Manitoba agrees to payments in Naira
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.