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Electricity Act (Amendment) Bill: FG may sell 11 Discos to new investors

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The Federal Government may sell the 11 power distribution companies through a re-privatisation process if the Electricity Act (Amendment) Bill, 2025, currently before the National Assembly, becomes law.

The National Assembly has already initiated a legislative process to enforce sweeping reforms that could see core investors in electricity distribution companies lose their stakes if they fail to improve their investment.

The amendment bill, sponsored by Senator Enyinnaya Abaribe (Abia South), seeks to overhaul the 2023 Electricity Act by addressing regulatory gaps, as it warned that investors risk losing their stakes through share dilution, receivership, or outright re-privatisation if fresh capital is not injected into the sector within 12 months, following years of poor performance and a worsening debt crisis.

This clause comes into effect immediately after an assent is granted to the ongoing amendment of the Electricity Act 2023. The bill has passed its second reading and is currently undergoing further legislative action and discussions.

If passed into an Act, it will empower the Nigerian Electricity Regulatory Commission to compel core investors in the 11 successor Discos to inject fresh capital or face stiff regulatory action, including share dilution, receivership, or outright re-privatisation.

This was disclosed in the draft amendment to the Principal Act, seen by The PUNCH, on Monday. The proposed Electricity Act (Amendment) Bill, 2025, has already attracted condemnation from the Forum of Commissioners of Power and Energy, warning that the bill poses a serious threat to the country’s newly decentralised electricity market and could reverse key reforms achieved under the landmark Electricity Act of 2023.

The bill also gives the commission powers to impose sanctions, including dilution of shares or re-privatisation, on defaulting Discos, particularly those under receivership or financial distress.

The PUNCH reports that there are 11 Discos in Nigeria that service different regions across the country. They include Abuja Electricity Distribution Company, Benin Electricity Distribution Company, Eko Electricity Distribution Company, Enugu Electricity Distribution Company, and Ibadan Electricity Distribution Company.

Others are Ikeja Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electricity Distribution Company, Kano Electricity Distribution Company, Port Harcourt Electricity Distribution Company, and Yola Electricity Distribution Company.

Under the new law, a comprehensive framework must be developed within 12 months to overhaul the financial structure of the Nigerian Electricity Supply Industry, with a strong focus on attracting long-term local currency investments and phasing out what the bill describes as “unstructured and regressive subsidies.”

According to Sections 228J and 228K of the amended Act, the Minister of Power, in consultation with NERC, is required to develop and implement a robust financing framework aimed at de-risking investments across the power value chain and resolving the sector’s chronic debt overhang, estimated at over N4tn.

However, power sector experts and consumer advocacy groups have argued that the proposed law, if passed, can only be effectively implemented if the long-standing subsidy debts crippling the sector are first cleared.

They also recommend extending the recapitalisation deadline to 24 months, similar to the approach adopted during the banking sector recapitalisation, to allow for a more realistic and structured transition.

A copy of the amended act read, “Financing of Projects in the NESI: The Federal Government shall, through the minister and in consultation with the Nigerian Electricity Regulatory Commission, establish a comprehensive framework for financing of projects in the NESI within 12 months from the commencement of this Bill.

“The framework referred to under subsection(1) of this section shall give regard to the extant National Electricity Policy and Strategic Implementation Plan and aim to attract and de-risk investments across the power value chain from generation, transmission, distribution, reduce diesel and petrol-based self-generation and address crippling financial crisis and debt overhang in the Nigerian power sector.”

The proposed Act stipulates that the new financing framework must prioritise long-term local currency financing for gas-to-power and distributed energy projects, a transparent and predictable tariff regime that guarantees cost recovery, the recapitalisation of Discos under NERC’s supervision, a clear determination of federal and state equity stakes in the Discos, and the provision of fiscal and tax incentives to attract investment and avert a sector collapse.

It noted, “The framework established under section 228I of this Bill shall include, but not limited to the following: long-term local currency capital financing for gas-to-power optimisation projects; distributed energy projects, etc, to mitigate foreign exchange risks for investors;

“Commitment to a transparent and predictable tariff regime that allows for cost recovery for efficient operators, progressively phasing out regressive and unstructured subsidies.

“Concession of certain power plants under the portfolio of the Niger Delta Power Holding, as well as commencement and completion of successor Discos’ recapitalisation to be implemented through the directive and supervision of the Nigerian Electricity Regulatory Commission.”

It further stated that the regulatory commission shall have the power to direct the core investors in the 11 successor distribution companies, including those under receivership, to recapitalise their respective equity holdings within such a time frame not exceeding 12 months from the commencement of this bill, and in deserving circumstances impose appropriate sanctions for non-compliance with its directive under this subsection, including an order for dilution of such shares held by core investors or re-privatisation.

It added, “A determination of Federal Government equity stakes in the 11 successor distribution companies with a clear timeframe of not later than 12 months from the commencement of this bill, for both the federal and state governments to make their respective contributions reflective of their equity holdings in the 11 successor distribution companies; and

“Such other mechanisms, such as fiscal and tax incentives to prevent the collapse of the NESI. Without prejudice to the provisions of subsection (2)(c) of this Section, the commission shall have the power to direct the core investors in the 11 successor distribution companies, including those under receivership, to recapitalise their respective equity holdings within such a time frame not exceeding 12 months from the commencement of this bill, and in deserving circumstances impose appropriate sanctions for non-compliance with its directive under this subsection, including an order for dilution of such shares held by core investors or re-privatisation.

“The commission shall consult widely and take such measures as are necessary to ensure that the implementation of any order or directive on recapitalisation under sub-section (3) of this section neither disrupts continuity of service nor undermines investor confidence in the NESI.”

The government’s tough stance follows years of poor performance by the Discos, which continue to deliver erratic power supply despite multiple interventions, including debt forgiveness, financial bailouts, and tariff adjustments.

In May, the Federal Government openly expressed disappointment in the Discos, accusing them of frustrating ongoing reforms. At a media briefing in Abuja, the Minister of Power, Adebayo Adelabu, lamented that despite trillions of naira sunk into the sector, many Nigerians remain in darkness.

“The performance of the Discos has been grossly underwhelming,” Adelabu declared. “We can no longer tolerate excuses. If you can’t invest, give way to those who can.”

“We need to get tough with the Discos, as they can easily frustrate all the gains we have made. They have disappointed us in performance expectations. Whatever we do in generation does not mean anything to consumers if it is frustrated at the distribution points”.

A May 2025 report by the Bureau of Public Enterprises showed that more than 70 per cent of Discos have failed to meet key performance benchmarks set at the time of privatisation in 2013.

Reacting to the proposed timeline and pending directive, an official of power distribution companies dismissed concerns over the impact of the recently amended Electricity Act on Discos, saying the law is binding when assented to, and must be implemented by all stakeholders.

Reacting to industry debates surrounding the new legal provisions, the official, who spoke on condition of anonymity due to the lack of authorisation to speak on the matter, told The PUNCH that the focus should be on compliance and collaboration rather than resistance.

“It is totally irrelevant to say the law affects Discos. When the National Assembly makes laws, it is binding on all of us. What we should all do is to collectively implement and follow the law,” the official said.

The source noted that the amendments strengthen the powers of the Nigerian Electricity Regulatory Commission, a move the Discos are prepared to support.

“The regulatory commission has its powers, and when there is an amendment that further enhances that power, we are all for it. We believe in the wisdom of the National Assembly to amend the law, and we are ready to work with all stakeholders to ensure that the laws are implemented,” he added.

An electricity market expert, Chinedu Amah, says that the electricity sector challenges are not due to a lack of policies, but rather a failure to implement existing frameworks effectively.

The expert noted in an interview on Tuesday that Nigeria is already saturated with policies and proposals, stressing that “policy overload” has become a recurring problem in the sector.

“We have policies on everything in Nigeria. So I don’t think it is a policy problem. Yes, there are policy gaps, but maybe we should just remove all the subsidies, flatten the tariff regime, and allow the market to drive investments,” the source said.

He added that while distribution companies have a responsibility to expand the grid and invest in infrastructure, the conversation must go beyond mere obligations.

“I don’t think it’s enough to say Discos need to make investments. You can’t force them to grow their business. But if there’s a critical infrastructure gap, it must be solved, whether by government, the private sector or through partnerships,” the official said.

However, another Power sector analyst, Habu Sadiek, called for key preconditions to ensure the initiative’s success. Reacting to provisions in the recently amended Electricity Act, Sadiek welcomed the plan but stressed the need for the government to first address pending financial issues within the sector.

“I think it’s a good thing,” he said. “But the government needs to do two things before initiating a recapitalisation programme: settle all outstanding subsidy payments and allow cost-reflective tariffs to prevail.” According to him, without resolving these issues, recapitalisation may not achieve its intended objectives.

He also criticised the 12-month window proposed for Discos to recapitalise, suggesting it was too short and unrealistic given current economic pressures. “Giving the current Disco owners 24 months, rather than 12, would have been better, similar to the Central Bank of Nigeria’s recapitalisation programme,” Sadiek added.

Additional efforts to get comments from the NERC on the issue proved abortive as the phone number of the Director, Public Affairs, Usman Arabi, was unreachable.

Meanwhile, the Minister of Power, Adebayo Adelabu, confirmed ongoing efforts to deploy special teams to underperforming power distribution companies as part of a broader restructuring programme.

Recall that in May 2025, the ministry announced a major overhaul of the power distribution sector, beginning with a pilot reform programme targeting two underperforming electricity distribution companies.

The pilot, scheduled to commence between May and August 2025, will involve one Disco each from the Northern and Southern parts of the country. The plan to restructure the companies came after a meeting with the Japanese International Cooperation Agency, which presented a roadmap titled “Revamping of the Distribution Sector in Nigeria”.

But giving an update on the process which is scheduled to end next month, the Special Adviser, Strategic Communications and Media Relations to the minister, Bolaji Tunji, on Monday, said the process is still ongoing. “It is an ongoing thing and we will brief you at the appropriate time,” he simply stated.

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Use your influence to promote unity and not division – President Tinubu tells Content creators

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President Bola Tinubu has called on young Nigerians active in the digital media space to harness their platforms as instruments of national unity.

Speaking at the opening of the Progressives Digital Media Summit, themed ‘Unveiling the Critical Role of New Media in National Development,’ the President emphasised the importance of verifying information before amplifying it.

He urged the youth to serve as positive catalysts for societal development by building businesses that create employment and producing content that reflects unifying values.

“I urge you to continue using digital platforms to advance our nation’s progress. Build businesses that employ others. Create content that uplifts and unites. Use your influence to foster unity, not division.

Your generation has recognised this moment. You are using digital tools to innovate, educate, and demand accountability. But as your influence grows, so must our collective sense of purpose and responsibility” President Tinubu was quoted as saying in a statement by his Special Adviser on Information and Strategy, Bayo Onanuga

The President commended the creativity and resilience of Nigeria’s youth, describing digital media as a driving force of economic and social transformation, rather than a mere accessory to life.

‘’From developing innovative platforms to building vibrant online communities, you are demonstrating the determination that is redefining what is possible for this country.

You are not waiting for the future; you are building it. Digital media is now a central driver of economic growth, civic engagement, and social change. It broadens representation for those previously unheard.”

The President, however, said his administration is committed to supporting digital innovation through the National Digital Innovation Fund and policies that promote a thriving startup ecosystem.

He also warned practitioners to remain vigilant against disinformation and cyber threats.

The summit convener, Segun Dada, said that in less than a decade, digital media had evolved from a tool of personal connection into a powerful engine for communication, innovation, and influence.

Dada, who is also the Special Assistant to the President on New Media, stressed the importance of harnessing this force for Nigeria’s good while managing inherent risks such as privacy concerns and threats to social cohesion.

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Lady mourns newborn lost to childbirth complications, blames strict church doctrine

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A grieving mother has opened up about the heartbreaking loss of her newborn baby due to complications worsened by her church’s strict doctrine against medical care.

In a now-viral narration, the lady explained that she was born into a church that forbids the use of medicine, medical intervention, or even routine hospital visits. Growing up under this belief, she never questioned it—until she got pregnant.

She shared that she refused antenatal care, took no multivitamins, and avoided the hospital completely because of her church’s teachings. But in her third trimester, she began to feel weak and sick.

Eventually, she defied her family and visited a doctor secretly, only to be diagnosed with pre-eclampsia, a serious pregnancy complication that required urgent hospitalization. When she informed her husband, he was furious she had gone against the church’s teachings. Her family and in-laws backed him, urging her to “have faith.”

Things took a turn for the worse when she fell unconscious one night. She was rushed to the hospital where doctors insisted on emergency surgery (C-section) due to her dangerously high blood pressure. Her husband initially refused medication but eventually allowed the procedure—though not without blame.

Tragically, her baby was born with multiple complications and had to be placed in NICU. After one month, the baby passed away.

Now, she says her husband and his family blame her for the loss, claiming it was due to her “lack of faith.” She, on the other hand, is questioning everything she was raised to believe and says she’s done with the church that cost her child’s life.

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‘World’s oldest baby’ born in Ohio from 30-year-old frozen embryo

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A baby boy born in Ohio last week is being called the “world’s oldest baby” after being delivered from an embryo that had been frozen for more than 30 years.

Thaddeus Daniel Pierce was born on July 26 via adopted IVF to Lindsey and Tim Pierce, a couple from London, Ohio. The embryo had been frozen since May 1994, according to MIT Technology Review.

“We had a rough birth, but we are both doing well now,” said Lindsey, 34. “He is so chill. We are in awe that we have this precious baby.”

Lindsey noted that her husband Tim, 35, was just a toddler when Thaddeus’s embryo was first created. “The baby has a 30-year-old sister,” she added, referencing the biological daughter born from the same embryo batch in 1994.

The Pierces said they were stunned to learn that adopting embryos was even possible. “We thought it was wild,” said Lindsey. “We didn’t know they froze embryos that long ago. We didn’t go into it thinking we would break any records. We just wanted to have a baby.”

To complete the IVF process, the couple traveled from Ohio to Tennessee.

The embryo originated from Lydia Archerd, now 62, who, along with her then-husband, had frozen four embryos in the early 1990s after struggling to conceive. One of the embryos was successfully implanted in a surrogate named Linda, who gave birth to a healthy baby girl in 1994. That daughter is now 30 and has a 10-year-old of her own.

The remaining three embryos stayed cryogenically frozen. Despite divorcing and never having another child, Archerd continued paying $1,000 annually to preserve them. “I always wanted another baby desperately,” she said. “I called them my three little hopes.”

Eventually, after reaching menopause, Archerd decided to donate the embryos through the Nightlight Christian Adoptions agency’s “embryo adoption” program, which allows both donors and recipients to meet.

“It’s been pretty surreal,” Archerd said. “It’s hard to even believe.”

Now, she’s looking forward to meeting Thaddeus and believes he already resembles her daughter. “The first thing I noticed when Lindsey sent me his pictures is how much he looks like my daughter when she was a baby,” Archerd said. “I pulled out my baby book and compared them side by side — and there is no doubt that they are siblings.”

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