Data from the Nigeria Electricity System Operator showed that electricity generation in the country fell below 2,500 megawatts on Saturday amid low load demand by the distribution companies. Total output from the country’s 27 power plants dropped from 3,364MW as of 0600 hrs on 1 August to 2,649.1MW on 2 August, then plunged further to 2,492MW on 3 August. The report showed that 2,126MW generation capacity was unavailable as of 1 August as a result of low load demand by Discos. The Ministry of Power, Works and Housing had said that the assured off-take from the national grid by the existing distribution networks is 3,500MW. Last week generation companies had decried the lack of payment guarantees for the energy being generated, sold and fed into the national grid.
Multinational firms in Nigeria have taken their insurance risks worth ₦16.9 trillion abroad claiming that they could not be insured locally due to the low retention capacity of Nigerian insurance companies. The ₦16.91 trillion risks ceded abroad means that the capacity of the Nigerian insurance industry is restricted due to the fact that some insurers have low capitalisation and thus could not absorb more risks. Nigeria’s underwriting firms were able to retain ₦37.69 trillion insured in the local market. The country is also losing billions in premium income to the foreign insurance firms in this process making it difficult to realise the targeted ₦1 trillion annual premium income. Although, Nigeria was able to retain a large chunk of the risks, market observers believe that if insurers could increase their capital in a bid to be stronger to retain most of this ₦16.9 trillion, which, invariably means more premium income, the industry can contribute more to the country’s GDP, while deepening insurance penetration and acceptance in the country.
Nigeria has reviewed air transport agreement with 27 countries in line with the provisions of the Single African Air Transport Market of the African Union. So far, 28 African countries have signed the SAATM. Once completely in force, the single market is expected to allow significant freedom of air transport in the continent, advancing the AU’s Agenda 2063. As of 31 July, 28 out of the 55 countries that make up the AU had signed the deal, which requires state parties to liberalise scheduled and non-scheduled intra-Africa air transport services in line with the provisions of the Yamoussoukro Decision. The 28 countries including Benin, Burkina Faso, Botswana, Capo Verde, Central African Republic, Chad, Congo, Côte d’Ivoire, Egypt and Ethiopia among others, according to the International Air Transport Association, represent over 80% of the existing aviation market in Africa. Many more carriers within the continent are expected to begin flight services into Nigeria, going by the new agreement as it had so much to benefit from SAATM than any other country on the continent, the Director of Air Transport Regulation of the Nigerian Civil Aviation Authority, Edem Oyo-Ita said.
Customers of online transactions in Nigeria are expected to pay more as the country is working on a solution for taxing the digital economy. The FG is planning to deduct 5% Value Added Tax for every online transaction using bank cards from next year. The Chairman of FIRS, Tunde Fowler, confirmed this in an interview with Premium Times. The FIRS boss said the tax agency will make use of Nigerian banks as the agent in achieving the 5% VAT. Nigeria’s government has projected that the digital economy will generate $88 billion and create up to three million jobs in the next three years. Last year, the former minister of Industry, Trade, and Investment, Okey Enelamah, said that the FG intends to create an enabling environment where digital economy opportunities are not just theoretical but become real. Taiwo Oyedele, Head of Tax and Regulatory Services at PwC Nigeria, in a blog post, had listed digital economy among major issues that will impact the tax system in 2019.