Abuja Electricity Distribution Company (AEDC) is notifying all customers with outstanding bills to settle their accounts immediately to avoid service disruption.

Adefisayo Akinsanya, head, Marketing and Corporate Communications in a statement said that to this end, customers who are yet to settle their outstanding bills within the next 72 hours, by Monday, June 3, 2024, will face disconnection of their electricity supply.

AEDC emphasized the importance of adhering to payment deadlines to ensure efficient and reliable service.

Akinsanya added that “the timely payment of electricity bills remains crucial for the continued operation and enhancement of AEDC’s infrastructure, which is essential for delivering uninterrupted service to the community.

Deadline for Payment: All outstanding bills must be paid within 72 hours of this notice, by Monday, June 3, 2024”

A total of $142.5 million was paid to the Niger Delta Development Commission (NDDC) last year by The Shell Petroleum Development of Nigeria Ltd (SPDC) and Shell Nigeria Exploration and Production Company Limited (SNEPCo).

SPDC paid $112.5 million while SNEPCo remitted $30 million compared to $59.04 million by SPDC and $20.73 by SNEPCo in 2022.

The contributions came from the Shell companies on behalf of themselves and their respective partners –.  Nigerian National Petroleum Company Limited (NNPC); TotalEnergies, EP Nigeria Limited; NAOC; and Esso Exploration and Production Nigeria Limited – as statutory contributions to the interventionist agency.

“Our support for NDDC is part of our aspirations for the development of the Niger Delta which has also seen a wide range of social investments, including health and education,” Igo Weli,SPDC director and country head, Corporate Relations said.

“With the continuous support of our partners, we will continue to discharge our obligations to communities through statutory payments to agencies and projects executed in partnership with stakeholders.”

Shell Companies in Nigeria have supported community development programmes in the country since the 1960s, benefitting many Nigerians.

Support for education has led to the award of more than 3,450 secondary school grants, 3,772 university grants and 1,062 cradle-to-career scholarship grants since 2016.

Another investment has seen the introduction of the Health-in-Motion programme, providing free medical services directly to communities.

Over one million individuals have benefited from the programme since its inception in the early 2000s.

Also, the global Shell LiveWIRE entrepreneurship programme supported 73 businesses through training and mentorship programmes leading to 97 employment opportunities for Nigerians.

The value of foreign inflow on the Nigerian Exchange Limited dropped by 19.14 per cent month-on-month to N42.58bn in April from N52.66bn in March.

This was indicated in the Domestic & Foreign Portfolio Investment Report of Nigerian Exchange Limited for April.

On the flip side, foreign outflow worsened by 88.10 per cent to N78.25bn from N41.60bn in March, indicating foreign investors’ appetite for the local equity market was still low.

The decline also followed a pattern that had been observed since the beginning of the year, as foreign outflow steadily rose from N37.33bn in January to N40.88bn in February.

Combined, foreign transactions recorded an increase of 28.19 per cent to N120.83bn in April compared to N94.26bn in the prior month.

The local bourse lost about N3.54tn in April on the back of bearish trades, as investors looked for improved yields on alternative markets.

Meanwhile, $1.30bn worth of cleared USD/naira-settled non-deliverable forwards open contracts on the FMDQ securities was due yesterday.

Cleared naira-settled non-deliverable forwards are contracts where parties agree to an exchange rate for a predetermined date in the future, without the obligation to deliver the underlying US dollar on the maturity/settlement date.

Upon maturity, both parties are assumed to have transacted at the spot FX market rate.

According to the FMDQ, the cleared USD/NGN NDFs contracts are cash-settled in naira and the differential between the contract rate and the Nigerian Autonomous Foreign Exchange Fixing rate on maturity day determines the settlement amount, i.e., the gain/loss in the contract.

The product, which can be used for hedging, was introduced in 2016, with the Central Bank of Nigeria as the pioneer seller of the cleared USD/NGN NDFs contracts.

The apex bank currently offers amounts for different tenors, ranging from 13 months to 60 months, to authorised dealers, who in turn offer the same to customers with trade-backed transactions or trade the same with other authorised dealers; settling on bespoke maturity dates.

Speaking on the due cleared USD/NGN NDFs contracts, a financial market analyst, Olaide Baanu, said, it would require a huge payment from the CBN, which could impact the value of the local currency.

“The settlement of $1.3bn implies a cash payment of approximately N1.8tn from the Central Bank of Nigeria based on the NAFEX rate of around N1,400/dollar. If this volume of naira is paid by the CBN, it is likely to lead to further depreciation of the naira beyond the CBN’s target or desired range.

“Market participants are expected to use the excess naira liquidity to repurchase USD, putting additional pressure on the naira’s value.

“Regarding whether the CBN has sufficient naira volume to make such a payment, it would depend on various factors such as the CBN’s foreign exchange reserves, monetary policy objectives, and the potential impact on domestic liquidity and inflation.

“In response to such a significant cash outflow, the CBN may need to intervene in the foreign exchange market to stabilise the naira’s value before and after the payment.”

According to Baanu, this intervention could involve measures to bring down the official exchange rate to around N1,000/dollar or issuing promissory notes to manage the liquidity impact and prevent excessive naira circulation at once.