Business

‘Allow NERC Perform Its Mandate Without Interference’

Published

9 years ago

February 15, 2017

The Bureau of Public Enterprises (BPE) says for privatisation of power to work effectively, the Nigerian Electricity Regulatory Commission (NERC) must be allowed to perform its mandate without interference.
Mr Alex Okoh, the Head, Public Communications made this known in a statement in Abuja .
NERC is the body saddled with the responsibility of regulating the power sector.
He said that the Acting Director General, Dr Vincent Akpotaire, made the appeal at a two-day stakeholder’s interactive dialogue/workshop organised by the joint committees of the National Assembly on Power.
Akpotaire said that NERC must be allowed to fix tariffs in line with the Electric Power Sector Reform Act (EPSRA) without interference from any quarters.
He added that if the tariffs were considered high, the government could decide to mitigate the effects by taking up a percentage of the tariffs instead of outright cancellation.
He cautioned against the blame game in the power sector and appealed to the executive and legislative arms of government and other stakeholders to come together to find solutions to the sector’s challenges.
Akpotaire explained why the Federal Government was being asked to subsidise the Nigeria Electric Supply Industry (NESI).
“The loss levels at the point of privatisation of the power sector, that is the Aggregate Technical, Commercial and Collection (ATC &C) loss of Nigeria was about 50 per cent on the average.
“This could not be fully passed to consumers immediately, to avoid rate shock and consumer rebellion.’’
He also explained why the Central Bank of Nigeria (CBN) gave a loan of N213 billion to the privatised power companies.
“The Multi-Year Tariff Order 2 (2012) that was put in place when investors took over on Nov. 1, 2013, had assumed AT & C loss level of 25 per cent.
“The agreements signed with the investors gave NERC and the Distribution Companies (DISCOs) one year to determine the true ATC and C loss levels which were subsequently found to be about 50 per cent on the average. “Based on the new ATC and C loss levels, a new tariff was issued by NERC with effect from February 2015, but the shortfall that accumulated because of the wrongly assumed ATC and C of 25 per cent from Nov. 1, 2013 to Dec. 31, 2014 amounted to N213 billion.
“Consumers were liable to pay the N213 billion immediately, but the CBN intervention by way of a loan to the DISCOs, enabled NERC to spread the recovery of the money from the consumers over a 10 year period.’’
He also said that the core investors in the DISCOs were not investing heavily in line with the covenants they signed with the government.
This, he said was because the transaction structure compelled investors to raise money and pay for their 60 per cent equity in DISCOs using their own balance sheet.
He added that upon take over, the investors were expected to leverage on the acquired companies’ clean balance sheets to raise additional funds for investments.
“However, financial institutions have refused to lend money to the DISCOs until a cost reflective tariff is approved in line with the agreements and the CBN loan to the industry removed from the books of the DISCOs.’’
Akpotaire said that though the Federal Government owned 40 per cent of the DISCOs, it was not part of the management because it was not funding its shares on the boards.
He said that the performance agreement executed with investors had assigned operational risks to investors.
“The performance agreement provides that a core investor who fails to achieve agreed targets stands the risk of losing his/her equity at the payment of one dollar by the Federal Government.”
He also said that the BPE was on the boards of the power companies since 1988 when the Technical Committee on Privatisation and Commercialisation (TCPC), the agency BPE replaced,was established.
He added that BPE had always represented the Federal Government on the board of any company undergoing reform and privatisation.
“This is on the grounds that it makes it possible for the BPE to have access to all the information it requires to carry out its statutory duties of reform and privatisation.

Business

Pipeline Explosion In Abua Odua, LGA Chair Calls For Calm

Published

4 days ago

July 3, 2026

The Tide

Fresh explosions have hit oil and gas pipelines in Odau Community, in Abua/Odual Local Government Area of Rivers State, triggering a major security and environmental crisis that has forced residents to abandon their homes.

The first incident occurred along the Kolo Creek – Rumuekpe crude oil pipelines, operated by Renaissance Africa Energy Company Limited.

This was followed by a gas pipeline explosion on the Ogboinbiri – Obirikom Gas Pipeline, operated by Oando Plc, in the same week.

In a statement by the Abua/Odual Council Chairman, Hon. Owolobi Michael Ofori said the blasts, suspected to be the handiwork of militants, have unleashed persistent gas leakage in the area, raising fears of fire outbreaks and toxic exposure as residents of Odau have largely deserted the community due to the dangerous situation.

According to him, some residents of the area have been hospitalised after inhaling the leaking gas, adding that the impact has spread to neighbouring communities, including Obedum, Emirikpoko, and Anyu in Abua/Odual LGA, as well as Oruma and Ibelebiri in Bayelsa State.

Hon. Ofori expressed deep concern over the plight of the affected residents and urged the operating companies to act swiftly.

The Council expressed its deepest sympathy to all affected persons and communities and remained gravely concerned about the safety, health, and welfare of residents whose lives and livelihoods have been disrupted by these incidents.

“We call on Renaissance Africa Energy Company Limited and Oando Plc to immediately deploy all necessary technical and emergency response resources to contain the fires, halt the gas leakage, secure the affected pipeline corridors, and mitigate further environmental and public health risks.” the Council Chairman Said.

The chairman also appealed to the two oil firms to provide immediate humanitarian assistance and relief materials to the displaced residents while work continues to restore normalcy.

The Council Chairman said he is working closely with security agencies and emergency responders to monitor the situation and coordinate necessary interventions.

The Council Boss advised Residents of the Local Government Area to remain calm, cooperate with authorities, and adhere strictly to safety directives.

Ofori further called on the National Emergency Management Agency (NEMA), the National Oil Spill Detection and Response Agency (NOSDRA), the Rivers State Government, and other relevant bodies to intervene urgently to prevent loss of lives and environmental damage.

Hon. Ofori assured that the council remains committed to the protection and welfare of its people and will continue to engage all stakeholders to resolve the crisis.

Enoch Epelle

Business

Fidelity Bank Collaborates YEIDEP To Empower Nigerian Students

Published

4 days ago

July 3, 2026

The Tide

Fidelity Bank Plc has reaffirmed its commitment to youth empowerment, financial inclusion and entrepreneurship through a strategic partnership with the Youth Economic Intervention and De-radicalization Programme (YEIDEP), a Federal Government-backed initiative aimed at equipping young Nigerians with the skills, support and opportunities needed to build sustainable livelihoods.

Under the partnership, the bank will support the enrolment of students and young people into the YEIDEP programme, which is designed to tackle youth unemployment, promote enterprise development and expand economic participation among Nigeria’s growing youth population.

The next phase of the initiative is scheduled to end today at Nnamdi Azikiwe University, Awka, where the enrolment exercise for students and youths across the South-East that started since July 1st would be concluded at the university’s Convocation Arena.

The exercise is expected to reach more than 60,000 regular undergraduate students.

Speaking on the partnership, Fidelity Bank’s Divisional Head, Product Development, Osita Ede, said youth empowerment remains central to the bank’s vision of building a more inclusive and prosperous society.

He noted that Nigeria’s youths represent the country’s greatest asset and stressed that providing them with the right skills, opportunities and financial support is critical to unlocking their potential and driving national development.

According to Ede, the bank continues to provide young Nigerians with tools for success through its digital banking platforms, financial literacy initiatives, youth-focused products and strategic partnerships.

He added that Fidelity Bank recognises that limited access to funding, mentorship and business development support remains a major challenge for many aspiring entrepreneurs, and is committed to creating pathways that will help them overcome these barriers.

The bank said its support for YEIDEP aligns with its longstanding commitment to empowering Micro, Small and Medium Enterprises (MSMEs), which it described as key drivers of economic growth and job creation in Nigeria.

Interested students and youths have been encouraged to open Fidelity Bank accounts and register for the programme through the bank’s dedicated online portal.

Nkpemenyie Mcdominic, Lagos

Business

NPA Launches Multi-Agency Taskforce To Combat Apapa Traffic Gridlock

Published

4 days ago

July 3, 2026

The Tide

The Nigerian Ports Authority (NPA) has launched a multi-agency task force to combat the resurgence of traffic gridlock choking the Lagos Port access roads, in a fresh push to restore seamless cargo evacuation and sustain recent gains in Port efficiency.

The intervention followed a stakeholders’ meeting convened by the Managing Director of NPA, Dr. Abubakar Dantsoho, on June 23rd, 2026, where security agencies, freight forwarders, truck operators and representatives of the Lagos State Government agreed on coordinated measures to eliminate the bottlenecks disrupting cargo movement.

At the meeting, stakeholders identified illegal extortion points, overlapping responsibilities among security agencies and other operational distortions as major factors responsible for the renewed congestion along the port corridor.

Speaking on the outcome of the meeting, the NPA’s General Manager, Corporate and Strategic Communications, Mr. Ikechukwu Onyemakara, said the Authority’s overriding priority is to guarantee the unhindered movement of cargo to and from the nation’s seaports.

According to him, the task force comprises the NPA, the Police, the National Association of Government Approved Freight Forwarders (NAGAFF), the Association of Nigerian Licensed Customs Agents (ANLCA), the Federal Road Safety Corps (FRSC), the Maritime Workers Union of Nigeria (MWUN), the Nigerian Association of Road Transport Owners (NARTO) and the Association of Maritime Truck Owners (AMATO).

“The responsibility of the task force is to monitor truck movement on the Port access roads on a regular basis, identify any disruption capable of causing gridlock and immediately resolve such challenges,” Onyemakara said.

He stressed that members of the task force would not establish checkpoints along the corridor but would maintain strategic presence at designated locations to ensure compliance without obstructing traffic.

To enhance rapid response, Onyemakara disclosed that the task force has created a dedicated WhatsApp platform through which members can instantly report infractions or emerging traffic issues for immediate intervention.

On the long-delayed renewal of the Electronic Truck Call-Up (ETO) system contract, the NPA spokesman said the Authority is reviewing the terms to ensure a more robust contractual framework before awarding a fresh agreement.

He explained that although the previous contract had expired, the ETO platform remains operational under the management of the Truck Transit Parks (TTP) pending completion of the procurement process.

He expressed confidence that the renewal would be concluded soon.

Reaffirming the Authority’s commitment to maintaining free-flowing Port access roads, Onyemakara said efficient logistics remain central to the NPA’s drive to improve Nigeria’s Port competitiveness and preserve its growing international reputation.

“We are more interested in the free flow of logistics into our ports than anyone else because it is in our own interest,” he said

Nkpemenyie Mcdominic, Lagos