAPE,, OTL, and SAIPEC, amplifying NNPC’s global footprint and reinforcing its position as a trusted industry leader on the international stage.

At the 41st edition of the NAPE Annual International Conference and Exhibition held in Lagos, NNPCL clinched the highly coveted Best Innovative Company Award, a testament to Soneye’s projection of the company as a relentless pursuer of innovation and excellence in the oil and gas sector.

It is noteworthy that Soneye has humanised the NNPC as a brand through the creation and deployment of captivating social media content. Through this effort, he has transformed the NNPC Ltd brand into a relatable and engaging entity, resulting in a substantial increase in followership across all social media platforms, thereby enhancing brand affinity and resonance.

Moreover, Soneye’s strategic collaboration with top-tier photo/video content producers facilitated the comprehensive deployment of compelling video, graphic, and textual content across NNPC’s digital screen network and other media platforms. This initiative not only elevated storytelling standards but also amplified NNPC’s brand presence and influence, boosting engagement across all stakeholder groups.

Part of Soneye’s retooling of NNPC Ltd’s public communications process is his introduction of an innovative communication strategy, transforming NNPC’s information dissemination system. Through proactive measures, including press releases, media coverage, syndicated features, interviews, documentaries, and press conferences, he has ensured timely and transparent release of information. He overhauled and curated all episodes of “Energy and You,” NNPC’s flagship TV program on NTA Network, delivering informative and engaging content that educates and empowers viewers on energy-related matters. This proactive approach enhanced transparency and trust within the company and among stakeholders.

Talking about NNPC Ltd’s stakeholders, one sees that this is one area he has left a deep impression. His adroitness in managing his company’s most critical stakeholders has been exceptional. Known by friends, colleagues and associates as “Mr. Relationship”, Mr. Soneye’s remarkable stakeholder management efforts have significantly improved the relationship between the NNPC Ltd and its external stakeholders like the national assembly and the media.

As a former journalist, Soneye has been able to manage NNPCL’s media partners in a way that has been mutually beneficial to most parties. Through his frank and timely response to enquiries, a good many negative reports against NNPC Ltd. have tremendously reduced or in some areas have been neutralised or substituted with positive ones.

One key example is his handling of the story around the deadline for the rehabilitation of Nigeria’s refineries. While critics and cynics were waiting for the bad news, Soneye took a large media contingent to witness and cover the mechanical completion of the Port Harcourt Refinery Company in December 2023, a move that nailed all rumours and renewed the media’s, and indeed Nigerians’ hope, in the entire rehabilitation process.

As NNPC Ltd’s chief corporate communication officer, Soneye tactfully responds to and manages summons from lawmakers, demonstrating resourcefulness in fostering positive relationships with both critical and non-critical committees. Through strategic engagement and effective communication, he addresses the needs and concerns of these committees while ensuring their alignment with NNPC Ltd’s objectives and values. Soneye’s proactive communications strategy has not only strengthened NNPC’s reputation as a trusted partner but has also significantly enhanced the company’s relationship with this crucial external stakeholder group.

Another positive attribute Soneye has brought to his job as NNPC Ltd’s chief image maker is his proactive approach to crisis management. Since his employment as the company’s spokesman, he has been able to sniff out, and promptly act on, potential reputation landmines for the NNPC Ltd, averting crisis in the process. He has put in place a team that tracks and monitors developments in the media and its various engagements with relevant stakeholders. This forward-looking strategy of his was evident during the Project Gazelle story(a $3.3 billion AFREXIM Bank crude oil pre-payment loan secured by NNPC Limited on behalf of the federal government) which was generating interest in the media and had the traits of degenerating from an issue to crisis. Soneye, employing proactive management and exceptional proficiency in high-stakes public relations ensured transparent communication and fostered confidence among stakeholders.

Today, barely five months in office, Soneye’s commitment to excellence, Soneye’s creative corporate communications strategy, and his masterful interfacing with NNPC’s critical stakeholders, which have earned the company global visibility and respect, are being acknowledged within and outside Nigeria.

On Wednesday, the Nigerian Institute for Public Relations (NIPR) on March 27, 2024, at its National Spokespersons Award, handed him the NIPR Distinguished Spokesman in Oil and Gas Award. It was a crowning moment of six dogged months of hard work which drew on the experience of working in three different continents.

Represented at the NIPR event by Kemi Olumuyiwa, head of relationship and stakeholder management, Soneye, who was away in the United States on assignment, was grateful for the recognition bestowed on him. In a brief message read on his behalf, he said: “I am deeply honoured to receive the NIPR Spokesperson of the Year Award in Oil and Gas. This recognition means a great deal to me, and I am truly humbled by the acknowledgement of my efforts in representing NNPC Limited. I would like to dedicate this award to the Group Chief Executive Officer of NNPC Ltd, Mele Kyari, whose unwavering support and guidance have been instrumental in shaping my role as spokesperson. Additionally, I extend my heartfelt appreciation to the entire Corporate Communications team for their collaborative efforts and dedication to excellence. This award is for the whole team”.

He added that the award would spur him to continue striving for excellence in representing NNPC Limited, the oil and gas sector, and upholding the highest standards of communication.

Nduka is a public affairs analyst

Eterna Plc appoints Abiola Lawal as new Managing Director/Chief Executive Officer

By
Simon Ugwu
-
0

Lawal

The Board of Eterna Plc has announced the appointment of Abiola Lukman Lawal, an Oil Executive and renowned Economist as the successor to the outgoing Managing Director/Chief Executive Officer, Benjamin Nwaezeigwe, who resigns his position after two years of service to the Company.

The Board thanked Nwaezeigwe for his significant contributions to the Company during his tenure.

The incoming MD/CEO, Abiola Lukman Lawal, has a proven record of positive performance in executive leadership at multiple C-Suite level roles locally and internationally.

A Global Executive with over twenty-five years of Management Executive experience in private and publicly listed companies across diverse industries, Mr. Lawal has expansive experience in the Oil & Gas sector and a proven record of value delivery in several aspects of executive management.

Lawal most recently worked with Eroton Exploration and Production Company Limited as Deputy Managing Director & Chief Financial Officer. Prior to which he served as Group Chief Strategy Officer of Oando Plc during its transformation from downstream to upstream and Gas. While at Oando, he oversaw the successful implementation of Oracle ERP technology as a game changer to transform the operations of the company. He also served as Executive Director of Oando Gas & Power as well as Gaslink (now known as Axxella) during the rapid growth and expansion phase of the then subsidiary.

Lawal was the Pioneer Executive Vice President & Chief Financial Officer of Camac Energy Inc in the USA (later known as Erin Energy), the first Nigerian owned energy company to be listed on the New York Stock exchange. He has served in multiple executive roles in other companies, including CAMAC International Corporation and ExeQute Partners, Inc., both in Houston, Texas USA.

He served as MD/CEO of eWorldtrack Mobile Technologies USA, a Senior Manager

in SAP AG America, as Management Consultant and Transformation Manager at

Abiola Lukman Lawal Ernst & Young LLP and as Senior Financial Analyst at The Walt Disney Corporation in California, USA.

Lawal recently completed a Certificate course in Data Science and Artificial Intelligence, AI, at the Massachusetts Institute of Technology, MIT, USA, he holds a Master of Business Administration, MBA, with a concentration in Finance, Strategy, & Technology from the University of California Irvine.

He was an Outstanding Dean’s Fellowship Award Recipient from the Paul Mirage Graduate School of Management, University of California, Irvine, UCI, California, USA and graduated from University of Ilorin, Kwara State, Nigeria with Bachelor of Science, B.Sc., in Economics with a Minor in Finance.

He is a member of various professional associations including the Chartered Institute of Directors Nigeria, African Energy Chamber, The Nigeria Economic Summit Group and National Association of Corporate Directors USA. Lawal’s appointment is effective 15th of April 2024.

 

PETAN Resolves to Support Nigeria’s Oil and Gas Production Growth 

By
Simon Ugwu
-
0

 

…Commits to Strengthening Partnership with NAEC

 

The Petroleum Technology Association of Nigeria, PETAN, has promised to support the efforts of the Bola Tinubu-led administration toward increasing Nigeria’s oil and gas production for maximum value.

 

The Chairman of PETAN, Wole Ogunsanya, expressed his association’s resolve in Lagos when the representatives of the Association of Energy Correspondents of Nigeria, NAEC, led by its Chairman, Ugo Amadi paid a courtesy and familiarisation visit to PETAN on last week Thursday.

The PETAN chairman also assured NAEC of its commitment to consolidating the long-standing relationship existing between the two bodies.

He said the vision and intention of PETAN was to support the authorities to ensure that all the values existing in the oil industry stay in Nigeria.

He stated that if Nigeria could retain between 60 to 70 per cent of the oil and gas value chain in the country, the nation stood a better chance of emerging as top 20 economy in the world.

Wole expressed concerns that Nigeria is currently losing a lot due to its inability to produce up to its oil production capacity.

He pointed out that the country is under producing to the tune of at least 500,000 barrels per day, which he said was huge loss to the country.

He said such loses would not have been if there was full in-country retention of values and beneficiation across all the chains of the industry.

He explained, “Essentially, if Nigerian organisations are involved in taking that oil out, taking it to a refinery owned by Nigerians and refining it. If we have petrochemicals refining the gas and the product, we are taking that gas, we are processing it in power plants, we run pipelines to connect all those power plants, this country will be top 20 economy in the world.

“And we believe very strongly that there is no better prescription of Nigeria’s economic solution more than that.

In order to retain those value in-country at every stage of oil and gas process, Wole said a lot of gaps needed to be filled through government policy initiatives and collaboration with industry stakeholders.

Reiterating PETAN’s commitment to support the retention of those values, he acknowledged the presidency’s highly interest in increasing production.

He pointed out that the presidency had given the directives and had formulated a lot of gazettes, stating that PETAN aligned with those initiatives.

Wole further said, “Our intention is to support this government, to support this country to increase production of oil and gas. I presented this vision to the whole house of PETAN exactly a week ago and the vision is very clear. PETAN wants to support Nigeria through innovative means to increase product of oil and gas in this country.

“That is the mandate that the president has given. PETAN is going to come with very innovative ideas on how this is going to be achieved and even low cost approach that is being used in other countries. If you go to Indonesia where some of us have relationships, this is what they are doing. They are looking inwards on how to maximize returns from the resources that they have.”

PETAN Executives

 

Owing to the technical know-how of the members and the unique position of the association, the PETAN boss said they are working with the government to create value for the country.

He said the group’s commitment and response to the president’s mandate of increasing production was for them to be prepared to deploy all their assets at various locations in the Niger Delta to actualise that mandate.

The Chairman acknowledged the challenges facing the industry in Nigeria including funding, logistics and others.

He stressed the imperative of collaboration and partnership between PETAN and other critical stakeholders.

Wole maintained that his association cannot make progress with some of its plans without collaborating with either energy correspondents.

He added, “We cannot do without you. Our message cannot resonate and cannot get across without your partnership with us. So, let me assure you that what has happened in the past due to the circumstances of COVID that could have allowed some things to be put on the hold will not happen again”.

PETAN Executives and NAEC Executives

 

“Essentially, we both need each other. PETAN needs you to tell that story, to sell what PETAN vision is in order to help the situation we find ourselves. And I appreciate your candour in terms of how we’ve supported each other. We are going to support you as PETAN as we have done in the past”, he maintained.

“So, Mr. Chairman, I give you that assurance. We would work with you immediately.”

NERC fines AEDC ₦200 million for violation of the New Tariff Order, directs Customer refunds 

By
Simon Ugwu
-
0

The Nigerian Electricity Regulatory Commission has taken enforcement action against the Abuja Electricity Distribution Plc, AEDC, for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC (the “Order”). AEDC has been fined ₦200,000,000 (Two Hundred Million Naira) for failure to comply with the prescribed customer band classifications for the tariff billing.

 

This decision follows a detailed review and customer feedback, which revealed that AEDC had applied the new tariff to all customer bands, contrary to the Order, which was designed to ensure fair billing practices.

 

AEDC is therefore mandated to:

 

  1. Reimburse all customers in Bands B, C, D and E respectively that were billed above the allowed customer categories/tariff bands provided in the Order.

 

  1. Reimburse through the provision of the balance of customer tokens that the affected customers would be entitled to receive at the applicable rates and all token reimbursements shall be issued to the affected customers by 11 April 2024.

 

  1. Pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order.

 

  1. File evidence of compliance with the directives in a & c with the Commission by 12 April 2024.

 

The action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.

NERC approves N225/Kwh tariff hike for Electricity Consumers

By
Simon Ugwu
-
0

The Nigerian Electricity Regulatory Commission, NERC, has approved a hike in the electricity rates for consumers categorized under Band A. NERC has approved an increase of 300 per cent electricity tariff for Band A consumers in the country.

Accordingly, power distribution companies, DisCos, will be allowed to raise electricity prices to N225 ($0.15) per kilowatt-hour from N68 for urban consumers this month effectively from April 1, 2024.

This is contained in a press statement by the Vice Chairman of NERC Musliu Oseni last week Wednesday.

The Vice Chairman of NERC stated that the tariff hike would result in customers paying N225 per kilowatt hour, up from the existing N66.

He mentioned that these customers account for 15% of the 12 million electricity consumers in the nation.

Oseni further stated that due to the failure to meet the necessary electricity supply hours, the commission has moved some Band A customers to Band B.

“We currently have 800 feeders that are categorised as Band A, but upon reviewing those feeders’ performance, the Commission has now reduced it to under 500. This means that 17% now qualify as Band A feeders. These feeders only service 15% of total electricity customers connected to the feeders”, he said.

“The commission has issued an order which is titled April supplementary order taking effect from today”, he added.

“The commission now reviewed further the application by the distribution companies and have decided that only the 17% feeders and less than 15% customers will be affected by any rate increase that the commission will ever approve for the distribution company”, he clarified.

“The order takes effect from today and in that order the commission has approved a rate review of N225 per killowatt hour for just under 15% of the customer population in NESI. That means that less than 15% of the customers will be affected” he maiantianed.

Only 15% consumers affected

Oseni also revealed that these customers, who represent 15 per cent of the population, also consume 40 per cent of the nation’s electricity.

NERC Realigns Subsidy Regime and Service Delivery in the NESI

By
Simon Ugwu
-
0

“Pursuant to the provisions of the Electricity Act 2023, the Nigerian Electricity Regulatory Commission, NERC, is, amongst other objects, mandated to allow a licensee operating in the Nigerian Electricity Supply Industry, NESI, to charge rate sufficient to recover the full cost of its efficient operation including a reasonable return on the capital invested in the business. The determination of such rates is subject to extensive reviews, having regard to the imperative for protecting customers while allowing investors to recover sufficient revenue to incentivize investments necessary for continuous improvement in service delivery”, NERC said.

“The Federal Government of Nigeria has indicated a transition in policy direction towards introducing a more targeted subsidy regime aimed at mitigating the impact of changes in macroeconomic parameters while largely protecting vulnerable customers and fostering investments targeted at providing efficient service delivery in the Nigerian Electricity Supply Industry, NEESI, SI”, NERC added.

“The Commission has conducted a thorough review of the tariff applications submitted by the 11 successor electricity distribution companies in line with the processes established in our regulations and Business Rules. The review process was preceded by an analysis of the Performance Improvement Plans of the licensees and included a public hearing during which interested stakeholders and intervenors examined the rate filing submitted by the public utilities. The overarching objective of the Commission in the consideration of the tariff application is the creation of a financially sustainable electricity market providing adequate and reliable power supply to drive the Nigerian economy”, NERC maintained.

“The Commission, upon due consideration of the tariff applications, has approved revised rates affecting ONLY customers classified under Band A service category (about 15% of the customer population); empirical service data has confirmed that this class of customers have truly received the committed level of service. Under the revised tariff Order issued by the Commission, DisCos are under an obligation to provide customers classified under Band A service category a minimum average supply of 20hrs/day measured over a period of one week”, NERC stated.

“All other customers under Band B to E service category and representing 85% of customers population would not be affected by the current review of end-user tariffs. All DisCos have been provided with mandatory targets for investments and migration of more customers to Band A service category. With the newly approved tariffs, subsidies for the 2024 fiscal year are expected to reduce by about NGN1.14 trillion in furtherance of the Federal Government’s realignment of the subsidy regime”, explained NERC.

“The Commission has established a robust monitoring framework leveraging on technology to ensure that the public have visibility of the service covenant with their service providers. An enforcement and compensation mechanism has also been established, in the event of service failure”, stressed the Commission.

“We wish to assure all Nigerians that the Commission working in collaboration with the policy makers remains committed towards providing adequate and reliable electricity to all citizens as we work diligently with state governments to deliver on the gains of the Electricity Act 2023”, stated NERC.

NERC says 11 Discos Receive 2,577.60gwh of Electricity in January 2024

By
Simon Ugwu
-
0

Eleven electricity distribution companies in the country received a total of 2,577.60GWh of electricity, valued at N130.92 billion in January 2024, according to the Nigerian Electricity Regulatory Commission, NERC.

The Discos are Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt and Yola electricity distribution companies.

Data released by NERC on the commercial performance of Discos showed that while Ikeja and Abuja Discos received the highest volume of power, 413.69GWh and 403GWh each, in the month under review, Yola Discos got the least volume of 74.92GWh of power.

Similarly, Ikeja and Eko Discos collected the highest revenue of N17.59billion and N16.30billion from electricity in the period under review, while Kaduna and Yola Discos collected the least revenue of N3.24billion and N1.99billion respectively, while Port Harcourt Disco got N6.62billion in January.

 

The Day Transcorp Came to ‘Power” The Nigerian Capital Market  

By
Simon Ugwu
-
0

Elumelu

By Ikem Okuhu

 

The ceremonial ringing of the closing bell (a tradition set aside to either welcome visiting dignitaries or mark significant events/accomplishments) had a familiar note for the Board and Management of Transcorp Power Plc on March 4, 2024, as the company took to the podium at the trading floor of the Nigerian Exchange, NGX, to announce the listing by introduction of its shares on the NGX. For Peter Ikenga, the Managing Director/Chief Executive Officer of one of the country’s biggest thermal power plants, the ceremonial bell might have sounded strange. But for Tony Elumelu, the familiar note he attached to the sound of the gong can only be likened to the familiarity that world-class football stars who ended their careers in one club like Steven Gerrard, Paolo Maldini, Francesco Totti, Oliver Khan, and Ryan Giggs have each time they emerge in their home turf for a match.

 

Accompanied by Emmanuel Nnorom, Chairman, Transcorp Power Plc, Peter Hertog and Risqua Mohammed, Directors of TPP, as well as Owen Omogiafo, President/Group Chief Executive Officer, of the parent company, Transcorp Plc, Elumelu would feel at home standing on the raised platform and looking down at the trading floor. Having brought at least five businesses to the capital market, and having also raised capital that strengthened the United Bank for Africa Plc through several securities instruments offered by the Nigerian Exchange, it was a familiar terrain as far as the market was concerned.

 

Elumelu was leading Transcorp Power, a subsidiary of Transcorp Group into its first day in the market as a publicly quoted company. If there was excitement about the arrival of Transcorp Power, it was not just because of the arrival of a newbie at the market; on the contrary, it was to a large extent because of the presence of Elumelu, a powerful businessman, whose record of bringing winning brands to the market is well-known.

 

Before Transcorp Power, the company led by the Founder of the Tony Elumelu Foundation had brought many other businesses to the market. These include the United Bank for Africa Plc, United Capital Plc, Africa Prudential Plc, Afriland Properties Plc and Transcorp Hotels Plc. It was no wonder the Managing Director of the Nigerian Exchange, Umaru Kwairanga, proclaimed that the listing of Transcorp Power would open up the NGX for greater investment.

 

Kwairanga invited brokers to ensure the Power portfolio is attractive to investors, whom he also enjoined to benefit from the values being brought to the market.

 

The values, reading how the market is reacting to the listing of this company, can be felt in the quick uptake of the 40 million shares released as the introductory offer. In keeping with the promise Elumelu made at the Facts behind the listing on democratizing wealth, shareholder of Transcorp Power sold down their holdings, so that more shares would be available for the general public – over 150 million units were traded subsequent to the listing day. What a man!

Power is a new type of securities on the Nigerian bourse. Transcorp Power is the second firm in the power sector to become publicly quoted. With the experiences of the companies in the Heirs Holdings Group, Transcorp Power is set to take advantage of the depth of the Nigerian market to generate the capital it needs to expand operations and meet its revenue target of more than N500 billion it has set for itself in the next seven years.

 

The numbers indicate the company will likely achieve or even surpass this. Revenue has been on a steady increase since the past five years, rising from N55.9 billion in 2019 to N142.1 billion in 2023. This represents a 158% increase over the period. Similarly, profits (before tax) rose by 469 percent over the same period, rising from N9.26 billion in 2019 to N52.86 billion in 2023.

 

Those who, like the Chairman of the NGX, displayed excitement at the listing of Transcorp Power are being proven right. As of the close of trading on Friday, March 8, 2024, Transcorp Power’s share value has grown from the N240 traded on the listing day, to more than N352, representing a gain of 47 percent.

 

These numbers may point to the early interest investors are taking in power sector stocks, but it is also indicative of the value in the entry price of N240, which is attracting investors, given the low entry price and the potential for high yield.

 

Speaking on the listing, Abdulmumin Ali, a financial analyst based in Abuja said a fair analysis of Transcorp Power’s performance points to a future of impressive outing in the capital market. Transcorp Power, he observed, is quite profitable and will be more profitable in the future.

 

“For instance, Transcorp Power had their Revenue from contracts with customers grow by 57% over the past year to culminate in a Profit Before Tax of N52.7bn as of the year ended December 31, 2023. This in effect was an 84% growth in profit from N27.6bn as of December 2022.

 

The expected increase in capacity and revenue is the nectar that is luring investors. The question many are asking is whether the Nigerian capital market is big enough in stature to accommodate the funding demands of capital-intensive projects as power sector firms would be demanding.

But speaking on the issue, Mike Eze, a foremost stockbroker and CEO, Crane Securities Limited was confident that the Nigerian capital market was big and sophisticated enough to absorb any project brought to it.

“Ours is a market, though an emerging market, was rated the best-performing market in the world in 2023 by the International Finance Corporation, IFC. We got favourable ratings from other international agencies as well. The capital market can raise funds to any required capacity. It all depends on the needs of the issuer! This market, the Nigerian Exchange Plc has the capacity and the appetite to take the demands of the power sector and indeed other sectors should they all decide to come at the same time,” he said.

Another operator at the capital Market, Vincent Ugwu, Managing Director/CEO of De-Lords Securities Limited, believes the capital market may eventually become the destination of most of the players in the power sector in Nigeria because of the advantages the market has in raising low-cost capital.

“There is no doubt that the interest that investors are showing in the stocks of Transcorp Power will attract other players. Opportunities abound in the power sector in Nigeria. There are opportunities in the gas value chain, there are opportunities in widening the areas of coverage and there are also opportunities in cross-border selling of power. Discerning players such as Transcorp Power will always come to the capital market and get the sort of growth they dream of,” Ugwu stated.

 

People may say it is early days and premature to judge the performance of Transcorp Power, but having gained close to 50 percent after just one week of trading is indicative of a bright future for both the company and the investors smart enough to take early positions.

 

 

 

 

 

 

123...299Page 1 of 299

LATEST UPDATE

spot_img
spot_img

© Copyright 2021 Energy Frontier. All rights reserved.

About Us

Popular Category

Editor Picks