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NERC Begs FG Over Mounting Power Sector Debt

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NERC

By Adedapo Adesanya

The Nigerian Electricity Regulatory Commission (NERC) said it had communicated the need for the federal government to intervene over the longstanding trend of non-payment and debts by international customers, and others to the power sector.

According to a report, as of the quarter under review, electricity Distribution Companies (Discos) and four international customers serviced by the Market Operator (MO), did not remit a total of N97.5 billion to the power sector in the fourth quarter of 2023.

Statistics obtained from the Nigerian Electricity Regulatory Commission’s 2023 fourth-quarter report, said the 11 DisCos held unto N81 billion, while four international customers (Paras SBEE, Transcorp SBEE, Mainstream NIGELEC and Odu-Pani-CEET ), did not remit $12 million (N16.5 billion when converted using N1,367/$1 rate) invoice issued to them by the MO for services rendered in the third quarter of 2023

This puts total debt by the DisCos and international customers at N97.5 billion for the period under review.

A breakdown of the explanation of the debt by the DisCos showed that in Q4 2023, the cumulative upstream invoice payable by DisCos was approximately N270 billion, consisting of N223 billion for generation costs from the Nigerian Bulk Electricity Trading (NBET) company, and about N47 billion for transmission and administrative services by the MO.

However, out of this amount, the DisCos collectively remitted a total sum of N188.7 billion (N156 billion for NBET and N32.5 billion for MO), with an outstanding balance of about N81 billion.

This translates to a remittance performance of about 70 per cent in Q4 2023 compared to the 76 per cent (remittance of N158 billion out of the total invoice of N208.7 billion) recorded in Q3 2023

The total revenue collected by all DisCos in Q4 2023 was N294.9 billion out of the N399.7 billion that was billed to customers. This translates to a collection efficiency of 74 per cent.

In comparison, the total revenue collected by all DisCos in Q3 2023 was N268 billion, out of the N349 billion billed to customers which translated to a 76 per cent collection efficiency. The 74 per cent collection efficiency recorded in Q4 2023 is –2.77 per cent lower than the efficiency recorded in the preceding quarter (76 per cent).

The report further detailed that none of the four international customers being supplied by GenCos in the Nigerian Electricity Supply Industry (NESI), made payment against the cumulative invoice of $12.02 million issued by the MO for services rendered in Q4 2023.

The report, however, noted that some international customers made payments during Q4 2023 for outstanding MO invoices from previous quarters.

It also said that there were no remittances by bilateral customers against the cumulative invoice of N1.9 million issued to them by the MO for services rendered in Q4 2023.

The recurrent delay of remittances by international and bilateral customers, NERC said should prompt the MO “to invoke the provision of the market rules to curtail the payment indiscipline being exhibited by the various market participants”.

The special customer (Ajaokuta Steel Co. Ltd and the host community) did not also make any payment towards the N0.72 billion (NBET) and N0.07 billion (MO) invoices received in the last quarter of 2023.

“This continues a longstanding trend of non-payment by this customer and the Commission has communicated the need for intervention on this issue to the relevant FGN ministries,” NERC added.

The power sector debt continues to rise, as the country battles inadequate power supply as a result of low generation.

The GenCos currently generate about 5,000 megawatts (MW) despite the grid having a combined capacity of about 12,000 MW making the Transmission Company of Nigeria (TCN) transmit the same to the DisCos for onward distribution to end users.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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SERAP in Court to Force INEC to Account for N55.9bn for 2019 Elections

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By Modupe Gbadeyanka

The failure of the Independent National Electoral Commission (INEC) to account for about N55.9 billion earmarked for the purchase of some materials for the 2019 general elections has forced the Socio-Economic Rights and Accountability Project (SERAP) to file a lawsuit against the commission.

In the suit number FHC/ABJ/CS/38/2026 filed last Friday at the Federal High Court in Abuja, SERAP asked the court for an order of mandamus to compel INEC to disclose the names of all contractors paid the sum of money.

It was claimed that the N55.9 billion was meant for the purchase of smart card readers, ballot papers, result sheets and other election materials for the 2019 general elections, which produced the late Mr Muhammadu Buhari as President for a second term in office.

SERAP is relying on the latest annual report published by the Auditor-General on September 9, 2025, to ask for the use of the funds, which is said to be missing or diverted.

The organisation argued that the electoral umpire “must operate without corruption if the commission is to ensure free and fair elections in the country and uphold Nigerians’ right to participation.”

“INEC cannot ensure impartial administration of future elections if these allegations are not satisfactorily addressed, perpetrators including the contractors involved are not prosecuted and the proceeds of corruption are not fully recovered,” a part of the statement issued by the group stated.

“INEC cannot properly carry out its constitutional and statutory responsibilities to conduct free and fair elections in the country if it continues to fail to uphold the basic principles of transparency, accountability and the rule of law.

“These allegations also constitute abuse of public office and show the urgent need by INEC to commit to transparency, accountability, clean governance and the rule of law,” it further declared.

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Finance Ministry Directs Shippers, Airlines to Submit Manifests via Single Window Project

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By Adedapo Adesanya

The Ministry of Finance has directed all shipping companies and airlines operating in Nigeria to submit their manifests through the Single Window Project (SWP) as part of efforts to strengthen cargo tracking and transparency.

The submission of shipping manifests before the change of policy was handled exclusively by the Nigeria Customs Service (NCS) for onward cargo processing and port clearance.

However, following a memo from late last year signed by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, all shipping firms and airlines were directed to integrate with the National Single Window platform to ensure seamless Manifests submission.

“I would like to bring to your attention that His Excellency, President Bola Ahmed Tinubu inaugurated the National Single Window (NSW) Project on the 16th of April 2024.

The NSW Project aims to streamline and automate import and export processes at Nigeria’s entry & exit ports, with the dual goals of enhancing trade facilitation and increasing government revenue.

“By integrating the operations of multiple government agencies involved in trade processes on one platform, the NSW platform will ensure faster clearance of goods and services, improve operational efficiencies at the imports and significantly reduce bureaucratic bottlenecks.

“Key components of the Single Window as defined by the World Trade Organisation (WTO) and World Customs Organisation (WCO) include: (a) a single-entry point i.e. traders, shipping lines, airlines and other stakeholders should submit all required import and export documentation through a single-entry point on a centralized digital platform, and (b) single submission i.e. all documentation should only be submitted once and data only entered once.

“As a result, the NSW Platform will be the single-entry point of submission for all Sea and Air Manifests. Therefore, all shipping lines and airlines are therefore directed to integrate with the NSW Platform to ensure seamless Manifests submission,” parts of the memo read.

The Comptroller-General of the NCS, the chairman of the Nigerian Revenue Service (NRS), the Managing Director of the Nigerian Ports Authority (NPA), the Managing Director of the Federal Airports Authority of Nigeria (FAAN) and the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) were copied in the memo.

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Dangote Drags ex-NMDPRA Boss Farouk Ahmed to EFCC

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By Aduragbemi Omiyale

The petition written against the immediate past chief executive of the Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Mr Farouk Ahmed, which was withdrawn from the Independent Corrupt Practices and Other Related Offences Commission (ICPC), has now been taken to the Economic and Financial Crimes Commission (EFCC).

The letter was written by the chairman of Dangote Industries Limited (DIL), Mr Aliko Dangote. It contained allegations of allegations of abuse of office and corrupt enrichment against Mr Ahmed.

The petition led to the resignation of the former NMDPRA chief from office last month.

It was gathered that Mr Dangote, through his legal representative, filed a formal corruption petition against him at the headquarters of the EFCC, with specific plea of prosecuting Mr Ahmed if found culpable.

The businessman said the withdrawal of the petition from the ICPC was a strategic move aimed at accelerating the prosecution process.

 In the petition signed by his lead counsel Mr O.J. Onoja (SAN), Mr Dangote noted that, “We make bold to state that the commission is strategically positioned along with sister agencies to prosecute financial crimes and corruption related offences, and upon establishing a prima facie case, the courts do not hesitate to punish offenders. See Lawan v. F.R.N (2024) 12 NWLR (Pt. 1953) 501 and Shema v. F.R.N. (2018) 9 NWLR (Pt.1624)337.”

He further urged the anti-money laundering agency, under the leadership of Mr Olanipekun Olukoyede, “…to investigate the complaint of Abuse of Office and Corruption against Engr. Farouk Ahmed and to accordingly prosecute him if found wanting.”

“The commission’s firm resolve in handling this matter with dispatch is not only imperative and expedient but will also serve as a deterrent to other public officers out there with such corrupt proneness and tendencies,” he added.

Recall that on December 14, 2025, Mr Dangote raised concerns about Mr. Ahmed’s financial dealings, alleging that the former regulator is living far beyond his legitimate means.

According to him, four of Mr Ahmed’s children attended elite secondary schools in Switzerland, incurring costs running into several millions of dollars—an expenditure that raises questions about potential conflicts of interest and the integrity of regulatory oversight in the downstream petroleum industry.

Mr Dangote listed the schools attended by Mr. Ahmed’s children: Faisal Farouk (Montreux School), Farouk Jr. (Aiglon College), Ashraf Farouk (Institut Le Rosey), and Farhana Farouk (La Garenne International School), noting that each child spent six years in these institutions. He estimated annual tuition, travel, and upkeep per child at $200,000, totaling approximately $5 million for their secondary education.

Additionally, he alleged that Mr Ahmed spent another $2 million on tertiary education for the four children, including $210,000 for Faisal’s 2025 Harvard MBA program.

“Nigerians deserve to know the source of these funds, especially when many parents in Mr Ahmed’s home state of Sokoto struggle to pay as little as N10,000 in school fees,” Mr Dangote stated.

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