COVER
Nigerian Households Spend $14bn Annually to Fuel Generators
Over 40 per cent of households in Nigeria own and use generators to meet their electricity requirements, figures contained in a power sector report jointly put together by a research firm and a financial institution, showed.
It also stated that the affected households spent about $14bn annually to fuel their generators, as the power supply from the national grid continued to falter.
The June 2022 report by Stears and Sterling, titled, “Nigeria’s State of Power: Electrifying the Nation’s Economy,” obtained by our correspondent on Friday in Abuja, stated that the cost expended on diesel and petrol for electricity generation by Nigerians was having severe economic impact on households and businesses.
It read in part, “Nigerian households, on average, have electricity in their homes for 15 to 18 hours each day. Of that, 44 per cent (or 6.8 hours) is self-supplied by generators. And this differs by geography. In a state like Taraba, only 19 per cent of households report having electricity.
“Over 40 per cent of Nigerian households own generators, and bear the associated costs. First, the cost of purchasing generators – an estimated $500m between 2015 and 2019, higher than the proposed capital expenditure in Nigeria’s 2022 budget.
“There is also the cost of powering these generators. Sources and estimates vary widely, but the African Development Bank estimated that Nigerians spend $14bn fuelling petrol or diesel powered generators.”
“While PMS (Premium Motor Spirit) or petrol prices have been kept artificially low for the consumers through subsidies, variations in AGO (Automotive Gas Oil) or diesel prices can have a severe impact on households and businesses as Nigerians are currently experiencing,” the report added.
The report stated though the National Bureau of Statistics diesel price watch for February 2022 showed a less than 10 per cent rise in the price of fuel from the beginning of the year, diesel was widely sold at prices 200 to 300 per cent up from the end of last year.
This, it said, had made it incredibly difficult for households or businesses to plan and manage themselves.
The analysts noted in their report that while petrol prices appeared more stable, prices were kept artificially low by government subsidies which were generally acknowledged to be unsustainable even in the near to medium term.
“These prices make the small petrol generators more attractive to households and MSMEs (micro, small and medium enterprises), they stated.
“However, perennial issues like product scarcity, make using these generators unreliable as well as expensive,” they added.
Power experts at Stears and Sterling observed that Nigeria had one of the lowest electrification rates in the world.
They stated that in the most populous country in Africa, 43 per cent of the population had no access to grid electricity.
“This means that 85 million Nigerians are not connected to – and cannot receive electricity from – the Nigerian transmission grid,” they stated in the report.
The report added, “While Nigeria’s electrification rate is above the Sub-Saharan Africa regional average of 47 per cent, it lags significantly behind its peers across the continent and the global average.
“Nigerians who do have access to power also have to contend with its poor quality, typically exhibited by epileptic supply.
“Households connected to the grid only receive an average of seven hours of electricity per day, forcing them to turn to alternative energy sources – most prevalently diesel generators, an expensive and dirty source of energy.”
The report stressed that the impact of not having reliable energy could not be overstated, adding that “economic losses associated with Nigeria’s energy crisis are estimated at N10tn ($26bn) – the country’s 2022 proposed budgetary revenue and roughly three times what it actually earned in 2020.”
Proffering measures to help address the country’s electricity problems, an energy expert, Prof. Yemi Oke, called for the appointment of individuals with expertise in handling power issues.
“Put those who are radically-proactive to deploy knowledge-based strategies to re-reform, because we need to go through another round of power sector reform, and the NERC (Nigerian Electricity Regulatory Commission), which I honestly think is unconstitutional as presently constituted.
“I’ve written and severally said this years ago. We can’t be talking of a federated grid system or power sector in the 21st century! By virtue of the constitution, every state should, by now, have their equivalent of NERC.
“For example, Ogun State Electricity Regulatory Commission; Lagos; Kano, etc, to license power generation, transmission, and distribution. That’s what our constitution says, but what operates is the reverse.
“You can imagine if the experiential efforts of Bola Tinubu with ENRON had been allowed to thrive and not undermined by ‘federal might’, same way Jakande’s metroline was thwarted! It is well with Nigeria,” he added.
Business News
DBN Signs $61m Credit Deal With AfDB, Unveils Support Initiative Report
By Tony Obiechina, Abuja
The Development Bank of Nigeria Plc (DBN) has launched DAWN: DBN Action for Women in Nigeria, unveiled its Impact Report and presented MSME Data Assets at the seventh edition of Annual Lecture held in Abuja.
DBN, in a statement on Thursday, said while delivering a welcome address, its Managing Director and Chief Executive Officer, Dr Tony Okpanachi, said the central challenge was no longer reforms themselves but ensuring benefits reach businesses at end of the chain.
He asked how to make sure benefits reach traders in Onitsha, fabricator in Aba, farmer in Kebbi and young founder in Yaba, noting that MSMEs accounted for about half of Nigeria’s GDP and more than eight in every ten jobs, adding that when reform works for MSMEs it works for most Nigerians.
He explained that reform becomes prosperity only when entrepreneurs can act on it whether through long tenor loans to buy equipment, banks willing to take risk or skills and records needed to grow.
He said working through Participating Financial Institutions DBN provides longer term funding, partial credit guarantees through subsidiary Impact Credit Guarantee Limited and capacity building including Entrepreneurship Training Programme.
He disclosed that as at December 2025 DBN had disbursed a cumulative N1.4 trillion to MSMEs through 84 Participating Financial Institutions creating about 1.6 million jobs nationwide.
Under the new five year strategy, the Bank aims to reach more than two million MSMEs with deliberate targets for women led businesses, youth led businesses and underserved states.
On DAWN, Okpanachi said finance alone had not enabled enough women-led businesses to scale.
He said initiative brings together financing, guarantees and credit support, technical assistance, outcome linked grants and market linkages delivered through banks, microfinance institutions, fintechs, aggregators, cooperatives and direct channels.
Its priority sectors are agriculture and exports, healthcare, arts and creatives, technology and green business.
He said DAWN is about moving gender focused lending beyond intention and turning access into opportunity.
On the sidelines of the lecture DBN and African Development Bank held a signing ceremony of AfDB DBN 61 million United States dollars Gender Line of Credit development that reinforces Bank commitment to women led enterprises.
Okpanachi urged Participating Financial Institutions to extend lending into sectors and states where access to finance has been limited, policymakers and regulators to measure reform by what changes for business at end of chain and MSMEs to formalise, keep good records and use support now available.
The Vice President as Special Guest of Honour was represented by Dr Fred Iklaga Senior Technical Adviser in the Office of Special Adviser to the President on Economy.
Keynote speakers were Chief Executive Officer of MTN Nigeria, Dr Karl Toriola, and Chairman of Nigeria Sovereign Investment Authority, Dr Segun Ogunsanya.
Fireside chat featured Chief Executive Officer of Sterling Bank Abubakar Suleiman, manufacturing and trade entrepreneur Mrs Omoyemi Chukwurah and by video Kola Masha of Babban Gona.
The Secretary to the Government of Federation, represented by Augusta Warren Bekaredebo, said 2026 tax reforms would bring relief to many small businesses expressing optimism that a lot of businesses will be smiling by next year because they will be exempted from tax.
COVER
NLC Threatens Nationwide Action as Talks With FG Collapse
By Tambaya Julius, Abuja
The Nigeria Labour Congress (NLC) has threatened possible nationwide industrial action following the failure of talks with the Federal Government over workers’ welfare, petrol prices and other outstanding labour demands.
The warning came after a meeting between the government and organised labour at the Ministry of Labour in Abuja on Thursday, October 22, ended without an agreement.
The congress has given the Federal Government until Tuesday, October 27, to make meaningful progress on the issues, warning that its relevant organs would decide the next line of action if the next meeting fails to produce concrete commitments.
The NLC has also directed its affiliates, state councils and civil society allies to begin mobilising members for possible nationwide action.
In a statement issued after the meeting, the NLC Acting General Secretary, Benson Upah, expressed disappointment over what he described as the government delegation’s lack of preparedness for the negotiations.
According to the congress, organised labour presented its demands in good faith but left the meeting without any concrete commitments from the government.
The demands include a reduction in petrol prices to 2024 levels, renegotiation of the national minimum wage, implementation of agreed tax relief measures and resolution of the terms of settlement involving the Joint Health Sector Unions (JOHESU).
The congress also called for the resolution of issues raised by the Joint Public Service Negotiating Council (JPSNC) over peculiar allowances, wage awards and hazard allowances.
The NLC said the government delegation lacked the necessary authority to engage meaningfully on the issues presented by labour representatives.
“The meeting between the Federal Government and organised labour, convened at the Ministry of Labour in Abuja on 22nd October 2026, has ended without resolution,” the statement said.
It added that the Minister of Labour requested that the meeting be adjourned until October 27 to allow the government to prepare adequately for further discussions.
The preparations, according to the statement, would include bringing relevant ministers and heads of departments and agencies to the negotiating table.
The congress said it remained open to dialogue but would not accept continued delays in addressing workers’ concerns.
“We will report back to our organs, and if no meaningful progress is made on Tuesday, the relevant organs of the NLC will decide the next line of action,” it said.
The labour body urged workers and members of the public to remain calm while the negotiations continue, even as it directed its affiliates and allies to prepare for possible industrial action.
“However, we urge all affiliates of NLC and TUC; all state councils and our civil society allies to be alert and start mobilising for a possible action across the nation while we hope that the tenets of our demands are met by the government,” the statement added.
The October 27 meeting is expected to provide another opportunity for both sides to address the outstanding issues and prevent a possible escalation of the dispute.
However, the NLC’s decision to begin mobilisation suggests that tensions could rise if the next round of talks fails to produce meaningful progress.
COVER
Election Campaigns: FRSC Bars Officers from Politicians’ Escort
The Federal Road Safety Corps (FRSC) has barred its personnel from escorting politicians during campaigns for the 2027 general elections.
Zonal Commanding Officer, RS6, ACM Abimbola Owolabi, gave the directive during her maiden visit to the Cross River Command in Calabar on Wednesday.
Owolabi said patrol vehicles and sirens must not be used for political activities or private engagements, including weddings and funeral processions.
She directed officers deployed to campaign venues to focus exclusively on traffic management to prevent congestion and road crashes.
The zonal head warned personnel against leading political convoys or providing escorts for politicians, stressing that official vehicles must not be used for unauthorised purposes.


