NEWS
How NERC’s New Commercial Billing Threatens Healthcare, Economy
The crippling impact of the newly introduced electricity billing, which classifies locations and businesses into two buckets of Band A or Band B has been decried.
President, Save-A-Life Foundation, Dr Richard Okoye, has expressed grave concerns about the scary electricity bill served on his hospital in Rivers State by the Port Harcourt Electricity Distribution (PHED).
His outcry was contained in a video clip which went viral on Thursday,
Following the new billing classification, which put his hospital in Band A, Dr Okoye was aggrieved that his monthly bill jumped to N25,300,000, which he noted would have devastating effects on the healthcare sector in Nigeria, as well as other businesses.
Dr Okoye is not the only person speaking up against the excessive hike in electricity bills.
President, the Trade Union Congress (TUC), Festus Osifo, had made a similar call during the May Day Rally in Abuja, where he strongly urged the Nigerian Electricity Regulatory Commission (NERC) to reverse the tariff hike within a week.
Osifo maintained that keeping the current billing levels would have severe impact on Nigeria’s economic growth, thus stressing the urgency of effective energy management to prevent further setbacks.
He maintained that the “glaring incompetence in managing this sector for the collective welfare of our citizens,” is a major factor constraining Nigeria’s economy.
The labour leader asserted that, “It is unethical to force Nigerians to pay higher tariffs for non-existent electricity. Estimated billing is an extortion and a daylight robbery against Nigerians.
Recall that the NERC on April 3, 2024 approved a significant increase in electricity tariffs for customers falling under the Band A classification.
Vice Chairman. NERC, Musliu Oseni, declared that the adjustment would raise the rate from the current N66 per kilowatt-hour to N225 per kilowatt-hour.
Though the billing reviews introduced by the NERC had attracted wide condemnation from Nigerians, the government had opted to stand behind the Commission.
For the government, the over 300 percent upward review was a take-it or leave-it for electricity consumers.
Nigeria’s Minister of Power, Adebayo Adelabu, who defended the scandalous review before the Senate pointed to the cost of infrastructure required to keep the sector running.
In his opinion, the only way to make the sector attractive to investors was to get the consumers to bear the cost of building and maintaining the infrastructure, which would also make the sector bankable.
Adelabu said, “For this sector to be revived, government need to spend nothing less than 10 billion dollars annually in the next 10 years.
“This is because of the infrastructure requirement for the stability of the sector. But government cannot afford that. And so we must make this sector attractive to investors and to lenders.
“So for us to attract investors and investment, we must make the sector attractive, and the only way it can be made attractive is that there must be commercial pricing.”
However, Dr Okoye’s position, which Netizens applaud, is that the government’s decision to jerk up Band A’s tariff, would be an epidemic against the healthcare sector and other busiensses.
He described moving from paying N66 per kilowatt to N225 per kilowatt as a ‘Band A tariff epidemic”, capable of destroying the healthcare system of Nigeria.
Dr Okoye said, “By reason of us (the hospital) being in Band A, our monthly power bill is now shooting up to N25,300,000. That’s crazy; the hospitals are not business centres but only renders essential services to society.
“This Band A tariff epidemic is bound to destroy the country’s healthcare system.
“We are already struggling with an influx of doctors leaving the country. The majority of the healthcare system is struggling, as it were. If nothing is done to urgently revisit that decision, the Band A tariff epidemics will turn most hospitals into morgues. Something that could be preventable.
“Power (electricity) is the life of the healthcare delivery. Patients have hope and a sense of living again when the light is in the hospital. In addition to that, the majority of emergency drugs and anaesthetic drugs always want to be at a particular temperature which can be sustained by electricity. If this decision persists, it will come to a point where most of the drug will be in an unusable state, and it is already happening.”
Narrating his experience during a medical engagement to elaborate on the need for a hospital to be on steady power supply, Dr Okoye pointed out that an elderly woman who was supposed to be operated upon was given the requisite volume of propofol needed for her to relax but could not sleep because the potency of the drug has reduced due to poor storage, occasioned by inadequate power supply.
“We were surprised and thought the woman was alcoholic, and the anaesthetic increased the dose a little and asked again, only for the woman to confirm that she was fine again.
“After evaluation, it was discovered that though the drug was original but not well preserved, it would lose potency.
“That is to say, those who are diabetic in Nigeria should brace up because the majority of them would see no way to buy their drugs.
“In fact, they need to travel miles to get a hospital with a steady light to get drugs they are taking.
“While this Band A is on, teaching hospitals and Federal Medical Centres which used to enjoy some relative form of light because perhaps they would not be billed like other people. They are now downgrading them to Band B and channelling Band A to those they feel can pay to the detriment of the people.
“I can count on and on. Power (supply) is what determines whether a surgical procession would be successful or not. It determines the ‘before and after’ outcome of any surgery.”
“If the instruments are not properly sterilised, they may be the ones resistant to all antibiotics known, that even when we start getting it right, the worst has already happened,” Dr Okoye pointed out.
According to him, the Nigerian government must act fast in this regard to avoid it having a severe impact on the hospitals, the healthcare system, the health of Nigerians, and businesses generally.
“My heart melts when a teaching hospital can pack its instruments to go and sterilise in another hospital because it doesn’t have light. The FG should act because it is preventable as it is now,” he stressed.
It would appear thought that the government might not have the final say on this, as a Federal High Court in Kano had already issued restraining orders on the NERC and the Kano Electricity Distribution Company (KEDC).
The court ordered the parties to refrain from implementing the new electricity tariff for Band A consumers.
Former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has criticised the Federal Government’s claims that Nigeria’s economy is on the path to recovery, arguing that worsening hardship and the decline of the country’s manufacturing sector paint a different picture.
Atiku made the remarks in a statement issued on Monday by his Senior Special Assistant on Public Communication, Phrank Shaibu, accusing the Presidency of relying on “propaganda” and macroeconomic statistics that do not reflect the realities faced by ordinary Nigerians.
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According to the former vice president, the continued shutdown of manufacturing firms and the financial distress confronting many others are clear indications that the economy is deteriorating despite official claims of progress.
“A government cannot claim its economic policies are working when the country’s industrial sector is actively shutting down. Nations do not build prosperity by celebrating macroeconomic statistics while their factories close their gates,” the statement read.
Citing figures from the Manufacturers Association of Nigeria (MAN), Atiku said 767 manufacturing companies had shut down, while another 335 were operating under severe distress.
He also claimed that manufacturers were holding about ₦2.14 trillion worth of unsold finished goods, blaming the situation on the collapse in consumers’ purchasing power.
According to him, several multinational companies, including Procter & Gamble, GlaxoSmithKline, Sanofi and Kimberly-Clark, have either exited local manufacturing or shut down production in Nigeria, while some indigenous firms have also suspended operations.
Atiku further alleged that manufacturers spent approximately ₦1.1 trillion on diesel to power their factories due to unreliable electricity supply and rising energy costs.
“Factories do not shut down because the opposition writes press statements. Manufacturers do not accumulate trillions of naira in unsold goods because critics hold press conferences.
“They leave because the economic environment has become increasingly hostile to production, investment and enterprise,” he stated.
The ADC presidential candidate argued that while the Presidency continues to celebrate improvements in Gross Domestic Product (GDP), debt ratios and other macroeconomic indicators, millions of Nigerians are struggling with rising food prices, unemployment and declining purchasing power.
He questioned why poverty and food insecurity remain widespread if the government’s reforms are yielding the benefits being advertised.
“Governments are not elected to improve spreadsheets. They are elected to improve the lives of their people. Nigerians cannot eat GDP. They cannot cook with debt-to-GDP ratios. They cannot pay school fees with statistical projections,” Atiku said.
The former vice president also criticised the administration’s continued borrowing despite claims that government revenues had improved following the removal of petrol subsidy and reforms in tax administration.
He challenged the Federal Government to explain why borrowing remains at record levels if fiscal reforms have significantly strengthened public finances.
Atiku further accused the administration of failing to demonstrate how the gains from subsidy removal have translated into improved infrastructure, healthcare, education and social welfare, maintaining that Nigerians deserve to know where the promised dividends of the policy have gone after enduring record fuel prices, soaring transport costs and a sharp rise in the cost of living.
The statement came in response to the Presidency’s recent defence of President Bola Tinubu’s economic reforms, in which it argued that policies such as fuel subsidy removal and exchange-rate liberalisation had stabilised the economy and laid the foundation for long-term growth.
There was relief and celebration in Kebbi State on Monday as abducted High Court Judge, Hon. Justice Faruku Hassan Bunza, regained his freedom after spending one week in the custody of suspected bandits.
A family member confirmed the development, revealing that the judge had safely returned home a few hours before speaking to journalists.
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“We are in jubilation and full of gratitude to God for seeing our own return safely from captivity. He was just released and has returned home now after spending one week with the bandits,” the relative said.
The family also expressed appreciation to the Kebbi State Judiciary, security agencies, and residents of the state for their prayers, support, and solidarity throughout the period of the judge’s captivity.
“We sincerely thank and appreciate the Kebbi State Judiciary, the security agencies, and the entire people of Kebbi State who contributed in different ways, offered prayers, and sent messages of sympathy. Your concern and support gave us strength, and we are grateful for your solidarity,” the family member added.
Although the judge’s release has been confirmed, the circumstances surrounding how he regained his freedom remain unclear.
“Other details of how he was released will be made available later,” the source said.
As of the time of filing this report, neither the Kebbi State Judiciary nor security agencies had issued an official statement regarding the judge’s release.
Biz tellers recalls that Justice Bunza was abducted last week, triggering widespread concern across Kebbi State and prompting calls from residents and stakeholders for his immediate and unconditional release.
The Federal Government has rolled out a sweeping new directive barring Ministries, Departments and Agencies (MDAs) from awarding contracts or entering into financial commitments without first securing budgetary approval and cash backing.
The new policy, aimed at strengthening fiscal discipline and tackling the persistent problem of abandoned projects, was contained in a Federal Treasury Circular dated July 31, 2026, and signed by the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi.
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Addressed to ministers, permanent secretaries, heads of extra-ministerial departments and agencies, accounting officers and federal pay officers, the circular said the fresh operational guidelines became necessary following widespread violations of the Public Procurement Act, 2007, and other financial regulations governing public expenditure.
“Further to the Treasury Circular… captioned ‘Revised Policy on Cash Management and Bottom-Up Cash Plan Operational Guidelines,’ it has become necessary to strengthen and deepen the implementation of the policy sequel to the observed non-compliance with the Public Procurement Act, 2007, and other extant laws and regulations,” the circular stated.
It added, “To ensure full compliance and seamless implementation of the policy, the following operational guidelines for the implementation of the 2026 capital budgets are hereby issued.”
Under the new guidelines, no MDA is permitted to issue letters of award, sign contracts or incur financial obligations unless a Warrant or Authority to Incur Expenditure (AIE) covering the full or committed contract sum has been released by the Minister of Finance and Coordinating Minister of the Economy to the Accountant-General of the Federation.
The circular stated, “No expenditure shall be incurred except on the authority of a Warrant/AIE (including employee payables).
Accordingly, no MDA shall issue letters of award, sign contracts, or enter into any financial obligations unless the corresponding Warrant/AIE covering the full or committed portion of the contract sum has been duly released by the Honourable Minister of Finance and Coordinating Minister of the Economy to the Accountant-General of the Federation.”
To ensure compliance, the Office of the Accountant-General directed MDAs to attach copies of Warrants or AIEs generated through the Government Integrated Financial Management Information System (GIFMIS) as proof that funds are available before contracts are awarded or payments processed.
The circular also warned that financial commitments, including purchase invoices and employee payables, must never exceed available warrant balances.
“All MDAs shall ensure that financial commitments (purchase invoices and employee payables) are limited to uncommitted warrant balances; and at no time should financial commitments exceed the amount of Warrants/AIEs available,” it stated.
In another directive, the Bureau of Public Procurement was instructed to process only applications for “No Objection” certificates that are supported by valid Warrants or AIEs.
The Accountant-General further reminded accounting officers that awarding contracts without adequate funding is a violation of the law.
“Accounting Officers are invited to note that it is an offence under the ICPC Act 2000 to award or sign any contract without budgetary provision, approval and cash backing,” the circular warned.
To improve budget implementation, the Federal Government directed all MDAs to submit annual and quarterly cash plans for their capital budgets to the Office of the Accountant-General. It also instructed agencies to prioritise projects in line with government policy objectives, while the Cash Management Technical Committee will continue reviewing implementation plans and advising on priority projects.
The latest directive reinforces the Federal Government’s revised cash management policy introduced in 2024 and is expected to reduce abandoned projects, curb the accumulation of unpaid contractual liabilities and ensure that capital projects are executed only when sufficient budgetary provisions and cash backing are in place.
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