General
ATC&C Losses of 11 DisCos Leap to 51%—Agusto
By Modupe Gbadeyanka
In 2020, the 11 electricity distribution (DisCos) operating in Nigeria recorded aggregate technical, commercial and collection (ATC&C) losses of 51 per cent, higher than 45 per cent in 2019.
The rise in ATC&C losses was largely due to the impact of the COVID-19 pandemic, a report by a local rating agency, Agusto & Co, stated, adding that this high loss level remains one of the many reasons for the kickback from electricity consumers on tariff increases, especially in the absence of a significant and immediate improvement in power supply.
The firm said last year, the energy companies only billed for 74 per cent of the energy received from the transmission company, lower than the 81 per cent reported in the prior year.
Billing efficiency, which has historically been impaired by a low metering rate and energy theft, with only 37 per cent of registered electricity customers metered in 2020, was severely impacted by the global health crisis, it added.
Agusto said it believes the impact of the pandemic was more visible amongst consumer groups with post-paid meters and estimated bills given that the social distancing rules and movement restrictions established to curb the spread of the virus impaired the physical billing process. Collection efficiency also fell marginally to 66 per cent from 68 per cent one year prior.
Since the privatisation exercise that commenced in 2013, the electric power industry in Nigeria has remained fraught with many of the same challenges ranging from unreflective tariffs to high loss levels, obsolete infrastructure, weak policy implementation and gas shortages. All of these have culminated in a weak and erratic power supply and dependence on self-generation by many businesses and households.
“These challenges have not only weakened the ability of operators to meet electricity demand but also threaten their financial viability, with significant implications for the fiscal health of the country.
“Despite the series of amendments to the tariff structure, cash flows from MYTO (the Multi-Year Tariff Order) have remained insufficient to fully cover the costs of electricity supplied.
“The fear of the impact of a ‘rate shock’ on consumers and the accompanying loss of political capital has prevented the effective implementation of necessary amendments that will align the MYTO’s assumptions with economic realities. Electricity has thus consistently been sold at a discount, with end-user electricity tariffs much lower than the cost of electricity supplied,” a part of the report said.
“The shortfall from unreflective tariffs has been borne in large parts by the Federal Government of Nigeria (FGN) through multiple intervention funds and payment assurance facilities from the Central Bank of Nigeria (CBN) totalling close to N2 trillion ($4.9 billion) as at the end of 2020, equivalent to c.6 per cent of CBN’s balance sheet.
“Despite this level of intervention, the generating companies had estimated receivables of over N400 billion in 2020 alone. Whilst the interventions have been central in ensuring the profitability of operators along the industry’s value chain, they remain insufficient and unsustainable,” it added.
More recently, there have been notable efforts by the primary regulator – NERC – to minimise the challenges faced by operators in the Industry.
In particular, tariffs have been raised to near cost-reflective levels and adjusted to match consumption via an initiative dubbed Service Reflective Tariffs (SRT). The new tariff model as the name indicates is expected to reflect and match the quality of service received by the ultimate consumers of electricity.
Distribution companies will therefore discriminate in the application of tariffs; consumers who enjoy longer daily supply will be expected to pay higher rates and vice versa.
The SRT like other MYTO models has key estimates (and projections) for macroeconomic and industry-specific indicators including inflation, exchange rates and electricity generation.
Other company-dependent factors considered in the determination of tariffs include the amount of electricity received and the aggregate technical, commercial and collection (ATC&C) losses. Ultimately, tariff shortfalls (the difference between end-user tariffs and cost-reflective tariffs) are expected to taper off by the end of 2022, with tariffs fully reflective and sufficient to cover the cost of production, the report further said.
“Whilst a number of the assumptions align with market realities, we note that the inflation and electricity generation estimates in the SRT model are much higher than the actual entries reported for the corresponding periods.
“In our view, these disparities have the potential to impair the attainment of cost reflectiveness. Agusto believes adopting scenario analysis and modelling will provide a more robust framework to determine an appropriate tariff structure for the Industry in a dynamic macroeconomic environment such as Nigeria’s,” it said.
“In addition to the SRT, the primary regulator – the National Electricity Commission (NERC) – introduced a minimum remittance threshold for each distribution company which stipulates a mandatory payment that must be made to the bulk trader for electricity received.
“Furthermore, in February 2020, NERC introduced guidelines for ‘Merit Order Dispatching’ which involves ranking electricity generation and dispatch by the transmission company of Nigeria (TCN) in ascending order of costs with the cheapest electricity – such as those from Hydro plants with no fuel cost component – ahead of more expensive plants.
“The order also provides guidelines on the alignment of invoicing for capacity charge and energy delivered as well as a framework for the settlement of any imbalance between DisCos and TCN. The Merit Dispatching Order should eliminate the shift of responsibility for load rejection prevalent between DisCos and the TCN and improve the technical and operational efficiencies of these operators,” it also stated.
Concluding, Agusto said, “While operators are generally optimistic that the new tariffs and accompanying regulations would enhance efficiency and position the Industry on the trajectory towards achieving financial independence and ultimately improvements in the volume and quality of electricity supply.”
“In our view, to truly achieve the objectives of privatisation, reforms need to be accompanied by a strong and enabling regulatory environment.
“Furthermore, improved access to finance, efficiency in billing and metering as well as consistent and secure gas supply is vital to reap the benefits of privatization in the long run.
“While the journey to constant electric power supply remains far and long-winded, Agusto & Co believes the initiatives undertaken by the primary regulator – NERC– if consistently enforced have the potential to move the industry forward in the right direction,” it said.
**Tasks Board to Prioritise Improving Livelihoods of Nigerians
By Modupe Gbadeyanka
The newly inaugurated board of the Rural Electrification Agency (REA) has been advised to prioritise the well-being and economic progress of ordinary Nigerians in every decision it makes.
This charge was given by the Minister of Power, Mr Joseph Tegbe, when he inaugurated the board, which has the former Governor of Ekiti State, Mr Ayodele Fayose, as chairman, and Mr Abba Aliyu as its chief executive.
Mr Tegbe described the board’s constitution as consistent with President Bola Tinubu’s drive to strengthen governance and accountability across public institutions.
He further described the agency as an institution for expanding opportunity, noting that every mini-grid, solar home system and electrified market, school, health centre or farm represents an investment in human capital and economic inclusion.
He pointed to REA’s existing programmes, the Energising Education, Economies and Agriculture Programmes and the Africa Mini-Grids Programme, as evidence of that strategy at work, and noted that the Board, constituted under Section 130 of the Electricity Act, takes office at a defining moment for the organisation.
On governance, the Minister drew a clear line between the board’s non-executive role of strategic direction and oversight and management’s responsibility for day-to-day execution.
He noted that the board meets quarterly to review performance while management retains operational latitude between meetings, subject to full accountability.
Mr Tegbe commended Mr Fayose’s record as a former Governor of Ekiti State, assuring of the Ministry’s continued partnership and a description of electricity as an instrument of inclusion, opportunity and prosperity.
In his remarks, the board chairman described President Tinubu’s decision to appoint Mr Tegbe as a statement of seriousness rather than a routine appointment, a signal that the administration would settle for nothing less than a lasting solution to Nigeria’s power problem.
He called the Minister a technocrat whose technical depth and managerial competence have already produced a positive turning point for the sector, affirming that REA’s leadership was proud to work with him on that effort.
Airport sustainability is no longer a separate environmental project. It is becoming part of daily operational planning, procurement, infrastructure development, and airline partnership discussions. For many airports, the main pressure is to reduce emissions on the ground, improve airside efficiency, and prepare for stricter environmental expectations, while continuing to support aircraft reliably every day.
The challenge is that infrastructure does not change overnight.
Full electrification remains an important direction for aviation ground operations. Fixed 400 Hz power, electric ground support equipment, charging infrastructure, energy management systems, and cleaner stand concepts are all part of the future airport. But in practical terms, many airports are still working through phased investment plans. Grid capacity may be limited. Charging points may not yet cover all operational areas. Remote stands, maintenance zones, cargo aprons, and temporary operating areas may still depend on mobile equipment.
This is where the sustainability conversation needs to become more realistic.
Airports do not have to wait for a complete infrastructure transformation before reducing emissions. There are practical steps that can be taken now, especially in aircraft ground power. The key is to look at emissions reduction as a staged process, not a single final destination.
One of the first areas to assess is the age and efficiency of existing diesel ground power units. In many operations, older GPUs continue to provide essential support because they are mobile, familiar, and independent from fixed power systems. But older diesel platforms may no longer fit the expectations of modern airport sustainability strategies. They can become harder to justify in procurement discussions, environmental reporting, and long-term fleet planning.
Replacing outdated diesel equipment with lower-emission alternatives can be a meaningful step. A modern diesel GPU with Stage V / Tier 4 Final engine technology, for example, can help operators reduce the environmental impact of ground power while keeping the operational independence that many stands and service areas still require. This does not replace the need for electrification. It helps bridge the gap while infrastructure continues to develop.
That bridge matters because airside operations are rarely uniform.
A major hub may have fixed power at many contact stands, but still rely on mobile GPUs for remote aircraft positions, maintenance activities, irregular operations, or construction phases. A regional airport may not yet have the capital or grid capacity for large-scale electrification. An MRO facility may need mobile power that can move between aircraft, hangars, and outdoor working areas. A ground handler may need equipment that supports mixed aircraft types under high turnaround pressure.
For these environments, sustainability must work in real conditions. A solution that looks good in a strategy document but does not support the daily operating model will not last.
Decision-makers should therefore evaluate aircraft ground power through several practical questions. Where is fixed power available today? Where is it planned next? Which stands still require mobile equipment? How many hours do diesel GPUs operate per day? Which aircraft types are supported? Are units oversized, outdated, or difficult to position? Is the equipment aligned with current emissions standards? Can it support cleaner operation where grid power is available?
These questions often reveal that the best path is not a single equipment choice, but a balanced fleet strategy.
Fixed power should be used where infrastructure is mature and operationally reliable. Battery-powered equipment can be introduced where duty cycles, charging plans, and climate conditions are suitable. Lower-emission diesel and plug-in hybrid ground power units can support areas where independence, runtime, and flexibility remain critical. Together, these solutions allow airports to reduce emissions without weakening operational resilience.
Plug-in hybrid utility power functionality is especially relevant in this transition phase. When external utility power is available, the unit can operate with reduced fuel use. When it is not available, the same equipment can continue supporting aircraft independently. This gives airports and operators more flexibility as infrastructure develops stand by stand, rather than forcing a complete change before the airside environment is ready.
Compact design also plays a role in sustainable operations. Airports often focus on emissions, but space efficiency is part of the same discussion. Crowded aprons create movement challenges, increase operational friction, and affect safety. A compact mobile GPU that provides the required output without adding unnecessary equipment bulk can support cleaner, more organized, and more efficient aircraft servicing.
This is why modern ground power procurement should not be based only on output figures. Power rating matters, but so do emissions performance, footprint, maneuverability, serviceability, spare parts strategy, operating environment, and fit with future infrastructure plans. Airports need equipment that can serve today’s operation while remaining relevant as sustainability expectations continue to rise.
For a deeper look at how this transition applies to aircraft ground power, ElectroAir has outlined its view on lower-emission ground power and the practical role of modern mobile GPUs in supporting airport sustainability before full electrification is possible. The company’s ElectroAir APA-100 is one example of this approach, combining compact mobile design, Stage V / Tier 4 Final engine technology, and optional plug-in hybrid utility power for operators that need both reliability and a more future-conscious path.
The next stage of airport sustainability will be built through practical progress. Some changes will come from major infrastructure investment. Others will come from better equipment decisions, smarter fleet planning, and the replacement of outdated assets with more efficient alternatives.
For airports, the priority is not to choose between today’s operation and tomorrow’s goals. The priority is to connect them. Ground power is one of the places where that connection can already begin.
By Adedapo Adesanya
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has submitted an interim report to President Bola Tinubu on its investigation into the alleged fictitious Presidential Foreign Investment Promotion Council (PFIPC), recommending the prosecution of its alleged Director-General, Mr Adeniyi Adeyemi.
ICPC’s Chairman, Mr Musa Aliyu, disclosed this after meeting President Tinubu at the Presidential Villa, Abuja, exactly 30 days after his agency was directed to conduct a thorough investigation into the PFIPC.
According to Mr Aliyu, preliminary findings revealed that the federal government never appointed Adeyemi and that the purported appointment letter, gazette and other documents used to establish the agency were forged.
The case centres on an alleged corruption and forgery scandal involving the disputed government entity, PFIPC, which was not approved.
Speaking at the State House, Mr Aliyu said the commission’s investigation established that Mr Adeyemi was never appointed by the Federal Government and that the documents used to legitimise the agency were forged.
The ICPC boss said the investigation also revealed significant weaknesses in government verification and oversight processes, which were exploited to create the impression that the PFIPC was a legitimate government agency.
“Our interim report found that there are weaknesses in verification, inter-agency oversight and government processes. We discovered that those weaknesses were exploited by Adeniyi, with some level of negligence.
“Our investigation found that no Federal Government funds were approved or disbursed to the fake PFIPC/PEAC,” the ICPC chairman stated.
According to him, investigators also uncovered two additional agencies allegedly created by Adeyemi, the FCT Investment Promotion Agency (FIFA) and the Foreign Investment Promotion Agency and Public Private Partnership (PIPA-PPP).
Mr Aliyu said the disputed DG “used forged legislative instruments styled as enabling acts, and used them to support opening of bank accounts.”
The ICPC chairman said the commission recommended Adeyemi’s prosecution, administrative sanctions against public officers whose negligence enabled the operation of the fake agency, and institutional reforms to strengthen internal controls across Ministries, Departments and Agencies (MDAs).
“Our recommendation is that Mr Adeniyi Adeyemi should be prosecuted. Administrative sanctions should also be imposed on public officers whose acts of omission and negligence facilitated the illegal operation of PFIPC/PEAC.
“There is also a need for institutional reforms so that the internal controls of MDAs can be strengthened to prevent this kind of illegal activity,” he stated.
The chief investigator noted that the report submitted to the President is only an interim one, adding that investigations are continuing to identify other collaborators and build a stronger criminal case.
“We have continued with the investigation of the activities of Mr Adeniyi Adeyemi and his collaborators so that we can unravel more facts and file criminal charges that can stand the test of time before a court of competent jurisdiction,” he said.
The PFIPC scandal came to light after the Presidency disowned the council, describing it as a non-existent government agency despite its appearance in the 2026 Appropriation Act with a N1.3 billion budget allocation.
The federal government has since filed criminal charges against Mr Adeyemi over allegations including forgery, impersonation and fraudulent misrepresentation, while separate investigations by the House of Representatives and the ICPC continue into how the fake agency operated within government institutions.
