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Power Palaver: Nigerian Breweries, varsities get permits to generate electricity

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Amid the high cost of electricity and incessant power fluctuations, Nigerian Breweries Plc has got approval to generate captive power in its offices located in Abia, Oyo, and Enugu states.

Cumulatively, Nigerian Breweries is generating up to 41MW in the four stations.

The Nigerian Electricity Regulatory Commission disclosed this in a report, saying the permits were granted in the third quarter of 2024.

Following the signing of the Electricity Act 2023, many companies appear to be leaving the national grid to generate their own power.

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According to the NERC, captive power generation permits are issued to entities that intend to own and maintain power plants exclusively for their consumption. This means there is no sale of electricity generated from the plant to any third party.

The commission said it approved the grant of captive power generation permits to 11 applicants with a gross capacity of 63.36 megawatts.

Also, six Nigerian universities and the Nigerian Defence Academy were given permits to generate captive electricity.

The University of Abuja got a permit to generate 3MW; University of Calabar & Teaching Hospital, Cross River State is generating 7MW; University of Agriculture Micheal Okpara, Umetuke, Abia State, 3MW; University of Maiduguri & Teaching Hospital, Borno State, 12MW; Federal University of Agriculture, Abeokuta Main Campus, Ogun State, 3MW; and the Federal University Gashuwa, Yobe State, 1.50MW.

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The Nigerian Defence Academy, a military university based in Kaduna got NERC’s nod to generate 2.50MW of electricity.

Last year, the Minister of Power, Chief Adebayo Adelabu, disclosed that the Federal Government had approved electricity subsidies for tertiary education and health institutions to address their concerns following the removal of subsidies in areas categorised under Band A feeders.

After the Federal Government removed subsidies from customers in Band A and upgraded their daily electricity supply to a minimum of 20 hours daily, universities and public hospitals cried out that their bills had skyrocketed.

The College of Medicine of the University of Lagos and the Lagos University Teaching Hospital cried out over what they described as an outrageous electricity bill charged by the Eko Electricity Distribution Company.

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The institutions said they were jointly presented with a bill of about N280m for May instead of the less than N100m they used to pay.

The monthly bill given to UNILAG jumped from N180m to N300m.

The Federal University of Technology, Akure had its bill raised from N20m to N60m by the Ibadan DisCo.

At the University of Benin, the tariff was hiked from N80m monthly to N250m.

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The Vice-Chancellor of Babcock University, Ogun State, Prof. Ademola Tayo, said in July that the institution paid N300m as electricity tariff in May, lamenting that the high electricity tariff was a great threat to quality education in Nigeria.

Aside from the high cost of energy, many Nigerian institutions are also battling low supply and fluctuations coupled with repeated grid collapses.

With permits to generate captive power, Nigerian Breweries and academic institutions will have a stable power supply to run their daily activities.

Within the period under review, the commission certified seven Meter Service Providers, five-meter installer companies, and two-meter manufacturers.

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The commission also issued 22 permits for Meter Asset Providers within the period even as it issued 50 orders to guide the activities of licensees.

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Tinubu defends FCTA’s TSA exit, says policy fast-tracked Abuja projects

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President Bola Tinubu on Monday defended his administration’s decision to remove the Federal Capital Territory Administration from the Treasury Single Account, saying the policy has provided the financial flexibility needed to accelerate infrastructure development across Abuja.

The President also dismissed claims that the executive was interfering in the affairs of the judiciary through the provision of infrastructure, insisting that supporting the justice sector is a constitutional responsibility of government.

Tinubu spoke while inaugurating the new Office Annex of the Body of Benchers and 10 units of four-bedroom staff quarters at the Nigerian Law School in Bwari, Abuja.

He was represented at both events by the Secretary to the Government of the Federation, Dr George Akume.

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Speaking on the decision to exempt the FCTA from the TSA, Tinubu said the move had enabled the administration to execute projects more efficiently by eliminating bureaucratic bottlenecks.

He said, “When we pulled the FCT Administration out of the Treasury Single Account, there were sceptics. There were those who questioned the wisdom of that financial liberation.

“But we did it because we knew that local administration must have the liquidity, the speed and the corporate flexibility to interface with financial institutions and deliver critical projects without bureaucratic strangulation. Today, the results are glaring.”

Tinubu said the visible transformation in the Federal Capital Territory had justified the policy, crediting the Minister of the Federal Capital Territory, Nyesom Wike, for delivering on the administration’s development agenda.

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“When I appointed Minister Wike, I gave him a clear mandate to transform Abuja into a modern, functional and world-class capital city.

“Over the last three years, the scale of infrastructural development, urban renewal and project delivery in the FCT has been unmatched,” he said.

The President also commended Wike for resolving the long-standing land documentation challenge facing the Nigerian Law School by facilitating the issuance of its Certificate of Occupancy after years without a formal title.

At the inauguration of the Body of Benchers’ Office Annex, Tinubu described the project as a demonstration of his administration’s commitment to strengthening the rule of law, democratic governance and institutional independence.

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Responding to criticisms that the executive was encroaching on the independence of the judiciary by constructing facilities for the legal community, the President rejected the claim.

“Let me be absolutely clear: the provision of infrastructure for the legal community and the judiciary is not an interference in the independence of another arm of government.

“Rather, it is a constitutional and collaborative duty of the executive to ensure that those who interpret and uphold our laws are provided with an environment that fosters operational efficiency and excellence,”he said.

At the Nigerian Law School, Tinubu said quality infrastructure remained essential to producing competent legal professionals, stressing that the government was committed to improving learning and living conditions within the institution.

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“We cannot build a world-class legal system with dilapidated infrastructure,” he said.

The President described the newly inaugurated staff quarters as the first phase of broader investments at the Law School, disclosing that the Federal Government was funding the construction of a new auditorium, additional student hostels and the digitisation of the institution’s academic and administrative operations.

He added that similar interventions were ongoing across the justice sector, including the construction of the Abuja Division of the Court of Appeal, magistrates’ courts and residential quarters for judges.

According to him, the projects reflected the administration’s determination to strengthen institutions that sustain democracy rather than merely constructing physical infrastructure.

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“We promised not just to govern, but to reform. We promised to rebuild the broken structures of our institutional foundations,” Tinubu said.

He maintained that the projects demonstrated the Federal Government’s commitment to translating its promises into measurable results through sustained investment in critical national institutions.

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FG spends N358.3bn on electricity subsidy in Q1 2026 – NERC

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The Federal Government incurred an electricity tariff subsidy of N358.32 billion in the first quarter of 2026 as it continued to bridge the gap between cost-reflective electricity tariffs and the rates paid by consumers, according to the latest report by the Nigerian Electricity Regulatory Commission (NERC).

In its First Quarter 2026 report released on Monday, NERC said the subsidy represented a 14.44 per cent decline from the N418.79 billion recorded in the fourth quarter of 2025.

The Commission attributed the reduction mainly to lower electricity offtake by distribution companies (DisCos), rather than improvements in tariff recovery.

NERC explained that because electricity tariffs remain below cost-reflective levels, the Federal Government continues to subsidise the difference between the actual cost of power generation and the approved tariffs charged to consumers.

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Under the current Distribution Companies’ Remittance Obligation (DRO) framework, the subsidy covers part of the generation costs payable by DisCos to the Nigerian Bulk Electricity Trading Plc (NBET), while the Federal Ministry of Finance settles the outstanding balance.

According to the report, electricity generation companies invoiced a total of N689.72 billion for power supplied to the 11 electricity distribution companies during the quarter. However, only N331.40 billion was billed to the DisCos under the DRO arrangement, leaving the Federal Government to cover the remaining N358.32 billion.

NERC said the subsidy accounted for 51.95 per cent of the total generation invoice during the period, compared with 52.03 per cent in the preceding quarter.

“The key driver of this reduction in the Federal Government’s subsidy obligation is the decrease in energy offtake by the DisCos by 8.56 per cent between the fourth quarter of 2025 and the first quarter of 2026,” the Commission stated.

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The report also showed that the 11 DisCos collected N597.56 billion out of the N756.93 billion billed to customers during the quarter, representing a collection efficiency of 78.95 per cent, slightly below the 79.36 per cent recorded in the previous quarter.

Among the distribution companies, Ikeja Electric recorded the highest collection efficiency at 90.0 per cent, followed by Eko DisCo with 89.64 per cent, Benin DisCo with 85.16 per cent, Port Harcourt DisCo with 81.22 per cent, and Abuja DisCo with 80.90 per cent.

Kaduna DisCo recorded the lowest collection efficiency at 45.81 per cent.

NERC noted that while Jos, Kaduna, Kano, Port Harcourt and Benin distribution companies improved their collection efficiencies compared with the previous quarter, the remaining six DisCos recorded declines, with Enugu DisCo posting the sharpest drop.

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Tinubu meets Alia, Suswam behind closed doors as Benue crisis deepens

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President Bola Tinubu is currently in a private meeting with Benue State Governor Hyacinth Alia and former governor, Senator Gabriel Suswam, at the Presidential Villa in Abuja.

The Monday meeting is taking place at a time of rising political tension in the North-Central state.

No official details have been released, as discussions are ongoing behind closed doors.

The engagement comes amid growing divisions within the Benue chapter of the ruling All Progressives Congress (APC), where Governor Alia and allies of the Secretary to the Government of the Federation (SGF), Senator George Akume, are reportedly struggling for control of the party structure ahead of the 2027 elections.

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It also follows recent political shifts in the state, with Senator Suswam’s name surfacing after the APC senatorial primaries as a notable figure ahead of the next election cycle.

While it remains unconfirmed whether the state’s political crisis is on the agenda, the timing of the meeting has fueled speculation that the Presidency may be stepping in to calm tensions, reconcile rival blocs, and encourage unity among key political actors in the state.

As of the time of filing this report, the Presidency had not released any official statement on the outcome of the discussions.

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