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Experts Urge Government to Tackle Electricity Liquidity Crisis

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Stakeholders in the power sector have raised concerns over the persistent financial challenges affecting Nigeria’s electricity value chain as the nation marks 65 years of independence.

They said in Lagos on Tuesday that liquidity constraints remain the single biggest obstacle to providing stable and reliable power to millions of Nigerians.

Group Managing Director of Sahara Power Group, Dr.

Kola Adesina described the sector as being in a state of chronic financial insolvency.

He noted that power generation companies (GenCos) and gas suppliers were owed over N4 trillion.

“Only about 35 per cent of monthly invoices are paid, leaving stranded capacity and stifling both maintenance and fuel supply,” he lamented.

Adesina also identified non-cost-reflective tariffs as a fundamental structural flaw.

He explained that while the April 2024 Band A tariff increase from N66 to N225/kWh helped reduce the cost-recovery gap for high-end users, it also triggered political backlash and regulatory uncertainty.

“Partial rollbacks have only deepened policy instability.

“Meanwhile, transmission constraints and grid instability remain persistent problems.

“Despite installed generation capacity, Nigeria’s wheeling capacity lags far behind, resulting in frequent system collapses.

“Aging infrastructure, limited SCADA coverage, and vandalism further compound the crisis,” he said.

Adesina warned of misalignments in the gas-to-power chain, citing irregular payments, pipeline bottlenecks, and foreign exchange exposure that limit gas availability for thermal plants.

“Contractual disconnects between Gas Supply Agreements and Power Purchase Agreements only worsen the situation. It all circles back to liquidity,” he stressed.

According to him, the Electricity Act 2023, which decentralises power sector responsibilities to the states, presents both opportunities and risks.

“Decentralisation can foster healthy competition. But without a unified regulatory framework, we risk dangerous fragmentation that could derail market stability,” he cautioned.

To resolve the sector’s enduring crisis, Adesina proposed urgent reforms.

These, he added, include securitising legacy debts owed to GenCos and gas suppliers through a time-bound bond programme tied to improve metering and reduced losses.

He also urged strict enforcement of tariff discipline under the MYTO framework, targeted subsidies for low-income users, and government guarantees for FX-indexed gas payments.

Adesina further recommended granting operational independence to the Transmission System Operator (TSO), scaling up metering, supporting mini-grids and off-grid solar, hybridising hydro and gas plants with renewables, and launching competitive tenders backed by bankable Power Purchase Agreements (PPAs).

Similarly, Dr Olukayode Akinrolabu, Chairman of the Customer Consultative Forum for Festac and Satellite Town, acknowledged that ongoing electricity reforms under President Bola Tinubu’s administration had recorded some gains but not without persistent challenges.

He said Nigeria’s functional power generation capacity rarely exceeds 4,000 megawatts, which remains grossly inadequate to meet the country’s energy needs.

“One of the most pressing issues is the persistent inadequate generation capacity.

“In spite of reforms, the sector continues to fall short of expectations,” he said.

Akinrolabu highlighted grid instability, noting that the national grid suffered more than 10 partial or complete collapses in 2023 and 2024 alone.

He also lamented the metering gap, with an estimated 6.2 million customers still unmetered, leading to widespread estimated billing, loss of consumer trust, and revenue shortfalls for Distribution Companies (DisCos).

He said the Transmission Company of Nigeria (TCN) struggles to move power efficiently from GenCos to end-users, with frequent disruptions caused by vandalism and inadequate gas infrastructure funding.

“Much of the transmission and distribution network is obsolete and dilapidated, contributing to high technical losses and continued grid instability,” he added.

According to him, DisCos and GenCos face severe financial stress due to low tariff recovery, widespread electricity theft, and weak liquidity.

He also warned that inconsistent policies and regulatory ambiguity discourage investors.

“Without a stable regulatory environment, investor confidence will remain low, and the sector will continue to suffer,” he said.

Also, electricity market analyst, Mr Lanre Elatuyi, stressed the urgent need for clear and consistent policies to attract private sector investment into Nigeria’s power industry.

He said investors require a fair regulatory environment, legal protection, and assurances that government will honour its financial obligations.

He expressed concern over the rising debt owed by government ministries, departments, and agencies (MDAs), calling it a red flag.

Elatuyi also lamented the absence of strict penalties for energy theft, describing it as another factor undermining investor confidence.

“We must treat the power sector as an integrated whole, understanding that each segment has distinct goals but ultimately must work together for reliable and affordable electricity,” he said.

He explained that affordability depends on ensuring the lowest possible supply costs, which begin with investment decisions and extend through efficient dispatch of generators.

Elatuyi outlined two market models Nigeria could adopt: a centralised market where a central authority dispatches generators based on technical constraints, or a decentralised market relying on bilateral contracts complemented by a balancing spot market.

He added that pricing mechanisms such as locational marginal pricing or postage stamp pricing were vital for efficient market operations.

“While these concepts may seem unfamiliar, they are fundamental to delivering affordable and reliable electricity. Our power sector is no longer a vertically integrated system.

“To move forward, we must embrace the fundamentals of a liberalised electricity market,” he said.

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Former Delta Governor Uduaghan Dies at 70

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From Francis Sadhere, Delta

Former Governor of Delta State, Dr. Emmanuel Eweta Uduaghan, has died.

Uduaghan, who governed the state from 2007 to 2015, reportedly passed away in the morning of Monday, October 19, 2026.

His death was announced in a statement signed by Toju Anire Uduaghan on behalf of the family, which described his passing as a devastating loss to the family, Delta State and Nigeria.

The family said the former governor was a beloved father, brother, uncle and patriarch whose life and service touched many people across the state and the country.

“His passing has left us devastated. Words can hardly express the depth of our sorrow at the loss of a man who meant so much to our family and whose life and service touched countless others across Delta State and Nigeria,” the statement said.

Uduaghan held several key positions in the Delta State Government before becoming governor. He served as Commissioner for Health from 1999 to 2003 and Secretary to the State Government from 2003 to 2007.

He subsequently emerged as governor in 2007 and remained in office until 2015, during which the family said he demonstrated commitment to the human and infrastructural development of the state.

The family described his death as a profound loss, noting that he was a source of strength, a father figure and a respected elder whose memories and legacy would remain cherished.

“We are grateful to Almighty God for his life, his service, and the legacy he leaves behind,” the statement added.

The family prayed for the repose of his soul and divine comfort for relatives, friends, associates, former colleagues and others mourning his death.

“Your memory will forever remain in our hearts, and your legacy will endure in the lives of those you touched,” the family said in its farewell message.

Uduaghan’s death marks the loss of a former leader who occupied prominent positions in Delta State’s political and administrative history.

The family concluded its announcement with a prayer for his peaceful repose, saying, “May your gentle soul rest in perfect peace. Amen.”

The statement was signed by Toju Anire Uduaghan on behalf of the family.

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Customs Opens Review for Disqualified Recruits, Flags 397 Applicants

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By Tambaya Julius, Abuja

The Nigeria Customs Service (NCS) has opened a review process for applicants disqualified during its recent recruitment screening, following complaints from candidates who made the shortlist but were denied entry into the training college.

The Comptroller-General of Customs, Bashir Adewale Adeniyi, ordered a case-by-case review after meeting with some of the affected applicants, according to a statement by the Service.

The NCS disclosed that 397 applicants were flagged during the screening over issues relating to substance abuse, physical fitness, medical records, age and submitted documents.

It clarified that the substance-abuse category excluded cigarette and alcohol use. Some other applicants were disqualified over irregularities discovered in their selection process.

The Service explained that making the final shortlist did not guarantee enlistment, as candidates were required to pass several stages of screening, including document verification, physical fitness and endurance tests, medical examinations, age checks and drug screening.

Affected applicants have been asked to submit their details and complaints to helpdesk@customs.gov.ng for assessment. Those seeking a review will undergo fresh screening, the Service said.

It added that the review would not automatically qualify any applicant for admission into the training college, stressing that all candidates must meet the prescribed recruitment requirements.

The NCS also warned that applicants found to have engaged in criminal conduct, including certificate fraud, could be referred to the appropriate authorities for investigation and prosecution.

The Service urged aggrieved candidates to use the designated email address to submit their complaints, saying the review was intended to address genuine concerns while preserving the credibility of the recruitment exercise.

It maintained that recruitment standards would not be compromised, given the Customs Service’s responsibilities for border protection, revenue collection, national security and public safety.

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World Bank Tasks FG, States on Sustainable Cash Transfers

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By Tambaya Julius, Abuja

The World Bank has urged the Federal Government and state governments to establish a sustainable social protection system, warning that Nigeria’s N658.9bn cash transfer programme needs wider coverage, adequate payments and regular disbursements to provide meaningful relief to vulnerable households.

As of September 2026, the Federal Government had disbursed N658.

9bn to 10.46 million poor and vulnerable households through direct cash transfers, using biometric and digital verification to identify beneficiaries and deliver payments.

The bank, however, said the programme must move beyond emergency interventions to a reliable system backed by regular government funding.

The recommendation was contained in its latest Nigeria Development Update, titled ‘Beyond the Federal Purse: How Higher Revenues Shaped State Priorities’.

According to the report, the effectiveness of cash transfers depends on the number of households reached, the value of payments and how consistently beneficiaries receive them.

The bank called for dedicated budget allocations at both federal and state levels, with increased funding from domestic resources to ensure continuity and reduce dependence on temporary interventions.

It also stressed the need for stronger coordination between the two tiers of government to improve the delivery and monitoring of social assistance programmes.

The report said a predictable, adequately funded social protection system would help vulnerable Nigerians cope with economic pressures and improve household welfare.

Mean while, President Bola Tinubu has received the United Nations’ proposed 2027 budget, valued at about $14 billion, from Nigeria’s Permanent Representative to the global body, Jimoh Ibrahim, who described the presentation as a historic milestone for the country, which is chairing the UN General Assembly’s Fifth Committee on Administrative and Budgetary Matters for the first time in 66 years.

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