Featured
NBET Pays GenCos 50% Of Invoice On Power Supply …Minister Blames Collapse Of Transmission, Distribution Lines
Power generation companies (GenCos) were paid just half of their total invoice to the Nigerian Bulk Electricity Trading Plc (NBET) for power supplied to the National Grid in the first nine months of last year.
Industry data released by the Nigerian Electricity Regulatory Commission (NERC) showed that the GenCos were paid N311.06billion out of the total invoice of N614.58billion, representing 50.61percent.
This was, however, an improvement compared to what the GenCos received over the same period in 2020 where NBET paid just 24.03percent (N136.03billion) of the N569.14billion invoice sent in by the power generators.
A monthly analysis of data on NBET payments to GenCos from January to September, 2021, showed that the electricity bulk trader paid N37.04billion or 51.9percent of the N71.37billion invoice for energy supplied in January, 2021.
The GenCos got N26.19billion, representing 39.6percent of the N66.15billion invoice sent to NBET for energy supplied in February, 2021.
The payment for power supplied in March was N35.78billion or 51.9percent of the N68.89billion invoice sent to NBET.
Also, NBET payment for energy supplied in April was N39.46billion, representing 56.6percent of N69.65billion sent in by the GenCos.
For May, NBET paid the GenCos N40.54billion or 55.3percent of the N73.30billion invoice for energy supplied.
In June, 2021, the GenCos were paid N31.88billion or 48.1percent of the N66.20billion invoice sent to NBET for energy supplied to the national grid.
Also, NBET paid the GenCos N36.03billion or 52.4percent of the N68.71billion invoice for energy supplied in July, 2021.
In August, the GenCos were paid N31.14billion, representing 46.4percent of the N67.16billion invoice sent to NBET, while in September, the GenCos got N32.99billion or 52.2percent of the N63.15billion invoice sent to NBET for energy supplied.
The NBET implements the Minimum Remittance Order issued by the Nigerian Electricity Regulatory Commission (NERC) to all electricity distribution companies (DisCos), which sets the minimum percentage payment each DisCo is to remit to NBET monthly.
It is from the DisCos’ remittances that NBET pays the invoice sent in by the GenCos.
NBET, in a statement in Abuja, yesterday, by Head, Corporate Communications, Henrietta Ighomrore, said it would continue to deploy strategies and initiatives to enhance the market liquidity in the sector through improving payments to the generation companies, further supported by its power sector reform program and the market discipline committee.
NBET had in 2016 conceptualise and began the implementation of its N701.9billion Payment Assurance Facility (PAF), when generation capacity was greatly threatened due to shortage of gas and the inability of some power generation companies to meet their immediate obligations.
NBET explained that the PAF was efficiently managed and disbursed from January, 2017 till December, 2018, and resulted in a quantum leap of 6500MW generation capacity to a 7659MW at the end of the PAF.
The success of the N701.9billion PAF-led to sustainable generation capacity and increased available electricity, this success led to the birth of PAF 11.
The implementation of PAF 11 which is N600billion facility was implemented for 2019/2020, and later metamorphosed into the Power Sector Reform Programme.
“NBET has consistently demonstrated efficiency and transparency in the administration of the financial flow”, the company added.
She further stated that NBET is committed to ensuring timely and efficient payment to GenCos to enable the generators to fulfill their obligations and maintain sustainable supply of electricity to the grid.
Ighomrore stated that NBET is engaging with all stakeholders in the value chain to ensure payment improvement and viability of the Nigerian electricity market.
Despite the obvious poor financial state of the Nigerian Electricity Supply Industry (NESI), the Minister of Power, Engr. Abubarkar Aliyu has insisted that the financial viability of the sector was not in doubt.
Speaking at a power correspondents’ event in Abuja, Aliyu said the Federal Government was reviewing the sector with the intent of making needed changes to grow the industry.
According to him, “to make the long term changes that will move the sector forward, we are presently looking at the Electric Power Sector Reform Act, 2005 (EPS), and reviewing aspects that constitute stagnation to the sector.
“The whole essence of this is to achieve good quality, stable, reliable and affordable electricity in Nigeria, which is indeed the yearning of the good people of Nigeria. The right policies, when carefully implemented and monitored, with constant reviews and checks, will lead us to our desired Sector growth.
“During my watch as a minister, I will always ensure that the conversation and growth path strategies are discussed and adopted, after careful reviews and possible outcomes. We are aware that the power sector is made up of both government and private sector players. The plan of the government is to ensure that all players focus on the big picture with a proper alignment to achieve the desired growth. The primary purpose of government is to develop policies and laws and to properly orient the players”.
He explained that one of his “cardinal goals, on the assumption of office, is to reduce or totally eliminate the human factor issues limiting the growth of the sector. It is important to note, as I have observed that the viability of the sector is not in doubt.
“We just need to boldly deal with some challenges militating against the desired growth, some of which are Transmission and Distribution bottlenecks, funding difficulties, Transmission wheeling inadequacy, old and dilapidated distribution infrastructure.
“Others are confidence in the electricity market, energy losses, non-payment of electricity bills and lack of transparency within sector players, amongst others,” he added.
Similarly, Minister for Power, Mr Abubakar Aliyu has blamed poor power generation and distribution in the country on the continuous collapse of transmission and distribution lines, saying the government is working hard to improve power supply in the country.
He explained that the country at the moment has an installed capacity of 13,000MW but can evacuated only 5,000MW to the National Grid.
The minister, who made this known, yesterday, in Makurdi during a courtesy call on Governor Samuel Ortom while on a working visit to Benue State, assured that Federal Government was working hard to boost power generation and transmission in the country.
He said, “power is one area that has been receiving attention of this Federal Government. We know that the government owns 40percent of the distribution. The National Grid is controlled from Osogbo and must receive enough energy to transmit power. Government has set out to rehabilitate the transmission grid and we are beginning to see results.
“Our national transmission has not increased from 5,000MW but it has not dropped. We used to have more than 15 to 17 system collapses in the past but we only experienced two in 2021.
“We will see improve this year 2022. It is a year of delivery. The Yandev to Makurdi transmission line will also be completed within six months,” he assured.
On the Presidential Power Initiative, he said it was being implemented in partnership with the German Government and driven by Special Purpose Vehicle with the minister of finance as the board chairman.
According to him, under the project, the Federal Government had ordered 10 power transformers to be deployed all over the country which would boost electricity supply in the country.
The minister, who was accompanied by the Minister for State, Power, Mr. Goddy Agba, explained that they were in the state to inspect the ongoing upgrade of the Joint Sub Stations from Kashibilla in Taraba State “where there is a dam and power plant to Yandev in Gboko Local Government Area of Benue State which has been completed and already giving power to Takum, Wukari and its environs. The project’s capacity is 40MW but there are technical issues we are addressing.”
Receiving the delegation, Governor Samuel Ortom commended President Muhammadu Buhari for improving on power distribution in the country.
“The Power Ministry is committed to execution of projects under their purview. I can attest to the fact that there is an improvement to what we had seen in the past as far as power generation and distribution is concerned. I commend the President for this,” the governor said.
President Bola Tinubu yesterday signed into law four tax reform bills aimed at transforming Nigeria’s fiscal and revenue framework.
The four bills include: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
They were passed by the National Assembly after months of consultations with various interest groups and stakeholders.
The ceremony took place at the Presidential Villa, yesterday.
The ceremony was witnessed by the leadership of the National Assembly and some legislators, governors, ministers, and aides of the President.
The presidency had earlier stated that the laws would transform tax administration in the country, increase revenue generation, improve the business environment, and give a boost to domestic and foreign investments.
“When the new tax laws become operational, they are expected to significantly transform tax administration in the country, leading to increased revenue generation, improved business environment, and a boost in domestic and foreign investments,” Special Adviser to the President on Media, Bayo Onanuga said on Wednesday.
Before the signing of the four bills, President Tinubu had earlier yesterday, said the tax reform bills will reset Nigeria’s economic trajectory and simplify its complex fiscal landscape.
Announcing the development via his official X handle, yesterday, the President declared, “In a few hours, I will sign four landmark tax reform bills into law, ushering in a bold new era of economic governance in our country.”
Tinubu made a call to investors and citizens alike, saying, “Let the world know that Nigeria is open for business, and this time, everyone has a fair shot.”
He described the bills as not just technical adjustments but a direct intervention to ease burdens on struggling Nigerians.
“These reforms go beyond streamlining tax codes. They deliver the first major, pro-people tax cuts in a generation, targeted relief for low-income earners, small businesses, and families working hard to make ends meet,” Tinubu wrote.
According to the President, “They will unify our fragmented tax system, eliminate wasteful duplications, cut red tape, restore investor confidence, and entrench transparency and coordination at every level.”
He added that the long-standing burden of Nigeria’s tax structure had unfairly weighed down the vulnerable while enabling inefficiency.
The tax reforms, first introduced in October 2024, were part of Tinubu’s post-subsidy-removal recovery plan, aimed at expanding revenue without stifling productivity.
However, the bills faced turbulence at the National Assembly and amongst some state governors who rejected its passing in 2024.
At the NASS, the bills sparked heated debate, particularly around the revenue-sharing structure, which governors from the North opposed.
They warned that a shift toward derivation-based allocations, especially with VAT, could tilt fiscal balance in favour of southern states with stronger consumption bases.
After prolonged dialogue, the VAT rate remained at 7.5 per cent, and a new exemption was introduced to shield minimum wage earners from personal income tax.
By May 2025, the National Assembly passed the harmonised versions with broad support, driven in part by pressure from economic stakeholders and international observers who welcomed the clarity and efficiency the reforms promised.
In his tweet, Tinubu stressed that this is just the beginning of Nigeria’s tax evolution.
“We are laying the foundation for a tax regime that is fair, transparent, and fit for a modern, ambitious Nigeria.
“A tax regime that rewards enterprise, protects the vulnerable, and mobilises revenue without punishing productivity,” he stated.
He further acknowledged the contributions of the Presidential Fiscal Policy and Tax Reform Committee, the National Assembly, and Nigeria’s subnational governments.
The President added, “We are not just signing tax bills but rewriting the social contract.
“We are not there yet, but we are firmly on the road.”
The Senate has issued a 10-day ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) over its failure to appear before the Senate Committee on Public Accounts probing alleged financial discrepancies amounting to over ?210 trillion in its audited reports from 2017 to 2023.
Despite being summoned, no officials or external auditors from NNPCL showed up yesterday.
However, representatives from the representatives of the Economic and Financial Crimes Commission, Independent Corrupt Practices and Other Related Offences Commission and Department of State Services were present.
Angered by the NNPCL’s absence, the committee, yesterday, issued a 10-day ultimatum, demanding the company’s top executives to appear before the panel by July 10 or face constitutional sanctions.
A letter from NNPCL’s Chief Financial Officer, Dapo Segun, dated June 25, was read at the session.
It cited an ongoing management retreat and requested a two-month extension to prepare necessary documents and responses.
The letter partly read, “Having carefully reviewed your request, we hereby request your kind consideration to reschedule the engagement for a period of two months from now to enable us to collate the requested information and documentation.
“Furthermore, members of the Board and the senior management team of NNPC Limited are currently out of the office for a retreat, which makes it difficult to attend the rescheduled session on Thursday, 26th June, 2025.
“While appreciating the opportunity provided and the importance of this engagement, we reassure you of our commitment to the success of this exercise. Please accept the assurances of our highest regards.”
But lawmakers rejected the request.
The Committee Chairman, Senator Aliyu Wadada, said NNPCL was not expected to submit documents, but rather provide verbal responses to 11 key questions previously sent.
“For an institution like NNPCL to ask for two months to respond to questions from its own audited records is unacceptable,” Wadada stated.
“If they fail to show up by July 10, we will invoke our constitutional powers. The Nigerian people deserve answers,” he warned.
Other lawmakers echoed similar frustrations.
Senator Abdul Ningi (Bauchi Central) insisted that NNPCL’s Group CEO, Bayo Ojulari, must personally lead the delegation at the next hearing.
The Tide reports that Ojulari took over from Mele Kyari on April 2, 2025.
Senator Onyekachi Nwebonyi (Ebonyi North) said the two-month request suggested the company had no answers, but the committee would still grant a fair hearing by reconvening on July 10.
Senator Victor Umeh (Anambra Central) warned the NNPCL against undermining the Senate, saying, “If they fail to appear again, Nigerians will know the Senate is not a toothless bulldog.”
Last week, the Senate panel grilled Segun and other top executives over what they described as “mind-boggling” irregularities in NNPCL’s financial statements.
The Senate flagged ?103 trillion in accrued expenses, including ?600 billion in retention fees, legal, and auditing costs—without supporting documentation.
Also questioned was another ?103 trillion listed under receivables. Just before the hearing, NNPCL submitted a revised report contradicting the previously published figures, raising more concerns.
The committee has demanded detailed answers to 11 specific queries and warned that failure to comply could trigger legislative consequences.
The National Association of Nigerian Travel Agencies (NANTA) said over 17 million Nigerians travelled out between 2023 and 2024.
This is as the association announced that it would be organising a maiden edition of Eastern Travel Market 2025 in Uyo, Akwa Ibom State capital from 27th to 30th August, 2025.
Vice Chairman of NANTA, Eastern Zone, Hope Ehiogie, disclosed this during a news briefing in Port Harcourt.
Ehiogie explained that the event aims to bring together over 1,000 travel professionals to discuss the future of the industry in the nation and give visibility to airlines, hospitality firms, hospitals and institutions in the South-South and South-East, tagged Eastern Zone.
He stated that the 17 million number marks a significant increase in overseas travel and tours.
According to him, “Nigerian travel industry has seen significant growth, with 17 million people traveling out of the country in 2023”.
Ehiogie further said the potential of tourism and travel would bring in over $12 million into the nation’s economy by 2026, saying it would be a major spike in the sector, as 2024 recorded about $4 million.
“The potential of tourism and travel is that it can generate about $12 million for the nation’s economy by 2026. Last year it was $4 million.
“In the area of travels, over 17 million Nigerians traveled out of the country two years ago for different purposes. This included, health, religious purposes, visit, education and others,” Ehiogie said.
While highlighting the potential of Nigeria’s tourism, he said the hospitality industry in Nigeria has come of age, saying it is now second to none.
The Vice Chairman of NANTA, Eastern Zone further said, “We are not creating an enabling environment for business to thrive. We need to support the industry and provide the necessary infrastructure for growth.”
He said the country has a lot of tourism potential, especially as the government is now showing interest in and supporting the sector.
Ehiogie emphasized that NANTA has been working to support the industry with initiatives such as training schools and platforms for airlines and hotels to sell their products.
He added, “We now have about four to five training schools in the region, and within two years, the first set of students will graduate. We are helping airlines sell tickets and hotels sell their rooms.”
Also speaking, former Chairman of the Board of Trustees of NANTA, Stephen Isokariari of Dial Travels, called for more support from the industry.
Isokariari stated, “We need to work together to grow the industry and contribute to the nation’s Gross Domestic Product.
“With the right support and infrastructure, the Nigerian travel industry has the potential to make a significant contribution to the nation’s economy.”