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ELECTRICITY: As Power Sector Debt Rises Amidst Low Electricity Supply NERC Begs FG To Intervene

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The Nigerian Electricity Regulatory Commission (NERC) said it has 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.

This was contained in the 2023 fourth-quarter report, the latest, obtained by thecolumn.ng

 

According to the report, as of the quarter under review, electricity Distribution Companies also known as the DisCos, and four international customers serviced by the Market Operator, did not remit a total of ₦97.5bn 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 ₦81bn, while four international customers (Paras SBEE, Transcorp SBEE, Mainstream NIGELEC and Odu-Pani-CEET ), did not remit $12m (₦16.5 when converted using ₦1,367/$1 rate) invoice issued to them by the MO for services rendered in 2023/Q4.

 

This puts total debt by the DisCos and international customers at ₦97.5bn for the period under review.

A breakdown of the explanation of the debt by the DisCos, showed that in 2023/Q4, the cumulative upstream invoice payable by DisCos was approximately ₦270bn, consisting of ₦223bn for generation costs from the Nigerian Bulk Electricity Trading (NBET) company, and about ₦47bn for transmission and administrative services by the MO.

 

 

However, out of this amount, the DisCos collectively remitted a total sum of ₦188.7bn (₦156bn for NBET and ₦32.5bn for MO), with an outstanding balance of about ₦81bn. This translates to a remittance performance of about 70 per cent in 2023/Q4 compared to the 76 per cent (remittance of ₦158bn out of the total invoice of ₦208.7bn) recorded in 2023/Q3.

 

 

The total revenue collected by all DisCos in 2023/Q4 was ₦294.9bn out of the ₦399.7bn 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 2023/Q3 was ₦268bn, out of the ₦349bn billed to customers which translated to a 76 per cent collection efficiency. The 74 per cent collection efficiency recorded in 2023/Q4 is –2.77per cent lower than the efficiency recorded in 2023/Q3 (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 $12.02m issued by the MO for services rendered in 2023/Q4.

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

 

 

It also said that there were no remittances by bilateral customers against the cumulative invoice of ₦1.9m issued to them by the MO for services rendered in 2023/Q4.

 

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 ₦0.72bn (NBET) and ₦0.07bn (MO) invoices received in 2023/Q4.

“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 5000 megawatts (MW) despite the grid having a combined capacity of about 12,000 MW.

 

 

Experts have said Nigeria’s over 200 million populace requires at least 30, 000MW to attain sufficiency.

Despite even the meagre 5000MW power generation, the Transmission Company of Nigeria (TCN), has struggled to transmit same to the DisCos for onward distribution to end users.

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Lagos Govt Bans Permanent Use Of Dealer Number Plates

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The Lagos State Government has reiterated its prohibition on the permanent or everyday use of dealer number plates by motorists and vehicle dealers.

 

The Director, Public Affairs, Ministry of Transportation, Mrs Bolanle Ogunlola, said this in a statement on Sunday in Lagos.

Ogunlola warned motorists and vehicle dealers against using dealer number plates for purposes outside those permitted by law.

She said the Lagos State Transport Sector Reform Law, 2018, restricted dealer plates to specific, time-limited activities.

According to her, permitted uses include authorised test drives, vehicle inspections, vehicle delivery or collection, and movement of unregistered vehicles.

She said such movement must be directly from ports or authorised dealer premises to designated locations.

“Their use for private daily commuting, continuous operation on public roads, or on vehicles already sold is prohibited,” Ogunlola said.

She noted that the Vehicle Inspection Service (VIS) had apprehended 175 vehicles for violating regulations governing dealer number plates.

Ogunlola said the dealer plates recovered from the affected vehicles would be confiscated, while the vehicles would undergo further investigation.

She warned that vehicles operating with unauthorised, fake, obscured or improperly used registration numbers would face enforcement action.

According to her, sanctions include impoundment and prosecution under relevant traffic laws.

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Over 4,000 Abandoned Mine Pits In Plateau – Alake

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The Minister of Solid Minerals Development, Dele Alake, has said that more than 4,000 abandoned mine pits exist across Plateau State.

 

Alake said the pits, many of which were dug by former mining companies, posed environmental and safety challenges but could be converted into productive ventures through proper rehabilitation.

He stated this in a statement issued on Sunday by his Special Assistant on Media, Lara Owoeye-Wise, following the death of seven people in a collapsed mine pit at Kassa, Barkin Ladi Local Government Area of the state.

The minister described the incident as tragic and avoidable, warning artisanal miners against entering abandoned pits without the required licences and permits.

He urged miners to organise themselves into cooperatives and obtain necessary approvals to operate legally.

Alake said the large number of abandoned pits in Plateau was a legacy of the activities of the former Amalgamated Tin Mines Limited and its successor companies, Consolidated Tin Mines Limited and Nigerian Tin and Allied Products Limited.

He said the Federal Government had rehabilitated 59 abandoned mine pits, while introducing technology-driven measures to identify and assess thousands of others.

According to him, the ministry has entered into a public-private partnership to deploy Geographic Information System satellite mapping and Artificial Intelligence to locate and characterise the abandoned pits.

He said Plateau would be the pilot beneficiary of the initiative, which would also develop plans for the eventual reclamation of the sites.

Alake urged private investors to partner with the government to convert abandoned mine sites into productive ventures, including energy, tourism and fisheries projects.

He described public-private partnership as the “most proactive and fastest approach” to turning the abandoned pits into productive assets.

“The challenge before the state and the Federal Government is how to turn these potential pits of death into centres of joyful prosperity,” he said.

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Tinubu: No Leader Has Impacted Nigeria like Babangida

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President Bola Ahmed Tinubu has congratulated elder statesman and former military President, General Ibrahim Badamosi Babangida (rtd), on his 85th birthday, saying the ex Military leader has impacted Nigeria in ways no other leader has done.

 

President Tinubu disclosed this in a statement by Bayo Onanuga, his Special Adviser on Information and Strategy.

He also described General Babangida as an outstanding leader whose remarkable military career culminated in his leadership of the nation following the 1985 coup.

The President said “Like him or not, former President Babangida impacted Nigeria in ways no other leader has. His eight-year reign left enduring marks on our political, economic, and geographic landscape.

“He expanded the nation’s economy, established lasting infrastructure, and created several agencies and institutions that continue to serve the national interest. But for his foresight, wisdom, and sense of equity and fairness, many states in the federation might not exist today.”

The President noted that General Babangida’s name and legacy would remain indelible in Nigeria’s history because of his many contributions to national development.

“Even in retirement, living a quiet life at his Minna Hilltop residence in Niger State, General Babangida continues to offer valuable counsel and guidance to the nation. His advice and wise counsel remain an inspiration to younger generations”, the President said.

” I wish you continued grace, good health, and renewed strength. May Almighty Allah keep you with us for many more years to come,” the President added.

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