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FG to spend $600m annually on electricity subsidy

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The Federal Government has announced plans to introduce an annual electricity subsidy of $600m for all customers from 2025 as part of efforts to reform the power sector.

The subsidy, expected to last until 2027, aims to bridge the gap between cost-reflective tariffs and regulated electricity rates, while the government works towards eliminating the metering deficit and enhancing the financial sustainability of power distribution companies.

According to Nigeria’s Energy Compact document obtained by Sunday PUNCH, the initiative is part of the National Energy Compact and aligns with Nigeria’s broader electrification and clean energy transition plans.

Nigeria, alongside Côte d’Ivoire, Zambia, and nine other African countries, presented its energy compact at a two-day summit in Tanzania, with a focused on innovative energy solutions.

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However, the policy is a temporary measure designed to ensure affordability while the government progressively moves towards full cost-reflective tariffs.

The document noted that the subsidy might take different forms, including a flat monthly subsidy per electricity consumer or a subsidy on the first 50 kilowatt-hours consumed each month.

This approach intends to reduce the regressivity of previous subsidies, where a significant portion benefited wealthier households.

By 2027, the government plans to introduce a social tariff to protect low-income and vulnerable customers once the broader cost-reflective framework is fully implemented.

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The document noted the Federal Government’s trajectory to full cost-reflectivity included a “$600m per year subsidy in 2025 to 2027 (while metering gap is being closed), and then fully CRT except for social tariff for vulnerable customers.”

It added, “In order to decrease the regressivity of electricity subsidies, move towards a full cost reflective tariff system which includes a limited and uniform subsidy for all customers in 2025 while the metering gap is being closed. This scheme can take the form of a uniform monthly subsidy per customer, or the first 50 kWh per month being subsidised.”

A key focus of the reform is closing Nigeria’s metering gap, which currently stands at approximately seven million unmetered electricity end-users.

The government outlined a plan to install 1.5 million smart meters in 2025, four million in 2026, and 1.5 million in 2027.

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The closure of the metering gap is expected to minimise losses in the sector, improve revenue collection efficiency, and ensure that tariffs are aligned with actual consumption, thereby reducing the need for future subsidies.

The electricity sector has struggled with financial sustainability due to high technical and commercial losses, low tariff recovery rates, and liquidity constraints.

Despite efforts under the Power Sector Recovery Programme, tariff shortfalls reached N650bn in 2023 and are expected to rise further in 2024, potentially exceeding N2.2tn.

The subsidy scheme would provide temporary relief while ensuring that distribution companies meet their financial obligations to power generation companies and the Transmission Company of Nigeria.

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Osun Govt finally speaks As Court orders banks to freeze state accounts

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The Osun State Government has said it has filed an application before the Federal High Court in Lagos seeking to set aside the ex parte order restricting transactions on accounts operated by the state government over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.

The government also assured the public that it had commenced necessary legal steps to vacate the order and protect the state’s interests through a judicial review of the arbitration award.

In a statement issued on Sunday and signed by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the government described the order as having been obtained through what it called non-disclosure of material facts to the court.

According to the statement, the arbitration award Gamji sought to enforce was also allegedly affected by several irregularities, prompting the state government’s legal team to approach the Lagos State High Court to challenge the award.

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The government said the ex parte order of September 9, 2026 referenced an alleged arbitral award, but maintained that no such award was made against the state government in July 2024.

It clarified that the only arbitral award against the state government was issued in July 2026 and that the award was already being challenged by the government before the Lagos State High Court.

The government traced the dispute to a 2017 contract awarded during the administration of former Governor Adegboyega Oyetola. It said the administration rejected a variation request by Gamji, particularly over the company’s claim that the state was indebted to it in the sum of $15,982,638.22.

The matter subsequently proceeded to arbitration, which the state government alleged was improperly handled in favour of Gamji, while the state was denied a fair hearing and full participation in the process.

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The government said its legal team had already filed a suit at the Lagos State High Court on September 1, 2026, seeking to set aside the arbitral award before Gamji approached the Federal High Court.

It added that a motion on notice seeking to suspend enforcement of the award pending the determination of the suit was also filed and served on Gamji and its counsel.

According to the state government, Gamji was therefore aware that the award was being challenged before a competent court when it approached the Federal High Court to seek enforcement.

The government further alleged that Gamji failed to disclose to the Federal High Court that the validity of the award was already being challenged before the Lagos State High Court and that the company had been served with an application seeking to suspend enforcement pending the determination of the case.

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The state government disclosed that it had also filed a motion on notice seeking to set aside the September 9 order and informed the Federal High Court of the circumstances surrounding the arbitration proceedings and the pending challenge.

It, however, said it would refrain from making further comments on the merits of the case because the matter remains sub judice.

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Sad development as abductors beat up 20 corp members, reduce ransom from N50m to N5m each

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The 20 National Youth Service Corps (NYSC) members kidnapped by gunmen in Imo State have allegedly been subjected to physical ass@ult by their captors, with the kidn@ppers reportedly reducing their ransom demand to N5 million per victim.

The graduates were abducted on Thursday while travelling from Ibadan to their NYSC orientation camps in Abia and Akwa Ibom states. They were reportedly att@cked along the Owerri-Onitsha Road in Umunoha, Imo State, while travelling in two buses.

A relative of one of the victims, Alhaja Alimot Akande, said the abd¥ctors initially demanded N50 million for each victim but had now reduced it to N5 million.

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“They are still demanding N5 million. They have come down to N5 million each,” she said.

Akande also alleged that the abductors had started beating the victims, including the women.

When I spoke to my sister, they started beating them since yesterday,” she said.

Asked if the female victims were also being assaulted, she replied: “They are not sparing anybody. They are beating all of them.”

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She said one victim was also allowed to speak with his father, with the abd¥ctors reportedly monitoring the calls to assess the family’s ability to raise the ransom.

Meanwhile, the Oyo State Government said it was working with the Imo State Government and security agencies to secure the victims’ release.

Oyo State Commissioner for Information, Prince Dotun Oyelade, said the government was drawing on its experience from the recent Oriire abduction to assist efforts in Imo State.

“Oyo State Government had not and will not abandon its citizens. We will continue to work endlessly and desperately to secure the release of our children,” he said.

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Painful! Varsity VC dies 48hrs after taking office

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Tansian University, Umunya, Anambra State, has been thrown into mourning following the sudden death of its newly inaugurated substantive Vice-Chancellor, Professor Carter Dike Umeoduagu, barely 48 hours after assuming office.

Umeoduagu was formally sworn in as the substantive Vice-Chancellor of the university on Thursday, October 1, 2026, marking the commencement of his tenure.

However, the professor reportedly took ill on Saturday, October 3, two days after his assumption of office, and subsequently died.

His sudden death has sent shock waves through the university community, particularly coming at a time when the institution has been facing leadership challenges.

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The development is also coming amid recent controversy over the leadership of the university, including disputes surrounding the tenure of the former Vice-Chancellor, Professor Eugene Okoye Nwadialor, and the emergence of an acting leadership structure.

The death of Umeoduagu, coming almost immediately after his formal assumption of office, has added a tragic dimension to the university’s recent leadership crisis.

Details of the circumstances surrounding his illness and death were not immediately available as of the time of filing this report.

The university community, academics, colleagues, family members and associates are expected to mourn the deceased academic and administrator, whose tenure as Vice-Chancellor ended almost as soon as it began.

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