Connect with us

Business

New Electricity Tariff Increase Justifiable – IBEDC

Published

on

 

The Chief Operating Officer, Ibadan Electricity Distribution Company (IBEDC), Engr. John Ayodele has affirmed that the recent increase in the electricity tariff was justifiable, bearing in mind the refusal of most of their customers to pay their outstanding bills.

He made the disclosure, weekend, during an interview with newsmen in Ibadan, Oyo State capital, following the displeasure that greeted the announcement of increase in the electricity tariff by Nigerians.
Engr. Ayodele further stated that the electricity company has ran into about N3.5 billion market shortfall, adding that they also recorded N27 billion shortfall this year.
He said: “DISCOS are unable to recover money, they are unable to settle their debts, so that was compounding the problem of the sector.”
“As we speak today, we are trying to readjust. What is tariff shortfall, what is market short fall? Market shortfall is money that we are billed but we cannot pay. For example today, almost every month, we run into almost about 3 to 3.5 billion market short fall.”
“In fact this year’s own is almost 27 billion, for this year alone, so you can imagine by the time we get to December, we are talking about 30,35 billion as short fall.”
“When you look at those market shortfalls over the time, as at December last year 2019, we were in short fall of 243 billion is what this industry is owing the sector. So 243 billion naira debt.”
“Can I take that one to the bank to seek for investment fund? If you can’t borrow money, you cannot find money to invest.”
“On the other side of it is the tariff shortfall, for government not allowing us to charge the adequate tariff. That one is another huge amount of money.”
“So government can no longer take responsibility for that short fall and government has made it very clear there’s no way they can continue to sponsor that pay. That is the reason for the increase.”
“At this point in time, government has taken a decision and we are about to abide by the decision. That is why we are where we are,” Engr. Ayodele stated.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Petroleum: DPR Promise To Sustain Uninterrupted Product Supply 

Published

on

By

The Bauchi office of the Department of Petroleum Resources (DPR) says it will continue to ensure the availability of petroleum products across the 500 existing filling stations in the state.Malam Abdullahi Isyaku, the Operation’s Controller of the agency made this known in an interview with the News Agency of Nigeria (NAN) in Bauchi on Monday.

Isyaku said the department would continue to closely monitor filling stations, especially on the implementation of safety measures by retail outlets.

He added that it would constantly ensure that outlets adhere to the official pump price of the commodity.

“We are determined and committed to sanctioning erring outlets found to be shortchanging consumers,’’ he said.

Isyaku said that the regulatory agency was fully committed to assisting interested marketers who want to venture into dealing with Liquefied Gas LPG in accordance with the Federal Government policy on Domestic Gas Utilisation.

According to him, the department has intensified efforts on routine surveillance of all existing retail outlets.

This is with a view to ensuring compliance with operational guidelines.

“We will not compromise standards,’’ He said.

The controller called on all registered marketers to key into the newly introduced operational monitoring tool called ‘Down Stream Remote Monitoring System’ (DRMS).

NAN reports that DRMS was recently launched by the national office of the department.

According to Isyaku, the device will assist DPR in online routine monitoring of stock positions of the products at both depots and retail outlets.

It will also help marketers to monitor activities in their filling stations.

Continue Reading

Business

Leadway Assurance Charges Nigerians To Embrace Cyber Insurance

Published

on

By

 

Leadway Assurance Company Limited has charged corporate entities, institutions, religious organisations and individuals to embrace cyber insurance to protect their database and computer networks from attacks by hackers.

With increased online and internet connectivity becoming part of our day to day business, as a result of COVID-19 pandemic, there is need for protection against cyber attacks, Mr. Uzodinma Ibe of the Casualty & Liability Underwriting, General Insurance, said.

He spoke at a virtual training workshop on “Understanding Cyber Insurance” organised by Leadway Assurance for insurance journalists recently.

Ibe said a comprehensive report by a United Kingdom (UK) cybersecurity company, confirmed that there was high traffic when it comes to information, transactions and data emanating from Nigeria into digital space, adding that the survey noted that 36 percent of Nigerian organisations suffered cyber attacks in the last 12 months.

He also stated that 64 percent of cyber attacks in Nigeria exploited misconfigurations on the organisation servers, pointing out that Nigeria has the highest data leakage in the world.

On business activities, social networking and governmental activities, he said the report has also identified where Nigeria as a digital hub is and to what extent are their cyber exposures.

In order to avoid cyber attacks on our computer networks, which sometimes resulted into data and financial losses, there is a need for enterprises, individuals, corporate organisations, to see it as a serious business and take up some form of cyber mitigating efforts in this regard.

According to him, “Here in Leadway, through our research, we have been able to identify a particular area of cyber exposure where corporate entities can find themselves and see how we can do proper risk management and provide specific insurance product that can help them mitigate such exposures through Cyber Risk Management Insurance which in some quarters called Cyber Liability Insurance and in some, Cyber Risk Management Insurance.

“We have been able to highlight that technology, social media and transactions over the internet (cyber platforms) play a key role in how most organisations conduct business and reach out to prospective customers today. These vehicles have gateways – platforms, integrations that cyber attackers often use.

From Leadway point of view, our Cyber Enterprise Risk Management Insurance Policies try to help any organisation mitigate risk exposure for a certain cost expenses involve with recovery after a cyber-related security breach or similar event.

On who is being indemnified or who is being provided cover, he explained that Leadway Cyber Insurance provides first-party coverage and third-party liability risk covers against cyber-attacks for organisations.

“First party which is the policyholder, the individual or that corporate entity that buys the insurance, such policy caters for private investigation expenses where there is some form of data compromise or breach to reach out to different customers to inform them of the breach.

“Third-party liability coverage indemnify companies for losses to others caused, for example, by errors and omissions, failure to safeguard data, or defamation; and other benefits including regular security-audit, post-incident public relations and investigative expenses, and criminal reward funds.

“Risks of this nature are typically excluded from traditional commercial general liability policies or at least are not specifically defined in traditional insurance products. Most people believe that only large-scale industries, such as banks only need cyber security insurance. However, any electronic information such as your name, email, contact number, financial records, medical records, payment information, government documentation, etc., stored in your personal devices can be easily and quickly hacked by a genius hacker,” he explained.

“Cyber-insurance is a specialty lines insurance product intended to protect businesses, and individuals providing services for such businesses, from Internet-based risks, and more generally from risks relating to information technology infrastructure, information privacy, information governance liability, and activities related thereto,” he pointed out.

Continue Reading

Business

PENGASSAN Suspends Strike Over Chevron’s Agbami Oilfield Dispute

Published

on

By

Mr Lumumba Okugbawa, General-Secretary of PENGASSAN made this known to the News Agency of Nigeria (NAN) on Friday in Yenagoa.

Okugbawa told NAN that the strike had been put on hold following a truce with company’s management on April 15. According to him, the leadership of PENGASSAN and management of CNL reached an agreement over the matter, making the proposed strike unnecessary.

Okugbawa said that the mediatory meeting by Chief Timipre Sylva, Minister of State for Petroleum with the leadership of the union scheduled for April 15 could not also hold because a truce had reached.

PENGASSAN had threatened to down tools and shutdown Agbami Offshore Oilfield over moves by Chevron to cut its workforce by 25 per cent.

The plan to lay off 600 workers was announced, in a statement, on Oct. 2, 2020 by Mr Esimaje Brikinn, CNL’s General Manager Policy, Government and Public Affairs.

Brikinn said the job cut was to reposition the oil firm for greater efficiency and competitiveness.

Agbami field, which has the capacity to produce 250,000 barrels per day (bpd), currently produces about 140,000 bpd according to industry data.

NAN

Continue Reading