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AGUSTO & CO: The State of the Nigerian Electric Power Industry – Is there any light at the end of the Tunnel?


As the Electric Power Industry (the Industry) announced yet another review of electric tariffs in January 2021, after much deliberation and delays, a key question that comes to mind is ‘will a rise in tariffs result in better power supply?’ To answer this question it is imperative to examine the state of the Industry post-privatisation.
Since the privatisation exercise that commenced in 2013, the Nigerian Electric Power Industry has remained fraught with many of the same challenges ranging from unreflective tariffs to high loss levels, obsolete infrastructure, weak policy implementation and gas shortages. All of these have culminated in weak and erratic power supply and a dependence on self-generation by many businesses and households.
Furthermore, electricity distribution in Nigeria remains plagued by high technical, operational and commercial inefficiencies. In 2020, the country’s 11 Distribution companies (DisCos) only billed for 74% of the energy received from the transmission company, below the 81% reported in the prior year. Billing efficiency which has historically been impaired by a low metering rate and energy theft, with only 37% of registered electricity customers metered in 2020, was severely impacted by the Covid-19 pandemic.
Agusto & Co believes the impact of the pandemic was more visible amongst consumer groups with post-paid meters and estimated bills given that the social distancing rules and movement restrictions established to curb the spread of the virus impaired the physical billing process.
Collection efficiency also fell marginally to 66% from 68% one year prior. Consequently, the aggregate technical, commercial and collection (ATC&C) losses for the 11 DisCos rose to 51% in 2020 from 45% in 2019. This high loss level remains one of the many reasons for the kickback from electricity consumers on tariff increases, especially in the absence of a significant and immediate improvement in power supply.
Agusto & Co notes that these challenges have not only weakened the ability of operators to meet electricity demand but also threaten their financial viability, with significant implications for the fiscal health of the country. Despite the series of amendments to the tariff structure, cash flows from MYTO (the Multi Year Tariff Order) have remained insufficient to fully cover the costs of electricity supplied.
The fear of the impact of a ‘rate shock’ on consumers and the accompanying loss of “political capital” has prevented the effective implementation of necessary amendments that will align the MYTO’s assumptions with economic realities. Electricity has thus consistently been sold at a discount, with end-user electricity tariffs much lower than the cost of electricity supplied.
The shortfall from unreflective tariffs has been borne in large parts by the Federal Government of Nigeria (FGN) through multiple intervention funds and payment assurance facilities from the Central Bank of Nigeria (CBN) totaling close to ₦2 trillion[1] (US$4.9 billion[2]) as at the end of 2020, equivalent to c.6% of CBN’s balance sheet. Despite this level of intervention, the generating companies had estimated receivables of over ₦400 billion in 2020 alone. Whilst the interventions have been central in ensuring the profitability of operators along the Industry’s value chain, they remain insufficient and unsustainable.
More recently, there have been notable efforts by the primary regulator – NERC – to minimise the challenges faced by operators in the Industry. In particular, tariffs have been raised to near cost reflective levels and adjusted to match consumption via an initiative dubbed Service Reflective Tariffs (SRT). The new tariff model as the name indicates is expected to reflect and match the quality of service received by the ultimate consumers of electricity. Distribution companies will therefore discriminate in the application of tariffs; consumers who enjoy longer daily supply will be expected to pay higher rates and vice versa.
The SRT like other MYTO models has key estimates (and projections) for macroeconomic and industry-specific indicators including inflation, exchange rates and electricity generation. Other company-dependent factors considered in the determination of tariffs include the amount of electricity received and the aggregate technical, commercial and collection (ATC&C) losses. Ultimately, tariff shortfalls (the difference between end-user tariffs and cost reflective tariffs) are expected to taper off by the end of 2022, with tariffs fully reflective and sufficient to cover the cost of production.
Whilst a number of the assumptions align with market realities, we note that the inflation and electricity generation estimates in the SRT model are much higher than the actual entries reported for the corresponding periods. In our view, these disparities have the potential to impair the attainment of cost reflectiveness. Agusto & Co believes adopting scenario analysis and modelling will provide a more robust framework to determine an appropriate tariff structure for the Industry in a dynamic macroeconomic environment such as Nigeria’s.
In addition to the SRT, the primary regulator – the National Electricity Commission (NERC) – introduced a minimum remittance threshold for each distribution company which stipulates a mandatory payment that must be made to the bulk trader for electricity received. Furthermore, in February 2020, NERC introduced guidelines for ‘Merit Order Dispatching’ which involves ranking electricity generation and dispatch by the transmission company of Nigeria (TCN) in ascending order of costs with the cheapest electricity – such as those from Hydro plants with no fuel cost component – ahead of more expensive plants. The order also provides guidelines on the alignment of invoicing for capacity charge and energy delivered as well as a framework for the settlement of any imbalance between DisCos and TCN. The Merit Dispatching Order should eliminate the shift of responsibility for load rejection prevalent between DisCos and the TCN and improve the technical and operational efficiencies of these operators.
In August 2020, the Central Bank of Nigeria issued a circular that all deposit money banks are expected to warehouse and manage collection inflows from all distribution companies – DisCos, (including the collection agents of these DisCos) under specific guidelines as contained in the document. The objective of this ‘ring fencing’ is to secure cash collected from the DisCos and ensure that these distribution companies meet their mandatory obligations.
While operators are generally optimistic that the new tariffs and accompanying regulations would enhance efficiency and position the Industry on the trajectory towards achieving financial independence and ultimately improvements in the volume and quality of electricity supply, Agusto & Co remains cautious. In our view, to truly achieve the objectives of privatisation, reforms need to be accompanied by a strong and enabling regulatory environment. Furthermore, improved access to finance, efficiency in billing and metering as well as consistent and secure gas supply are vital to reap the benefits of privatization in the long run. While the journey to constant electric power supply remains far and long-winded, Agusto & Co believes the initiatives undertaken by the primary regulator – NERC– if consistently enforced have the potential to move the Industry forward in the right direction.
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Mbah to NBA: “Law, the Conscience of the Nation, Justice Sector Reform, a Cornerstone of Our Administration”
By ORJI ISRAEL


Governor of Enugu State, Dr. Peter Mbah, has reminded lawyers that the law is more than a profession, as it serves as the conscience of the nation.
Mbah, who spoke during the opening of the 2025 Annual General Conference, AGC, of the Nigerian Bar Association, NBA, at the International Conference Centre, Enugu, on Sunday, also restated the commitment of his administration to justice sector reform, saying that it remained the cornerstone of his government.
“Let me say this: the theme of this year’s conference, ‘Stand Out, Stand Tall,’ is a timely reminder of the responsibility we bear as lawyers and leaders. The law is not just a profession – it is the conscience of the nation. We are not only courtroom advocates; we are also defenders of truth, architects of peace, and champions of equity,” he said.
Listing some concrete steps by his administration towards justice sector reform, the governor said, “Since assuming office, we have made justice sector reform a cornerstone of our governance. Just a few examples will suffice.
“We were among the first states to fully implement financial autonomy for the judiciary in line with Section 121(3) of the 1999 Constitution (as amended). This has enhanced the efficiency, independence, and dignity of our courts.
“We have carried out a comprehensive rehabilitation and digitization of our courtrooms across the three senatorial zones. The High Court Complex in Enugu is equipped with e-filing, virtual hearing facilities, and an integrated case management system.
“To decongest our courts and promote alternative dispute resolution, we have strengthened and expanded the Enugu Multi-Door Courthouse, making it a model in the region for commercial and family dispute settlement.
“Through partnership with civil society and the NBA, we have expanded access to pro bono legal services for indigent citizens and detainees, especially in our rural areas. No one should be too poor to afford justice.
“We have also carried out an extensive codification and review of obsolete state laws to reflect modern realities, ensure gender justice, and promote the ease of doing business in Enugu.
“Perhaps one of the reforms I am proudest of – we introduced real-time transcription for our courts. Attaining Verbatim Reporting for the courts has eliminated the strain of longhand recording on judges, cut down on delays and improved productivity,” he said.
He, however, asserted that none of the reforms was an end in itself, noting that they remained part of a broader vision of his government towards making Enugu State the preferred destination for investment, innovation, and inclusive development.
“From smart schools, safe communities to accessible healthcare – our vision cannot be achieved without a justice system that is fair, functional, and trusted,” he added.
The opening ceremony was chaired by the Sultan of Sokoto, His Eminence, Dr. Sa’ad Abubakar III, while the keynote address was given by charismatic leader of the Economic Freedom Fighters of South Africa and a member of country’s national parliament, Julius Malema.
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70% of Christians killed in 2024 are African – Group
ORJI ISRAEL reports that the group accused ANC of maintaining silence on religious persecution, while deepening ties with ideological extremists in Tehran


Recent reports indicate that over 4,400 Christians were murdered for their faith last year, while over the past decade, jihadist violence has driven 16 million Christians from their homes, millions of which are African citizens.
This is according to global Christian charity, Open Doors, which also confirms that for every five Christians, one will face persecution in Africa specifically.
Open Doors’ 2025 World Watch List reveals the top 10 most dangerous countries for Christians are dominated by Islamic states in the Middle East and Africa, including Afghanistan, Pakistan, Iran, Yemen, Sudan, Somalia, Libya, and Nigeria. A more detailed UK Parliament briefing recently noted that 70% of Christians killed in 2024 were indeed in Africa.
Over the last six months, the brutality against Christians in Africa has escalated to alarming levels, with a series of devastating attacks across the continent. Just last month, ISIL-affiliated rebels stormed a Catholic church in Komanda, DRC, murdering close to 50 worshippers, including women and children. That same month in Mozambique, Islamic State fighters captured and beheaded six Christians from Natocua village, just across South Africa’s border. A month earlier, in June 2025, armed militants in Nigeria massacred nearly 200 Christian civilians in Yelwata village.
“What we are witnessing is not random violence or isolated attacks. It is a deliberate, coordinated campaign by jihadist networks to wipe Christianity from vast regions of Africa and the Middle East,” says SAFI spokesperson, Bafana Modise. “These acts of terror are the early stages of a genocide against Christians, and history will record who spoke out and who shamefully looked away. Tragically, the ANC has chosen the latter.”
This silence is even more damning in light of last week’s news that South Africa’s military chief, Gen. Rudzani Maphwanya, met with Iranian Maj. Gen. Amir Hatami in Tehran to discuss deepening military and strategic ties, when Iran remains one of the world’s most notorious persecutors of Christians.
A recent report by the Middle East Africa Research Institute (MEARI) warned that Pretoria’s deepening ties with Tehran has compromised South Africa’s democratic foundations by defending Iran at the UN and IAEA, downplaying its human rights abuses, and potentially benefitting from covert support, including speculation around the ANC’s repayment of a multi-million-rand debt shortly after filing the ICJ case against Israel.
“These atrocities are not just crimes against individuals; they are part of a war against the freedom of religion itself,” Modise warns. “This is religious genocide, and it is gaining momentum as it edges closer to South Africa’s borders.”
Instead of defending religious freedom, the ANC government has remained silent. It has issued no meaningful condemnation or rallying call to protect persecuted Christians: “The ANC has done nothing to defend the rights of Christians,” says Modise. “Instead, it has squandered South Africa’s moral standing on discredited genocide charges against Israel – the one country in the Middle East where Christians live in safety and equality.”
This betrayal is even more unforgivable in a nation where 80% of South Africans identify as Christian. Freedom of religion is a fundamental human right, but the ANC, once the global champion of human rights, has made its bed with regimes and groups that have used Islamic law to suppress and destroy those freedoms.
“The ANC’s alliances make it clear: they have abandoned South Africa’s Christians, choosing friendship with the very forces driving this campaign of genocide,” Modise concludes. “Silence in the face of such evil is complicity, and the ANC is guilty of both. They have aligned themselves with Jihadist Islamic ideology, without further thought.”
We call on every pastor, every congregation, and every believer to demand that the ANC account for its indifference and betrayal. The blood of persecuted Christians cries out from across the African continent. If South Africa will not stand with them now, the day may come when their fate becomes our own.
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Government Should Support Media with Tax Incentives, Relief on Import Duties – Soneye
….Media Sustainability: Soneye Advocates Tax Reliefs, Independent Fund for Journalism


Former Chief Corporate Communications Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Mr. Femi Soneye, has called on the Federal Government to support the Nigerian media with targeted incentives, including tax reliefs and import duty waivers on essential media tools.
Soneye made the appeal in Abuja on Tuesday after receiving the NUJ FCT Excellence in Corporate Communications Award, conferred on him by the Nigerian Union of Journalists (NUJ), FCT Council.
The NUJ leadership, led by Chairperson Grace Ike, alongside the Deputy Chair, Secretary-General, and other executives, described Soneye as a consummate professional who has distinguished himself with tact and excellence in the communications field.
In his remarks, Soneye noted that while the Nigerian media remains one of the most vibrant in Africa, it continues to grapple with systemic challenges that weaken its effectiveness.
“The Nigerian media remains one of the most vibrant in Africa, but it also faces systemic challenges, financial, political, legal, and technological that weaken its effectiveness. The government can play a supportive role by granting tax incentives or relief on import duties for newsprint, broadcast equipment, and digital infrastructure,” he said.
He also urged the Federal Government to establish an independent media development fund to support investigative journalism, community radio, and newsroom innovation, drawing parallels with models in South Africa, the United States, and Canada.
The award underscores Soneye’s long-standing contributions to journalism and corporate communications, as well as his advocacy for a stronger, independent, and sustainable Nigerian media.
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