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Tariff war; FG intervenes as states, Discos’ rift deepens

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As s the crisis between states and electricity distribution companies continues to degenerate over who has the power to fix electricity tariffs, the Federal Government, through the Nigerian Electricity Regulatory Commission, has summoned all the stakeholders to a meeting scheduled for next week.

Energy commissioners of state governments, under their umbrella body known as the Forum of Commissioners for Power and Energy in Nigeria, have repeatedly insisted that the Electricity Act, 2023 (Amended), has empowered state governments to regulate their respective power markets.

But power distribution companies, under the aegis of the Association of Nigerian Electricity Distributors, insisted that, although the Act enabled the states to regulate their power markets, the state governments lack the power to put a price on cross-border electricity.

As a result of this, neither the states nor the Discos are ready to shift ground over who has the authority to regulate electricity tariffs. As state regulators make moves to design tariffs for the electricity markets in their domains, starting with Enugu State, power distribution companies declared that this cannot work.

The tariff ordered by the Enugu Electricity Regulatory Commission recently also sparked the reactions of power generation companies, including the Niger Delta Power Holding Company, as the Gencos argued that states have no power to dictate the cost of power from the national grid.

To de-escalate the situation, the national regulator, NERC, has invited all the actors involved in the imbroglio to a meeting scheduled to be held next week in Lagos, as the Discos declared again on Thursday that the states should not destroy the power sector with the quest to regulate electricity tariffs.

The General Manager of Public Affairs at NERC, Dr Usman Abba-Arabi, told one of our correspondents in an interview on Thursday that the meeting would discuss the matters and proffer solutions to them.

The NERC spokesman maintained that invitations have been sent to the state regulatory commissions, the distribution companies, and other stakeholders in the Nigerian Electricity Supply Industry.

“The next Nigerian Electricity Supply Industry stakeholders meeting is scheduled for next week in Lagos. State Regulatory Commissions have been invited to attend. The Discos and other industry players will all be in attendance. It’s a forum where industry issues will be discussed and solutions proffered,” he stated.

Abba-Arabi stated that the meeting is purely for the industry and would be done without the attention of the press.

Discos talk tough

The crisis between the Discos and state governments started in July when the Enugu Electricity Regulatory Commission announced that it had slashed the Band A tariff from N209 per kilowatt-hour to N160/kWh, ordering MainPower Electricity Distribution Limited to implement this from August 1, 2025.

As the new tariff regime began on the stated date, MainPower’s energy supplier, the Enugu Electricity Distribution Company, had to cut supply to Enugu by 50 per cent, leaving many customers in darkness. MainPower explained that EEDC had calculated that implementing the tariff cut would lead to monthly losses exceeding N1bn, undermining its obligations to the market.

Reacting to the development during an interview with one of our correspondents on Thursday, the Chief Executive Officer of the Association of Nigerian Electricity Distributors, Sunday Oduntan, warned states and their newly established regulatory agencies not to destroy the power sector.

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Oduntan, who is also the spokesman of the Discos, argued that what the Enugu Electricity Regulatory Commission was planning would not work, saying it was an attempt to draw back the sector. According to him, the Electricity Act, 2023 (Amended), allows the states to generate, transmit, and distribute electricity within their respective states, but does not give them the power to put a price on cross-border electricity from the national grid.

He said states would only control electricity tariffs when they start generating, transmitting, and distributing the same. He accused the EERC of having plans to regulate the cost of a product that does not belong to the state regulator.

“The Electricity Act, 2023 (Amended), allows the states to generate, transmit, and distribute electricity within their respective states. That is just the summary of that law. It is to enable them to take care of their own electricity issues. Now, what happened in Enugu was that the electricity regulatory commission in the state wanted to control the price of a product that does not belong to them.

“Let me explain what I mean: if they generate electricity in Enugu State, and they transmit and distribute it within Enugu State, they have the right to fix the price. But the law is very clear: they are not in charge of cross-border tariffs. What do I mean by cross-border tariffs? This is a product that has crossed outside the borders of your state, for instance, from the national grid.

“So, you cannot put a price on such a product. That product has a cost of production. That is what they were seeking to do, and they are just shooting themselves in the foot; it is not going to work! You can control your electricity, not the electricity that belongs to another person,” Oduntan insisted.

He warned that the power sector would collapse if electricity was sold below the cost of production. He stressed that if the states failed to listen to other stakeholders on the issue, they would only pull down the sector.

“So, when the regulator in the state says the Disco there should sell at a lower price, the question to be asked is this: ‘Is that price below the cost price?’ If it is below the cost price, then the company will collapse. So, it won’t work. They cannot do it. If they insist, then they will destroy the power sector,” he said.

Oduntan added that Enugu could generate power from coal and transmit and distribute it at no cost to the consumers as palliatives, but not the energy from the grid. “They (Enugu) can generate from coal, transmit and distribute it, and can even give it out as palliatives or free of charge to their residents. But not for energy that comes from outside their borders. That is the point. Cross-border tariffs are not in their hands,” he insisted.

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States respond

Meanwhile, the Forum of Commissioners for Power and Energy in Nigeria said it is only concerned about issues that could push the power sector forward. The Chairman of FOCPEN and Commissioner of Power and Renewable Energy in Cross River State, Prince Eka Williams, said the forum would not banter words with the Discos, saying, “We are not in a war.”

According to him, the forum is more concerned about the efforts being made to light up every home in Nigeria. He said the forum will work with other stakeholders to proffer solutions to the challenges in the energy sector, saying he would not comment on what Oduntan said.

After complaints of blackouts and vending glitches, MainPower restored power to Enugu residents, but at the old cost. The Disco ignored the new tariff order that slashed the Band A tariff to charge N209/kWh. Electricity customers in the state said they now pay the old rate after power was restored by MainPower.

However, the EERC kicked against this. It accused MainPower of tariff breach while threatening sanctions. In a public notice, the commission stated that it has come to its attention that Mainpower Electricity Distribution Company Limited has reverted to charging its Band A customers N209.50/kWh, as against the commission’s order of 160.40/kWh.

The commission expressed displeasure that “this violation” persists despite prior directives from the commission mandating strict compliance with the tariff order. “Such actions constitute a breach of the Tariff Order by Mainpower Electricity Distribution Limited,” the commission said, urging Band A customers in Enugu State to report overbilling.

“Band A customers who have been billed above the approved rate are urged to report the discrepancy to the commission with evidence of the breach for necessary regulatory action, which may involve imposing appropriate sanctions on MainPower,” the EERC warned.

Recall that NERC had earlier told the Enugu regulator that any state that wanted to slash tariffs should be ready to pay the shortfall. “As states do not have jurisdiction over the national grid and over electric power stations established under federal laws/operating under licences issued by the commission, they must holistically incorporate the wholesale costs of grid supply to their states without any qualification or deviation in their design of tariffs for end-use customers in order not to distort the dynamics of the market or be prepared to make a policy intervention by way of a subsidy for any deviation in the tariff structure that distorts the wholesale generation, transmission and legacy financing costs in the Nigeria Electricity Supply Industry,” NERC said in July.

But Enugu and other states disagreed with claims by NERC that sub-national entities cannot fix electricity tariffs because they do not generate and transmit electricity. The Special Adviser to the Enugu Governor on Power, Joe Aneke, said states have the power to design tariffs as far as distribution is concerned.

Aneke said the new tariff by the Enugu Electricity Regulatory Commission did not tamper with the costs of generation and transmission, saying it based its calculations on distribution only.

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The Forum of Commissioners for Power and Energy in Nigeria said in a statement that NERC does not have overriding regulatory authority over electricity distribution and tariff setting, noting that the fifth constitutional alteration and the 2023 Act give states exclusive jurisdiction over electricity distribution, whether connected to the national grid or not, emphasising the power of states to adjust tariffs.

Aneke clarified that the EERC’s new tariff would not distort the electricity market because it did not affect generation and transmission. “It’s possible to reduce tariffs, and on the other hand, it’s equally possible to increase them, but these are subject to facts, figures, and numbers. Why am I saying so? Recall that the subnationals do not regulate generation. And in this tariff determination, which Enugu did, the cost of generation was not tampered with at all. It still stays as it is because we know we don’t regulate generation, and we don’t regulate transmission. That is the work of NERC. None of those costs were touched.

“So, why is it not possible for state regulatory commissions to fix tariffs, having been given the law, having the power, having the numbers, and having jaw-jawed with the subcos, with their figures on the table? Let me go to the granular. Everybody here appreciates the fact that there are certain variables and costs that are used or considered before tariffs are determined. If these figures are laid bare, you see that some are not realistic, just to avoid using certain words, and some cannot be sustained. The argument of the presentation cannot be sustained,” Aneke said.

Giving an example, he said MainPower claimed a sum of N9bn for recovery, but the figure was not up to that.

“For instance, a lump sum that was presented at about N9bn. When we got into the nitty-gritty, we looked at the facts, the figures, the numbers, the customer numbers, and the so-called lifeline. We have now discovered that what they presented wasn’t correct. They tacitly understood that and accepted it,” he said.

However, MainPower, in a petition to the commission, said the tariff order published on July 18 was not agreed upon by the parties and that the same did not comply with Regulation No. EERC/R004.

The Disco averred that Section 4.1(c) provides that “in order to avoid ‘gold-plating’ in the tariff using rate of return regulation, the licensee shall be required to review costs with the commission. It is the cost agreed with the commission that shall be allowed for the operator to use in the tariff model for the determination of the price that shall apply in contracts.

“This is because the value chain of the electricity business in Enugu State shall be subject to contracts, and prices shall be determined based on the applicable methodology published by the commission on its website. The review process for the cost shall be as prescribed in the Schedules to these Regulations.”

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Sultan backs Sharia law in Oyo, Ekiti

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President-General, Nigeria Supreme Council of Islamic Affairs (NSCIA) and Sultan of Sokoto, Muhammad Sa’ad Abubakar III, has expressed support for the establishment of an Independent Shariah Arbitration Panel in Ekiti and Oyo states.

But the Aare Ona Kakanfo of Yorubaland, Gani Adams, condemned the attempt to introduce Sharia in the South West, saying it is alien to Yoruba culture and religious beliefs.

The 20th Sultan of Sokoto and the spiritual leader of Nigeria’s Muslims also expressed concern about the spate of intolerance and disregard for the rights of Muslims, especially in the southern part of the country. He noted that Muslims in the South West had been denied their constitutional rights to a Shariah Court of Appeal.

In a statement, yesterday, by the Deputy National Legal Adviser of NSCIA, Haroun Eze, the traditional ruler lamented the unwarranted resistance and objections from political and traditional quarters to the Muslim community’s efforts to establish an Independent Shariah Arbitration Panel in Ekiti.

He said this was coming barely a few weeks after the announcement on the inauguration of a Shariah panel in Oyo generated “unnecessary anxiety, thereby leading to its indefinite postponement.

“The Independent Arbitration Panel, which is a voluntary platform designed solely for the resolution of civil and marital disputes among consenting Muslims, was to fill the inexplicable vacuum created by the failure of the political elite in the South West to establish Sharia courts, as allowed by the Nigerian Constitution, in South West, despite the huge population of Muslims in the region,” Sultan said.

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According to the monarch, such scenarios as the denial of the rights of female students to wear the Hijab despite a Supreme Court judgment, are nothing but calculated attempts to prevent Muslims in the region from practising their faith.

Speaking during the 2025 Oodua festival at Enuwa Square, Ile-Ife, Osun State, yesterday, Adams stressed that the introduction of Sharia was to destabilise the Yoruba land by religious fanatics and fundamentalists. He emphasised that while Saudi Arabia is an Islamic kingdom where Sharia aligns with religious teachings and is widely accepted, Nigeria remains a nation where the constitution guarantees freedom of religion.

According to him, Saudi Arabia is a good example of an Islamic kingdom that practises Sharia law according to the Holy Quran. He said: “The Saudis also adhere strictly to the law, and they are happy because Sharia law is in tandem with their religious beliefs and teachings. But Nigeria is a secular nation where the constitution allows every citizen to practise whatever religion they believe in freely without any intimidation.

“Sharia law is alien to our culture and religious beliefs in Yoruba land; therefore, those religious fanatics masquerading as Muslims should stay away from acts that could set Yorubaland on fire.”

Meanwhile, berating the recent influx of Islamic State’s West Africa Province (ISWAP) in the South West, Adams called on the federal and state government to intensify efforts to tackle insecurity in the region. Adams further expressed the readiness of the Oodua People’s Congress (OPC) to partner other security groups in curbing the scourge in Yoruba land.

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Statement on the Rejection of Sharia Law in South-West Nigeria

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The Sultan of Sokoto and the leadership of the Nigerian Supreme Council for Islamic Affairs (NSCIA) must clearly understand this position: the Yoruba people of South-West Nigeria do not need, want, or accept Sharia law as a governing system in their land.

Yoruba society is uniquely pluralistic. In most families across the South-West, Christians, Muslims, and traditional worshippers coexist peacefully under the same roof. This interwoven family structure is one of our greatest strengths. Introducing Sharia law into such a setting would place families on a collision course, fracture long-standing relationships, and undermine the shared values that have sustained our people for generations.

It is important to ask a fundamental question: Is it compulsory or by force that Muslims must live under Sharia law? Many Muslims across the world practice their faith peacefully without imposing religious law on diverse societies. Faith should be a personal conviction, not a political weapon.

Any attempt—direct or indirect—to Islamise the South-West against the will of its people will be firmly resisted through lawful and collective means, because the Yoruba are not a monolithic religious bloc. Our philosophies, cultures, and worldviews are distinct. We cherish family unity, tolerance, and mutual respect above religious extremism.

Let it be clearly stated: the Yoruba are not religious bigots, nor are we extremists. We are a civilized people who value progress, coexistence, and peace. We reject anything that may plunge our land into chaos, division, or bloodshed. Therefore, those advocating Sharia governance should restrict such ambitions to regions where it is openly accepted. The people of the South-West are not interested.

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Nigeria is constitutionally a secular state, and the implementation of Sharia law as a state system directly contradicts the principles of secularism, equal citizenship, and fundamental human rights. If Nigeria intends to remain united, no religious legal system should be imposed on unwilling populations.

Furthermore, the practical outcomes of Sharia implementation in parts of Northern Nigeria raise serious concerns. These include:

Persistent insecurity and terrorism

Banditry and mass kidnapping

Ethnic and religious tensions

Widespread poverty and hunger

High levels of illiteracy

Deep social inequality and segregation

These realities cannot be ignored, and they offer no justification for exporting such a system to the South-West.

To our Muslim brothers and sisters in the OduduwaYorubaterritory: peaceful coexistence is our collective responsibility. We must not allow the mistakes and crises of other regions to destabilize our homeland. The Yoruba way has always been dialogue, tolerance, and mutual respect—and we intend to preserve it.

Leave the Oduduwa Yoruba land as it is. Let us live in peace.

Ire oooo.

Signed
Comrade Oyegunle Oluwamayowa Omotoyole (Omayor)
Oduduwa Nation Home-Based Youth Leader.

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Sultan-Led NSCIA Slams Southern Resistance To Sharia Panels Establishment

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The Nigerian Supreme Council for Islamic Affairs (NSCIA) under the leadership of its President-General and Sultan of Sokoto, His Eminence, Alh. Muhammad Sa’ad Abubakar, has expressed concern over alleged intolerance and disregard for the rights of Muslims, especially in the southern part of the country.

A statement signed by NSCIA deputy national legal adviser, Imam Haron Muhammed Eze, on Wednesday, said the most recent of this development emanated from Ekiti state where the efforts of the Muslim community to set up an Independent Sharia (Arbitration) panel was met with resistance and objections from both political and traditional quarters.

It added that this came a few weeks after the announcement of the inauguration of a Sharia panel in Oyo state generated anxiety and led to its indefinite postponement.

The Independent Sharia Panel is a voluntary platform designed solely for resolution of civil and marital disputes among consenting Muslims.

According to the statement, the Arbitration and the Sharia Court of Appeal, just like the Customary Court of Appeal are provided in section 275 of the 1999 constitution (as amended) of the Republic of Nigeria confirming the legality of both initiatives.

It added that the NSCIA strongly supported the establishment of the Independent Sharia Arbitration Panel in Ekiti and Oyo States for the intended purpose, especially where the Muslims in the states have been denied their constitutional right to a Sharia Court of Appeal in all the states of South-West Nigeria.

The group, while disapproving of the Supreme Court judgement, said their judgements are nothing but calculated attempts to prevent Muslim in the region from practicing their faith.

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The NSCIA stressed that the council cannot find any legal justification for the resistance. It called on governors and traditional authorities in the southern part of the country, particularly the South-West, to ensure that the constitutional rights of Muslims in their respective domains are preserved and protected.

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