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Towards Reforming Nigeria’s Power Sector

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Representative of  Senator Shehu Sani, Alhaji Suleiman Ahmed (left), presenting 500kva transfomer  to the district Head of Badarawa Majalisa Kwaru, Alhaji Abdulhameed Giwa in Kaduna recently.

Representative of Senator Shehu Sani, Alhaji Suleiman Ahmed (left), presenting 500kva transfomer to the district Head of Badarawa Majalisa Kwaru, Alhaji Abdulhameed Giwa in Kaduna recently.

It is disheartening that in
spite of the partnership the Nigerian government has established with the private Electricity Distribution Companies (DISCOs) and the huge sums invested in the power sector by the previous administration, the DISCOs still lack the capacity to carry out their own mandates. That is the mandate of ensuring regular or steady electricity supply to the populace of Nigeria.
Prior to the handover of the power sector to the DISCOs, the Federal Government and the United States had on August 9, 2011 agreed on the critical nature of the sector to economic growth in Nigeria.
The agreement was reached at the second meeting of the Working Group on Energy and investment of the US – Nigeria Binational Commission in Abuja. Nigeria was represented at the meeting by top officials of the Federal Ministry of Petroleum Resources headed by the Permanent Secretary, Engr. Goni Sheikh, while the U.S. team was headed by the State Department’s Special Envoy for International Energy Affairs, Ambassador Carlos Pascual.
The two nations reaffirmed their commitments to continue to cooperate in implementing the reform of the power sector and instituting best practices to ensure optimal performance of the sector and to attract needed investment. Recognizing the need for private sector participation in power sector generation, transmission and distribution, both countries acknowledged that renewable energy has an important role to play in rural electrification. They also realized that by reducing gas flaring and monetizing its resources, Nigeria would enhance its clean electricity generation.
Both Nigeria and the US at the meeting stressed the importance of the Global Alliance of Clean Cooking Stoves and affirmed their support to introduce fuel-efficient cooking stoves, especially to rural communities in Nigeria.
The government of the US pledged to continue working through the US Agency for International Development to enhance capacity building in support of private sector participation in Nigeria’s power sector. The Nigerian government on its part pledged to work toward a timely and comprehensive reform of the petroleum sector, recognising the critical benefits to Nigeria of a stable and transparent investment framework that upholds global standards of sanctity of contracts and comparable taxation regimes.
The United States recognized Nigeria’s leadership in attaining the status of Extractive Industries Transparency Initiative (EITI) compliant country and both sides pledged to work together to continue the process of ensuring the adoption of transparent rules and regulations in the extractive industries sector. The US team briefed the Federal Government on developments in the United States, including the Cardin-Lugar Energy Security Through Transparency Provision to the 2010 Wall Street Reform and Consumer Protection Act, which complements the work of the Extractive Industries Transparency Initiative.
Diversification from the national grid system into other alternative energy sources is another solution advanced for the reform in the power sector of Nigeria. The Managing Director of Ola Electrical Nigeria, a solar energy company, Mr. John Sola while speaking in an interview with The Tide said if Nigeria breaks from the grid system and adopts other alternative sources, more persons would participate in the power distribution and supply thereby allowing consumers to make choice.
According to him, the rivers, good climate with adequate sunlight and coal, among other sources could be transformed to electricity to serve the people. He said “if people begin to tap the abundant electricity or power resources, Nigerians will enjoy sufficient and cheap energy sources without necessarily expecting light from the national grid.
Sola noted that technology and finance remained the major challenges confronting prospective investors and urged the government to support them to invest in alternative power sources.
“Until the issue of power supply is properly addressed, the idea of accelerated development will remain a mirage in the country”, he said.
In their effort, the new investors in the country’s electricity generation and distribution have injected over N300 billion into the power sector in the last two years. Egbin Power Plc on its own has invested N50 billion to rehabilitate line six of its Lagos plant to generate extra 240MW. The Director-General of the Bureau of Public Enterprises (BPE), Benjamin Ezra Dikki, who disclosed this when he featured on Nigeria Television Authority’s (NTA) live programme- Good Morning Nigeria last year, pointed out that the investment was for the upgrade of power infrastructure which had become obsolete over the decades, noting that new technologies evolving gains in the sector would not manifest overnight.
He explained that unlike reforms in other sectors, which brought immediate results, the situation in the power sector requires time due to its capital intensive profile. As he put it, “power equipment like turbines and other ancillary products cannot be bought off the shelf. The investors have to place orders after which it will take between three to four months to manufacture the equipment before shipping. This takes time. Before Nigerians will begin to see dramatic changes in the power sector, it will take between two to three years. But already, significant impact has been made”.
The BPE Director-General said that because of the infrastructural dev- elopement by the investors, power interruptions in the country had reduced to the barest minimum while over 2,000 engineers and technicians had been employed since takeover. Dikki noted with regret that for over 16 years as a public monopoly, Power Holding Company of Nigeria (PHCN) neither employed nor bought in new investments into the sector. He also regretted that gas vandalism was impacting negatively on the plans to privatize the Nigeria Independent Power projects in the country.
Dikki, however, expressed optimism that with the new initiative put in place by the former President Goodluck Jonathan’s administration to safe-guard the pipelines through technological devices, the challenge would soon be surmounted, adding that the complaint of non-availability of electric meters to consumers was hinged on the complex technology used in producing smart meters, which are currently being used the world over.
The Director-General of the National Power Training Institute of Nigeria (NAPTIN) Reuben Okeke announced that the German government has built a 25 kilowatts power plant for the training of Nigerian engineers in renewable energy.
Okeke who announced this at a meeting with management team of the Nigerian Society of Engineers (NSE) in Abuja said Nigeria is expanding its local capacity to train technical workforce for the power sector while aiming to become a regional hub for required expertise in the electric power drive. To achieve this, he disclosed that the nation is equipping its power training centres with state-of-the-art simulators and training equipment, including electricity laboratories.
According to him, the NSE is collaborating with the NAPTIN to check quackery in the power sector and explained that the institute aimed to promote local skills above their foreign counterparts. “Our training plant is stationed at the Kainji Power Plant, Niger State and we have acquired a unique 450 mega watts combined circle simulator stationed at the Afam Power Plant in Rivers State to train mechanical and electrical engineers from Nigeria and other African countries. The facilities are for teaching and learning for renewable energy. There are also three wind turbines of 5 kilowatts each, and 10.5 kilowatts of solar PV to be operated as a hybrid.
“Renewable energy is one of the things that the Federal Government has decided for rural access ‘Operation Light Up Nigeria’, and we have to have, as well as establish where those who will operate, manage and maintain these facilities will be trained”, he said, adding “we are as well getting a complete electrical training laboratory in Kano, and we currently have about 3-4 of our instructors in Italy to master how to use this to teach”.
Okeke noted that Nigeria has huge potentials as far as human resources are concerned.
“We cannot go anywhere to import cables. NAPTIN has to be positioned in such a way as to satisfy the market, and we have collaborated with NSE and entered a pact towards ensuring that engineers in the power sector go through rigorous tests and examination”.
He stated that both bodies signed a memorandum of understanding in 2014 to make sure that young engineers in the power sector are well trained and well evaluated, adding “no matter the investments the federal government makes in any endeavour, particularly in the power sector, without the human capital, without the workforce, well trained and capable workforce to maintain the infrastructure, it will not work”.

 

Shedie Okpara

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Nigeria’s Inflation Drops to 15.06%

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Three States Record Lowest rates Published 16 Mar 2026 By  Dave Ibemere 3 min read The NBS has revealed that inflation rates dropped again in February 2026 The bureau noted that both headline and food inflation eased on a year-on-year basis Inflation was lowest in Katsina, Imo, and Ebonyi, while the highest was recorded in Kogi.
 Nigerian economy, the stock market, and broader market trends. The National Bureau of Statistics (NBS) has revealed that Nigeria’s inflation rate slowed further in February 2026. According to the bureau in its latest CPI report, the headline inflation dropped slightly to 15.06% from 15.10% in January 2026. Nigeria’s inflation eases to 15%, offering relief to households. It was 11.21 percentage points lower than the 26.27% recorded in February 2025. From breaking news to viral moments.  On a month-on-month basis, inflation stood at 2.01% in February, up from -2.88% in January, showing that prices rose at a faster pace than the previous month. Nigerian stock market records weekly gain as turnover hits N164.8billion Urban vs Rural Inflation NBS noted that urban inflation stood at 15.53% year-on-year, down from 28.49% in February 2025, while rural inflation was 13.93%, compared with 22.73% in the same period last year. Every month, urban inflation rose to 2.55% in February from 2.72% in January, while rural inflation eased to 0.71% from -3.29%. Food Inflation Food inflation dropped to 12.12% year-on-year in February, down sharply from 26.98% in February 2025. Monthly, food prices rose by 4.69%, higher than the -6.02% recorded in January. The NBS attributed the moderation to slower price increases in staples such as beans, cassava tuber, yam flour, crayfish, millet flour, cowpeas, and okazi leaf. The twelve-month average for food inflation was 19.08%, compared with 37.40% in February 2025. States breakdown for All Items The states with the highest all-items inflation rates were: Kogi (23.57%) Benue (22.85%) Anambra (22.09%) The lowest rates were recorded in: READ ALSO Naira appreciates by N27 against US dollar as external reserves cross $50bn Katsina (7.78%) Imo (11.66%) Ebonyi (11.71%) On a month-on-month basis, the highest increases were in Enugu (5.92%), Ogun (4.39%), and Anambra (4.11%), while declines were seen in Zamfara (-2.14%), Bauchi (-1.23%), and Katsina (-1.06%). Food staples contribute less to inflation as prices moderate in February. Photo: Bloomberg Source: Getty Images State Breakdown for Food Inflation Food inflation was highest in: Kogi (26.91%) Adamawa (23.12%) Benue (21.89%) The lowest food inflation rates were seen in: Katsina (5.09%) Bauchi (7.09%) Imo (7.65%) Month-on-Month Food Inflation The states with the highest month-on-month increases in food inflation were: Bayelsa (8.81%) Ebonyi (8.51%) Edo (7.72%) The states that recorded declines were: Katsina (-0.70%) Nasarawa (0.17%) Kano (1.39%) Food price changes across markets in Nigeria Earlier, The  Tide source reported that due to Ramadan, staple food prices across the country are recording sharp increases as Muslims begin the Ramadan fasting season Ramadan is not only a period of abstinence from food and drink, but also a time for ‘reflection, discipline and heightened devotion’ Several traders in Abuja, Taraba, and Kaduna states are taking advantage and have hiked price. The NBS has revealed that inflation rates dropped again in February 2026 The bureau noted that both headline and food inflation eased on a year-on-year basis Inflation was lowest in Katsina, Imo, and Ebonyi, while the highest was recorded in Kogi.
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NDCCTMA, NDDC MDS Challenge Niger Delta Indigenes On Investment In The Region 

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The Nigeria Delta Chamber of Commerce, Trade, Mines and Agriculture  (NDCCTMA), and the Niger Delta Development Commission ( NDDC ) have challenged Niger Delta entrepreneurs to close the gap in Gross Domestic Products (GDP) differences between the region and that of the South Western part of the country by coming home to invest.
The bodies made the call at a Business Round Table organized by NDDCTMA, in Port Harcourt.
Chairman of NDDCTMA, Ambassador Idaere Gogo Ogan, said to close the gap between the south west region which he said has a GDP seize of about #59 trillion and that of the Niger Delta which is about #34 trillion was to massively invest in the region.
He said no other persons can  do this except sons and daughters from the region.
“For me I believe in statistics,I believe in data and everyday I looked at the data concerning development in Nigeria and from the GDP point of view, the South West has #59 trillion, that is the seize of the south west region economy, the second region following them is the Niger Delta region with GDP seize of #34 trillion,so there is a yearning gap of #25 trillion that separates the south west and the Niger Delta region, that is why we are here.”
Ogan said the region has the capacity to close the gap and even surpassed it but regretted that indigenes of the region have chosen to ignore it in terms of investment.
“We need to close that gap .If we close that gap and even surpassed it,all the negative problems of militancy and unemployment will automatically erase”, he stated.
Ogan noted that the event was organized to remind the people that past efforts of militancy and agitations have not led the region to any where saying “that is why we are gathered here in this room”.
Also speaking, the Managing Director/Chief Executive Officer, NDDC, Dr Samuel Ogbuku urged indigenes of the region not to use the problem of insecurity as an excuse to continue to deny the region of investment  as every part of the country have in one time or the other experienced crisis.
Ogbuku said most indigenes have displayed high level of unpatriotism towards the region by taking investments that would have benefited the people to either Lagos or Abuja.
“With little threat we have left the city, we have gone to Lagos,we have moved  our families to Abuja and Lagos. If you go round GRA all the property, you will see,”to let to let”most of them are now empty “he said.
The NDDC MD said despite the fact that people from the region are doing well in the oil and gas, banking and other sectors, its impact are not being felt at home because they are stationed outside the region.
By; John Bibor
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Cash Handouts Unproductive For Sustainable Agricultural Development – Engineer Kii

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Rivers State by its natural disposition is gifted with strategic economic advantage, particularly in  agricultural potentials and fortunes. This informs successive governments’ interest in  developing the agricultural sector, such as the School to Land Program, the Shongai Project, among several others.
The objective is to engender and leverage the sector  beyond mere subsistence practices into a full thriving economy, with the engagement and involvement of the youthful and productive population.
The Farm to Future Agro Based Training for Rivers youths by the present administration is notably one of the most pragmatic efforts of the Rivers State Government to engage the prospective creative capital of both the natural and human resources in the agricultural sector for sustainable development.
The concept, premised on the imperative of maximizing the huge agrarian prowess of the state, targets creation of sustainable livelihood for the teeming youth of the state. The project is also intended to achieve the chore needs of food sufficiency and job creation in the state.
This implies a significant deviation from the acculturised norm of expectations of financial benefits as the outcome of government programs and policies.
The tenets of the program are expressly difined in concept and practice as shown in the phases of its execution.
However, some beneficiaries of the project recently staged a protest, allegdging unpaid largesse, diversion of funds and perceived slighting by the Rivers State Ministry of agriculture. The said protest has stirred up concerns among stakeholders about how people view  government policies.
Many see the protest  as an attempt to create tension around the program and sabotage its original objectives.
Stakeholders and commentators are of the view that the Rivers State is in dire need of development in every critical sector, as such the  Ministry of Agriculture and its partners should be given the benefit of the doubt to implement the project to its logical conclusion without being hauled with accusations.
The former Commissioner for Agriculture, Engineer Victor Kii who was at the fore of driving the program has in a press statement debunked the allegations and sued for calm, restraint and understanding. Engineer Kii assured the participants that the empowerment phase will be implemented as soon as administrative normalcy is restored.
He commended the participants for their commitment and discipline during the training and urged them to uphold the norms of the program rather than misrepresenting its intentions.
Some pundits who commented on the recent development decried the fact that many people  still hold on to the notion that  incentives billed to create sustainable impact through skills based programs, should be given out as  largess, without adroit supervision of its utility function. This practice  has however created a culture of economic doldrum, dependency and servitude in the past.
Thus the idea of seen the Rivers Farm to Future project  as a mere quixotic experiment for cash benefits  without achieving set goals is counter productive. Such opportunistic thinking have stunted government efforts  over the years in achieving long term objectives of development.
As disclosed by the former commissioner for Agriculture in his detailed explanation, the Farm to Future project was strategically designed to address this culpable deficit in institutional planning and consolidation of results.
The former commissioner gave an  explicit description of the nexus of operation of the program.
As revealed by him;  ” The program is a strategic intervention to equip young people in Rivers with practical skills and to nurture a new generation of agricultural entrepreneurs. 500 beneficiaries received intensive agri business training in the first phase.”
 He pointed out that the program was conceived and designed in line with global best practices which de emphasizes indiscriminate cash handouts for beneficiaries. Rather it promotes practical engagements in agricultural activities and business initiatives.
At the end of the training in February, beneficiaries were encouraged either individually or in cooperative clusters to identify value chain for establishment of viable businesses.
They were also asked to produce structured business proposals for perusal and review by the ministry of agriculture and appointed consultants, after which successful proposals would be forwarded to the Bank of Agriculture with Rivers State Government providing guarantees.
The strategies for implementation include field inspections and evaluation for beneficiaries who had already commenced practical activities in identified locations.
The approach was to discourage the commonplace ideology of diverting funds meant for specific projects for unrelated purposes, thereby undermining the conscious exploration of creative potentials into long term benefits.
The process was however temporary interrupted by the dissolution of the Rivers State Executive Council and the ongoing renovation of the Rivers State Secretariat complex but the profound optimism and positive expectations that are the hallmark of the project remains sacrosanct.
Engineer Kii assures.
By: Beemene Taneh
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