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Nigerian govt to save N1.5tn from removal of electricity subsidy

Published

8 months ago

April 11, 2024

The Nigerian government says a recent increase in the price of electricity for Band A customers to N1.5tn means it could save more this year.

The government also said that about 2.5 million meters would be installed this year to close the metering gap across the country and make sure that people pay the right amount for electricity.

The Federal Ministry of Power, in a document made public by Bolaji Tunji, who is the media assistant to the power minister, on Wednesday evening said that the recent tariff change would save the country N1.5tn.

It said, “FG (Federal Government) to save N1.5tn with tariff adjustment. FG still subsidising Bands below A. Pricing change will help improve liquidity to the NESI (Nigeria Electricity Supply Industry).

“Discos (power distribution companies) will be sanctioned for supplying less than 20 hours to Band A consumers.”

Electrical consumers in the Band A group, which makes up about 15% of the country’s 12.82 million power users, no longer get any subsidies on their bills. Those affected would now pay N225 per kilowatt-hour, which is about 240% more than the old rate of N68/kWh.

In reaction, manufacturers and organized labour spoke out against the tariff increase that about 1.9 million consumers will have to pay. The increase was passed and announced by the Federal Government on April 3, 2024.

For the past few months, the terrible state of the electricity supply has gotten even worse because gas producers to gas-fired thermal power plants have stopped sending gas to those plants because they owe $1.3 billion in debt.

Meanwhile, the argument around subsidies of essential products and services in Africa remains active with some analysts positing that the earning power and GDP of most countries in the continent puncture the likely gains of a no-subsidy regime, given the lack of economic means by a large percentage of the public.

Related Topics:electricity subsidy Featured Nigeria

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Moroccan annual inflation rises to 0.8% in November

Published

25 minutes ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

1 day ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”