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PENGASSAN fires back as Shettima defends Dangote

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The Petroleum and Natural Gas Senior Staff Association of Nigeria has tackled the Presidency over comments by Vice President Kashim Shettima condemning its industrial action over a rift with the Dangote refinery.

PENGASSAN told The PUNCH on Monday that it would take same action if its members were sacked again.

This comes as some individuals staged a protest in Kaduna, accusing PENGASSAN of attempting to sabotage the Dangote refinery.

PENGASSAN had last week shut down critical oil and gas facilities over allegations that Dangote refinery sacked 800 workers who joined the union. But the Dangote refinery said it only sacked a few workers who were sabotaging the facility, saying this was part of the company’s reorganisation.

But oil and gas workers embarked on a strike in defence of their colleagues, causing the nation losses in oil and gas production as well as a drop in power generation.

The intervention of the Federal Government restored normalcy as PENGASSAN suspended the strike on Wednesday after the Dangote Group was asked to redeploy the sacked workers to other business units.

Despite the suspension of the strike that caused queues in filling stations, the price of cooking gas has yet to return to about N900 per kg, as it still sold for N2,000 in Lagos and other places as of Monday.

Speaking on Monday at the opening of the 2025 Nigerian Economic Summit in Abuja, Shettima described Dangote as an institution and a pillar of Nigeria’s economic development. He warned that Nigeria is greater than PENGASSAN, and no one should hold the country to ransom.

“Aliko Dangote is not an individual; he’s an institution, and he’s a leading light in Nigeria’s economic parliament,” the Vice President said.

“And how we treat this gentleman will determine how outsiders will judge us. If he had invested $10bn in Microsoft, in Amazon, or in Google, he probably might be worth $70 to $80bn by now. But he opted to invest in his country, and we owe it to future generations to jealously protect, promote, preserve, and protect the interests of this great Nigeria.

“I wish to call for caution, retrospection, and a deeper sense of patriotism from both labour and the organised private sector in defining and improving the relationship between labour and industry in the interest of maintaining our steadily improving economic fortunes. It’s not about holding the whole nation to ransom because of a minor labour dispute.

“Nigeria is greater than PENGASSAN. Nigeria is greater than each and every one of us,” Shettima emphasised.

Reacting, the National President of PENGASSAN, Festus Osifo, said the nation was bigger than Dangote and the Presidency as well.

According to Osifo, PENGASSAN had a mandate to protect the jobs of its members sacked by the Dangote refinery for joining the association. This mandate, he said, would be discharged whenever the next arises.

“Of course the nation is bigger than PENGASSAN, the way it’s bigger than Dangote and the Presidency. We have a mandate to protect the jobs of our members, that we will discharge whenever the need arises,” Osifo told The PUNCH.

Osifo, who doubles as the President of the Trade Union Congress, stressed that if the same situation that led to the sack of its workers occured again, it would deploy the same strike action to address it.

“Should this same event occur again tomorrow, our approach will be exactly the same,” he stated.

Asked for his reaction to social media comments that the Federal Government might be pushed to dissolve PENGASSAN because a strike by its members threatened energy security, Osifo responded, “Does the law prohibit workers’ right to strike?”

Similarly, the General Secretary of PENGASSAN, Lumumba Okugbawa, said, “Is Nigeria not bigger than any individual or institution?”

Also speaking, the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, said the Federal Government would not relent in its support for domestic production as part of efforts to stabilise the economy and sustain growth.

“The next focus of government is sustaining the reform for achieving growth and development. Inflationary expectations are on the decline, and we shall continue to support domestic production,” he said.

Bagudu explained that reforms introduced May 2023 had helped avert fiscal collapse, ease macroeconomic pressures, and strengthen resilience.

He said the removal of fuel subsidies, deregulation of the foreign exchange market, tighter borrowing discipline and the naira-for-crude policy were bold choices that laid the foundation for stability.

The minister added that reforms were beginning to yield results, with GDP growth improving to 3.4 per cent in 2024 and further strengthening into 2025.

According to him, the government is prioritising agriculture, manufacturing and infrastructure to sustain the downward trend in inflation and ease the cost of living.

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He stressed that expanding access to credit, mechanisation, storage and transportation remained critical.

Bagudu projected GDP growth of 4.6 per cent in 2025 and said the upcoming National Development Plan 2026–2030 targets a $1tn economy by 2030, anchored on sustained reforms, diversified revenue and a stronger domestic production base.

The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, further said the Federal Government was determined to ensure that trade policies were translated into practical outcomes that boosted exports, created jobs and embedded Nigeria firmly in global value chains.

“The question is not just about policy ambition but about delivery. How does Nigeria translate trade policy from impact to practice, so that within the next three years exporters can begin to feel the impact? Talk is cheap, and it is time to move from words to results,” she said.

Oduwole disclosed that the government had taken concrete steps to deepen trade integration across Africa.

She noted that Nigeria was the first country to implement the five-year review of the African Continental Free Trade Area, inaugurating a central coordination committee in the second quarter of 2025 to provide a clear roadmap for stakeholders.

“We submitted our tariff schedules and indicated interest to serve as the territorial champion under AfCFTA, and that was announced in February. We are aligning private sector dynamism with public reform to ensure Nigeria is not left behind,” she added.

According to her, the ministry has negotiated with countries including Uganda and Ecuador, identifying opportunities for Nigerian businesses in apparel, light manufacturing and cosmetics.

On structural barriers such as high trade costs, congested ports and export rejections, Oduwole said government was working on reforms to cut costs by as much as 75 per cent, streamline agencies, and strengthen standards.

“It is about taking policy from paper to practice and ensuring that our exporters and manufacturers feel the impact. That is the practical work we have been doing in the last 10 to 11 months,” she said.

In his opening address, the Chairman of the Nigerian Economic Summit Group, Olaniyi Yusuf, warned that the way the country treated its domestic investors would determine the confidence of foreign investors in committing long-term capital to Nigeria.

He cited persistent inflationary pressures, high debt service obligations and subdued investor confidence as major obstacles to inclusive growth.

According to him, Nigeria is currently in the stabilisation phase, but he cautioned that progress could be lost if reforms were not deepened.

“Stabilisation has given us breathing space, but it is not the destination. We must consolidate and accelerate reforms deliberately to avoid sliding backwards,” he said.

The NESG chairman outlined seven areas that should guide reform consolidation, including industrialisation, infrastructure, investor confidence, fiscal sustainability, inclusion, institutional strengthening and security.

He added that micro, small and medium enterprises must be supported with affordable finance, stable power and technology to drive industrial growth.

He emphasised that policies must be inclusive and felt in households through jobs, healthcare, education and social protection.

“Dead businesses don’t employ workers, they don’t pay salaries, and they don’t pay taxes,” he warned, stressing that regulators must enable, not stifle, private sector growth.

Yusuf urged policymakers to send a clear signal of credibility and trust. “Nigeria must say clearly: we will protect, not picket, investors,” he said, calling for a national framework anchored on industrialisation, infrastructure, investment, inclusion and institutions to guide the 2026–2030 National Development Plan.

Kaduna anti-PENGASSAN protest

On Monday, scores of protesters took to the streets in Kaduna to march in solidarity with the Dangote refinery, accusing those they called a well-connected oil importation cartel and elements within the labour movement of trying to frustrate the country’s nascent local refining drive.

The protest, themed ’National Unity Against Sabotage: Reclaiming Our Petroleum Sector for the People’, sought urgent government action to protect the multi-billion-dollar refinery from “systematic attacks” by the so-called elements of the oil importation cartel.

The protesters, who gathered under the aegis of Partners for National Economic Progress, converged on the Murtala Mohammed Square before winding through Alkali Road, Ali Akilu Road, Ahmadu Bello Way and Muhammadu Buhari Way, carrying placards with inscriptions such as “Protect Local Refining”, “End Fuel Import Cartel”, and “Support Dangote Refinery.”

One of the movement’s leaders, Igwe Ude-Umanta, told the crowd the Kaduna demonstration formed part of a nationwide campaign that began in Abuja on October 2.

He described the rallies as a national liberation effort aimed at saving Nigeria’s economy from forces he said were determined to keep the country dependent on imported fuel.

This struggle is against the cartel that destroyed our public refineries, killed the textile industry, and now wants to strangle the Dangote refinery. We will not let them succeed. The days of holding Nigeria hostage are over,” Ude-Umanta stated.

See also  PENGASSAN stops gas, crude supply to Dangote refinery

He went down memory lane on Kaduna’s once-thriving textile industry, saying the same pattern of sabotage that gutted that sector was being replayed in the petroleum industry.

“Kaduna used to be a textile hub before the same pattern of sabotage destroyed it. Today, they want to replicate that in our petroleum sector by frustrating local refining. We will resist them,” he said.

PANEP leaders accused PENGASSAN of complicity, describing recent union actions as tantamount to “economic terrorism”.

PANEP urged either an outright halt to fuel importation or the imposition of heavy tariffs to protect domestic refining and related industries.

“Countries that place tariffs are not stupid; they are protecting their economies,” Ude-Umanta said, adding that importers were frightened by the prospect of local refining exposing price manipulation and corrupt practices.

Dahiru Maishanu, who also addressed the rally, said the union’s conduct had gone beyond legitimate labour protest and was instead assisting the importers’ agenda.

“What PENGASSAN did was not unionism; it was sabotage. The Federal Government should have arrested their leadership to serve as a deterrent. We cannot allow people to hide under labour unions to commit crimes against our economy,” Maishanu said.

The protesters demanded urgent intervention of President Bola Tinubu to ensure that local refineries like Dangote are supplied with crude oil on terms equal to those offered to foreign refiners.

“President Tinubu must stamp his feet. Local refineries must receive crude at the same price offered to foreign refiners. That is key to sustaining the refinery and boosting investor confidence,” they said.

They accused the union of blocking the sale of locally produced liquefied petroleum gas and aviation turbine kerosene, insisting those actions were intended to keep prices artificially high and preserve monopoly profits.

“They are punishing Nigerians to protect their greed. How can importers compete with producers? They are scared because local refining will expose their fraud and end their control over pricing,” Maishanu said.

The demonstrators praised the Dangote refinery for what they called its early impact on prices of Premium Motor Spirit and diesel, saying ordinary Nigerians were already “breathing fresh air” because of local refining.

They warned that if the refinery were undermined, the consequences would be severe for investor confidence and the wider economy.

“This movement is about economic salvation. If we allow them to kill the Dangote refinery, no investor will ever risk bringing money into this country again. We must protect this refinery as our own,” Maishanu said.

They called on the Federal Government to “crush every enemy of Nigeria’s economic progress,” urging swift policy and enforcement actions that would protect local refining capacity and punish those found to be undermining it.

In reaction, the PENGASSAN president Osifo said the protesters are “ignorant people” while Okugbawa added that “it’s their constitutional right to protest.”

PENGASSAN dissolves NGIC

The national body of PENGASSAN has reportedly dissolved its Nigerian Gas Infrastructure Company and Nigerian Gas Marketing Limited chapter for failing to shut off gas supply to the Dangote refinery during the crisis last week.

But the unit appealed the dissolution, faulting the union’s national secretariat over what it described as an unjust sanction tied to the failed attempt to shut down gas supply to the Dangote refinery.

In a formal petition to the national leadership of PENGASSAN obtained on Monday, the NGIC/NGML Congress said it received the dissolution directive “with shock and dampened spirit”, arguing that the affected executives made concerted efforts to execute the national strike order but were hindered by operational hazards and the heavy presence of security personnel at key gas facilities.

Giving a response to the dissolution, members of the union, in a petition signed by 163 members, called for the reinstatement of the officials.

The letter read in part, “We, the members of congress of NGIC/NGML PENGASSAN Branch, write to formally appeal the decision of the National PENGASSAN Secretariat to dissolve our branch leadership over perceived acts of sabotage relating to their inability to successfully execute the shutdown mandate of gas supply to Dangote refinery.

“We received the decision with shock and dampened spirit, given the effort the leadership and mobilised members of the branch put in to ensure the mandate was successfully carried out, despite several intimidation and assaults they faced all through the struggle, with emphasis on escalations at Oben Metering Station, where lives were at risk.”

“Our leaders did more than enough to carry out the directive of the nation despite their lives being at risk. The allegations of collusion and acceptance of monetary gifts from management are without evidence and false,” the congress stated.

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The NGIC workers maintained that their inability to completely enforce the shutdown stemmed from technical and safety constraints, including continuous gas injection from producers into the Escravos–Lagos Pipeline System and malfunctioning emergency shutdown valves at the Warri Gas Treatment Plant.

“NGIC assets and facilities are complex. The Warri Gas Treatment Plant, for instance, has critical safety concerns, including a faulty emergency shutdown valve that could endanger workers and surrounding communities if mishandled,” the letter explained.

The members also debunked reports suggesting a total shutdown of gas supply to the Dangote refinery.

According to the executives, at no time did they claim that the refinery had been completely shut down.

They clarified that only some valves along the line and the inlet from the OB3 pipeline through Oben were closed temporarily in an attempt to reduce pressure.

The officials added that the action was intended to cause a pressure drop that could affect supply to the refinery, but the move did not yield the expected result.

They further noted that the information relayed to the national president, suggesting that gas supply to Dangote had been cut off, was premature and based on a misunderstanding of the situation.

“It is also important to state that, at no point did the branch executives tell anyone that Dangote has been shut down 100 per cent; they only said they have shut down some valves along the line and the inlet from OB3 to the line through Oben, and they hope the pressure will drop after a few hours and Dangote will come down, all of which didn’t work out as they had expected. We note that whoever informed the national president that gas supply to the Dangote refinery was cut off had done so in haste to give good news and was impatient to wait for the outcome of the actions our comrades from NGIC took,” it added.

The congress urged PENGASSAN’s national secretariat, led by its president, to review its decision and clear the dissolved executives of the allegations of sabotage and bribery.

It also called for a fair hearing, stressing that punishing loyal members who risked their lives during the industrial action could demoralise others and weaken solidarity in future union struggles.

“We, the members of the congress, kindly note that our branch leadership did more than enough to carry out the directive of the National despite their lives being at risk. They even went ahead to do what management have labelled as “never been heard of in the history of NGIC/NGML, i.e., the shutdown of facilities and damage of assets (please note that NGIC/NGML PENGASSAN have never shut down any customer due to strike action prior to now).

“That they recorded some successes which were limited by the continuous injection of gas from producers to the ELPS and the heavy presence of military personnel, which usually outnumbered them,” the letter added.

Meanwhile, the engineers reportedly sacked by the Dangote refinery for joining PENGASSAN are still awaiting their redeployment letters.

Dangote thanks Tinubu

Dangote Petroleum Refinery commended Tinubu for his timely intervention in averting what it described as “the disruptive actions” of PENGASSAN against the company.

In a statement, the company said the President’s leadership, through his ministers and senior government officials, ensured the restoration of order and stability to the energy sector at a critical moment.

“Dangote Refinery is grateful to the President of the Federal Republic of Nigeria, Bola Tinubu, for his intervention, through his ministers and senior officials, which resulted in the abatement of the disruptive actions of PENGASSAN against the refinery,” the statement read.

According to the company, among the key government officials who worked “tirelessly” to restore normalcy were Nigeria’s security chiefs, led by the National Security Adviser, Nuhu Ribadu; the Director General of the Department of State Services, Mr Adeola Ajayi; and the Director General of the National Intelligence Agency, Mr Mohammed Mohammed.

The refinery also commended “other senior government officials who worked untiringly and determinedly into the wee hours of several nights to avert the declared disruption of Nigeria’s energy sector by anarchists and agents of darkness.”

These, it noted, included the Minister of Labour and Employment, Dr Mohammed Dingyadi; the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; the Minister of Budget and Economic Planning, Senator Abubakar Bagudu; and the Minister of State for Labour and Employment, Hon. Nkeiruka Onyejeocha, saying, “We remain very grateful to these officials for their patriotism and national service.”

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NNPC April crude supplies to Dangote cross 1bn barrels

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Crude oil supply from the Nigerian National Petroleum Company Limited’s trading arm surged in April 2026, with shipment records indicating that more than 1.03 million metric tonnes, equivalent to about 6.8 million barrels or over 1.08 billion litres, were delivered to the Dangote Oil and Gas Company Limited within the month.

An analysis of tanker vessel movements obtained by The PUNCH on Tuesday shows that the deliveries were executed through eight crude cargoes handled by NNPC Trading, reinforcing the state oil firm’s role as a major feedstock supplier to the 650,000 barrels-per-day Dangote refinery.

The shipments, sourced from key Nigerian crude streams including Anyala, Bonga, Odudu, Forcados, Qua Iboe, and Utapate, were routed through the refinery’s Single Point Mooring systems, SPM-C1 and SPM-C2.

The document shows that out of the eight cargoes, five have been fully discharged, while three others are still awaiting berthing or completion, indicating a steady pipeline of crude inflows into the refinery.

This development comes amid the refinery’s continued complaints of supply inadequacies, with a total requirement of 19 cargoes monthly, and a recent report that the country imported 55.39 million barrels in January and February 2026.

A breakdown of the deliveries showed that Sonangol Kalandula initiated the supply chain, delivering 123,000 metric tonnes of crude from Anyala. The vessel arrived on April 5, berthed on April 8, and sailed on April 9.

This was followed by Advantage Spring, which supplied 128,190 metric tonnes from Bonga, arriving on April 11 and completing discharge by April 13.

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Similarly, a vessel code-named Barbarosa delivered 125,000 metric tonnes from Odudu, while Sonangol Njinga Mban transported 129,089 metric tonnes from Bonga.

Another completed shipment, handled by Nordic Tellus, brought in 139,066 metric tonnes from Forcados, completing discharge on April 17.

However, three additional cargoes remain in progress. Advantage Sun, carrying 142,327 metric tonnes from Bonga, has arrived but is yet to berth. Also pending are Advantage Spring from Utapate with 120,189 metric tonnes, and Sonangol Kalandula from Qua Iboe with 126,471 metric tonnes.

In total, the NNPC Trading cargoes account for 1,033,332 metric tonnes of crude, underscoring what industry analysts describe as a “strong and sustained supply commitment” to the Dangote refinery.

Further findings show that, beyond crude deliveries, the Dangote refinery also received multiple shipments of refined products and blending components from international markets during the period.

Among them, Seaways Lonsdale delivered 37,400 metric tonnes of blendstock gasoline from Immingham, United Kingdom, handled by Vitol, between April 18 and 19.

Another vessel, Augenstern, supplied 37,125 metric tonnes of Premium Motor Spirit from Lavera, France, discharging between April 8 and 9.

From Norway, Emma Grace brought in 37,496 metric tonnes of PMS from Mongstad, while LVM Aaron delivered 36,323 metric tonnes from Lome, Togo.

Similarly, Egret discharged 35,498 metric tonnes of naphtha from Rotterdam between April 16 and 18, providing critical feedstock for gasoline blending.

A pending shipment, Mont Blanc I, carrying 36,877 metric tonnes of blendstock gasoline from Antwerp, Belgium, is yet to berth, while Aesop is expected to deliver 130,000 metric tonnes of residue catalytic oil from Singapore later in April.

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In addition to NNPC Trading volumes, other crude cargoes from international and domestic traders also supported refinery operations.

Notably, Yasa Hercules delivered 273,287 metric tonnes of crude from Corpus Christi, United States, while Front Orkla brought in 264,889 metric tonnes from Ingleside, US.

A major cargo, Navig8 Passion, supplied 496,330 metric tonnes of crude from Cameroon, highlighting regional supply integration.

Domestic contributions included Harmonic, which delivered nearly 993,240 barrels from Ugo Ocha, and Aura M, which supplied 1 million barrels from Escravos, alongside an additional 651,331 barrels of cargo from Anyala.

Operational data indicate that most vessels berthed within one to two days of arrival and departed shortly after discharge, suggesting improved efficiency at the refinery’s offshore terminals.

The Dangote refinery, located in Lekki, Lagos, is Africa’s largest single-train refinery, with a nameplate capacity of 650,000 barrels per day.

The facility is expected to significantly reduce Nigeria’s dependence on imported petroleum products by refining domestic crude and supplying petrol, diesel, aviation fuel, and other derivatives to the local market.

NNPC Limited, through its trading arm, has remained a central player in supplying crude to the refinery under evolving commercial arrangements, amid ongoing reforms in Nigeria’s downstream oil sector.

Earlier this month, Africa’s richest man and President of the Dangote Group, Aliko Dangote, revealed in a report by Bloomberg that the refinery received 10 cargoes of crude oil from the state-owned oil firm in March, compared to an average of about five cargoes monthly since late 2024.

Dangote said the shipments included six cargoes paid for in naira and four in dollars, under the crude supply arrangement between the refinery and the NNPC.

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“Nigeria doubled crude supply to Dangote Refinery in March as Africa’s top oil producer moved to shore up fuel availability after the Iran war disrupted Middle East shipments. Last month, they gave us six cargoes with payments in naira and four cargoes with payments in dollars,” he stated.

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CBN, NCC to combat SIM-related fraud

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The Central Bank of Nigeria and the Nigerian Communications Commission on Monday signed a memorandum of understanding to tackle SIM-related fraud and strengthen consumer protection across Nigeria’s digital ecosystem.

The agreement, signed at the CBN headquarters in Abuja, aims to improve coordination between the financial and telecommunications sectors, focusing on combating electronic fraud linked to mobile numbers, enhancing payment system integrity, and protecting consumers.

Speaking at the event, the CBN Governor, Olayemi Cardoso, said the pact was a “practical statement of national interest”, noting that the increasing reliance on digital channels for payments and financial services required stronger collaboration between both regulators.

He said, “This MoU is not merely an administrative document; it is a practical statement of national interest,” adding that the agreement would reinforce the stability and integrity of Nigeria’s payment system while supporting innovation and consumer safety.

Cardoso explained that the deal would strengthen coordination on approvals, technical standards, and innovation trials, including sandbox testing, to ensure that financial services remain reliable and scalable.

He noted that the partnership would also improve the response to rising electronic fraud, stressing that “addressing these threats requires joined-up action, shared intelligence, clearer escalation paths, stronger operational readiness across regulated entities, and consistent public education”.

A key component of the agreement is the rollout of the Telecom Identity Risk Management Portal, a data-sharing platform designed to detect fraud linked to recycled, swapped, or blacklisted phone numbers.

According to Cardoso, the platform would enable real-time verification of mobile number status across banks and fintech firms, providing an additional layer of protection for consumers and the financial system.

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He said strict compliance with data protection laws, including encryption and consent protocols, would guide the use of the platform.

Also speaking, the Executive Vice Chairman of the NCC, Aminu Maida, described the agreement as a major step in strengthening Nigeria’s digital economy.

He said, “The signing of this Memorandum of Understanding marks an important milestone in the regulatory stewardship of Nigeria’s digital economy,” adding that collaboration between both institutions was “not optional; it is imperative.”

Maida noted that the initiative would give financial institutions better visibility into the status of phone numbers used in transactions, including whether a line had been swapped, recycled, or flagged for fraudulent activity.

“This ensures that our financial services industry is better equipped with timely and relevant information to effectively combat e-fraud, particularly those perpetrated using phone numbers,” he said.

He added that the agreement would also improve consumer protection, assuring Nigerians that issues such as failed airtime recharges would be resolved more quickly under the new framework.

Earlier, the Director of Payment System Supervision at the CBN, Dr Rakiya Yusuf, said the partnership between both regulators had evolved over the years from separate oversight roles into a more integrated collaboration focused on securing Nigeria’s digital and financial systems.

She traced the relationship back to earlier efforts to align mobile payment regulations and telecom licensing frameworks, including the 2018 MoU that enabled telecom operators to participate in mobile money services through special purpose vehicles.

She also highlighted joint interventions such as the resolution of the USSD pricing dispute and the introduction of a N6.98 per session fee, as well as recent efforts to address failed transactions through a proposed 30-second refund framework.

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Under the new agreement, two joint committees will be established to drive implementation. These include the Joint Committee on Payment Systems and Consumer Protection and the Joint Committee on the telecom risk management platform.

The agreement is expected to deepen digital financial inclusion, reduce fraud risks, and strengthen trust in Nigeria’s rapidly expanding digital economy.

The PUNCH earlier reported that the CBN and the NCC unveiled a joint framework to tackle the growing problem of failed airtime and data transactions, which have left consumers frustrated after payments are processed but service delivery is not provided.

The 20-page draft, published on the CBN’s website, was developed by the CBN’s Consumer Protection & Financial Inclusion Department and the telecom regulator, with input from banks, mobile operators, payment providers, and other stakeholders.

The regulators seek to clarify accountability, standardise complaint-resolution timelines, and create a coordinated system for addressing grievances across the financial and telecommunications sectors.

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Electricity reforms: Rivers, Kano, 19 others delay takeover

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Twenty-one states, including Rivers and Kano, are yet to assume regulatory control of their electricity markets nearly three years after the enactment of the Electricity Act 2023, even as 15 states have already transitioned to independent market oversight.

The Nigerian Electricity Regulatory Commission disclosed that the states that have completed the transition have established their own electricity regulatory frameworks and are now responsible for market development, investment attraction, tariff oversight, and customer protection within their jurisdictions.

According to the commission, the shift follows the decentralisation provisions of the Electricity Act 2023, which empower subnational governments to regulate electricity generation, transmission and distribution within their territories after completing the necessary legal and administrative processes.

NERC noted that 15 states have so far completed the transition to state-level regulation. These include Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra and Bayelsa.

However, the remaining 21 states yet to assume regulatory control are Adamawa, Akwa Ibom, Bauchi, Benue, Borno, Cross River, Delta, Ebonyi, Gombe, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kwara, Osun, Rivers, Sokoto, Taraba, Yobe and Zamfara.

Industry analysts said the slow pace of transition in some states could delay the expected benefits of decentralisation, including improved power supply, localised tariff structures, and accelerated investments in embedded generation and mini-grid projects.

Under the new framework, once a state completes its transition, the state electricity regulator takes over licensing of intrastate electricity operations, enforcement of technical standards, tariff setting for local distribution, and protection of electricity consumers within the state.

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NERC, in turn, retains oversight only on interstate and national grid-related activities.

The commission emphasised that state regulators are expected to drive local electricity market growth by encouraging private sector participation, promoting renewable energy deployment, and ensuring service quality standards for distribution companies operating within their jurisdictions.

The timeline released by the commission shows that the earliest transitions occurred in October 2024, when Enugu and Ekiti states assumed regulatory authority, followed by Ondo shortly after. The pace accelerated in 2025, with several states, including Oyo, Edo, Lagos and Ogun, completing their transitions. The most recent additions include Nasarawa, Anambra and Bayelsa between January and February 2026.

It was observed, however, that some of the 15 states have not set up their regulatory commissions.

Power sector stakeholders argue that states yet to transition risk missing opportunities to attract investments in off-grid electrification projects, particularly in underserved rural communities.

They also note that state-level regulation could help address longstanding distribution challenges by enabling more flexible tariff structures, targeted subsidies, and enforcement mechanisms tailored to local conditions.

With less than half of the states having completed the transition, many argued that the effectiveness of the Electricity Act reforms will largely depend on how quickly the remaining states establish their regulatory institutions and operational frameworks.

Apparently overwhelmed by the country’s power woes, the Federal Government recently pushed the challenge to the 36 states, asking them to take over power generation, transmission, and distribution.

The Federal Government said this was the only solution to the power crisis in the country.

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The Minister of Power, Adebayo Adelabu, said at an energy summit in Lagos that the Electricity Act’s impact includes decentralisation and liberalisation.

“In a country as big as Nigeria, with almost a million square kilometres of landmass, over 200 million people, millions of businesses, thousands of institutions (health and educational institutions), 36 states plus the Federal Capital Territory, and 774 local governments—centralisation cannot work for us. The responsibility of providing stable electricity can never be left in the hands of the Federal Government.

“At the centre, you cannot, from Abuja, guarantee stable power across the country. So, this is one thing that the Act has achieved—decentralisation. That has now allowed all the states or the subnationals to play in all segments of the power sector value chain—generation, transmission, distribution, and even service industries supporting the power sector,” he stated.

He called on the remaining 21 states to set up their electricity market.

“I believe other states will follow suit in operationalising the autonomy granted, with full collaboration of the national regulator. We are working actively with these states to ensure strong alignment between the wholesale market and the retail market.

“In this regard, we believe the active involvement of the state governments, particularly in the off-grid segment, is critical, given the series of roundtable engagements held with governors by the Rural Electrification Agency, as well as ongoing efforts to closely track the distribution companies’ performances within their respective jurisdictions,” Adelabu emphasised.

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