The incident, which took place at about 21:18, 21st of December, 2023, caused the failure of power supply to parts of the North East, namely, Yobe and Borno States.

“While patrolling the line to ascertain the cause of the cut in power supply, TCN engineers discovered the fallen towers, and the villagers confirmed they heard a loud explosion before the tower came down.  On closer investigation, the engineers found evidence of explosive used by the vandals in bringing down the towers”, Ndidi Mbah, general manager, Public Affairs at TCN said.

“Presently, TCN mobilized one of its contractors to the site of the incident to commence the reconstruction of the transmission towers damaged by the vandals.

“TCN strongly condemns the incident and regrets the inconvenience caused to the government and people of Yobe and Borno States and pledges to do all that is possible to quickly re-erect the towers to restore power supply to the affected areas.

“We are once again making an urgent appeal to host communities to collaborate with TCN in the fight against vandalism and the necessary preservation of power infrastructures nationwide, which is our collective asset”, Mbah added.

[Source]

The move comes after a proposed 40% increase in electricity tariffs, initially scheduled for implementation on July 1, was put on hold due to pressure from the Nigerian Labour Congress (NLC).

According to a statement released by NERC on Friday, the DisCos’ applications are based on the need to align electricity rates with the current macroeconomic dynamics.

The statement highlighted the specific provisions under Section 116 (1) and 2(a&b) of the Electricity Act 2023 that authorize the DisCos to file for a rate review.

“The request for rate review is premised on the need to incorporate changes in macroeconomic parameters and other factors affecting the quality of service, operations, and sustainability of the companies,” the statement explained.

In accordance with the rule-making process and the powers vested in the Commission by the Electricity Act, NERC will conduct a Rate Case Hearing to evaluate the applications before making a ruling.

The statement emphasized that interested parties wishing to participate in the proceedings as intervenors must submit their applications to tariff@nerc.gov.ng by the close of business on July 20, 2023.

In a call for transparency and public input, NERC invited members of the public and stakeholders to provide their comments on the rate review applications submitted by the DisCos.

The statement encouraged interested individuals to review the excerpts of the Rate Review Applications, which are accessible on the Commission’s website at www.nerc.gov.ng.

To facilitate public engagement, the Nigeria Electricity Regulatory Commission will conduct a rate case hearing and extend participation to interested members of the public.

This presents an opportunity for stakeholders to contribute their perspectives on the proposed electricity tariff review.

As the review process commences, the outcome will significantly impact electricity consumers across the country.

Stakeholders, both in the public and private sectors, are encouraged to stay informed about the proceedings and provide their valuable input to ensure a fair and balanced decision-making process regarding electricity tariffs.

During a meeting with the promoters of the project at the Presidential Villa in Abuja, President Tinubu expressed his full support for the initiative, citing its alignment with his administration’s goal of revitalizing the economy and creating employment opportunities.

The joint venture, backed by a $5 billion loan from AFRIEXIM Bank, aims to implement multiple floating LNGs in Nigeria. Julius Rone, the Group Managing Director (GMD) of UTM FLNG and leader of the delegation, emphasized that this project is groundbreaking for Nigeria as it marks the first time an indigenous company is involved in such an endeavor contributing to decarbonization efforts.

The project is expected to have an annual production capacity of 300,000 tons of LPG and is projected to generate 7,000 direct jobs for Nigerians.

Anticipated to be operational in the first quarter of 2026, it represents Nigeria’s inaugural floating LNG undertaking.

This decision is a result of the Naira-to-dollar exchange rate going up.

The Abuja Electricity Distribution Company (AEDC), Eko Electricity Distribution Company (EKDC), and Ikeja Electricity Distribution Company (Ikeja Electric) have individually advised customers to purchase bulk electricity in order to mitigate the expected tariff hike.

According to the AEDC, they will be implementing an upward review of electricity tariffs influenced by the fluctuating exchange rate.

Under the MYTO 2022 guidelines, the previously set exchange rate of N441/$1 might be revised to approximately N750/$1, which will impact the tariffs associated with customers’ electricity consumption.

Customers within Bands B and C, receiving 12 to 16 supply hours per day, can expect a new base tariff of N100 per kilowatt-hour (kWh). Bands A (20 hours and above) and B (16 to 20 hours) will experience comparatively higher tariffs.

The AEDC specifically encouraged customers with prepaid meters to consider purchasing bulk energy units before the end of the month to take advantage of the current rates and potentially save before the new tariffs take effect.

Customers on post-paid (estimated) billing can anticipate a significant increase in their monthly bills starting from August.

Similarly, EKDC suggested that a base tariff of N100 per kWh is likely for Band C customers (12-16 supply hours per day), while Bands A (20 hours and above) and B (16-20 hours) will face higher tariffs.

Ikeja Electric revealed that electricity units are expected to increase by 30-40% in just over a week. They advised customers to buy as many units as possible before July 1.

According to MAN, the expenditure rose from N77.22 billion in 2021 to N144.5 billion in 2022, indicating an 87% increase in the cost of accessing alternative energy.

Consequently, MAN has strongly opposed the planned electricity tariff increase set to take effect from July 1, considering it to be outrageous.

Segun Ajayi-Kadir, the Director-General of MAN, expressed concerns about the lack of competitiveness in the real sector due to high costs associated with generating power from alternative sources.

He emphasized that a 40% tariff increase at this time would result in higher production costs, reduced profit margins, hindered manufacturing activities, and lower revenue contributions to the government, among other negative impacts.

Ajayi-Kadir highlighted the longstanding challenge faced by manufacturers in Nigeria, as they have had to rely on alternative energy sources due to the absence of stable, affordable electricity supply.

However, he lamented that even the available alternative energy sources, such as diesel, have become excessively expensive. The fact that the government itself has unpaid electricity bills totaling N75 billion reflects the burden of electricity costs.

The MAN Director-General pointed out that power already accounts for 28-40% of the cost structure in energy-intensive manufacturing industries, such as metal processing, heavy machinery, and chemicals manufacturing.

An increase in electricity tariffs would erode manufacturers’ profit margins, hinder their expansion plans, and limit job creation.

Ultimately, the additional costs would be passed on to consumers, leading to higher product prices in the market and exacerbating the country’s inflation rate.

Furthermore, the competitiveness of locally produced goods would suffer as they become less competitive compared to imported alternatives.

Ajayi-Kadir suggested that instead of raising tariffs, the Nigerian government and the Nigerian Electricity Regulatory Commission (NERC) should focus on improving electricity generation, transmission, and distribution to meet the revenue requirements of the electricity supply industry stakeholders.

He emphasized the importance of ensuring that at least 90% of electricity consumers are metered to enable consumption-reflective billing.

Additionally, he urged the government to formulate policies that promote investment in the energy sector, increase generation capacities, and support large-scale electricity production.

MAN’s expectation is that the government will engage in extensive consultations with manufacturers and implement measures to support the sector, preventing further factory closures and the subsequent negative effects on employment and the overall economy.

They caution against introducing burdensome measures that could further suffocate the manufacturing sector and the wider economy.

Approximately 92 million individuals, out of a population of 200 million, lack access to power. Despite this, the country’s highest recorded electricity generation on the national grid was 5,802MW, achieved on March 1, 2021.

However, power generation has since fluctuated between 4,000MW and 5,000MW, falling short of the increasing electricity demand.

In light of these challenges, the signing of the Electricity Act 2023 by President Bola Ahmed Tinubu represents a crucial milestone for Nigeria’s electricity sector. This Act replaces the previous Electricity and Power Sector Reform Act of 2005 and is expected to address the persistent issues in the industry.

Objectives

The primary objective of the Electricity Act is to guide the post-privatization phase of the Nigerian Electricity Supply Industry (NESI) and encourage private sector investments. By providing a comprehensive framework, the Act aims to attract private investors and promote competition in the sector. This is crucial for stimulating growth, improving service delivery, and ultimately expanding access to electricity for the Nigerian population.

The Act’s significance lies in its potential to address the problems of power in Nigeria. It sets the stage for a more efficient, transparent, and sustainable electricity sector. By encouraging private sector participation and investment, the Act aims to enhance infrastructure development, increase generation capacity, and improve the reliability of power supply.

Furthermore, the Act’s provisions on regulatory control and state autonomy provide a balanced approach to governance in the sector. It grants states the power to issue licenses for mini-grids and power plants within their boundaries, promoting localized power generation and decentralization. At the same time, it ensures that the national level retains regulatory control over interstate and transnational electricity distribution.

The Electricity Act 2023 signifies a significant step forward in Nigeria’s electricity sector. It holds the potential to address the country’s electricity challenges by promoting private-sector investments, improving infrastructure, and enhancing regulatory mechanisms. With proper implementation, the Act can contribute to expanding access to electricity, driving economic growth, and improving the quality of life for the Nigerian population

Key implications

One of the key implications of the Electricity Act is the de-monopolization of Nigeria’s electricity generation, transmission, and distribution. This empowers states, companies, and individuals to generate, transmit, and distribute electricity, promoting decentralization and localized power generation.

While the Act provides opportunities for states to issue licenses to private investors, it precludes interstate and transnational electricity distribution. This ensures regulatory control at the national level while granting states more autonomy within their boundaries.

The Act allows for the construction, ownership, and operation of small-scale electricity generation and distribution without a license, facilitating the development of decentralized and localized power infrastructure. This promotes access to electricity in remote or underserved areas.

Role of NERC, State Regulators

NERC plays a crucial role in implementing the Act, with the provision for a transition of regulatory responsibilities to state regulators once established. States with existing electricity market laws can now regulate their markets, while states without such laws will be regulated by NERC until they establish their frameworks.

The Act grants lawmakers oversight responsibilities through the Committees on Power in the Senate and House of Representatives, ensuring accountability and effective monitoring of the NESI. This complements the supervisory powers of government ministries over government-owned enterprises in the electricity sector.

Renewable Energy

The Electricity Act emphasizes the importance of renewable energy generation, imposing renewable generation obligations on electricity licensees and purchase obligations on distribution or supply licensees. This drives the adoption of renewable energy sources and promotes sustainability in the sector.

In conclusion, the signing of the Electricity Act 2023 signifies a significant step towards a more diversified and decentralized electricity sector in Nigeria. It empowers states and private investors, promotes renewable energy adoption, and provides oversight mechanisms for effective governance.

The Act has the potential to drive investment, improve electricity access, and stimulate economic growth in Nigeria.

This initiative is part of the Nigeria Electrification Project (NEP) and aims to ensure that 1,050,000 people have improved access to energy services.

The REA’s goal is to ensure that rural and underserved communities have easy access to energy-efficient and productive equipment.

The PUE initiative will encourage the use of low-cost appliances in unserved and underserved communities to enhance rural productivity, economic growth, and overall rural development.

The managing director of the REA, Salihijo Ahmad, explained that the project is being supported by the African Development Bank (ADB).

The PUE initiative will contribute to the sustainability of off-grid energy infrastructure across communities in Nigeria.

Ahmad emphasized that the REA’s mandate is to provide electricity access to unserved and underserved households and MSMEs in rural areas.

The agency has been actively collaborating with the private sector to achieve its objectives. Beyond ensuring access to electricity, the REA is focused on promoting the productive use of equipment and appliances to stimulate socio-economic development in off-grid communities.

The NEP, funded by the World Bank and the African Development Bank, targets unserved and underserved households, MSMEs in rural communities, federal universities, and teaching hospitals throughout Nigeria.

The signing of the grant agreement for the productive use appliances component is considered a milestone in implementing the ADB-funded NEP.

The REA chief expressed appreciation for the cooperation of energy access companies and urged them to align fully with the program’s objectives in order to achieve transformative change.

Governor Babajide Sanwo-Olu announced this achievement via his official Twitter account on Tuesday evening.

The funds raised will play a vital role in driving infrastructure development, stimulating economic growth, creating employment opportunities, and enhancing the quality of life for residents of Lagos.

This successful bond issuance demonstrates the resilience of the city and the confidence that investors have in its ability to responsibly utilize the funds for development purposes.

The government of Lagos expresses gratitude to the investors for their belief in the immense potential of the city and assures them of its commitment to transparency and prudent financial decision-making, all aimed at building a better Lagos for future generations.

Governor Sanwo-Olu further emphasized that the investment will have a positive impact on both the short-term and long-term development of key sectors within Lagos state

He wrote: “We have raised N134.8 billion in long-tenure bonds, marking another record in accessing capital market funds. This investment will fuel key infrastructure projects in sectors such as education, electricity, roads, and agriculture.

“Today, we signed the transaction instruments for the first sets of allotment in the N1 trillion Debt and Hybrid Issuance Programme. This includes a 10-year tenure bond and a Shariah-compliant Sukuk.

“With the proceeds from the bond and Sukuk, we will be executing various projects pre-inspected by the Securities and Exchange Commission.

This includes overhauling 33 public schools in Ajegunle, road infrastructure on the Lekki-Epe corridor, drainage works, and more.

The Nigerian government has issued a discharge certificate to Transcorp Power Limited after surpassing the post-privatization target.

The issuance means the company is the first privatized power generation company in Nigeria to fulfill all privatization obligations and receive a discharge certificate from the Federal Government of Nigeria since the 2013 privatization of the power sector in Nigeria.

In attendance were the Vice President, Yemi Osinbajo who presented the certificate to Tony Elumelu, Group Chairman, Transcorp; Mr. Alex Okoh, Director General of Bureau of Public Enterprise; Tony Elumelu, Group Chairman, Transcorp; Dr. Owen Omogiafo, President/Group CEO; and Mr. Christopher Ezeafulukwe, MD/CEO, Transcorp Power Ltd.

Transcorp Power Limited (TPL), is the power subsidiary of Transnational Corporation Plc (Transcorp Group), a publicly quoted Conglomerate in Nigeria. TPL is the largest gas-powered generating station in the country.

“We all know how critical access to electricity is to the Nigerian economy. Robust, plentiful power, delivered across our country will be transformative,” Tony wrote on Twitter.

He said improved access to electricity yields life-enhancing changes to our schools, hospitals, homes and industries.

“Today, Transcorp generates 789MW of electricity, placing Transcorp’s total contribution to the National grid at 16% – powering homes, schools, hospitals and enabling industrialisation.

“At Transcorp Group, we do well and we do good. We have grown together with our Host communities, enriching lives, and improving the community – operating a 100% Nigerian-run plant, creating jobs and reducing unemployment in the country.”

He said Transcorp is transforming a vision into a reality. “We do not only have the vision – but have turned that vision into reality,” Tony added.

Power is focused on helping workers access affordable and appropriate financial services. The company works with regulated banking and lending partners to provide efficient tools required for payments, savings, borrowing and protecting user data. 

Fostering Power’s goal to expand across Kenya and launch in Zambia, where it plans to be a technology partner rather than an active lender, the funding round was led by DOB Equity with participation from QED Investors, Quona Capital, Zephyr Acorn, and Norrsken Impact Accelerator.

Power provides short and long-term loans, investment opportunities, and insurance products to employees and contractors – gig workers – of companies on-boarded on their platform. This helps in reducing the risk of defaults, and borrowers can access payable funds.

So far, Power has on-boarded 75 companies in Kenya, giving it access to over 40,000 workers, out of which it’s been able to serve 15%.

Employees are able to access a percentage of their earnings in advance, and long-term loans on its balance sheet, based on their earnings, for 2-3% interest a month. HR are also able to access, approve or reject employee loan requests.

For Individuals, they can purchase various insurance products, and make repayments over an extended period, which attracts the same interest, giving them access to packages by partner companies that require lump-sum payments.

Power, which has disbursed over $1.5 million in loans since launch and plans to reach 250 companies in Kenya, integrates payment or payroll systems enabling workers to download the Power app. It also conducts digital identity checks, and opens up its four key services to them. The company has signed a deal with First Capital Bank.