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How delayed court judgement plunged FG, manufacturers into debt — NERC



The Nigerian Electricity Regulatory Commission (NERC) has narrated how a delayed court judgement cost the Federal Government billions of naira and plunging manufacturers into debt.

The NERC Chairman, Sanusi Garba made this revelation at the 4th NERC seminar for Judges holding in Abuja.

Speaking, the NERC Chairman said, “For several years, this seminar has been a tradition and a recurring item in the Commission’s work plan until recently when steering the reform agenda took the front burner.”

He identified one of the key objectives of the seminar as aimed at stimulating a discourse on emerging legal issues relating to the Nigerian Electricity Supply Industry; and to apprise the judiciary of the recent changes in the regulatory landscape.

“Our Commission is vested with delegated powers to enact subsidiary legislation relating to the workings of the power sector. Therefore, NERÆ has powers to issue regulations and technical codes that should be complied with by all industry participants and licensees.

“The Commission further has a quasi-judicial function under which NERC Commissioners often sit as a panel to hear and adjudicate on matters relating to disputes, appeals, objections, rates, etc. in the industry. However, the success of this aspect of our work at the Commission is at the intersection of this delegated responsibility and the work of the judiciary,” He explained.

Commenting on the challenges the sector is plagued with, the NERC Chairman said, “the Nigerian Power Sector, over several years, has gone through very difficult times, but even more difficult since the commencement of the reform agenda. The reform of any economic sector often requires a number of very difficult decisions, most often with a potential for impact on the welfare of the wider public. This is relevant, as the institutions we regulate are public utilities providing essential services to the Nigerian public.

“In setting the context of our operating environment, I crave your indulgence for a bit of recent history. A civil rights lawyer commenced action against the Commission & 11 Distribution Companies (DisCos) in May 2016. This action was triggered by the Tariff Order issued by the Commission prescribing the rates chargeable by DisCos, effective 1st January 2015.

“The questions for determination were principally whether NERC had lawfully approved an increase in tariffs without significant improvement in supply; and whether NERC had sufficiently consulted prior to the approval of the new rates.

“The court hearing the matter granted an injunction on the implementation of the Tariff Order issued by the Commission, literally suspending the new rates payable by consumers. This singular action stalled the reform of the electricity market for several years while awaiting a determination of the court.

“The consequence of the protracted delay created a fiscal burden of billions of Naira on the Federal Government arising from revenue shortfalls for market participants. The Manufacturers Association of Nigeria (MAN) that joined in resisting the new rates are now heavily indebted in billions to DisCos and there seems to be no path to recovery, even in the medium term,” Sanusi narrated.

He added that the benefits of a seminar such as the one it is hosting may have led to a different outcome, by expediting a decision of the courts on the matter, in acknowledgement of the contingent risks of the litigation.

Sanusi also encouraged the judiciary members present to partner with the regulator in eradicating patches of darkness in Nigeria.


Kyari emphasises role of gas in driving economic growth, industrial development



The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC Ltd.) Mr. Mele Kyari, has reiterated the crucial role of natural gas in fueling economic growth and industrial development in Nigeria.

Kyari spoke at the public presentation of the book “The Rise of Gas: From Gaslink to the Decade of Gas” authored by Engr. Charles A. Osezua, which highlighted gas’ global acceptance as a crucial energy source that sustains economic growth and drives industrial activities.

Represented by NNPC Ltd.’s Head of Relationship and Stakeholder Management, Mrs. Oluwakemi Olumuyiwa, the GCEO also emphasised the importance of documenting Nigeria’s gas sector.

The GCEO underscored the significance of prioritising natural gas production and supply, particularly in the context of geopolitical dynamics and energy security in the global economy.

With Nigeria boasting substantial gas reserves exceeding 200 trillion cubic feet (Tcf) and the potential to reach 600 Tcf, the GCEO said it is pertinent that Nigeria leverages the gas resource for sustainable development, energy security, and job creation.

He noted that the book aligns with the Federal Government’s “Decade of Gas” initiative, aimed at optimising Nigeria’s abundant gas reserves for both domestic consumption and international export.

Kyari added that, as a key stakeholder, NNPC Ltd. has played a leading role in advancing the “Decade of Gas” agenda through strategic investments in critical gas infrastructure such as pipelines and processing facilities.

In his remarks, the author, Engr. Charles Osezua, who described the unveiling of “The Rise of Gas” as his contribution to Nigeria’s energy literature, expressed gratitude to the NNPC Ltd. for its support towards the book launch.

Osezua said NNPC Ltd.’s participation at the occasion underscores the company’s commitment to fostering knowledge sharing and innovation within the gas industry.

Also speaking, Chairman of the Impact Investors Foundation and former Group Executive Director of NNPC, Engr. Afolabi Oladele, lauded the book for its comprehensive insights into the gas value chain, saying it will be relevant to policymakers amid the global energy transition.

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Low crude production responsible for revenue loss —PETAN



The Petroleum Technology Association of Nigeria has claimed that the country is losing a lot of revenue daily due to its inability to ramp up crude oil production.

The Chairman of PETAN, Wole Ogunsanya, stated this in Lagos recently when the representatives of the Association of Energy Correspondents of Nigeria, led by its Chairman, Ugo Amadi, paid a courtesy visit to PETAN.

He reiterated the association’s resolve to support the efforts of the President Bola Tinubu-led administration toward increasing Nigeria’s oil and gas production for maximum value.

He said the vision of PETAN was to support the authorities to ensure that all the values existing in the oil industry stay in Nigeria.

According to Ogunsanya, if Nigeria could retain between 60 and 70 percent of the oil and gas value chain in the country, it stands a better chance of being among the top 20 economies in the world.

He expressed concerns that Nigeria was losing a lot due to its inability to produce up to its oil production capacity.

He pointed out that the country was underproducing to the tune of at least 500,000 barrels per day, which he said was a huge loss to the country.

The PETAN leader maintained that such losses would not have been possible if there had been full in-country retention of values and beneficiation across all the chains of the industry.

He explained, “Essentially, if Nigerian organisations are involved in taking that oil out, taking it to a refinery owned by Nigerians and refining it, if we have petrochemicals refining the gas and the product, we are taking that gas; processing it in power plants; and running pipelines to connect all those power plants. This country will be among the top 20 economies in the world.

“And we believe very strongly that there is no better prescription for Nigeria’s economic solution than that.”

Reiterating PETAN’s commitment to support the retention of those values, he acknowledged the Presidency’s high interest in increasing production.

He pointed out that the Presidency had given the directives and formulated a lot of gazettes, stating that PETAN aligned with those initiatives.

Ogunsanya further said, “Our intention is to support this government, and this country to increase the production of oil and gas. I presented this vision to the whole house of PETAN exactly a week ago and the vision is very clear. PETAN wants to support Nigeria through innovative means to increase the production of oil and gas in this country.”

He acknowledged the challenges facing the industry in Nigeria, including funding, logistics and others.

He noted that his association cannot make progress with some of its plans without collaborating with energy correspondents.

“We cannot do without you. Our message cannot resonate and cannot get across without your partnership with us.

“Essentially, we both need each other. PETAN needs you to tell that story, to sell what our vision is to help the situation we find ourselves in. We are going to support you as PETAN, as we have done in the past. I give you that assurance, we will work with you immediately,” he told the NAEC representatives.

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High tariff will lead to electricity theft — FCT residents tell FG



Some electricity consumers in the Federal Capital Territory (FCT) have appealed to the Federal Government to review the new tariff  downwards to avoid electricity theft.

Some of the consumers who are mainly business owners  told journalists on Wednesday that if the cost of electricity remained high some of them consumers might bye-passing their meters.

Recall the Nigerian Electricity Regulatory Commission (NERC) had announced an increase in electricity tariff paid by Band A customers from N68/KWh to N225/KWh.

Band A customers are those who enjoy electricity supply for at least 20 hours per day.

The consumers, mainly printers, who do operate mainly at UTC and Murg Plaza in Area 10, FCT said that they use heavy equipment in doing their jobs hence their electricity consumption is high.

According to them, if they have to pay N225/KWh this will greatly affect their jobs making it difficult for them to cope with the present economic situation in the country.

Mr Amos Okolo, a printer, said that it was good that the government plans to give them 20 hours of electricity in the new tariff but the cost is too high for any business person.

Okolo said that by the time he purchases electricity with the huge money, nothing would be left in his business to cater for his family.

“I am appealing to the government to review the tariff downward as such increase can lead to some consumers bye-passing their meters and this is not good for Abuja Electricity Distribution Company (AEDC),”he said.

On his part, Mr Samuel Kolawole, also a printer, said that the cost indicated in the new tariff was so high that it could negatively impact businesses.

He said that the government should try and reduce the tariff so that it can benefit the rich and the poor people.

According to him, 20 hours of electricity is good for business owners as this will reduce the cost of buying fuel or diesel for generators but the pricing should be business friendly.

“We are appealing to the government to reduce the tariff to what we can afford so as to benefit everyone,” he said.

Also speaking on the issue, Mr Abel Ajibola, also a graphic designer at Murg Plaza said that the government means well for the people but the new tariff is outrageous, especially for small business owners.

Ajibola said that he would be glad if the government could review the tariff so that electricity consumers would not be tempted to start stealing electricity.

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