Man­i­toba agrees to pay­ments in Naira

Daily Trust - - NEWS -

Af­ter months of in­sis­tence that its out­stand­ing in­voices be paid in US Dol­lars, Man­i­toba Hy­dro In­ter­na­tional Nige­ria Lim­ited (MHINL) has agreed to col­lect pay­ments in Naira.

MHINL is the Cana­dian firm con­tracted by the fed­eral gov­ern­ment to man­age the elec­tric­ity Trans­mis­sion Com­pany of Nige­ria (TCN).

The firm’s ac­cep­tance of the naira pay­ment was con­tained in a let­ter signed by MHINL’s Di­rec­tor, Cas­san­dra Siemens, and ad­dressed to the Man­ag­ing Di­rec­tor of Sys­tem Oper­a­tions/Mar­ket Oper­a­tions (MO) of TCN.

MO is a di­vi­sion of TCN that is­sues mar­ket set­tle­ments and in­voices due to the mar­ket par­tic­i­pants and ser­vice providers in the Nige­ria Elec­tric­ity Sup­ply In­dus­try (NESI).

In the let­ter dated Sept. 29, MHINL re­called that it had given a no­tice of sus­pen­sion un­der the man­age­ment con­tract of TCN for rea­son of non-pay­ment in US dol­lars as per the con­tract terms.

The firm said, how­ever, that ”On a case by case ba­sis, MHINL will write their ac­cep­tance for pay­ment of the US Dol­lars in Nige­ria.’’

The Cana­dian firm asked the MO to ``im­me­di­ately trans­fer 93,764.09 US dol­lars naira ``at the

in pre­vail­ing ex­change rate,’’ into its Zenith ac­count.

The firm, how­ever, hinted that the re­quest was a ``one­time ex­cep­tion,’’ in­di­cat­ing that it would still pur­sue its bid to be paid in dol­lars.

The de­vel­op­ment sig­ni­fied a twist to months of dis­agree­ment that stalled the pay­ments as the MO re­fused to pay the in­voices in dol­lars as re­quested by MHINL.

In re­fus­ing to pay in dol­lars, the Man­ag­ing Di­rec­tor of MO, Mrs Vera Osuhor, had ar­gued that do­ing that would breach a CBN di­rec­tive that stated that all pay­ments must be made in lo­cal cur­rency.


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