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Electricity reforms: Rivers, Kano, 19 others delay takeover

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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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