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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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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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