Oil & Energy

Group Lauds NERC For Suspending Electricity Tariff Increase

Published

6 years ago

April 2, 2020

A group, known as All Electricity Consumers Protection Forum has commended the Nigerian Electricity Regulatory Commission (NERC) for suspending the increment in electricity tariffs by electricity Distribution Companies (DisCos).
Its National Coordinator, Mr Adeola Samuel-Ilori, made the commendation in Lagos, yesterday. .
NERC had on March 31 suspended tariff increment by the 11 DisCos which was supposed to take effect on April 1 yesterday due to the impact of the Coronavirus on global economy and the lives of ordinary Nigerians.
Samuel-Ilori said: “ The instructions to the effect that the tariff was suspended was never a surprise to many of us as consumers advocate because we put pressure on the regulatory body on why it was expedient to do so.
“We believe with the ongoing pandemic in which the purchasing power of many Nigerians have been reduced with stay at home order and finally lockdown by many states won’t have made it feasible.
“ Kudos to the NERC team for doing this and to prove to all that section 32(1) of Electric Power Sector Reform (EPSR)Act that stipulates their obligations to both the consumers and other stakeholders was exercised without bias or preference to any player in Nigerian Electricity Supply Industry (NESI).
He said it was, however, surprising that NERC in the order agreed with electricity consumer groups that many of the DisCos were not qualified to ask for increment based on the proviso of the extant law which premised such requests on performance and efficient delivery of service.
Samuel-Ilori said : “It is germane that such proviso was not considered in the past before approval was given.
“ So, we made it clear to the regulatory body that we will contest it in court, which we have put the process in motion should in case they failed to let reason prevail.
“It is common knowledge that no sane country will approve increase of tariff without following due process and risk prolonged litigation which the resultant effect won’t favour them once they failed to do what they ought to do from the onset.”
According to him, NERC also utilised the result gotten from the various public hearings conducted ahead of the tariff increment which is in line with Section 76(7) of the EPSR Act.
He said: “By proviso of section 76(1)(a), the criteria indicate that the DisCos shall make request for increase based on efficient performance to cushion the effect of investment and recover same.
“As far as we can see and it is obvious,there has not been any significant improvement in the sector and the NERC took judicial notice of this in reaching their decision to cancel the order for the increment on April 1”.
Samuel-Ilori urged the DisCos to take up the challenge of sending in their improvement templates as to how to improve their performance and make their service efficient so as to qualify for any increase in tariff.
“When things are done the way they ought to be done , the masses are not averse to reward as appropriate.
“ We the consumers advocacy groups won’t hesitate to help any DisCo with intention to improve service and also compel the consumers to pay as and when due,” he said.

Oil & Energy

NERC, OYSERC Partner To Strengthen Regulation

Published

7 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

7 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

7 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,”