Showing posts with label Central Bank of Nigeria (CBN). Show all posts
Showing posts with label Central Bank of Nigeria (CBN). Show all posts

Tuesday, February 14, 2023

Cashless Policy And The Cashless Banks Of Nigeria

 By Ezinwanne Onwuka

It was in October 2022 that the Central Bank of Nigeria, CBN, announced its intention to redesign the currency, which it said was in the best interest of Nigerians to check terrorism financing, counterfeiting and imbalances in the fiscal space, and to enable the apex bank to take control of the currency in circulation.  

*Buhari and Emefiele 

As a result of the currency redesign, the CBN also set the maximum cash withdrawal limit via the Automated Teller Machines and point of sale, PoS, agents at N20,000 per day for individuals subject to N100,000 per week, instructing commercial banks to load only denominations of N200 and below into the ATMs. 

Monday, February 13, 2023

Naira Redesign: In Whose Interests Are These Politicians Fighting?

 By Charles Okoh

There can be no telling the measure of pressure faced by Nigerians at a time as this. What is not in doubt is whatever the intent of the presidency in pursuing the redesign of some currencies, the discomfort Nigerians suffer now, if nothing is done about it might as well get to a level where the people can no longer bear the pains and inconveniences any more. At that stage, nothing is predictable.

In spite of repeated denials by Godwin Emefiele, that the naira redesign is not political and not targeted at any politician, the reaction of the members of the National Assembly and governors, especially of the APC, suggest that, indeed, there may be more to it than meets the eye.

Friday, February 10, 2023

Have Nigerians Truly Suffered Enough?

 By Ikechukwu Amaechi

In the twilight of the Olusegun Obasanjo administration, a drama played out in the Red Chamber of the National Assembly as senators squared up in a crunch tenure elongation. The day was May 16, 2006, one year before the end of Obasanjo’s constitutionally guaranteed maximum eight years of two terms. But Obasanjo didn’t want to leave, hence the need to amend the Constitution with an open ended-tenure. 

As pro-tenure elongation senators plotted their third term agenda, anti-Obasanjo forces also arranged their cards.

On the day of the second reading of the Amendment Bill, the Senate President, Ken Nnamani, called out his colleagues one after the other and his predecessor, Adolphus Wabara, became the starboy. 

Wednesday, February 8, 2023

Politics Of New Naira Scarcity

 By Sola Oni

On Thursday, February 2, 2023, during a zoom interview on Channels TV, the National President, Association of Mobile Money and Bank Agents in Nigeria, Mr Victor Olojo, was put on the spot over the current naira crisis. The Central Bank of Nigeria mandates banks to pay customers with the new naira. The banks complain of inadequate supply of the new notes and innocent Nigerians are groaning under the yoke of the buck passing between the CBN and the commercial banks.

Responding to a question that the Point of Sale operators were taking advantage of the naira scarcity to charge those desperate to withdraw money huge interest, Olojo explained that his members  also had to source for naira notes in many places, including filling stations at a cost.

Nuisance Around New Naira Notes

 By Ray Ekpu

When Mr Godwin Emefiele announced in October last year that the Central Bank of Nigeria (CBN) would be redesigning the N200, N500, and N1000 notes many Nigerians might have thought that they would have an opportunity to touch clean naira notes. The truth is that the common people of Nigeria never have a glimpse at clean naira notes in Nigeria.

 Only the rich, the very rich, get to hold clean notes. They are also the ones who buy mint fresh notes for spraying at parties. The rest of us just lick our lips when the extravagant rich engage in that obscene vulgarity at weddings, birthdays, chieftaincy ceremonies. As they spray stylishly the notes drop on the floor and other eager sprayers march them as they take their turn to display their vanity.

Tuesday, February 7, 2023

Naira Redesign, Queues And The Quest For A New Nigeria

 By Elvis Eromosele

The amount of queuing Nigerians have been subjected to in the last couple of weeks is unprecedented. It is equally unbecoming. It’s almost like the country had gone back four decades. Fights have broken out in queues at bank facilities, filling stations and INEC and LGA offices across the country. There are trending videos of people stripping naked in protest inside banking halls, others hitting each other with queue dividers and one person has been confirmed dead inside a banking hall, somewhere in Asaba.


Nigerians born in the 2000s, GenZs, should be forgiven for thinking the end of the world is here. On a typical day, a person will queue to collect new currency notes at the bank, rush to queue at the filling station to buy supposedly subsidised petrol at exorbitant prices and then drive to the closest INEC office to queue for permanent voter cards, PVCs. This is not sustainable.

Friday, February 3, 2023

Tinubu Vs Atiku: A Cautionary Tale Of Self-Destruction

 By Dan Onwukwe

Like a broken family whose members would  prefer to destroy their father’s inheritance rather than share it, shame has become a passé to the managers of the Presidential candidates of the All Progressives Congress and that of the Peoples Democratic Party, Bola Ahmed Tinubu and Atiku Abubakar. As the Feb 25 Presidential and National Assembly elections draw feverishly near, the desperation in the camps of these two presidential candidates seems to have reached a new low.

*Atiku and Tinubu 

With the many gaffes and seeming lack of tact by Tinubu on the campaign hustings, a sense of ennui has set in. His desperate efforts to be the next President of Nigeria appear to be bogging down. But he keeps blowing hot. As respected columnist Sonala Olumhense wrote in the SUNDAY PUNCH of January 29, if there’s one political party that ought not to be on the ballot in the February/March elections, it’s the ruling APC.  

Saturday, December 31, 2022

The World Ahead 2023: Whither Nigeria?

 By Marcel Okeke

The World Ahead 2023” is the 2022 end-of-year special publication of The Economist (of London) in which the journal reviewed the global economy in the outgoing year and made detailed projections about 2023, including what issues are most likely to dictate the trends in the coming year. It says: “After two years when the (COVID-19) pandemic shaped the immediate future, it is now the Ukraine war.”

The journal gave four things to think about for 2023, namely: (1) the impact of the conflict; (2) the struggle to control inflation; (3) chaos in energy markets; and (4) China’s uncertain post-pandemic path. Going granular in its analysis, the publication gave ten themes and trends for 2023—thus: all eyes are on Ukraine; recessions loom; climate silver lining; peak China; divided America; flashpoints to watch (India-China, Turkey-Greece); shifting alliances; revenge tourism; metaverse reality check; and New year, new jargon.

Wednesday, December 14, 2022

Emefiele Versus The Politicians

 By Andy Ezeani

The full story of how Godwin Emefiele almost abandoned his prime position as governor of the Central Bank of Nigeria to join the giddy race for President of Nigeria via the overloaded rough vehicle of the All Progressives Congress (APC) is yet to be told.   

*Emefiele 

Was he nudged on into a caper and conned along the way? Or was the adventure a true expression of his ambition and spirit of adventure? Whichever one it was, does not really matter. The man is an adult and therefore, takes responsibility for his decisions and actions. In this case, it was his choice to try the APC gamble. For good measures, he gathered the whooping N100miliion purchase of form fee that he threw into the unforgiving APC machine that never returned any money that entered its vaults.

Thursday, December 8, 2022

Poor Governance Should Stop

 By Terry  Adeniji

The government at all levels in the country is collapsing, the non-state actors have hijacked the reign of government from the people in power, especially the regulatory bodies in charge of our critical sectors, and the poor citizens are made to bear the brunt of their non-performance.

In the area of security, the Department of State Services, the police, and other security agents are helpless as the terrorists and bandits continue to terrorise people, killing, maiming and collecting ransom in millions of naira paid in cash and yet, the same huge money finds its way back to the bank and all these security agents can’t track it. Something is clearly wrong with our system, and yet nobody is resigning.

Tuesday, November 29, 2022

Does APC Deserve Another Tenure In Aso Rock?

 By Dan Onwukwe

It is not too late to begin to ask these questions: How does democracy protect itself against a ruling party that has almost ruined the country and destroyed lives and livelihoods of those it was elected to provide for their security and welfare and, yet is asking for their mandate for another tenure? Does that political party deserve your vote?

*Buhari, Tinubu and Adamu

Are you better off today than you were seven and a half years ago? Should you allow the same snake bite you twice? These questions should not be ducked. They are not rhetorical questions. At a time like this, what we need is truth simply spoken. That is why the forthcoming elections, beginning with the Presidential poll, are of critical importance. 

Friday, November 18, 2022

Gov Soludo’s Pettiness And Unconscionable Tactlessness

 By Robert Obioha 

 In an election season, political campaign can come in diverse forms, including crude use of language to possibly settle an old score or even attempt to diminish someone’s rising fame and political relevance. Even lending support to one’s favourite candidate can be subtly or brazenly done depending on one’s choice of words and deployment of language, which can also be brutal and lacking tact and diplomacy. 

*Obi and Soludo
Although politicians have been tasked by the Independent National Electoral Commission (INEC), National Peace Committee and other stakeholders to engage on campaign based on issues and desist from campaign of mudslinging and calumny, but every day, the polity is suffused with hate speeches, diatribes, incendiary comments, ethnic stereotyping of some leading presidential candidates all in an effort to pull some of them down. 

Friday, November 11, 2022

Soludo, Where Are The Coins?

 By Ugochukwu Ejinkeonye  

As Central Bank Governor (2004 – 2009), Professor Charles Soludo woke up one morning with a big dream. He wanted to mint coins for the use of Nigerians as legal tender. Those with better acquaintance with the psychological and cultural disposition of Nigerians told him pointedly that the policy was dead on arrival. They explained that given the behavioral pattern of Nigerians, the policy would be viewed by the majority as a needless burden.

*Soludo

But Soludo, who often appears and sounds as if every audience before him is a class of freshmen Economics students, dismissed with characteristic arrogance and cocksureness every contrary opinion. 

He went to town marketing the great benefits of the coins, harping on their durability and how billions of naira will be saved from not having to frequently replace well-worn notes any more since the coins would last till almost eternity. Seeking to talk him out of the clearly unrealistic policy was like singing ballad to the deaf!

Tuesday, November 8, 2022

The Buffeted Naira

 By Luke Onyekakeyah

The recent announcement by the Central Bank of Nigeria (CBN) on the introduction of newly redesigned N200, N500 and N1, 000 banknotes, has political and economic implications. Like a thunderbolt, the move has jolted many people, particularly, politicians who promote money politics. Those who have amassed naira and dollar waiting for the forthcoming elections are biting their fingers.

The move is a masterstroke against corrupt politicians, who have hoarded huge sums of money for vote buying during the 2023 general elections. By redesigning the naira and releasing it barely a month to the elections, the CBN may have played the trump card to frustrate all the permutations by politicians who banked on the hoarded naira. That way, the CBN may have contributed to the country having a more credible election in 2023.

Friday, November 4, 2022

The Politics Of Naira Redesign

 By Robert Obioha

The plan to redesign the naira by the Central Bank of Nigeria (CBN) has, like any other issue in Nigeria, been riddled with controversy and even politics. Ordinarily, the redesign of the naira for the envisaged benefits, which many Nigerians are interrogating, would not have generated the needless acrimony if adequate consultations were made and major stakeholders carried along. 

The differing opinions on the issue from those serving in this government is unnecessary. It is an avoidable distraction. It also shows the level of incoherence among ministers and officials of President Muhammadu Buhari’s administration. It is unthinkable that such a change in redesign of the naira is being contemplated without the knowledge of the minister of finance even if the law establishing the CBN did not expressly stipulate so.

Thursday, November 3, 2022

Nigeria: The Warnings From Sanusi And Danjuma

 By Lasisi Olagunju  

The Washington Post of May 29, 1979 reported an exchange between President Idi Amin Dada of Uganda and an agent of a British money-printing firm. The Ugandan dictator asked the man to help him print two million Ugandan shillings worth of 100 shilling notes. The Briton accepted the offer but "gingerly" asked Idi Amin how he was going to be paid for his services. "Print three million and take one million for yourself" was Amin's answer. 

*Danjuma 

The Ugandan leader had a minister of foreign exchange. Before Idi Amin's engagement with the Briton, the minister had informed the president that “the government coffers are empty.” Amin looked deeply at him and retorted: “Why (do) you ministers always come nagging to President Amin? You are stupid. If we have no money, the solution is very simple: you should print more money.”

Wednesday, August 31, 2022

Abuja’s Priorities Are Beyond ASUU’s Demands

 By Rotimi Fasan

The Federal Government through the Central Bank last week released $265 million to airline companies operating in the country. These are mostly businesses owned by foreigners. The aviation industry like most other sectors of the economy has been going through a very rough patch in the last few months. There had been a lot of hue and cry about the scarcity of aviation fuel which mostly affected local airlines.

*ASUU Leaders and the Federal Government Team 

But the scarcity of foreign exchange has translated into bad business for the major airline companies that have not been able to repatriate profits that are trapped in naira in local banks. After weeks of lamentation without any improvement in their situation, a number of them, including British Airways and Emirates, had taken the hard decision to halt their operations in the country beginning from the end of August 2022. 

The decision of these airline companies, should it come into effect, would amount to a virtual lockdown of the international routes of the Nigerian aviation sector. For a country that lacks a national carrier, this would be disastrous. As footloose as Nigerians, especially the elite, tend to be, it is both ironic and scandalous that they rely almost exclusively on foreigners for their international junketing. Yet our airports display some of the most exotic private jets, not one of them can be repaired or maintained locally, that are left idle while incurring avoidable debts on airport tarmacs and hangers. 

Monday, June 28, 2021

When It Looks Like Poverty Has Found A Home Here

 By Austin Oboh

When the United Nations World Food Programme recently reported that Nigeria faces imminent food crisis, owing mostly to insecurity in the North and other parts of the country, I suddenly remembered that the Central Bank of Nigeria (CBN) had, in the last few years, spent massive funds on agricultural programmes nationwide, especially in the North. At some point, the Federal Government boasted that the country would soon be eating what it produces. I was profoundly happy about the prognostics of a better day, like every other Nigerian.

Because if there is anything I detest, it is the unexplainable habit of importing what can be produced here. I have never understood the madness, and never will. You can, therefore, imagine my sadness that what I feared all along was going to happen – that billions of laudable investment in food production might be lost to unaddressed social problems. It ought to have been clear to the Federal Government that a nation in war is a nation in crisis. So, where was the root of the government’s optimism when it was obvious to all, especially to those in power, that the state of insecurity in the country had reached such putrid state that nothing would be spared the foulness? 

But the Nigerian govt has always behaved like it is nothing to worry about – at least, official attitude betrays this. The Federal Government has been blowing hot and cold in its war against terrorists and bandits, threatening to crush them at some point only to turn round the very next moment and appeal to them to drop their guns, especially when it appears the criminals are gaining the upper hand.

You can call this the weapon of threat and blandishment. Nothing the Federal Government has done in its military campaigns against terrorists and bandits have made as much impact as to generate the kind of optimism government officials often express. I have personally long concluded that those in power, cushioned by their privileges against the reality, have never truly understood what the country is going through. That, possibly, is why they believe that food programmes would thrive and the Nigerian people would soon become self-reliant despite the raging wars. 

And in the same spirit of political naivety – which has been so much on display since 2015 – the Federal Government, on Tuesday, inaugurated another laudable programme which, however, is doomed to fail like others before it.

I am referring to the inauguration of the National Steering Committee (NSC) of the National Poverty Reduction with Growth Strategy (NPRGS). The development filled me with a mix of elation and sadness, because, again, I realised that it has no chance of making much impact. 

At the event, the president repeated his outlandish promise to lift 100 million Nigerians out of poverty in ten years, according to him, with a well-researched framework for implementation and funding, as though previous implementation and funding frameworks were perfunctorily designed. 

Now that I think of it, poverty reduction programmes by successive governments in Nigeria have become a tedious experience to me even though I cherish their cosmetic desire to improve the lots of the increasing millions whom they have helped impoverished. Government’s resort to such ad hoc solutions in the face of profoundly enduring social problems does in itself demonstrate a poverty of thinking or a blatant refusal to confront the bitter realities of our time. Before I am misunderstood, let me make it plain that I am not against efforts to cushion the impact of hard times on people; I only object to the habit of ignoring the root and treating the symptoms of a disease. 

The stop-gap measures called poverty reduction programmes, now treated as permanent measures in Nigeria, have been with us in the last three decades without intrinsically changing the social conditions of the same category of people for which the programmes have been instituted. So, it was a languid feeling of déjà vu for me on Tuesday when the Federal Government came up with its stampeded version of poverty reduction, or poverty pacification – an expression which appears more apt, for me, in this context. 

Have our leaders considered the advice of Jim Yong Kim that dealing with poverty is a much more serious affair than constructing financial drains? The former World Bank president saw the matter more broadly as a factor of economic growth. “We will never be able to end poverty,” he said, “unless economies are growing.” 

Now, this opinion directs our attention to the need to look more directly at critical systemic factors embracing security, infrastructure, financial policies, education, justice system, and health – all of which are in varying phases of dysfunction at present. Why do we have to continually drive resources into superficial projects which only promise temporary relief for a few when, indeed, what is needed is to resolve the hydra-headed crises in our country today? 

Consider, for example, the dilemma in the agricultural sector already alluded to. According to a recent report by the World Food Organisation, Nigeria faces imminent famine as a result of insecurity in most parts of the country which has made farming hazardous. 

Why would the Federal Government continue to spend colossal funds on projects that would not resolve the complications in those areas mentioned, knowing too well that the gains would eventually be vitiated? Insecurity, darkness, and bad roads are the biggest challenges and causes of poverty in Nigeria. Whoever resolves these resolves the poverty that the people have known for ages and which has currently reached its most pathetic point. 

I am not unmindful of Buhari’s promise concerning the new programme but my argument is that these programmes have become effete in Nigeria on account of the endemic tendencies that hold progress hostage – the toxic environment of insurgency, banditry, and regional turmoil. What the Federal Government ought to do in the circumstances is not to assume that the country’s state of anomie will give way for ad hoc programmes to succeed. This is wishful thinking. The government must, as a matter of urgency, reinforce its war against insurgency and banditry and then initiate the process of addressing the socio-political upheavals in some parts of the country with the aim of restoring peace for progressive schemes to succeed. 

The present government’s insistence on political rigmaroles has jeopardised the economy despite all the efforts so far made. A new World Bank report says that Nigeria under President Buhari will lose the economic gains it made in the last decade at the end of 2021. 

“By the end of 2021, Nigeria’s GDP is likely to approach its 2010 level, thus reversing a full decade of economic growth,” the bank in its new report said. 

The World Bank’s projection comes as Nigeria strives to recover from the multiple recessions that hit the country in 2016 and 2020. 

The bank, in the report, said that there would be a constant decline in the country’s GDP per capita despite recovery from recession, projecting the country’s population to grow faster than its economy. 

The bank further predicted that despite the country’s gradual recovery from the 2020 recession, Nigerian masses would continue to suffer the adverse effect of the economic downturn. 

While applauding President Buhari for taking bold steps to reform the country’s deteriorating economic condition, the bank advised the government to deepen its recent reforms that allow private sector investment for speedy economic recovery. 

Apart from the COVID-19 pandemic, the controversial fiscal and monetary policies of the Buhari administration and the Central Bank were also largely blamed for the recession. 

So, here we are – the land of the poorest but ironically the country with the most extravagant government in the universe – striving to erase poverty by consolidating it. The more the Federal Government sets up schemes, ostensibly to improve the people’s lives, the deeper they sink into deprivation and squalor. Has the government ever realised this? How come, as the years roll by, Nigeria and her people depreciate and degenerate despite countless schemes targeted at empowering them?

Isn’t it time we stopped fooling around with schemes which look like they were hatched in the Academy of Lagado (courtesy, Jonathan Swift’s Gulliver’s Travels)? They are just drainpipes and possibly some ephemeral relief to a miniscule patch of the earth. Now, it all seems as if poverty has found a comfortable home in Nigeria. The socio-political morass here is benumbing. I have lived long enough in this country to know what I am complaining about. I was born, bred, and (unfortunately) battered here. So, let no one tell me about what I already know.

Even as I make my observations, I am aware that economic experts hold the view that poverty eradication programmes could significantly impact on the lives of the beneficiaries, but what am concerned about here is the overall effects on the masses? I would rather have a government that adequately funds education, pursues equality and justice, addresses all social ills in the society, including lopsided appointments, and realistically drives infrastructural development to a government that selectively dishes out handouts. 

*Oboh is a commentator on public issues

Thursday, August 9, 2018

Discrimination Stoking Poverty In Nigeria

By Bayo Ogunmupe
Lack of enlightenment, poor adaptation of technology and poor telecommunication infrastructure have been identified as reasons for financial exclusion in NigeriaThis lack of financial inclusion caused Nigeria to lack behind its sub Saharan African (SSA) country peers.
Many of our colleagues in the SSA like Kenya, Ghana, Ivory Coast and Senegal are better than us in terms of global system of mobile communication skills education and adaptation of technology. Every telecom company in Kenya has  helped financial penetration through free skills training and financial inclusion.  

Monday, July 16, 2018

A Swot Analysis Of The Meter Asset Provider Regulation(Part 2)

By Idowu Oyebanjo

*Threats
The biggest threat to the implementation of the Meter Asset Provider (MAP) regulation is the regulatory inconsistency and policy summersaults for which the Nigerian Electricity Supply Industry (NESI) has come to be known in the eyes of the international community. What if, for socio-political reasons, the MAP regulation is withdrawn and the metering service charge removed some few months down the line post-investment? A related issue is around the ownership of meters to be installed. Will the consumer own the meter and carry it when they leave the property as was possible previously if they relocate within the same DisCo franchise area? 

Will the consumer pay for meters owned by others as well as pay for the electricity consumed (a service) and metering service rendered (another service) in the procurement of same service? Consumers may see this as a case of double-dipping! As the regulation makes provisions for consumers who wish to make an upfront full payment for meters, will such a consumer continue to pay for similar charges if they relocate elsewhere within the NESI? The best way around these and allied issues will be to decouple the consumer from the asset by means of a metering point administration number (MPAN) unique to every property to which electricity is supplied and metered. Theretofore, every consumer will pay a service charge for metering and this component can be included in the MYTO tariff structure. Also, the issues around customers who have paid for meters and are yet to receive them under the CAPMI scheme have to be resolved. There is the risk around sustainability of policies made in this regard and generally, within the regulated electricity supply industry in Nigeria.

The major stakeholders in the implementation of MAP are the consumers, the DisCos, the MASPs and the financial organizations who will provide funding for the investment required. To succeed, the process has to have a line of sight and be seen to be transparent. The monies due to each party has to be handled by an independent and dedicated system or body which escrows the payments made by consumers and distributes to relevant parties based on a previously agreed sharing formula. The implementation has to be such that investors and financiers can have consistent cash flow and recoup their investment in reasonable time. To this end, there is a need for a clear financial or capital structure in the implementation (debt and or equity) for MAP and financiers who will provide long-term loans at single-digit interest rates. Sadly, the Central Bank of Nigeria (CBN) that has been in the fore-front of the Nigerian Electricity Market Stabilization Aid, currently has a limited budget available to provide finance for Meter Asset Service Providers (MASPs). That said, the CBN is only prepared to provide funding in the form of re-financing for MASPs that can demonstrate viability and sustainability of their business model.

The time deadline provided for DisCos to procure the services of MAPS is one hundred and twenty (120) days following the 3rd of April, 2018 date of declaring the regulation. In comparison to the level of activities to be carried out for a competitively tendered procurement process and the number of certified MASPs for the entire country (22), this time is insufficient and need increasing. MASPs should also not be limited by the number of permits they have to obtain to accelerate the delivery of meters to cover the sure-to-increase metering gap. Also, economy of scale should be encouraged to ensure the warranty on installed meters are up to the shelf life, ten (10) years say, of installed meters.

For the general implementation of the MAP regulation to be a success, there is need for the proper monitoring and development of a competitive MAP procurement process. Nigerian Electricity Regulatory Commission (NERC) tenders’ auditors will ensure transparency and review the procurement process. Both pre and post-installation audits are imperative. MASPs must have the technical competence and financial capacity to carry out the intended services and the procurement process must ensure this is the case. We need to have genuine investors who will be willing to put money into investing in infrastructure, which in this case are the durable and fit-for-the purpose electricity meters for the NESI. This will also mean the power system will have a much desired enforcement system devoid of the corruption-ridden judicial system we have to day. The special court for the NESI will rely on the efforts of specially trained enforcement officers who will render swift services up to adjudication based on laid down procedures.

According to the regulation, consumers will have to pay a metering service charge (a lease charge) for the services provided by a MAP. In view of the level of consumer apathy today, and more so, as many consumers have paid for meters previously under the CAPMI scheme and are yet to receive the meters, there is an urgent need for an extensive enlightenment and sensitization campaign to be championed by NERC to seek the understanding of consumers nationwide. It is best to involve consumer advocacy and civil society groups, consumer protection council, and other affiliate organizations during the communication efforts to make this campaign a success. Yet, there is still the issue of consumers who reject the offer to have meters installed in their property. Thus, a robust enlightenment campaign for market participants and customer re-orientation to be championed by the DisCos and NERC is apt.
The absence of robust data and communication systems on which the stakeholders including the MASPs can leverage is another area of need. For the NESI to function optimally, and by extension for the implementation of the MAP regulation to be a success, there is a dire need for customer enumeration, consolidated with asset information systems. 

This provides an opportunity for DisCos to sponsor an energy networks association (ENA) to be saddled with delving into core technical problems within the NESI for and on behalf of the stakeholders. Issues to be looked at include but not limited to cost-reflectivity of tariffs, customer charging methodology, consolidated and centralized high-fidelity data capture of consumers and assets, technical policies for the successful operation of power assets and systems, specifications for plants, components and devices, research and development (R&D), investigation into failures and recommendations etc.

As metering services have hitherto been in the jurisdiction of DisCos, there will be cases of existing contracts with certain metering services providers that need to ultimately operate based on the MAP regulatory framework. While a process to ensure the sacrosanctity of such contracts has to be put in place, a cut-off date for migrating all such legacy metering services contracts to operate in line with the MAP regulation has to be determined. Such existing contracts between DisCos and their current metering service providers have to be declared to NERC now to preserve the integrity of the new regulatory regime. Also, it is possible for a DisCo to frustrate the process of implementing the MAP regulation if for example additional mundane and impeding requirements are placed on MASPs in the procurement of their services as the regulator has only provided minimum requirements for MASPs with Discos at liberty to demand further requirements in conformance with their asset management policies. 

This has the potential to slow down the implementation of the MAP regulation. The antidote to this is the separation of the “wire” business of DisCos from the energy supply business to be provided by separate legal entities, owned by existing DisCos, MASPs or others. In addition, as MASPs have to procure 30% of meters from certified local manufacturers, a system has to be worked out to ensure that MASPs patronise local manufacturers of meters and if possible tracked by the regulator. Also, the percentage of local content involvement can be increased (or flipped) to make original equipment manufacturers (OEMs) to open shop in Nigeria which brings with it attendant employment opportunities and allied economic benefits that impact positively on the country’s GDP.

The absence of technical specification and standards of electricity meters to which MASPs must adhere leaves room for sub-standard meters to be installed within the NESI. This threatens the sustainability of the business for MASPs and may ultimately lead the consumers back to status quo. The required specifications will include requirements for technology, data management and communication systems. There is also the issue of collaboration between NERC and Nigerian Electricity Management Services Agency (NEMSA).

The MAP regulation is a step in the right direction towards entrenching full retail competition in the NESI as envisioned by the Electric Power Supply Reform Act (EPSRA) 2005 which has to be updated to reflect the changes brought about by the declaration of the eligible customer and meter asset provider regulations. Its implementation is only a part of the solutions to the myriads of problems bedevilling the power sector. Closing the metering gap does not in itself remove the problems associated with ATC&C losses, cases of electricity theft and meter bypass, low morale and deficiency in human capital resources within the NESI.

The next step in the direction of full-scale competition in the distribution system within the NESI will involve the separation of the “wire” services from the energy supply services to allow DisCos to carry lower risks and focus on the required investment in the operation and maintenance of the weak network infrastructure while reducing the aggregate technical and non-technical losses in the distribution network.
…Concluded