Daily Watch – CBN to start enforcing collective agreements, Labour, NESG disagree over electricity tariff

24th February 2016

  • The CBN has said it has received series of complaints from customers of Deposit Money Banks (DMBs), alleging excessive and in some cases, illegal charges from their respective banks. To this end, the regulator has ordered that the Commission on Turnover (CoT), being charged by banks in defiance of collective agreement between them and the CBN that the charges be phased out this year. Aside CoT charges, banks’ other charges include SMS alerts, annual account maintenance fees, stamp duties, and VAT.
  • The naira gained for a second straight day to trade at N340 to the dollar at the parallel market. Traders have given diverging opinions on what may be causing the gains, some implying that the return of the N35 million BDC operators’ deposits by the CBN has eased tensions, while others insisting that a drop in the demand for American dollars was responsible. The official market rate remained at N197 to the dollar, following President Buhari’s insistence that the currency would not be devalued.
  • The president of the Trade Union Congress, Bobboi Kaigama, has asked the federal government for an upward review of the national minimum wage.‎ During a visit to the Vice President, Yemi Osinbajo at the State House, Kaigama also said that the position of the labour unions remained that the federal government should reverse the sale of the electricity distribution companies (DISCOs), accusing them of lacking the will and competence to invest in the power sector and provide power to consumers.
  • However, private sector groups have given their unreserved backing for the new electricity tariff, saying that the new multi year rates are vital for the stabilisation of the sector after years of neglect and near zero investment. In a 10-page statement, the Nigerian Economic Summit Group said, “the commencement of the MYTO-2015 will have a positive impact on investments into the industry and turn a bankrupt electricity industry into a financially viable one and embolden private investors to make the large and desperately needed investments, particularly in raising generation capacity.”