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

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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.

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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.

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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.

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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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Kwara strengthens partnership to boost mechanised farming

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The Kwara State Government has strengthened its partnership with the All Farmers Association of Nigeria and other agricultural stakeholders to advance mechanised farming, environmental sustainability and women inclusion across the state.

The renewed commitment was reaffirmed during a courtesy visit by the leadership of the Kwara State chapter of AFAN to the Kwara State Agro-Climatic Resilience in Semi-Arid Landscapes in Ilorin.

This was contained in a statement issued on Tuesday by the Communication Officer of KWACReSAL, Okanlawon Taiwo, a copy of which was made available to The PUNCH in Ilorin.

Speaking during the meeting, the State Project Coordinator of KWACReSAL, Shamsideen Aregbe, assured farmers of the state government’s continued support toward improving food production, mechanised agriculture and climate resilience.

He said, “Tractorisation remains a critical component of modern agriculture. Access to farming equipment is essential for increasing productivity and addressing food security challenges across the state.”

He explained that the tractor support initiative introduced last year followed a World Bank-backed intervention and presidential directive aimed at supporting farmers with mechanised farming equipment.

Aregbe acknowledged concerns raised about operational challenges affecting some tractors, assuring stakeholders that efforts were ongoing to determine the condition and operational status of the equipment to enable effective utilisation by farmers.

“We must sustain engagement with farming communities, particularly in addressing challenges relating to flooding, agricultural logistics and food security,” he added.

The project coordinator also stressed the need for gender equality and inclusion in agricultural interventions across the state.

“The inclusion of women is not negotiable. We must continue to encourage and support women to actively participate in agricultural programmes and leadership processes,” he stated.

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Earlier, the Chairman of AFAN in Kwara State, Shuaib Ajibola, commended KWACReSAL for its interventions in the agricultural sector, reaffirming the association’s readiness to collaborate on programmes aimed at improving farmers’ welfare and environmental sustainability.

Ajibola disclosed that the association planned to commence an agricultural expo and stakeholder engagement programme across the state following its recent inauguration activities to reconnect with farmers and strengthen agricultural outreach.

“Previous editions of the interventions covered the 16 local government areas of the state and involved stakeholders from different agricultural sectors,” he said.

The AFAN chairman also raised concerns over land use disputes and other agrarian issues affecting farmlands, noting that the development had created anxiety among some farming communities regarding land ownership and rights.

“There is a need for sustained stakeholder dialogue and engagement to resolve disputes and ensure peaceful farming activities across communities,” Ajibola added.

Also speaking, the Project Coordinator of AFAM, AbdulRahman Babatunde, applauded KWACReSAL for its support to farmers, especially in the area of agricultural inputs and mechanised farming.

“ACReSAL provided 100 per cent agricultural inputs to participating farmers last year, and beneficiaries across communities can testify to the positive impact of the intervention,” Babatunde said.

He disclosed that farming activities for the current planting season had already commenced, with farmers actively registering, hiring tractors and preparing their farmlands.

In her remarks, the AFAM Women Leader, Sherifat Ibrahim, advocated increased empowerment and technical training for women in rural communities to enable them to actively participate in mechanised farming.

“There is a need for gender-friendly operational systems and practical training that will make tractor handling easier and more accessible for women and young learners involved in agricultural programmes,” she said.

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Meanwhile, the Environmental Safeguards Officer of KWACReSAL, Mr Abubakar Mohammed, reaffirmed the project’s commitment to gender equality, women’s inclusion and effective grievance management across all project activities.

The renewed collaboration comes amid growing efforts by the Kwara state government to improve food production and strengthen climate-smart agriculture through partnerships with farmer associations, development agencies and international organisations.

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See Full List of Top 10 World’s Largest Economies in 2026

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The United States is projected to remain the world’s largest economy in 2026 with a gross domestic product estimated at $32.1 trillion, according to new global economic forecasts obtained from Focus Economics on Wednesday.

The U.S. continues to lead global output through dominance in technology, finance, healthcare, and advanced manufacturing. Growth in artificial intelligence, healthcare innovation, and high-value industries has further widened its lead over other major economies in recent years.

The top 10 world economies ranked in numbers

1. United States — $32.1 trillion
The United States remains the world’s largest economy, accounting for over a quarter of global output in nominal terms. Its economy is highly diversified, with Silicon Valley driving global leadership in AI, biotech, and software, while Wall Street anchors the financial sector.

2. China — $20.2 trillion
China is the world’s second-largest economy, driven by manufacturing, exports, and large-scale industrial production. It remains the leading global producer of electronics, machinery, and textiles, though it faces structural challenges, including a shrinking population and high debt levels.

3. Germany — $5.4 trillion
Germany remains Europe’s largest economy, supported by a strong industrial base and the Mittelstand network of medium-sized manufacturing firms that form the backbone of its export strength.

4. India — $4.5 trillion
India continues its rapid economic rise, driven largely by services and information technology. Its economy has more than doubled over the past decade, supported by a young population and expanding domestic demand.

5. Japan — $4.4 trillion
Japan remains a global manufacturing powerhouse in robotics, automobiles, and electronics, although long-term growth is constrained by an aging population and structural economic stagnation.

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6. United Kingdom — $4.2 trillion
The United Kingdom is a major service-based economy, with strengths in finance, insurance, and real estate, anchored by the City of London.

7. France — $3.6 trillion
France has a diversified economy led by luxury goods, aerospace, agriculture, and manufacturing, with global brands such as Airbus and LVMH playing major roles.

8. Italy — $2.7 trillion
Italy combines a strong services sector with manufacturing strengths in fashion, machinery, and automobiles, driven largely by its industrial northern regions.

9. Russia — $2.5 trillion
Russia remains heavily dependent on oil and gas exports, with energy revenues playing a central role in its economy despite ongoing sanctions and geopolitical pressures.

10. Canada — $2.4 trillion
Canada rounds out the top 10, supported by natural resources such as oil, forestry, and mining, alongside a strong services and financial sector.

Economists say the global economy is increasingly being shaped by technology, demographics, energy transitions, and geopolitical tensions, all of which will influence how these rankings evolve in the coming years.

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Nigeria misses OPEC oil production quota again

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Again, Nigeria has missed its crude oil production quota set by the Organisation of the Petroleum Exporting Countries after averaging 1.49 million barrels per day in April, below the 1.5 mbpd benchmark.

Figures from the Nigerian Upstream Petroleum Regulatory Commission showed that the country produced an average of 1,488,540 barrels of crude daily in April, representing about 99 per cent of the OPEC quota. When condensates were added, total daily production rose to 1.66mbpd

Last month, the NUPRC said oil production now averaged 1.8mbpd. However, data released on Tuesday was at variance with the report. The latest data mean Nigeria remained below its OPEC allocation for the ninth straight month since July 2025.

The NUPRC document showed that combined crude oil and condensate production peaked at 1.85 mbpd during the month, while the lowest output stood at 1.46 mbpd. The PUNCH reports that the April figures are an appreciable improvement compared to March, when oil output was 1.55mbpd.

Nigeria’s oil production has struggled for years due to crude theft, pipeline vandalism, ageing infrastructure, and underinvestment in the upstream sector. Although output improved marginally in April compared to March, it was still insufficient to meet the country’s OPEC target, underscoring persistent challenges in ramping up production despite government efforts to boost volumes.

The PUNCH reports that Nigeria’s crude production in March was 1.38 mbpd. While there was a 69,000 bpd increase from the 1.31 mbpd recorded in February, the figure is still 117,000 bpd below the OPEC quota.

The figures for February indicated a month-on-month decline of 146,000 barrels per day, widening the country’s shortfall from its OPEC production allocation. This is the eighth consecutive month the country has failed to meet the OPEC quota since July 2025.

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Recall that although Nigeria recorded a marginal improvement in January, when production rose from 1.422 mbpd in December 2025 to 1.46 mbpd, the rebound was short-lived as output fell significantly in February 2026.

Earlier data from NUPRC had also shown that crude oil production weakened at the end of 2025. Production declined from 1.436 mbpd in November 2025 to 1.422 mbpd in December, before recovering slightly in January.

In 2025, Nigeria’s crude oil production fell below its OPEC quota in nine months of the year, meeting or slightly exceeding the target only in January, June, and July.

Nigeria opened 2025 strongly, producing 1.54 mbpd in January, about 38,700 barrels per day above its OPEC allocation. However, production slipped below the quota in February at 1.47 mbpd and weakened further in March to 1.40 mbpd, marking one of the widest shortfalls during the year.

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