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ELECTRICITY: NLC, Manufacturers, CSOs Reject Electricity Tariff Hike.

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The Nigeria Labour congress, Manufacturers and some civil  society Organisations CSOs have kicked against the Federal Government’s 240 per cent hike in the tariff payable by electricity users enjoying a 20-hour power supply.

 

 

They insisted on the electricity subsidy, warning that its removal would send manufacturers out of business and worsen inflation.

 

 

The subsidy on electricity has been withdrawn completely from the tariff payable by power consumers in the Band A category, who constitute about 15 per cent of the total number of power users across the country.

 

 

The government announced the hike in the electricity bill at a press briefing in Abuja by NERC on Wednesday, adding that those affected would now pay a tariff of N225 per kilowatt-hour, up from the previous rate of N68/kWh, representing about 240 per cent increase. The government declared that the decision took effect from Wednesday (yesterday).

But the organised private sector, Nigeria Labour Congress, as well as the Trade Union Congress, kicked against the hiked tariff for power users, whether it was for those on Band A or not.

 

 

They argued that the hike in tariff would send manufacturers out of business, worsen inflation, and stifle small and medium enterprises, adding that no place in Nigeria enjoyed up to 20 hours of power supply daily.

 

 

Band A power users are those who get up to 20 hours supply of electricity daily and paid about N68/kWh before the implementation of this latest order by the Federal Government through NERC.

The Vice Chairman of NERC, Musiliu Oseni, told journalists in Abuja that the government could not sustain subsidy on electricity and had to devise ways to cut down the about N2.9tn that would be spent on power subsidy this year.

 

 

He explained that customers on Band A represented 15 per cent of the over 12.82 million registered electricity consumers across the country, adding that the commission had also downgraded some customers on this band.

 

Discos feeders downgraded

 

Oseni said the downgrading of some Band A customers to Bands B and C was because of the non-fulfillment of the required hours of electricity provided to them by power distribution companies in their respective franchise areas.

 

He said NERC was able to discover this after deploying technology to ascertain the rate of power supply from the feeders of the Discos meant for Band A power users.

 

“And on that basis, the commission has decided that many of the feeders that the Discos brandish as Band A feeders are not meeting the Band A service, and as such the feeders have been downgraded immediately as a way of protecting consumers.

 

 

“We have over 3,000 Discos feeders. There are over 875 Band A feeders, but upon reviewing the feeders’ performance, the commission has reduced it to under 500 feeders now, which qualify as feeders that currently meet the 20-hour average service.

 

 

“So when you look at that concerning the over 3,000 feeders that we have, it shows that we have just 17 per cent of the total feeders of the distribution companies now qualified as Band A feeders.

 

 

“And when you look at where those 17 per cent feeders critically, it is estimated that just under 15 per cent of customers are benefiting from them, or are currently connected to those feeders, meaning that we have 17 per cent of the total distribution feeders or less than 15 per cent of customers currently benefiting from the service,” Oseni stated.

 

 

He stressed that based on this, “the commission has decided that only the 17 per cent feeders and less than 15 per cent customers will be affected by any rate increase that the commission will approve for the distribution companies.

 

 

“Therefore the commission has issued an order, which is titled April 2024 Supplementary Order, which is supplementary to the order issued in December 2023 effective January 2024.

 

 

“So the April Supplementary Order takes effect from today and in that order, the commission has approved a rate review of N225/kWh for just under 15 per cent of the customer population in NESI. So that means that less than 15 per cent of the customers will be affected.”

 

 

He further noted that many customers previously classified as Band A power users would not be affected because they hardly get a daily average power supply of up to 20 hours.

 

 

Oseni said consumers affected by the latest tariff hike would henceforth pay their power bills completely by themselves, as the applicable subsidies on Bands B, C, D, and E would not be enjoyed by them.

He noted that these Band A customers had almost all the facilities required for the supply of electricity to their domains for 20 hours daily.

 

 

He, however, noted that about 20 per cent of these Band A customers were not metered, and explained that they would now receive a high concentration in terms of metering by the Discos.

 

 

“This, however, does not mean that customers in other bands have been neglected, no. Rather, the Discos will have to provide meters to this category of Band A customers fast, since their tariff is now N225/kWh,” the NERC vice chairman stated.

 

 

On the effect of subsidy in the sector, Oseni said it had been affecting the payments being made to power generation companies, adding that this “led to a situation whereby the Gencos were unable to make payments for gas.

 

 

“That also resulted in the reduction of gas supply for power generation because there is competitive demand for gas. You have so many other companies that require gas and can pay for it.

 

 

“So these issues have compounded the performance of the sector and that led to the dip in power generation that we experienced recently.”

 

 

He further noted that the recent increase in the price of gas for power generation from $2.28/mmbtu to $2.42/mmbu also warranted a hike in the cost of tariff, particularly for Band A customers.

 

Labour kicks

 

However, the NLC described the decision of the Federal Government to hike the electricity tariff as insensitive and callous.

 

 

The NLC’s spokesman, Benson Upah, made this known in an interview with one of our correspondents.

 

He said, “The government’s decision is not only insensitive, it is callous. It further pauperises consumers, especially workers whose wages are fixed and insufficient.

 

 

“It similarly makes the operating environment more hostile for manufacturers with the potential for an astronomical rise in the cost of goods and services or the worst case scenario, more closures and loss of jobs.

 

 

“The only people who stand to gain from this mindless social violence against the people are the World Bank and IMF (International Monetary Fund).”

 

 

On their part, the Trade Union Congress said the Federal Government was only concerned about revenue generation to the detriment and survival of the citizens.

 

The TUC’s Deputy President, Tommy Etim, s said, “The government is being insensitive to the plights of citizens. I think they believe so much in revenue generation to the detriment of the survival of the citizens. Let me state that the hike in the electricity tariff from N66/kWh to N225/kWh for those who enjoy electricity supply for 20 hours per day is unacceptable and a recipe for individual unrest.

 

 

“This shows clearly that Nigeria is not ready for 24-hour electricity supply. As we speak, you cannot point anywhere in Nigeria that people are enjoying 20 hours of electricity supply, not even at the airport where it is expected for economic reasons. I think that the government has goofed again, especially at this time of socioeconomic challenges where the cost of living is very exorbitant and the salary of the workers remained static.”

 

 

Also reacting to the development, members of the organised private sector said the hike would lead to job losses, higher cost of operations, and inflation, among other challenges.

 

 

The President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, said companies would start laying off workers.

 

 

“Well, there would be losses for companies that can’t cope, but in terms of percentage, it is very early to make those projections. We are hoping that members would go back to the drawing board, look at their projected cost of operations, and look at the level of losses they can accommodate or the reduction of profit they can accommodate.

 

 

“And what then happens is that they would have to make some decisions about scaling down operations to cut their losses, which may involve firing people. They may also try to increase prices where their products have a very strong demand. But the bottom line is that we are going to see a lot of our members recording more losses or reduced profits. So that is the primary thing,” Idahosa said.

 

 

He added, “They may decide to fire people that are not critical to operations. They may start with the non-essential staff. A lot of companies are now going on to part-time, offsite, and temporary employment and outsourcing jobs instead of hiring full-time workers. So you are going to see the loss of full-time jobs, loss of part-time jobs, and even the halt in employment.’’

 

 

Idahosa said the move would rapidly increase the operational cost of LCCI members.

 

 

Also, the Head of Corporate Affairs, Small and Medium Enterprises Development Agency, Moshood Lawal, said the hike in tariff would warrant a high rate in the running of businesses.

 

 

“It is already happening now. Small businesses are already experiencing a high rate of running businesses. So it will lead to more higher cost of running a business and prices of commodities are going to go up.

 

 

“We are hopeful that our businesses will survive. We have over the years learned how to be resilient because what we normally teach them is that whatever it will cost to run your business, you build it into the final cost.’’

 

 

The President of the Manufacturers Association of Nigeria, Francis Meshioye, described the development as “unpleasant”, but said the body would issue a statement on it.

 

 

The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Dele Kelvin Oye, warned that the new electricity tariff hike would lead to higher costs of doing business.

 

 

In a statement, he said, “While the commission’s efforts to enhance metering and protect consumers from over-billing are commendable, the tariff hike, influenced by the rise in natural gas base prices, has implications for the cost of operations across businesses that already face a fragile economic recovery.

 

“We understand the necessity of aligning energy costs with market realities to foster sector investment and sustainability. Nevertheless, we stress the importance of considering the broader economic impact on industries and the timing of such adjustments.

 

 

“NACCIMA continues to advocate for a transparent and gradual approach in policy implementation, emphasizing the need for broad stakeholder engagement to mitigate adverse effects on business competitiveness and consumer prices.’’

 

 

On its part, the Centre for the Promotion of Private Enterprise, in a statement signed by its Chief Executive Officer, Muda Yusuf, said that the power sector issue had become a major conundrum in the economy.

 

 

It added that while tariff review was an inevitability, a 300 per cent increase in one fell swoop is difficult to justify.

 

 

The organisation said, “There is a major funding and liquidity crisis which is posing a significant risk to investments in the electricity value chain.

 

 

“Costs across the chain have been rising as a result of the multiple macroeconomic headwinds. Meanwhile, the system is not generating the desired liquidity to match the escalating costs.”

 

 

The centre also argued that beyond tariff hikes, some fundamental issues need to be addressed in the electricity value chain.

These issues, it said, are issues of technical and commercial losses which are yet to be addressed.

 

 

“These are inefficiencies costs that consumers are compelled or expected to pay for as part of the cost recovery argument. And these costs are in billions of naira.

 

 

“There is also the exploitative practice of estimated billing. Millions of electricity consumers are yet to be metered,” it added.

 

 

 

 

 

 

 

 

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VIDEO: Uber Driver Nabbed After Fleeing with iPhone 16 in Lagos

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An Uber driver has been traced to his home after allegedly absconding with an iPhone 16 entrusted to him for delivery, following the cancellation of a trip midway in Lagos.

An X user, Ashake, who tweets as #Molayoo_, raised the alarm on Saturday, tagging Uber in her post with screenshots of the booking.

“Uber, one of your riders in Lagos, Nigeria, picked up a package(an iPhone 16) from Egbeda to be delivered to Ikeja, and he cancelled the ride midway, and he’s been unreachable ever since!

“His name is Augustine Adimabua. This is someone’s business, fgs! We need the package,” she wrote.

The situation escalated after the driver was reportedly tracked to his location.

Providing an update on Thursday, Ashake noted that the driver has been caught. She claimed that the driver sold the phone for N400,000.

“He has been caught and handed over to the right authorities. Thank you to every single one of you who made this possible.

“He sold iPhone 16 of over 1m, he sold it for 400k,” she wrote.

In the accompanying videos, the driver agreed that he collected the phone.

“I agree he gave me an iPhone 16, 256 GB, worth 1.2million naira”, he said

He, however, claimed that the phone had been stolen after being questioned about it.

“Where is the phone? Where is the iPhone 16?” one of the men queried.

“The phone was stolen”, he responded.

The confrontation quickly turned heated, with the driver being accused of dishonesty while appearing visibly uneasy, and a woman said to be his wife shocked by the situation.

The video has since gone viral, with individuals recalling personal experiences of stolen package deliveries and others condemning the act.

PUNCH reported in 2025 that delivery delays and thefts cost Nigeria’s logistics sector billions annually due to poor visibility and a lack of journey control systems.

Earlier in 2026, an investigation into Nigeria’s food delivery industry revealed a rise in food delivery theft, missing items and tampered packaging by dispatch riders, eroding customer trust in the fast-growing sector.

Watch the video below:

 

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Dangote Group Plans 650,000bpd Refinery Project in East Africa

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Africa’s richest man, Aliko Dangote, has announced plans to build a 650,000 barrels-per-day refinery in East Africa, mirroring the scale of his flagship facility in Nigeria, as part of a broader push to deepen industrial capacity across the continent.

Dangote made the disclosure at a high-level summit in Nairobi on Thursday, where African leaders, financiers, and industry stakeholders gathered to discuss the continent’s growing energy and infrastructure needs.

Addressing Presidents William Ruto and Yoweri Museveni, Dangote said the refinery project would depend on strong government backing and policy consistency.

 

“That’s why, as a group, we have now launched an initiative where, between now and 2030, we’re investing $40 billion in various fields,” he said

“Even now, I can give a commitment to the two presidents who are here that if they support the refinery, we will build an identical one to what we have in Nigeria—650,000 barrels.”

He emphasised that the proposal is still at an early stage but expressed confidence in its feasibility.

When asked about the feasibility of the project, the industrialist said it will “definitely” work, adding that “There’s nothing that can stop it.”

Push for Self-Sufficiency

Dangote is Africa’s richest man.

 

Dangote used the platform to argue that Africa must move away from its long-standing dependence on imports and instead build domestic industrial capacity.

“We export raw materials, which means when you export raw materials, you are exporting jobs, and when you import, you are importing poverty because you are creating jobs out there, not here on the continent,” he said.

He stressed that industrialisation—particularly in refining, fertiliser production and petrochemicals—is critical to reversing that trend and creating jobs on the continent.

The proposed East African refinery forms part of a wider $40 billion investment plan by his group between now and 2030, targeting key sectors that underpin economic transformation.

Backdrop of Growing Fuel Deficit

Dangote’s announcement comes as the Africa Finance Corporation (AFC) warned that the continent could face an 86 million tonne fuel shortfall by 2040.

According to the AFC report presented at the summit, Africa currently imports over 70 percent of its refined fuel and spends about $230 billion annually on essential imports, including fuel, food, and industrial goods.

The report projects that fuel import demand will rise from 74 million tonnes in 2023 to 86 million tonnes by 2040—equivalent to nearly three refineries the size of Dangote’s Lagos facility.

Leaders Call for Shift in Strategy

 

President William Ruto echoed Dangote’s position, warning that Africa must rethink its economic model.

“Our ambitions will remain unrealised if we continue to depend on external capital whose primary interest is securing raw materials,” Ruto said, adding: “We cannot continue to export raw materials and import finished products made from them.”

The summit also highlighted vulnerabilities in Africa’s energy systems, particularly exposure to global supply shocks and infrastructure gaps across the continent.

A Broader Industrial Vision

Beyond refining, Dangote pointed to ongoing efforts to scale fertiliser production and petrochemical capacity across Africa, including plans to expand urea output and establish blending plants in underserved regions.

“With the support of the government, there’s nothing that is impossible,” he said, expressing confidence that Africa can achieve self-sufficiency in key industrial inputs.

For Dangote, the refinery proposal represents a continuation of a larger vision—to reposition Africa from a net importer to a global industrial player.

“Let us not be scared… It is possible. Africans can do it,” he said.

As discussions continue, the proposed East Africa refinery could mark a significant step toward addressing the continent’s looming fuel deficit while advancing its long-term goal of economic independence.

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FG Increases allowances, boosts welfare for civil servants

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The Federal Government of Nigeria has approved a sweeping increase in peculiar allowances and other welfare benefits for civil servants, in a move aimed at improving take-home pay and boosting morale across the public service.

 

The announcement was made on Friday by the Head of the Civil Service of the Federation, Didi Walson-Jack, during a press briefing in Abuja, where she outlined key reforms endorsed by the Federal Executive Council.

According to Walson-Jack, the review affects workers under both the Consolidated Public Service Salary Structure (CONPSS) and the Consolidated Research and Allied Institutions Salary Structure (CONRAISS), ensuring a broad-based impact across all cadres.

She said the revised peculiar allowances have been structured to reflect across all grade levels, resulting in a meaningful increase in earnings for both junior and senior officers.

In addition, the government approved an upward review of several key allowances, including duty tour allowance (DTA), estacode, and book allowance. Walson-Jack noted that virtually all allowances listed under the Public Service Rules have now been revised.

A major highlight of the reform is the approval of 100 percent Duty Tour Allowance for civil servants attending approved training programmes, regardless of whether travel is involved.

“Even if you are based in Abuja and attend training within Abuja, you are entitled to full DTA,” she said.

Beyond salary-related adjustments, the government also introduced a new exit benefit scheme for retiring civil servants under the Contributory Pension Scheme. The scheme provides 100 percent of a retiree’s total annual emoluments as an exit package, in addition to their pension, effective January 1, 2026.

Walson-Jack described the move as a step toward ensuring dignity in retirement, stressing that no public servant should leave service without adequate financial support.

The government also confirmed the operationalisation of the Employee Compensation Scheme, designed to provide financial protection for workers who suffer job-related injuries or death.

The reforms come amid growing calls from labour unions for improved welfare, as rising living costs continue to put pressure on workers. Analysts say the combined measures could significantly enhance financial stability for civil servants and improve overall productivity in the public sector.

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