Oil & Energy

NERC Sets December 31 For CSP Registration, Mandates N100,000 Non-refundable Registration Fee

Published

6 months ago

November 23, 2025

…..Says Only CBN-Licensed Firms Can Collect Electricity Payments

The Nigerian Electricity Regulatory Commission(NERC) has imposed strict caps on the commissions paid to all third-party electricity bill collectors and ordered electricity distribution companies to re-register every collection partner before December 31, 2025, or risk sanctions.

NERC also mandated a non-refundable N100,000 registration fee for all Collection Service Providers (CSP) insisting that only entities with valid Central Bank of Nigeria (CBN) licences can operate. It further stressed that contract not re-registered by December 31, 2025, automatically becomes invalid.

The new regime, contained in NERC’s Guidelines for the Engagement of Third-Party Collection Service Providers in NESI, came into force on November 1, 2025, and directly targets opaque revenue practices that have long plagued Nigeria’s power sector, marking the latest attempt to enforce Nigeria’s long-standing policy of cashless electricity payment.

Signed by the Commission’s Vice Chairman, Musiliu Oseni, the document standardises how Nigerians can pay for electricity, from USSD and banking apps to PoS agents and rural vendors, and sets binding limits on what the agents can charge for their services.

Under the new framework, only entities licensed by the Central Bank of Nigeria, including banks, PSSPs, PTSPs, MMOs, switching companies, card schemes, and super-agents, are eligible to operate as Collection Service Providers. The guideline sets binding maximum commissions for all USSD, PoS, app-based, banking, and rural payment channels.

The document read, “In furtherance of the policy direction of the Federal Government of Nigeria on the settlement of electricity bills by certain classes of end-use customers, the commission issued Order No. NERC/183/2019 (the “Order”) mandates DisCos to migrate industrial and commercial customers to cashless settlement platforms by 31 January 2020 and R3 customers (now MD residential) by 31 March 2020. Pursuant to the Order, the commission authorised the use of available banking channels and collection service providers to enhance transparency in billing and collection.

“The cashless payment system is a shift from conventional transactions to more efficient, practical, and secure methods of payment for customers. These include but are not limited to banking applications, mobile platforms, credit cards, debit cards, QR/Scan to pay, USSD, payment links, and digital wallets.

“To register, each CSP must submit: A valid CBN licence or permit, A signed agreement with the relevant DisCo, CAC incorporation documents, A banker’s reference, three years’ tax clearance, VAT registration, A list of sub-agents, an API integration agreement with NIBSS, and Proof of payment of a non-refundable N100,000 registration fee. No CSP may commence operations without NERC’s approval, and no DisCo may engage any partner that is not fully cleared by the regulator.”

The guidelines also classify collection channels into: USSD – real-time mobile short-code transactions, Banking and Switching – including apps, ATMs, Interswitch, Flutterwave, Paystack, and NIBSS, Mobile Payment Services – transfers, VANs, wallets, web, intranet, IVR, NQR, and payment links, Agency Services – PoS, kiosks, agents, cash vendors, Rural Services – agency presence in underserved and remote communities.

According to the guidelines, collection partners must not charge more than: N20 per USSD transaction below N5,000, and N50 for transactions at or above N5,000; 0.75 per cent to 3.25 pee cent, depending on channel type, for mobile wallets, agency banking, PoS, kiosks, and rural agents; A hard cap of N2,000 – N5,000 per transaction, whichever is lower.

“To end arbitrary commission charges, NERC has now fixed maximum rates for all categories: USSD below N5,000 – N20, Above N5,000 – N50; Banking & Switching: Banks, gateways – 0.75 per cent, capped at N2,000, ATM – 1.10 per cent, capped at N2,000, Wallets – 1.25 per cent, capped at N2,000

“Mobile Services: Web, chat, IVR, NQR – 1.50 per cent, capped at N2,000, Payout, mobile, VAN – 1.50 per cent, capped at N2,000. Agency & Rural PoS – 1.50 per cent, capped at N2,000, Kiosks – 2.00 per cent, capped at N2,000, Agents – 2.0–3.0 per cent, capped at N5,000, Rural agents – 3.25 per cent, capped at N5,000,” it added.

CSPs may only earn commission for collection services. Deducting fees for any other service, such as IT support or marketing, is expressly prohibited. NERC also directed that all collection contracts must be refunded, except for banks and switching firms whose settlements must occur on a T+1 basis.

Maximum Demand customers are exempt from third-party collections; they must pay directly into DisCos’ accounts, with no commission payable to any agent. “These rules will remain in force until amended by the Commission,” NERC declared.

Recall that in 2019, the commission issued Order NERC/183/2019, mandating DisCos to migrate industrial and commercial customers to cashless payment platforms by January 31, 2020, and residential MD customers (formerly R3) by March 31, 2020. The policy was meant to eliminate leakages, improve transparency, and ensure that collections flowed directly into utility accounts.

Despite this, cash transactions, especially in rural and agency banking channels, remained widespread, with thousands of unregistered agents charging arbitrary rates. Industry operators say some vendors charged unregulated rates far above formal limits, a practice that drained revenue and deepened sector illiquidity.

By: Lady Godknows Ogbulu

Oil & Energy

Rivers PETROAN Elects 12-Member Executive

Published

4 days ago

May 18, 2026

The Tide

The Petroleum Products Retail Owners Association of Nigeria (PETROAN), Rivers State Branch, has elected a 12 – member executive to steer the affairs of the association for the next four years.

The executive, elected during the Annual General Meeting (AGM) of the association, at it’s secretariat in Port Harcourt, and sworn in immediately after the election, was mandated to, among other things, tackle the adulteration of petroleum products as well as address irregularities in meter readings across the state.

The newly elected executive include, Pastor Ezekiel I. Eletuo as Chairman, Kanu Addeson C. as Vice Chairman , Dr. Ejike Jonathan Nnbuihe as Secretary, Fidelis A.Inaku as Treasurer and Lady C. N. Ekejiuba as Financial Secretary.

Others are Anaenye Anthony as Publicity Secretary, Arc. Kingsley O. Anyino as Organising Secretary, Nze Peter Ezenwa as Chief Whip, and Sunny Williams as Auditor.

Other members of the executive included Chidiebere Ronel Akwara as Welfare Officer, Ibe Chimaobi C. as Legal Adviser, and Emetoh Chizoba as Assistant Secretary.

Inaugurating the new leadership, PETROAN Zonal Chairman, High Chief Sunny G. Nkpe, charged the team to build on the achievements of the outgoing executive.

He urged them to collaborate with stakeholders in the petroleum sector to ensure industry stability and address issues of multiple taxation.

Nkpe who emphasized the need for transparency, accountability, and an open-door policy in administering the union, insisted these principles remained crucial in advancing the association’s objectives and improving members’ welfare.

The zonal chairman also commended the outgoing executive for their accomplishments during their tenure and for conducting a smooth transition process.

He further described their efforts as instrumental in strengthening the union’s standing in the state.

In his acceptance speech, the new Chairman, Pastor Ezekiel I. Eletuo, thanked members for their confidence and pledged to improve on the foundations laid by the previous administration.

He promised his leadership would be guided by transparency, accountability, fairness, unity, and integrity.

Eletuo called on all members to support the new executive in its efforts to elevate the association.

Also speaking, the immediate past Chairman, of the association, Sir Chilam Francis Dimkpa, expressed appreciation to members for their support during his administration and stressed the need for them to extend the same cooperation to the new leadership.

Dimkpa highlighted key achievements of his tenure to include capacity building for members, increased union visibility through media advocacy, and the establishment of stronger ties with stakeholders, corporate organisations, and individuals.

He also acknowledged the support of the state government, the Police, the Department of State Services (DSS) and the Nigeria Security and Civil Defence Corps (NSCDC).

Stakeholders present at the event also delivered their goodwill messages.

Highlights of the event included administration of oath of office to the new executive and the presentation of certificates of return by the zonal chairman. .

By: Amadi Akujobi

Oil & Energy

FG Intensifies Efforts To Reposition Tourism Sector

Published

4 days ago

May 18, 2026

The Tide

The Federal Government has intensified efforts towards reposition Nigeria’s hospitality and tourism industry for global competitiveness, aimed at strengthening regulation, professionalism and workforce standards across the sector.

This was made known last week when the National Institute for Hospitality and Tourism (NIHOTOUR) conferred fellowships, inducted professionals and inaugurated the governing boards of the Hospitality and Tourism Sector Skills Council of Nigeria (HTSSCN) in Abuja.

The high-profile event, held at Merit House, Maitama, drew senior government officials, regulators, tourism operators, cultural institutions, hospitality investors and development partners in what stakeholders described as a major institutional shift .

Government also formally inducted registered practitioners into various professional categories while also inaugurating the Board of Trustees and Board of Directors of the HTSSCN, an employer-led platform designed to align workforce competencies with industry expectations.

Speaking at the event, the Minister of Art, Culture, Tourism and the Creative Economy, Hannatu Musa Musawa, said the initiative represented a strategic intervention to strengthen accountability, standards and institutional coordination within Nigeria’s tourism and hospitality ecosystem.

According to the minister, Nigeria’s vast cultural assets, tourism destinations and creative talents can only translate into sustainable economic value through professionalism, regulation and globally accepted operational standards.

She noted that tourism and hospitality industry remains one of the fastest-growing sectors globally, contributing significantly to employment generation, foreign exchange earnings and cultural diplomacy.

Musawa explained that NIHOTOUR Establishment Act has expanded the institute’s mandate beyond training, positioning it as a regulatory and certification authority for hospitality, tourism and travel practitioners in the country.

“No sector can attain sustainable growth without structure, standards, institutional coordination and skilled professionals,” she said, stressing the need for stronger collaboration between government agencies, operators, training institutions and private sector stakeholders.

In his keynote address, the Director-General and Chief Executive Officer of NIHOTOUR, Abisoye Fagade, described the event as a historic turning point in the formalisation of Nigeria’s tourism and hospitality industry.

Fagade said the induction of practitioners, conferment of fellowships and inauguration of the HTSSCN governing boards marked the beginning of a new era of institutional governance, professional recognition and sector-wide coordination.

“Regulation and standardisation are no longer optional; they are economic necessities if Nigeria truly intends to compete globally,” he stated.

By: Nkpemenyie Mcdominic, Lagos

Oil & Energy

Big Oil Reconsiders Previously Unattractive Destinations

Published

4 days ago

May 18, 2026

The Tide

The Middle Eastern crisis has prompted a reprioritization among international oil companies. Previously unattractive drilling destinations are suddenly looking quite attractive—even Alaska.

The oldest oil and gas producing part of the United States has for years been out of the spotlight as the industry moves to cheaper and faster-growing locations. The only news of any substance about Alaska recently was the Biden administration’s approval of the Willow project, led by ConocoPhillips, which was set to boost the state’s oil output by 160,000 barrels daily, and Australian Santos’ Pikka project, set to start commercial production this year. That was years ago. Now, Big Oil is eager to drill in Alaska.

Earlier this month, a lease sale in the National Petroleum Reserve in Alaska attracted record bids, worth a total $163 million. Among the bidders were Exxon, Shell, and Repsol, with the latter already partnering with Santos on the Pikka development. And this may be just the beginning.

Related: Saudi Aramco Looks to Raise $10 Billion from Real Estate Asset Deal

The Bureau of Land Management offered 625 tracts across about 5.5 million acres for bid in the sale, revived at the end of last year by the Trump administration. No lease sales were held in the National Petroleum Reserve in Alaska under President Biden. Yet under Trump’s One Big Beautiful Bill, there will be a total of five lease sales in Alaska over the next ten years.

“With the imminent start-up of the Pikka project on the North Slope, the reversal in the decline of oil production in the great state of Alaska is going to help put more oil in the Pacific area at an important moment,” Repsol’s head of upstream operations, Francisco Gea, said as quoted by the Financial Times. Gea called Alaska “a fantastic opportunity”. The Pikka project, which has a price tag of $4.5 billion, will produce up to 80,000 barrels daily.

It is indeed a fantastic opportunity, at the very least because it is nowhere near the Middle East and as such is a highly secure energy exploration destination. Canada is in a similar position, by the way: the head of the International Energy Agency earlier this month told an industry event Canada had a golden opportunity to step in as a secure energy supplier in a world that’s currently 14 million barrels daily short on supply because of the Middle Eastern crisis.

Security, then, is what has prompted Big Oil to return to the North—even Shell, which left in 2015 after writing off as much as $7 billion on an unsuccessful drilling campaign hampered, among other things, by strong environmentalist opposition. According to the Financial Times, the supermajor’s decision to partake in the latest Alaska lease sale was surprising for analysts.

However, according to chief executive Wael Sawan, the lease sale concerns a different part of the state. “It is a very, very, very different part of Alaska that we have gone to,” he told the Financial Times. “This is an onshore exploration opportunity in a very well-established basin that has been producing for some time… So this is not offshore Alaska where we have had the challenges in the past.”

Crude oil is not the only thing drawing the energy industry to Alaska in these times of oil and gas trouble. Gas is also a magnet—in this case, in the form of the Alaska LNG project. Interest in the Alaska LNG export project has spiked since the war in the Middle East choked 20% of global LNG supply and sent Asian buyers scrambling for expensive spot cargoes.

Glenfarne Group, the majority owner and developer of the facility, aims to sign binding offtake agreements with buyers soon and advance final investment decisions to later in 2026 and early 2027, company executives told media earlier this year on the sidelines of an energy conference in Tokyo.

“There’s a real interest, particularly with everything happening in the Middle East right now. Everyone would like to get those (preliminary deals) turned into long-term agreements,” Adam Prestidge, president of Glenfarne Alaska LNG, told Reuters in March.

Alaska LNG is designed to deliver North Slope natural gas to Alaskans and export LNG to U.S. allies across the Pacific. An 800-mile pipeline is planned to transport the gas from the production centers in the North Slope to south-central Alaska for exports. In addition, multiple gas interconnection points will ensure meeting in-state gas demand.

The latest Alaska developments show clearly how the Middle East war has put energy security back in the spotlight, making previously challenging locations desirable again. With an estimated 1 billion barrels of oil supply wiped out of markets since the war began, according to Aramco’s Amin Nasser, alternative supply sources have become urgently needed, and not just for the short term. Even if the Strait of Hormuz reopens soon—which at the moment seems unlikely—energy security will in all probability remain a top priority both for energy producers and for consumers.

By Irina Slav for Oilprice.com