“Government has not improved on the wheeling capacity of TCN (Transmission Company of Nigeria) as provided in the agreement. The government has not given them cost reflective tariff as provided in the agreement.”
Business
Power generation drops, Discos, FG battle for control
The planned takeover of three power distribution companies by Fidelity Bank and the restructuring of two others by the Federal Government have led to an intense battle between the Discos and the government.
The takeover of the three Discos by Fidelity Bank is being backed by the Federal Government through the Bureau for Public Enterprise.
This came as findings show that Discos have continued to launch fresh legal battles with a view to preventing their takeover by the government and the bank.
However, industry stakeholders are divided over the development with both parties receiving commendations and condemnations from power sector experts.
While industry stakeholders gave diverse views on the development, it was observed on Monday that power generation on the national grid dipped by about 141.3 megawatts when compared to what was recorded on the grid on July 9, 2022.
Figures obtained by our correspondent from the Federal Ministry of Power showed that power generation rose to a peak of 3,992.6MW on July 9, 2022, but the peak generation on July 10, 2022 fell to 3,908.8MW.
This dropped further on Monday, as data from the FMP showed that power generation on the grid as at 6am on July 11, 2022, was 3,851.31MW, indicating a drop of 141.3MW when compared to figures posted on July 9, 2022.
Meanwhile, industry experts have raised diverse concerns over the planned takeover and restructuring of some power distribution companies as recently announced by the Federal Government.
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Last Tuesday the Federal Government announced the planned takeover of Kano, Benin and Kaduna electricity distribution companies by Fidelity Bank Plc after the bank initiated action to take over the boards of the three Discos.
It also announced through the Bureau of Public Enterprises that with the takeover of Ibadan Disco by the Asset Management Corporation of Nigeria, the BPE had obtained approval from NERC to appoint an interim managing director for the distressed power firm.
The government had further stated in last Tuesday’s restructuring notice that it was restructuring the management and board of Port Harcourt Disco to forestall the imminent insolvency of the utility. The notice was signed by the Director-General, BPE, Alex Okoh; and Executive Chairman, NERC, Sanusi Garba.
But in reaction to the announcement, the receiver/manager’s nominee of Integrated Energy Distribution and Marketing Company had argued on Wednesday that it was the legal and beneficial owner of 60 per cent (controlling and managing) shareholding interests in the Ibadan Electricity Distribution Company.
Also, the management of the Benin Electricity Distribution Company Plc had argued on Wednesday that there was no legal basis for the takeover of the company following the purported activation of the call on its collateralised shares by Fidelity Bank.
Commenting on the development on Monday, a member of the National Technical Investigative Panel on Power System Collapses (June 2013), who doubles as the President, Nigeria Consumer Protection Network, Kunle Olubiyo, told our correspondent that the move by the government should be commended.
He explained that ordinarily, the licensees had a 10-years tenure, as the mid-term review ought to have taken place five years into the post-privatisation exercise.
“This was not done across board,” Olubiyo stated.
He added, “The open book review, service level agreement, mass metering, investment in network improvement and overhauled, governance structure, the so-called (Discos) failed in all benchmarked global best practices and Key performance indicators.”
“As against investments in the immediate, medium and long term, what we saw was rent-seeking, profiteering and lack of fiscal responsibility and the much-needed discipline.”
Olubiyo noted that no sector could survive where there were no sanctions for impunity and no consequences for infractions.
“In the prevailing circumstances, we are on the same page with relevant stakeholders in the present efforts to clean up the mess and free our economy held by its jugular by the non-performing utilities,” the NCPN president stated.
In his submission on the matter, another power sector expert, Prof. Yemi Oke, observed that in 2009, the defunct Power Holding Company of Nigeria generated about 3,800 megawatts of electricity.
“Today, after all the noise about privatisation, the generation is 2,400MW,” he stated.
Oke added, “In 2009 NEPA (National Electric Power Authority)/ PHCN had only one MD/CEO (managing director/chief executive officer) managing the sector.
“Today and post-privatisation there are over 25 MDs/CEOs helping themselves from the revenue accruing from a paltry generation of 2,400MW. And they are Crying about illiquidity.
“Where will they have the money to service this inefficiency? 25 MDs/CEOs and over 100 executive directors etc, depending on 2,400MW. This is the problem: jobs for the ‘boys’! We’re in a deep, serious crisis as far of energy sector is concerned (petroleum, gas and power)!”
The professor stated that at least five Nigerian banks might collapse under heavy burdens of power-sector acquisition financing/lending.
He said three banks had gone already, adding that “one just revealed itself by this move.”
Oke added, “80 per cent of the Discos are technically insolvent, hence the problems of the power sector may continue. We will continue to experience an average of five to six national grid/system collapses per annum.”
The energy expert, however took a swipe at the BPE, describing the agency as incompetent in the handling of the power sector.
He said, “It suits their incompetence and ignorance of what they profess they know how to do best that Nigeria and Nigerians are worst-off in their post-power sector privatisation.
“They should be happier that a lot more industries have closed or been shut-down due to their breach of national confidence reposed in them. At least, no electricity to power industries.
“BPE should recall that this is a privatisation designed, midwifed and delivered by the BPE. Let them sell the remaining NDPHC (Niger Delta Power Holding Company) assets for ‘political patronages’ as usual. They lack moral basis to talk down on Discos and their owners.”
Also speaking on the matter, a public private partnership consultant, who took part in process for the privatisation of Nigeria’s power sector, Joe Tsavsar, argued that the government had not fulfilled most of its part in the agreements reached with power firms since the sector was handed over to private investors in November 2013.
He insisted that the government had not performed its obligations to the investors and must share in the blame of poor performance by operators in the industry.
Tsavsar said, “Government has not given the so called Discos the MW of electricity as provided in the agreement. The Discos can’t give what they are not given. Government has not given the Gencos (generation companies) gas to produce power as provided in the agreement.
Aviation
Air Peace suspends flights nationwide over NiMet strike
Air Peace suspends flights nationwide over NiMet strike
Air Peace has suspended all its flight operations across the country due to the ongoing strike by the Nigerian Meteorological Agency (NiMet).
The airline said in a statement on Wednesday that it was also suspending operations due to the unavailability of QNH (hazardous weather) reports required for safe landings.
“Due to the ongoing NiMet strike and the unavailability of QNH (hazardous weather) reports required for safe landings, Air Peace has suspended all flight operations nationwide until the strike is over,” Air Peace said.
“Your safety is our top priority. We appreciate your understanding and will share updates as the situation unfolds.”
The airline had earlier announced that the NiMet strike could lead to flight delays and cancellations across its network.
Air Peace added that it was monitoring the situation and working with relevant stakeholders to minimise the impact on customers’ travel plans.
Employees of NiMet commenced a nationwide indefinite strike over welfare issues on Wednesday.
Some of the issues raised involve “NiMet’s refusal to negotiate or implement agreed financial allowances and unresolved entitlements,” including wage awards, peculiar allowances, and outstanding payments from the 2019 minimum wage.
They also accused the management of the agency of withholding important documents, ignoring requests for inclusion of omitted staff in past payments, and neglecting key training programmes in favour of executive retreats.
Business
Nigeria’s gas production increases by 15.6% to 227,931.65 mscf
Nigeria’s gas production increases by 15.6% to 227,931.65 mscf
Nigeria’s gas output has increased 15,6 percent month-on-month, MoM, to 227,931.65 million standard cubic feet, mscf, in March 2025.
But on year-on-year, YoY basis, the nation’s gas output recorded a marginal increase to 227,931.65 mscf in March 2025, from 198,353.62 mscf, recorded in the corresponding period of 2024.
Data obtained from the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Gas Production Status reports indicated that of the total of 227,931.65 mscf produced in March 2025, 119,552.75 mscf was associated while 108,378.90 mscf was non-associated gas.
Associated gas is extracted in the process of producing crude oil while non-associated gas is produced without crude oil after much investment, exploration and development.
The Ministry of Petroleum Resources (Gas), which is directly involved in the development of policies, targeted at increasing investment in the sector said efforts have been made to increase investment and production of gas in Nigeria.
Similarly, in its recent report obtained by Vanguard, the Nigerian LNG Limited stated: “We are fully committed to expanding our operations with the NLNG Train 7 Project, which will boost our production capacity by 35%, increasing from 22 Million Tonnes Per Annum (mtpa) to 30 mtpa. This project underscores our role as a key player in the global LNG market and positions Nigeria as a top-tier supplier of LNG, leveraging its vast proven gas reserves of 202 trillion cubic feet (the 9th largest globally).
Vanguard
Business
Marketers count losses as NNPC slashes petrol price
Marketers count losses as NNPC slashes petrol price
Petroleum product marketers have expressed frustration over financial losses following the Nigerian National Petroleum Company Limited’s (NNPC) recent reduction in the pump price of Premium Motor Spirit (petrol).
On Easter Monday, NNPC retail outlets across major cities adjusted their pump prices, with Lagos stations dropping from N925 to N880 per litre, while Abuja saw a similar drop to N880. In Kano, the price was revised from N950 to N935 per litre.
The unexpected price cut comes just days after the Dangote Refinery reduced its ex-depot price from N865 to N835 per litre—further intensifying pricing pressure on independent marketers who had stocked up at previous, higher rates.
The $20bn refinery also directed its partners like MRS, Heyden, and Ardova to sell a litre of petrol at the rate of N890 instead of N920 in Lagos, N900 in the South West, N910 in the South-South, and N920 in the North East.
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This newspaper observes that the new NNPC prices in Kano, Abuja, Port Harcourt and Lagos are N10-N15 lower than that of the Dangote refinery, signalling another price war between the two companies.
Our correspondent reports that some NNPC filling stations are still selling at the old rate. But marketers said these stations were given the liberty to exhaust old stock before adjusting to the new prices.
In an interview with our correspondent, the National Vice President of the Independent Marketers Association of Nigeria, Hammed Fashola, confirmed the price reduction, stressing that filling station operators were losing money.
He told our correspondent that NNPC Retail sent a memo to its outlets to effect the new prices.
“It is confirmed that NNPC has reduced PMS prices. It is now N880 per litre in Lagos. They sent messages to their retail outlets. Some of them have already put the price at N880. However, they allow those having old stock to continue selling at the old rate. Some are still selling at N910.
“Those are the ones that still have their old stock. So, the same thing applies to independent marketers. Those that have their old stock are still trying to see how they can dispense it,” he stated.
While acknowledging that the fluctuation in fuel prices is one part of deregulation, Fashola declared that marketers are losing money.
“The price reduction is a welcome development, but at the same time, it has a negative impact on the side of the marketers. We are losing money. That’s just the truth. We are losing money. That’s the bitter truth,” he said.
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According to him, the price cuts are good for the masses, but marketers pay the price.
“On the side of the masses, Nigerians are better for it. People are getting cheaper fuel now, which is good. That’s the beauty of deregulation that we are talking about. There’s nothing anybody can do about it. But marketers are the ones bearing the losses, seriously.
Asked if there is any way to reduce the losses, he replied, “On the part of marketers, what we can do is just to try as much as possible to try and sell. We will reduce prices to a level that, at least, our losses will not be too much. So, you will be able to get rid of your old stock before you go to the market to buy at the new rate and start selling at the new rate.
On whether the petrol price could drop to N800 or N700 soon, Fashola refused to make projections.
“I don’t want to predict that. You know, two major factors determine this – the crude oil price and our exchange rate. So, I don’t want to predict the price. All these things have their implications. If the crude oil comes down to something like $50 per barrel, it has its own implications for our economy. It will affect the government revenue. At the same time, inflation and all that are also there. So, I don’t want to predict that,” he stated.
Recall that the Dangote refinery resumed price cuts after the Federal Government directed that the naira-for-crude deal should continue indefinitely.
Marketers count losses as NNPC slashes petrol price
(Punch)
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