CBN cuts overseas withdrawal limit on Naira Debit Cards from $150,000 to $50,000

Wednesday, April 15, 2015

The Central Bank of Nigeria, CBN, yesterday announced the reduction of the usage of naira debit cards for transactions overseas from $150,000 to $50,000 per person, per annum.

The reduction was announced by the Director, Trade and Exchange Department, CBN, Mr. Olakanni Gbadamosi via a circular titled “Usage of Naira Denominated Cards Overseas.

The circular stated:

“All authorised dealers and the general public are hereby informed that with effect from the date of this circular (13th April 2015) the existing limit on the usage of the naira denominated cards for transactions overseas has been reviewed downward. 

Accordingly, the limit has been reduced from $150,000 to $50,000 per person, per annum. In addition, authorised dealers are to ensure that the daily cash withdrawal limit embedded in the cards per person, per day is pegged at $300. Authorised dealers are to ensure strict compliance with this new limit and render monthly returns of the transactions.”

The decision to reduce the limit was taken at the meeting of the Bankers Committee held last week.

Speaking at a press briefing after the Bankers Committee meeting, the Managing Director/Chief Executive, Union Bank, Mr. Emeka Emuwa, said:

“We realise that people were using the cards in a manner they were not expected to use them. There were some arbitrage going on, and in order to continue to support the stability in the foreign exchange market. 

So it was agreed at the committee that the limit would be reduced for the use of the naira debit cards. You will still have, as a customer, unfettered access to your dollar account (cards) but for the naira cards, the limit will be reduced to a judicious level.”

The circular did not state if there would be restrictions for individuals with multiple naira denominated cards from different banks.

CBN to publish names of ‘chronic’ bank debtors, slash debit cardholders’ spending abroad

Friday, April 10, 2015

The Central Bank of Nigeria on Thursday expressed deep concerns about the growing amount of Non-Performing Loans in the books of Deposit Money Banks and said it would publish the names of chronic debtors.

The Director, Banking Supervision, CBN, Mrs. Tokunbo Martins, who stated this at a press briefing after the 321st meeting of the Bankers’ Committee in Lagos, said the central bank, in collaboration with the committee, had also decided to stop the serial debtors from buying foreign currencies at the official interbank foreign exchange market.

Also to be stopped from buying foreign currencies, according to her, are members of the board of directors of debtor companies as well as their subsidiary firms.

According to PUNCH, Mrs. Tokunbo Martins recalled that the Asset Management Corporation of Nigeria had spent a fortune to buy toxic assets from the banks’ books in the past and that it was important to stage timely interventions to forestall a repeat of past mistakes.

Martins said:

“So, it was decided that going forward, one thing that we will do is to stop them (chronic debtors) from getting access to foreign exchange. Another thing that we also considered doing is to publish the names of the borrowers that refuse to pay up. This is to ensure the continuous safety and soundness of the banking industry. 

It is not all debtors, it is the bad and chronic debtors; those ones that have deliberately refused to pay; those are the ones we are talking about. Now, in the industry we have a standard, we don’t want the NPLs to be more than five per cent of the total loan in the industry. 

The total loan in the industry is in the region of N13tn to N15tn. Right now, we have not reached the upper limit of five per cent, but we don’t want to get there. That is why we decided that we need to come out with this measure. Currently, the industry average of non-performing loans is at 3.3 per cent and we don’t want to get to five per cent; that is why we came up with this measure.”

She said the CBN, in collaboration with the Bankers’ Committee, had laboured to keep the banking industry safe and sound, and that there was a need to ensure the continued safety of the banks.

…to slash debit cardholders’ spending overseas:

The Managing Director and Chief Executive Officer, Union Bank Plc, Mr. Emeka Emuwa, said the amount spent by naira debit cardholders overseas was rising fast and the banks were beginning to notice some arbitrate in the segment.

Consequently, the CBN and the Bankers’ Committee will slash the annual allowable drawdown for each bank customer, according to him.

The current annual allowable drawdown is $150,000 per customer but Emuwa did not specify the amount it would be slashed to.

He said:

“We did find that in a number of cases, people were using the cards in manners that were not expected of them and there have been some arbitraging going on. So, in order to sustain stability, what was agreed by the committee was that the limits for the use of the naira debit cards would be reduced. 

As a customer, if you have a dollar account, you will still have unfettered access to it; but for naira debit accounts, the limits will be reduced to more judicious levels. This specifically refers to the use of these banks’ products abroad, because when they are used abroad, the merchants have to be settled. 

Even if it is the Automated Teller Machines, the service provider, Visa or MasterCard has to be settled in foreign currencies and we find that it is a drain on the foreign resources available to finance our industries. So, there is going to be a reduction in the annual allowable drawdown using naira debit cards abroad.”

The Managing Director, Standard Chartered Bank Nigeria, Mrs. Bola Adesola, said the foreign exchange market was safe and sound, and was already moving towards a near convergence of rates in the various segments.

This, she said, was as a result of the positive actions taken in the past by the central bank and the committee.

“As you are all aware, in the last couple of months, several methods have been taken by the CBN and the banks to try and attain some stability in the foreign exchange market. This has been achieved because the demand for foreign currencies by businesses has been continually met. All genuine demands for foreign currencies have been met by the CBN,” Adesola said.

Dollar falls! Naira now N185 to $1

Wednesday, April 08, 2015

Bureau De Change operators in the country have attributed the fall in the Dollar to release of the foreign currency by hoarders who had stored it pending the outcome of the nation’s general elections.

A dollar over the weekend sold for N185 against the usual N220-N240 which it sold for in the last few weeks. Some of them however said the Dollar crash could also be attributed to the fact that politicians have stopped campaigning for elections, which has made the demand for the currency drop.

Bank owners disappear with customers' deposit in Kwara State

The victims | credits: Success Nwogu

Scores of people in Kwara State who claim to be customers of Ayonitemi Cooperative Business Finance, on Tuesday besieged the premises of the bank alleging that they had been defrauded by the firm.

The wonder bank is located at Oniyangi, near the Emir Road, Ilorin, the Kwara State capital.

Many of the customers, most of them weeping, told PUNCH Metro they had lost substantial amount of money which they deposited in the finance house. They stated that they had been promised mouth watering financial offers if they made deposit in the bank.

Many of them spoke on the condition of anonymity to avoid being made subject of mockery by 
people who might know them.

One of them said she received information to come on Tuesday to collect her money which she had been depositing in the bank for many months. She claimed to have invested about N1m in the bank without her husband’s knowledge and consent.

“I have been depositing money in the bank for some months. They promised that they will not disappoint us. They told us that they were from Kwara State and they had no other place to run to. So, I was convinced that this bank was real. I did not even inform my husband of my transactions with them. Unfortunately, they disappointed us and ran away.”

Some other victims claimed to have lost money ranging from N100,000 to N450,000. Some of them later descended on the office of the firm and carted away office furniture and items, including electronics.

Efforts to get the reaction of the officials of the bank proved abortive.

The Kwara State Police Public Relations Officer, Mr. Ajayi Okesanmi, said the command had not been briefed that about the alleged fraud by the bank.

MTN Nigeria launches N10 recharge card

Friday, November 07, 2014

Subscribers to the telecommunications service provider, MTN Nigeria will, as from Friday (today), have the opportunity to recharge their phones for as low as N10. The Chief Marketing Officer of MTN, Bayo Adekanmbi, revealed this in a statement on Thursday.

According to Adekambi, the initiative, to be launched in Kano, was to ensure that no Nigerian was shut out of the values that the network offers.

'Apart from making it possible for customers to purchase airtime at the lowest rates, it also offers opportunities for small scale entrepreneurs to sell low-unit portion packs of recharge cards as a new revenue stream. Again, everyday people such as Maishayi, neighbourhood stalls, housewives, students, etc would also benefit immensely from this proposition.'

Dana emerges as one of Nigeria’s top 50 brands

Thursday, October 23, 2014

Dana has been listed as one of the top 50 brands in Nigeria following its immense contribution to the nation’s economy. The emergence of Dana as one of the top 50 brands in Nigeria follows the outcome of the research findings and evaluation of notable brands by BrandNigeria Journal.

The coordinator of the Top 50 Brands in Nigeria, Mr. Taiwo Oluboyede noted that as Nigeria becomes a haven for foreign direct investment, there is need for verifiable information about the top players in the economy to be made available. He said that operating in the world stage requires a new line of thinking as well as means of communication and engagement and the Top 50 Brands in Nigeria has created a platform for companies to proactively engage their target market for feedback.

Samuel Ogbogoro, Head, Corporate Communications of Dana said that Dana is committed to service as all the activities of all the companies within the group are geared towards improving the well-being of the populace. “We are happy to be so recognized as one of the top brands in Nigeria and our strategy is to continuously reinvest in the economy”.

Dana Group a has diverse range of strategically positioned subsidiaries that give the group the flexibility and versatility to keep ahead of local competition. With interest spanning across different sectors of the economy such as automobile, steel, FMCG, pharmaceutical, aviation, as well as properties and shipping services; the group continues to contribute to the national economy as well as providing direct and indirect employment opportunities.

The unveiling of the Top 50 Brands attracted top industry players and representatives of the various brands.

Advertisement featuring woman's breasts causes 517 accidents in one day

Wednesday, October 15, 2014

An advertising campaign which makes use of a woman's breasts has caused more than 517 traffic accidents in one day. The massive adverts placed on the side of 30 trucks driving around Moscow shows a woman's breasts cupped in her hands with the slogan 'They Attract' across her nipples. This distracts and cause male drivers to ram into each other, resulting in a total of 517 accidents.

Euronews reports that the police sent out patrols to round up all the vehicles which featured the raunchy ad ,and impound them until the risque images could be removed.

Motorist Ildar Yuriev, 35, said: 

'I was on my way to a business meeting when I saw this truck with a huge photo of breasts on its side go by. Then I was hit by the car behind who said he had been distracted by the truck. It made me late and left my car in the garage, and although I am insured I am still out of pocket.'

Furious drivers across Moscow have reportedly bombarded the agency with compensation claims.

A spokesman for the Sarafan Advertising Agency, which organised the promotion said:

'We are planning to bring a new advertising format onto the market, encouraging companies to place their ads on the sides of trucks, as we thought this would be a good alternative to putting them on the sides of public transport. We wanted to draw attention to this new format with this campaign. In all cases of accidents, the car owners will receive compensation costs from us that aren’t covered by their insurance.'

Jesus Soap... wash away your sins

Wednesday, August 20, 2014

I stumbled on this this morning and decided to share. But which one is "...wash away your sin"? Some peeps might actually believe this and go on being adventurous.

What are your thoughts?

CBN reintroduces N65 other-bank ATM withdrawal charge

Thursday, August 14, 2014

Effective September 1, 2014, Nigerians would be charged N65 when they make cash withdrawals from an ATM from a bank other than theirs.

The Central Bank of Nigeria (CBN) yesterday, August 13, 2014 issued a directed that re-introduced the charge which had been abolished about two years ago.

A circular of the document titled: “Circular on the Introduction of Fees on Remote-on-Us ATM Withdrawal Transactions,” signed by the Director, Banking and Payment System Department, CBN, Mr. Dipo Fatokun, was posted on the regulator’s website yesterday.

The CBN in collaboration with the Bankers’ Committee had in December 2012 transferred the payment of N100 remote-on-us ATM cash withdrawal transactions to issuing banks. This fee used to be shared between the acquirers, issuers and switches.

However, on the commencement of the arrangement in December 2012, banks (issuers) decided to waive the issuer fee (N35), which should have ordinarily been an income to them. Consequently, banks only bore the cost of N65 each time their customers use another banks’ ATM.

However, the central bank explained that it took the latest decision as a result of the unintended consequences on banks. This, it said had resulted in substantial cost burden incurred by banks in defraying the cost for the service.

According to the CBN, the re-introduction of the fee was to cover the remuneration of the switches, ATM monitoring and fit-notes processing by acquiring banks.

“The new charge shall apply as from the fourth remote-on-us withdrawal (in a month) by a card holder, thereby making the first three remote-on-us transactions free for card holders, but to be paid for by the issuing bank.

“September 1, 2014 shall be the effective date for the implementation of the new fee,” it added. To this end, it urged banks to conduct adequate sensitisation of their customers on the policy.

“All ATM cash withdrawals on the ATM of issuing banks shall be at no cost to the cardholder,” it explained.

Meanwhile, in a separate circular on the review of the operation of the NIBSS Instant Payment (NIP) system and other electronic payment Options with similar features, the CBN expressed its preparedness to further strengthen the risk aversion measures put in place for the operations of the NIP system and other electronic payment options.

“The CBN has directed the categorisations of online transfer from low security to highly secured transfer with specified limits. Banks are expected to achieve “Highly Secured Online Funds Transfer” status within six months, that’s, with a deadline of December 2014.

“Limits of N1 million (instant value) and N10 million (next day value) shall be applied for NIP and other electronic payment options with similar features, initiated by individuals with effect from 18th August, 2015,” it stated.

Nigeria is a top investment destination for investors – US Secretary of Commerce

Friday, May 23, 2014

Ms. Penny Pritzker, the United States Secretary of Commerce has said that Nigeria now tops the list of the investment destination for American investors due to its unique positioning on the African continent. She said this at a bilateral meeting with the Minister of Industry, Trade and Investment, Olusegun Aganga, in Lagos yesterday. Some of the key US companies that had committed billions of dollars to the Nigerian economy are the global Fast Moving Consumer Goods (FCMG) company, Procter & Gamble, which recently opened a multi-billion naira factory in Agbara, Ogun State, as well as the world leading engineer company, GE, which is currently investing billions of Naira in an engineering factory in Cross River State. Aganga, speaking at the event yesterday, announced that Nigeria and the US had signed a $480 million power project to boost efficiency in the transmission and distribution of electricity in the country. Aganga explained that the partnership was a clear indication that the US was keen on playing a critical role in the nation’s National Industrial Revolution Plan (NIRP), stressing the need to increase investment flow into Nigeria from the world power. “We have agreed to partner US on a sectoral basis. To organise an investment forum in US where we would discuss areas of investment opportunities. Nigeria has been the first trading partner with the US in sub-Saharan Africa where we have supplied more than 12 per cent of their energy needs in terms of crude oil which accounted for more than 45 percent of our daily production,” he said. According to him, there is also the need for Nigeria to start moving away from just exporting its raw materials but developing and creating value in the oil and gas industry value chain. “Before now, oil export to the US was about $34 billion, but today, it has come down because America is planning to be self-sufficient in terms of energy, but we want to do top quality trade with America not just based on raw materials only,” he added. “We have had a productive meeting because this meeting marks the beginning of developing a stronger strategic partnership with the US,” the minister said. He stated that with the signing of the $480 million power project, he was convinced that the US was keen on partnering Nigeria to boost the nation’s power sector. He said as a result of this, the US Export Import bank had already allocated about $1.5 billion for American businesses interested in investing in Nigeria’s power sector. Pritzker, who led a delegation of about 25 US investors (mainly in the power sector) to Nigeria, commended President Goodluck Jonathan for initiating the NIRP, noting that American companies would leverage on it to invest in Africa’s biggest economy.

#AmericaWillKnow: Mr President may have gotten a trademark

Monday, May 05, 2014

Yesterday, May 4, 2014, the President of the Federal Republic of Nigeria engaged some journalists in a media chat. Questions were fielded and answers were given too, but what has 'thrilled' most is the answer given by Mr President on the reportedly missing $20bn oil money ("If you steal $20bn dollars, America will know and will tell you how you have moved the money because $20bn is a lot of money).

Since that response #AmericaWillKnow has been trending on social networking site, Twitter. But that's not the case...

We all know how industrious Nigerians are? Yes?

Soon #AmericaWillKnow T-shirts will hit stores near you!

KEROSENE SCARCITY: NLNG To Flood Markets With Cooking Gas.

Tuesday, April 15, 2014

ABUJA:  The management of Nigerian LNG Limited, NLNG, has expressed commitment to support Federal Government’sefforts to get more Nigerians to switch to cooking gas by making the product available for consumption.

The Managing Director, NLNG, Mr. Babs Omotowa, who disclosed this in Abuja, said the company is more determined to ameliorate the difficulties Nigerians were facing in accessing liquefied petroleum gas, LPG also known as cooking gas.

He said the use of cooking gas placed Nigerians at better advantages than the continued use of fire wood and kerosene, alternatives that have environmental and health disadvantages for citizens.

According to him, “In addition to ameliorating the difficulties Nigerians are having with LPG, NLNG commenced LPG distribution to the domestic market in 2007, and by that singular intervention brought down the price of cooking gas from N7,000 to N3,500 per 12.5 kg cylinder.

He added that, “we currently supply over 80 per cent of cooking gas, LPG, in Nigeria, and are increasing the volume to 250,000 metric tonnes per annum, MTA, representing 67 per cent increase. NLNG’s business has strong impact on key microeconomic variables and our contribution to the Goss Domestic Product, GDP rose to four percent in 2008.”

Omotowa pointed out that, “Nigeria’s strength is that with 187 trillion cubic feet, TCF, of proven gas reserves and 600TCF of unproven gas reserves, Nigeria has more than enough gas for both our domestic and export needs.

He noted that all our domestic power and petrochemical needs with all the expected exports from Brass LNG, OKLNG, come to less than 187tcf; yet we still have 600tcf unproven reserves.

“To further illustrate this, Australia with only 60% of our proven gas reserves, generate more than 40,000 megawatts power and is working to export 80,000mta, whereas all our three LNG plants will only come to 52,000mta with current plans,” he said.

Omotowa stressed further, “However, notwithstanding these historic achievements, we face significant challenges in the future, which we are already developing strategies to overcome. Internally, we face challenges of sustained feed gas supply as well as ageing plants and ships.

“Externally, the Shale Gas phenomenon and the expected start of mega LNG plants in Australia and East Africa, pose significant competition and threat to our business.

“As an insight into the extent of the threat, the huge unconventional shale gas discoveries in the USA, with over 100 years supply has led to the USA, who used to consume 10% of worldLNG, becoming an exporter.

“As a result, LNG price in the US, the Henry Hub, has fallen from $15/million British Thermal Unit, mmbtu, in 2005 to less than $4.50/mmbtu today. Along with Australia, East Africa, etc., these supply potential if all realised, may leave only a limited window of opportunity for LNG projects to remain robust. The challenge being that whilst demand may continue to grow, pricing is likely to become depressed due to supply slut.

“NLNG can stay profitable and continue to deliver excellent value to the country, if we are able to play the number game of volumes in the global market. Part of the next phase of our company’s strategic response to the growing competition is the addition of a seventh train.

“When achieved, this will enable NLNG to add some eight million metric tonnes to its current production capacity, and increase annual output to 30 million metric tonnes. This is potentially capable of monetising more of our gas, and yielding an estimated $3billion in additional revenues.

“More importantly, this will enable the creation of over 18,000 jobs during the construction phase, a deliverable that is in line with Mr President’s transformation agenda of creating jobs for the youths of the country.”

Source: Vanguard

Banks, Others Jittery Over Investments In Power Sector.

Monday, April 14, 2014

There are strong indications that banks and other financial institutions are worried over the possibility of not being able to recoup their investment in the power sector.

Indications to this emerged at the just-concluded Seventh Lagos Economic Summit, tagged Ehingbeti 2014, where some chief executives of financial institutions expressed concern over the  revenue profile of the power companies, especially the recently privatized electricity distribution companies (Discos).

Consequently, they called for an increase in the electricity tariff and price of gas to boost the income generating capacity of the companies.

Speaking at a session tagged, ‘Funding the power sector – creating banking projects/companies,’  the executives explained that increasing electricity tariff, as well as the price of gas, will improve the fortunes of the power companies and make it possible for more investors to stake their funds in the sector.

Members of the panel included Mr. Rossie Turman, Partner, Skadden, Arps, Slate, Meagher & Flom LLP; Mr. Idris Mohammed, Partner, Development Partners International; Mrs. Sola David-Borha, Chief Executive Officer, Stanbic Holdings, Mr. Ayo Gbeleyi, Commissioner for Finance, Lagos State and Mr. Akin Ogunranti, General Manager, Power and Infrastructure, Zenith Bank Plc. Mr. Batchi Baldeh, Senior Vice President, Power, African Finance Corporation was the lead speaker, while Mr. Solomon Adegbie-Quaynor, Country Manager, International Finance Corporation, IFC, was session chair.

David-Borha explained that the problems bedevilling the power sector will be addressed with appropriate pricing and tariffs. She noted that the distribution companies’ ability to pay back their indebtedness will improve as their ability to generate more cash improves.

She maintained that pricing is key in the power sector as it will help ensure that the numbers add up. She added that if the pricing issue is addressed, everything else will fall in place.

“If we really want more investors to come and invest in the power sector, it is necessary that they should be given the right incentives and opportunities. We have to encourage investors by putting more money on the table; by ensuring the right tariffs are in place,” she said.

Also speaking, Ogunranti called for an increase in the tariffs, noting that a number of investors are waiting on the sidelines and will not hesitate to come in and invest in the sector once the pricing issue is tackled.

He said, “Increasing the tariff will encourage more investors to put in more money. If we did do not get the tariff issue right, we will not see the rapid improvement we desire in the power sector.

Adegbie-Quaynor pointed to the fact that what the masses are paying via the use generators is very high.

He said the fact is that the masses are paying life cycle power costs of US$0.40 (N64) to $0.50 (N80) per kilo watt hour, with small petrol or diesel generators.

He said that this makes it critical for private investors, regulators and the government to come together and discuss key issues that can make the power reforms successful so that the ordinary man and woman do not have to pay such large amounts for power.

The key issues, he noted, include reliability and availability of gas, which will require investment in gas supply and a pipeline network; strengthening and expansion of the power transmission network; investment in the power discos to reduce the Aggregate Technical, Commercial and Collection (ATC&C) losses, that may be as high as 60 per cent in some discos; and rehabilitate and expand the generation companies (Gencos) and the Independent Power Projects (IPPs)”.

He noted that resolution of these key issues requires significant investment, management and technical skills, adding that government, regulators and the private sector need to come together and reach a solution that will lead to the necessary investments, and at the same time not be adversely impactful on the common man or woman.

Continuing, he said, “The World Bank’s position is that government, regulators and the private sector owners of power assets should come together, deliberate, and find a fair and balanced solution so that Nigeria has reliable and affordable power to fuel inclusive growth and economic development.

“IFC, World Bank and Multilateral Investment Guarantee Agency (MIGA) are committed to supporting government, regulators and the private sector in making the power reforms successful through the World Bank Group’s Energy Business Plan which aims to support financing and risk mitigation for the addition of at least 1,500MW of additional generating capacity in the next 12 to 18 months.

We would also, “Support capital expenditure financing in two to four distribution companies; support development, investment and financing of Public-Private Partnerships (PPPs) in both power transmission and gas pipeline networks; support development and financing of affordable renewable energy solutions through solar lanterns and cook stoves, amongst other products, to the common man and woman, and also off-grid solar solutions to Small and Medium Scale Enterprises and critical centres like hospitals and schools using photovoltaic technology.

However, in a separate session at the summit, Nigerian Labour Congress, NLC represented by its General Secretary, Mr. Issa Aremu, warned that until the problems in the sector are resolved, any attempt to bring about increase in electricity tariffs will be seen as criminal and will be sternly resisted.

He said that tariffs should be commensurate with service delivery. “It is stealing if you increase tariffs without improved service”, he said.

He said Nigerians are actually looking for improved service delivery as regards power supply and will actually like to see what they are paying for before tariff increase is considered.

He noted that the nature of the power sector reforms and how they are carried out are critical, and also wondered why the reform process is being rushed, especially when the operators are of the view that a lot still have to be put in place to drive the process.

In other panel sessions at the three-day summit, the issue of revamping the power sector in the country took the centre stage, while improving electricity supply to Lagos was also given adequate attention.

For instance, Mr. Charles Momoh, Chairman, West Power and Gas, owner of the Eko Distribution Company, emphasized the need to revamp the country’s power infrastructure, saying that the country is still using power infrastructure in operation since 1896.

He blamed the epileptic power situation across the country on the non-availability of gas and the reduction of power supply to the distribution companies.

Specifically, he said that the total gas available for Lagos State, cannot power more than 500 mega watts of electricity, adding  that  the company  is currently receiving less than 200 mega watts, down from the 400 mega watts  promised when it took over the assets.

Momoh further blamed the Transmission Company of Nigeria, TCN, for the “blinking” power situation, saying, “The TCN introduced frequency relays to protect their equipment, which is at the expense of consumers’ appliances, because this relay is responsible for the two minutes on and off power situation in Lagos.”

He noted that Eko Distribution Company currently have the capacity to deliver 700 mega watts of electricity, but it is currently receiving only about 240 mega watts.

He however noted that Eko Distribution Company has commenced the process of increasing power supply by about 500 mega watts, adding that  it is talking to 45 companies interested in embedded generation and two other companies for captive power.

On his own part, Mr. Sola Adeshina, Managing Director, Sahara Power, owner of the Ikeja Distribution Company, also noted that unavailability of gas and a non-cost reflective tariff structure is hampering the effective delivery of power to consumers.

In addition, Mrs. Funke Osibodu, Chief Executive Officer, Benin Electricity Distribution Company, said that operators are aware that Nigerians are fed up with the power situation and want a change.

She however noted that what is lacking is the fact that a vast majority of Nigerians do not have the information that the change that is expected will require more from every one.

According to her, fixing the problems in the power sector is a long haul and it will take a long time for operators to achieve their goals.

“Nigerians should be aware that infrastructure is not power. The government and some politicians will donate transformers to a community and they will think their power problems are over.

“We should know that transformer is not power. Power has to be generated first before the transformer and other equipment can distribute.”

In his own view, Mr. Anil Sardana, Managing Director, Tata Power, who spoke via live webcast from India, said the reforms in the Nigerian power sector will not succeed unless there is  direct support and oversight from the government.

He noted that financial prudence in the transition process is key, adding that emphasis should be placed on the change management process, as well as in the valuation of the business.

He said customer satisfaction should be the key goal for the reforms process, adding that the reforms should also focus on working to reduce the cost of distribution.