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Meter costs spark DisCos–FG showdown on tariffs

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The Bureau of Public Enterprises, an agency of the Federal Government, has said that electricity consumers will pay for the ongoing free meter installation through their tariffs.

The disclosure comes amid a row with electricity distribution companies over who is responsible for covering the cost of the prepaid meters being rolled out under World Bank–funded programmes.

The PUNCH reports that the Federal Government and electricity distribution companies have been at loggerheads over who bears the cost of prepaid meters being rolled out by the Federal Government.

The disagreement erupted after the Minister of Power, Adebayo Adelabu, directed that prepaid meters procured under the World Bank–funded Distribution Sector Recovery Programme must be installed for electricity consumers free of charge, warning that any official or installer found collecting money would be prosecuted.

However, electricity distribution companies expressed doubt over the directive, insisting that although customers may not pay cash upfront, the meters would still be paid for by the DisCos over a period of 10 years, raising concerns about cost recovery, installation expenses, and the financial implications for operators.

Reacting to the controversy, the Director-General of the Bureau of Public Enterprises, Ayo Gbeleyi, dismissed claims that the DisCos were being asked to pay for the meters over a 10-year period, regretting that the Federal Government’s free metering programme was receiving pushback from the DisCos.

Speaking in Lagos at the N501bn bond issuance signing ceremony to settle power sector debt, Gbeleyi expressed concern that the DisCos were giving a wrong narrative as far as the free metering initiative was concerned.

Addressing claims by DisCos that they were expected to repay the cost of the meters over a decade, the BPE boss said such assertions were inaccurate and misleading. He noted that meter costs are embedded in tariffs over time, just like transformers, feeders, and other investments of the DisCos.

“We’ve had pushback where some have said, ‘No, the DisCos are paying for the meters over 10 years.’ The truth is, every component of investment that goes into the DisCos gets recouped through the tariff structure. So, whether it is a feeder pillar, whether it is a transformer, or whether it is a meter, we as consumers will ultimately pay for those pieces of equipment through the tariff design,” he said.

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Gbeleyi’s clarification shows that meters are not given to customers at no cost, as they would pay for them through their tariffs. He added that the DisCos often failed to mention the concessional nature of the Federal Government’s intervention, which he said was to be repaid over 20 years.

“However, what they are not telling you is that the Federal Government’s major intervention is indeed one of the best loan transactions today extended to the power sector. It is a 20-year loan facility. It comes with a five-year principal moratorium and a two-year interest moratorium to the DisCos. We have never seen any capital lending to that sector of that magnitude in the history of the power sector in Nigeria,” Gbeleyi said.

He insisted that suggestions that DisCos were paying for the meters were unfounded. “So, for anyone to then suggest that they are paying over 10 years, or that the DisCos are paying for it, that’s absolutely not the case. So we are taking this opportunity to provide that clarity to Nigerians,” he added.

According to him, the Federal Government had embarked on the Distribution Sector Recovery Programme, which is a $500m loan intervention from the World Bank to assist distribution companies to strengthen their infrastructure and improve governance, as well as enhance liquidity.

“In this regard, a total of about 3.22 million meters are being made available to the DisCos,” Gbeleyi said.

Clarifying the status of the metering initiative, he said that the meters were being given to consumers free of charge.

“At this juncture, permit me to also elaborate and clarify that, last week, together with the Minister of Power, we were at the Apapa Port to inspect the recent batch of meters that are coming to the country. In total, out of the initial contract of about 1,437,500 units of meters, we have received over 600,000 meters. And we have also installed close to 75,000 meters, free of charge indeed, to consumers.”

Gbeleyi stressed that electricity consumers were not required to pay for the meters, noting that the intervention was targeted at addressing Nigeria’s wide metering gap.

“Let me reiterate that customers are not meant to pay for these meters. The meters are meant to be given, especially to the unmetered customers. We have about 5.9 million unmetered customers in the country today,” he said.

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According to him, the World Bank–supported programme would only partially bridge the gap, with another intervention already in place to complement it.

“In order to bridge that gap, there is a programme to implement 3.22 million meters. There is another programme that is being led by the Office of the Special Adviser to the President on Energy under the Presidential Metering Initiative, which will also deliver another batch of 2.61 million meters to the DisCos,” Gbeleyi stated.

Earlier, power distribution companies had raised concerns over the minister’s directive, describing it as politically motivated and lacking proper stakeholder consultation.

Operators, who spoke anonymously due to the sensitive nature of the matter, said Adelabu’s announcement failed to consider the role of meter installers and manufacturers, as well as the question of who would bear installation costs.

Last Thursday, the Federal Government banned electricity distribution companies and installers from collecting any form of payment for meters, with Adelabu issuing the warning during an on-site inspection of newly imported smart meters at APM Terminals, Apapa, Lagos.

The minister said the meters were procured under the World Bank–funded Distribution Sector Recovery Programme and must be installed for consumers free of charge, regardless of their tariff band.

“I want to mention that it is unprecedented that these meters are to be installed and distributed to consumers free of charge—free of charge! Nobody should collect money from any consumer. It is an illegality. It is an offence for the officials of distribution companies across Nigeria to request a dime before installation; even the indirect installers cannot ask consumers for a dime. It has to be installed free of charge so that billings and collections will improve for the sector,” Adelabu said.

Despite this, DisCo operators maintained that the cost burden would still fall on them over time. They said the meters tagged as free by the Federal Government would still be paid for by the DisCos within a period of 10 years, adding that it was unclear why DisCos were expected to bear installation costs.

“Those meters you see, someone has to pay for them, and the government expects the DisCos to bear the cost of the so-called free meters. They said the DisCos can pay it over 10 years,” an official with a distribution company stated, but Gbeleyi described this as untrue.

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The official warned that such costs must be recognised in tariff calculations. “When you ask the DisCos to pay for any capital expenditure, we call it allowable capex. You have to allow it when computing their tariffs; otherwise, it makes their balance sheets toxic,” the source said.

Another operator questioned the role of installers in the arrangement. “We need to know that meter installers are not staff of the DisCos. They are already asking who will pay them if the consumers do not pay. Did the minister consider all those? You said the people should not pay the installers; who should pay them? We, the DisCos, are not the ones installing meters,” the operator said.

The operators described Adelabu’s comments as populist. “The statement was just a populist statement from a politician. We are not sure if the President sent him that message. He said everything should be free; where is the position of cost recovery? Anything you do in the power sector, you have to first consider who bears the cost. Somebody has to bear the cost to avoid debt piling up,” one source stated.

They added that wider consultation was needed to avoid misleading the public. “The government ought to sit with the DisCos and the meter manufacturers to seek advice if the plan is to make sure the people don’t bear any cost, and we will come up with our various contributions.

“But instead of doing that, the government would go and make unrealistic promises to the public. For instance, the meters are coming in batches, but you have made the masses believe that there are enough meters for everyone. That’s not the reality,” another source said.

The standoff testifies to the persistent tensions between regulators and operators in the power sector, even as the Federal Government insists that the metering intervention is designed to protect consumers and improve billing efficiency.

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Tax revenue hits N27tn after 113% surge – Report

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Nigeria’s tax collections have surged by 113 per cent in less than three years, rising from N12.3tn in 2023 to N27.1tn as of July 2026, the Nigeria Revenue Service has said.

The revenue authority attributed the sharp increase to the digitisation of the tax system, the enactment of four new tax reform laws, the transformation of the revenue service and an executive order aimed at closing loopholes in the tax system.

The NRS, in an internal report on the state of the Nigerian economy obtained by The PUNCH on Sunday, insisted that the country was moving from a period of severe macroeconomic distress towards a more stable and resilient economy following the implementation of a series of difficult reforms by the President Bola Tinubu administration.

“Tax collections more than doubled from N12.3tn in 2023 to N27.1tn as of July 2026 with the “digitisation of tax systems, four new tax reform laws, the transformation of the revenue service and an executive order that closed loopholes in the system.

“The Nigerian economy has moved decisively from acute macroeconomic distress toward a more stable and increasingly resilient footing,” the revenue service said.

The NRS attributed the development to what it described as Tinubu’s economic management acumen and determination to implement reforms under his administration’s Renewed Hope Agenda.

According to the report, the administration inherited four major economic distortions which had continued to undermine government revenue and economic growth.

It identified the challenges as “a fiscally unsustainable fuel subsidy regime, an opaque forex system that discouraged investment, a non-performing oil sector, and a tax base ‘far below its potential’.”

The revenue authority said the initial impact of the reforms created significant economic difficulties but maintained that the country’s major economic indicators had subsequently begun to improve.

It cited falling inflation, a turnaround in the balance of payments, increased crude oil production, the emergence of Nigeria as a net exporter of petroleum products and the more than doubling of tax collections as evidence of the recovery.

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The report also highlighted an increase in the minimum wage, saying it had doubled between 2023 and 2026.

It further cited estimates by the United Nations Children’s Fund showing that the number of out-of-school children had declined from 20 million to 18.3 million following government policies and incentives.

The NRS said the government’s naira-for-crude arrangement with the Dangote Petroleum Refinery and other domestic refineries had contributed to a major shift in Nigeria’s petroleum trade position.

According to the report, the arrangement had helped Nigeria move from being a net importer of petroleum products to becoming a net exporter after decades of dependence on imports.

It noted that Ghana had recently decided to pursue a similar policy in its petroleum sector. The report also said crude oil production had increased from about 1.2 million-1.3 million barrels per day in 2023 to 1.73 million barrels per day by July 2026.

It said the latest output was equivalent to 104 per cent of Nigeria’s OPEC quota. The increase in production is significant for government revenue because crude oil remains the country’s largest source of foreign exchange and a major contributor to public finances.

The NRS also pointed to developments in the capital market as another indication of improving economic confidence. It said the market capitalisation of the Nigerian Exchange had risen from N30.36tn in 2023 to N161tn in 2026, describing the increase as a source of wealth creation for millions of Nigerians who invest in the stock market.

The report attributed the market rally partly to improved macroeconomic credibility, the recapitalisation of banks and a growing pool of domestic institutional investment.

Nigeria’s external reserves also rose sharply during the period under review. According to the NRS report, reserves increased from an unrestricted $3.99bn in 2023 to $51.9bn as of July 2026, which it described as a 17-year high.

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The country’s balance of payments also moved from a $3.34bn deficit to a $2.38bn surplus in the first quarter of 2026, the report stated. Nigeria’s trade position similarly recorded a significant improvement, moving from a marginal surplus of N44.7bn to N7.55tn in the first quarter of 2026.

The composition of exports also showed some changes, with exports of other oil products, excluding crude, rising by 51 per cent year-on-year to N6.78tn during the first quarter.

The revenue service said improved investor confidence was also reflected in capital importation. Annual capital importation rose from $3.9bn in 2023 to $23.22bn in 2025, while inflows reached $10.37bn in the first quarter of 2026 alone.

The report said foreign portfolio investment had been particularly strong, while foreign direct investment had also improved. The increase in capital inflows, according to the NRS, reflected stronger investor confidence as economic reforms reshaped the operating environment.

The revenue service further highlighted the expansion of the compressed natural gas programme as part of the government’s response to the removal of the petrol subsidy.

According to the report, Nigeria had no large-scale CNG programme three years ago and depended heavily on imported petrol and diesel. By 2026, however, more than 100,000 vehicles had reportedly been converted to CNG, with more than $2bn in investment mobilised and over 10,000 jobs created.

The NRS estimated that CNG could reduce running costs by between 40 and 60 per cent compared with petrol. It said some commercial drivers had seen their monthly fuel bills fall from about N50,000 to N18,000 after converting their vehicles.

On agriculture and food security, it recalled that the administration declared a state of emergency on food security in July 2023 and subsequently introduced measures including the release of strategic grain reserves, the establishment of a N100bn National Agricultural Development Fund, fertiliser distribution and an agricultural mechanisation programme.

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Federal agricultural allocation rose from N228.4bn in 2023 to N826.5bn in the 2025 budget, according to the report. The NRS said food prices had fallen by about 50 per cent by March 2026, citing the Ministry of Agriculture.

However, it acknowledged that agriculture would require several planting seasons before increased government support could translate fully into higher production.

On public debt, the NRS acknowledged that Nigeria’s total debt stock had increased substantially, from N87.4tn in 2023 to N159.28tn in late 2025. However, it argued that the more important measure was the country’s debt relative to the size of its economy.

According to the report, the debt-to-GDP ratio declined from 38 per cent in 2023 to 35.5 per cent in 2025 and 32.3 per cent in 2026. The revenue service described the decline as the first sustained reduction in the ratio in more than a decade.

It also said debt servicing as a proportion of government revenue had declined from 68 per cent to an International Monetary Fund-projected 53 per cent.

The NRS said the combination of higher tax collections, increased oil production, stronger capital inflows, rising reserves and improved trade and balance of payments positions pointed to an economy that was gradually emerging from the severe pressures that followed the government’s early reforms.

The report nevertheless acknowledged that the gains came after what it described as “painful” adjustments and stressed that continued implementation of the reforms would be required to consolidate the recovery.

Source: punchng.com

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NLC demands N500k minimum wage, says current N70k minimum wage is no longer sustainable

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The Nigeria Labour Congress (NLC) says it will soon begin negotiations with the Federal Government for a new national minimum wage, insisting that the current N70,000 wage is no longer sustainable.

Speaking at the Rights of Workers Summit in Birnin Kebbi on Thursday, NLC President Joe Ajaero, represented by Deputy President Audu Titus Amba, said workers should prepare for fresh negotiations.

He argued that the current minimum wage could no longer meet workers’ basic needs amid rising inflation and the increasing cost of living.

“Anything less than N500,000 cannot cater for workers. The current minimum wage is due for review, and we will soon begin negotiations with the government,” he said.

Also speaking, Trade Union Congress (TUC) President Festus Osifo, represented by Secretary-General Nuhu Toro, said worsening economic conditions had eroded workers’ purchasing power.

He cited rising food prices, transport fares, rent and inflation as factors making the current wage inadequate.

President Tinubu signed the current national minimum wage bill into law on July 29, 2024, raising it from N30,000 to N70,000 per month. The legislation followed negotiations with organized labor and included a provision to review the wage structure every three years.

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Ondo artisans beg FG for inclusion in empowerment programmes

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Artisans and skilled workers in Ondo State have appealed to the Federal Government to include them in various empowerment programmes under President Bola Tinubu’s Renewed Hope Agenda.

The artisans, under the aegis of the Artisan Defender and Empowerment Foundation, said over 25,000 members of the group had been neglected despite their support for the re-election of the President.

This was contained in a statement issued on Friday by the Chairman and General Secretary of the association, Engr. Ogundipe James and Adebayo Olugbenga, respectively.

According to the statement, the group was founded and registered with the Federal Government to promote the interests of Niger Delta artisans and skilled workers, adding that its members needed government support through empowerment initiatives.

The statement read, “It was evident, the neglect of the welfare and empowerment of over 25,000 artisans that this organisation controls, for which we are advocating better welfare, skills and vocational training, empowerment, workshops and recognition of political strength and weight the coalition commands in the voting structure.

“The deteriorating situation of artisan welfare, particularly in Ondo State, is why the body is seeking immediate attention, mostly empowerment and skills upgrading from the primary concerned government agencies—the Federal Ministry of Trade and Investment, Directorate of the Office of Humanitarian Affairs and Poverty Reduction, Small and Medium Enterprises Development Agency of Nigeria, Presidential Amnesty Programme, among others.

“The neglect of this very important organisation, which plays a vital role in employment and the growth of the national economy, will cause disagreement and affect political support that comes from this coalition group.”

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The statement urged the concerned Federal Government agencies to consider the proposals earlier submitted by the group to enhance the support of its members for the President’s administration.

The group stated, “We call on the agencies mentioned above, demanding immediate attention to the proposals that have earlier been sent to this parastatal.

“This is a public warning and general awareness that failure to listen to Niger Delta Artisan Forum’s demands will lead to a national protest and have huge political support consequences for the continuation of the Renewed Hope Agenda of President Bola Ahmed Tinubu come the 2027 election, if attention is not immediately given to the demands.”

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