Tag: Electricity

  • Addressing Nigeria Electricity Generation and Availability Challenges

    Addressing Nigeria Electricity Generation and Availability Challenges

    The country failed to meet her 2020 electricity generation target of 40 GW, and presently the
    installed capacity stands at about 13 GW, while the available capacity hovers around 6 GW.

    While the electricity average per capita consumption of the United States of America stands at
    12,497 kWh per year, that of South Africa stands at 3,200 kWh per year, that of Nigeria stands at
    a ridiculous value of 120 kWh per year which is 2.8 times lower than the average for SubSaharan Africa.

    The value for Nigeria was peaked in the year 2014 at 173 kWh per year, and with these data we can see the reason for the downturn of the country’ economy: A nexus exists between a nation’s electricity supplies and her level of growth and industrial advancement.

    Many manufacturing and production outfits in the country have been forced out of operation due to epileptic power supplies, and if care is not taken, many more will be forced to do so. The Nigerian government had at several times come-up with policy formations to address the problem of epileptic electricity supplies, and the populace have at many times greeted such with a high level of euphoria, however, this has always been disappointing.

    These policies have not been entirely faulty, but maybe some fundamental issues have not been addressed; the generation and supply mode. The country relies heavily on the centralized electricity generation mode which entails the shipment of all generated electricity to a central grid from where it is now transmitted to different sub-stations across the country. Although, a great level of reliability can be achieved with this mode, it is however, plagued by high losses during transmission and grid collapse which is very common in the country. Another electricity generation mode; decentralized/distributed generation which entails the use of the generated electricity in the vicinity of the generating plants can however, come to the rescue based on its merits; security, energy efficiency, and cost as now discussed.

    Energy Security; many parts of the country have their peculiar resources from which electricity can be generated; solar and wind in the north, solar, mini/micro hydro, and gas in the south. This makes it possible to have secured generation in different parts of the country that are not susceptible to security challenges in another part of the country that can be the bane of centralized generation.

    Energy Efficiency; the high level losses experienced on the nations’ electricity transmission grid network takes a huge toil on the efficiency of a centralized electricity generation network. These losses are however, reduced/eliminated in the decentralized/distributed electricity generation network making it to be more efficient.

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    Cost; while the economics of scale favours centralized electricity generation, the capital cost requirements for its plant construction is huge and the construction period also high. The capital cost requirements for decentralized/distributed electricity generation plants are however, lower and lesser time is required for the construction. The cost competiveness for decentralized/distributed electricity generation is also boosted with the need not to invest in robust transmission infrastructure, asides the elimination of the cost of the attendant energy losses in the lines. The huge cost of shipment of electricity to rural areas have always hitherto, been a great challenge to rural electrification, however, it is expected that the government policies addressed to bridge urban and rural electrification will fully adopt decentralized/distributed electricity generation to bring down cost and help bring succor to the residents of the areas. Experience have shown that many projects in the country becomes abandoned due to scarcity of funds and long timelines. Decentralized/distributed electricity generation will allow for lower investment funds, speedy completion and fast return on investment and pave way for more investment.

    It is expected that the government participate at all levels and also create an enabling environment for investors by building mini grids for the adoption of decentralized/distributed electricity generation. This will help as a quick fix to the epileptic electricity supplies being experienced in the country due to the lower required investment cost and period of construction, better efficiency, and better secured mode. This is asides the better suitability of decentralized/distributed electricity generation from renewables which can help the country to reduce her carbon footprints and contribute to meeting the Sustainable Development Goals (SDGs) 1, 7, 8, 9, 11, 12, and 13 of the United Nations.

    Olumide A. Towoju is a registered Engineer and an Associate Professor in the department of Mechanical Engineering at Lead City University, Ibadan. (olumidetowo@gmail.com)

  • Nigeria leads initiative to provide electricity for 300m Africans by 2030

    Nigeria leads initiative to provide electricity for 300m Africans by 2030

    The Speaker of the House of Representatives, Rt Hon. Abbas Tajudeen has said Nigeria is assuming a continental leadership role in the race to electrify Africa, with a bold target to help provide electricity to 300 million Africans by the year 2030.

    This was as he also praised President Bola Tinubu’s approval of a $1 billion financing initiative for the Rural Electrification Agency (REA) in December 2024.

    He spoke while delivering the keynote at the opening of the First Legislative Conference and Expo on Renewable Energy organized by the House of Representatives Committee on Renewable Energy chaired by Hon Afam Ogene, in collaboration with the United Nations Development Programme (UNDP), in Lagos yesterday.

    Speaker Abbas said Nigeria’s involvement in the Mission 300 Initiative, a collaborative effort with the World Bank and the African Development Bank (AfDB), exemplifies its commitment to advancing clean and inclusive energy access across Africa.

    He said this initiative is a strong demonstration of Nigeria’s leadership on the continental stage.

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    “On the continental stage, Nigeria has assumed a leadership role. Through our participation in the Mission 300 Initiative with the World Bank and the AfDB, we are working to provide electricity to three hundred million Africans by 2030.

    “While progress has been made, the road ahead requires sustained effort. The success of this transition depends on coherent actions across all institutions. Legislators must establish sound legal foundations. The executive must implement with integrity and urgency. The private sector must invest in innovation and scale. Civil society must foster awareness, inclusion and accountability.

    This conference, therefore, provides an opportunity to reaffirm our shared commitment,” he said.

    Abbas urged that the momentum built so far should not be allowed to dissipate and urged that the resolutions should lead to concrete outcomes, including model legislation, greater investments, and the adoption of new technologies.

    The Speaker used the platform to reaffirm Nigeria’s internal strides toward a clean energy transition. He highlighted the legislative reforms championed by the 10th House of Representatives, including the recent establishment of a Standing Committee on Renewable Energy, which coordinates national efforts in expanding access to clean power.

    “Our legislative agenda recognizes energy reform as central to our national priorities. Strategic Objective 8.5 aims to promote renewable energy development while ensuring access, efficiency, and environmental responsibility,” he said.

    Among recent legislative milestones, he cited the House’s passage of new tax reform bills that eliminate Value Added Tax (VAT) on renewable energy components and Compressed Natural Gas (CNG) technologies. These reforms, he said, are designed to stimulate private investment and enhance affordability in the clean energy sector.

    He said the House is also working to provide legal backing for Nigeria’s Renewable Energy and Energy Efficiency Policy (REEEP) of 2015, a framework that seeks to boost renewable energy adoption, curb greenhouse gas emissions, and improve energy efficiency nationwide.

    Abbas noted that the urgency to transition to clean energy is no longer optional, citing global energy trends that show a decisive shift toward renewables. He noted that in 2024, renewable energy accounted for over 92 percent of new global power generation capacity, driven primarily by solar and wind, bringing the world’s total installed capacity to over 4,448 gigawatts, a 15 per cent year-on-year increase.

    He also referenced international investment figures from 2023, where $1.7 trillion of the $2.8 trillion total global energy investment was directed toward renewable energy, energy efficiency, and electric mobility.

    “This is a structural reorientation of the global energy economy,” Abbas said. “Nigeria must align with this reality to stay relevant, competitive, and environmentally responsible.”

    He pointed to legislative successes in countries such as Egypt, Germany, and members of the European Union, where robust legal frameworks have accelerated clean energy expansion. He called for African parliaments to emulate such examples through strong laws, decentralized energy strategies, and support for independent power producers.

    He commended the Tinubu administration for key energy policy reforms, particularly the Electricity Act of 2023, which devolved control over the power sector to sub-national governments, thus encouraging localized energy solutions and private-sector participation.

    He said of the $1 billion approved by President Tinubu, $750 million is earmarked for expanding solar access in underserved areas, resulting in the deployment of 124 mini-grids and over 25,000 solar home systems, benefiting more than 200,000 Nigerians.

    “Such bold investments are game-changers. They show what is possible when policy, financing, and legislation align,” he said.

    The Speaker reiterated Nigeria’s commitment to its Energy Transition Plan, which lays out a path to achieving net-zero emissions by 2060. He also welcomed the launch of the Nigeria Carbon Market Activation Policy in March 2025, aimed at unlocking climate finance and enhancing project viability.

    He emphasized that legislative support, policy innovation, and private-sector engagement are all required for the success of Nigeria’s green transition.

    Abbas said legislators must enact and enforce strong legal foundations, while the executive branch must implement these policies with urgency and integrity.

    “The private sector must invest boldly, and civil society must foster awareness, inclusion, and accountability,” he added.

    He urged participants to take full advantage of the conference to develop concrete resolutions, model legislation, and partnerships that will deliver tangible results.

    “Let us not lose the momentum we’ve built. Let this conference be remembered not just for the conversations it sparked but for the change it inspired,” Abbas said.

    He underscored the importance of continental collaboration. He lauded the participation of fellow African parliamentarians and emphasized the value of cross-country learning in strengthening regional capacity for renewable energy development.

    Hon. Ogene, called for urgent action.

    He emphasized that Nigeria’s continued reliance on fossil fuels, despite its vast reserves, has failed to provide reliable electricity, stifling economic growth and productivity.

    Ogene acknowledged that while fossil fuels are vital to the economy, the country must diversify its energy sources to ensure sustainability and reduce dependence on non-renewable resources.

    “The persistent power supply challenges we face are not just a technical issue, they are a barrier to our national development. To move forward, we must embrace renewable energy as a critical component of our energy strategy,” he said.

    Highlighting the importance of legislative action, Ogene pointed to the House’s recent steps to ensure government agencies transition to renewable energy sources for their operations.

    He also revealed that the Committee had launched investigations into the management of past renewable energy investments, emphasizing the need for accountability and transparency in future projects.

    “The transition to renewable energy is not just about power generation; it’s about creating economic opportunities, especially for our youth. Every solar panel and clean energy initiative represents potential jobs and skills development,” Ogene added.

    Speaker of the Parliament of Ghana, Hon Alban Sumana Kingsford Bagbin, said the Conference was not just a testimony to the increasing urgency to address energy challenges, but also a call to policymakers, legislators, investors, community and innovators to take action towards shaping a sustainable energy future.

    Represented by Ghana’s First Deputy Speaker of Parliament, Hon. Bernard Ahiafor, he called on African legislators to play a central role in driving the continent’s transition to renewable energy, emphasizing that sustainable energy is vital for Africa’s development and climate goals.

    Ahiafor applauded Nigeria’s efforts in convening stakeholders to identify legislative and policy gaps in the renewable energy sector. He stressed the need for inclusive policies that attract investment, expand energy access, and support local industries.

    Citing global data from the International Renewable Energy Agency (IRENA), he noted that over 80% of new electricity capacity in 2023 came from renewable sources, signaling the rapid pace of the global energy transition.

    However, he cautioned that Africa remains underpowered, with more than 600 million people still without access to electricity despite holding 60per cent of the world’s best solar resources.

    He spotlighted Ghana’s progress in the sector, including utility-scale projects like the 50MW solar PV farm and the sub-region’s first floating solar plant.

    He also highlighted Ghana’s off-grid initiatives and favorable policies like net metering, tax incentives, and green financing through programs such as SUNREF and the Green Climate Fund.

    Ahiafor emphasized the importance of legislative backing in energy reform, referencing Ghana’s Renewable Energy Act and other key laws.

    He also reiterated Ghana’s commitment to international agreements like the Paris Accord and Sustainable Energy for All.

    He urged African nations to work collaboratively across borders to power homes, schools, and industries with clean, affordable energy, stressing that a just and inclusive transition is essential to ensure no community is left behind.

    The UNDP Resident Representative, Ms. Elsie Atafuah, said the cost of inaction was too high.

    She said the world is reorganizing around energy, minerals, and climate security, adding that the next superpowers will be those who master the green value chain.

    Atafuah said Nigeria has the people, the resources, and the influence to lead but leadership requires courage, vision, and legislative action.

    She said today, the world stands at a critical moment with rising planetary challenges such as climate change, pollution, and biodiversity stress geopolitical realignments. amidst even more significant

    Atafuah said this is a defining moment for Nigeria’s development journey, where energy is not only a development necessity but a cornerstone of economic competitiveness, national security, and global positioning.

    She said as countries across Africa and around the world make bold strides to secure their energy futures and critical mineral assets, the choices Nigeria makes today will shape its trajectory for decades to come.

    She said UNDP and the United Nations stand ready to support, through scalable solutions, policy design, technical assistance, financing models, and strategic partnerships.

    She urged that the Conference should mark the deepening of Nigeria’s energy and mineral economy, clean, competitive, and globally relevant.

  • FG Power, CMEC sign $328.8m agreement for transmission line 

    FG Power, CMEC sign $328.8m agreement for transmission line 

    The Nigerian Electricity Supply Industry (NESI) on Wednesday recorded another milestone from Phase 1 of the Presidential Power Initiative (PPI) as its FGN Power Company signed a $328.8 million agreement with the China Machinery Engineering Corporation (CMEC).

    The pact was for engineering, procurement, construction, and financing (EPC&F) for the implementation of the transmission lines under the PPI.

    Speaking, the Minister of Power, Chief Adebayo Adelabu, described the agreement as a bold step forward in the industry.

    He said, “Today, we take an even bolder step forward. We are here to witness the formal signing of a landmark Engineering, Procurement, Construction, and Financing (EPC&F) contract between the FGN Power Company (FGNPC) and the esteemed China Machinery Engineering Corporation (CMEC).

     “This agreement, valued at US$328,818,916.99, signifies a major leap in the implementation of Phase I of the PPI.”

    He said the project will result in CMEC undertaking the vital task of rehabilitating and constructing an extensive construction of 330kV and 132kV Transmission Lines under Phase I of the Presidential Power Initiative (PPI). The contract, valued at US$328.8 million, according to him, will ensure efficiency and prevent stranded capacity in the grid, these projects have been strategically divided into two priority batches.

    Adelabu said priority one comprises seven Brownfield and ten Greenfield lines, totalling 544km with a load capacity of 7,140MW.

    He said that this vital infrastructure will act as the arteries that carry the increased power generated through the country’s mid-stream transmission projects directly to the homes, businesses, and industries that power our economy.

    Commenting on the strategic plan of the project, the minister said, “This project is not an isolated endeavor. It is deliberately designed to seamlessly complement the ongoing mid-stream transmission enhancements. Our vision is a holistic one – from generation to the last mile of distribution.

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    “By focusing on upgrading and expanding our transmission network, we are directly addressing a key bottleneck in the power value chain.

    “This will translate to a significant improvement in electricity reliability and accessibility for millions of Nigerians, fostering economic growth, creating jobs, and enhancing the quality of life for our citizens.”

    He recalled that just on Tuesday, the ministry reflected on the tangible progress of the Presidential Power Initiative (PPI) with the successful receipt and ongoing deployment of ten state-of-the-art power transformers and ten mobile substations from its esteemed partners at Siemens Energy.

    Adelabu revealed that these vital assets, now being strategically installed across the nation in locations like Okene, Amukpe, Potiskum, Apo, and many others, are already adding over 700MW to our transmission capacity, easing critical constraints and bringing us closer to a more robust and reliable grid.

    In his remarks, the FGN Power Company Managing Director, Kenny Anuwe, said the event marked a significant stride forward in the collective pursuit of a reliable and efficient power sector for Nigeria.

    He said the country built upon that momentum yesterday with the landmark agreement with CMEC.

    He also said the $ 328.8 million contract is a testament to the meticulous planning, dedication, and collaborative spirit that underpins the PPI.

    According to him, it signifies a concrete step towards addressing a critical aspect of the power infrastructure – the transmission network.

    Anuwe said the expansion and upgrade of the transmission infrastructure are crucial for effectively transporting the increased power generated through the ongoing mid-stream projects to where it is needed most – at homes, businesses, and industries.

    The managing director also said, “At FGN Power Company, our mandate is clear: to expeditiously deliver improved power supply to all Nigerians. We recognize that a robust and reliable transmission network is the backbone of a stable power sector.

    “This partnership with CMEC is a strategic move to strengthen that backbone, ensuring that the investments being made in generation can translate into tangible benefits for the Nigerian populace.

    “We are particularly delighted to partner with China Machinery Engineering Corporation (CMEC) on this transformative project. Their global reputation for engineering excellence, project execution capabilities, and commitment to quality is well-established.

    “We are confident that their expertise will be invaluable in delivering this critical infrastructure efficiently and to the highest standards.”

  • Fed Govt subsidises electricity with N471.69b

    Fed Govt subsidises electricity with N471.69b

    • DisCos collect N657.40b revenue

    The Federal Government subsidized electricity with N471.69 billion in the fourth quarter of 2024 (Q4 2024), according to the Nigerian Electricity Regulatory Commission (NERC).

    It represented 57 per cent of the total energy generated in the period under review, being payment of subsidy arising from the suspension of the end-use customer tariff at the rates payable in July 2024, according to NERC’s document entitled: “Quarterly Report 2024.”

    The report said: “The NBET invoice payable by the DisCos for 2024/Q4 was only N360.97 billion because the FGN has taken responsibility for ~57per cent (N471.69 billion) of the total generation costs in the form of subsidies arising from the freezing of end-use customer tariffs at the rates payable in July 2024.”

    NERC said both local and international bilateral customers made payments during 2024/Q4 for outstanding Market Operator (MO) invoices from previous quarters.

    According to the report, while “the international bilateral customers paid $2.98 million while the domestic bilateral customers paid N135.81 million.”

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    NERC said the total revenue collected by all DisCos in 2024/Q4 was N509.84 billion out of the N658.40 billion that was billed to customers.

     The report noted that it translated to a collection efficiency of 77.44 per cent.

    In comparison, said NERC, the total revenue collected by all DisCos in 2024/Q3 was N466.69 billion out of the N626.02 billion billed to customers, which translated to a 74.55per cent collection efficiency.

    It also said the 77.44per cent collection efficiency recorded in 2024/Q4 is +2.89pp higher than the collection efficiency recorded in 2024/Q3 (74.55per cent).

    NERC said similar to the trend observed in 2024/Q3, Eko (90.00per cent) and Ikeja (82.63per cent) DisCos recorded the highest collection efficiencies in 2024/Q4.

    Conversely, the report said, Jos DisCo recorded the lowest collection efficiency at 49.68 per cent.

    It further noted that a comparison of DisCos performance shows that eight DisCos recorded improvements in collection efficiency between 2024/Q3 and 2024/Q4, with Yola (+13.93pp) and Kano (+9.88pp) recording the greatest improvements.

    NERC said conversely, “the remaining three DisCos recorded declines in collection efficiency with Jos (-3.61pp) and Abuja (-3.39pp) DisCos having the most significant declines over the period.”

    On Aggregate Technical, Commercial and Collection (ATC&C) Loss: the report explained that “the Aggregate Technical, Commercial and Collection (ATC&C) loss is a summation of – i) billing losses incurred by a DisCo due to its inability to bill 100per cent of energy delivered to customers (technical and commercial losses); ii) collection losses arising from the DisCo’s inability to collect 100per cent of the bills issued to customers.”

    NERC said the weighted average ATC&C loss across all the DisCo in 2024/Q4 was 35.22 per cent, comprising technical and commercial loss (16.34per cent) and collection loss (22.56per cent).

    It added that the ATC&C loss of 35.22per cent was +10.44pp higher than the MYTO target (24.78per cent) and translates to a cumulative revenue loss of N139.08 billion across all DisCos.

    The report said the ATC&C loss decreased by -3.88pp (improved performance) compared to 2024/Q3 (39.10per cent).

    It stressed that only Yola and Eko DisCos achieved their target ATC&C, as provided in the MYTO during the quarter.

    The other DisCos, according to NERC, failed to achieve their target ATC&C, with Kaduna DisCo recording the worst underperformance relative to the target ATC&C (Actual –60.65per cent vs. target – 25.00per cent)

    On market remittance, NERC said it in  2024/Q4, the cumulative upstream invoice payable by DisCos was N408.86 billion, consisting of N360.97 billion for DRO-adjusted generation costs from NBET2 and N47.89 billion for transmission and administrative services by the Market Operator (MO).

    The report said out of this amount, the DisCos collectively remitted a total sum of N378.93 billion (N336.63 billion for NBET and N42.30 billion for MO) with an outstanding balance of N29.92 billion. Continuing, the report said, “This translates to a remittance performance of 92.68per cent in 2024/Q4 compared to the 83.77per cent recorded in 2024/Q3.

    “The disaggregated DisCo remittance performance to the market for 2024/Q4 is presented in Figure D.

    “Remittance by Special and Bilateral Customers: In 2024/Q4, the six international bilateral customers purchasing power from the grid connected GenCos made a cumulative payment of $5.21 million against the $14.05 million invoice issued to them by the MO for services rendered in 2024/Q4.

    “Similarly, the domestic bilateral customers made a cumulative payment of N1,252.58 million against the N1,977.02 million invoice issued to them by the MO for services rendered in 2024/Q4.”

  • Ex-Delta SSG denies frustrating electricity project

    Ex-Delta SSG denies frustrating electricity project

    A former Secretary to the Delta State Government, Chief Ovuzorie Macaulay, has denied frustrating the completion of the Ozoro 132 KVA substation electricity project. 

    Through his lawyer Mr. Andrew O. Odum (SAN), Principal Partner of Seat of Wisdom Chambers, Asaba, Macaulay faulted a report (not by The Nation) blaming him for stalling the project.

    In a letter Mr. Matthew Edevbie, he demanded an immediate retraction of alleged defamatory publication.

    The letter reads in part: “Our client has brought to our attention that following the arrest of Delta State-based comedian Ajirioghene Otagba, popularly known as MC2 Kingdom, sometime in February 2025, over a Facebook video post where the said comedian criticised the alleged abandonment of the Ozoro 132 KVA substation electricity project in Isoko North Local Government Area of Delta State awarded to Income Electrix Ltd, Mr. Matthew Edevbie who is the Chief Executive Officer of the Income Electrix Limited published certain unfounded and defamatory allegations against our client.

    “These allegations were contained in a statement titled: ‘The MC2 Kingdom Comedy Saga: Our Position’ Dated 16th February, 2025.

    “The said publication and in your recorded oral interview, which has been widely circulated on social media, you falsely accused our client of using his office as the Commissioner for Energy under Governor Emmanuel Uduaghan’s administration to stall and frustrate the completion of the Ozoro 132 KVA substation electricity project. 

    “This project, awarded to Income Electrix Ltd during Governor James Ibori’s administration, remains incomplete, and your publication falsely attributes blame to our client.

    “In your statement, you alleged: ‘Upon Governor Uduaghan taking over in 2007, Comrade Macaulay Ovuozourie, as Commissioner for Energy, stalled the project on the basis that the new governor was not interested in it.

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    “A screenshot of the said defamatory statement is attached herewith as Annexure 1.

    “It is also our instruction that in your recorded oral interview which you caused to be published, you falsely claimed that it took you four years of begging our client who is a native of Owhelogbo and the government in which he had tremendous influence before the said project was released to the Niger Delta Development Commission, NDDC.

    “Our client categorically denies these allegations in their entirety. These statements are not only false and unwarranted but were also published with malicious intent to ridicule, malign, and defame our client’s character.

    “By the said defamatory publication as circulated on social media, you clearly communicated to the public that our client is a dubious and dishonest politician, a covert, a liar, a man without character and personality and that our client hates his people of Isoko nation.

    “Your action was clearly and deliberately aimed at reducing the esteem and estimations of our client in the eyes of the public and those who have read the said publication.

    “Furthermore; they were clearly designed to incite the lsoko ethnic nationality against our client by portraying him as a dishonest, unprincipled, and anti-Isoko politician.

    “As a direct consequence of your publication, some political figures have distanced themselves from our client and our client has suffered damage to his reputation as a seasoned politician, former Secretary to the State Government, former Commissioner for Energy, former Commissioner for Special Duties and Conflict Resolution, former Chief of Staff, Government House, past Chairman of the Nigeria Labour Congress, Delta State chapter, Philanthropist, and community leader.

    “Your deliberate and malicious publication constitutes defamation under the law.

    “You also know that our client is the holder of the title of Okiroro of Isoko nation, a title bestowed on him by all the traditional rulers of Isoko ethnic nationality in recognition of his selfless contributions to the entire lsoko nation.

    “Our client is shocked at your false and defamatory publications against him, seeing that our client has maintained a cordial relationship with you and your family for many years.

    “You are respected at home and abroad and our client has held you in very high esteem.

    “There is no doubt that your recent unwarranted and unprovoked attacks on our client are intentional, premeditated and detestable.”

    “Following your publication, our client has made several efforts to explain to you the effect thereof and gave you reasons and requested that you delete the publication and to apologise to our client.”

    “Despite entreaties from well-meaning friends and family members, you have refused to comply therewith.

    “Our prayers: In light of the foregoing, our client demands the immediate retraction and deletion of the defamatory statements and all related posts from all platforms where they were published; a public, unreserved apology, addressed to our client and published on the same platforms where the defamatory statements were circulated.

    “These actions must be completed within 14 days from the date of this letter.

    “Failure, refusal, or neglect to comply with these demands within the stated timeframe will leave our client with no choice but to initiate legal action against you without further notice.

    “We trust that you will take appropriate steps to rectify this matter promptly.”

  • FG subsidised electricity with ₦471.69b in Q4 2024

    FG subsidised electricity with ₦471.69b in Q4 2024

    The Federal Government subsidised electricity with N471.69 billion in the fourth quarter of 2024 (Q4 2024), according to the Nigerian Electricity Regulatory Commission (NERC).

    It represented 57 per cent of the total energy generated in the period under review, being payment of subsidy arising from the suspension of the end-use customer tariff at the rates payable in July 2024.

    NERC broke the news in its document titled: “Quarterly Report 2024.”

    The report said: “The NBET invoice payable by the DisCos for 2024/Q4 was only ₦360.97 billion because the FGN has taken responsibility for ~57% (₦471.69 billion) of the total generation costs in the form of subsidies arising from the freezing of end-use customer tariffs at the rates payable in July 2024.”

    NERC said local and international bilateral customers made payments during 2024/Q4 for outstanding Market Operator (MO) invoices from previous quarters.

    According to the report, while “the international bilateral customers paid $2.98 million while the domestic bilateral customers paid ₦135.81 million.”

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    NERC said the total revenue collected by all DisCos in 2024/Q4 was ₦509.84 billion out of the ₦658.40 billion that was billed to customers.

    The report noted that it translated to a collection efficiency of 77.44%.

    In comparison, said NERC, the total revenue collected by all DisCos in 2024/Q3 was ₦466.69 billion out of the ₦626.02 billion billed to customers, which translated to a 74.55% collection efficiency.

    It also said the 77.44% collection efficiency recorded in 2024/Q4 is +2.89pp higher than the collection efficiency recorded in 2024/Q3 (74.55%).

    NERC said similar to the trend observed in 2024/Q3, Eko (90.00%) and Ikeja (82.63%) DisCos recorded the highest collection efficiencies in 2024/Q4.

    Conversely, the report said, Jos DisCo recorded the lowest collection efficiency at 49.68%.

    It further noted that a comparison of DisCos performance shows that eight DisCos recorded improvements in collection efficiency between 2024/Q3 and 2024/Q4, with Yola (+13.93pp) and Kano (+9.88pp) recording the greatest improvements.

    NERC said conversely, “the remaining three DisCos recorded declines in collection efficiency with Jos (-3.61pp) and Abuja (-3.39pp) DisCos having the most significant declines over the period.”

  • Nigeria’s power crisis and its unbearable toll

    Nigeria’s power crisis and its unbearable toll

    • By Chiechefulam Ikebuiro

    Sir: The Nigerian Meteorological Agency (NiMet) has issued a heat stress alert for several states, warning that rising temperatures and high humidity in the coming days could lead to significant thermal discomfort and increased health risks. At a time when reliable electricity is most needed, Ikeja Electric and other power distribution companies have as usual demonstrated an alarming level of incompetence. 

    While the recent invasion of Ikeja Electric’s offices by the military sets a dangerous precedent and must be condemned, the question remains: should the rest of us suffer as a result? Let’s be clear—this attack doesn’t change the undeniable fact that Ikeja Electric and other power distribution companies have shown some of the highest levels of incompetence imaginable. But in the midst of this chaos, is anyone considering the severe consequences, especially for the most vulnerable, like children and the elderly, who are at greater risk of heat-related illnesses?

    This situation highlights a major problem Nigeria has faced for decades: the poor state of the electricity supply. Despite numerous attempts to fix the power sector through some forms of reforms and privatization especially, the system remains largely ineffective, leaving millions of Nigerians without stable electricity. This isn’t just an inconvenience; it affects people’s health, the economy, and overall quality of life.

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    The bulk stops at President Bola Tinubu’s desk. It’s time he recognizes the urgency of this situation. Minister of Power, Bayo Adelabu, has a responsibility to ensure that electricity distribution companies are held accountable for their failures and that necessary infrastructural investments are made to improve power generation and distribution.

    There has been too much talk and too little action. We have seen roadmap after roadmap from the Minister of Power. We have seen the National Energy Compact (NEC), described as an ambitious energy access program. We have seen the National Integrated Electricity Policy and Strategic Implementation Plan (NIEP-SIP). Yet, since their announcements, it’s been crickets!  Enough of the excuses and endless discussions. If the kitchen is too hot, as they say, then the minister should step aside or the president should excuse him!

    Nigeria’s economic growth is deeply tied to its energy supply. Without reliable electricity, businesses struggle to operate efficiently, healthcare facilities face constant operational challenges, and ordinary citizens are forced to depend on expensive and environmentally damaging alternatives like generators. To make matters worse, there’s the added burden of constantly buying fuel to power these generators, especially with the high cost of petrol. It’s overwhelming, and the average Nigerian’s purchasing power hasn’t improved. This demands urgent attention.

    Now, with extreme weather conditions posing an even greater threat, the lack of reliable electricity is no longer just an economic issue-it is now a matter of public health and survival. If the Tinubu administration is desirous of fostering economic stability and improving the quality of life for Nigerians, power sector reforms must be treated as a top priority. Beyond policy pronouncements, there must be a clear, actionable roadmap for resolving the power crisis. Addressing electricity challenges effectively could solve half of our issues

    The current heatwave has once again shown how critical it is to have a functioning power sector. Nigerians deserve better. It’s time for the government to take real action and provide lasting solutions to a problem that has gone on for far too long.

    Chiechefulam Ikebuiro,

    chiechefulamikebuiro@gmail.com

  • Nigeria exports N75.66b electricity

    Nigeria exports N75.66b electricity

    In the fourth quarter of 2024 (Q4 2024) Nigeria exported N75.66 billion to African countries.

    The National Bureau of Statistics (NBS) disclosed this in its document titled: “Foreign Trade Statistics Report (Q4 2024).”

    The countries Nigeria exports electricity to are Togo, Benin Republic and Republic of Niger.

    But the report also said in the period under review, Nigeria exported bituminous minerals worth N1.62 trillion.

    NBS said, “Analysis by commodities showed that the main commodities exported to African countries in the quarter under review were Petroleum oils and oils obtained from bituminous minerals valued at N1,628.85 billion accounting for 79.77 per cent of total exports to Africa, Electrical energy with N75.66 billion or 3.71 per cent, Dredgers with N73.99 billion or 3.62 per cent, Urea, whether or not in aqueous solution N40.34 billion or 1.98 per cent, and Cigarettes containing tobacco with N32.50 billion or 1.59 per cent.

    The top five products accounted for 90.66 per cent of total exports to Africa, according to the report.

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    NBS further noted that in Q4, 2024, the value of exports to African countries stood at N2.042.06 trillion, while imports amounted to N514.96 billion.

    The report said Nigeria’s exports to Africa were mainly to South Africa with N761.95 billion, Ivory Coast with goods valued at N756.37billion, Senegal Republic with N236.87 billion, Cameroon with N54.02 billion, and Togo with N47.97 billion altogether representing 90.95.per cent of exports to Africa.

    NBS said on the other hand, Nigeria’s major import partners in Q4 2024 were South Africa with goods valued at N148.84 billion, Egypt with N87.39 billion other import origins are

    Equatorial Guinea with N43.50 billion, Ivory Coast with N41.40 billion and Swaziland with N40.55 billion.

    NBS said on the other hand, Nigeria’s imports from African countries in Q4 2024 comprised mainly plasters with N35.47 billion or 6.89 per cent, Other Vehicles for goods transport, petrol fuel, engine 5tonne, excl. dumpers, CKD with N32.89 billion or 6.39 per cent, Butanes with N28.42 billion or 5.52 per cent, Mixtures of odoriferous substances of a kind used in the food or drink industries N28.41 billion or 5.52 per cent, and Crude palm oil with N18.13 billion or 3.52 per cent of total imports from African countries.

    NBS said on the other hand, Nigeria’s imports from ECOWAS countries were mainly Crude palm oil valued at N10.13 billion or 22.39 per cent, Petroleum bitumen valued at N14.38 billion or 17.76 per cent, Cocoa powder, containing added sugar or other sweetening matter worth N8.13 billion or 10.04 per cent, Beauty or makeup preparations valued at N4.93 billion or 6.09 per cent, and other Liquefied petroleum gases and other gaseous hydrocarbons worth N4.01 billion or 4.95 per cent of total export from ECOWAS region.

  • Nigeria exports N75.66b electricity in Q4 2024 – NBS

    Nigeria exports N75.66b electricity in Q4 2024 – NBS

    In the fourth quarter of 2024 (Q4 2024) Nigeria exported N75.66 billion to African countries.

    The National Bureau of Statistics (NBS) disclosed this in its document titled: “Foreign Trade Statistics Report (Q4 2024).”

    The countries Nigeria exports electricity to are Togo, Benin Republic and Republic of Niger.

    But the report also said in the period under review, Nigeria exported bituminous minerals worth N1.62 trillion.

    NBS said, “Analysis by commodities showed that the main commodities exported to African countries in the quarter under review were Petroleum oils and oils obtained from bituminous minerals valued at ₦1,628.85 billion accounting for 79.77 per cent of total exports to Africa, Electrical energy with ₦75.66 billion or 3.71 per cent, Dredgers with ₦73.99 billion or 3.62 per cent, Urea, whether or not in aqueous solution ₦40.34 billion or 1.98 per cent, and Cigarettes containing tobacco with ₦32.50 billion or 1.59 per cent.

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    The top five products accounted for 90.66 per cent of total exports to Africa, according to the report.

    NBS further noted that in Q4, 2024, the value of exports to African countries stood at ₦2.042.06 trillion, while imports amounted to ₦514.96 billion. 

    The report said Nigeria’s exports to Africa were mainly to South Africa with ₦761.95 billion, Ivory Coast with goods valued at ₦756.37billion, Senegal Republic with ₦236.87 billion, Cameroon with ₦54.02 billion, and Togo with ₦47.97 billion altogether representing 90.95.per cent of exports to Africa. 

    NBS said on the other hand, Nigeria’s major import partners in Q4 2024 were South Africa with goods valued at ₦148.84 billion, Egypt with ₦87.39 billion other import origins are 

    Equatorial Guinea with ₦43.50 billion, Ivory Coast with ₦41.40 billion and Swaziland with ₦40.55 billion.

    NBS said on the other hand, Nigeria’s imports from African countries in Q4 2024 comprised mainly plasters with ₦35.47 billion or 6.89 per cent, Other Vehicles for goods transport, petrol fuel, engine=<5tonne, excl. dumpers, CKD with ₦32.89 billion or 6.39 per cent, Butanes with ₦28.42 billion or 5.52 per cent, Mixtures of odoriferous substances of a kind used in the food or drink industries ₦28.41 billion or 5.52 per cent, and Crude palm oil with ₦18.13 billion or 3.52 per cent of total imports from African countries. 

    NBS said on the other hand, Nigeria’s imports from ECOWAS countries were mainly Crude palm oil valued at ₦10.13 billion or 22.39 per cent, Petroleum bitumen valued at ₦14.38 billion or 17.76 per cent, Cocoa powder, containing added sugar or other sweetening matter worth ₦8.13 billion or 10.04 per cent, Beauty or makeup preparations valued at ₦4.93 billion or 6.09 per cent, and other Liquefied petroleum gases and other gaseous 

    hydrocarbons worth ₦4.01 billion or 4.95 per cent of total export from ECOWAS region. 

  • Reps seek tariff hike, others for imported electricity meter

    Reps seek tariff hike, others for imported electricity meter

    House of Representatives Committee on Power has urged the Federal Government to impose special tariffs and remove waivers for imported meters in the country.

    The Committee believes that taking these measures will boost local production, create jobs, preserve the value of the Naira and ginger the economy.

    House Chairman Committee, Victor Nwokolo, gave the advice when he led his committee members on a visit to the Metering Solutions Manufacturing Services Limited (MSMSL) in Akwa Ibom State, said the company with annual production capacity of 3.6million, can bridge the Metering gap in the country if supported.

    He expressed satisfaction with the quality of meters produced by the company and urged  the Federal Government to support indigenous meter manufacturing by discouraging the importation of electricity meters.

    He maintained that the administration of President Bola Tinubu has achieved giant strides in the power sector, adding that the Presidential Metering Initiative (PMI) was doing well in its assignment.

    He said: “I am impressed with the quantity and quality of meters produced by Metering Solutions Manufacturing Services limited. I want to specially commend the immediate past governor of the state, Mr. Udom Emmanuel for creating the enabling environment for the company to thrive here.

    “The new agenda of the President Tinubu administration is to encourage local investors. To achieve this, we must conserve our foreign exchange, increase the value of the Naira by patronizing local manufacturers.

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    “The Nigerian Local Content Law must be considered. It is not going to be business as usual by allowing Chinese bring in finished products. The negative effect of bringing in meters and other finished products is that how do our teeming youths get employment?

    “When those imported meters get bad who repairs them for you? Let’s patronize our local manufacturers. When they get bad, we can return them to the Discos. All they need to do is put them through their computers, get them repaired and returned to you.

    “There is no point giving waivers to the Chinese to import metres or whoever brings the products. There are usually tariffs and penalties issued to people who import cars into the country,”

    Speaking earlier, the Managing Director of Metering Solutions Manufacturing Services Limited, Tolulope Ogunkolade expressed displeasure over the non-patronage of locally manufactured metres.

    Ogunkolade said: “Chinese companies were allocated 1.3 million meters to import into Nigeria while local manufacturing companies were sidelined.”