Business
NERC Releases Regulations On Direct Power Purchase
The Nigerian Electricity Regulatory Commission (NERC) has released regulations to guide the implementation of the customer eligibility in the Nigerian Electricity Supply Industry (NESI).
The Minster of Power, Works and Housing, Mr Babatunde Fashola while receiving the regulations in Abuja said declaration of customer eligibility would help improve capacity for distribution of electricity to eligible consumers.
Fashola had on May 15, declared four categories of eligible customers in NESI.
The declaration, which permits some categories of electricity customers to buy power directly from the generation companies, was in line with the provisions of Section 27 of the Electric Power Sector Reform Act 2005.
The section enabled eligible customers to buy power from a licensee other than electricity distribution companies.
“ Let me recap again, you are the statutory umpire to this sector; you make the rules; you proscribe the sanctions and you implement them.
“Our role as a ministry is to make policy statements; as long as I am here, I will ensure that your independence on making of rules remain unhindered.”
He said the presentation of the much awaited document would further help improve the distribution of power for consumers who needed them.
He also explained that consumers who were also ready to make investment in providing distribution assets by themselves in a way to recover their cost could now embark on the process.
“ I know that consumers will be affected with regards to how they can possibly build out distribution assets and how they can get compensated.
“So members of the public must therefore know that weather it is tariff setting, eligible customer declaration, NERC first did consultation before it made decision so that all the interest are carried on as much as possible.”
Fashola , who commended NERC for turning out the regulation, said that the much awaited regulation by Nigerians was the regulation on licensing meter service providers.
“ While this is the much welcome regulation, I think the regulation that everybody is waiting for is the regulation of meters.
“I hope that in a couple of days, you probably will be able to share that with us; members of the public are waiting.
“It will be a good thing, if we can complete the metering regulation before this month is over and see how quickly it can stimulate the licensing of meter suppliers and ultimately to consumers .”
He said that the provision of the regulations and other giant strides being recorded in the sector were part of the implementation of the power sector recovery plan.
Earlier, the Vice –Chairman of NERC, Mr Sanusi Garba, said it had carried out consultations in the six geo-political zones of the country to get inputs of stakeholders and Nigerians.
He also said that the regulation had inputs from the technical support from USAID before approving the regulation.
The 33-page customer eligibility regulations document is designed to facilitate competition in the supply of electricity, promote rapid expansion of generation capacity and open up a window for improvement in quality of supply.
It also has the objective to encourage the opening up of third party access to transmission and distribution infrastructure, among other objectives.
Business
Nigeria’s Gold, Other Solid Minerals Being Stolen – NEC
The National Economic Council has expanded the mandate of its Ad-hoc Committee on Crude Oil Theft Prevention and Control to cover illegal mining.
This is just as the council raised the alarm that the nation’s solid minerals, including gold, are being mined and stolen.
Imo State Governor, Hope Uzodimma, who chairs the committee, disclosed this while briefing State House correspondents after the 153rd NEC meeting chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja, yesterday.
Uzodimma said the expanded mandate is part of the government’s efforts to curb resource theft and increase revenue from Nigeria’s solid minerals sector.
“The National Economic Council Ad-hoc Committee on Crude Oil Theft Prevention and Control, which I chair, presented an interim report today to the Council.
“NEC received our report with satisfaction and expanded our Terms of Reference to now also take interest in solid minerals, because our solid minerals are being mined and stolen and not adding to national revenue,” said Uzodma.
He noted that the expanded role would enable the committee to coordinate with the Ministry of Solid Minerals Development and other federal and subnational institutions to combat widespread illegal gold mining and other forms of mineral smuggling that have deprived the country of much-needed foreign exchange.
“Going forward, our committee, working with other government agencies, will look at how to ensure that the revenue of the country arising from solid minerals like gold and other forms of solid minerals are not allowed to be stolen,” the governor added.
NEC’s Ad-hoc Committee on Crude Oil Theft Prevention and Control was first established under former President Muhammadu Buhari in August 2022.
It was reconstituted under President Bola Tinubu in December 2023 with Uzodinma as chairman.
The committee was initially mandated to address the challenge of crude oil theft and pipeline vandalism.
Its creation followed rising oil theft that had crippled national production and forced international oil companies to shut down key pipelines.
At the time, oil production had crashed to around 700,000–800,000 barrels per day, far below Nigeria’s OPEC quota, costing the government billions of dollars in lost export revenue.
Uzodimma explained that through what he called a “collaborative approach” involving regulators, operators, and the security forces, the committee had helped raise daily crude oil production to over 1.7 million barrels per day in the past 22 months.
The governor stated, “Before May 29, 2023, when President Bola Tinubu was sworn in, our crude oil production was around 700,000 to 800,000 barrels a day.
“Working with stakeholders, the regulators, operators in the industry, and the Navy, we were able to involve all the governors of crude oil-producing states and raise different security organisations.
“You would agree with me that as I speak, daily production is now in excess of 1.7 million barrels a day, and cases of pipeline vandalism and vandalisation of oil assets have also been on the decline.”
The council, he said, was satisfied with the progress and decided to deploy the same model of intergovernmental coordination, private-sector partnership, and multi-agency surveillance to the mining sector, plagued by resource theft.
“We are determined to ensure that crude oil production and gas are properly preserved for the benefit of our citizens.
“Now, with this new directive, we will also protect our gold and solid mineral assets,” Uzodinma added.
Nigeria’s illegal mining economy, particularly in gold, lithium, and other high-value minerals, has grown into a multibillion-naira shadow industry.
According to data from the Nigeria Extractive Industries Transparency Initiative, the country loses an estimated $9bn annually to illegal mineral extraction and smuggling.
The Federal Government has linked several unlicensed mining operations to armed groups in the North-West and North-Central regions, where gold has become a source of illicit financing for bandits.
A 2023 NEITI audit also showed that over 80 per cent of mining activities in Nigeria were conducted informally, without licenses or environmental oversight.
In September 2024, the Ministry of Solid Minerals Development revoked over 900 dormant licences and announced plans for a national gold reserve policy. But enforcement remains difficult, with weak surveillance, limited manpower, and overlapping regulatory mandates.
According to Uzodimma, the expanded mandate aims to integrate the fight against illegal mining into the broader national resource protection framework previously used in the oil sector.
“We have done well,” he claimed, adding, “Among other things, we recommended that NNPC, working with security agencies and their consultants, should strengthen security in all the creeks and extend coverage to offshore regions. That will help in curtailing and supervising illegal entries and exits of vessels into our export terminals. This same spirit will now guide our solid minerals sector.”
The committee is expected to submit its first progress report on the expanded mandate at the next NEC meeting in November.
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