Connect with us

Business News

New Electricity Tariffs Take Effect April 1 – NERC

Published

on

Share


By Ben Nwachukwu, Abuja

The Nigerian Electricity Regulatory Commission on Sunday said that the electricity tariffs being paid by consumers will increase in April this year.

The Commission announced this in its December 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020.

It said that the order was issued to reflect the impact of changes in the minor review variables in the determination of cost-reflective tariffs and relevant tariff and market shortfalls for 2019 and 2020.

NERC said that the order also determined the minimum remittances payable by the Discos in meeting their market obligations based on the allowed tariffs.

”The Federal Government’s updated Power Sector Recovery Programme does not envisage an immediate increase in end-user tariffs until April 1, 2020, and a transition to full cost reflectivity by end of 2021.

“In the interim, the Federal Government has committed to funding the revenue gap arising from the difference between cost-reflective tariffs determined by the commission and the actual end-user tariffs payable by customers, ” the agency said. 

According to NERC, all Discos are obligated to settle their market invoices in full as adjusted and netted off by applicable tariff shortfall.

It said, “All FGN intervention from the financing plan of the PSRP for funding tariff shortfall shall be applied through NBET and the market operator to ensure 100 per cent settlement of invoices issued by market participants.

“Effectively, this order places a freeze on the tariffs of TCN and administrative charges until April 2020 at the rates applied in generating MO invoices for the period of January to October 2019.”

According to NERC, the minor review variables are Nigerian and the United States inflation rates, naira-dollar foreign exchange rates, gas prices and available generation capacity.

Meanwhile, Nigeria’s electricity grid collapsed four times in the fourth quarter of 2019, the latest figures obtained from the Federal Ministry of Power showed.

It was also observed that the total quantum of energy generated on the grid during the period under review hit the highest peak of 5,156.9 megawatts on November 19, 2019.

Although the highest power generation during the fourth quarter was recorded in November, the grid witnessed two collapses in the same month.

In December, the grid collapsed twice, after it had recorded a peak power generation of 4,124.3MW on December 1.

In its report on implementation milestones of the Transmission Rehabilitation and Expansion Programme from February 2017 to October 2019, the Transmission Company of Nigeria stated that since May 2019, the grid was unstable due to poor distribution networks, a claim which power distributors countered.

The TCN is owned by the Federal Government and it is the only company, out of the 18 successor companies unbundled from the defunct Power Holding Company of Nigeria that was not privatised.

Although the TCN stated that the instability of the grid was due to poor distribution networks, power distributors countered the claim by the transmission company.

Speaking on behalf of power distributors under their umbrella body, Association of Nigerian Electricity Distributors, the Executive Director, Research and Advocacy, Sunday Oduntan, faulted the TCN’s claim.

Business News

Budget Office Defends Tax Reform Acts, Seeks Due Process

Published

on

Share

By Tony Obiechina, Abuja 

The Budget Office of the Federation has reaffirmed the integrity of Nigeria’s newly enacted Tax Reform Acts, cautioning against what it described as governance by speculation and unverified claims following allegations of post-passage alterations.

In a statement on Wednesday, the Budget Office said it had taken note of concerns raised by the Minority Caucus of the House of Representatives, stressing that the sanctity of the law is central to constitutional democracy and not a mere procedural formality.

According to the Office, any suggestion that a law could be altered after debate, passage, authentication, and presidential assent without due process would strike at the core of the Republic and undermine citizens’ right to be governed by transparent and stable laws.

However, it warned that democratic integrity is also endangered by the careless amplification of unverified claims. “A nation cannot be governed by insinuation or sustained on circulating documents of uncertain origin,” the statement noted, adding that public confidence, once shaken by speculation, is often difficult to restore.

The Budget Office emphasized that both government and citizens share a common interest in truth, clarity, and due process, noting that public finance depends heavily on trust in the legality and clarity of fiscal laws. It welcomed the decision of the National Assembly to investigate the allegations, describing institutional inquiry, not conjecture as the appropriate response to claims of illegality.

On public access to the law, the Office agreed that Nigerians and the business community are entitled to clear and authoritative texts of all laws they are required to obey. It clarified, however, that the authenticity of legislation is determined by certified legislative records and official publication processes, not by informal or viral reproductions.

The statement also underscored the importance of separation of powers, warning that claims suggesting Nigeria is being governed by “fake laws,” if not backed by established facts, risk eroding confidence in democratic institutions.

 At the same time, it stressed that legislative scrutiny should not be dismissed by the executive, noting that oversight is a constitutional duty, not an act of hostility.

From a fiscal perspective, the Budget Office said legal certainty is essential for revenue projections, macroeconomic stability, budget credibility, and investor confidence. While it is not the custodian of legislative records, it maintained that uncertainty around operative tax provisions directly affects economic planning.

To restore confidence, the Office proposed a set of measures, including the publication of verified reference texts in a single public repository, orderly access to Certified True Copies for stakeholders, clear public explanations where discrepancies are alleged, and strict alignment of all implementing regulations with authenticated legal texts.

Addressing calls for suspension of the tax reforms, the Budget Office cautioned against allowing prudence to slide into paralysis. It argued that properly implemented tax reform is necessary to reduce dependence on borrowing and inflationary financing, while easing indirect burdens on vulnerable citizens.

“Where clarification is required, it must be provided; where correction is required, it must be effected; where investigation is required, it must proceed,” the statement said, adding that governance and reform should not be stalled by unresolved conjecture.

The Office concluded by describing taxation as a democratic covenant that binds citizens and the state, insisting that compliance depends on transparency and trust. It called on political actors to protect institutions as much as positions, urging citizens and businesses to rely on verified sources and resist the spread of unauthenticated information.

The statement was signed by Tanimu Yakubu, Director-General of the Budget Office of the Federation, who reaffirmed the agency’s commitment to fiscal transparency, institutional integrity, and reforms that advance national prosperity while safeguarding citizens’ rights.

Continue Reading

Business News

Tinubu Congratulates Dangote on World Bank Appointment

Published

on

Share

By Jennifer Enuma, Abuja

President Bola Tinubu has congratulated Alhaji Aliko Dangote, the President of Dangote Group, on his appointment to the World Bank’s Private Sector Investment Lab, a body tasked with promoting investment and job creation in emerging economies.

In a statement by Special Adviser on Media and Publicity, Bayo Onanauga, the President described the appointment as apt, given Dangote’s rich private sector experience, strategic investments, and many employment opportunities created through his Dangote Group.

The Dangote Group became one of Africa’s leading conglomerates through innovation and continuous investment.

Dangote Group’s business interests span cement, fertiliser, salt, sugar, oil, and gas. However, the $20 billion Dangote Petroleum Refinery and Petrochemicals remains Africa’s most daring project and most significant single private investment.

“President Tinubu urges Dangote to bring to bear on the World Bank appointment his transformative ideas and initiatives to impact the emerging markets across the world fully” the statement said.

The World Bank announced Dangote’s appointment on Wednesday, as part of a broader expansion of its Private Sector Investment Lab. The lab now enters a new phase aimed at scaling up solutions to attract private capital and create jobs in the developing world.

The CEO of Bayer AG, Bill Anderson, the Chair of Bharti Enterprises, Sunil Bharti Mittal, and the President and CEO of Hyatt Hotels Corporation, Mark Hoplamazian, are on the Private Sector Investment Lab with Dangote.

The World Bank said the expanded membership brings together business leaders with proven track records in generating employment in developing economies, supporting the Bank’s focus on job creation as a central pillar of global development.

Continue Reading

Business Analysis

Nigeria Customs Generates over N1.75trn Revenue in 2025

Published

on

Share

By Joel Oladele, Abuja

The Nigeria Customs Service (NSC) has generated an impressive N1,751,502,252,298.05 in revenue during the first quarter of 2025.

The Comptroller-General (CG) of the Service, Bashir Adeniyi, disclosed this yesterday, during a press briefing in Abuja.

According to Adeniyi, the achievement not only surpasses the quarterly target but also marks a substantial increase compared to the same period last year, reflecting the effectiveness of recent reforms and the dedication of customs officers across the nation.

“This first quarter of 2025 has seen our officers working tirelessly at borders and ports across the nation.

I’m proud to report we’ve made real progress on multiple fronts—from increasing revenue collections to intercepting dangerous shipments,” Adeniyi stated.

He attributed this success to the reforms initiated under President Bola Tinubu’s administration and the guidance of the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.

The CG noted that the revenue collection for Q1 2025 exceeded the quarterly benchmark of N1,645,000,000,000.00 by N106.5 billion, achieving 106.47% of the target. This performance represents a remarkable 29.96% increase compared to the N1,347,705,251,658.31 collected in Q1 2024.

Adeniyi highlighted the month-by-month growth, noting that January’s collection of N647,880,245,243.67 surpassed its target by 18.12%, while February and March also showed positive trends.

 “I’m pleased to report the Service’s revenue collection for Q1 2025 totaled N1,751,502,252,298.05.

“Against our annual target of N6,580,000,000,000.00, the first quarter’s proportional benchmark stood at N1,645,000,000,000.00. I’m proud to announce we’ve exceeded this target by N106.5 billion, achieving 106.47% of our quarterly projection. This outstanding performance represents a substantial 29.96% increase  compared  to  the  same  period  in  2024,  where  we  collected N1,347,705,251,658.31.

“Our month-by-month analysis reveals even more encouraging details of this growth trajectory,” Adeniyi said.

In addition to revenue collection, Adeniyi said the NCS maintained robust anti-smuggling operations, recording 298 seizures with a total Duty Paid Value (DPV) of ₦7,698,557,347.67.

He stated that rice was the most seized commodity, with 135,474 bags intercepted, followed by petroleum products and narcotics.

“From rice to wildlife, these seizures show our targeted approach,” Adeniyi remarked, noting the NCS’s commitment to combating smuggling and protecting national revenue.

Adeniyi also highlighted key initiatives, including the expansion of the B’Odogwu customs clearance platform and the launch of the Authorized Economic Operators Programme, which aims to streamline processes for compliant businesses. The NCS’s Corporate Social Responsibility Programme, “Customs Cares,” was also launched, focusing on education, health, and environmental sustainability.

Despite these achievements, the CG noted that the NCS faced challenges, including exchange rate volatility and non-compliance issues. Adeniyi acknowledged the need for ongoing adaptation and collaboration with stakeholders to address these challenges effectively.

Looking ahead, the NCS aims to continue its modernization efforts and enhance service delivery, ensuring that it remains a critical institution in Nigeria’s economic and security landscape.

“Results speak louder than plans; faster clearances through B’Odogwu, trusted traders in the AEO program, and measurable food price relief from our exemptions. We’ll keep scaling what works,” he concluded.

Continue Reading

Advertisement

Read Our ePaper

Top Stories

NEWS4 hours ago

Six Die in Road Crash on Ilorin–Ogbomoso Highway

ShareSix persons, including a pregnant woman and five undergraduate nursing students, have lost their lives in a motor accident that occured...

NEWS4 hours ago

Water, Electricity Shortages Cripple Social, Commercial Activities in Niger

ShareFrom Dan Amasingha, Minna Social and economic activities in several parts of Niger State have been severely disrupted for more than two weeks following acute shortages of...

NEWS4 hours ago

We’ll Not Leave Our Communities at Mercy of Bandits – Bola

ShareFrom Ajiya Ayuba, Bauchi Bauchi State Governor, Bala Mohammed, has said that he will not leave his communities at the mercy of bandits. The governor said this during a...

Oil & Gas4 hours ago

Goldman Sachs Predicts Brent Crude Oil to Fall to $60 By Late 2026

ShareGoldman Sachs lifted its fourth-quarter 2026 oil price forecasts, citing tighter Organisation for Economic Co-operation and Development (OECD)inventories, while the bank maintained its...

POLITICS4 hours ago

Bayelsa Assembly Clears Peter Akpe to Replace Late Bayelsa Deputy Gov

ShareThe Bayelsa House of Assembly on Tuesday approved the nomination of Dr Peter Akpe as Deputy Governor of Bayelsa to replace the late Lawrence Ewhrudjakpo. The late deputy governor, Ewhrudjakpo, died on Dec. 11 2025 and...

NEWS4 hours ago

CBN Targets Businesses, Households, Cuts Interest Rate to 26.5 Per Cent

ShareBy Tony Obiechina, Abuja In a move to ease the financial pressure on businesses and households, the Monetary Policy Committee...

NEWS4 hours ago

El- Rufai  Legal Prosecution Not Ripe, Declares EFCC

ShareBy David Torough, Abuja A fresh political storm erupted on Tuesday as former Vice President Atiku Abubakar warned that the...

NEWS4 hours ago

Tinubu Accepts Egbetokun’s Resignation, Appoints Disu Acting IGP

ShareBy David Torough, Abuja President Bola Tinubu has accepted the resignation of Inspector-General of Police Kayode Egbetokun and appointed Assistant...

POLITICS11 hours ago

IGP Slams Murder, Unlawful Firearms Possession Charge on Osun Political Thugs

ShareThe Inspector General of Police (IGP) on Monday at the Federal High Court in Abuja put four Osogbo-based suspected political...

POLITICS11 hours ago

Wike Not Our Member, APC Insists

ShareBy Mike Odiakose, Abuja In spite of the role Nyesom Wike played to ensure victory for the ruling All Progressives...