At a properly monitored election that took place at the Bar Centre, Iyaganku, Oluwatomiwa James Fadeyi, was elected Chairman. He polled 34 to defeat his closest rival, Awere Bolanle Ajoke, who scored 12.

Fadeyi was the President of Adeleke University Students Association, Ede, in his University days.

Others elected to serve with him are: for the position of Secretary, Kayode Kareem; Social Secretary, Bukola Onyewenu and Publicity Secretary, Damilola Israel Olujimi.

Also elected to serve on the executive committee are: for the position of Vice-Chairman, Taiwo Oladipupo; Assistant Secretary, Nifemi Bamisaye and Financial Secretary/Treasurer, Aminat Amoo.

A release signed by Chairman of the electoral Committee, Kehinde Sennuga and Secretary, Basit Oluwatimileyin Busari said the new executives were elected with effect from today.

Fadeyi is Head of Chambers at Adebayo and Gbadamosi Chambers..

The 17th edition of the annual Nigeria DigitalSENSE Forum (NDSF) on Internet Governance for Development concluded on a high note Thursday, at the Welcome Centre Hotels, Lagos, culminating in the prestigious DigitalSENSE Africa Hall of Fame Awards.

This landmark edition, themed “Sustaining WSIS Vision with Multistakeholder Synergy in Nigeria,” served as a vibrant backdrop for celebrating the pioneering individuals and corporate giants anchoring the nation’s digital evolution.

The high point of the forum was the official induction of industry titans into the DigitalSENSE Africa Hall of Fame; an elite circle reserved for trailblazers who have dedicated decades to defending digital rights, shaping technology policy, and building critical national infrastructure.

Dr. Olusola Teniola, who masterfully presided over the day’s proceedings as the Forum Chairman, was received into the Hall of Fame to a resounding ovation. A veteran with over 32 years of global technology experience, Dr. Teniola, currently the Director of Strategic Business Initiatives at ipNX Nigeria and former President of the Association of Telecommunications Companies of Nigeria (ATCON); was honored for his relentless advocacy in broadband expansion, internet affordability, and his steadfast guidance within Nigeria’s multi-stakeholder space.

Joining him in the Hall of Fame was the highly respected Ebeledike, whose strategic contributions to infrastructure resilience and ecosystem sustainability were formally enshrined. The induction celebrates a legacy of deep institutional dedication, recognizing leadership that successfully bridges the gap between complex digital policy and grassroots national development.

In a deeply emotional and poignant segment of the ceremony, the forum paid a special posthumous tribute to the late Gbolahan Awonuga, the beloved former Executive Secretary of the Association of Licensed Telecoms Operators of Nigeria (ALTON).

Recognized for his foundational contributions, unparalleled dedication, and decades of structural service to the telecommunications sector, the special posthumous honor was met with immense reverence by industry leaders. The organizers noted that Awonuga’s enduring legacy as a bridge-builder between operators and regulators remains a vital cornerstone of Nigeria’s modern digital infrastructure footprint.

In the corporate categories, the Nigeria Internet Registration Association (NiRA) emerged as a standout winner. Charged with managing Nigeria’s country-code Top-Level Domain (.ng), NiRA was named the ‘Custodian of the Decade’ in recognition of its monumental strides in digital sovereignty and cybersecurity. The organizers praised NiRA’s leadership for aggressively localizing Nigeria’s online identity, lowering barriers to domain acquisition, and fortifying the underlying Domain Name System (DNS) infrastructure against evolving global threats.

Simultaneously, telecom giant MTN Nigeria was honored with the DigitalSENSE Africa 2026 Mobile Inclusion and Connectivity Award. The accolade recognizes MTN’s unmatched contributions to expanding the Nigerian telecommunications landscape, bridging the digital divide, and ensuring millions of citizens are linked to the digital economy.

Adding to the stellar corporate honors, infrastructure giant Digital Realty was recognized with the DigitalSENSE Africa 2026 Infrastructure Backbone Award: Digital Realty Nigeria. The milestone award highlights Digital Realty’s foundational role in scaling Nigeria’s cloud readiness, anchoring local data hosting capabilities, and providing the robust data center framework necessary to power a secure, resilient African internet ecosystem.

Reflecting on the significance of this year’s awards, Ogbuefi Remmy Nweke, Lead Convener of NDSF and Group Executive Editor of ITREALMS Media Group, noted that the 2026 honors list represents the perfect intersection of regulation, infrastructure, and identity.

“Achieving true digital trust requires honoring the people who build the networks and the institutions that protect our identity on those networks,” Nweke stated. “Dr. Teniola, Ebeledike, MTN, Digital Realty, the late Gbolahan Awonuga, and the team at NiRA embody the exact multi-stakeholder synergy required to keep the WSIS vision alive and thriving in Nigeria.”

The 2026 NDSF enjoyed robust support from institutional heavyweights and industry pillars, including the Nigerian Communications Commission (NCC), IHS Nigeria, Digital Realty, Nigeria LNG Limited (NLNG), NiRA, the Association of Licensed Telecoms Operators of Nigeria (ALTON), the Internet Society (ISOC) Nigeria Chapter, the Guild of Corporate Online Publishers (GOCOP), and the Nigeria Information Technology Reporters Association (NITRA).

With this successful outing, the forum has once again solidified its position as the ultimate barometer for progress in Nigeria’s digital economy; celebrating foundational triumphs while actively mapping out the policy breakthroughs of tomorrow.

Fadairo, in a letter to the Chairman of Ogun State All Progressives Congress (APC) and his (Fadairo) colleagues at the Apex Council of Ifo local government of the party, retracted the endorsenent and tendered unreserved apology to the eadership and entire members of the party in the state.

“I write to inform you regarding the statement credited to me on the alleged endorsement of Hon Ladi Adebutu, the governorship candidate of Peoples Democratic Party when he paid me a visit in my private residence in Abeokuta. I wholeheartedly retract the statement and tender my unreserved apology to our great party, the All Progressives Congress”, Fadairo said.

the elder statesman equally assured of his loyalty to the party, stressing that he would work round the clock alongside other members to ensure victory for the APC in the state and national elections.

He equally apologized to Ogun State Governor, Prince Dapo Abiodun, pointing out that the incident looked like mystery to him, explaining that such conduct was not in his character.

“I also want to assure you that I remain a loyal member of the party, All Progressives Congress, and will work round the clock alongside other members across the state towards the victory of the party in the forthcoming poll. Once again, I apologize on the unfortunate and mix up incident, which still look like mystery to me”, he wrote.

As part of preparations for the projects, the Office of Infrastructure in the Ministry of Works and Infrastructure held a stakeholders’ engagement meeting with residents and other affected parties to discuss the scope of work, expected benefits, and possible disruptions during construction.

Speaking at the meeting, the Special Adviser to the Governor on Infrastructure, Mr. Olufemi Daramola, represented by the Permanent Secretary, Office of Infrastructure, Mr. Tokunbo Oyenuga, urged residents to cooperate with the government to facilitate the timely completion of the projects.

According to him, the roads will be reconstructed with concrete pavement technology and complemented with solar-powered street lighting and other modern infrastructure aimed at improving durability, safety, and traffic flow within the estate.

He added that the Ministry would continue to engage stakeholders throughout the project cycle to ensure effective implementation and sustainability of the infrastructure. He also advised property owners to adhere to approved building limits and avoid encroaching on road setbacks.

Responding on behalf of residents, Chairman of the Ikeja GRA Residents Association, Mr. Muiz Banire, represented by Mr. Ade Atobatele, commended the state government for addressing critical infrastructure needs in the area.

He noted that improved road infrastructure would enhance mobility, support economic activities, and contribute to the overall development of the state.

While expressing support for the initiative, he appealed to the government to ensure the timely completion of the projects to minimise disruptions to residents and businesses.

“We urge the government to ensure prompt completion of the road projects to minimise the hardship that residents and businesses may experience during construction. We assure the government of the maximum cooperation of residents towards the success of the projects,” he said.

The contractors handling the projects assured stakeholders of their commitment to delivering the roads on schedule, describing the works as an investment in community growth and long-term development.

Stakeholders at the meeting also called on the government to address concerns raised during the engagement process to ensure the successful execution of the projects.

Wike stated this in Abuja on Thursday, during the inauguration of the full-scope development of FCT Highway 105, from Airport Expressway to Kuje Junction.

Tinubu was represented by Vice President Kashim Shettima to celebrate his third year in office.

The minister said that the dual development of the Abuja city centre and the satellite towns, including hard to reach communities by the Tinubu administration was unprecedented.

He described the government as simply an “institution that provides basic infrastructure and visible facilities that improves the quality of life of the people”.

“Your Excellency, history will be on your side for what your administration has done for the satellite towns in FCT.

“I want to say to anybody, when people ask, ‘where is the government?’ tell them Kuje road is government; when they ask, ‘where is government?’ say Kuje to Gwagwalada Road is the government,” he said.

He said what the Tinubu administration did in the first six months in office was to dualise the road from Tipper Garage to LEA Secretariat in Kuje.

“But the challenge was, how do you come into Kuje? Even if you go through Gwagwalada, you will stop somewhere you can’t pass,” he said.

He pointed out that before the construction of the FCT Highway 105, there was no safe and smooth road to Kuje.

He said: “The road was not in existence. It was a death trap. It was safe for kidnappers and hooligans trying to molest, harass citizens and residents of Kuje.

“We may think, oh it’s an ordinary road, anybody can do it. If that was so, they would have done it.

“This is one road that I never dreamt of, that today, we will come to inaugurate. It was a very, very difficult road. In fact, it became a political road.

“Your Excellency, today I feel so happy. If there is anything that makes me very happy today is that we are inaugurating this particular road”.

He explained that the completed project, which was awarded in 2022 followed an appeal by Kuje traditional rulers, who requested that the project be resuscitated and completed.

He added that the traditional rulers also requested the dualisation of Kuje to Gwagwalada, which is being executed in phases with the first phase ready for inauguration.

The minister amplified Tinubu’s call on residents to pay ground rents and other statutory fees to enable the FCT Administration extend the highway to Nasarawa state.

While inaugurating the project, Tinubu said: “When I appointed Wike, I did so because he delivers.

“Where there were delays, we brought political will and where there were obstructions, we paid compensation because we respect the law and value progress.

“Beyond the concrete and asphalt, these projects speak to a larger vision. The Renewed Hope Agenda is not just for the city centre. True democracy must prevail at the grassroots.

“It must prevail in Kuje and the commuter coming from or going to Kuje must feel it. Every Nigerian must feel it.

“To the FCT minister, you have proven once again that when we give a task to a performer, the results speak for themselves”.

Earlier, Mr Richard Dauda, acting Executive Secretary, Federal Capital Development Authority, explained that the FCT Administration awarded the contract to Arab Contractors Nig. Ltd in 2022.

Dauda said that the FCT Highway 105 is a key regional road that traverses the FCT right from the Murtala Muhammed Expressway, down to the south to connect the Abuja-Abaji-Nasarawa Road in the southern part of the FCT.

He said that the 76-kilometre road is planned to link other future federal roads to the FCT and other parts of the country through Nasarawa State.

He however said that the current scope, a six lane 8.6-kilometre road, from the Airport Expressway to Kuje was the first stage of the full development of the highway, with other stages to follow in due course.

“The scope of works for this project includes the construction of about 8.6 km of two main carriage ways, each of three lanes in both directions, making it a six-lane dual carriage way.

“The completion of this project has greatly reduced the travel time, increased circulation and opened up the districts in Kuje – Wawa District, Giri District, and the interconnection to the Airport Expressway.

“It has also improved security in the area as well as improved the socioeconomic lives of the residents, in addition to other inherent benefits which have attracted significant investments in this area.

“The road will also serve as an alternative road to the Gwagwalada and the Abaji-Abuja-Lokoja Road when completed,” he said.

According to a statement issued by the spokesperson of the Ministry of Foreign Affairs, Kimiebi Ebienfa, a special evacuation flight operated by Air Peace Airline arrived at the International Wing of the Murtala Mohammed International Airport, Lagos, on Thursday at 10.25 a.m.

The nationals were escorted by officials of the Nigerian Mission in South Africa, led by the Acting High Commissioner, Amb. Temitope Alexander Ajayi.

They were officially received at the airport by the Minister of State for Foreign Affairs, Amb. Sola Enikanolaiye, on behalf of the Federal Government.

The Minister said the evacuation of the 258 nationals demonstrated Federal Government’s commitment to the welfare and safety of Nigerians abroad.

Addressing the returnees, Enikanolaiye said that the government would not tolerate subjecting Nigerians to attacks and harassment wherever they might be.

He commended effective coordination of the process by the High Commission of Nigeria in Pretoria and urged all Nigerians in South Africa to remain law-abiding, vigilant, and report any threats to the Nigerian mission.

“The Federal Government remains fully engaged with the South African authorities at the highest levels to ensure protection of Nigerian nationals and to address the root causes of these unfortunate incidents,” he said.

He noted that the evacuation was coordinated by the Ministry of Foreign Affairs in collaboration with the Nigerian High Commission in Pretoria,

Other stakeholders include the Federal Ministry of Humanitarian Affairs, Ministry of Aviation, Federal Ministry of Health, Nigeria Immigration Service, and security agencies, according to him.

“This exercise underscores the government’s proactive and decisive response to protect Nigerians’ lives and dignity in the face of violence and intolerance.

“No Nigerian should live in fear simply because of their nationality,” he said.

He said that the evacuation did not signal defeat but showed the proactive and citizen-centred foreign policy of the President Bola Tinubu administration.

“More flights carrying returnees are expected to arrive in the country in the coming days as the evacuation exercise continues,” he said.

According to him, the returning nationals are currently undergoing the process of documentation, profiling and necessary medical checks.

He said that they would be provided with temporary accommodation before reuniting them with their families.

Chairman of Access Holdings, Mr Aigboje Aig-Imoukhuede, disclosed this at the company’s 4th Annual General Meeting (AGM) held in Lagos.

Aig-Imoukhuede said the group’s shareholders’ funds rose by 15.1 per cent from N3.76 trillion in 2024 to N4.33 trillion, strengthening its capital base.

He noted that total assets increased by 24.2 per cent to N51.56 trillion from N41.49 trillion, while customer deposits grew by 53.4 per cent to N34.56 trillion.

According to him, the group recorded a profit before tax of N1.007 trillion, representing a 16.2 per cent increase and reflecting the strength of its core earnings and diversified business model.

He said returns moderated during the period, with Return on Average Equity (ROAE) stood at 18.4 per cent and Return on Average Assets (ROAA) at 1.6 per cent.

“The defining test of a financial institution is not merely its capacity for growth, but its ability to grow profitably, sustainably, and with discipline over time.

“Our 2025 performance reflects a deliberate approach to strengthening the institution’s long-term fundamentals while maintaining strong financial results,” he said.

The chairman noted that the group took a prudent decision during the year to accelerate the recognition of legacy exposures and exit regulatory forbearance positions, resulting in elevated impairment charges.

Mr Aigboje Aig-Imoukhuede, Chairman of Access Holdings during the group’s Annual General Meeting held on Wednesday in Lagos

He explained that the move was aimed at strengthening the balance sheet and enhancing long-term resilience rather than pursuing short-term earnings optimisation.

“Periods of volatility often reveal more about an institution than periods of uninterrupted growth.

“Our focus remains on building a business that is not only growing but improving in the quality and sustainability of its earnings,” he said.

Aig-Imoukhuede said Access Holdings continued to evolve beyond traditional banking into a diversified financial services ecosystem, with growing contributions from its investment management, insurance, and technology-driven businesses.

He listed key growth subsidiaries as Access ARM Pensions, Access Insurance Brokers, Oxygen X Finance, and Hydrogen Payments, noting that they were expanding the group’s presence in digital finance, consumer lending, and payments.

According to him, the group’s transformation was anchored on an “ideas-to-ventures” strategy designed to position Access Holdings as a platform for innovation and future growth.

Looking ahead, Aig-Imoukhuede said: “The strategy, from scale to value, reflects the natural evolution of our journey. Scale created opportunity; value creation is how we fully realise it.”

The chairman noted that while the group continued to generate strong returns, closing the gap between returns and cost of equity remained central to unlocking shareholder value.

He also acknowledged the existence of significant unrealised value within the group’s international subsidiaries, with a clear emphasis on improving market recognition of this intrinsic value.

Aig-Imoukhuede addressed shareholder concerns regarding dividend payments, clarifying that the non-payment of dividends was driven by regulatory alignment and compliance considerations within the banking subsidiary.

He reaffirmed that this position does not reflect diminished earnings capacity but rather aligns with supervisory expectations and prudent capital management.

He assured shareholders of the board’s commitment to resuming dividend payments as soon as regulatory conditions are satisfied.

“Our approach is clear: capital retained today must translate into value delivered tomorrow and sustainable returns to our shareholders,” he said.

The group reiterated its commitment to sustainability as an integral part of its strategy, advancing financial inclusion, supporting SMEs, and investing in education, the arts, and the creative economy as drivers of long-term economic and societal value.

Mrs Bisi Bakare, National Coordinator of the Pragmatic Shareholders Association of Nigeria, commended the board and management for the company’s performance.

Bakare expressed optimism that the growth trajectory would be sustained.

She also praised the group’s efforts in promoting gender diversity across its subsidiaries and expanding its international footprint.

Similarly, Mr Aliu Mohammed of the Trusted Shareholders Association of Nigeria lauded the company’s financial discipline, citing the growth in total assets, customer deposits, and revenue as evidence of sound management.

Also, Mr Sunny Nwosu, National Coordinator of the Independent Shareholders Association of Nigeria, commended the board and management for what he described as a historic performance.

Nwosu expressed hope that the company would declare an interim dividend before the end of the year to further reward shareholders.

The Permanent Secretary, Ministry of Interior, Magdalene Ajani disclosed this in a statement on Thursday in Abuja.

Ajani said that the Minister of Interior, Dr Olubunmi Tunji-Ojo, made the declaration on behalf of the federal government.

Tunji-Ojo reaffirmed the federal government’s commitment to the preservation of democratic ideals, rule of law, transparency, accountability and inclusive governance.

He assured that the ministry in collaboration with relevant security agencies would continue to take appropriate measures in maintaining and strengthening Nigeria’s internal security.

The minister noted that a secured and stable environment was essential to democracy and national development.

He urged Nigerians to see the holiday as an opportunity for civic reflection.

“As we mark this historic day, every Nigerian is encouraged to remain law-abiding, uphold the institutions that sustain our democracy, and remember that the strength of any democracy lies ultimately in the character of its citizens,” he said.

He also said that June 12 every year remained a significant day in Nigeria’s history in honour of the courage, resilience and sacrifices of Nigerians whose efforts made democratic governance possible.

“Their legacies continue to inform the values and responsibilities of the Nigerian state,”Tunji-Ojo added.

Nigeria’s electricity regulator triggered a big tariff shock in April 2024. It increased rates for some consumers by over 240%, citing the cost of producing and delivering power.

The regulator classifies consumers into five bands, A through E, based on how many hours of power their local distribution feeder receives each day. Band A gets 20 hours or more and Band E just 4-7 hours. The tariff changes primarily affect Band A customers. Their tariff rose from ₦67 to ₦225 (US$0.049 to US$0.16) per kilowatt-hour.

The public backlash was immediate and fierce. Labour unions protested nationwide and picketed the offices of the regulator and distribution companies. They demanded reversal of the hike, and shut down electricity sector offices in several cities.

But they didn’t ask the main question: why is the cost so high in the first place? The answer is not simply gas prices, exchange rates or inflation, though all play a role.

Another driver is inefficiency of the system’s operations. The electricity generated and used, and the revenue received, don’t match up.

As an economist specialising in energy policy, with a doctoral thesis examining the impact of power sector reform on Nigeria’s electricity supply chain, I submit that Nigerians are paying for inefficiency.

Until this is confronted directly, tariff increases will fail to deliver the sector transformation they promise.

The maths of the problem

Under Nigeria’s Multi-Year Tariff Order Framework, the Nigerian Electricity Regulatory Commission sets electricity tariffs. It does this by dividing its total revenue requirement (such as operating costs, capital recovery, and a regulated return on assets) by the volume of electricity that is actually billed and paid for.

This formula has a weakness. The more revenue is lost through inefficiency, the more consumers have to pay.

And actual losses have exceeded the targets that are allowed.

The scale of this failure in Nigeria is extraordinary when set against both international benchmarks and the performance of comparable developing economies.

The measure used is called “aggregate technical, commercial and collection loss”. It’s a composite figure capturing electricity lost to infrastructure failures, theft, unmetered consumption and uncollected bills. Nigeria’s distribution companies reported average losses far above the global average of around 6-9% and the 15% that is considered good practice for developing economies.

Nigeria’s aggregate losses across all distribution companies in the first quarter of 2024 stood at 36.36%. This comprised technical and commercial losses of 19.55% and collection losses of 20.83%.

By the third quarter of 2024, they had worsened to 39.10%. Also, none of the distribution companies achieved the target set by the regulatory pricing framework of the Nigerian Electricity Regulatory Commission. The Kaduna distribution company recorded an actual loss of 70.84% against a target of 25%.

The most recent data – first quarter 2025 – shows no resolution. Aggregate technical and commercial losses stood at 39.6%, almost double the 20.5% target set under the framework. This translates to an estimated ₦200.5 billion (about US$146 million) in forgone revenue in that quarter alone.

That Nigeria’s average electricity revenue loss consistently exceeds 36% is extraordinary even by regional standards. Ghana, itself in a distribution crisis, recorded 32% losses in 2024; Kenya has been working to bring its losses down to 21.7%. In India, after a decade of costly federal reform programmes, losses reached 16.16%, against a global average of around 6%-9%.

A metering crisis at the heart of the problem

A key driver of commercial losses is one of the most persistent failures in Nigeria’s electricity sector: the metering gap. Without a meter, a consumer cannot be accurately billed. Without accurate billing, collection is contested and payment culture erodes.

As of December 2024, only 6.29 million out of 13.5 million registered electricity customers across the 12 distribution companies were metered. The metering rate was just 46.57%. More than half of Nigeria’s electricity consumers are still billed through estimated billing because of the metering gap.

Multiple government programmes designed to provide meters, such as the National Mass Metering Programme, the Meter Asset Provider scheme and others, have fallen short of their targets. Meter installations reached a four-year low in 2024, declining 34% since 2021.

The World Bank’s Nigeria Distribution Sector Recovery Programme identified the metering deficit as central to the sector’s financial distress. It estimated that nearly half of the seven million metering gap could be closed through smart meters under its current financing programme. This, however, is only if the distribution companies follow through on procurement and installation commitments.

The fiscal cost of inefficiency

These losses do not simply inconvenience consumers. They have placed the federal government in an unsustainable fiscal position. The 2024 annual report of the electricity commission revealed that the government would have to cover ₦1.94 trillion – 62.59% of what’s owed, which averages over ₦161 billion per month (about US$117 million).

This is a subsidy for operational failure rather than a deliberate social transfer. The World Bank has estimated annual economic losses from Nigeria’s unreliable electricity at 5%-7% of GDP, approximately US$25 billion. This figure exceeds the Nigerian government’s spending on health annually. Total spending on health was 4.08% of GDP in 2021, and 4.19% in 2023.

The burden extends beyond what appears on electricity bills. Faced with an unreliable grid, businesses and households fall back on self-generation. Over 22 million diesel and gasoline generators power approximately 26% of Nigerian households and 30% of micro, small and medium enterprises. These generators represent a parallel electricity system which is expensive, polluting, and absent from any tariff discussion. The discussion that also excludes every Nigerian who cannot afford one.

The policy implication

None of this means cost-reflective tariff reform is wrong. A sector that cannot recover its costs cannot invest, and a sector that cannot invest cannot improve. But the sequence matters enormously. Tariff increases that are not paired with credible, enforceable efficiency commitments from distribution companies simply transfer the cost of failure upward. That is, from the distribution companies to consumers and government.

What is needed is a regulatory framework that places efficiency at the centre of tariff determination. The regulator should ensure that any tariff increase is tied to measurable improvements in metering, reduction in electricity losses, and better service delivery. Consumers should not continue to bear the cost of inefficiencies within the electricity distribution system. Until distribution companies demonstrate real operational improvement, higher tariffs will continue to appear punitive rather than justified.

At the same time, infrastructure investment must happen. Without a physically reliable network, financial reform will not restore credibility.

Nigeria’s electricity consumers are not simply paying for power. They are paying for a system’s failure to deliver it – and being asked to do so again and again, with no end in sight. That is not reform. It is a transfer of liability dressed as policy.

*Taiwo Hassan Odugbemi is a Lecturer in Economics at the University of Abuja

Under the Nigerian Electricity Regulatory Commission (NERC) Service-Based Tariff (SBT) system, a tariff model that links electricity prices to expected supply levels, Band A customers pay premium electricity tariffs in exchange for an expected minimum supply of 20 hours per day. NERC’s latest compensation order sends a clear signal: if customers are paying a premium rate, they should receive the supply level they are paying for, and if they do not, they should be credited.

Why Power Reliability is Now a Business-Cost Story

Nigeria’s power supply gap remains a direct cost for businesses. NERC’s April 2026 Operational Performance Factsheet showed that grid-connected power plants had a Plant Availability Factor (PAF) of 31 percent, with an average of 4,286 megawatts (MW) available for dispatch out of 13,625MW of installed capacity. When available grid power falls short of business needs, companies often have to keep backup generators running, adding fuel, maintenance and planning costs to production.

The Central Bank of Nigeria (CBN) Business Expectations Survey for March 2026 identified insufficient power supply with an index reading of 74.5 as a leading business constraint, ahead of insecurity, high or multiple taxes, high interest rates and financial problems. The index ranks the severity of reported business constraints, with higher readings indicating a more pressing concern for firms.

Band A Compensation Tests Tariff Credibility

NERC’s compensation directive does more than reimburse customers for missed supply hours. It sets a precedent that premium tariff bands carry enforceable service obligations. NERC issued Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints, covering eligible Band A customers affected by power shortfalls between February and March 2026.

Under the framework, smaller electricity users, classified as Non-Maximum Demand (Non-MD) customers, are to receive a credit equal to 20 percent of the approved February 2026 energy cap for the affected feeder, meaning the electricity line serving those customers. Larger commercial and industrial users, classified as Maximum Demand (MD) customers, are to receive 20 percent of the average energy billed per MD customer in February 2026. Prepaid customers are to receive token credits, while postpaid customers are to receive bill adjustments, with February compensation due by 31 May 2026 and March compensation due by 30 June 2026. NERC also directed Distribution Companies (DisCos), the companies that deliver electricity to end-users, not to offset compensation credits against existing customer debts.

The cost of unreliable power does not stay inside the electricity bill. When a factory, supermarket, estate, logistics operator or cold-storage facility pays a premium tariff but still runs diesel backup, those costs move into production, inventory protection, food storage, transport pricing and consumer prices. Customer credits help, but the wider sector still has to manage generation limits, revenue collection and payments across the supply chain.

David Precious, Senior Market Analyst at EBC Financial Group, said, “Nigeria’s power reform is moving into an accountability phase. Higher tariffs can only build confidence if customers and businesses receive the level of supply they are paying for. NERC’s Band A compensation order and the rollout of net billing point to the same market test: electricity reform must now be measured by delivery, transparent credit mechanisms and whether businesses can reduce diesel backup costs.”

Net Billing Turns Self-Generation into a Business-Cost Question

Beyond customer credits, NERC’s Net Billing Regulations 2026, published on 3 June 2026, open a separate question for businesses already spending heavily on diesel and backup power: whether renewable self-generation can become a more reliable and cost-effective alternative. The regulation creates a framework for eligible customers to generate renewable electricity, use what they need and export any surplus power to distribution networks.

Many Nigerian businesses already invest in generators, diesel storage, solar systems or hybrid power because grid supply is not reliable enough for production, refrigeration, logistics, retail operations and business continuity. Net billing could make that investment more efficient by allowing eligible users to recover some value from excess renewable power rather than leaving it unused.

The framework is not designed as an instant solution for every household. Qualifying solar or renewable systems must have installed capacity between 50 kilowatt peak (kWp) and 1.5 megawatt peak (MWp), making it more immediately relevant to commercial users, estates, shopping centres, manufacturers, institutions and larger facilities with enough electricity demand and capital to invest. Participants will also need approval from their local distribution company, a technical feasibility review, a Net Billing Agreement and NERC registration. Qualifying systems will require meters that record both electricity consumed and electricity exported.

Whether net billing delivers real savings will come down to implementation. Exported electricity will be credited at an export tariff approved by NERC, which will not necessarily match the price businesses pay for retail electricity purchases. The specific rate and how payments will be settled are still to be confirmed by NERC and DisCos. That export tariff, together with metering, approval timelines and settlement reliability, will determine whether net billing reduces actual costs or remains a regulation that has not yet translated into commercial value.

New Minister Adds an Implementation Test

The appointment of a new Minister of Power adds a wider delivery test to both reforms. President Bola Ahmed Tinubu swore in Joseph Olasunkanmi Tegbe as Minister of Power on 8 June 2026, after the Senate cleared his appointment on 6 May 2026, according to the State House. For businesses and investors, the question is not only whether Nigeria has new rules, but whether the sector can implement them consistently. That means Band A credits must be applied on time, net billing approvals must be workable in practice, export tariffs must be transparent and distribution companies must collect enough revenue to keep paying generators and transmission companies.

What Nigeria’s Electricity Market Will Watch Next

The next phase of Nigeria’s electricity reform may be judged by whether existing rules work in practice, not by new announcements. By 30 June 2026, the March Band A compensation deadline will show whether premium-tariff customers receive visible credits when supply falls short. Net billing faces the same practical test: whether approvals, meters, export tariffs and settlement processes can turn renewable self-generation into a real cost-saving option for eligible businesses. At the same time, both reforms raise the operating bar for DisCos. They must credit customers when service falls short, collect revenue efficiently and keep payments moving to generators and transmission companies. Higher electricity prices may improve sector revenue, but they will not be enough if businesses still have to pay twice: once for premium grid supply and again for diesel backup.