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.
By Adedapo Adesanya
Operatives of the Nigeria Police Force (NPF) have apprehended the Director General of the phantom Presidential Foreign Intervention Promotion Council (PFIPC), Mr Adeniyi Adeyemi.
His arrest happened a few hours after Justice Mohammed Umar of the Federal High Court in Abuja issued a warrant for his arrest.
The police had announced plans to arraign Mr Adeyemi before the court on Tuesday over allegations bordering on forgery, impersonation, and related offences.
The security agency, in a fresh charge marked FHC/ABJ/CR/562/2025, listed Mr Adeyemi, “Femi Surname Unknown,” and “Anu Surname Unknown” as the first to third defendants, respectively, over alleged forgery and impersonation.
The prosecution has lined up several witnesses, including the Chief of Staff to the President, Mr Femi Gbajabiamila, alongside officials from the Office of the Accountant-General of the Federation, police officers, civil servants, and individuals allegedly linked to the operations of the purported agency. It was reported that a hotel operator, a clergyman, and persons said to have worked with Mr Adeyemi at the alleged agency are also expected to testify.
Investigators alleged that Mr Adeyemi operated the purported agency from the Federal Secretariat Complex in Abuja before his arrest.
The police case follows a public debate over the existence of the alleged PFIPC after Mr Adeyemi challenged the Presidency’s denial that the body ever existed.
Mr Adeyemi accused Mr Gbajabiamila of making conflicting statements regarding both the Presidential Foreign Intervention Promotion Council (PFIPC) and the Presidential Economic Advisory Council (PEAC).
During a recent press briefing, Mr Adeyemi called for an independent probe into the two bodies and alleged that Mr Gbajabiamila demanded financial payments linked to his purported appointment.
He claimed that N400 million was paid through intermediaries, with an additional N200 million allegedly requested—claims that have not been substantiated.
Mr Adeyemi also argued that references to both the PFIPC and the Presidential Economic Advisory Council appeared in the 2026 Appropriation Act, questioning the government’s position that the organisations never officially existed.
The planned prosecution comes as the Independent Corrupt Practices and Other Related Offences Commission (ICPC) continues a broader investigation ordered by President Tinubu.
The Senate had earlier declined to immediately investigate the inclusion of the alleged PFIPC in the 2026 Appropriation Act, opting instead to await the outcome of the anti-graft agency’s probe.
By Adedapo Adesanya
The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has sealed two fuel stations in Ogun State engaging in under-dispensing of petroleum products and non-compliance with the Petroleum Industry Act of 2021.
Leading the enforcement team around the Akute-Ajuwon axis of the state, the Head of Distribution Systems Storage and Retailing Infrastructure, Mr Olufemi Adebowale, said the move became imperative in view of repeated breaches of regulatory requirements by the affected stations and the need to protect the rights of consumers from sharp practices.
According to him, the development is part of its ongoing efforts to enforce compliance with industry regulations, protect consumers from sharp practices, and ensure that petroleum marketers dispense the correct quantity of products across the state.
He explained that records available to the authority showed that the fuel stations have consistently violated regulatory compliance by under-dispensing petroleum products, illegally breaking official seals placed on the facility, and resuming operations without authorisation.
According to him, such actions amount to a violation of the Petroleum Industry Act 2023 and undermine efforts to protect consumers from exploitation.
“The Nigerian Midstream and Downstream Petroleum Regulatory Authority is carrying out a lawful enforcement on this facility. Our records have consistently shown that this company has been violating regulatory compliance.”
“It is high time we made it clear that they cannot continue to under-dispense products, deliberately remove our seals, and believe that nothing will happen; that is why we are here to enforce the provisions of the Petroleum Industry Act 2023 he said.
“When it comes to under-dispensing, they are cheating members of the public by not selling the correct quantity of fuel. Also, once a station is sealed, it has no authorisation to operate. But this station deliberately removed our seal and continued operations, which is against the law.”
Mr Adebowale disclosed that the authority has been monitoring the station’s activities since 2025, describing the violations as persistent despite several enforcement actions.
He revealed that the affected station had been sealed no fewer than six times within the period, but continued to remove the authority’s seals and ignore invitations extended by the regulator.
“From our records, this has been happening since last year. The station has also refused to honour our invitations. It has been sealed not less than six times, yet it keeps removing our seals and resuming operations.”
On the sanctions awaiting the operators, Adebowale said the authority had served the stations with enforcement notices, while the facilities would remain shut until all stipulated conditions are met.
He added that the NMDPRA management would also consider suspending the operating licence of the affected stations, while also sending a strong warning to any fuel station intending to go against the rules of PIA.
“That is against the rules. They do not have any right to operate until we authorise them to do so. This is a clear deviation from regulatory compliance. According to the Petroleum Industry Act (PIA), when this happens, we must carry out enforcement, and that is why we are here today.
Beyond conducting this exercise, we are also using this opportunity to address the public through the media. As long as operators are doing the right thing, they have nothing to fear. However, for those going against compliance levels—whether through under-dispensing or direct violation of our seal—all necessary enforcement, penalties, and sanctions will be strictly applied against such offenders.”
“A letter has been served, the station has been completely shut down, and they must meet all the conditions, including payment of the applicable penalties. We are also looking at suspending the operating licence, subject to management’s approval,” he said, warning that any further attempt to tamper with the seals or resume operations illegally would attract criminal prosecution.
By Adedapo Adesanya
The Nigerian Ports Authority (NPA) says it has moved to reduce port gridlock by releasing trucks into Apapa and Tin Can ports in scheduled batches based on terminal demand, while enforcing strict rules against indiscriminate parking on port access roads.
The General Manager, Lagos Port Complex, Mr Debo Lawal, said the NPA management, led by Managing Director, Mr Abubakar Dantsoho, was committed to ending indiscriminate truck parking around the ports and aligning operations with global best practices.
He said the authority was working with Truck Transit Parks Limited (TTP) to regulate truck movement into terminals through a phased release system.
According to him, trucks will now be released in scheduled batches based on terminal demand, instead of allowing all approved trucks to enter the port corridor simultaneously.
“If a terminal requires 100 trucks, they will not all be released at once. They will come in batches to reduce pressure on the port access roads,” he said in an interview with the News Agency of Nigeria (NAN) on Monday in Lagos.
Mr Lawal said a joint task force had been clearing Apapa and Tin Can port access roads since June 26, 2026, operating until about 8 pm daily to prevent indiscriminate parking.
He added that another clearance exercise would soon be conducted to sustain the gains and prevent a return to the persistent gridlock that previously characterised the port corridors.
The port manager, however, urged truck operators to support the initiative by exiting the port environment immediately after loading or offloading cargo.
He noted that some truck drivers still parked along access roads after completing port operations, despite repeated engagements by the authority.
“We engage truckers and their leadership every day, but enforcement will continue alongside sensitisation to ensure compliance,” he said.
On infrastructure, Mr Lawal said the federal government, through the NPA, had begun payment of the five per cent counterpart funding required for the 726 million dollar port rehabilitation project.
He disclosed that preliminary activities, including borehole drilling and site investigations, had been completed, while contractors were expected to mobilise to the site before the end of July.
According to him, a technical stakeholders’ meeting was held on July 7, while a broader stakeholders’ review was scheduled for July 13 to assess progress and address implementation gaps.
Mr Lawal said the rehabilitation project, alongside ongoing reforms, was aimed at reducing cargo clearance time, eliminating documentation bottlenecks and improving operational efficiency at the nation’s seaports.
He added that the National Single Window project was about 80 per cent completed, with a dedicated office already established near the port to improve inter-agency coordination.
According to him, the digital platform will integrate banks, the Nigeria Customs Service, shipping companies and other government agencies to improve efficiency, plug revenue leakages and enhance revenue collection.
Mr Lawal expressed confidence that improved digitisation, reduced human interference and more efficient truck management would strengthen Nigeria’s trade competitiveness and enhance operations at the Apapa and Tin Can ports.
