Business

Aba $800m Power plant is set to run, MD assures

As preparations reach an advanced stage for the commissioning of the 188-megawatt Geometric Power plant in Aba, Abia State, the Managing Director, Engr. Ben Caven has assured stakeholders that the firm is eager to supply sufficient power as it has invested about $800 million in the group, the largest investment in the South East.

The only person to have headed the generation, transmission and engineering divisions in the now defunct National Electric Power Authority (NEPA) as Executive Director, Caven said that Geometric Power said that “the more power you get from us, the more revenue we receive from you, our happy and satisfied customers”, adding that “return on this massive investment can come only when we provide you with sufficient reliable and quality electricity”.

On the new electricity tariff, he reminded the customers that charges are not determined unilaterally by distribution firms. “The Nigeria Electricity Regulatory Commission (NERC) regulates tariffs. NERC is the only body authorised by law to decide electricity tariffs and when they can come into force. NERC approved a new tariff structure for Aba Power last year, but the company chose to absorb substantial revenue losses by charging the old rates until this year. The new tariff structure is based on Nigeria’s current economic realities”, he explained.

Caven said that the takeoff of Geometric Power plant would result in constant power supply and reliable electricity to Aba Power, and to the industries, offices, and homes. “Geometric Power Limited cannot thank you enough for your patience, understanding, and unflinching support over the years. A new dawn is on the horizon. May the Good Lord continue to guide, protect, and bless each of you”, he said.

The Managing Director gave further report on the last challenge faced by the Aba-based electricity integrated company as it gets set to run the plant, saying: “Officials of the Geometric Power group recently held frank and rewarding discussions on the electric power situation in Aba with leaders of the 22 member-Aba Landlords Protection and Development Association (APALDA) and agreed on the way forward for the benefit of all stakeholders in the Aba Ring-Fenced Area. Here is a brief report on the last impediment to the takeoff of the Geometric Power plant in the Osisioma Industrial Layout, Aba, which is in fulfilment of the agreement we reached at the crucial meeting.

“The only remaining challenge to the technical commissioning of the 188-megawatt thermal power plant has been the non-supply of natural gas yet to fire the plant by the Nigerian National Petroleum Company Ltd (NNPCL) which owns the majority stake in OML 17 at Owaza in Ukwa West Local Government Area of Abia State. As you know very well, the 27-kilometre pipeline to supply gas to the plant was completed long ago, and last September the plant became ready for operations.

“Gas supply has remained an issue because of the change in the operatorship of Oil Mining Lease (OML) 17 three years ago; the change led to a three-year legal tussle between The Shell Petroleum Development Company and the Federal Government of Nigeria. When the Federal Government declined to renew the SDPC’s licence to operate OML 17 so that the NNPCL could operate it as part of the deliberate process to make the NNPCL become a globally competitive state-owned hydrocarbon company like Petronas of Malaysia and Petrobras of Brazil, Shell took the matter to the Federal High Court and later to the Court of Appeal and the Supreme Court. It lost all the way.

“Meanwhile, The SPDC made no investments in the Associated Gas Gathering (AGG) facilities during the legal tussle. This means a tremendous deterioration in the state of the facilities. The NNPCL has been working round the clock to rehabilitate the facilities to the highest standards; any mistake can result in grave consequences. We all know how dangerous gas can be. Once the last technical issue is resolved, the Geometric Power plant will start operations. This will be a historic day not just for the Geometric Power Group but also for the people, communities, and businesses in the Aba Ring-Fenced Area, as well as the people and government of Abia State, and, indeed, the rest of Nigeria.

“The first General Electric turbine will automatically increase the quantum of electricity in the Aba Ring-Fenced Area from the current 25 Megawatts supplied by the Niger Delta Power Holding Company to 47MW, which is almost double. The second turbine will take it to 94 MW. The third turbine will increase the power output to 141 MW and with the peak demand of Aba Ring Fenced Area of 100 MW, the excess power may be exported to the National Grid. Power from the National Grid currently supplied to Aba will be made available to other parts of Nigeria, thereby making life better for all Nigerians. In other words, the commissioning of the Geometric Power plant will benefit all Nigerians, if not directly then indirectly.

“We are enthusiastic to provide you with electricity so that Aba will regain its status as the Japan of Africa. When the cost of goods manufactured in Aba reduces significantly, it will result in a reduction in the prices of goods across the country. Such multinationals as PZ plc and Nigerian Breweries plc as well as Glass Force have their manufacturing plants in Aba, and firms like Neimeth plc are about to move their production plants to Aba because of the availability of constant and quality power supply in the Enyimba Industrial City”.

Business

NCAA to punish airline operators for delayed tickets refund

N46bn debt: NCAA threatens to withdraw airlines’ licences

The Nigerian Civil Aviation Authority, NCAA, has expressed its readiness to punish any airlines that delay tickets refund to the passengers.

The Director of Public Affairs and Consumer Protection, NCAA, Michael Achimugu, made this known in a statement on Tuesday in Abuja,.

He said tickets refund compliance regulations remain central to the NCAA’s consumer protection agenda.

According to him, the time had come for airlines to adhere strictly to the refund timelines as failure to comply will attract immediate sanctions under Part 19 of the regulations.

The director said Part 19 of the NCAA Regulations 2023 aimed to safeguard passenger rights.

Speaking on a specific case involving Air Peace, the director stated that the airline had exceeded the stipulated refund timeframe, compelling the NCAA to demand swift compliance.

Achimugu added that the incident has triggered the regulators to take decisive action against any form of non-compliance.

“Cash purchases must be refunded immediately, and by cash. Refunds for electronic payments, including mobile apps and internet banking, must occur within 14 days.

“Over the past year, the NCAA has worked with airlines to enhance passenger experience and resolve operational challenges.

”The Authority has maintained a balanced approach, fostering cooperation between operators and regulators to promote better service delivery.

“Most airlines have been responsive, and the relationship between operators and the NCAA has significantly improved, benefiting passengers across the board,” he said.

Achimugu, however, said that the era of leniency had ended with stricter enforcement measures now in place, adding that airlines that failed to meet the refund timelines outlined in the NCAA Regulations 2023 would face sanctions

Business

AfDB Offers Solutions To Nigeria’s Debt, Forex Challenges

The African Development Bank (AfDB) has provided key insights into how Nigeria and other African nations can address their growing debt burdens and foreign exchange challenges.

The Bank’s Vice-President for Economic Governance and Knowledge Management, Prof. Kevin Urama, told the News Agency of Nigeria (NAN) that strategic borrowing and political stability were critical for growth.

Speaking on Nigeria’s debt profile, Urama, the AfDB’s Chief Economist, said that public debt itself was not inherently problematic.

“Debt for growth is a known way of growing economies. However, the quality and structure of the debt are crucial factors in determining its long-term impact,’’ he said.

The professor raised concerns about the growing trend of short-term, high-cost commercial loans in African countries, which came with higher refinancing risks.

“The problem arises when countries borrow short-term loans and are unable to repay them before investments mature. This cycle forces countries to continuously refinance, often at unfavourable terms.

“It is therefore important for African governments to focus on borrowing longer-term loans with lower interest rates, underpinned by clear investment plans that can generate returns capable of repaying the debt.

“For Nigeria, the key question should not be whether the country is borrowing more, but rather how borrowed resources are being used.

“If borrowed funds are invested in infrastructure that drives growth both in the short and long term, it is a smart move,” he said.

On foreign exchange and trade, Urama pointed to Africa’s dependence on imports, specifically food, as a critical area for reform.

He acknowledged the ongoing disruption of global supply chains due to geopolitical tensions, including the war in Ukraine, which had affected wheat imports to Africa.

The professor, however, urged African countries to address their dependence on imports, especially when the continent was home to vast agricultural potential.

“Africa has no business importing wheat from Ukraine because we have 65 per cent of the remaining arable land in the world.

“We also have a vibrant, youthful population eager to engage in productive activities. Africa has the capacity to feed itself and the world.

“And this can be achieved through initiatives such as the AfDB’s AgriPreneur and Special Agro-Industrial Processing Zones (SAPZ) programmes which are crucial tools for unlocking the continent’s agricultural potential,’’ he said.

Urama cited Ethiopia’s success in becoming a wheat exporter within just four years of focused agricultural investment.

He said this was a demonstration that Africa could transition from food dependence to food self-sufficiency and even become a global exporter.

On the broader economic challenges facing Nigeria and other African countries, the professor reiterated the importance of political stability and sound macroeconomic policy management.

Urama pointed to Botswana as an example of how stable governance and good policy could reduce capital costs, increase foreign investment, and improve economic growth.

“When political stability and good governance are in place, the cost of capital decreases, and investments flow more freely,” he said.

According to the AfDB vice-president, Africa’s economic challenges are solvable through long-term strategies focused on stability, sound economic management, and a shift towards local production and value addition.

“By doing so, African countries can reduce their dependence on external financing, stabilise their currencies, and ultimately foster sustainable economic growth,’’ he said.

(NAN)

Business

BOI disburses N22.89bn to 29 manufacturers

The Bank of Industry (BOI) says it has disbursed N22.89 billion out of the N75 billion manufacturing sector intervention fund to 29 manufacturers.

Its Managing Director, Dr Olasupo Olusi, made this known on Monday at the first BOI interactive session with the Organised Private Sector in Abuja, which was monitored virtually.

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Olusi said that out of the N75 billion manufacturing sector fund, other 20 projects valued at N6.3billion were at different stages of disbursement.

He said that the interactive session was a collaborative milestone, a reflection of shared vision to create a thriving industrial sector.

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According to him, it is also a critical step in driving Small and Medium Enterprises (SME) development through strategic partnerships.

“Recently, we signed a Memorandum of Understanding (MOU) with your esteemed associations.

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“This agreement underscores a simple truth that we cannot transform Nigeria’s industrial landscape alone.

“The journey to sustainable economic growth must be fueled by collaboration, innovation, and a shared resolve to address systemic challenges,” he said.

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The BOI MD said that under the signed agreement, the bank had already begun making strides through joint efforts on the Federal Government’s loans programme.

He said that the event, with the theme, “Driving SME Development through Strategic Partnerships” challenged everyone to reimagine how we work together.

Olusi said in practice, this meant shared responsibility as the bank’s role was not only to provide financing but also to support an enabling environment for businesses to thrive.

“This includes addressing infrastructure gaps, regulatory bottlenecks, and access to markets.

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“However, your expertise and insights are essential to inform these efforts.

“On collaborative innovation, we must work together to introduce technology, sustainability, and skills development as core pillars of SME growth.

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“We are concerned about your most pressing challenges, your operations, how we can further align our programmes with your needs and the innovative solutions we can pursue together to accelerate growth,” he said.

Olusi urged the organised private sector to keep in mind the six thematic areas of impact that BOI was focused on in line with President Bola Ahmed Tinubu’s renewed Hope Agenda.

He listed them to include MSME development, digital transformation, youth and skills development, climate and sustainability, gender inclusion and sectoral growth.

“These are not just BOI’s priorities; they are national imperatives and they require your active participation to succeed.

“The Bank of Industry stands as your partner in progress, ready to support at every step of the way as together we have the potential to transform Nigeria’s economic landscape,” he said.