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Electricity Act (Amendment) Bill: FG may sell 11 Discos to new investors

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The Federal Government may sell the 11 power distribution companies through a re-privatisation process if the Electricity Act (Amendment) Bill, 2025, currently before the National Assembly, becomes law.

The National Assembly has already initiated a legislative process to enforce sweeping reforms that could see core investors in electricity distribution companies lose their stakes if they fail to improve their investment.

The amendment bill, sponsored by Senator Enyinnaya Abaribe (Abia South), seeks to overhaul the 2023 Electricity Act by addressing regulatory gaps, as it warned that investors risk losing their stakes through share dilution, receivership, or outright re-privatisation if fresh capital is not injected into the sector within 12 months, following years of poor performance and a worsening debt crisis.

This clause comes into effect immediately after an assent is granted to the ongoing amendment of the Electricity Act 2023. The bill has passed its second reading and is currently undergoing further legislative action and discussions.

If passed into an Act, it will empower the Nigerian Electricity Regulatory Commission to compel core investors in the 11 successor Discos to inject fresh capital or face stiff regulatory action, including share dilution, receivership, or outright re-privatisation.

This was disclosed in the draft amendment to the Principal Act, seen by The PUNCH, on Monday. The proposed Electricity Act (Amendment) Bill, 2025, has already attracted condemnation from the Forum of Commissioners of Power and Energy, warning that the bill poses a serious threat to the country’s newly decentralised electricity market and could reverse key reforms achieved under the landmark Electricity Act of 2023.

The bill also gives the commission powers to impose sanctions, including dilution of shares or re-privatisation, on defaulting Discos, particularly those under receivership or financial distress.

The PUNCH reports that there are 11 Discos in Nigeria that service different regions across the country. They include Abuja Electricity Distribution Company, Benin Electricity Distribution Company, Eko Electricity Distribution Company, Enugu Electricity Distribution Company, and Ibadan Electricity Distribution Company.

Others are Ikeja Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electricity Distribution Company, Kano Electricity Distribution Company, Port Harcourt Electricity Distribution Company, and Yola Electricity Distribution Company.

Under the new law, a comprehensive framework must be developed within 12 months to overhaul the financial structure of the Nigerian Electricity Supply Industry, with a strong focus on attracting long-term local currency investments and phasing out what the bill describes as “unstructured and regressive subsidies.”

According to Sections 228J and 228K of the amended Act, the Minister of Power, in consultation with NERC, is required to develop and implement a robust financing framework aimed at de-risking investments across the power value chain and resolving the sector’s chronic debt overhang, estimated at over N4tn.

However, power sector experts and consumer advocacy groups have argued that the proposed law, if passed, can only be effectively implemented if the long-standing subsidy debts crippling the sector are first cleared.

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They also recommend extending the recapitalisation deadline to 24 months, similar to the approach adopted during the banking sector recapitalisation, to allow for a more realistic and structured transition.

A copy of the amended act read, “Financing of Projects in the NESI: The Federal Government shall, through the minister and in consultation with the Nigerian Electricity Regulatory Commission, establish a comprehensive framework for financing of projects in the NESI within 12 months from the commencement of this Bill.

“The framework referred to under subsection(1) of this section shall give regard to the extant National Electricity Policy and Strategic Implementation Plan and aim to attract and de-risk investments across the power value chain from generation, transmission, distribution, reduce diesel and petrol-based self-generation and address crippling financial crisis and debt overhang in the Nigerian power sector.”

The proposed Act stipulates that the new financing framework must prioritise long-term local currency financing for gas-to-power and distributed energy projects, a transparent and predictable tariff regime that guarantees cost recovery, the recapitalisation of Discos under NERC’s supervision, a clear determination of federal and state equity stakes in the Discos, and the provision of fiscal and tax incentives to attract investment and avert a sector collapse.

It noted, “The framework established under section 228I of this Bill shall include, but not limited to the following: long-term local currency capital financing for gas-to-power optimisation projects; distributed energy projects, etc, to mitigate foreign exchange risks for investors;

“Commitment to a transparent and predictable tariff regime that allows for cost recovery for efficient operators, progressively phasing out regressive and unstructured subsidies.

“Concession of certain power plants under the portfolio of the Niger Delta Power Holding, as well as commencement and completion of successor Discos’ recapitalisation to be implemented through the directive and supervision of the Nigerian Electricity Regulatory Commission.”

It further stated that the regulatory commission shall have the power to direct the core investors in the 11 successor distribution companies, including those under receivership, to recapitalise their respective equity holdings within such a time frame not exceeding 12 months from the commencement of this bill, and in deserving circumstances impose appropriate sanctions for non-compliance with its directive under this subsection, including an order for dilution of such shares held by core investors or re-privatisation.

It added, “A determination of Federal Government equity stakes in the 11 successor distribution companies with a clear timeframe of not later than 12 months from the commencement of this bill, for both the federal and state governments to make their respective contributions reflective of their equity holdings in the 11 successor distribution companies; and

“Such other mechanisms, such as fiscal and tax incentives to prevent the collapse of the NESI. Without prejudice to the provisions of subsection (2)(c) of this Section, the commission shall have the power to direct the core investors in the 11 successor distribution companies, including those under receivership, to recapitalise their respective equity holdings within such a time frame not exceeding 12 months from the commencement of this bill, and in deserving circumstances impose appropriate sanctions for non-compliance with its directive under this subsection, including an order for dilution of such shares held by core investors or re-privatisation.

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“The commission shall consult widely and take such measures as are necessary to ensure that the implementation of any order or directive on recapitalisation under sub-section (3) of this section neither disrupts continuity of service nor undermines investor confidence in the NESI.”

The government’s tough stance follows years of poor performance by the Discos, which continue to deliver erratic power supply despite multiple interventions, including debt forgiveness, financial bailouts, and tariff adjustments.

In May, the Federal Government openly expressed disappointment in the Discos, accusing them of frustrating ongoing reforms. At a media briefing in Abuja, the Minister of Power, Adebayo Adelabu, lamented that despite trillions of naira sunk into the sector, many Nigerians remain in darkness.

“The performance of the Discos has been grossly underwhelming,” Adelabu declared. “We can no longer tolerate excuses. If you can’t invest, give way to those who can.”

“We need to get tough with the Discos, as they can easily frustrate all the gains we have made. They have disappointed us in performance expectations. Whatever we do in generation does not mean anything to consumers if it is frustrated at the distribution points”.

A May 2025 report by the Bureau of Public Enterprises showed that more than 70 per cent of Discos have failed to meet key performance benchmarks set at the time of privatisation in 2013.

Reacting to the proposed timeline and pending directive, an official of power distribution companies dismissed concerns over the impact of the recently amended Electricity Act on Discos, saying the law is binding when assented to, and must be implemented by all stakeholders.

Reacting to industry debates surrounding the new legal provisions, the official, who spoke on condition of anonymity due to the lack of authorisation to speak on the matter, told The PUNCH that the focus should be on compliance and collaboration rather than resistance.

“It is totally irrelevant to say the law affects Discos. When the National Assembly makes laws, it is binding on all of us. What we should all do is to collectively implement and follow the law,” the official said.

The source noted that the amendments strengthen the powers of the Nigerian Electricity Regulatory Commission, a move the Discos are prepared to support.

“The regulatory commission has its powers, and when there is an amendment that further enhances that power, we are all for it. We believe in the wisdom of the National Assembly to amend the law, and we are ready to work with all stakeholders to ensure that the laws are implemented,” he added.

An electricity market expert, Chinedu Amah, says that the electricity sector challenges are not due to a lack of policies, but rather a failure to implement existing frameworks effectively.

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The expert noted in an interview on Tuesday that Nigeria is already saturated with policies and proposals, stressing that “policy overload” has become a recurring problem in the sector.

“We have policies on everything in Nigeria. So I don’t think it is a policy problem. Yes, there are policy gaps, but maybe we should just remove all the subsidies, flatten the tariff regime, and allow the market to drive investments,” the source said.

He added that while distribution companies have a responsibility to expand the grid and invest in infrastructure, the conversation must go beyond mere obligations.

“I don’t think it’s enough to say Discos need to make investments. You can’t force them to grow their business. But if there’s a critical infrastructure gap, it must be solved, whether by government, the private sector or through partnerships,” the official said.

However, another Power sector analyst, Habu Sadiek, called for key preconditions to ensure the initiative’s success. Reacting to provisions in the recently amended Electricity Act, Sadiek welcomed the plan but stressed the need for the government to first address pending financial issues within the sector.

“I think it’s a good thing,” he said. “But the government needs to do two things before initiating a recapitalisation programme: settle all outstanding subsidy payments and allow cost-reflective tariffs to prevail.” According to him, without resolving these issues, recapitalisation may not achieve its intended objectives.

He also criticised the 12-month window proposed for Discos to recapitalise, suggesting it was too short and unrealistic given current economic pressures. “Giving the current Disco owners 24 months, rather than 12, would have been better, similar to the Central Bank of Nigeria’s recapitalisation programme,” Sadiek added.

Additional efforts to get comments from the NERC on the issue proved abortive as the phone number of the Director, Public Affairs, Usman Arabi, was unreachable.

Meanwhile, the Minister of Power, Adebayo Adelabu, confirmed ongoing efforts to deploy special teams to underperforming power distribution companies as part of a broader restructuring programme.

Recall that in May 2025, the ministry announced a major overhaul of the power distribution sector, beginning with a pilot reform programme targeting two underperforming electricity distribution companies.

The pilot, scheduled to commence between May and August 2025, will involve one Disco each from the Northern and Southern parts of the country. The plan to restructure the companies came after a meeting with the Japanese International Cooperation Agency, which presented a roadmap titled “Revamping of the Distribution Sector in Nigeria”.

But giving an update on the process which is scheduled to end next month, the Special Adviser, Strategic Communications and Media Relations to the minister, Bolaji Tunji, on Monday, said the process is still ongoing. “It is an ongoing thing and we will brief you at the appropriate time,” he simply stated.

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State Police Update: National Assembly collates reports from 30 state assemblies

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The National Assembly has commenced collation of reports from state Houses of Assembly on the proposed establishment of state police, with the Senate Leader, Opeyemi Bamidele, saying the constitutional requirement for the reform had been met.

Bamidele disclosed this on Thursday while delivering a lecture to participants of Senior Executive Course 48 at the National Institute for Policy and Strategic Studies, Kuru, Plateau State.

He said at least 30 state legislatures had approved the State Police Constitution Alteration Bill, 2026, surpassing the constitutional requirement of two-thirds of the 36 State Houses of Assembly.

According to him, the National Assembly will collate the reports, consider the positions of the state legislatures and pass a resolution by a simple majority in both chambers before transmitting the bill to President Bola Tinubu for assent.

The Senate Leader, who is also Vice Chairman of the Senate Committee on the Review of the 1999 Constitution, said the National Assembly intended to complete the remaining legislative processes by December 2026.

He said, “We are pleased to inform our constituents across the federation that state police has moved from rhetoric to reality. We have already received formal reports from the state Houses of Assembly and, as of today, no fewer than 30 states have approved the State Police Constitution Alteration Bill, 2026.

“By the provision of Section 9(2) of the 1999 Constitution (as amended), which requires the concurrence of not less than two-thirds of all state Houses of Assembly, the constitutional requirement for the alteration has been duly met. This is a historic milestone in our collective quest to re-engineer our security architecture and make it more responsive, more local, and more effective.

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“What happens next is procedural, but critical. The National Assembly is now constitutionally obligated to consider the reports transmitted by the state Houses of Assembly, collate those reports, and pass a resolution by simple majority of members in both chambers. Once this resolution is passed, the Alteration Bill will be transmitted to the President and Commander-in-Chief for assent.

“We have set a clear timeline for ourselves. We intend to conclude all these legislative stages — consideration of reports, passage of resolution, and transmission for presidential assent — on or before December 2026,” the Senate Leader emphasised.

The proposed state police system is part of wider efforts to decentralise Nigeria’s security architecture amid persistent killings, kidnappings and other violent crimes across the country.

Under the existing policing structure, the Nigeria Police Force operates primarily as a centrally administered institution.

Proponents of state police argue that allowing states to establish their own police services would improve local intelligence gathering, response times and accountability.

However, concerns have been raised about the potential abuse of state police by governors and other political office holders, particularly against political opponents.

Bamidele said the proposed reform would operate within constitutional safeguards, oversight mechanisms and human rights protections.

He described the development as a significant breakthrough after more than 15 years of unsuccessful attempts to establish state police through constitutional reform.

“What this means is that state police is no longer a campaign promise or a subject of endless debate. It is now a constitutional reality. It means that the security of lives, private property and public assets occupies a prime place in the legislative agenda of the 10th National Assembly,” he said.

Bamidele said the proposed system would enable states to develop policing structures better suited to their local conditions.

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He added that the reform was not intended to weaken the Federal Government but to strengthen Nigeria’s federal system by making security more responsive to local communities.

According to him, the objective was not to create state armies but state-led, community-anchored policing arrangements operating under clearly defined constitutional and operational standards.

The Ekiti lawmaker also credited the leadership of the Senate President, Godswill Akpabio, with supporting the reform, assuring Nigerians that the National Assembly would see the process through.

He said the National Assembly, under the leadership of Akpabio, “remains committed to delivering on the establishment of state police. We will not falter until every Nigerian, whether in Kuru, in Iyin-Ekiti, in Gusau or in Yenagoa, can sleep with both eyes closed.”

Beyond state police, Bamidele said the 10th National Assembly had prioritised legislation intended to address citizens’ welfare, economic development and institutional reforms.

He argued that the performance of the legislature should be assessed by the practical effects of its laws and interventions rather than the number of bills passed.

Bamidele listed the Student Loans (Access to Higher Education) Act, 2024; the Minimum Wage (Amendment) Act, 2024; the four Tax Reform Acts of 2025; and the National Social Investment Programme Act among the measures passed by the current Assembly.

The Senate Leader also cited the Electoral Act, 2026, the Cybercrimes (Amendment) Act, the Investments and Securities Act, 2025, the Nigerian Insurance Industry Reform Act, 2024, and the Regional Development Commissions Acts.

He said the laws reflected a deliberate effort to use legislation to anticipate emerging challenges, strengthen public institutions and improve governance.

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Bamidele said the impact of proactive lawmaking extended to national security, economic transformation, public financial management, electoral credibility, education, healthcare, technological innovation, environmental sustainability and relations among the different tiers of government.

On the relationship between the National Assembly and NIPSS, he called for stronger institutional collaboration to improve legislative foresight and policy development.

He maintained that the passage of laws alone was insufficient to guarantee good governance, stressing the need for effective implementation, funding and monitoring.

The senator said good laws must be relevant to citizens’ needs and capable of producing measurable improvements in their lives.

He, thus, observed that good governance “requires good laws. But good laws alone do not guarantee good governance.

“We require laws that are relevant, evidence-based, implementable, adequately funded, properly administered, effectively monitored, periodically reviewed and ultimately measured by their impact on citizens,” Bamidele stated.

Source: punchng.com

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FG pumps N5tn into military operations, read details

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The Federal Government has disbursed N5.15tn in special intervention funds to the Nigerian military and related security agencies between November 2023 and September 2026, amid persistent insecurity, including terrorism, banditry, kidnapping and other violent crimes across the country.

An analysis by The PUNCH of documents from the Federation Account Allocation Committee, obtained on Thursday, revealed that the government received N5.65tn into a dedicated special intervention account over the period, out of which N5.15tn had been disbursed, representing 91.15 per cent of the total funds.

The records showed that the intervention was financed through allocations from the Federation Account and other government revenue sources, including non-oil revenue and funds transferred from a FAAC withholding account.

The document, titled ‘Ledger of Special Intervention Programme for Nigerian Military September, 2026”, was prepared by the Federation Account Department of the Office of the Accountant-General of the Federation and formed part of the records presented to the Technical Sub-Committee of FAAC at its meeting in Abuja on October 14, 2026.

According to the ledger, the N5.15tn was released through 30 payment transactions between November 8, 2023, and September 23, 2026, while the total receipts were recorded across 33 funding transactions.

The disbursements were separate from the regular annual budgetary allocations to the Ministry of Defence and other security institutions, indicating the scale of additional financial resources channelled towards security operations.

However, the records did not provide a breakdown of the specific military operations, equipment purchases, personnel costs or security projects financed with the money.

A breakdown of the transactions showed that the intervention programme commenced with a N100bn transfer on October 19, 2023, described as the September 2023 allocation.

The first payment of N100bn was made to the military on November 8, 2023, while another N100bn was received on November 20, 2023, and subsequently disbursed on December 20.

By the end of December 2023, the account had received N300bn and disbursed N300bn, leaving no outstanding balance.

The funding arrangement continued throughout 2024, with regular transfers of N100bn and corresponding payments to military and paramilitary agencies.

Between January and December 2024, the account received N1.2tn and disbursed the same amount, bringing cumulative receipts and payments to N1.5tn.

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The transactions were largely recorded as monthly allocations under the special intervention programme, although the payment dates did not always correspond with the months for which the funds were allocated.

For instance, the January 2024 allocation was transferred on February 27, while the corresponding payment was made on March 1.

Similarly, the ledger showed that the programme entered a second phase in July 2024, beginning with a N100bn transfer on July 27.

The second phase continued into 2025, with the government maintaining the N100bn monthly funding pattern.

During the first nine months of 2025, the account received N900bn and disbursed N900bn, bringing cumulative payments to N2.4tn by September 1, 2025.

An analysis of the transactions, therefore, showed that N2.4tn was disbursed between November 2023 and September 2025, before the government significantly increased the scale of the intervention in 2026.

The records indicated that the funding arrangement changed considerably in 2026, with individual transfers rising from the previous N100bn monthly pattern to between N200bn and N500bn.

On March 18, 2026, the government transferred N200bn from the FAAC Withheld Account, described in the ledger as savings for March 2026.

The amount was followed by a N100bn payment to security agencies on March 16, although the payment preceded the recorded transfer by two days.

Another N250bn was transferred from non-oil revenue on May 18, 2026, while N130bn was paid to security agencies from the FAAC Withheld Account on May 25.

The ledger also recorded a N120bn payment to the Consolidated Pool Account II TSA on June 3, 2026.

This particular transaction differed from the other payments because it was not expressly described as a transfer to military or paramilitary agencies.

On June 16, 2026, the government transferred N400bn from non-oil revenue for May, which was reversed the same day.

The reversal was followed by a fresh transfer of N500bn from non-oil revenue, indicating that the earlier transaction was cancelled and replaced.

The same day, N500bn was paid to military and paramilitary agencies, marking one of the largest individual disbursements recorded under the programme.

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Another N500bn was transferred from non-oil revenue on July 15, followed by a corresponding payment to military and paramilitary agencies on July 22.

The pattern continued in August, when N500bn was transferred on August 19 and paid out on the same date.

On September 16, another N500bn was transferred from non-oil revenue, while the corresponding payment was recorded on September 23.

The final entry in the ledger showed a further N500bn transfer from non-oil revenue on October 14, 2026, described as the September 2026 allocation.

Although the ledger was titled September 2026, the inclusion of the October 14 transaction indicated that its financial position incorporated the latest transfer recorded at the FAAC technical meeting.

The figures showed that the intervention account received N3.25tn in 2026 up to October 14, compared with N1.2tn throughout 2024.

This represented an increase of about 170.83 per cent over the entire amount received in 2024, despite the 2026 records covering only part of the year.

Payments recorded in 2026 amounted to N2.75tn, compared with N1.2tn in 2024, representing an increase of approximately 129.17 per cent.

The N2.75tn disbursed in 2026 also accounted for 53.40 per cent of the N5.15tn paid out under the programme since its commencement.

The analysis further showed that the government disbursed more under the special intervention programme in 2026 than the combined N2.4tn released between November 2023 and September 2025.

It also revealed that the programme had an outstanding balance of N500bn as of October 14, 2026, representing 8.85 per cent of the total N5.65tn received.

The balance arose after the latest N500bn transfer was recorded without a corresponding payment in the ledger.

Consequently, the outstanding amount represented funds available in the intervention account rather than money already disbursed to security agencies.

Despite the significant increase in funding, the country continues to grapple with security challenges across several regions.

In the North-East, the military has continued operations against Boko Haram and the Islamic State West Africa Province, while banditry and mass kidnappings remain major security concerns in parts of the North-West and North-Central regions.

Communities in several states have also experienced attacks by armed groups, resulting in deaths, displacement and disruption of farming and other economic activities.

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The security challenges have placed pressure on government finances, as authorities continue to allocate substantial resources to military operations, intelligence gathering, logistics and the protection of vulnerable communities.

FG reviews strategy

Ina related development, the Federal Government has begun a review of the 2019 National Security Strategy to develop a new framework that addresses emerging threats, including terrorism, banditry, kidnapping, cybercrime, food insecurity and climate change.

The National Security Adviser, Nuhu Ribadu, disclosed this on Thursday during the inauguration of a committee to review the existing strategy and formulate the National Security Strategy 2026.

Ribadu, who was represented by Major General Sarkin Bello (retd.), said Nigeria’s security environment had changed significantly since the last review in 2019, requiring a comprehensive reassessment of the country’s security priorities.

“Our national security landscape is undergoing rapid and profound transformations. Since the last review of our strategy in 2019, the domestic, regional and global security environments have changed dramatically, with intensity,” he said.

He noted that the country was confronted with multiple security challenges that required a broader strategic response.

“As you are aware, these problems range from terrorism, banditry and kidnapping to sophisticated cyber threats, misinformation, economic problems, food insecurity and environmental challenges, among others,” Ribadu said.

He said the new strategy would serve as a framework for coordinating national security, resilience and sustainable development, adding that it must reflect current realities while anticipating future threats.

Also, the Deputy Chairman of the committee, Major General Evi Onumajuru (retd.), said the changing nature of security threats made a strategic realignment imperative.

He said traditional security challenges, including terrorism, insurgency and banditry, had become intertwined with non-kinetic threats such as cybercrime, economic vulnerabilities, food insecurity and climate change.

He added that the strategy must integrate the priorities of the Renewed Hope Agenda by linking economic prosperity and good governance with human security and national defence.

Source: punchng.com

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10 things to know about applying for 2027 SAN rank

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The Legal Practitioners’ Privileges Committee has invited applications for the 2027 award of the rank of Senior Advocate of Nigeria, with private legal practitioners required to pay a non-refundable processing fee of N5m and government-employed lawyers N2.5m.

The committee said the application portal would open on November 1, 2026, directing all candidates to complete the application process online and comply with its document submission requirements and deadlines.

PUNCH Online had reported Wednesday that Legal Practitioners’ Privileges Committee invited applications for the 2027 conferment of the rank of Senior Advocate of Nigeria.

Here are 10 things prospective applicants need to know about the exercise.

1. Applications open on November 11

The LPPC said its application portal would open to the public at 12am on November 1, 2026.

Applications are to be processed through its official portal, www.lppconline.com.

2. Private legal practitioners will pay N5m

The committee fixed the non-refundable processing fee for private legal practitioners at N5m.

3. Government-employed lawyers will pay N2.5m

Legal practitioners employed by the government are required to pay a non-refundable fee of N2.5m.

4. Payment must be made into designated bank accounts

Applicants are required to pay directly into either of the committee’s designated accounts:

– Zenith Bank: 1014103141

– Guaranty Trust Bank: 0213662834

5. Proof of payment must be uploaded

Candidates must upload evidence of payment to the online portal for verification.

According to the notice, the LPPC Secretariat will send a confirmation email after verification, allowing applicants to continue with the process.

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6. All supporting documents must be uploaded online

Applicants seeking the rank through advocacy or academia must upload clear and legible scanned copies of all mandatory and supporting documents through the portal.

7. Academic applicants have additional requirements

Candidates applying through the academic category must submit seven physical photocopies each of their curriculum vitae and impact statement, in addition to the required flash drives.

8. Every applicant must submit five flash drives

The committee directed all applicants to provide five flash drives containing copies of their completed application forms downloaded from the portal and all mandatory and supporting documents uploaded during the application process.

9. Online applications close on January 31, 2027

The deadline for completing online applications is midnight on January 31, 2027. Applicants are advised to complete their submissions before the deadline to avoid technical or procedural complications.

10. Flash drives must arrive by February 1, 2027

The five flash drives must be delivered to the LPPC Secretariat before 4pm on February 1, 2027.

The committee warned that applications that do not comply with its guidelines or are submitted after the prescribed deadlines will be rejected and treated as non-submissions.

The notice was signed by the Chief Registrar of the Supreme Court of Nigeria and Secretary of the LPPC, Kabir Eniola Akanbi.

Applicants seeking clarification may contact the secretariat through lppcsecretariat@courts.gov.ng.

Source: punchng.com

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