BUSINESS
Quest Electric Pays N19bn for Yola Disco, Plans N28bn Investment in Two Years
The Bureau of Public Enterprise (BPE) has signed a share sale and
purchase agreement (SSPA) with Quest Electricity Nigeria, the new
investor in Yola Electricity Distribution Company (DisCo).
This followed the payment of N19 billion purchase fee and a commitment
to invest another N28 billion (US$68 million) over a period of two
years.
Alex Okoh, the director-general of BPE, said this in a statement
issued, on Monday in Abuja, by Amina Othman, head of public
communications of BPE.
He also said the new investor was committed to improving the quality
of life of the inhabitants in the north-east geopolitical zone,
through aggressive investment drive, thereby providing an economic
tool for combating the insurgency in the region.
Okoh said the investment would be utilised to carry out an extensive
upgrade of the company’s electricity distribution network.
He added that it was expected that the investment would deliver
results within a five-year period.
Okoh said the results included reduction in aggregate technical,
commercial and collections (ATC & C) losses from the current level of
80 per cent, which was the highest in the industry, to 29 per cent
which translated to a 51 per cent loss reduction.
According to the director general, “this investment will be utilised
for the purpose of carrying out an extensive upgrade of the company’s
electricity distribution network, in order to bring the business to
the level of financial viability. It is expected that this investment
will deliver results within a period of five years”.
He stated that the customer base would increased from 396,650 to
596,650, a 50 percent growth and a significant increase in energy
supplied from 1,305 Gigawatt Hours (GWh), to 1,714GWh.
Okoh said as a result of the aggressive investment drive by the
investor, it was expected that the increase in energy supply would
stimulate economic growth and development in the region.
This, he said, would be through the creation of new industries and
opportunities, attracting much needed investment and boosting job
creation.
Okoh acknowledged the rigorous process of the negotiation, which took
place in the wake of the COVID-19 pandemic and its crippling impact on
economic activities as well as the challenging operational environment
in the North East region of the country.
He, however, said it was a testament to the commitment and doggedness
of the parties to deliver on the transaction and the high
collaborative spirit between the federal government and the core
investor.
“Moreover, it is a clear indication that there is still a significant
level of interest on the part of investors in the Federal Government’s
reform and privatisation programme,” he said.
“Notwithstanding the challenges in the power sector and the reaction
that has trailed the privatisation process, this continued interest
shows that the Federal Government took the right decision in reforming
the power sector.
Adamu Mele, chairman of Quest Electricity Ltd., acknowledged the
insecurity in the company’s area of franchise, but assured that it
would work round it to transform the distribution company within a
short time through infrastructure upgrade.
The Nigerian Exchange Ltd. (NGX) continued its bullish trend on Wednesday, gaining N183 billion.
Accordingly, the market capitalisation, which opened at N59.532 trillion, gained N184 billion or 0.31 per cent to close at N59.715 trillion.
The All-Share Index also added 0.31 per cent or 303 points, to settle at 98,509.
68, against 98,206. 97 recorded on Tuesday.Consequently, the Year-To-Date (YTD) return increased to 31.
74 per cent.Gains in Aradel Holdings, Zenith Bank, United Bank For Africa(UBA), Oando Plc, Nigerian Breweries among other advanced equities drove the market performance up.
Market breadth closed positive with 34 gainers and 17 losers.
On the gainers’ chart, Africa Prudential, Conoil and RT Briscoe led by 10 per cent each to close at N14.30, N352 and N2.42 per share, respectively.
Golden Guinea Breweries followed by 9.95 per cent to close at N7.18, while NEM Insurance rose by 9.74 per cent to close at N10.70 per share.
On the other hand, Julius Berger led the losers’ chart by 10 per cent to close at N155.25, Secure Electronic Technology Plc trailed by 9.52 per cent to close at 57k per share.
Multiverse lost 7.63 per cent to close at N5.45, Haldane McCall dropped 6.07 per cent to close at N4.95 and Honeywell Flour shed 5.62 per cent to close at N4.70 per share.
Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 49.44 per cent.
A total of 320.10 million shares valued at N6.48 billion were exchanged in 7,943 deals, compared with 939.41 million shares valued at N12.81billion traded in 9,098 deals posted in the previous session.
Meanwhile, ETranzact led the activity chart in volume with 70.27 million shares, while Aradel led in value of deals worth N1.22 billion.(NAN)
The central parity rate of the Chinese currency renminbi, or the Yuan, weakened 22 pips to 7.1870 against the dollar on Monday.This is according to the China Foreign Exchange Trade System.In China’s spot foreign exchange market, the Yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.
The central parity rate of the Yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. (Xinhua/NAN)
Arewa Youths Initiative for Energy Reforms (AYIFER), has urged Nigeria National Petroleum Corporation Limited (NNPCL) to do everything possible to bring Kaduna Refinery back into operation.
National Coordinator of the group, Mr Bashir Al’Amin, stated this in a statement issued on Friday in Abuja.
Al’Amin specifically called on the Chief Executive Officer of NNPCL, Mallam Mele Kyari, to do all within his powers to rejuvenate the refinery and bring it up to global standard.
He said that having delivered the Port Harcourt refinery, coupled with the establishment of Dangote Refinery in Lagos, attention should be shifted to Kaduna refinery for easy spread of petroleum products.
“We are calling on Malam Mele Kyari to expedite action on Kaduna refinery so we can be at par with other regions in the country.
“We equally beg the NNPCL to do professional work in rehabilitating the old refinery and deliver a standard and functional petrochemical refinery and not a blending plant.
“Kyari should resist any temptation that could make him do something that can jeopardise his good image,” he said.
Al’Amin said that since the extinction of groundnut pyramid and textiles in Kano State as well as PAN in Kaduna State and with the Kaduna refinery getting moribund, a lot of youths had lost their jobs.
According to him, all their hopes in the north are tied to the legacy refinery, expressing the hope that God would use Kyari to deliver it well and on time.
He said that the group was solidly behind NNPCL in prayer and would be ready to celebrate the company if its expectations were met. (NAN)
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