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NERC: States Cutting Power Tariffs Required to Fund Subsidy

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The Nigerian Electricity Regulatory Commission (NERC) has stated that state governments lack jurisdiction over the national grid and power stations established under federal laws or operating with licenses issued by the commission.

 

 

The commission stated this in its reaction to the controversies generated by the Enugu Electricity Regulatory Commission’s decision to slash the Band A tariff.

In a notice on Thursday, the national power regulator advised state governments to reflect the wholesale costs in tariffs or be ready to pay subsidies for any tariff shortfall.

The commission acknowledged that states that have assumed full regulatory oversight over their intrastate markets are now authorized to create and regulate transactions in their state electricity markets, saying this extends to the development of tariff methodologies that shall apply to end-use customers in their respective states.

This came as the power distribution and generation companies warned that states’ absolute power to determine tariffs begins when they start generating and transmitting electricity.

The NERC, in its notice on Thursday, cautioned, “As states do not have jurisdiction over the national grid and over electric power stations established under federal laws/operating under licences issued by the commission; they must holistically incorporate the wholesale costs of grid supply to their states without any qualification or deviation in their design of tariffs for end-use customers in order not to distort the dynamics of the market or be prepared to make a policy intervention by way a subsidy for any deviation in the tariff structure that distorts the wholesale generation, transmission and legacy financing costs in the Nigeria Electricity Supply Industry.”

NERC said no institution would take decisions that expose the national grid and wholesale electricity market to a financial crisis in contravention of express powers granted to them by the constitution.

“The commission’s attention has been drawn to the increasing stakeholders’ concerns on the Tariff Order (Order No. EERC/2025/003) issued by the Enugu State Electricity Regulatory Commission, to its Licensee Mainpower Electricity Distribution Limited that relies exclusively on electricity supply (generation and transmission) from the national grid.

“NESI stakeholders have expressed concern about the consequences of the reduction of tariffs for Band A customers in MEDL’s network area to N160.4 per kWh and the freezing of tariffs of customers in the other bands on the wholesale generation and transmission costs, along with the financing costs for legacy obligations in NESI. It is pertinent to state that the N160.4 per kWh was arrived at largely by reducing the current average Generation Tariff of N112.60 per kWh to NGN45.75, with an assumption of a subsidy component, a difference of N66.85 per kWh.

“Section 34(1) of the EA places a statutory obligation on the commission to create, promote and preserve efficient electricity industry and market structures, and ensure the optimal utilisation of resources for the provision of electricity and we are also aware that EERC as a sub-national electricity regulator also has a similar statutory obligation in their enabling law; and neither NERC nor EERC as responsible regulatory institutions would take decisions that expose the national grid and wholesale electricity market to a financial crisis in contravention of express powers granted to them by the constitution,” the Federal Government agency said.

It informed all stakeholders that the commission is currently engaging EERC on their tariff order as it relates to any perceived area of misinterpretation/misunderstanding on wholesale generation and transmission costs on their import of power from the national grid and grants further assurances of its unwavering statutory commitment that the electricity market will be made whole in terms of cost recovery in compliance with the laws of the Federal Republic of Nigeria.

Meanwhile, the Association of Nigerian Electricity Distributors and the Association of Power Generation Companies said the Enugu Electricity Distribution Company and other states contemplating tariff reductions should wait till they start generating and transmitting their electricity before slashing tariffs.

The Chief Executive Officer of ANED, Sunday Oduntan, told Band A customers in Enugu State not to rejoice yet, saying there can’t be a 20-hour power supply at N160 per kilowatt-hour.

On Sunday, the Enugu Electricity Regulatory Commission announced the reduction of the Band A electricity tariff from N209/kWh to N160/kWh, asking MainPower Electricity Distribution Company to implement this from August 1.

The decision has since sparked crises as generation and distribution companies accused the EERC of attempts to create more financial burden in the power sector, saying no state should impose more subsidy obligations on the Federal Government that is still owing N5.2tn of unpaid shortfalls.

While the ERRC said it did its calculations well before dropping the tariff to N160/kWh, Oduntan warned that no state has the power to determine the cost of electricity at the moment, stressing that the states can only align with the tariff order of the Nigerian Electricity Regulatory Commission, except if the value chain totally belongs to them.

Earlier in a statement, Oduntan raised the alarm over growing consumer resistance to electricity bill payments following the tariff cut by the Enugu State Electricity Regulatory Commission, warning that the move threatens to destabilise the country’s fragile power sector.

He disclosed that since EERC announced a reduction in Band A tariffs, customers in other states have begun to demand similar cuts, with some outrightly refusing to pay their electricity bills.

The Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, also shared the same sentiment. According to her, states cannot unilaterally fix tariffs because they do not produce electricity.

“The fact speaks for itself. The fact that EERC still regulates a product it does not produce at the state level, but from the wholesale market, they cannot unilaterally regulate that price,” she said.

Ogaji added that the EERC made reference to NERC’s tariff regulations, which assume a subsidy that she deemed imaginary because there is no written policy from the Federal Government stating that there is a subsidy, nor is there a financing plan to backstop the ever-growing and accumulating debts, which have impaired GenCos’ books.

“Their claim based on an imaginary subsidy is baseless. You can’t build something on nothing. Tariff documents are not child’s play. They form the fulcrum for many decisions, including business decisions, potential investors, and so on.

“This regulatory rascality will not be sustainable for decentralisation. Do you even have a justification for claiming a subsidy? Let’s assume there is one in a federal market, you have applied to be independent of? Can you eat your cake and still have it? How do you even claim this subsidy as a state? Unfortunately, we lack leadership in this sector,” she said.

Meanwhile, the EERC clarified that its recent tariff cut did not tamper with the prevailing cost of power generation in the country in any way. The commission maintained that, based on MainPower’s costs, there was no justification to keep the price of electricity for Band A at N209/kWh in the state.

In a statement by EERC’s Commissioner for Electricity Market Operations, Reuben Okoye, the agency maintained that although it inherited the current tariff regime, “the commission is focused on developing a sub-national electricity market that is transparent, accountable, reliable and sustainable and therefore will review utility costs of service to achieve its mandate to the people of Enugu.”

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Nigerian Jailed For Masturbating In Front Of Woman On UK Train

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A Nigerian man and registered sex offender, Babatunde Odutola, has been sentenced to prison in the UK after exposing himself and masturbating in front of a woman on a train heading to Manchester.

Odutola, 36, who has no fixed address, was sentenced to 44 weeks in prison at Manchester Magistrates’ Court on Monday, September 14, after pleading guilty to outraging public decency and violating a suspended sentence order.

The incident took place around 7 p.m. on Friday, September 11, on a train traveling through Cheshire towards Manchester Piccadilly railway station.

According to the British Transport Police, Odutola approached a woman on the train, looked her up and down, and became aggressive when she refused to engage with him.

He then exposed himself while sitting in a wheelchair and began masturbating while staring at the woman and telling her to “come over.”

A fellow passenger intervened and helped escort the distressed woman from the carriage. Police reports indicate that CCTV footage showed Odutola continuing to masturbate as other passengers walked through the carriage.

British Transport Police officers arrested him after the train arrived at Manchester Piccadilly. He was prosecuted and jailed within 72 hours of the incident.

Detective Constable Leonidas Christoforou of the British Transport Police stated that Odutola’s behavior was “terrifying” for the victim, whom he allegedly targeted while she was traveling alone.

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2027 Hajj: Saudi Arabia Rejects Nigeria’s Request For Additional Slots

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The National Hajj Commission of Nigeria (NAHCON) has announced that the Kingdom of Saudi Arabia has declined Nigeria’s request for an upward review of its 2027 Hajj allocation, leaving the country’s quota unchanged despite growing demand from intending pilgrims nationwide.

 

The Commission disclosed that it had formally engaged the Saudi Ministry of Hajj and Umrah, seeking additional pilgrimage slots to accommodate the increasing number of Nigerian Muslims desirous of undertaking the sacred journey and to address appeals from several state pilgrims’ welfare boards for enhanced allocations.

However, Saudi authorities communicated their inability to grant additional slots, citing capacity limitations, structural constraints within the holy sites, and the Kingdom’s policy of strict adherence to approved country quotas under the current operational framework.

Consequently, Nigeria’s allocation for the 2027 Hajj exercise remains fixed at 35,000 slots for government pilgrims and 15,000 slots for licensed tour operators, bringing the country’s total approved allocation to 50,000 pilgrims.

Commenting on the development, the Chairman and Chief Executive Officer of NAHCON, Ambassador Ismail Abba Yusuf, said the Commission fully understands the disappointment the decision may cause many aspiring pilgrims and state pilgrim boards that had hoped for additional allocations.

According to him, the Commission explored all available diplomatic and operational channels in pursuit of an increased quota but respects the final decision of the Saudi authorities.

“We appreciate the deep spiritual desire of many Nigerian Muslims to perform Hajj and understand the expectations of states and stakeholders seeking additional slots. While every effort was made to secure an upward review, the Saudi authorities have communicated their final position based on operational realities and capacity considerations,” Ambassador Yusuf stated.

The NAHCON Chairman urged state pilgrims’ welfare boards, agencies and licensed tour operators to make judicious and transparent use of their approved allocations while ensuring strict compliance with all timelines established by the Commission and the Saudi Nusuk platform.

He emphasized that the deadline for uploading the data of all prospective pilgrims for the 2027 Hajj exercise remains September 26, 2026, warning that no extensions would be granted under any circumstance.

“Kindly note that the deadline for uploading prospective pilgrims’ data remains September 26, 2026. We urge all partners, state pilgrim boards, tour operators and representatives to ensure that all required information is submitted before this date, as no extensions will be granted,” he said.

Ambassador Yusuf further advised intending pilgrims who may be unable to secure a slot under the approved 2027 allocation not to lose hope, revealing that preparations for the subsequent pilgrimage season have already commenced.

“Individuals who were unable to secure a slot for the upcoming Hajj are encouraged to register for the 2028 Hajj. The Commission has officially opened the registration portal for this period, and applications are now being accepted,” he added.

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Driver Raped By Two Women After Kidnapping Him For Ransom

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South African police have arrested five suspects after rescuing a 25-year-old e-hailing driver who was allegedly kidnapped, raped and held for ransom in Cape Town.

 

The South African Police Service (SAPS) said in a statement on Sunday that Steenberg police rescued the driver after he was allegedly raped by two female suspects and held at ransom by the group.

Police were alerted by the victim’s brother after the suspects contacted him and demanded R4,000 in cash for the driver’s release.

According to SAPS, the police used the victim’s vehicle tracker to locate him at Southampton Road in Heathfield, where he was rescued.

“Steenberg police rescued a 25-year-old e-hailing driver after he was raped and held at ransom by two female suspects and three males yesterday,” the police said.

The victim had reportedly met one of the female suspects the previous week through his e-hailing business.

According to police, the two exchanged telephone numbers and communicated throughout the week before arranging to meet.

“When he went to meet her, he was kidnapped by the suspects and the females raped him,” SAPS said.

Police subsequently arrested the two female suspects, aged 23 and 34, as well as three male suspects aged 16, 42 and 48.

The five suspects are expected to appear before the Wynberg Magistrate’s Court on Monday, September 14, 2026.

SAPS said they would face charges relating to the alleged kidnapping and rape.

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