Business

Poor Nigerians, others to get tariff relief with the Electricity Act

Published

3 weeks ago

October 3, 2025

The new Chairman of the Nigerian Electricity Regulatory Commission, Abdullahi Ramat, has revealed that schools, hospitals and low-income Nigerians will benefit from a tariff relief package under the Electricity Act 2023.

This was as he made known his determination to implement the Power Consumer Assistance Fund as enshrined in the Electricity Act.

Ramat disclosed this in Kano when he received the Chief Medical Director of the Aminu Kano Teaching Hospital, Prof. Abdurrahman Sheshe, and the hospital’s management team on a congratulatory visit to his residence.

He explained that the Commission is set to roll out the Power Consumer Assistance Fund, which is designed to cushion the impact of rising electricity tariffs on vulnerable consumers and critical institutions.

PCAF is a special support fund created by law to help poor and vulnerable Nigerians pay for electricity.

The fund will also help critical institutions like schools and hospitals by cushioning the impact of high tariffs.

The fund, which will be managed by NERC, will come from the Federal Government through the National Assembly budget, while some categories of electricity users, especially bigger or richer customers, will also contribute a small amount.

NERC will be in charge of managing, keeping records, and deciding how the money is shared.

Section 122(1) of the Act states that “There is established the Power Consumer Assistance Fund (in this Act referred to as ‘PCAF’) to be used for the purposes specified.” Subsection (4) further clarifies that “The PCAF shall be used to subsidise underprivileged power consumers as specified by the Minister in consultation with the Commission.”

The law empowers NERC to determine who contributes to the fund and how much. Section 123(1) provides that “The Commission shall determine the contribution rates to be sent by designated consumers and classes of consumers and eligible customers to the PCAF and the subsidies to be disbursed from the PCAF, in accordance with policy directions issued by the Minister.”

Under Section 124, all consumers, including large “eligible customers”, will make contributions at rates fixed by NERC. While regular consumers will pay through their distribution companies, industries and other eligible customers will remit directly to the commission.

The Act comes with teeth. Section 126 warns that “Any person who fails to pay to the Commission or a distribution licensee, within the prescribed time, any amount owed under this Part, commits an offence and is liable to a fine not exceeding three times the amount owed.”

The new NERC boss, who is still awaiting National Assembly’s approval as of the time of filing this report, posted on his X handle that the PCAF would be rolled out.

“I received Prof. Abdurrahman Sheshe, the CMD, and the entire management of Aminu Kano Teaching Hospital on a congratulatory visit in my house here in Kano. We discussed how to ensure steady and affordable power for the hospital.

“I explained NERC’s plan to roll out the PCAF (Power Consumer Assistance Fund) under the Electricity Act 2023, which will cushion tariff impacts for schools, hospitals, and low-income consumers,” he stated.

The PUNCH reports that the previous plan to roll out the PCAF did not succeed.

While urging the hospital management to embrace cost-saving measures through energy audits, phasing out inefficient equipment and metering staff quarters and shops, Ramat said the commission would continue to engage the Kano Electricity Distribution Company to resolve disputes swiftly and ensure reliable supply.

“Our duty remains clear: to protect the rights of consumers while maintaining investor confidence by fostering an efficient, transparent market structure and investor-friendly ecosystem,” Ramat said.

He noted that the initiative aligns with government efforts to balance affordability with sustainability in the nation’s electricity market.

The Minister of Power, Adebayo Adelabu, promised in 2024 that the Federal Government would subsidise electricity in hospitals and universities by 50 per cent, but that has yet to materialise. Though Adelabu did not specify if this would be under the PCAF.

In his analysis, an expert in the sector, Adetayo Adegbemle, said he had been the lone voice promoting PCAR, stating that Ramat has chosen to do the right thing.

The convener of PowerUpNigeria, Adegbemle, maintained that as the sector teeters on the brink of liquidity crises, the Power Consumer Assistance Fund emerges as a critical solution, offering a structured alternative to subsidies while addressing the needs of diverse customer segments.

According to him, the government’s subsidies that freeze end-user tariffs below cost created a wide gap between cost-reflective tariffs and the rates charged to consumers, resulting in a massive monthly subsidy burden of approximately N262bn, as only 9.5 per cent of GenCos’ invoices were settled from the market, leading to cash flow shortages that caused gas suppliers to curtail supplies.

He added that NERC’s intervention in April 2024 brought temporary relief by unfreezing tariffs for Band A customers. However, resistance to further tariff adjustments and the government’s reluctance to revise rates for lower bands have stalled progress.

Adegbemle stressed that the PCAF offers a transformative approach to resolving NESI’s liquidity challenges.

“Unlike traditional subsidies, which blanket the entire sector, PCAF is designed to provide targeted financial support to electricity consumers while allowing the DisCos to charge cost-reflective tariffs.

“The fund will be financed through contributions from the government and eligible customers, with rates and durations determined by the Nigerian Electricity Regulatory Commission. NERC will oversee PCAF, ensuring transparent management and equitable distribution of benefits.

“Initially, all customers will receive support through PCAF, reducing the financial burden during macroeconomic volatility. As economic conditions stabilise, the fund will prioritise underprivileged customers, aligning with Section 122(4) of the Electricity Act,” he stated.

He suggested that PCAF should provide a minimum monthly subsidy of N5,000 per customer, equivalent to 25 kWh of electricity, saying low-income consumers using less than 25 kWh monthly will effectively enjoy a full subsidy, ensure affordability while promote efficient energy use.

“By enabling DisCos to charge cost-reflective tariffs, PCAF ensures they can cover operational costs and meet their financial obligations to GenCos. This eliminates the persistent cash flow issues that have plagued NESI, fostering a more resilient supply chain.

“Unlike blanket subsidies, PCAF focuses on delivering support where it is needed most. Low-income households, which typically consume minimal electricity, will benefit from full subsidies, ensuring they are not excluded from access to power,” he stated.

Adegbemle added that the scheme ought to have been implemented since the first quarter of 2025.

Other experts who spoke with The PUNCH expressed optimism over the scheme, stating, however, that accountability and identifying the poor consumers are important factors.

Earlier, Ramat, whose plan is to digitise the power sector, alluded to the fact that the challenges in the sector are enormous, as nearly 50 per cent of generated power is lost, leaving efficiency at barely half capacity.

This, he said, has discouraged investors and fuelled today’s liquidity crisis, despite 20 years of the reform and 12 years of the privatisation, while other privatised sectors like telecom thrive with liquidity and competition.

“The sector’s mixed ownership (private and government) makes digitisation fragmented; no single entity can compel another. But NERC, as the apex regulator, has the mandate to drive full digitisation across the value chain. By deploying IT, we can optimise operations, streamline processes, integrate payment and monitoring systems, stabilise the grid, enforce transparency, reduce losses such as TLF and ATC&C, and boost efficiency.

“Part of my plan includes developing an app available in both Android and iOS which will integrate the APIs of DISCOs and NISO to provide NERC with real-time visibility of payment channels and system operations,” he said in a post.

He promised to deploy a whistleblowing tool so that consumers can anonymously report electricity theft, meter bypass, and illegal connections.

“We will partner with the EFCC, borrowing a leaf from the successful naira mutilation campaign, to enforce arrests, apply name-and-shame measures, and carry out prosecutions, with penalties of up to three years’ imprisonment, as provided by section 208 of the Electricity Act 2023. This approach will not only curb electricity theft but also help reduce tariffs, since part of these losses are factored into consumer bills through MYTO.

“Honest customers should not continue paying for the crimes of electricity thieves. Ending electricity theft and vandalism is a journey we must all travel together.

“I firmly believe that with digitisation, we can tackle the sector’s challenges head-on: reducing losses, boosting efficiency, restoring investor confidence, protecting consumers, attracting competition, increasing liquidity, and ultimately lowering tariffs. This is not theory, it is achievable. And as Chairman/CEO of NERC, it is a promise,” Ramat said.

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Business

Speed approvals, boost deepwater investments, NNPCL charges NUPRC

Published

1 hour ago

October 23, 2025

Newsbreak365_Admin

The Nigerian National Petroleum Company Limited has called on the Nigerian Upstream Petroleum Regulatory Commission to deepen its investment facilitation role, particularly around deepwater projects, to keep Nigeria competitive in the global energy market.

The Group Chief Executive Officer of NNPCL, Mr. Bayo Ojulari, made the call in an interview published on Wednesday in The Upstream Gaze, a special edition of the NUPRC’s in-house publication, commemorating the Commission’s fourth anniversary.

Ojulari commended the NUPRC for key achievements over the past four years, including the digitalisation of licensing and regulatory processes, improved crude oil measurement and metering systems, the successful conduct of bid rounds that attracted new investors, and progress in gas flare commercialisation and new domestic gas supply obligations.

He, however, stressed the need for the Commission to go further by strengthening its regulatory efficiency and deepening investor confidence in the country’s upstream environment.

“Going forward, I would urge the Commission to continue to prioritise investment facilitation, especially around deep-water projects, and to create even more efficient regulatory approval cycles. The global competition for capital is fierce, and Nigeria must remain attractive to investments,” Ojulari said.

The PUNCH reports that the commission earlier this year unveiled plans to unlock an additional 810,000 barrels of crude oil per day from Nigeria’s deepwater oil fields through a new cluster and nodal development initiative.

If fully implemented, the additional output could raise Nigeria’s total monthly crude production by approximately 2.51 million barrels per day with condensates.

This would significantly strengthen the country’s revenue generation capacity and improve compliance with OPEC+ production quotas.

Speaking on NNPCL’s investment outlook under his leadership, Ojulari said the company’s top priorities include making gas a transition fuel, growing national oil and gas production, and enhancing domestic energy security.

“We plan to unlock Nigeria’s over 200 trillion cubic feet of proven gas reserves to drive power generation, industrial growth, and exports,” he said.

According to him, the company is also committed to delivering on President Bola Tinubu’s directive to raise national crude oil production to three million barrels of oil per day and gas output to 12 billion standard cubic feet per day by 2030.

Ojulari explained that NNPCL’s production growth targets would be realised through brownfield and greenfield developments across onshore and shallow-water terrains, facilitating major Final Investment Decisions in deepwater, and accelerating exploration in frontier basins.

He added that NUPRC’s continued regulatory support remains pivotal, as NNPCL and its partners currently contribute over 95 per cent of national production.

The NNPCL boss disclosed that the company’s deliberate reforms have begun yielding tangible results, especially through the establishment of the NNPC Production War Room, the Industry-Wide Security Architecture, and Periodic Industry Leadership Engagements.

According to him, these initiatives have collectively driven up production efficiency, improved collaboration, and reduced oil theft across major corridors.

“The War Room, launched in mid-2024, has been a major success story, streamlining processes, resolving production bottlenecks, and sustaining base production,” he said.

Ojulari said the Industry-Wide Security Architecture had improved coordination between private security contractors, government agencies, regulators, and host communities, leading to better crude evacuation, terminal recovery, and reduced pipeline vandalism.

He revealed that these efforts have lifted Nigeria’s annual average crude and condensate output to over 1.7 million barrels per day, the highest since 2020, restoring confidence among key industry stakeholders.

Ojulari also highlighted the company’s efforts to enhance domestic refining capacity and ensure long-term energy security.

“We are finalising the rehabilitation of our refineries and pursuing strategic partnerships to promote sustainable value creation and enhance commercial viability,” he said.

He added that NNPCL is supporting private sector refiners such as the Dangote Refinery and modular operators while securing long-term crude supply contracts and expanding logistics infrastructure, including pipelines and depots.

“Our goal goes beyond numbers. It’s about energy security, job creation, and building a vibrant downstream sector,” he added.

Ojulari reaffirmed that the company remains aligned with the Presidential Mandate to attract $60bn in new oil and gas investments by 2030, noting that ongoing collaboration between NNPCL and NUPRC is essential to achieving Nigeria’s production and energy transition ambitions.

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Business

Nigeria imports 15bn litres of petrol despite Dangote refinery output

Published

2 hours ago

October 23, 2025

Newsbreak365_Admin

Nigeria imported about 15.01 billion litres of Premium Motor Spirit (petrol) between August 2024 and the first 10 days of October 2025, representing nearly 69 per cent of the total national petrol supply during the 15-month period. This is despite the fact that the Dangote refinery started petrol production in September 2024.

Figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority show that total PMS supply for the period stood at 21.68 billion litres, with 6.67 billion litres, or 31 per cent, coming from domestic refining. The data, titled Import vs Domestic Supply Performance (PMS Daily Average Supply – August 2024 to October 2025), captured supply trends over 15 months, highlighting the gradual rise in local production and a corresponding drop in imports.

According to the breakdown, imported petrol averaged 44.60 million litres per day in August 2024 and rose to 54.30 million litres per day in September 2024, marking the peak of import dependence during the period. This was a time when the Dangote refinery began PMS supply to the local market.

It was noted that imports began to decline steadily, falling to 24.15 million litres per day by January 2025, 19.26 million litres per day in September 2025, and 15.11 million litres per day within the first 10 days of October 2025.

The decline in petrol imports showed that the Dangote refinery is gradually taking a significant share of the market, but this comes with stiff competition from petrol importers, who repeatedly accused Aliko Dangote of stifling competitors with consistent price reductions.

As domestic refining grew consistently through the period, local production, which stood at 6.43 million litres per day in September 2024, increased to 22.66 million litres per day in January 2025 before stabilising around 20 million litres per day in subsequent months. By October 2025, the Dangote refinery was producing an average of 18.93 million litres per day, exceeding imports for that month.

The data also showed notable supply fluctuations across the months as total daily PMS supply peaked at 60.73 million litres in September 2024 before dropping to 44.08 million litres in April 2025 and further to 34.04 million litres by October 2025. The variations reflected shifts in both import availability and refinery operations.

This is an indication that daily consumption has dropped significantly from an average of 60.73 million litres per day in September 2024 to 51.57 million litres in July 2025, 41.86 million in August, 34.86 million in September and 34.04 million per day in the first 10 days of October 2025.

Recall that the Federal Government totally deregulated the petrol sector in September last year, stopping the controversial fuel subsidies which the Nigerian National Petroleum Company Limited was paying on imported petrol.

A month-by-month analysis revealed that the highest domestic output was recorded in January 2025, with a daily average of 22.66 million litres, while the lowest was in August 2024, when no local production was recorded because Dangote had yet to commence production at that time.

The highest total supply was in September 2024 at 60.73 million litres per day, followed by October and November 2024, when total daily supply averaged 56.01 and 55.75 million litres, respectively. By the end of the review period, cumulative petrol imports had reached 15,009.85 million litres, while domestic production amounted to 6,672.44 million litres, giving a combined total of 21,682.29 million litres supplied over the 445 days between August 2024 and October 1-10, 2025.

The figures underline the ongoing transition in Nigeria’s petrol supply structure, showing a gradual but measurable increase in the contribution of domestic refining. However, the data also confirmed that imports continued to dominate the national supply mix for most of the period.

It could be recalled that while marketers insisted on importation, the Dangote refinery has been exporting petrol to other countries, including the United States. The 650,000 refinery has consistently boasted of its capacity to meet local fuel demands while exporting to foreign countries.

Aliko Dangote’s plan for building the refinery was to end Nigeria’s dependence on imported fuel despite being an oil-producing nation. However, marketers have continued to import petrol into Nigeria, competing heavily with the refinery.

Recently, the Dangote refinery challenged marketers to bring their trucks for fuel loading, boasting that it has over 310 million litres of petrol in its ranks. The Vice President of the Dangote Group, Devakumar Edwin, stated that marketers were allowed to bring any trucks for loading at the gantry, as the refinery had enough fuel for the local market and for exports.

“I have more than 310 million litres of PMS as of today inside my tanks, apart from the production which is coming out every day. Bring your tankers. We will load. Any number of tankers you bring, we’ll load. It’s a challenge I’m throwing today. No one can come and tell me I’m not loading. We can load any number of tankers you bring. So, you can see whether I have the capacity to produce or not. We have more than 310 million litres as of now,” he stressed.

The Dangote refinery had in September exported more fuel to foreign nations when Saudi Aramco and others in the Middle East Gulf closed refineries for maintenance.

A senior officer at the Dangote refinery told our correspondent that the $20bn Lekki-based plant exported large volumes of Premium Motor Spirit (petrol), aviation fuel, and diesel to other countries in August.

The official, who spoke in confidence as he was not authorised to speak with the press, said, “We export PMS, diesel and aviation fuel.”

Our correspondent gathered that the Dangote refinery had supplied two long-range cargoes of fuel to the Mideast Gulf region between June and July. According to Argus Media, a heavy refinery turnaround season in the Mideast Gulf was expected to exacerbate an already tight gasoline market in the fourth quarter, prompting key regional suppliers to boost imports.

In February, the Dangote refinery said it sold two cargoes of aviation fuel to Saudi Aramco. Aliko Dangote announced that the refinery achieved a significant milestone by successfully exporting the two cargoes of jet fuel to Saudi Aramco, the world’s largest oil producer.

Dangote said the refinery was reaching the ambitious goals it set for itself as it ramps up production.

“We are reaching the ambitious goals we set for ourselves, and I’m pleased to announce that we’ve just sold two cargoes of jet fuel to Saudi Aramco,” he said in February, adding that since its production began in 2024, the refinery has steadily increased its output.

Some months ago, he disclosed that the oil refinery had begun exporting PMS to other countries of the world. According to him, between June and July 2025, the refinery exported up to one million tonnes of petrol.

“Today, Nigeria has actually become a net exporter of refined products. From the beginning of June to date (July 22), we have exported about one million tonnes of PMS within the last 50 days,” he said.

The NMDPRA also testified that the Dangote refinery supplies an average of 20 million litres of petrol into the local market.

“Without a shadow of a doubt, the operation of the 650,000-barrel-per-day Dangote refinery has changed the supply dynamics, with an average daily contribution of up to 20 million litres, undoubtedly with potential for a future ramp-up,” NMDPRA Chief Executive, Farouk Ahmed, said recently in Lagos.

The data underscores Nigeria’s ongoing transition from heavy reliance on imported petrol to a more balanced supply structure driven by domestic refining. While the country still depends significantly on foreign fuel, the steady growth in local production, particularly from the Dangote refinery, signals a gradual shift toward self-sufficiency.

However, the competition between importers and the refinery, coupled with market pricing challenges, suggests that achieving full local dominance will take time. With refining capacity expanding and consumption patterns adjusting, Nigeria appears to be entering a new phase in its downstream petroleum landscape, one defined by increased domestic output, reduced imports, and the potential to finally end decades of fuel dependence.

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Business

Reps to mediate in PENGASSAN, Dangote refinery dispute

Published

2 days ago

October 21, 2025

Newsbreak365_Admin

The House of Representatives on Tuesday resolved to intervene in the recent face-off between members of the Petroleum and Natural Gas Senior Staff Association of Nigeria and the Dangote Refinery, which had disrupted petroleum product distribution nationwide.

The resolution of the House followed the consideration and adoption of a motion of urgent public importance co-sponsored by Kano and Sokoto lawmakers, Alhassan Doguwa and Abdussamad Dasuki, respectively, at Tuesday’s plenary.

Titled: “Need to protect private investment from adversarial unionism,” the lawmakers drew the attention of their colleagues to the significance of the Dangote Refinery, describing it as the largest private petroleum refinery in Africa.

The face-off between PENGASSAN and the Dangote Refinery led to an industrial action which commenced on September 29, 2025, disrupting the operations at the $20bn refinery.

It also led to a disruption in Nigeria’s crude oil production, with a reported daily loss of approximately 200,000 barrels over three days.

The disruption worsened the petroleum supply situation across the country, resulting in scarcity and long queues at filling stations in several states, resulting in severe hardship for millions of Nigerians.

Speaking on the motion, Doguwa, who represents Doguwa/Tudun Wada Federal Constituency, Kano State, stressed the need to protect the Dangote Refinery given its strategic significance to the nation’s economy.

He said, “The House is aware that the Dangote Refinery is a strategic private investment of immense national importance, with the potential to guarantee energy security, reduce import dependency, generate employment, and conserve foreign exchange.

“We are aware that the Dangote Refinery operates within a Free Trade Zone, and therefore falls under the regulatory framework of the Nigeria Export Processing Zones Authority, particularly Section 18(5) of the Nigeria Export Processing Zones Act which clearly states that ‘Employment in the free zone shall be governed by rules and regulations made by the Authority and not subject to the provisions of any enactments relating to employment matters.’

“The House is concerned that actions by labour unions that disregard the legal protections conferred on Free Zones under the NEPZA Act not only constitute a breach of law but also create a hostile investment environment that may deter future local and foreign investors;

“We are worried that if private investments of strategic national importance are continually subjected to unlawful disruptions by adversarial unionism, Nigeria risks not only the failure of key economic assets but also the erosion of investor confidence necessary for national growth and development.”

In his contribution, the member representing Chibok/Damboa/Gwoza Federal Constituency, Ahmad Jaha, urged the House to tread carefully, adding that the call for a probe as prayed by the motion was ill-timed.

Following the adoption of the motion, the House urged its leadership to broker peace between the two parties in the interest of the nation.

It also urged the Federal Ministries of Labour and Employment, Industry, Trade and Investment, as well as Justice, to “Jointly develop and implement a national framework or set of policies to safeguard private investments of strategic national importance from adversarial and unlawful union actions.”

It further charged the Federal Ministry of Justice and NEPZA to ensure full enforcement and compliance with the provisions of Section 18(5) of the Nigeria Export Processing Zones Act in all relevant Free Zone operations.

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