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Power Sector Revenue Declines By 4.54% In Q2’21
Gross revenue of Nigeria’s electricity market declined by 4.45per cent in the second quarter of 2021, Q2’21, to N176.27billion against N184.27billion generated in the first quarter, Q1’21, latest data from the sector has shown.
The data from the Power Sector Working Group, however, showed that the N360.54billion generated in the first half of this year was 24.57per cent higher than the N271.96billion generated in the last six months of 2020.
A monthly analysis of the power sector financials in the first six months of 2021 showed that revenue has been fluctuating month-on-month.
A total of N64.98billion was generated in January, but revenue, however, fell by 13.30per cent in February to N57.35billion.
Further analysis showed that revenue in March rose by 7.41 per cent to N61.94billion but declined again in April by 8.76 per cent to N56.955billion.
In May, revenue rose by 8.24 per cent to N62.07billion.
It, however fell in June to N57.25billion, a drop of 8.42 per cent.
The Power Sector Working Group blamed poor power supply as well as glitches for the fall in revenue in the second quarter, especially in the month of June.
“June is a bit short due to glitches in the sweep mechanism and a low energy supply (there were gas payment challenges we have been working on).
“Through the collection discipline via CBN there is full visibility to DisCos collections. Collections over the past six months have stabilized at between N57billion to N65billion.
“The regulator and policymakers are focusing in the second half of the year on boosting electricity and rolling out phase 1 of Mass Metering to boost supply to reduce tariff and increase collections.
“Procurement is being completed for most of the CAPEX interventions that will help boost supply”, the group added.
Earlier, the group disclosed that the Federal Government has concluded arrangements for the commencement of the second phase of its metering program tagged National Mass Metering Program which it expects to drastically reduce estimated billing by DisCos, that will ensure consumers are billed appropriately for the electricity they consume by installing meters free of charge in household and business premises that are currently unmetered.
The Federal Government provided funding for the program through loans from the Central Bank of Nigeria (CBN), to DisCos.
“Meters are provided to customers free of charge. This is indeed unprecedented and has so far led to the tremendous success recorded so far”.
Speaking on how to grow the electricity market, a leading power sector expert and Managing Director of Target Energy Ltd, Abdullahi Umar, harped on the need to review some of the policies that may be hampering growth and development in the power sector.
Umar said at the weekend that the new Minister of Power, Engr. Abubakar Aliyu, needs to conduct a thorough review of the sector.
“I am part of those stakeholders who are of the view that the declaration of the transitional electricity market (TEM) in February 2015 was too ambitious and premature.
“What should have been was a phased transition into TEM or at the minimum a testing of the market before the full declaration of TEM.
“The errors of such declaration have continued to plague the power sector with a heightened liquidity crisis in 2016 and 2017, that saw a drastic decline of the revenue flows in the power sector, DisCos remittance went from 70 per cent to a sharp decline averaging about 28 per cent – 30 per cent for that period,” he said.
He pointed out that July, 2021, saw the end of Eligible Customer Regulation in the Nigeria Electricity Supply Industry (NESI), adding that the decision by the Nigeria Electricity Regulatory Commission (NERC), to rescind the ECR, has sent mixed signals across the board.
Umar further stated that “we have seen the accusations and counter-accusations between the generating companies (GenCos) and distribution companies on the issue. The action by NERC has signalled the lack of preparedness of the market to accommodate direct sale between market players.
“It is a case of willing seller, willing buyer and an unwilling infrastructure; the market cannot accommodate any distortion at this time especially as the grid still operates at average capacity.”
The ECR allows GenCos and Independent Power Producers to bypass the Bulk Trader for excess un-contracted capacity within their portfolio and sell directly to eligible customers who can take a minimum of 2MW of power monthly.
“The ECR was issued on the 6th of November, 2017 by the then Minister of Power, Works, and Housing, Barrister Babatunde Fashola”, Umar also averred that the “recent repeal of the ECR further demonstrates the weakness in the NESI and the need for more effective and consistent regulation.”
He further advised, “With a new Minister of Power in the saddle, I suggest that a cue is borrowed from the former Minister of Power, Work, and Housing; who commenced his tenure with sector-wide stakeholder consultation and monthly review meetings, it is important that new Minister of Power gets a proper briefing with all market participants in the same room to curtail self-serving suggestions and recommendations.”
“The frequent policy conflict is fast eroding the little gains of the NESI since the declaration of TEM and plunging the sector deeper into uncertainty.
“The new Minister of Power must pursue sector-wide collaboration and effective corporate governance to move the sector forward.
“It is time to go back to the drawing board,” he concluded.
The Nigerian Electricity Regulatory Commission has, however, denied that it has ended or suspended the Eligible Customer Regulations which allowed power generation companies, GenCos, to supply electricity directly to large demand customers.
NERC, in a statement by its General Manager, Public Affairs Department, Dr. Usman Abba Arabi, stated that the Eligible Customer Regulations has not been suspended and at no time has the commission issued a directive for discontinuation of service to any customer.
The commission explained that what it suspended was the unauthorized direct supply by GenCos to big consumers.
News
Fubara Seeks Full Resolution Of Bille Gas Leakage …Pledges Upgrade Of Community Health Centre
The governor has also pledged to upgrade the Primary Healthcare Centre (PHC) in Bille with a view to addressing the health challenges confronting the community.
Fubara made the pledge on Wednesday at the Government House, Port Harcourt during an enlarged meeting of key stakeholders, comprising representatives of the Federal Government, the state government and leaders of the community.
The meeting was held to review the situation in the community and explore available opportunities to save the people from the adverse impacts of environmental pollution.
Addressing the journalists at the end of the meeting, the governor acknowledged the determination of the Federal Government and its agencies to get to the root cause of the problem in Bille and ensure that it is resolved permanently.
“The meeting is in respect of the situation in Bille. You’re aware that there is a case of gas leakage somewhere in Bille and the people have been making some requests that the government should come to their rescue to resolve the situation.
“As a state, we have gone to see the situation in the community, not alone but in conjunction with the industry operators and officials of the Federal Ministry of Petroleum Resources. What we are doing today is an enlarged meeting where all the parties are sitting together to look at the cause of the issue and the most possible way to get the problem resolved,” he said.
Fubara described the outcome of the meeting as successful, stressing that more action would be taken in the next couple of weeks to ensure that the issue is fully resolved.
The Minister of State, Petroleum Resources (Gas), Hon Ekperikpe Ekpo, who led the Federal Government’s delegation to the meeting, expressed appreciation to the governor for his warm hospitality and efforts to address the challenge in Bille community.
Ekpo explained that contrary to the perception in certain quarters, the Federal Government has not been silent over the “gas seepage” but has been working tirelessly towards finding a sustainable solution.
The minister explained that as soon as the incident was reported, the Federal Government deployed experts to the area to understudy the cause of the problem.
According to him, it was difficult at first to understand the cause of the problem since there were no oil or gas infrastructure within the vicinity of the incident, hence the need to conduct a more detailed investigation.
“The investigation is still going but we decided to do a follow-up visit to the area to talk to the people of Bille Community that we need collaboration on their part so that we would be able to arrive at a lasting solution.
“The safety of the people is paramount. We can understand their anxiety, the worry and the danger that this thing poses within the area, but the Federal Government is committed to finding a lasting solution to the problem. The primary responsibility of government is to take care of the welfare and security of the people and that is exactly why we are here to go and see things for ourselves,” he said.
The Chief Executive Officer (CEO), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs Oritsemeyiwa Eyesan, also explained that as the regulatory agency at the centre of the issue, no effort will be spared in the task of resolving the issue.
Eyesan pledged that the NUPRC and operators in the industry were prepared to address the requests of the impacted people in terms of the provision of potable water and fire trucks to the community.
The Public Relations Officer, Council of Chiefs, Bille Kingdom, Chief Rena Dappa, had during the meeting, presented the challenges facing the community and pleaded for government’s support to save the lives and livelihoods of the people.
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Tinubu Unveils Training Programme For 5,000 Metre Installers
The President stated that the scheme is aimed at creating jobs, closing the country’s metering gap and improving electricity supply.
The President disclosed this in a statement on his verified X handle yesterday, describing the initiative, tagged “The Power Force,” as part of his administration’s Renewed Hope Agenda to expand employment opportunities for young people.
According to Tinubu, the programme will equip participants with practical technical skills and connect them to employment opportunities in Nigeria’s power sector.
“Through the Presidential Metering Initiative (PMI), which I established to close Nigeria’s metering gap, end estimated billing, protect consumers and strengthen the electricity market, we are opening a new pathway for 5,000 young Nigerians to be trained as meter installers and technicians under The Power Force. This programme is about jobs, skills and dignity,” he said.
Tinubu said the training would be open to eligible Nigerians who have completed their secondary school education, with a dedicated quota reserved for members of the National Youth Service Corps.
He noted that expanding electricity metering was critical to improving service delivery and promoting transparency in the power sector.
“When homes and businesses are properly metered, Nigerians can pay for what they actually use. When electricity distribution companies collect revenues more transparently and fairly, they are better able to reduce losses, maintain infrastructure, expand connections and invest in better service.
“This is how we build a power sector that is fairer to consumers, stronger for investors and better able to deliver reliable electricity to the Nigerian people,” the President said.
Tinubu said he had directed the Presidential Metering Initiative to work with the Federal Ministry of Youth Development, the National Power Training Institute of Nigeria, and other relevant stakeholders to commence the programme within the next 30 days.
He encouraged qualified young Nigerians to apply, saying the initiative would provide them with marketable skills while supporting efforts to eliminate estimated billing and improve electricity access nationwide.
“I encourage eligible young Nigerians to apply. Join The Power Force. Learn a skill. Earn with dignity. Help us end estimated billing and be part of the work to light up Nigeria,” he added.
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Xenophobia: Third Evacuation Flight From S’Africa Arrives Today -FG
The Ministry of Foreign Affairs disclosed this in a statement issued yesterday by its spokesperson, Mr Kimiebi Imomotimi Ebienfa.
According to the ministry, the Air Peace-operated flight is expected to arrive at the Murtala Muhammed International Airport, Lagos, at about 5:30 a.m. on Friday, July 3, 2026.
It said the evacuation is part of the Federal Government’s ongoing efforts to facilitate the voluntary return of Nigerians from South Africa.
“The third evacuation flight operated by Air Peace will depart Johannesburg today by 12 midnight with 271 returnees. The estimated time of arrival in Lagos is 5:30 a.m. on Friday, July 3, 2026,” the statement read.
The latest batch of returnees follows earlier evacuation flights that brought hundreds of Nigerians back to the country under the Federal Government’s voluntary repatriation programme.
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