Business News Archives — Page 20 of 32 — Business Bells

Category: Business News

  • Imported Vehicles: NAJA Reveals How Nigeria Lost 50% Duties In 5 years

    Imported Vehicles: NAJA Reveals How Nigeria Lost 50% Duties In 5 years

     

    For five consecutive years, the federal government has lost half of its revenue accruing from duties paid on imported vehicles as 50 per cent of vehicles in Nigeria come in illegally through the closed borders and seaports without payment of duties to the government treasury,  investigations by the Nigeria Auto Journalists Association (NAJA) has revealed.

     

    The economic sabotage, which gained traction in the first quarter of 2016, when the land borders were shut by President Mohammadu Buhari regime, is perpetrated by either influential people/dealers who hand out signed documents to the Customs or bribe their way to clear the vehicles without due process.

     

    In connivance with unscrupulous government officials, some dealers are treated as sacred cows and they are quick to get away with anything at the ports.

     

    NAJA checks revealed that the illegal business does not stop at sea ports alone; similar dealings have been reported in major land borders across the country, including: Kpobe (Ogun State), Ijowu (Ogun State), Seme (Lagos State), Idiroko (Ogun State), Shaki (Oyo State), Daura (Katsina State), Baga (Borno State) etc.

     

    It would be recalled that the Nigeria Customs Service (NCS) had in September 2019 raided some top car marts in Lagos.

     

    The comptroller general’s Strike Force and officers attached to the Federal Operations Unit (FOU), Zone ‘A’, Ikeja stormed Berger along Apapa-Oshodi Express Road and other premises across the state.

     

    Many of them were closed on the orders of the CG Service, Col. Hameed Ali (rtd), for allegedly retailing smuggled vehicles in the shops.

     

    Major car dealers including Affordable Cars Limited, Carlink Limited, Ineh Mic Autos, Globe, Coscharis, Skymit, Arrowhead Motors, Wonder Wheels, Auto Point, among others were raided. Showrooms in other states, including, Sokoto, Katsina were equally affected.

     

    The second hand vehicles dealers were not spared as most of their showrooms were equally closed too due to reasons that have to do with documentation.

     

    Commenting, Remi Olaofe, the executive secretary, Nigeria Automotive Manufacturers Association, (NAMA) said “you can’t say there is no smuggling in Nigeria; our borders are porous and we have done everything we needed to do to improve it, by shutting down the borders, but they are still porous.

     

    Olaofe said it is a fallacy to say for every vehicle coming into the country, appropriate duties are being paid.

     

    Stating that NAMA has proffered solution to the menace, Olaofe said that with their portal and that of  the National Automotive Design and Development Council (NADDC, it will be 100 per cent impossible for anybody to import a vehicle and not properly register in Nigeria because the portal will indicate that the appropriate amount of money is not paid.

     

    “It is just as simple as that, but for the reason best known to the operators and the players in that market, they have refused to allow that portal to work”, he said.

     

    Advising that  vehicles must be registered for them to be driven on the road, Olaofe added that “You can’t be driving a vehicle that is not registered. To know this, they should go to the licensing office because the licensing office can not license a vehicle without first clarifying from the portal and that clears the vehicle. If that is not there, we have what is called the BIN number, will throw up a red flag”.

     

    Explaining further, Olaofe said “I don’t represent the (FBU) Fully-Built Vehicle, mine advocacy is for us to shut our doors against the FBUs. Assembling of vehicles in Nigeria is what I represent” .

     

    Confirming that the duty waiver for vehicles have been adjusted, but there is no difference in the rate of vehicles, the executive secretary said  “We are saying that it is not duty that is affecting the rate we are paying as transportation fare, but the factors are the cost of fuel, infrastructure, security on the road, wear and tear, replacement of these spare parts and the conditions of the vehicles. They bring a lot of junks into this country”.

     

    “Africa Bilateral Free Trade Agreement has taken off, where is Nigeria in the scheme of things? Assembly plants are now moved to Ghana, what do we stand to benefit? Toyota, Hyundai and co are being assembled in Ghana, are those for Ghana economy? They are for Nigeria economy”,  Olaofe added.

     

    Kunle Jaiyesimi, Deputy Managing Director, Massilia Motors, dealers of Mitsubishi brand of vehicles said most car dealers, including Masillia Motors are still selling their old stock and that his company had stocked up to December for the 2021 business.

     

    According to him, car market has really shrunk and that dealers have not really made major decisions in 2021 in terms of vehicle imports.

     

    Jaiyesimi said “to the assemblers, they are not happy with the Finance Act; it’s making the locally assembled vehicles uncompetitive compared to the Fully Built Units. For instance, Fuso and Canter (Mitsubishi) that we are assembling, it is cheaper to bring them in as FBU than locally assembling them. And that has affected our production lines.

     

    Jaiyesimi who is also the Chairman, Auto Group of the LCCI proffered solutions, saying that “the only way for us have some gain on the assembly line is for govt to remove the import duty or reduce it. If they cannot remove it, they can bring it down to five per cent” .

     

    The DMD said that, for now, they are charging 40 per cent (35 per cent import duty and five per cent for levy) on passenger cars for FBU; 10 per cent on (Semi Knocked Down (SKD) and 10 per cent on FBU buses.

     

    He argued that whatever duty reduction the government has put in place for them to enjoy is being wiped off by the exchange rate fluctuations,stressing that the CBN is not supporting vehicle importers at SKD or FBU level.

     

    Rather, he informed that stakeholders rely on the black market to pay their suppliers.

     

    ” Once you are getting your FX from the black market, whatever gain that is coming from the import duty reduction is lost in the over 25 per cent increase in the FX rate”, Jaiyesimi added.

     

    Further investigations however, show that both new vehicle dealers and second hand vehicles merchants are deeply involved in this business of short-changing the government.

     

    A key member of the United Bergers Motor Dealer Association (UBMDA), Chike Ejogu who spoke to this paper, said that dealers evade Apapa ports because of the high duties paid to clear the vehicles there.

     

    According to him, that is the major reason why dealers resort to smuggle in vehicles at cheap rates,in order to make big gains.

     

    Ejiogu said “the whole thing worsened in early 2016 when the land borders were closed. Before the closure we used to pay N74, 000 and N96, 000 for small cars while we were paying about N170, 000″ for big vehicles like SUVs”.

     

    Ejiogu revealed that about 5,000 vehicles are smuggled through the Idiroko land border every month.

     

    Chairman, Allen B Motors Nig Limited, Lawal Azeez told NAJA that car smuggling has caused the government a fortune.

     

    According to the auto dealer, reduction of duties paid to the government will help to discourage smugglers from their illegal operation.

     

    Meanwhile, efforts made to get statistics of imported vehicles from various auto companies proved abortive.

     

    Figures from Kia were not available as of the time of filing this report. Although, Coscharis was also approached for the statistics but the auto firm is yet to respond as at the time of filing this report.

     

    The story is basically the same at West Star Associates Nigeria Limited, sole distributor of Mercedes-Benz vehicles in Nigeria. 

     

    While different regions of the world make available sales statistics on a regular basis, Mercedes-Benz representatives in Nigeria always turn down request for sales statistics. 

     

    When contacted, a source promised to make necessary contacts within the company and get back. The source did not get back as at press time at the weekend. 

     

    However, for the first quarter of 2021, despite the challenges associated with Covid-19, Mercedes-Benz Cars sold 590,999 passenger cars across the world driven by China and United States  retail sales as well as strong demand for plug-in hybrids and all-electric vehicles

     

    One of the implications of vehicle smuggling or duty evasion, NAJA checks revealed is that the vehicles of these illegal auto dealers are sold easily at cheap prices because they never pay the right duty to get them into the country. Consequently, the genuine dealers are left to suffer the outcome as they cannot sell vehicles lower than the actual cost of bringing them to the showrooms.

  • Onion Marketers Stop Supply to Entire South From Monday Over N4.5bn Loss

    Onion Marketers Stop Supply to Entire South From Monday Over N4.5bn Loss

     

    The Association of Onions Producers, Processors and Marketers of Nigeria (OPMAN), has threatened to stop the supplying of Onion to the entire Southern part of Nigeria unless certain conditions laid down by the association is met.

     

    The association disclosed that about N4.5 billion worth of Onions and properties were destroyed by suspected hoodlums across the Southern States in the last few months in addition to loss of lives of members of the association without any compensation.

     

    The National President of the association, Alhaji Aliyu Isa, disclosed this while addressing newsmen after the emergency meeting of the association held in his office in Sokoto.

     

    He called on State Governors to urgently collaborate with the federal government to set up a committee to look into the root causes of the numerous attacks on  members of the association, or face total consequences.

     

    “Reference to the national executive meeting held today, we are here to report to the members of the public that following the incident that happened in Aba, Abia State, Shasa in Oyo State and Mbaise local government area of Imo State respectively which results to the loss of; in Aba, three members, destruction of about 30 trailers and 9 unitily cars, 50 stores and 10,000 bags of Onions including other valuables.

     

    “During the last #EndSARS protests, other people were compensated leaving out our members. And In Shaha where we lost 27 lives, 5 trailers, 5,600 bag of Onions, 12 utility cars and other valuables.

     

    “Also, in February, this year, in Imo State, two trucks of Onions were lost worth about N13,000,000. The above problems resulted to our earlier action to suspend the supply of foodstuffs to the Southern States in February through our parent union.

     

    “After full deliberation by the executive of members of this association and the failure of government to respond to our cry, we have thereby reached these decisions.

     

    “We are calling on the state and federal government to restore law and order in the state. We also called on the good people of the Southern part of Nigeria to live with the Hausa community in peace, as we are only their for our lawful businesses.

     

    “We also called on state government to collaborate with federal government to set up a committee to investigate the incident that leads to the loss of lives and properties of our members.”

     

    He however said if the government failed to adhere to the demands of the association, “we are shutting down the supply of Onions to the entire South by Monday, June 7, 2021.

     

    “There will be no truck that will off-load Onions by 12midnight of Friday 11th June, 2021,” he added. 

  • Telcos Finally Block Twitter Following FG’s Order

    Telcos Finally Block Twitter Following FG’s Order

     

    Telecoms operators in Nigeria have blocked Twitter in Nigeria, a day after the Federal government announced its indefinite suspension.

     

    Twitter users in the country woke up on Saturday unable to access the microblogging websites while some navigated the hurdle using Virtual Private Networks (VPN).

     

    The Association of Licensed Telecommunication Operators of Nigeria (ALTON), an industry group, confirmed it had received directives from the Nigerian Communications Commission (NCC), the industry regulator, to suspend access to Twitter.

     

    The President of ALTON, Gbenga Adebayo, made this known in a statement on Saturday.

     

    Mr Adebayo noted that the association wished to confirm that its members had received formal instructions from NCC, the industry regulator, to suspend access to Twitter.

     

    “ALTON has also conducted a robust assessment of the request in accordance with internationally accepted principles.

     

    “Based on national interest provisions in the Nigerian Communications Act, 2003, and within the licence terms under which the industry operates; our members have acted in compliance with the directives of NCC, the industry regulator.

     

    “We will continue to engage all relevant authorities and stakeholders and will act as may be further directed by the NCC, ” Mr Adebayo said.

     

    He said the association remains committed to supporting the government of the Federal Republic of Nigeria and upholding the rights of citizens.

     

    He, however, said as an industry, ALTON endorsed the position of the United Nations that the rights held by people offline must also be protected online.

     

    He noted that this included respecting and protecting the rights of all people to communicate, to share information freely and responsibly, and to enjoy privacy and security regarding their data and their use of digital communications.

     

     

    Civil War Tweet

     

    The Federal Government of Nigeria on Friday announced the indefinite suspension of Twitter in the country.

     

    The Minister of Information and Culture, Alhaji Lai Mohammed,

    announced the suspension in a statement issued by his office in Abuja.

     

    He cited the persistent use of the platform for activities that are “capable of undermining Nigeria’s corporate existence.”

     

    The Federal Government has also directed the National Broadcasting Commission (NBC) to immediately commence the process of licensing all OTT and social media operations in Nigeria.

     

    The government had announced the suspension barely 48 hours after the microblogging site deleted a post by Mr Buhari referencing the country’s civil war, and threatening to treat those attacking government buildings “with the language they understand.”

     

    His comments received condemnation from Nigerians.

     

     

     

    -‘Repressive action’ –

     

    Amnesty International on Friday condemned the move, calling on Nigeria to “immediately reverse the unlawful suspension”.

     

    “This repressive action is a clear attempt to censor dissent & stifle the civic space,” Human Rights Watch researcher Anietie Ewang said.

     

    Twitter said that the move was “deeply concerning”.

     

    “We’re investigating and will provide updates when we know more,” the company said in a statement.

     

    The UK’s deputy high commissioner in Nigeria, Gill Atkinson in reaction to the suspension said “any action taken by government must be measured, proportionate and not suppress basic freedoms.”

     

    Nigeria in 2019 had announced it would tighten regulations on social media to fight fake news and disinformation, sparking concerns over freedom of expression.

     

    Several countries including China and Turkey have come under fire for putting restrictions on social media platforms such as Twitter.

     

    In February Twitter condemned Myanmar for blocking access to its platform as part of a crackdown on social media, days after a coup that saw Aung San Suu Kyi and other civilian leaders jailed.

     

  • BREAKING: FG Suspends Twitter’s Operations In Nigeria

    BREAKING: FG Suspends Twitter’s Operations In Nigeria

     

    The Federal Government has suspended, indefinitely, the operations of the microblogging and social networking service, Twitter, in Nigeria.

     

    The Minister of Information and Culture, Alhaji Lai Mohammed, announced the suspension in a statement issued in Abuja on Friday, by Segun Adeyemi, the Special Assistant To The President (Media), Office of the Minister of Information and Culture.

     

    The FG claims the suspension was due to “the persistent use of the platform for activities that are capable of undermining Nigeria’s corporate existence.”

     

    The Minister said the Federal Government has also directed the National Broadcasting Commission (NBC) to immediately commence the process of licensing all OTT and social media operations in Nigeria.

     

  • BDC Operators Move To Crash Exchange Rate, Ban Street Hawking of Dollars

    BDC Operators Move To Crash Exchange Rate, Ban Street Hawking of Dollars

     

    Forex traders under the aegis of the Association of Bureau De Change Operators of Nigeria (ABCON) have said they will start what it called ‘Operation No Street Trading’ to stop the hawking of foreign exchange by BDC operators.

     

    This is part of the measures aimed at bringing down the exchange rate which has been on the rise recently especially after the adoption of the NAFEX rate as the new official rate by the Central Bank of Nigeria.

     

    This disclosure was made by the President of ABCON, Alhaji Aminu Gwadabe, who said that this was part of the resolutions made unanimously by BDC directors at the meeting of the operators on Tuesday, June 2, 2021, in Lagos.

     

    ABCON, in the resolution, told BDCs to improve on their return rendition to regulatory authorities, warning that defaulting members would be punished.

     

    The resolution from ABCON partly reads, “All operators are to collaborate in bringing down the forex rates in the market; street trading by BDC should be discouraged/banned and ABCON will commence operation ‘no street trading’.

     

    BDCs should improve return rendition to regulatory authorities; margin review to meet operational requirements; widening the scope of transactions; digitalisation of BDC operations.

     

    ABCON to punish errant members; ABCON compliance officer and staff to commence nationwide supervision of BDC operations.”

     

    Despite the sales of forex at N393 to a dollar to BDCs by the CBN, the exchange rate has been on the rise since the adoption of the NAFEX rate as the official rate by the CBN with the dollar selling for N499 on Thursday afternoon.

     

    ABCON had in a statement on Sunday, advised foreign exchange users and the general public to patronise only BDC operators licensed by the CBN in order to get dollars at the approved rate.

     

    Gwadabe said the parallel market activities had for years become major drivers of the exchange rates, adding that control over such transactions had become burdensome.

     

    He said forex speculators were capitalising on the state of the forex market and the naira to sell dollars above the CBN-approved margin.

     

    ABCON had some days ago, said that foreign exchange speculators are set to lose over N100 billion in the next one month as the CBN sustains massive funding for Bureau De Change (BDC) operators.

     

    The ABCON President called for the return of normalcy of the market as the ongoing speculative behaviour was hampering the market operations.

     

    The ABCON boss linked the continued fall of the naira at the parallel market and Investors’ and Exporters’ (I&E) Forex window to currency speculators who are hoarding dollars to profit from the currency crisis.

     

    He said the perpetrators are creating an artificial scarcity of the greenback within the market to cause more woes for the local currency.

  • Sanwo-Olu Lauds Elumelu As Heirs Holdings Launches Two Insurance Firms

    Sanwo-Olu Lauds Elumelu As Heirs Holdings Launches Two Insurance Firms

    By Adejuwon Osunnuyi

     

    The Lagos State Governor, Babajide Sanwo-Olu, and the Commissioner for Insurance, Mr Sunday Thomas, inaugurated on Tuesday Heirs Holdings’ new insurance businesses – Heirs Insurance and Heirs Life Assurance.

     

    Heirs Towers, a seven-storey headquarters of Heirs Holdings developed by Afriland Properties Plc, one of the investment companies of Heirs Holdings, was also unveiled at the inauguration ceremony.

     

    Sanwo-Olu commended the pan-African investment company for its bold vision to democratise access to insurance.

     

    The Chairman, Heirs Holdings, Tony Elumelu, introduced Dr Adaobi Nwakuche as the Managing Director/Chief Executive Officer of Heirs Insurance Limited, and Mr Niyi Onifade as the MD/CEO of Heirs Life Assurance Limited.

     

    Heirs Insurance and Heirs Life Assurance have a paid-up share capital of N10bn and N8bn respectively, and are backed by leading reinsurers, providing a second layer of security for clients’ insurance portfolios, according to Elumelu.

     

    Sanwo-Olu said, “Heirs Insurance and Heirs Life are bringing insurance that is simple, accessible, and affordable – three strong words that businesses of today need to thrive in highly saturated markets.

     

     “I am aware that both Heirs Life and Heirs Insurance are two of the most liquid and well-capitalised insurance companies in the country right now.”

     

    He said the timing of the launch could not have been more auspicious, adding, “The insurance commission is currently rolling out different initiatives for national development.

     

    “To Heirs Insurance and Heirs Life, I want to say thank you for coming into our industry, making a difference, impacting the economy, and helping us to deepen the insurance sector in Nigeria.”

  • Ministry of Environment Lauds Nigerian Breweries Over 663.6kWp Solar Power Plant

    Ministry of Environment Lauds Nigerian Breweries Over 663.6kWp Solar Power Plant

     

    The Federal Government through the Ministry of Environment has commended Nigerian Breweries Plc following the successful launch of a world class 663.6 kWp Solar Power Plant for its Ibadan brewery operation which is aimed at ensuring a greener, cleaner and more sustainable environment in Oyo State and Nigeria.

     

    The Minister of Environment, Mr. Muhammad Mahmood who was represented by the Director General, Forestry Research Institute of Nigeria, Prof.Adeshola Adepoju gave the commendation in a goodwill message at the formal commissioning ceremony of the Solar Power Plant held on May 20.

     

    Mahmood described the initative as an important milestone in tackling the challenges of climate change and environmental sustainability in the country.

     

    “This admirable initiative will significantly contribute to effectively tackling climate change, while enhancing energy security. It will also help in creating jobs, reducing industrial carbon footprint, transiting to a low carbon resilient economy as well as making our economies more resilient to future energy crisis. It will also ensure a balance between development, economic, social and environmental sustainability for present and future generations”, he added.

     

    Speaking earlier at the official commissioning, Executive Governor of Oyo State, Engineer Oluseyi Makinde commended the management of Nigerian Breweries Plc for investing in a solar plant that would promote environmental sustainability, stating that his administration would continue to play its part by supporting businesses domiciled in the state to grow.

     

    “This is another first in Oyo State. When history will be written on how NB Plc shifted from electricity to renewable energy, it would be said that Ibadan Plant was the first and as a government, we are very proud to be part of this story”, he added.

     

    In her own remarks, the Minister of State for Environment, Mrs. Sharon Ikeazor equally applauded the company on the groundbreaking project describing it as a significant landmark for renewable energy access/utilization for manufacturing businesses in Nigeria.

     

    Ikeazor noted that it was heartwarming to note that the company is already taking ambitious steps to transition a greater percentage of its electricity usage to renewable energy, stating that not only would such action save the planet but it would also help to create employment opportunities for the youth.

     

    “All hands must be on deck to accelerate action that would reduce carbon emission and protect the environment. Today, NB Plc is taking a very bold and ambitious step in the right direction with this Solar Power commissioning and the overall plan to transition 70% of electricity use in its brewery production to renewable energy. This is a win-win plan as it not only supports climate change mitigation through reduced carbon emission but it would also help the company save money in the long run. This is in addition to the new jobs and opportunities this creates for our teeming youth in Nigeria”, she added.

     

    She stated that the FG would continue to take required steps to ensure that a business-led climate intervention such as that of Nigerian Breweries is showcased as shining example for others to follow.

     

    She urged the company to continue on this path by ensuring that it is replicated in other regions where its plants are located.

     

    Delivering his welcome remarks, the Chairman of Nigerian Breweries Plc, Chief (Dr) Kolawole Jamodu (CFR) extolled the governor for his efforts in positioning the state as an investment destination and creating a conducive environment for constructing the 663.6kwp Solar Power Plant. He expressed his delight at the project completion, describing it as a demonstration of NB’s commitment to environmental sustainability.

     

    Delivering his keynote speech, the Managing Director, Nigerian Breweries Plc, Mr. Jordi Borrut Bel described the project as a first of its kind in the manufacturing sector as Nigerian Breweries is the first brewer in Nigeria to commission a solar power plant providing renewable, clean energy for manufacturing.

     

    Bel disclosed that in addition to this solar plant in Ibadan, the company is already developing other renewable energy plants in its other breweries to ensure that 70% of electricity used in all of its breweries are powered from clean sources.

    “We are not only interested in being Number 1 in Sales and profitability. We also want to be number 1 in environmental sustainability – ensuring that the communities where our breweries are located benefit from our operations in the best possible way” he said.

     

    “Apart from developing renewable energies to ensure cleaner air, we are also investing heavily in ensuring cleaner water for our communities.  As such, we have taken great pains to build a state of the art, waste water treatment plant in our breweries to ensure that we do not cause water pollution. All wastewater produced from the brewery are properly treated and monitored in line with regulatory requirements before they are discharged, making them safe and not harmful to aquatic life and the environment in general”, he added.

     

    He disclosed that the plant which was built at the cost of over N300 million, is  part of NB Plc’s Brew A Better World sustainability agenda, which is aimed at meeting the company’s carbon neutrality targets through increased energy efficiency in its production.

     

    He further revealed that the solar plant was built through a fully financed solar Power Purchase Agreement (PPA) executed with Crossboundary Energy Limited.

     

     It is expected to supply approximately 800 MWh to the brewery annually, providing a significant reduction to the current cost of power, while also reducing the plant’s CO2 emissions by over 10,000 tonnes over the lifespan of the plant.

  • It’s Automatic, Subscribers NOT Required To Submit IMEI— NCC

    It’s Automatic, Subscribers NOT Required To Submit IMEI— NCC

     

    The Nigerian Communications Commission (NCC) has clarified reports that mobile subscribers will be required to submit the international mobile equipment identity (IMEI) of their phones to it from July 2021.

     

    The IMEI is an identity number used to uniquely identify a mobile phone. The 15-digit IMEI number is an electronic fingerprint transmitted every time a phone is used, which reveals the identity of the mobile handset.

     

    Earlier reports had said the directive is to be implemented within three months, as contained in the revised national identity policy for SIM card registration which was released on May 11, 2021.

     

    In December, the NCC had directed Nigerians to get a national identity number and submit to their network operators.

     

    It recently extended the national identification number (NIN) and subscriber identity module (SIM) integration exercise till June 30.

     

    Reacting to the reports, Ikechukwu Adinde, NCC’s director of public affairs, said at no time did the commission issue a statement regarding the registration of IMEI by subscribers and it has no plans to do so.

     

    “The reports in question have emanated from a section of the Revised National Identity Policy for SIM Card Registration recently launched by President Muhammadu Buhari and which has been uploaded on the Commission’s website,” the statement read

    “It is pertinent to state that the Commission is in the process of deploying a Device Management System (DMS). The DMS will essentially protect subscribers against phone theft and will identify and enable the elimination of fake devices from the networks. The system will capture IMEI automatically without any requirement for subscribers to submit same.”

     

    Adinde advised the general public to disregard the publications which have created the impression that telephone subscribers will be required to register their IMEI with their networks.

  • Nigerian Breweries Inaugurates 663.6 Kwp Solar Plant In Ibadan Brewery, Redefines Sustainability In Manufacturing

    Nigerian Breweries Inaugurates 663.6 Kwp Solar Plant In Ibadan Brewery, Redefines Sustainability In Manufacturing

     

    Nigeria’s foremost brewer, Nigerian Breweries Plc has delivered another first in the manufacturing sector of the Nigerian economy by pioneering solar powered manufacturing with the commissioning of a Solar Plant at the Ibadan Brewery.

     

    The 663.6 kilowatts per peak (kWp) solar plant was formally commissioned on Thursday, May 20,2021 by the Executive Governor of Oyo State, Engineer Oluseyi  Makinde.

     

     Speaking during the official commissioning ceremony, Governor Makinde commended the management of Nigerian Breweries Plc for investing in a solar plant which he noted would promote environmental sustainability, stating that his administration would continue to play its part by creating an environment that supports businesses in the state to grow.

     

    Makinde also lauded the commitment of the company towards achieving its very ambitious target of switching to 70% renewable energy usage by 2030 stating that the completion of the Ibadan Solar Power Plant has clearly demonstrated its determination to reach the goal.

     

    “This is another first in Oyo State. When history will be written how NB Plc shifted from electricity to renewable energy, it would be said that Ibadan Plant was the first and as a government ,we are very proud to be part of this story”, he added.

     

    In his welcome remarks, the Chairman of Nigerian Breweries Plc, Chief (Dr) Kolawole Jamodu (CFR) extoled the governor for his efforts in positioning the state as an investment destination and creating a conducive environment for businesses to thrive which had encouraged the company to site the pilot of its solar power project in Ibadan.

    L-R: Managing Director/CEO, Nigerian Breweries Plc, Mr. Jordi Borrut Bel; the Chairman, Nigerian Breweries Plc, Chief Dr. Kolawole Jamodu CFR; the Executive Governor of Oyo state, His Excellency, Engineer Oluseyi Makinde; Corporate Affairs Director, Nigerian Breweries Plc, Sade Morgan and the director general, Forest Institute of Nigeria Ibadan, Prof. Adeshola Adepoju at the official commissioning of the 663.6KWP Solar Power Plant of the Nigerian Breweries Plc, Ibadan Brewery held in Ibadan on Thursday.

    Jamodu expressed his delight at the project completion, describing it as a demonstration of NB’s commitment to environmental sustainability.

     

    Delivering his keynote speech, the Managing Director, Nigerian Breweries Plc, Mr. Jordi Borrut Bel described the project as a first of its kind in the manufacturing sector as Nigerian Breweries is the first brewer in Nigeria to commission a solar power plant providing renewable, clean energy for manufacturing.

     

    Bel disclosed that in addition to this solar plant in Ibadan, the company is already developing other renewable energy plants in its other breweries to ensure that 70% of electricity used in all of its breweries are powered from clean sources.

     

    “We are not only interested in being Number 1 in Sales and profitability. We also want to be number 1 in environmental sustainability – ensuring that the communities where our breweries are located benefit from our operations in the best possible way” he said.

    Governor Makinde being conducted round the facility by NB officials

    “Apart from developing renewable energies to ensure cleaner air, we are also investing heavily in ensuring cleaner water for our communities. As such, we have taken great pains to build a state of the art, waste water treatment plant in our breweries to ensure that we do not cause water pollution. All wastewater produced from the brewery are properly treated and monitored in line with regulatory requirements before they are discharged, making them safe and not harmful to acquatic life and the environment in general”, he added.

     

    He disclosed that the plant which was built at the cost of over N300 million, is part of NB Plc’s Brew A Better World sustainability agenda, which is aimed at meeting the company’s carbon neutrality targets through increased energy efficiency in its production.

     

    He further revealed that the solar plant was built through a fully financed solar Power Purchase Agreement (PPA) executed with Crossboundary Energy Limited. It is expected to supply approximately 800 MWh to the brewery annually, providing a significant reduction to the current cost of power, while also reducing the plant’s CO2 emissions by over 10,000 tonnes over the lifespan of the plant.

     

  • Suspend June Electricity Tariff Hike, National Assembly Tells NERC

    Suspend June Electricity Tariff Hike, National Assembly Tells NERC

     

    The House of Representatives has asked the Nigerian Electricity Regulatory Commission to suspend the plan to review electricity tariff in June.

     

    It also condemned electricity distribution companies for transferring debts incurred by former occupants of building to the new occupants or tenants.

     

    At the plenary on Thursday, the House adopted a motion moved by Aniekan Umanah titled: ‘Call on the Nigerian Electricity Regulatory Commission to Suspend the Proposed Increase in Electricity Tariff’.

     

    Following the adoption of the motion, the House urged the Federal Government to direct NERC to “rescind the decision to further increase electricity tariff proposed for June 2021 in view of the hard times Nigerian masses are currently going through.”

     

    The House further mandated its committees on Power, Poverty Alleviation, and Labour, Employment and Productivity to ensure compliance with the resolution.

     

    Umanah, while moving the motion, noted that the Electric Power Sector Act of 2005 established the NERC with a mandate to license Discos, determine the operating codes and standards, establish customer rights and obligations and set cost-reflective industry tariffs.

     

    The lawmaker also noted that the Act prescribed its funding from 15 per cent of electricity charges paid by customers to the Discos.

     

    He recalled that the NERC, working with the Discos, had increased electricity tariffs five times since 2015, the latest being on January 1, 2021.

     

    Umanah said, “The House is aware that despite those increases, Nigerians have not enjoyed significant improvement in power generation, instead they daily grapple with epileptic services from the Discos and unilateral exploitation in the name of estimated billing arising from non-metering of over 50 per cent of consumers.

     

     “The House observes that poor services by the Discos have impacted negatively on the socio-economic growth of the country as the International Monetary Fund Report of 2020 on Nigeria indicated that the manufacturing sector lost over $200bn to inadequate power supply, while $21bn was said to have been spent by Nigerians on generators within the period under review.

     

    “The House further observes that the Nigerian masses have gone through so much hardship in recent times arising from acts of terrorism, banditry, kidnappings, and farmers herdsmen’s crisis with its toll on agricultural activities, displacement from ancestral homes, loss of loved ones, starvation arising from inability to return to daily occupation and loss of personal properties running into several million of naira.”

     

    The lawmaker added, “The House is concerned that at a time governments all over the world are adopting measures to cushion the devastating effects of the dreaded COVID-19 pandemic on their citizens by providing a wide range of palliatives to losses of loved ones, jobs, businesses and general distortion in the social life, NERC is tinkering with the idea of a further increase in electricity tariff after that of 1 January, 2021, in a country where two-thirds of the 200 million population is grappling with the crippling effects of the pandemic.”

     

    The House also unanimously adopted a motion by Olatunji Shoyinka titled: ‘Need to Investigate Transferred Debts Incurred by Old Electricity Customers to New Users by Distribution Companies in Nigeria’.

     

    The lawmakers consequently resolved to mandate the House Committee on Power to “engage the distribution companies and other relevant regulatory agencies to find a lasting solution and report within four weeks.”