NEWS
Nigeria’s Electricity Subsidy Falls by 40% in Q2 2024 Amid Tariff Review
The Nigerian Electricity Regulatory Commission (NERC) has reported a significant reduction in the federal government’s electricity subsidy obligation, which amounted to ₦380 billion in the second quarter (Q2) of 2024.
This marks a 40 percent decline, or ₦253.24 billion, compared to the ₦633.3 billion subsidy recorded in the first quarter (Q1).
In its quarterly report released on Friday, NERC attributed the reduction to an upward adjustment of the electricity tariff for Band A customers, implemented in April.
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The commission explained that the electricity subsidy obligation had dropped from 90.57 percent of the total GenCo invoice in Q1 to 52.51 percent in Q2.
This translated to an average monthly subsidy of ₦126.69 billion for the second quarter.
“It is important to note that due to the absence of cost-reflective tariffs across all DisCos, the government incurred a subsidy obligation of ₦380.06 billion (52.51% of total NBET invoice) in 2024/Q2,” NERC said in its report.
The report highlighted that the federal government has been covering the gap between the cost-reflective and approved tariffs, providing subsidies as a result.
The subsidies are applied specifically to the generation cost payable by electricity distribution companies (DisCos) to the Nigerian Bulk Electricity Trading Plc (NBET) through a DisCo’s Remittance Obligation (DRO).
In an effort to reduce the fiscal burden, NERC approved a tariff increase on April 3 for Band A customers, who receive 20 hours of daily power supply.
The new tariff rate of ₦225 per kilowatt (kW), up from ₦66, is expected to significantly cut electricity subsidies by about ₦1.14 trillion for the 2024 fiscal year.
While the tariff increase for Band A customers has been implemented, the rates for customers in Bands B to E have remained unchanged since December 2022, as part of the government’s subsidy policy.
The reduction in the subsidy obligation represents a major shift towards more cost-reflective tariffs in Nigeria’s power sector, though significant subsidies still remain due to the tariff structure.
NEWS
Your Presidency Left Nigeria in Ruins, Tinubu Is Fixing It – Dare to Obasanjo
Special Adviser on Public Communication and Orientation to President Bola Ahmed Tinubu, Sunday Dare has strongly criticized former President Olusegun Obasanjo, accusing him of presiding over Nigeria’s most corrupt administration.
Dare’s remarks, made on his X (formerly Twitter) handle, were in response to comments by Obasanjo, who recently described Nigeria under Tinubu as suffering from “widespread corruption, poor leadership, and immorality.”
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Obasanjo, who served as president from 1999 to 2007, made the remarks during a speech at Yale University, claiming that poor governance under Tinubu was driving the nation toward failure.
However, Dare dismissed these claims, accusing Obasanjo of hypocrisy and questioning his legacy.
In a series of posts, Dare attacked Obasanjo’s credibility, describing him as a leader whose administration was marked by corruption and failed initiatives.
“Former President Obasanjo is a man with a tremendous capacity for mischief, and Nigerians know it.
“His journey along the path of hallucinations has never been in doubt, so is his descent into muddling facts, forgetting that he ran a Presidency on record as the most corrupt. His recent diatribe at Yale University lacks sincerity,” Dare wrote.
Dare specifically pointed to allegations of mismanagement under Obasanjo, referencing a controversial $16 billion power project initiated during his presidency, which critics claim failed to deliver tangible results.
“We all know what happened under his watch and how, up till the present moment, there has been no explanation as to how he wasted a whopping $16 billion in generating megawatts of darkness across the nation,” Dare said.
He also accused Obasanjo of undermining Nigeria’s democracy through his push for a third term in office, a move that was widely criticized and ultimately failed.
“Democracy suffered mortal wounds under his watch, only capped by his murderous rage for an ill-fated third term,” Dare added.
Dare framed Tinubu’s administration as one working to address the systemic failures left behind by past governments, including Obasanjo’s.
He urged Nigerians to focus on the progress being made under Tinubu’s leadership.
“The point here is that Obasanjo should take time off this habit of pulling down leaders, especially his successors, and try to interrogate himself on how he has contributed to the parlous state of the Nigerian nation which President Bola Ahmed Tinubu is now spiritedly battling to put back on the track of development,” Dare wrote.
Invoking a Yoruba proverb, Dare likened Obasanjo’s criticism to “market noise” that should be ignored, encouraging Nigerians to support Tinubu’s “Renewed Hope Agenda.”
“In this market called Nigeria, the man with the renewed hope agenda is the one that matters, and indeed Nigerians. Everything else is ariwo oja [market noise]. This administration will stay focused on bringing relief to Nigerians,” he stated.
Dare also commended Tinubu’s reforms, describing them as vital steps toward a better future for the country.
“President Tinubu will stay the course in seeing through the reforms he has instituted for a better Nigeria,” Dare assured.
NEWS
NERC Orders DisCos To Replace Faulty Meters Free Of Charge
The Nigerian Electricity Regulatory Commission (NERC) has ordered electricity distribution companies (DisCos) to replace obsolete or faulty meters for their customers free of charge.
The directive, issued in a statement on Monday, aims to address reports of unauthorized charges for meter replacement.
The directive follows announcements by Ikeja Electric Distribution Company (IKEDC) and Eko Electric Distribution Company (EKEDC) that Unistar brand prepaid meters, introduced over a decade ago, would no longer be supported from November 14.
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The companies cited technological upgrades and token identifier (TID) rollover issues as reasons for discontinuing the meters.
The NERC condemned any move by DisCos to make customers bear the cost of meter replacement, describing it as a violation of regulatory guidelines.
“The Nigerian Electricity Regulatory Commission is aware that some Distribution Companies (DisCos) have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas,” the Commission stated.
“This instruction contravenes the Commission’s Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete End-use Customer Meters in the Nigerian Electricity Supply Industry.”
The regulatory body further stressed that customers with functional meters should not be subjected to estimated billing.
“No customer with a meter should be forcefully migrated to estimated billing. If any customer’s meter is adjudged by any DisCo to be obsolete or faulty, it is the responsibility of the DisCo to replace the meter free of charge, provided that the fault was not caused by the customer,” NERC added.
The Commission also urged consumers to report cases of non-compliance, reiterating its commitment to holding DisCos accountable and protecting consumer rights.
This latest development is expected to provide relief to electricity users across the country, ensuring fair practices in meter replacement and billing procedures.
NEWS
Fire Outbreak In Jos Market Leaves Traders With Heavy Losses
A destructive fire has gutted Laranto Market in Jos North Local Government Area of Plateau State, destroying goods worth millions of naira.
The fire broke out around 11pm on Sunday after businesses had closed for the day, leaving three major sections of the market — Timber, second-hand clothes, and furniture—severely affected.
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This latest incident is part of a troubling pattern of recurrent fire outbreaks at the market.
Last year, an electrical fault caused a similar disaster, destroying goods and vehicles.
Alhaji Idris Shehu, Chairman of Laranto Market, confirmed the scale of the damage, stating that while the exact financial loss has yet to be determined, the destruction is substantial.
“We have lost millions of naira,” Shehu said. “The fire affected multiple sections, and we are still assessing the full extent of the damage.”
Umar Aliyu, Chairman of the Timber section, criticized the delayed response from the local fire service, which he believes worsened the situation.
Aliyu explained that after the fire broke out, market officials rushed to the Township fire service station, only to be told that there was no diesel to power the fire trucks.
Despite repeated appeals, the station did not respond until the Chairman of Jos North and the Commissioner for Water Resources intervened, mobilizing firefighters from the Government House to extinguish the flames.
“If the fire service had responded on time, the damage would have been less severe,” Aliyu added.