Business

Power generation drops, Discos, FG battle for control

Published

4 years ago

July 12, 2022

Chairman/CEO, NERC,Engr. Sanusi Garba,

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.

“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.”

Related Topics:Discos Featured FG NERC Sanusi Garba

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FRSC Boss: Tinubu’s CNG, EV Drive Creating Jobs, Attracting Investment

Published

9 hours ago

August 3, 2026

Trends Admin

FRSC Boss: Tinubu’s CNG, EV Drive Creating Jobs, Attracting Investment

President Bola Tinubu’s ambitious transition to Compressed Natural Gas (CNG) and Electric Vehicles (EVs) is already attracting fresh investments, creating new employment opportunities and laying the foundation for a cleaner, safer and more sustainable transport system, the Corps Marshal of the Federal Road Safety Corps (FRSC), Shehu Mohammed, has said.

Speaking at the 2026 Nigeria Auto Industry Summit (NAISU) organised by the Nigeria Auto Journalists Association (NAJA), Mohammed described the Presidential CNG and EV Initiative as a game-changing policy capable of reshaping Nigeria’s automotive and transportation landscape while stimulating industrial growth and youth employment.

The FRSC boss said the initiative aligns with the United Nations Sustainable Development Goals (SDGs), particularly those promoting climate action and sustainable transportation, while commending President Bola Tinubu for the bold reforms and for assigning the corps a strategic role in the programme’s implementation.

“This initiative has brought in so many investments. We have assembly plants producing electric vehicles and CNG vehicles, companies manufacturing CNG cylinders and conversion kits, and new technology that is creating opportunities for our youths,” he said.

According to him, the initiative is expected to generate thousands of jobs while positioning Nigeria as a leading destination for green mobility investments in Africa.

“Really, it is a massive investment coming into Nigeria, and it is producing massive jobs for the unemployment challenge we have,” he added.

Mohammed also linked the administration’s transport agenda to ongoing infrastructure projects, including the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Super Highway, noting that the projects would improve connectivity and support a safer, more efficient transport network.

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He expressed confidence that the reforms would help Nigeria achieve the United Nations target of providing “a safe, accessible, affordable, reliable and sustainable transport system for all Nigerians by 2030.”

On road safety, the Corps Marshal stressed that reducing road crashes and fatalities requires collective action rather than relying solely on the FRSC.

“Road safety should not be left to the FRSC alone. It is a collective responsibility involving government, communities and every Nigerian,” he said.

While noting that the corps has sustained public enlightenment campaigns for over three decades, Mohammed said greater participation from state governments, local councils, traditional institutions and community leaders is essential to changing road users’ behaviour.

He disclosed that the FRSC has expanded its awareness campaign beyond motor parks to grassroots town hall meetings, enabling the agency to engage drivers, passengers and community stakeholders more directly.

“When you see a bad driving culture, stop the person and caution him. Let him be embarrassed. Road safety is everyone’s responsibility,” he said.

The Corps Marshal expressed concern over persistent traffic violations such as speeding, overloading and the dangerous practice of conveying passengers alongside goods and livestock, warning that such behaviours remain major causes of fatal crashes.

He also urged passengers to challenge reckless drivers, particularly those who exceed speed limits, saying public intervention could save lives.

Mohammed commended NAJA and the media for their sustained support for the FRSC’s road safety campaigns and called for deeper collaboration with journalists to achieve the global target of cutting road traffic crashes, injuries and fatalities by 50 per cent before 2030.

Speaking on the legacy he hopes to leave, the FRSC boss said his priority is to build a technology-driven, people-focused organisation anchored on professionalism, collaboration and excellent service delivery.

“The legacy I want to leave is partnership, collaboration and bringing out the best in FRSC personnel to serve Nigerians and further enhance the image of the corps,” he said.

FRSC Boss: Tinubu’s CNG, EV Drive Creating Jobs, Attracting Investment

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Lanre Shittu Motors Leads Drive to Steer Lagos Students Away from Crime, Donates books to public Schools

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9 hours ago

August 3, 2026

Trends Admin

Students of St. Joseph Senior Secondary School Surulere, Lagos, receiving the books

Lanre Shittu Motors Leads Drive to Steer Lagos Students Away from Crime, Donates books to public Schools

Lanre Shittu Motors is expanding its investment in youth development beyond skills acquisition, launching a major education campaign aimed at steering thousands of Lagos secondary school students away from financial crime through value-based learning and character development.

In partnership with the author of Clean Hands, Bright Future: A Youth Guide to Avoiding Financial Crime in Africa, the foremost automotive company has begun distributing the book to 200 public secondary schools across Lagos State, with more than 150 schools already reached in the first phase of the initiative.

The campaign, which began at Kuramo Senior College and Victoria Island Senior Secondary School, seeks to equip students with a clear understanding of the dangers of fraud, cybercrime, identity theft, examination malpractice and other financial crimes, while promoting integrity, hard work, ethical leadership and responsible citizenship.

Author of the book, Mr. Adedayo Aluko, said the project was inspired by the alarming rise in financial crime among young people and the need to intervene early through education.

“The rate of financial crime among youths is becoming increasingly alarming. We believe education is one of the most effective tools to prevent crime. The message of the book is simple: crime does not pay, and with clean hands, every young person can build a brighter future,” Aluko said.

He explained that the initiative goes beyond book distribution, with plans to return to beneficiary schools for interactive enlightenment sessions and career talks to reinforce the message of integrity.

According to him, the book simplifies over 100 forms of financial crimes, helping students understand offences that many young people unknowingly become involved in. Rich illustrations and practical examples were deliberately included to engage students and make the lessons memorable.

Aluko commended Lanre Shittu Motors for supporting the project, describing the Managing Director of the company, Mr Taiwo Shittu, as a long-standing advocate of youth empowerment and education.

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“Mr. Taiwo Shittu believes there is no shortcut to success. During the flag-off, he personally handed copies of the book to students and encouraged them to embrace hard work, education and skill acquisition as the true pathways to success.

Speaking on the initiative, the LSM MD, Mr. Taiwo Shittu, said the company’s decision to sponsor the distribution reflects its belief that preventing crime begins with shaping values at an early age.

“Young people are the future of our nation. By investing in character development and educating students about the consequences of financial crime, we are helping to build responsible citizens who will contribute positively to society.

“At Lanre Shittu Motors, we believe integrity, education and hard work remain the surest foundations for lasting success,” he said.

Shittu noted that the company’s strong culture of corporate social responsibility was inherited from its founder and his father, the late Alhaji Rasak Olanrewaju Shittu.

He said the late automotive icon instilled in his children and employees the enduring values of compassion, community service and giving back to society, a legacy that continues to shape Lanre Shittu Motors’ investment in education, youth development and other impactful social initiatives.

Published in May 2026 and endorsed by the Chartered Institute of Bankers of Nigeria (CIBN), Clean Hands, Bright Future, has been described as a practical guide for young people navigating increasing social and economic pressures.

The ongoing distribution programme underscores Lanre Shittu Motors’ commitment to corporate social responsibility and its determination to inspire a generation that chooses integrity over shortcuts and honest enterprise over criminality.

Lanre Shittu Motors has over the years maintained a strong record of investing in youth development through skills acquisition and capacity building initiatives.

The company has consistently provided opportunities for young Nigerians to acquire technical and vocational skills in automotive engineering, vehicle maintenance and related fields through internship, apprenticeship and industry training programmes.

It has also supported educational and youth empowerment initiatives aimed at preparing young people for productive careers, reinforcing its belief that equipping youths with employable skills remains one of the most effective ways to reduce unemployment, discourage crime and promote sustainable national development.

Lanre Shittu Motors Leads Drive to Steer Lagos Students Away from Crime, Donates books to public Schools

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Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns

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2 days ago

August 1, 2026

Trends Admin

Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns

The Chairman of the Auto and Allied Sector Group of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Femi Eguahide, has warned that policy inconsistencies, regulatory bottlenecks and weak coordination between the public and private sectors could derail Nigeria’s clean mobility ambitions, urging the Federal Government to deepen collaboration with industry stakeholders to accelerate the transition to Compressed Natural Gas (CNG) and Electric Vehicles (EVs).

Speaking at the 3rd Nigeria Auto Industry Summit in Lagos on Thursday, Eguahide said the success of the Federal Government’s clean mobility agenda would depend on sustained stakeholder collaboration, policy consistency and the removal of operational challenges slowing investment and implementation.

The summit, organised by the Nigeria Auto Journalists Association (NAJA) under the theme, “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” brought together policymakers, regulators, automobile manufacturers, financiers, transport operators, researchers, safety agencies and development partners to chart a roadmap for accelerating Nigeria’s transition to cleaner transportation.

Eguahide acknowledged the Federal Government’s commitment to alternative energy solutions through the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), but stressed that translating policy into tangible results would require stronger coordination between government institutions and private investors.

According to him, the automotive industry remains a critical driver of industrialisation, job creation and economic growth, making it imperative for government agencies to work closely with manufacturers, assemblers, financiers and technology providers to create a more predictable and investment-friendly operating environment.

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He said effective policy implementation must be backed by continuous stakeholder engagement capable of resolving challenges surrounding vehicle conversion, local manufacturing, infrastructure development, financing and technology deployment.

Eguahide maintained that Nigeria possesses enormous potential to build a globally competitive clean mobility ecosystem, but cautioned that fragmented policies and institutional inefficiencies could slow the country’s progress if left unresolved.

He therefore urged government agencies to deepen engagement with the organised private sector to develop practical solutions that would accelerate the rollout of CNG refuelling infrastructure, EV charging networks and local automotive production.

Earlier, the Federal Government reaffirmed its commitment to expanding Nigeria’s clean mobility ecosystem through increased investment in infrastructure, local manufacturing and strategic partnerships.

Speaking on behalf of the Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Barrister Ismaeel Ahmed, the Initiative’s Chief Compliance Officer, Engr. Zayyanu Tamberi Yabo, said the programme had evolved into a key pillar of President Bola Tinubu’s transport and energy reform agenda.

According to Ahmed, the Presidential Initiative was established not merely to promote alternative fuels but to build an integrated ecosystem covering infrastructure development, investment, vehicle conversion, local manufacturing, technical capacity building and consumer confidence.

“Our approach from the beginning has been to build the foundations of a sustainable industry rather than pursue isolated interventions,” he said.

He disclosed that certified CNG conversion centres had expanded significantly across the country over the past two years, while new refuelling stations were being developed through public and private sector investments.

Ahmed added that vehicle conversions continue to rise as commercial transport operators and private motorists increasingly embrace CNG because of its lower operating costs.

He also highlighted partnerships with financial institutions, energy companies and automobile manufacturers aimed at improving access to financing and accelerating the adoption of clean mobility technologies.

Despite the progress, he identified infrastructure expansion, consumer financing, local manufacturing capacity, technical training, research, innovation and standardisation as priority areas requiring sustained attention.

In his welcome address, NAJA Chairman Theodore Opara described the summit as a strategic platform for shaping the future of Nigeria’s automotive industry.

He said reforms introduced by the Tinubu administration had created fresh momentum for CNG, electric vehicles and local automotive manufacturing, adding that stronger collaboration among government, industry players and the media would be critical to sustaining the gains.

Also speaking, the Director-General of the Standards Organisation of Nigeria (SON), Dr. Ifeanyi Chukwunonso Okeke, represented by Engr. Olalekan Omoniyi, said strict compliance with internationally recognised standards would determine the success of Nigeria’s transition to EVs and CNG-powered transportation.

He disclosed that SON had developed more than 80 Nigerian Industrial Standards for CNG vehicles and equipment, as well as 87 additional standards and the National Nigeria Guideline (NNG 1214:2024) for CNG vehicle conversions.

The SON boss warned against the proliferation of uncertified conversion centres and substandard equipment, urging mandatory certification for imported and locally assembled EVs, CNG vehicles, conversion kits and charging infrastructure.