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PwC Proposes Key Amendments to Nigeria Electricity Act 2023

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Nigeria Electricity Act 2023

By Adedapo Adesanya 

PricewaterhouseCooper (PwC) Nigeria has commended the country’s move towards fixing its copious electricity challenges with the Electricity Act 2023 and proposed key amendments that will ensure the issues are faced head-on,

At the 14th edition of its Annual Power and Utilities Roundtable, with the theme The Electricity Act 2023: Powering Nigeria, the Partner and Energy, Utilities and Resources Leader at PwC Nigeria, Mr Pedro Omontuemhen, noted that, “The 2023 power roundtable’s timing coincides with the ongoing COP 28 in Dubai, highlighting the urgent need for continued action on climate change especially in the area of renewable energy.”

“The Electricity Act can play a pivotal role in addressing this challenge by guiding balancing the utilisation of our natural resources with the reduction of carbon emissions while showing how we can generate, transmit, and distribute adequate power to meet Nigeria’s energy needs,” he added.

He noted that “discussions at the roundtable have shown that power sector stakeholders welcome the Electricity Act as a good step, especially for consolidating the laws governing the Nigerian electricity supply industry and establishing a policy framework that empowers state governments and investors.

However, he stressed that there was more to be done to enhance the legislation and make it more responsive to the realities of industry practitioners, adding that the Act must provide the policy framework necessary to implement practical solutions to address the metering gap.

In his keynote address, Mr Bimbola Banjo, Partner and Finance Advisory Leader, PwC Nigeria, elaborated on the key provisions of the Act, including the separation of distribution from supply operations, incentivising renewable energy, the positioning of NERC as the apex regulator, the establishment of the Power Consumer Assistance Fund (PCAF), state government’s adoption of the Electricity Act, the establishment of N-HYPPADEC, and the definition of offences and penalties.

“While there is an urgency to adopt the Electricity Act, states must exercise caution and assess their readiness for implementation. The process of adoption will incur significant costs, including engaging legal and commercial advisors, and will require substantial investments in technology, human resources, and the establishment of state-level structures.

“Before proceeding, states should conduct a comprehensive evaluation of their electricity market and network infrastructure, accompanied by detailed technical and commercial feasibility studies. This rigorous assessment will ensure that states are adequately prepared to implement the Electricity Act effectively and reap its full benefits,” he added.

The Electricity Act fosters collaboration among various stakeholders, including state governments and federal government ministries. These partnerships and active state participation will lead to positive outcomes, such as the establishment of suitable investment vehicles, effective fundraising strategies, robust enforcement mechanisms, and enhanced knowledge exchange.

The roundtable’s panel of experienced power sector stakeholders discussed additional measures that will enhance the Electricity Act towards achieving its objectives.

For Mr Akinyemi Akingbade, Partner, Energy, Utilities and Resources, PwC Nigeria, who moderated the panel session, there’s a need to consider the role the Electricity Act can play in stimulating local manufacturing of electricity assets, such as meters, and fostering domestic investments within Nigeria’s power value chain, which will help job creation and economic growth.

Mr Razaq Obe noted that the Electricity Act has already started fostering collaborations in the sector. For example, there’s a forum of state commissioners for energy, which is a first in Nigeria’s history. He indicated the willingness of state governments to continue to collaborate to enhance the implementation of the Electricity Act.

Addressing the misconception surrounding reluctance to provide meters, Mrs Soetan emphasised that DisCos, despite facing cost challenges, believe in the benefits of metering for improved revenue collection.

She stressed that DisCos are actively seeking collaborations with various stakeholders to increase meter deployment for their customers. The collaboration between DisCOs and state governments to deter energy theft will be key to achieving the Electricity Act’s objectives.

Mr Obi-Chukwu expressed enthusiasm for the Electricity Act’s potential to promote renewable energy development in Nigeria, bringing about widespread adoption of solar energy in residential and community settings. Additionally, he emphasised the importance of digital transformation and data sharing to facilitate innovation.

Adding his input, Mr Mueller emphasised the need for a clear and effective dispute resolution mechanism to address regulatory disputes and prevent inconsistencies in regulatory decisions. He highlighted the current potential for double regulation and abuse of power.

Mr Akpeneye noted that enhancing the Electricity Act should include establishing a single, comprehensive law governing the entire power sector. While electricity distribution should remain within the purview of state governments, a centralised law is crucial to ensure consistency and prevent conflicts. The Electricity Act should clearly define the roles and responsibilities of regulators, establish industry standards, and outline how stakeholders should collaborate effectively.

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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Tinubu Wants Review of NNPC 30% Management Fee, Frontier Exploration Deduction

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NNPC Crude Cargoes pricing

By Adedapo Adesanya

President Bola Tinubu has ordered the review of deductions and revenue retention by the Nigerian National Petroleum Company (NNPC) Limited and other major revenue-generating agencies in the country.

The move is to boost public savings, improve spending efficiency, and unlock resources for growth, according to resolutions reached at Wednesday’s Federal Executive Council (FEC) meeting in Abuja.

The directive applied to NNPC, the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Maritime Administration and Safety Agency (NIMASA).

Mr Tinubu specifically called for a reassessment of NNPC’s 30 per cent management fee and 30 per cent frontier exploration deduction under the Petroleum Industry Act (PIA).

He tasked the Economic Management Team, led by the Minister of Finance, Mr Wale Edun, to present actionable recommendations to FEC on the best way forward.

President Tinubu said the directive was part of efforts to sustain reforms that had dismantled economic distortions, restored policy credibility, enhanced resilience, and bolstered investors’ confidence.

The reforms have created a transparent and competitive business environment attractive to local and foreign investors in critical sectors, such as infrastructure, oil and gas, health, and manufacturing.

Also, President Tinubu noted that Nigeria’s goal of $1 trillion economy by 2030 required growth of at least seven per cent annually from 2027, describing the target as “not just economic, but a moral imperative” as higher growth was the surest way to tackle poverty.

He cited the July 2025 International Monetary Fund (IMF) Article IV report, which he said endorsed Nigeria’s economic trajectory and the need for investment-led growth.

The President also said Nigeria’s goal of $1 trillion economy by 2030 required growth of at least seven per cent annually from 2027.

Mr Tinubu, according to a statement from the Ministry of Finance, described it as “not just economic, but a moral imperative”, as higher growth is the surest path to tackling poverty.

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Tinubu Leaves Abuja Today for Dubai, Japan, Brazil

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tinubu at UNGA

By Modupe Gbadeyanka

President Bola Tinubu will today, Thursday, August 14, 2005, leave Nigeria for a two-nation trip to Japan and Brazil, though he is expected to have a stop-over in Dubai in the United Arab Emirates (UAE) before proceeding to Japan.

A statement issued on Wednesday by his Special Adviser on Information and Strategy, Mr Bayo Onanuga, disclosed that the President would be spending about two weeks outside the country.

According to the statement, in Japan, President Tinubu will attend the Ninth Tokyo International Conference on African Development (TICAD9) in the City of Yokohama from August 20 to 22.

With the theme Co-create Innovative Solutions with Africa, TICAD9 will focus on Africa’s economic transformation and improvements in the business environment and institutions through private investment and innovation. It will also promote a resilient and sustainable African society for human security, peace, and stability.

In addition to attending plenary sessions on themes linked to the conference, the Nigerian President will hold bilateral meetings and meet the chief executive officers of some Japanese companies with investments in Nigeria.

Initiated in 1993 by the Japanese government and co-hosted by the United Nations, UNDP, the African Union Commission, and the World Bank, TICAD is a triennial conference held alternately in Japan and Africa. The last one took place in August 2022 in Tunisia.

 The forum fosters high-level policy dialogue between African leaders and development partners.

At the end of the TICAD9, Mr Tinubu will leave for Brasilia in Brazil for a two-day state visit from Sunday, August 24, to Monday, August 25, following an invitation by the Brazilian President, Luiz Inacio Lula da Silva.

While in Brazil, he will hold a bilateral meeting with his host and attend a business forum with Brazilian investors.

His delegation—comprising key ministers and senior officials—will explore opportunities to strengthen cooperation and sign agreements and Memoranda of Understanding (MoUs) with the Brazilian government.

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Appeal Court Frees NNPC of N5bn Damages Payment to Ararume

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ifeanyi ararume nnpc N5bn damages

By Modupe Gbadeyanka

The judgment of the Federal High Court sitting in Abuja mandating the Nigerian National Petroleum Company (NNPC) Limited to pay its former board chairman, Mr Ifeanyi Ararume, the sum of N5 billion as damages has been upturned by the Abuja Division of the Court of Appeal.

The former lawmaker secured the judgment against the state-owned oil agency at the lower court in April 2023, but this was challenged at the appellate court.

Ruling on the matter on August 8, 2025, according to a statement from the NNPC on Wednesday, August 13, the court upheld the appeal of the energy firm against the Federal High Court’s judgement that annulled Mr Ararume’s removal from the board.

According to the Appeal Court, the Federal High Court’s earlier decision was delivered in error, noting amongst others, that the claim was statute-barred.

In the statement, NNPC said this decision of the appellate court “sets a corporate governance precedent in Nigerian law, and upholds the validity of board resolutions critical to the oil and gas industry’s investment and policy direction.”

It also stated that the judgement spares it of “a massive financial payout and removes a legal risk that could have invalidated all decisions of the board since 2021.”

Recall that in 2023, the late former President Muhammadu Buhari removed Mr Ararume as the chairman of NNPC but he approached the court to challenge this, arguing it was illegal, unlawful, unconstitutional and a total breach of the Companies and Allied Matters Act (CAMA), asking N100 billion as damages.

Though his prayers were granted by Justice Inyang Ekwo, the compensation awarded was N5 billion and it was for the disruption of his appointment because it was unlawful and illegal.

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