General
Why DisCos Can’t Meet Obligations—EMRC
By Modupe Gbadeyanka
The Country Director, Energy Market and Regulatory Consultants (EMRC), Mrs Rahila Thomas, has explained why electricity distribution companies in Nigeria fondly called DisCos, are not performing optimally.
Mrs Thomas, speaking in Abuja at a one-day round table discussion organised by the Nigerian Senate on Addressing Nigeria’s Power Problems, stated that these electricity firms were cash-strapped.
“DisCos are not collecting sufficient cash to meet upstream obligations,” Mrs Thomas at the event while giving a presentation on the evolution of Nigeria’s electricity supply industry.
Chairman of the Senate Committee on Power, Mr Gabriel Suswam, said at the forum that, “The challenges in the power sector can be categorized into five crowd areas: Institution and Governance, Infrastructural, Political, Legislative and Environmental.”
He stated that, “The workable solution may be holistic and should take into account these broad challenges. We are here today to find solutions to electricity challenges in our country.”
Speaking further, he explained that the roundtable was organised as a result of a motion brought to the Senate on addressing Nigeria’s power problems on Tuesday, November 19, 2019, noting that the Senate resolved to hold the programme to address these issues and provide working solutions.”
In his contribution, the Minister of Power, Mr Saleh Mamman, stated that, “The most important factor in addressing the power sector is building synergy and team spirit. We have identified this at the Ministerial level. I wish all of us a fruitful resolution that will help in solving these problems.”
His counterpart in the Ministry of Finance, Budget and National Planning, Mrs Zainab Ahmed, who was represented by Mrs Evelyn Amobi, lauded the commitment of the legislative to work with the executive to resolve the issues affecting the power sector.
She assured that, “All the decisions that will be made here will have our full support and be taken to the executive.”
Senate Leader, Mr Yahaya Abdullahi, said at the forum that, “A lot of resources have been used in finding solutions into problems that have put this country backwards.
“It is the concern of the Senate to look into each other’s eyes and say the truth. We are here to own up to the issues that face this particular centre and work to find solutions to the major problem that affects the delivery of power to Nigeria.”
Senate President, Mr Ahmad Lawan, while speaking at the event, noted that, “If there is any single sector of our economy that is so important and so challenged, it is the power sector.”
He said, “This is a sector that needs a declaration of emergency. This is an opportunity for us to discuss the solutions and the way forward. The truth is we all know what is wrong, what we really need to do is to have the political will to take on the challenges frontally.”
“From the electricity power reform of 2005 and the privatization of Discos, with what is happening today, we know that everything is wrong. The time has come for us to have courage.
“We have signed into AFCTA and I believe what will give us an edge is to have a competitive environment. Our industries must be able to produce things that will compete favourably to other products in Africa but we are not in that position today. Even our citizens who have capital would rather relocate to Ghana and produce what they want to sell and bring it to Nigeria,” he said further.
Continuing, Mr Lawan said, “If we went wrong with the privatization of discos and Gencos, the time has come to look into it in the interest of our country. Definitely something is not working right. This round table is an idea of the senate that we should come together, talk amongst ourselves, ours is of course legislative intervention but we are also part of government. Whatever that is required to support the executive to amend the power sector reform, we are prepared to do that.”
Concluding, the Senate President said, “We owe this country obligation to provide employment opportunities for our teeming population. I think this round table at least is an opportunity to come up with measurable roadmaps to take the power sector to the next level.
“I believe that we have to declare a state of emergency on power and courageous decisions must be taken by government. I believe that this is one interaction that will not disappear after this session we want to take appropriate actions.”
By Adedapo Adesanya
Justice Inyang Ekwo of the Federal High Court, Abuja, has granted bail to the former Managing Director of the Warri Refining and Petrochemical Company Limited, Mr Jimoh Yisawu, in the sum of N500 million.
Mr Yisawu is standing trial on an eight-count charge bordering on alleged money laundering.
He pleaded not guilty to all eight counts after they were read to him. The charge, dated and filed on June 22, 2026, was brought by the Federal Government.
The prosecution, led by Mr Ekele Iheanacho, a Senior Advocate of Nigeria (SAN), told the court that the defendant allegedly committed offences contrary to the Money Laundering (Prevention and Prohibition) Act, 2022.
In the first count, the Federal Government alleged that Mr Yisawu “indirectly converted the aggregate sum of over $789,950… being proceeds of unlawful activity”, contrary to Section 18(2)(b) and punishable under Section 18(3) of the Act.
In the second count, the prosecution alleged that he made cash payments exceeding $789,950 to one Samaila Bala without using a financial institution, contrary to the provisions of the anti-money laundering law.
In the fourth count, the government further alleged that Yisawu made cash payments totalling $122,600 through one Rasheed Olaitan Yusuf outside the banking system and due process, in violation of the anti-money laundering law.
Following the defendant’s plea, Iheanacho applied for a trial date.
Counsel for the defendant, Wale Balogun (SAN), informed the court that he had filed a bail application.
Responding, Mr Iheanacho said the prosecution had filed a counter-affidavit opposing the application and urged the court to refuse bail.
Balogun, however, argued that the prosecution had earlier granted Mr Yisawu administrative bail and had already seized his international passport. He urged the court to maintain the existing bail terms.
After adopting their respective processes, both counsel argued for their applications.
In a ruling, Justice Ekwo held that the defendant was entitled to bail.
The judge said, “Going by Section 162 of the Administration of Criminal Justice Act (2015)… I therefore grant bail in the sum of ₦500m with one surety in like sum.”
Justice Ekwo ordered that the surety must be a responsible Nigerian with landed property in Abuja and must submit proof of ownership to the court registrar.
The judge also directed the defendant to deposit his international passport with the court and barred him from travelling outside Nigeria without the court’s permission.
Pending the perfection of the bail conditions, the court ordered that Mr Yisawu should remain in the custody of the prosecution.
The case was adjourned until October 25, 26, and 27, 2026, for trial.
By Adedapo Adesanya
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the federal government to review the fuel import licences recently issued to some marketers, saying the policy is driving up fuel prices, putting pressure on foreign exchange and creating instability in the downstream petroleum sector.
Speaking in Abuja, IPMAN’s National Publicity Secretary, Mr Chinedu Ukadike, said the current import regime has not achieved its goal of making fuel more affordable. Instead, he argued that it has encouraged the importation of more expensive petrol while increasing the country’s dependence on foreign exchange.
According to Mr Ukadike, some importers plan to sell Premium Motor Spirit (PMS), also known as petrol, for about N1,350 per litre, which is higher than the ex-depot price offered by the Dangote Petroleum Refinery.
The IPMAN official questioned the need to import fuel at higher prices when locally refined products are available at lower costs, noting that the situation has made it difficult for independent marketers to plan their businesses because import costs continue to fluctuate.
Mr Ukadike also raised concerns about the quality of some imported fuel and called on regulators to ensure that only products that meet Nigeria’s standards are allowed into the country.
The association warned that continued fuel imports also increase demand for the US Dollar since importers pay for products in foreign currency. This, the association said, puts additional pressure on the naira and contributes to higher fuel prices.
The association stressed that Nigeria should focus on supporting local refining to improve energy security and reduce reliance on imported petroleum products.
It noted that the Dangote Petroleum Refinery has helped maintain steady fuel supply despite global disruptions, including tensions in the Middle East.
According to IPMAN, greater use of locally refined fuel would reduce FX demand, strengthen the refining industry, create jobs and improve economic stability. It also said producing enough fuel for local consumption while exporting excess output would help Nigeria earn more foreign exchange.
The association called on the federal government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company (NNPC) Limited and the Presidential Committee on downstream reforms to engage stakeholders and adopt policies that support domestic refining.
IPMAN said strengthening local refining remains the best long-term solution for affordable fuel, stable supply and improved energy security in Nigeria.
By Adedapo Adesanya
The National Insurance Commission (NAICOM) has reiterated that the July 31, 2026, deadline for insurance companies to meet the new minimum capital requirements remains firm, warning operators against treating it as a mere formality.
The Commissioner for Insurance of NAICOM, Mr Olusegun Ayo Omosehin, who gave this warning, urged companies that have yet to meet the new minimum capital requirements to act with urgency.
Speaking on Friday at the investiture of Mr Akinjide Oluwarotimi-Orimolade as the 53rd President and Chairman of Council of the Chartered Insurance Institute of Nigeria (CIIN) in Lagos, Mr Omosehin said the recapitalisation exercise remained a critical pillar of the Commission’s ongoing reforms aimed at building a stronger, more resilient and consumer-focused insurance industry.
According to him, the new minimum capital requirement is designed to improve insurers’ claims-paying capacity, strengthen their balance sheets, support higher domestic risk retention and prepare the industry for a risk-based capital regime.
“With about 14 days to the July 31 deadline, we commend operators that have made significant progress in raising capital, engaging investors, strengthening governance and submitting for the Commission’s verification process.
“However, the deadline is not symbolic; it is regulatory, and the industry must treat it with the urgency it deserves,” he said.
The Commissioner assured stakeholders that the insurance sector regulator would maintain a transparent, fair and firm process, stressing that every operator must demonstrate financial soundness, regulatory compliance and operational readiness.
He added that stronger capitalisation must ultimately translate into better service delivery, prompt settlement of claims, improved consumer protection and greater public confidence in insurance.
Mr Omosehin noted that the Nigerian Insurance Industry Reform Act (NIIRA) 2025 has provided a stronger legal framework for a more resilient, better-governed and responsive insurance market, adding that NAICOM’s reform agenda is focused on market conduct, policyholder protection, governance, insurance penetration, financial inclusion and responsible innovation.
He described professionalism as the foundation of a trusted insurance market, saying the industry’s growth depends not only on adequate capital and effective regulation but also on ethics, competence, innovation and public confidence.
“The strength of insurance depends not only on capital and regulation but also on professionalism, ethics, innovation and public confidence. A trusted insurance market cannot be built on capital alone. It requires competent professionals, ethical institutions, credible advice and fair treatment of policyholders,” he stated.
