Oil & Energy

BPE Dispels Rumour On BEDC, DISCOs’ Licence Renewal

Published

7 years ago

November 26, 2018

The Director-General, Bureau of Public Enterprises (BPE), Alex Okoh has declared that contrary to insinuations, there is indeed nothing ongoing in terms of contract or licence renewal for any of the distribution companies (Discos), including BEDC Electricity Plc.
In a statement from BEDC, following a news conference in Benin, Edo State capital, Okoh was quoted to have appealed to civil society groups, residents and all stakeholders in the BEDC franchise areas to exercise restraint and allow the company perform its functions without any hindrance.
The clarification comes even as he described BEDC as one of the best managed discos, saying, “The government respects contracts and would not do anything to jeopardise the operations of companies that the Federal Government had willingly entered into agreements with, including the Discos”.
“We have followed the development in Benin Disco with keen interest, and indeed the attention of the Bureau has been drawn to certain erroneous information over the purported renewal of the licences issued to the Discos, including BEDC Electricity Plc for the purpose of retail distribution of electricity”.
While clarifying the difference between a performance agreement review, and what has been purported as a review of the operating licence of the Disco, Okoh disclosed that the performance agreement stipulates the milestones that the core investors should achieve within a specified period.
However, he said the issue of licensing is a different matter altogether, and is being handled by the Nigerian Electricity Regulatory Commission (NERC).
According to him, all discos sold were thus also required to acquire NERC licence in addition to purchasing the privatised company and its assets.
He added, “For BEDC, there is an existing 15 years NERC licence broken into 10 years plus five year, with another 10 years renewal option at the end of the 15 years period i.e. licence of up to 25 years”.
He explained that the Federal Government was pursuing a comprehensive power sector recovery programme that would address the challenges of the sector, including those faced by customers under the Benin franchise areas.
Okoh added that government was equally working with its international partners to reposition the power sector, saying BEDC in particular has benefited from the services of such institutions like the United States Agency for International Development (USAID), aimed at getting the best electricity services to the people.
In her update across the franchise states, the Managing Director/CEO, BEDC Plc, Mrs Funke Osibodu, disclosed that 27 applications were received for the Meter Asset Provider (MAP), adding that after screening, seven were currently going through the financial bid review process.
On the Ondo South network rehabilitation project, she disclosed that the Federal Government, through the National Independent Power Project (NIPP), has joined forces with BEDC for the speedy rehabilitation of the whole network.
“According to the new schedule of the joint effort, the first phase is from Ore junction to Okitipupa, where 19 communities had been connected to the grid in Ondo South, including Ore, Odigbo, Adaja and Liyetu among others.
In Ondo North, 34 communities have been connected including Gedegede, Ikun, Eriti, Oke-Agbe, Ikare, Arigidi, Oba-Akoko and Ikaram among others.
Speaking on the disruption of power supply in some areas, Osibodu explained that for the affected areas such as Evbuotubu, Oliha, Uwelu, Ikpoba dam, Okhoro, Upper lawani and part of GRA, BEDC had put in place a contingency plan to connect customers in the affected areas to existing functional feeders.
This is on a temporary measure pending when the faulty power transformer will either be repaired or replaced.

Oil & Energy

NERC, OYSERC Partner To Strengthen Regulation

Published

6 days ago

February 23, 2026

The Tide

THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.

It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).

The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.

Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.

He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.

Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.

Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.

“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.

He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.

“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.

Oil & Energy

NLC Faults FG’s 3trn Dept Payment To GenCos

Published

6 days ago

February 23, 2026

The Tide

The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.

NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.

In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.

“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.

Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.

She feared the longstanding conflict could result in the eventual collapse of the country’s power.

According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.

Oil & Energy

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance ……… Seeks PIA Review

Published

6 days ago

February 23, 2026

The Tide

The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).

President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.

Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.

The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.

In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.

He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.

Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.

He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.

Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.

“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.

He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.

“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..

According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.

“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.

Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.

“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.

Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.

“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.

According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”