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The president and his power sector burdens explicitly explained

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Nigeria’s electricity sector remains one of the most critical yet troubled components of its economy. Despite decades of reforms, including the landmark Electricity Act 2023, the country continues to experience erratic power supply, infrastructural decay, and financial instability. This article examines the core problems in Nigeria’s power sector and proposes practical solutions, supported by relevant legal frameworks, vis-à-vis the solemn promise made to the people of Nigeria by President Bola Ahmed Tinubu in the course of his political campaigns. Power generation is the main issue in regard to the socio-economic development of any nation. In Nigeria, however, successive governments have deployed it for political gains, knowing the importance that Nigerians attach to it. Thus, in 2015 when it was canvassing for votes from the electorate, the All Progressive Congress stated as follows:

“INFRASTRUCTURE: APC WILL:

Generate, transmit and distribute from current 5,000 – 6,000 MW to at least 20,000 MV of electricity within four years and increasing to 50,000 MW with a view of achieving 24/7 uninterrupted power supply within ten years, whilst simultaneously ensuring development of sustainable/renewable energy.”

Manifesto of the All Progressive Congress (APC), submitted to the people of Nigeria in the wake of the 2015 general elections.

While seeking the mandate of the people to be voted into office, President Tinubu declared that he will surely and certainly fix the power sector issues which will guaranty stable, functional and efficient electricity supply. During the 2023 presidential campaign in particular, the President made a notable promise regarding the Nigerian power sector, stating that if he fails to provide stable electricity within his first four years, Nigerians should not vote for him for a second term. The statement as monitored from his campaign video, states thus: “If I don’t keep the promise (of providing electricity) and I come for a second time, don’t vote for me,” adding that he would provide “24-hour electricity” and end estimated billing. Eleven years after the APC manifesto and three years after his swearing in, the electricity situation has not fared any better, if not worse. For instance, I have never experienced electricity supply in my hometown since I was born, as we are not connected to the national grid at all. Several towns and villages are like my hometown, locked out of any form of development at all, yet we are classified as oil producing. The impression that our leaders in power have conveyed to us is that it is practically impossible to have stable and permanent power supply; that we don’t have the resources to build the needed energy plants that will meet the needs of all Nigerians; and that we must accept generators as second nature if we must function and survive as a people. Churches, banks, schools, small businesses, factories, government ministries and departments, police stations, the courts and even PHCN itself, all depend on generators. Instead of fulfilling his promise, the President has exited the epileptic national grid to the suffering masses of Nigerians and this has trickled down as the Nigerian Revenue Service has recently announced its exit too. In reality, the President may have forgotten that he made any promise to Nigerians, since Aso Villa is now powered with modern solar technology.

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Overview of Nigeria’s Power Sector Crisis

Nigeria’s power sector has long been characterised by inadequate generation, weak transmission networks, and inefficient distribution systems. Although installed capacity exceeds 13,000 MW, actual generation is often far lower due to systemic inefficiencies and constraints. Frequent national grid collapses, blackouts, and dependence on private generators highlight the depth of the crisis. It is very difficult to know what to believe between bogus figures being bandied by the government and the institutions established to manage the power sector.

The Major Problems in the Power Sector

a. Inadequate Generation Capacity

Nigeria generates far less electricity than required for its population of over 200 million people. Structural issues such as gas supply shortages and overreliance on fossil fuels limit output. The system equipment is obsolete and no major investment is imminent to end the rot.

b. Poor Transmission Infrastructure

The transmission network, largely controlled by the government, is outdated and unable to efficiently evacuate generated power. Aging infrastructure contributes to frequent grid failures. What is required is a total overhaul, not selective attention meant to garner acceptability.

c. Inefficient Distribution System

Distribution companies (DisCos) struggle with:

High technical and commercial losses, mostly from government agencies.

Poor metering systems, fueled by corruption and bureaucracy.

Inability to recover costs, as the route for such endeavour are very cumbersome and costly.

This results in unreliable service delivery and revenue shortfalls. While the consumers are shouting blue murder against the DISCOs, the latter is always complaining of frustration by the system.

d. Financial and Liquidity Crisis

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It has been alleged that the sector is heavily indebted, with trillions of naira owed to generation companies. This discourages investment and limits expansion. We were, however, informed lately that the President has ordered the payment of all legacy debts connected with the power sector. It is therefore surprising that Nigeria is currently experiencing the worst in electricity supply after the financial liquidity issue has been addressed.

e. Regulatory and Policy Challenges

Prior to recent reforms, the legal framework—primarily the Electric Power Sector Reform Act 2005—was insufficient to address evolving sector challenges, including decentralisation and renewable integration. This led to several suggestions for an amendment of the said Act which was indeed accomplished in 2023. But that has not changed anything.

f. Vandalism and Energy Theft

Pipeline vandalism, electricity theft, and sabotage of infrastructure further weaken the system and increase operational costs.

3. Legal Framework Governing the Power Sector

a. Electricity Act 2023

The Electricity Act 2023 is the most comprehensive reform in Nigeria’s electricity sector. It repealed the 2005 Act, decentralised the sector by empowering states to regulate electricity markets, encouraged private sector participation and promoted renewable energy development. These reforms have however remained opaque and elusive as Nigerians still grapple with generators all over the country.

b. Nigerian Electricity Regulatory Commission (NERC)

Established under earlier reforms and strengthened by the new Act, Nigerian Electricity Regulatory Commission oversees licensing, tariff regulation, and consumer protection. It is considered to be a weak institution, displaying inability to muster the needed willpower to enforce the law.

c. National Integrated Electricity Policy (NIEP)

This policy provides strategic direction for long-term sector planning and energy mix diversification.

4. Solutions to Nigeria’s Power Sector Crisis

a. Decentralization and State-Level Electricity Markets

The Electricity Act 2023 allows states to generate and distribute electricity independently. This can reduce pressure on the national grid, encourage localised solutions and improve efficiency through competition. The President should develop a road map for the power sector as a matter of priority and this should be done in active collaboration with the states. The convergency of interests should not be visible only on political matters but should be extended to and include developmental projects.

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b. Investment in Infrastructure

Significant investment is required in transmission networks, smart grid technologies and renewable energy systems. Public-private partnerships (PPPs) should be strengthened under the legal framework. Like the reforms implemented in the telecommunications sector, government should be concerned with effective regulation.

c. Cost-Reflective Tariffs

Implementing tariffs that reflect actual costs—while protecting vulnerable consumers—can improve liquidity and attract investors.

d. Promotion of Renewable Energy

The law supports renewable energy integration, including solar mini-grids for rural electrification. This reduces dependence on fossil fuels and improves energy access.

e. Strengthening Regulation and Governance

Enhancing the capacity of Nigerian Electricity Regulatory Commission ensures transparent licensing regime, holistic enforcement of market rules and protection of consumer rights.

f. Addressing Sector Debt

Government intervention—such as debt refinancing and subsidy reforms—can stabilise the sector financially and restore investor confidence.

g. Tackling Vandalism and Energy Theft

Stronger enforcement of electricity offences under the Electricity Act 2023 is essential to reduce losses and protect infrastructure.

5. Conclusion

Nigeria’s power sector crisis is deeply rooted in structural, financial, and regulatory challenges. However, the introduction of the Electricity Act 2023 marks a turning point by providing a modern legal framework for reform. If effectively implemented—alongside investment, decentralisation, and improved governance—the Act offers a realistic pathway to achieving stable and sustainable electricity supply in Nigeria. For now, we hold the President to the solemn promise he voluntarily made to the people of Nigeria that he is willing and able to fulfil that undertaking, failing which he should expect the enforcement of the consequence, which is that Nigerians should not vote for him for a second term in office if the darkness persists. With the resources said to have accrued from the trumpeted economic reforms, there is no reason that Nigerians should keep enduring high tariffs for darkness and estimated billings drain their resources painfully. Abia State has recorded stable power supply through effective partnership with the private sector, so electricity supply is not rocket science and unless the issue is resolved by the President in line with his solemn promise, it may be a burden he will carry for a long time and into the coming election.

Ebun-Olu Adegboruwa, SAN

tribuneonline.ng

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NAFDAC destroys N8bn products, targets sachet alcohol in N’Central

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The National Agency for Food and Drug Administration and Control (NAFDAC) has confiscated and destroyed unwholesome, banned, fake and adulterated products worth more than N8 billion in the North-Central states.

Speaking during the destruction ceremony on Thursday in Lafia, the Nasarawa State capital, the Director-General of NAFDAC, Prof. Mojisola Adeyeye, said the products were seized from manufacturing outfits, sales outlets, markets and motor parks across the zone.

The DG, who was represented by a Deputy Director of NAFDAC in the zone, Joseph Edor, said most of the confiscated products were banned alcoholic beverages in small volumes of less than 200 ml (20 cl).

According to her, NAFDAC was established by Decree No. 19 of 1993, as amended, with the mandate to protect and promote public health by ensuring that only quality, efficacious and regulated products are manufactured, imported, distributed and sold in Nigeria.

She explained that the agency banned alcoholic beverages in sachets and glass bottles of less than 200ml due to their availability, affordability and portability, which have made them easily abused by youths and underage schoolchildren.

“Research has shown that early exposure to alcohol affects the brain and other vital organs such as the liver and kidneys.

“It stymies the brain, resulting in mental retardation, brain damage, poor performance of pupils in school, low productivity and several types of illnesses,” she said.

The DG said the ban and subsequent raids were based on these abuses, addiction and adverse health effects, while other seized items included expired, fake and unwholesome food, drugs and cosmetics.

“It is in the course of carrying out these activities that this heap of unwholesome, banned, fake and adulterated products worth about eight billion naira was confiscated from manufacturing outfits, sales outlets, markets and motor parks.

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“The bulk of the products in that pile are predominantly banned alcoholic beverages in low volumes of less than 200ml (20cl),” she emphasised.

The Director-General further commended other law enforcement agencies, sister agencies and stakeholders for their continuous collaboration, especially in intelligence sharing and security cover during operations.

Also speaking at the event, the Nasarawa State Coordinator of NAFDAC, Dr Gyani Stephen, explained that the exercise was not targeted at hurting people but was intended to save lives.

He advised those in the habit of selling fake and banned products to desist or be ready to face the full wrath of the law, warning that the agency would come after them if they did not change their ways.

In his goodwill message, the Nasarawa State Commander of the National Drug Law Enforcement Agency, Daniel Saidu, represented by Yakubu Awoh, commended NAFDAC for saving lives through the regular seizure and destruction of expired and fake drugs.

He explained that if these dangerous products were allowed into the markets, they could have destroyed millions of lives and affected the mental health of many others.

Source: punchng.com

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Seven modular refineries to begin operations in 2027, read details

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Nigeria’s modular refining sector is expected to expand next year, with seven new refineries projected to commence operations with a combined capacity of 83,000 barrels per day, according to Argus Media’s George Maher-Bonnett.

Maher-Bonnett disclosed this in Lagos on Wednesday during a presentation at the OTL Africa Downstream conference, where he highlighted the changing dynamics of Nigeria’s petroleum products market amid rising local refining capacity and declining fuel demand.

In his presentation, titled ‘African Energy Outlook’, Maher-Bonnett said four modular refineries operated in Nigeria in September, with a combined capacity of 32,000 barrels per day.

“Four modular refineries operating in September, total 32,000 b/d capacity,” he said.

He added, “Seven new modular refineries to start next year“ with a total of 83,000 barrels per capacity.

The projected additions would represent more than two and a half times the combined capacity of the four modular refineries operating in September, potentially increasing the contribution of smaller refining facilities to Nigeria’s domestic petroleum products supply.

However, the presentation did not identify the seven proposed refineries, their owners or locations, or provide individual capacity figures and commissioning schedules.

Maher-Bonnett also highlighted the growing role of the Dangote Petroleum Refinery in improving Nigeria’s self-sufficiency in petroleum products, despite a decline in fuel demand during the year.

“Nigerian fuels demand is down this year,” the presentation stated, attributing the development to “higher flat prices.”

He added self-sufficiency is improving with Dangote ramp-up, projecting that modular refineries would play a growing role.

The presentation linked the decline in demand to higher prices and noted that the only government intervention during the period covered was an NNPC price reduction.

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“No government interventions, besides NNPC price cut this month,” it stated.

The expected expansion of modular refining capacity comes as Nigeria’s petroleum products market adjusts to increased domestic production and changing international trade flows.

Maher-Bonnett said the Dangote refinery is operating at a high rate, with steady petrol output, reducing the attractiveness of importing some petroleum products from Europe into West Africa.

“Dangote’s 700,000 bpd Lekki refinery is running hard, gasoline output is steady,” the presentation stated.

It also highlighted Ghana’s growing refining capacity, noting that the 45,000-barrel-per-day Tema refinery is ramping up production and improving the country’s self-sufficiency.

According to the presentation, the economics of shipping petroleum products from Europe to West Africa and from Europe to the United States has weakened, with freight costs further affecting the competitiveness of the routes.

Source: punchng.com

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Falana tasks Senate on recovery of $123bn, N66bn oil funds, read details

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Human rights lawyer, Femi Falana, has asked the National Assembly to compel the recovery of $123.17bn in alleged outstanding oil royalties, taxes and dividends, alongside N66.4bn, from the Nigerian National Petroleum Company Limited and other oil and gas companies.

In a letter dated 28 October, 2026, and titled ‘Request to Recover Dividends, Taxes and Royalties Worth $123.17bn and N66.4bn from NNPC and Other Companies and Remit Same to the Federation Account’, Falana urged the National Assembly to ensure that the alleged outstanding revenues were recovered and remitted to the federation account.

He warned that he would institute legal proceedings at the Federal High Court if the authorities failed to initiate measures to recover the funds within 14 days of receiving the letter.

In an acknowledged copy of the letter made available to The PUNCH on Thursday, the senior advocate said the outstanding revenues covered several categories, including $62bn in unpaid oil royalties, $23.1bn in alleged unremitted dividends from Nigeria LNG Limited, $6.071bn in outstanding industry revenues, and claims relating to stolen crude oil and refinery rehabilitation contracts.

The letter also cited a Supreme Court consent judgment delivered on 20 October, 2018, which it said directed the Federal Government to collect outstanding royalties accrued over 18 years under the Deep Offshore and Inland Basin Production Sharing Contracts Act.

According to Falana, the governments of Akwa Ibom, Bayelsa and Rivers states had approached the Supreme Court to compel the Federal Government to enforce the law, which provided for an upward review of royalties when international crude oil prices exceeded $20 per barrel.

He said a committee constituted by the Office of the Attorney-General of the Federation subsequently determined that $62bn in royalties had not been collected from international oil companies.

Falana added that Akwa Ibom and Rivers states later obtained a Federal High Court judgment for a combined $3.3bn, while Bayelsa State secured a separate judgment for $951m over their alleged entitlements from the outstanding royalties.

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He said the Federal Government had yet to comply with the judgments.

The lawyer also called for the recovery of $29bn linked to alleged crude oil theft and undeclared exports, citing investigations by the Nigerian Maritime Administration and Safety Agency and the House of Representatives.

He said lawyers engaged by NIMASA discovered that about 60.2 million barrels of crude oil, valued at $12.7bn, allegedly stolen from Nigeria, were discharged at the Port of Philadelphia in the United States between 2011 and 2014.

According to the letter, the lawyers submitted their findings to the Office of the Attorney-General after which they filed nine civil cases at the Federal High Court in Abuja and Lagos to recover the value of the alleged stolen crude oil and liquefied gas.

Falana further cited a 2016 House of Representatives ad hoc committee investigation, which he said found that $17bn worth of crude oil and liquefied natural gas had been exported from Nigeria without proper records.

He said the committee found that the crude oil was discharged at the ports of Houston and Lake Charles in the United States.

He urged the National Assembly to direct the Economic and Financial Crimes Commission to pursue the recovery of the funds from the companies allegedly involved.

On the NLNG dividends, Falana alleged that NNPC had failed to remit $23.1bn due to the Federal Government from its 49 per cent shareholding in NLNG.

He explained that NLNG, established in 1989, had paid more than $47bn in dividends to its shareholders over 26 years, with the Federal Government’s share paid through NNPC.

The other shareholders listed in the letter are Shell, with 25.6 per cent; TotalEnergies, 15 per cent; and Eni International, 10.4 per cent.

Falana argued that the dividends received by NNPC on behalf of the Federal Government should have been transferred to the Federation Account in accordance with Section 162 of the 1999 Constitution, as amended.

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He added that resolutions of the Senate and the House of Representatives calling for the remittance of the funds had allegedly been ignored.

The senior advocate also called for the recovery of $6.071bn and N66.4bn in outstanding revenues owed by oil and gas companies, citing the Nigerian Extractive Industries Transparency Initiative’s 2022/2023 Independent Oil and Gas Industry Report.

According to him, NEITI disclosed on 27 September, 2024, that the outstanding collectible revenues due to the Federal Government as of June 2024 stood at the stated amounts.

He said copies of the report were forwarded to both chambers of the National Assembly in November 2024 in line with the provisions of the NEITI Act.

Falana urged lawmakers to support NEITI in recovering the outstanding revenues without further delay.

The letter also questioned the outcome of the rehabilitation of the Port Harcourt, Warri and Kaduna refineries, for which the Federal Executive Council approved contracts totalling about $2.98bn in 2021.

It said the government approved $1.5bn for the rehabilitation of the Port Harcourt refineries in April 2021 and another $1.48bn for the Warri and Kaduna refineries in August of the same year.

Falana argued that NNPC announced in December 2024 that the Port Harcourt and Warri refineries had been substantially completed, while work on the Kaduna refinery was almost finished.

However, he cited NNPC’s subsequent announcement that the Warri refinery ceased operations on 25 January, 2025, following safety issues involving its crude distillation unit main heater. He also referred to the shutdown of the Port Harcourt refineries for planned maintenance in May 2025.

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He argued that the contractors had breached the terms of the rehabilitation agreements and called for the recovery of the contract sums.

“In view of the foregoing, we are compelled to request the Office of the Attorney-General to recover the total sum of $123.17bn and N66.4bn owed the Government of the Federation by the Nigerian National Petroleum Corporation Limited, and some oil and gas companies operating in Nigeria,” the letter stated.

Falana said recovering the funds would reduce the Federal Government’s dependence on external borrowing and provide additional revenue for the federation and the states.

He warned that failure to begin recovery measures within 14 days would prompt legal action.

“If you fail to initiate legal measures for the recovery of the aforesaid huge funds belonging to the Government of the Federation within 14 days of the receipt of this letter, we shall not hesitate to file the necessary processes in the Federal High Court with a view to compelling you to discharge the duty of your office,” he wrote.

Falana also defended his firm’s standing to pursue the matter, citing its involvement in drafting and submitting a bill to amend the Deep Offshore and Inland Basin Production Sharing Contracts Act in 2017.

He noted that the bill was adopted and sponsored by a senator, subsequently passing first reading in the Senate before the dissolution of the Eighth National Assembly. According to him, the Ninth National Assembly subsequently adopted and passed the amendment.

He recalled that the then President of the Senate, Ahmad Lawan, had said the amendment would increase the country’s revenue by at least $1.5bn annually.

Source: punchng.com

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