Press zooms in on Nigeria’s power sector challenges, others

By Agence de Presse Africaine Last updated Jul 12, 2022

APA– Lagos The report of planned takeover of three power distribution companies by Fidelity Bank and the restructuring of two others by the Federal Government have led to an intense battle between the Discos and the government is one of the leading stories in Nigerian newspapers on Tuesday. The Punch reports that the planned takeover of three power…

APA – Lagos (Nigeria) The report of planned takeover of three power distribution companies by Fidelity Bank and the restructuring of two others by the Federal Government have led to an intense battle between the Discos and the government is one of the leading stories in Nigerian newspapers on Tuesday.

The Punch reports that the planned takeover of three power distribution companies by Fidelity Bank and the restructuring of two others by the Federal Government have led to an intense battle between the Discos and the government.

The takeover of the three Discos by Fidelity Bank is being backed by the Federal Government through the Bureau for Public Enterprise.

This came as findings show that Discos have continued to launch fresh legal battles with a view to preventing their takeover by the government and the bank.

However, industry stakeholders are divided over the development with both parties receiving commendations and condemnations from power sector experts.

While industry stakeholders gave diverse views on the development, it was observed on Monday that power generation on the national grid dipped by about 141.3 megawatts when compared to what was recorded on the grid on July 9, 2022.

Figures obtained by our correspondent from the Federal Ministry of Power showed that power generation rose to a peak of 3,992.6MW on July 9, 2022, but the peak generation on July 10, 2022 fell to 3,908.8MW.

The newspaper says that the manufacturing sector contracted for the second time in April, according to figures obtained from the Central Bank of Nigeria.

Reports released by the CBN said, the Deputy Governor, Financial Systems Stability Directorate, CBN, Aishah Ahmad, stated that, “Continued interventions especially in growth enhancing sectors is, thus, critical to sustain momentum in economic activity and stimulate aggregate demand, especially in view of the manufacturing purchasing manager’s index which contracted for the second consecutive month at 48.9 index points in April 2022 from 49.10 index points in the previous month,” she said.

A member of the MPC, Robert Asogwa, said available high-frequency indicators including the manufacturing Purchasing Manager Index and the MAN CEO confidence index suggests that 2022 quarter two growth may fall below that of quarter one.

He said, “For instance, the manufacturing PMI stood at 48.9 index points in April 2022, lower than the 49.10 points recorded in March 2022, marking two months of consecutive decline, below the accepted 50 index points threshold. “The non-manufacturing PMI for April looks better at 49.5 index points, compared with 48.10 index points in March 2022.”

An MPC member, Kingsley Obiora, said the sub-sectors that recorded significant growth during the period included rail transport and pipelines, air transport, metal ores, financial institutions and telecommunication and information services by 124.5, 50.68, 30.76, 25.43 and 14.50 per cent, respectively.

However, he added, oil refining, crude petroleum and natural gas, road transport, quarrying and other minerals all contracted by 44.26, 26.04, 24.63, and 13.72 per cent, respectively.

The Guardian reports that research has revealed that at least three in five workers are looking for a new job, as the cost of living forces people to seek out new roles with higher wages.

The study found out that the crisis is pushing employees to seek roles with higher wages rather than waiting for pay reviews.

A survey of 832 candidates, carried out by Aspire, found 60.8 per cent of workers were currently looking for another position, with almost half (49 per cent) reporting doing so specifically because of the cost of living.

The poll revealed that more than two-thirds (69.4 per cent) of prospective candidates said they were likely to be paid more if they moved jobs, rather than staying in their existing role and waiting for a pay review (10.1 per cent).

More than a third (39.7 per cent) also said they saw the cost of living crisis as the biggest external factor affecting the jobs market.

Among those considering quitting their job, more than a third (35 per cent) said they were looking to move for better pay and benefits, the most common reason cited.

The newspaper says that Fidelity Bank Plc has disbursed over N100 billion loans to Small and Medium Enterprises (SMEs) in the real sector in the first half of the year.

The bank has also leveraged its lending framework to partner with several Development Finance Institutions (DFI) such as, Development Bank of Nigeria (DBN), Bank of Industry (BOI), African Development Bank AfDB) to make low interest prices credits available to SMEs in Nigeria.

Group Head, SME Banking Business, Fidelity Bank Plc, Ms. Esther Obiekwe, while speaking on the sideline of the recent Lagos State Trade Fair said in view of the giant strides achieved in the areas of SMEs growth in Nigeria, the bank was named best SME supportive institution by the DBN, having disbursed over N50b under the DBN on-lending scheme

According to her, the bank is aggressively leveraging cutting-edge digital solutions to improve customer experience in risk asset products to deepen its penetration in the SME segment and boost market share in the industry.

She said the bank is currently building SME advisory hubs across the country where existing and aspiring entrepreneurs (both our SME customers and non-customers) can come in and receive business management knowledge and advice free of charge.

Additionally, Obiekwe said the bank is also building an SME on-line hub that will serve as a one-stop shop for its business advisory services for Nigerian SMEs.

She bemoaned the challenges confronting the SMEs sector in Nigeria, despite that it potentially constitutes the most dynamic firms in emerging economies, limiting their expansion capacity and impeding development.

The issue of lack of funding in SMEs should not even exist given the attractiveness of the sector especially the technology firms. The sector contributes 50 per cent of GDP and generates up to 90 per cent of employment.

The Nation reports that African property markets are poised for growth despite a slowdown in various economies on the continent mainly caused by slump in commodity prices, thanks to global capital, which continues to find its way in the region.

But even as property developers and private equity funds continue to pour investment into the continent, they are focusing on various strategies which enhance their returns, says the General Manager of the upcoming Africa Property Investment Summit, Kfir Rusin.

“Over $1.2 billion has been raised and allocated to real estate investment in Africa over the past year and we expect this trend to continue” said Rusin.

This has resulted in a shift towards economic diversification and countries in the East African region providing more economic stability than others.

The Chairman of Knight Franks’ Africa Business, Peter Welborn, said: “The underlying investment theme across sub-Saharan Africa, over the next decade, will be driven by substantial allocations of equity into joint ventures with successful local partners.

“Real estate and related industries have been important contributor to Africa’s Gross Domestic Product (GDP) in recent years and analysts say they expect the trend to continue in future years.”

GIK/APA