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Electricity Act Fallout Rocks Sector—Operators Warn of Chaos Over Tariff Cuts
More states are moving to slash electricity tariffs after the Enugu Electricity Regulatory Commission (EERC) announced a new tariff order reducing Band A charges for MainPower Electricity Distribution Limited customers from ₦209 per kilowatt-hour to ₦160/kWh, effective August 1, 2025.....KINDLY READ THE FULL STORY HERE▶
The decision has sparked outrage among power generation and distribution companies, who warned that such moves could cripple the already fragile power sector. According to the Association of Power Generation Companies (GenCos), the industry is currently owed more than ₦5 trillion in unpaid invoices.
Despite the backlash, the Enugu government insisted on its decision, stressing that it followed due process before approving the new Band A tariff. The EERC argued that the revised tariff reflects the Federal Government’s subsidies aimed at cushioning electricity costs for consumers.
GenCos and Discos, however, pushed back. In a statement issued Monday, Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, warned that Enugu’s tariff order sets a dangerous precedent for other states and does not reflect the true cost of electricity generation.
States Join Enugu’s Tariff-Cut Drive
On the same day, other states with independent electricity regulatory powers signaled plans to follow Enugu’s lead. The Nigerian Electricity Regulatory Commission (NERC) recently disclosed that seven states—Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi—now control their electricity markets under the Electricity Act 2023, with Lagos, Ogun, Niger, and Plateau expected to complete transitions by September.
Officials from Ondo and Plateau confirmed they are considering tariff cuts, while Lagos said it will soon unveil its own tariff plan. Ekiti, however, noted that it would continue with the NERC-approved Multi-Year Tariff Order for now.
Discos Demand States Cover Shortfalls
Distribution companies operating in these states warned that any government implementing tariff reductions must cover the resulting revenue shortfalls immediately, rather than shifting the burden to the Federal Government—which itself still owes over ₦4 trillion to GenCos.
EERC’s Order No. EERC/2025/003 reduced tariffs only for Band A customers while leaving Bands B, C, D, and E unchanged. EERC Chairman Chijioke Okonkwo explained that the review of MainPower’s licence and tariffs justified the reduction, which he described as cost-reflective.
GenCos: Tariff Cuts Based on False Assumptions
GenCos disagreed, arguing that Enugu’s assumptions on subsidies are flawed and dangerous. Ogaji stressed that there is no Federal Government-backed subsidy to cover the ₦45 per kWh cost gap the EERC order relies on, adding:
“This tariff issued by EERC has set a precedent for all other states. From their tariff order, only ₦45 is captured for the generation cost out of ₦112. This raises critical questions about how legacy debts and liabilities will be handled under power sector decentralisation.”
Ogaji further queried whether EERC expects the Federal Government to continue subsidising its electricity market or intends to design tariffs that attract investors without federal backing.
She also highlighted that GenCos are owed over ₦4 trillion, while the Federal Government’s 2025 budget allocates only ₦900 billion for electricity support—an amount she described as grossly inadequate to cover arrears and ongoing deficits.
“The power generated by GenCos is being fully consumed,” she said, “but payments remain incomplete, and there are no workable solutions—such as cash settlements, financial instruments, or debt swaps—in sight.”
The Federal Road Maintenance Agency (FERMA) has appealed to residents of Abia State and other road users along the Aba–Azumini highway to protect the newly completed road from activities that could damage it.....KINDLY READ THE FULL STORY HERE▶
FERMA’s South-East 2 Zonal Director, Suleiman Mohammed Omonowo, issued the warning during an inspection of the project, cautioning against the burning of tyres during celebrations, which he said could damage the road surface.
He noted that destructive practices by some youths and community members often contribute to the early failure of road projects across the country.
“Our advice to road users, especially indigenes, is to protect the road from destruction. Let nobody come and destroy it or burn tyres in the name of celebration,” he said.
Omonowo said the Aba–Azumini highway was previously in a very bad condition before FERMA intervened, describing it as a death trap for commuters and residents.
He also expressed satisfaction with the quality of work done on the project, adding that drainage structures such as catch pits would help prevent flooding and extend the lifespan of the road.
According to him, the highway serves as a major link between Aba, several Abia communities, and Cross River State, carrying heavy traffic daily.
He urged local construction firms to improve on quality delivery to compete effectively with foreign contractors.
Meanwhile, the Federal Roads Maintenance Engineer in Abia State, Festus Okafor, said FERMA workers have not faced harassment or violence from residents during operations in the state.
The Nigerian Correctional Service (NCS), Yobe State Command, has declared a 30-year-old inmate wanted after he escaped following a road accident involving a prison transport vehicle.....KINDLY READ THE FULL STORY HERE▶
The incident reportedly occurred on April 13, 2026, while inmates were being conveyed from the Medium Security Custodial Centre in Potiskum to Damaturu.
In a statement issued in Damaturu, the Command’s Public Relations Officer, DSC Abdullahi Adamu, said the vehicle conveying the inmates was involved in a crash during the journey.
He said the accident happened while efforts were ongoing to rescue those affected.
The escaped inmate was identified as Dahiru Mohammed, with prison number J/1539/24, who was admitted into custody on November 29, 2024.
The Correctional Service described him as dangerous and warned members of the public not to have any form of contact with him.
It urged residents to report any useful information that could lead to his re-arrest to the nearest security agency.
Authorities also cautioned that harbouring a fugitive is a criminal offence punishable under the law.
The Federal High Court sitting in Ibadan, Oyo State, has ordered the University of Ibadan (UI) to reinstate three students suspended over their participation in a protest against tuition fee hikes.....KINDLY READ THE FULL STORY HERE▶
Delivering judgment on Wednesday, Justice Nkeonye Maha set aside the decision of the university’s Central Student Disciplinary Committee, ruling that the students were denied fair hearing during the disciplinary process.
The court held that the failure to allow the students call witnesses and present evidence violated their constitutional right to fair hearing, rendering the sanctions against them invalid.
The affected students — Aduwo Ayodele, Mide Gbadegesin, and Nice Linus — were suspended on July 14, 2025, after taking part in a protest against increased school fees approved by the university’s governing council.
Dissatisfied with the suspension, they approached the court, arguing that the disciplinary proceedings breached their fundamental rights and due process.
They asked the court to quash the suspension, reinstate their studentship, and award damages for alleged rights violations.
In her ruling, Justice Maha agreed with their arguments, stating that the university’s actions failed to meet the standards of natural justice.
Following the judgment, rights group CAPPA hailed the decision, urging the university to comply fully, reinstate the students, and issue an apology.
The group said the ruling reinforces constitutional protections for freedom of expression and serves as a warning against the suppression of student protests in tertiary institutions.
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