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Private sector players urge FG to suspend new electricity tariff

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…Says it will affect production negatively

By Omolola Dede Adeyanju

Private Sector players in the Nigerian business space under the umbrella group of the Organised Private Sector (OPSN) have urged the Federal Government (FG) to suspend the new electricity tariff.

The Nigerian Electricity Regulatory Commission (NERC) had recently announced an upward review in the electricity tariff for Band A customers generating public outcry.

In a statement by OPSN comprising top Business Membership Organisations (BMOs) MAN, NACCIMA, NECA, NASSI and NASME representing more than 5 million businesses in Nigeria, the association said has taken due notice of the various reforms initiated by the President Bola Tinubu administration to stabilise the economy, enhance human capital development and increase the tax-to-GDP ratio to 15 percent while enhancing fiscal transparency.

“The OPSN has received numerous complaints from its member-companies on the implications of the recent astronomical increase in electricity tariff by the Nigerian Electricity Regulatory Commission (NERC) for Band A customers without the required and proper consultations with the private sector. This sudden exponential increase in the face of inadequate electricity supply, is inimical to the competitiveness of Nigerian products and businesses and will definitely exacerbate the impact of high cost of production,” the Group argued.

Meanwhile, OPSN explained that the astronomical increase is against the MYTO Order referenced NERC/2023/05, which valued the cost-reflective tariff at N114.8/Kwh (determined using exchange rate of N919.39/$1).

“It also does not reflect the current exchange rate reality that has seen the Naira appreciate by 62.95 percent over the dollar in the last one month.

“A closer look at the impact of increase in electricity tariff to N225/kwh (determined using exchange rate of N1463.31/$1) on the cost profile of a medium sized company using 700kw revealed that the firm will need to pay about N1.4b per annum (700 x 225 x 24 x 365)for electricity.

“In China, a similar medium sized company will pay a little over N24m (700 x 94.14 x 24 x 365). Obviously, the new electricity tariff is outrageously higher, when compared with the going rates in countries with significant manufacturing performance.”

The body further enumerated that In the United states of America (USA), United Kingdom, Germany, France, China, India, South Africa, Ghana and Benin Republic, prevailing electricity cost per kilowatt hour are $0.1545, $ 0.3063, $0.53,$0.0573,$0.076, $0.068, $0.0999, $0.123 and $0.195 respectively.

The group further argued that conversion values of the afore-mentioned electricity cost in Naira are N191.38, N379.41, N656.50, N70.98, N94.14, N84.23, N64.53, N152.36 and N125.95 respectively.

“Clearly, with the new tariff of N225/kwh, Nigeria now ranks third after Germany and the United Kingdom on the list of countries with high electricity cost. What is most worrisome with the Nigerian case is the fact that the electricity to be supplied is not adequate.

“Also, the increase is coming on the heels of macroeconomic instability, infrastructure deficits, as well as other supply side constraints limiting the performance of the productive sector. Truth be told, over 65 percent of private businesses, especially manufacturing concerns and SMIs, may be forced to close down due to the high electricity tariff.

“However, in consideration of the above and from compelling primary data and submissions from member-companies, the OPSN noted that it is constrained to state that the more than 200 percent increase in electricity tariff at this difficult time is inimical to the survival of our businesses and would lead to unprecedented downturn in the productive sector of the economy.

“It will have negative trickle-down effects and certainly impoverish Nigerians. The unwarranted increase will worsen the upward swing in inflation, aggravate the pressure on the disposable income of the average Nigerian and lead to closure of many private businesses. The cumulative effect will be an escalation of the current high level of unemployment and insecurity in the country,” it explained.

The group urged the government to have dialogue around the process and methodology of determining electricity tariff as well as jointly agreeing on the transparent mechanism required for tariff setting.

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Fidelity Bank distributes food packs to families in Keffi

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Leading financial institution; Fidelity Bank PLC has distributed food packs to women, widows, children, and the vulnerable in Keffi, Nasarawa State as part of its Corporate Social Responsibility (CSR) activities.

Addressing journalists in Keffi, Nasarawa state during the distribution event tagged, “Fidelity Food Bank Initiative,” which was carried out in partnership with ABBASID Charity Foundation, the Divisional Head, Brand and Communication Plc, Fidelity Bank, Meksley Nwagboh, emphasised the bank’s commitment to supporting communities all across Nigeria through its Food bank initiative.

“Since April 2023 when we launched the Fidelity Food Bank initiative, we have distributed over 100,000 food packs in more than 100 communities nationwide.

“This is borne out of the premium we place on the wellbeing of our host communities as well as our commitment to support the achievement of the United Nations Sustainable Development Goals 1, 2 and 3 which speak to Poverty eradication, Zero Hunger and Good Health and Well-Being respectively.”

On her part, the Founder of Abbasid Foundation, Hajia Hauwa Abbas, said the food bank drive started when she was chosen as the bank’s Food Bank partner in the North and listed some of the benefitting states to include Jigawa, Zamfara, Zaria, Kebbi Bauchi, Kano and the Federal Capital Territory (FCT).

‘’I am very pleased with Fidelity Bank because as much as they are doing business with us in our community, they are also giving back to us, especially women.”

The food distribution event also saw Sen. Wadada Ahmed, representing Nasarawa West Senatorial District, leverage the Fidelity Food Bank outreach to provide additional food items to residents of the community.

Senator Ahmed, who was represented by his wife, Zainab Wadada-Ahmed, said the move was in continuation of his philanthropic gesture to his constituents especially for orphans and widows.

‘’We are here today to give back to our people and considering the hardship in the country, this is the little that we can do. I appeal to well-meaning Nigerians to try and collaborate to see how we can help the people that do not have,” she said.

Appreciating the gesture from the bank and her partners, one of the recipients, Mrs. Susan Nyikwagh, urged other well-meaning persons and organisations to take a cue from the bank and come to the aid of the vulnerable ones in the society.

Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged customer commercial bank with over 8.5 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.

The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.

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FG issues licenses to IIM, certifies Data Protection professionals

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By Matthew Denis

On Monday, The Nigeria Data Protection Commission (NDPC) granted a license to the Institute of Information Management (IIM) to administer exams and certify future data protection professionals in the country.

The NDPC National Commissioner and Chief Executive Officer, Dr Vincent Olatunji handing over the certificate to the institute in Abuja stressed that the move aims to address the significant capacity shortfall of over 500,000 professionals in the data protection field and reduce the expenses associated with obtaining certification overseas.

The Commissioner explained that the initiative will help to generate more jobs in the country and prevent capital flight.

He said, “When we started in 2021 by advertising, four organisations applied within the organisation. We invited them for presentations and we are choosing the best. They have gone through a lot of technical sessions with us, evaluating the platform that they are going to use, discussing with their staff on the process, just to ensure that we have the best for the country.

“What the country stands to gain from this process, is  the fact that we are promoting executive order articles 003 and 005 to promote local content in Nigeria. Most of us who are certified in data protection have international certifications.

“We had to pay in dollars to write exams, and to maintain our certification on a regular basis. So, we are trying to domesticate this in Nigeria to have a national certification process. More importantly, looking at our number in the country and looking at the number of data protection professionals that we are going to produce in the country.

“We are looking at over 500,000, which we cannot afford to allow capital flight in this area. More importantly, with the current technology, we are looking at a way that this process will become a pan-African initiative, whereby data professionals, when they have the national certification process that we have in Nigeria, will be able to practice in any part of Africa.

“So it is a way of creating jobs for our people, a way of reducing capital flights, a way of developing globally competitive human capital data privacy and protection ecosystem. We are also going further to develop the training manual, which is unique to us. And that is why all the trainers in Nigeria will be using it.

“It will also create jobs for both already licensed data protection compliance organisations who will now be accredited to trained professionals that will prepare to write these exams, And looking at the integrity, the pedigree of the organisation that we have chosen, this is really important to us.

“And that is why the process was long. And we are happy that today, we are making history,  a major milestone, and the data privacy protection ecosystem continues. And we are leaving a legacy that is going to be very robust and stand the test of time and that will be comparable or even be better than anyone in any part of the world.”

While responding, President of the Institute, Dr. Oyedokun Oyewole, praised the Commission for enhancing the country’s data protection standards.

He noted that his organisation underwent a rigorous licensing process and pledged to fulfill its responsibilities diligently to the Commission.

“I want to assure the NDPC and the National Commission that we will not disappoint by putting in our best as usual to evolve as the best certification platform for data protection in Africa.

“You can be rest assured that IIM will deliver as promised and  I want to appreciate you for giving us this opportunity, and we hope to continue to work with the commission.”

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AGF, RMAFC back proposed 300% hike in salaries of Judiciary

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By Matthew Denis

The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi has supported the proposed 300 percent increase in the salaries and allowances of judicial office holders in the country by President Bola Tinubu.

The AGF alongside the National Judicial Council (NJC), Nigerian Bar Association (NBA), and the Revenue Mobilisation and Fiscal Allocation Commission (RMAFC), among others, endorsed the proposal while giving reasons.

Speaking during a one-day public hearing on a Bill titled: “A Bill for an Act to Prescribe the Salaries and Allowances and Fringe Benefit of Judicial Office Holders in Nigeria and Related Matters, 2024,” Fagbemi urged the committee to note that the efforts to improve the remuneration of judicial officers in the country has a chequered history.

The public hearing was organised by the Senate Committee on Judiciary, Human Rights, and Legal Matters chaired by Senator Mohammed Tahir Monguno (APC – Borno North).

He said, “I wish to remark that the Judicial Office Holders (Salaries and Allowances, etc.) Bill 2024 is quite innovative, aside from the increment in the basic salary, it also took cognizance of certain peculiarities of the administrative structure and operation of the judiciary.”

“This Bill will birth an appropriate and commensurate remuneration that will ensure judicial independence and integrity.

“The present-day but sad reality is that the judiciary has stagnated on the same salary scale for over 16 years, this is totally unacceptable and quite antithetical to any meaningful judicial reform.

“I strongly commend this Bill for your kind consideration and do urge the Senate to support and ensure the passage of this Bill in the national interest of promoting the rule of law.”

He added, “In consultation with the judiciary and other key stakeholders, we are also interested in ensuring a holistic review of our judicial system to respond to the justice needs of Nigeria.”

“This is why I am taking immediate/urgent steps to establish a Working Group on the review of the Constitution and other relevant laws. The Working Group will, among others, focus on the key provisions aimed at achieving the judiciary that responds to the evolving justice needs of Nigerians.

“At the appropriate time, and I promise very soon, we will come up with proposals for Constitutional and Statutory reforms of the Judiciary in particular, and the Administration of the Justice System in general,” he concluded.

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