Ghana: Reassigned Director Martin Sulemana Fingered In Unprovoked Assault On NEDCo Staff, Seized NEDCo Vehicles
It has emerged that the recent unprovoked and unwarranted attack on the staff of Northern Electricity Distribution Company (NEDCo) by some youth of Tamale was instigated by a director of the company who is unhappy about his reassignment to another department.
A document available to this portal indicates that Mr Martin Sulemana, who was the Director for Human Resources Department, was on July 11, 2025 reassigned as Director for Corporate Strategy and Business Development alongside Ing. Noble Dormenu as Director for Engineering Services Department.
Following his reassignment, which per the fact available to this portal is not the first time Mr Sulemana, according to impeccable sources, went to complain to His Royal Majesty, the Overload of Dagbon, and other chiefs about his reassignment and asked them to intervene.
Consequently, the acting Managing Director, Ing John Okine Yamoa, was invited to the Palace of the Overlord and some of the chiefs to address the concerns and clarify the reassignments of both Mr Sulemana and Ing. Noble Dormenu.
According to information available to this portal, when the Overlord couldn’t attend some of the scheduled engagement by the management of NEDCo in person due to health issues, he sent a delegation.
Despite explanations offered by the management of NEDCo, it appears Mr Sulemana was not satisfied.
A statement issued by the National Executive Council (NEC) of the Volta River Authority claimed that Mr Sulemana had mentioned that he had appointed 37 Dagombas since he became Director of HR Department, a move which he claims the acting MD has not been happy about.
The NEC accused Mr Sulemana of leaking his reassigned letter on social media and to some media houses in Tamale, including Zaa TV, ostensibly to seek public support for his diabolical action.
According to NEC, reassignment is not alien as far as the operations of the company are concerned and highlighted similar reassignments in the past.
NEC mentioned the reassignment of the former Director, Corporate Strategy, Ing Bukari Danladi, to VRA’s
Corporate office in Accra, Mr. David Adomako-Mensah, Director, Services (NEDCo), to main VRA as Director, Real Estate and Security Services Department,
Mr. Hashim Iddrisu and Director, Finance (NEDCo) to Director, Commercial,
NEDCo.
NEC said the staff of NEDCo are reassigned from time to time, including managers, in line
with the strategic objectives of the company.
The group, which condemned the assault on the staff, demanded the arrest of the perpetrators, retrieval of three-seized NEDCo vehicles parked at the Gulkpenaa palace and urged Martin Sulemana to respect management’s decision.
Besides, the group called on the Minister for Energy and Green Transition, Mr John Abdulai Jinapor, to intervene to bring peace and harmony to the company.
Source: https://energynewsafrica.com
Nigeria: Energy Sector Challenges: 5 Key Issues That Require Immediate Action
I. A Reform with Promise—and Peril
Yes, the Electricity Act 2023 fulfills a constitutional mandate and provides a legal basis for state‑level electricity regulation. But granting power to the States is only half the story—successful decentralization demands institutional capacity, coordination mechanisms, and legal harmonization. Without these, the Act risks becoming a vehicle for market fragmentation rather than inclusive empowerment.
II. Multiple Regulators = Market Fragmentation
IT must be stated that State Regulatory Autonomy comes with high regulatory transaction costs:
- PwC warned that 37 distinct state electricity laws could result in market distortions and unhealthy rivalry, disrupting the national market.
- Mondaq predicts multiple licensing across states would significantly increase operational delays and compliance costs for multi‑state GENCOs, DisCos, and IPPs.
- NERC’s own Legal Commissioner cautioned that lack of regulatory alignment could destabilize grid operations and drive away investors, especially when tariff orders conflict.
- Several analysts note that only a handful of states ever started serious regulatory work after NERC ceded authority. Others have yet to draft meter‑based tariffs, rules for theft reduction, or wholesale pricing mechanisms.
- During implementation forums, PwC advised caution—many states are yet to develop feasibility studies or invest required capital to set up regulatory agencies.
- Without engineers, economists, legal analysts and tariff n + 3 experts, State regulators risk becoming rubber stamps—or worse, vehicles for political rent‑seeking.
- With each state setting tariffs independently—some subsidizing, others cost‑reflecting—consumers in one border town could pay 60% more than their neighbor.
- There are no clear national guardrails: no standard subsidy policy, no mechanism to ensure lowest bands receive minimum access—even though Section 34 calls for inter‑state coordination.
- If high‑capacity industrial customers migrate to low‑tariff states, the fiscal load will fall on small //Band E// households, undermining equity.
- Dr. Idowu Oyebanjo argued that amendment attempts already created uncertainty—investors freeze when regulatory frameworks look unstable mid‑implementation.
- PwC and BusinessDay reports stressed that ambiguous rules across 36 regulators, unknown fees, and conflicting state laws make developers wary of committing capital.
- Nigeria’s grid collapsed ten times in 2024 due to underinvestment, vandalism, and aging lines—impacting multiple regions simultaneously.
- Without national coordination, asset transfer disputes (e.g. spanning multiple states) could paralyze planning and delay upgrades.
- The Transmission Service Provider (TSP) and NISO now exist—but federal authorities are still the gatekeeper of interstate wheeling and generation dispatch. In effect, States are regulators, not grid operators.
- Create a national template for SERCs, with mandatory minimum standards and mirror Sections of NERC’s Metering, Theft, and Tariff Code.
- Phase in decentralization slowly—only states that demonstrate readiness (financial plan, staffing, assets, analytics team) should assume regulation.
- Adopt regional regulators or consortiums (e.g. North‑West pooling)—to preserve economies of scale while allowing local flexibility.
- Harmonize wholesale pricing and cross‑border rules via NERC’s oversight of grid‑connected generators; prevent double licensing where investments cross state lines.
- Activate the Power Consumer Assistance Fund (PCAF) before removing subsidies, to cushion vulnerable consumers—already named in the electricity law but still dormant.
- Keep any amendment bill on hold until all State electricity laws are operational, with deep stakeholder consultation—not speeded legislation.
Russia’s Gasoline Prices Surge To Record High On Refinery Attacks
Russia’s domestic gasoline market is under mounting pressure, with prices hitting a new record high despite an emergency export ban aimed at stabilizing supply.
The price of Ai-95 gasoline surged past 77,000 rubles ($946.6) per ton on the St. Petersburg International Mercantile Exchange (SPIMEX) on August 4.
The latest spike follows Ukrainian drone strikes on August 2 that damaged multiple oil refineries across Russia, cutting processing capacity by around 40,000 tons of crude per day. Facilities in Ryazan, Penza, Samara, and Voronezh Oblasts were targeted, with the Ryazan refinery sustaining notable damage. Repairs could take anywhere from one to six months, industry sources say.
Moscow imposed a sweeping ban on gasoline exports on July 28, set to last until the end of August, in an effort to prevent fuel shortages and curb price increases. The Kremlin has used similar temporary restrictions multiple times in the past two years to safeguard domestic supply.
Despite the export ban, traders were warning just days before the record-breaking spike that the ban may not prevent shortages. Export volumes are far smaller than domestic consumption, meaning that redirecting them to the local market will have a limited impact.
Market participants expect state regulators to pressure oil companies to sell more domestically and delay planned maintenance. But even so, low domestic stocks, peak seasonal demand, and ongoing refinery repairs are straining the market.
The shortage concerns go beyond disrupted supply chains. According to industry sources, private retail networks have not built up sufficient fuel reserves this summer. A spike in interest rates to 20% made borrowing to stockpile gasoline prohibitively expensive, leaving traders without the buffer needed to weather sudden supply shocks.
In addition, frequent flight delays in Russia this summer have reportedly driven more travelers to take to the roads, pushing gasoline consumption higher than usual. The combination of low reserves and elevated demand has intensified fears that shortages will persist through September.
Ukraine’s strikes on Russian oil infrastructure are designed to limit Moscow’s fuel export revenues and disrupt supplies to its military. The damage from the latest attacks has added to the already fragile balance in the domestic fuel market.
Given that refinery repairs could extend into early 2026, the current supply squeeze is unlikely to be resolved quickly. Even with the export ban in place, the record price level strongly suggests the market is already grappling with real physical shortages rather than just speculative pressure.
Industry experts expect prices to remain elevated at least until October, when seasonal demand eases and local refineries complete major repairs. Until then, the Kremlin may be forced to consider additional interventions to avert a politically damaging fuel crisis.
Source: Oilprice.com
Tanzania: Over 5,000 Three-Wheelers Converted To Use CNG
More than 5,000 three-wheeled motorized vehicles in Tanzania have been converted to use Compressed Natural Gas (CNG) as an alternative to petrol or diesel, according to the Tanzania Petroleum Development Corporation (TPDC). Senior Community Development Officer at TPDC, Mr. Ally Mluge, disclosed this at the ongoing Nane Nane 2025 exhibition for the Southern Zone in Lindi Region.
“To date, over 5,000 three-wheeled vehicles are running on CNG instead of petrol or diesel,” Mr. Mluge said, noting the growing shift towards cleaner and more cost-effective fuel solutions. He added that TPDC has developed eight CNG filling stations across the country, including the largest ‘mother station’ in Dar es Salaam, which was launched in May 2025.
The facility has the capacity to refuel up to 1,200 vehicles per day and is expected to significantly reduce fuel costs and ease congestion at other filling stations.
In a related development, Mr. Mluge noted that approximately 1,512 households in Dar es Salaam, Lindi, and Mtwara have been connected to natural gas for clean cooking purposes. In addition, 57 industries are now using natural gas as a clean energy source.
TPDC is also implementing a project in the Mnazi Mmoja area of Lindi to distribute clean cooking gas to 470 households in Lindi and 570 households in Mkuranga District, Coast Region.
Furthermore, Mr. Mluge said that TPDC, in collaboration with the Rural Energy Agency (REA), is supporting the National Clean Cooking Strategy, which aims to connect 80% of Tanzanian households to clean cooking solutions by 2034.
“TPDC is fully committed to the National Clean Cooking Strategy and is working closely with REA to promote the adoption of clean cooking technologies across households, institutions, and commercial users,” he said.
Lindi District Commissioner, Ms. Victoria Mwanziva, praised TPDC’s efforts in expanding access to clean cooking energy, noting that the initiative has reduced reliance on polluting fuels and helped mitigate the negative impacts of traditional cooking methods.
“We truly appreciate TPDC’s efforts, especially their public awareness campaigns, which are playing a crucial role in encouraging communities to adopt clean energy solutions,” she said.
Source: https://energynewsafrica.com
Zambia: Minister For Energy Launches 2025 Energy Week To Promote A Sustainable Energy Future
Zambia’s Minister for Energy, Makozo Chikote, has officially launched the 2025 Energy Week, which will run from August 4th to 8th, 2025, under the theme “Advancing Towards a Sustainable Energy Future.” Energy Week is an annual event aimed at raising public awareness of the Government’s policies, reforms, and developments in the energy sector.
In his address, Minister Chikote said this year’s theme underscores the Government’s commitment to attracting investment and ensuring Zambia’s long-term energy security, particularly in the wake of the severe drought experienced during the 2023/2024 rainy season.
He reaffirmed that the Government remains determined to provide sustainable solutions and build robust, climate-resilient energy systems through a series of reforms in both the electricity and petroleum sub-sectors.
Minister Chikote mentioned key reforms in the electricity sector, including Net Metering, Single Energy Licensing System, and Incentives for Renewable Energy Equipment.
In the petroleum sector, the Minister highlighted the implementation of an open-access policy for the TAZAMA Pipeline, which now allows licensed oil marketing companies to use the pipeline on a competitive basis. This has improved operational efficiency and contributed to lower fuel pump prices for citizens countrywide.
Minister Chikote noted that under the leadership of President Hakainde Hichilema, the Government has made significant progress in expanding energy access. Since 2021, the national electricity access rate has increased from 34% to 54%, with rural access rising from 8% to 34% and urban access improving from 69% to 80%. He further stated that the Government remains focused on increasing renewable power generation.
He cited the commissioning of the 100MW Phase 1 Chisamba Solar Power Plant as a milestone and reaffirmed that Zambia is on course to deliver an additional 1,000MW of solar PV capacity by the end of 2025, in line with President Hichilema’s directive, to help eliminate load shedding.
Minister Chikote urged citizens, especially those in Mongu, to participate fully, engage with energy sector professionals, and learn about the Government’s ongoing measures to secure a reliable and sustainable energy future for Zambia.
Source: https://energynewsafrica.com
Zambia: ZESCO Emergency Tariffs Extended For Three Months More
Zambia’s Energy Regulation Board (ERB) has extended the emergency tariff period for ZESCO Limited due to ongoing electricity generation challenges caused by low water levels in major reservoirs. Despite recent rainfall, water levels remain inadequate, impacting hydropower production.
As a result, the ERB has extended the emergency period for three more months (from August 1 to October 31, 2025).
In a statement, the ERB said it has maintained the emergency tariffs approved in October 2024.
This decision follows ZESCO’s application and review in line with the Electricity Act No. 11 of 2019, which requires periodic assessments every three months. The ERB’s resolution aims to address the ongoing electricity supply challenges in Zambia.
Source: https://energynewsafrica.com
Nigeria: Dangote Refinery Appoints David Bird As New CEO
Africa’s largest oil refinery, Dangote Petroleum Refinery and Petrochemicals in the Republic of Nigeria, has appointed David Bird as the Chief Executive Officer (CEO) in a move seen as a strategic step in company’s push to accelerate its pan-African growth agenda.
Bird, whose appointment took effect on August 1, brings over 30 years of industry experience, including a 14-year tenure as an executive at Shell, where he oversaw the $12 billion Prelude Floating LNG project.
He had previously served as CEO of the Q8 Refinery in Oman. The move comes at a time when the refinery is striving to surmount production challenges and advance its expansion plans, which include nationwide distribution of fuel in Nigeria—a scheme already facing significant pushback.
As Vice-President of Prelude FLNG at Shell, he led the world’s first floating LNG facility and chaired Shell Australia’s RAP board. The oil and gas professional also served as Head of Operations at Pulau Bukom in Singapore, Shell’s largest refinery.
Commenting on his latest appointment, Bird said his focus would be on expanding the group’s footprint beyond the Nigerian market and across the African continent. He added that he would be responsible for driving maximum output and operational efficiency to position the company as a global market leader.
The 650,000 barrels per day (bpd) capacity refinery was inaugurated by former President Muhammadu Buhari in May 2023.
On January 12, 2024, the refinery announced the commencement of diesel and aviation fuel production following the delivery of its sixth one-million-barrel crude cargo.
The plant confirmed the start of petrol production on September 3, 2024, stating that the product meets global quality standards.
The refinery later announced an exclusive partnership with Premier Product Marketing LLC to export its polypropylene to global markets.
By August 15, 2025, Dangote refinery is expected to begin distributing fuel to end-users using 4000 compressed natural gas (CNG)-powered trucks.
Dangote also plans to list its refining business on the Lagos and London stock exchanges, although it has not given a timeframe.
Source: https://energynewsafrica.com
Mozambique: Gridworks’ Chimuara-Nacala Transmission Line Gets $5M U.S. Funding Boost
The United States Government through its International Development Finance Corporation (DFC) has provided a US$5 million grant to support Gridworks’ ongoing development of Phase II and III of the 460km Chimuara-Nacala transmission line, which is connecting central and northern regions of Mozambique.
The project will increase the reliability of the grid, boost industrial development, and allow the uptake of more power generation in the southern African nation.
Gridworks, which is owned by British International Investment, the UK Government’s Development Finance Institution, is developing the project in partnership with Electricidade de Moçambique (“EDM”), Mozambique’s national electricity utility.
This is the first time that DFC is providing a development grant specifically for a transmission project in Africa and reflects DFC’s commitment to supporting the technical, legal, and environmental work being undertaken by Gridworks to fast-track the project to financial close.
The government of Mozambique has shown continent-wide leadership in its desire to attract private sector financing for the development of its key infrastructure. The grant from DFC supports Gridworks’ efforts to implement what is Mozambique’s first privately financed Independent Transmission Project (ITP).
With growing industrial demand for power and only half of the population having access to electricity, Chimuara-Nacala is a high-priority project for the Government of Mozambique, which recognizes that network expansion, increased grid capacity, and resilience are necessary to ensure that increased power generation meets rising customer demand.
Gridworks and EDM began collaborating on the project in 2023. The project infrastructure includes a 400kV transmission line from Alto Molócuè – Namialo (272 km), a 220kV transmission line from Namialo – Nampula (98 km), and a 220kV transmission line from Namialo – Nacala-à-Velha (90 km). It also includes two new substations at Namialo and Nacala-à-Velha and the expansion of the Nampula substation.
The project is being built in three phases, with construction of Phase I by EDM already ongoing.
Gridworks Interim CEO, Chris Flavin, said, “Chimuara-Nacala transmission line is a crucial project connecting the central and northern regions of Mozambique with a high-voltage transmission spine. It will create economic opportunities and support the government’s ambition of universal electricity access.”
DFC Senior Vice President of Investments, Mateo Goldman, added, “DFC is proud to partner with Gridworks to advance energy security in Mozambique. Energy independence is vital for regional stability and economic growth. This strategic investment strengthens local capacity while also laying the groundwork to mobilize private capital to further develop reliable and secure power infrastructure in regions critical to U.S. national interests.”
An investor in Africa’s electricity transmission & distribution sector, Gridworks is developing a series of ground-breaking projects to bring clean, affordable and reliable power to Africa’s people and its businesses.
Source: https://energynewsafrica.com
Ghana: PURC Appeals To Striking NEDCo Staff To Exempt Health Facilities, Security, And Educational Institutions From Service Withdrawal
The Northern Regional office of the Public Utilities Regulatory Commission (PURC) has appealed to striking staff of the Northern Electricity Distribution Company (NEDCo) to exempt all health facilities, security installations, and educational institutions in the wake of their withdrawal of all outdoor activities within the great Tamale metropolis.
According to PURC, these sectors are strategic areas; hence, they must be exempted from the service withdrawal.
In a letter written to NEDCo by Mr. Ali Simon Jarana, the Northern Regional Manager of PURC, the commission observed that withdrawing services from these areas has the tendency to affect quality of health delivery, security, and academic activities within the metropolis.
He also appealed to them to exempt Ghana Water Installations as power is an input in the entire value chain of water production.
Mr. Jarana called on residents to remain calm as they work tirelessly around the clock to get staff of NEDCo to call off their strike.
It would be recalled that the staff of VRA/NEDCo at their emergency meeting last Thursday, July 31, 2025, declared withdrawal of field services in Tamale and its environs.
This follows unprovoked attacks on their staff by the youth of Tamale on Wednesday, July 30, 2025.
Some staff of NEDCo who were driving official vehicles on Wednesday, July 30, 2025, were stopped, dragged out, and beaten with clubs and sticks by some Tamale youth. The vehicles were subsequently seized and parked at the Gukpena Palace.
Source: https://energynewsafrica.com
Egypt Signs New Gas Exploration Deals With Eni And BP
The Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS) have signed a new agreement with Italy’s Eni, represented by its Egyptian subsidiary, the International Egyptian Oil Company (IEOC), and British BP, to begin exploration activities in the Mediterranean Sea.
The agreement includes drilling an exploratory well in the Temsah concession area in the coming months as part of a plan to enhance natural gas exploration and support opportunities for discoveries.
The agreement was signed by EGPC Chairman Salah Abdel Kerim, EGAS Chairman Yassin Mohamed, Eni’s General Manager in Egypt Francesco Gaspari, and BP’s Regional Vice President in Egypt Wail Shaheen.
The signing took place in the presence of Minister of Petroleum and Mineral Resources Karim Badawi and Eni’s Head of North Africa and Levant Region Martina Opizzi.
Eni plays a significant role in Egypt’s energy sector, with activities spanning several areas, including hydrocarbon development and production, gas projects, refining, and marketing of crude oil products.
Eni is also a key partner in the Damietta natural gas liquefaction plant, contributing to both the growth and decarbonization of Egypt’s energy sector.
Meanwhile, BP has a long-standing and significant presence in Egypt, operating for over 60 years with substantial investments in the country’s energy sector, focusing on natural gas exploration, development, and production.
Source: https://energynewsafrica.com
Ghana: VRA/NEDCo Staff Withdraw Field Services In Tamale Over Unwarranted Attacks By Residents
The Northern Electricity Distribution Company and Volta River Authority staff groups in the Northern Area have withdrawn all field services in the Tamale Metropolis and its environs following recent attacks on some field officers.
Some staff of NEDCo who were driving official vehicles on Wednesday, July 30, 2025, were stopped, dragged out, and beaten with clubs and sticks by some Tamale youth. The vehicles were subsequently seized and parked at the Gukpena Palace.
In a resolution passed at an emergency meeting in Tamale on Thursday, July 31, 2025, the staff leadership described the attack as “barbaric” and said it had put the lives of workers and company property at risk.
They also noted that the latest incident adds to a series of similar violent attacks on VRA/NEDCo personnel over the years, including the assault of staff at Lamakara in 2016, assault and deflation of company vehicle tires at Dohinayilli in 2017, vandalization of the VRA/NEDCo office by youth in Tamale in 2015, and assault of staff at Vittin in 2019 while disconnecting illegally installed streetlights.
The staff leadership demanded that management and law enforcement identify and prosecute the perpetrators, provide safety and protection for all VRA/NEDCo personnel and property, and retrieve the seized vehicles from the Gukpena Palace.
The statement stressed that although staff will continue to report to the office, they will not engage in any fieldwork until their safety is guaranteed.
“We believe our lives are under threat and we do not feel safe going out to work,” the statement read.
Source: https://energynewsafrica.com
South Africa Unveils Bidder Pre-Qualification For Transmission Programme
South Africa’s Electricity and Energy Minister Kgosientsho Ramokgopa and Deputy Finance Minister David Masondo have unveiled the process to pre-qualify potential bidders for the country’s Independent Transmission Programme.
The initiative aims to expand the country’s transmission infrastructure, with a target of building over 14,000 kilometers of new transmission lines by 2032.
The National Transmission Company of South Africa (NTCSA) is expected to lead the R440 billion project. According to Minister Ramokgopa, “This is the single biggest programme of a post-apartheid government.” A significant part of that is going to come from the private sector.
Minister Ramokgopa said, “So, we created a procurement dispensation that makes it possible for us to invite the private sector to build, operate, and transfer a concession in the line and returning them back to the state, and in this instance, to the NTCSA, making sure that your rural interland, your peri-urban areas get electricity as you make the point that 1.6 million households don’t have access to electricity.”
The programme aims to resolve issues of access and affordability. Mr. Ramokgopa emphasized that the programme would ensure adequate local participation, targeting historically disadvantaged individuals.
Source: https://energynewsafrica.com
Nigeria: Port Harcourt Refinery Will Not Be Sold—NNPC Limited
The Nigerian National Petroleum Company Limited (NNPC) Ltd has officially ruled out the sale of the Port Harcourt Refining Company, reaffirming its commitment to completing the high-grade rehabilitation and retention of the plant.
The Group Chief Executive Officer (GCEO) of NNPC Limited, Bashir Bayo Ojulari, announced this at a company-wide town hall meeting on Tuesday at the NNPC Towers, Abuja.
He stated that the position isn’t a shift, but rather informed by ongoing detailed technical and financial reviews of the Port Harcourt, Kaduna, and Warri refineries.
The ongoing review indicates that the earlier decision to operate the Port Harcourt refinery prior to full completion of its rehabilitation was ill-informed and sub-commercial, Ojulari said.
Although progress is being made on all three refineries, the emerging outlook calls for more advanced technical partnerships to complete and high-grade the rehabilitation of the Port Harcourt refinery. Thus, selling is highly unlikely, as it would lead to further value erosion.
The announcement comes in the wake of widespread speculation following his remarks at the 2025 OPEC Seminar in Vienna, Austria earlier this month, where he said during an interview with Bloomberg that “all options are on the table.”
The comment sparked speculation and headlines about the future of the nation’s refining assets.
The declaration was received with applause from hundreds of staff attendees, who described the position as a renewed sense of business-focused direction across the organization. The town hall served as more than a performance update—it was an opportunity for candid and constructive engagement.
The Executive Vice Presidents presented progress reports from the Upstream, Downstream, Finance, Business Services, Gas, Power, and New Energy businesses, highlighting operational achievements, ongoing reforms, and areas requiring attention.
In a tone marked by honesty and leadership, challenges and earlier missteps were acknowledged, and a clear roadmap was outlined for the journey ahead. The announcement reinforces NNPC’s mandate as a strategic custodian of national energy infrastructure and reflects a firm resolve to deliver on the complete rehabilitation and long-term viability of Nigeria’s refineries.
It also signals continuity in the Federal Government’s broader energy security objectives and a commitment to retaining critical assets under national control.
Feedback during and after the session revealed a workforce energized and aligned with the leadership’s vision.
Described as “reassuring,” “transformational,” and “sustainable,” the atmosphere reflected an optimistic outlook among employees and hopefulness about the company’s evolving strategic direction.
NNPC Ltd will continue to reposition itself as a commercially driven, professionally managed national energy company, grounded in transparency, focused on performance, and unwavering in its responsibility to its number one stakeholder group, Nigerians, Ojulari concluded.
Source: https://energynewsafrica.com
Nigeria: The Iniquities Of The Electricity Act Of 2023 – South Vs. North, Rich Vs. Poor
By: Ike Ugorji
Some key recent events make it compelling to ponder the Electricity Law of 2023. These including the following:
I. The ongoing proposed Electricity Act (Amendment) Bill, 2025 currently undergoing deliberation in the National Assembly.
ii. The press release issued by the Forum of State Commissioners of Power and Energy in Nigeria (FOCPEN) on the 16th of July 2025 with concerns and opposition to key proposed amendments (signed on behalf of FOCPEN by the Commissioners of Power from Cross River and Benue respectively).
iii. The unilateral tariff adjustment by the Enugu Electricity Regulatory Commission (EERC) on the 18th of July 2025 and the subsequent furore raised by market Operators (mainly the Generating Companies – GENCOS and the Electricity Distribution Companies (DISCOS) across the value chain); and
iv. The subsequent statement issued by the Nigerian Electricity Regulatory Commission – NERC clarifying the delineation of State Regulatory powers Some experts have always posited that the Electricity Act of 2023 was solving a problem that didn’t exist. The major problem of the sector had and continues to have are mainly twofold:
I. Lack of Policy and Regulatory Consistency
ii. Lack of Investment
Both issues are co-related, as deficiencies in the former will always lead to deficiencies and a lack of appetite for the latter. So, rather than reinforce Regulatory and Policy consistency by strengthening the regulatory body the Nigerian Electricity Regulatory Commission (NERC), the National Assembly gave us a pill to solve the wrong headache, and a pill that we arguably, didn’t need.
The 2023 Law created the opportunity for a market of merely 5,000MW grid generated energy to have a potential to have 36 additional regulatory bodies (the country has >24,000MW of grid capable capacity and uses about 8,000MW of that capacity daily – including large off-grid generating plants like Dangote, NLNG).
Furthermore, Nigeria, that has a reputation in the power sector for lack of regulatory consistency (e.g. the lack of steady tariff reviews, the lack of activated PPAs for the majority of on-grid GENCOs more than a decade post privatization to mention a few), created a byzantine structure that is making both local and foreign investors very jittery about putting their resources into the Nigerian electricity sector.
So, in one fell swoop, the 2023 Regulatory Law created more Regulatory and Policy inconsistency and further drove away investment, because of the lack of clarity and the fear of the unknown.
Some of the proponents of the Act at the time of its passing were essentially angling at self-serving commercial benefits that were thought could be derived from further cannibalizing an already challenged market.
A former public servant with significant experience in the power sector once said, “We are transferring responsibilities that the Federal Government with more capability and capacity has thus far has struggled to implement to sub nationals which may have less capability and capacity, what do you think the outcome will be?”.
4. The other aspect is that the act was unnecessary if the intent was mainly to encourage State participation (particularly in investment, which is more important).
5. Everything the proponents claimed that the States could do after the Act was passed, could have been done with the prior EPSRA. For example, if a State Government wanted to meter all its citizens, it could have simply created an investment agreement with the DISCO in charge of the State’s franchise.
If a State Government wanted to build power plants, it could simply, build the power plants and sign a PPA with the DISCO in charge of the State’s franchise. Every single example that you could think of for a State to participate in the Electricity Value Chain, was already available to the State’s through the EPSRA as it is through the 2023 Electricity Law. The fundamental flaw of the 2023 Electricity Law is that it is trying to solve the wrong problem.
5. If the Electricity Act hadn’t been passed so hurriedly during the transition from the9th to the 10th assembly, the discerning would have noticed that the market was on a path to workability. Despite all the commentary of the failures and successes of the past
administration, it is clear, the Nigerian Electricity Supply Industry (NESI) policy reform, was a strong point. The sector was on an upswing.
As of May 2023, the electricity subsidy had been substantially removed through small incremental increases in tariff over 3 years, where all successive scheduled tariff reviews were implemented on time (Policy and Regulatory consistency). 8 out of the 11 DISCOs had been transitioned to new more capable owners, including the advent of more integrated Utilities where some GENCO owners rescued some of the failed DISCOs (Investment, for example Transcorp taking over Abuja DISCO and Mainstream taking over Yola DISCO).
Rising Inequities in the NESI caused by the 2023 Electricity Law.
6. The 2023 Electricity Law creates an inimical position where the most sacred and core tenant of the NESI as enshrined by the EPSRA – Cross Subsidization – was eroded, without being replaced or a new core tenant enshrined.
For instance, one of the ways the EPSRA was implemented was the geographical makeup of the Electricity DISCOs, where larger more economically viable States were combined with smaller States so that through Economies of Scale the DISCO cluster can achieve better tariff rates for all.
Furthermore, larger States had the ability to leverage the electricity infrastructure in smaller States in the Franchise Area to improve service delivery and create redundancy and security of supply.
Today, the new Electricity Law if fully implemented as envisaged, will create unnecessary barriers to cross sub-national border cooperation on electricity. Smaller population States like Ebonyi, Zamfara, Jigawa, Ekiti, Gombe etc. will invariably experience higher rates of electricity. Some smaller States believe they will become fully independent on supply but there are two questions they need to ask themselves that will catch up to them sooner or later:
I. If the State seeks to industrialize, there will be a need for larger amounts of energy than those that can be achieved through small, inefficient Gas and Renewable power plants.
ii. If a small State generates excess energy, it could lose the ability of a ready market to sell excess energy to, due to all the barriers that are being placed by this new complicated regulatory regime.
7. Sub-national Resource Nationalism is a touchy subject in Nigeria. The Federal Government and Government of the Federation over the past 40 years has created power plants with the following make up:
80% of Southern States (14/17 States) have power plants with an installed capacity of >100MW and only 16% (3/19 States) of Northern States have power plants with an installed capacity of >100MW.
When we pass a Law that allows State Governments to take regulatory control of those assets, it is unfair and inequitable. What if Southern States regulate that the Power Plants built by funds from the Federal Government and Federation can only be used for the specific States that the Power Plants are domiciled in? You can imagine what will happen in that scenario.
For instance, Bayelsa State with an installed capacity of 240MW, has more installed capacity than the States of Borno, Yobe, Taraba, Gombe, Bauchi and Adamawa combined! Rivers has 8 (eight) times the installed capacity of Kano, Katsina, Jigawa, Kebbi, Sokoto, Zamfara and Kaduna.
It is therefore not a surprise that the leading voices of State Electricity regulatory control are Southern Power Commissioners that have taken control of FOCPEN. Northern States may need a different Solution.
For instance, Northen States may need regulatory partnerships to create bigger electricity markets so that resources in Niger and Kaduna that are base load generating (Gas and Hydro), can help balance the ambitions of the States in the far Northwest and Northeast that have ambitions to become powerhouses in Solar Generation. Smaller Southern States that have integrated supply, may not want to leave the bigger markets that anchor their commercial viability.
Where do we go from here?
8. States MUST realize that over-regulation is anti-investment. The NESI needs investment more than anything. As the States pass their respective Laws, Laws should focus on investment promotion and be light on regulation (the rules from NERC are more than sufficient to cover the States from a regulatory standpoint). States should only take over Regulatory matters from NERC that are necessary and specific.
9. The National Assembly in the amendments to the Electricity Law must create more equity in the Law and return provisions that give all Nigerians the chance to have affordable Electricity. For instance, to bolster the Power Consumer Assistance Fund (PCAF), there should be token penalties for large companies that go completely off-grid.
If the likes of the Nigerian Liquified Natural Gas Company (NLNG) and Dangote Refinery, continue to opt to take no power from the grid, they leave the grid with less heavy consumers and without economies of scale, costs are invariably higher for residential consumers and small and medium enterprises.
There could be a required offtake percentage of the total offtake requirement that allows an off-grid industrial user not to be penalized (this could bring much needed big companies to the grid). For example, Sasol in South Africa pushes all its large, generated power to the grids and buys cheaper power from the grid for its operations.
10. States that have small markets and those that have limited sources to generate energy should understand that there is strength in numbers. There should be provisions in the new Electricity Law that allow for States and regions to partner to create bigger Electricity Markets. It should also create opportunities for regional Transmission grids to allow for more integrated utilities.
Some Northern States are currently working to create Regulatory Frameworks that are interconnected to allow for joint action. The States that have been hitherto silent under the Nigerian Governors Forum (NGF) and FOCPEN, must speak up before it’s too late and the risks of inequity manifests.
11. The Law must ensure equity in the usage of electricity that is generated from power plants that were built by the Federal Government and Federation Assets. For example, NERC has ensured that the cheaper Hydro power from Kainji and Jebba is available to all DISCOs. There are rumours of plans to hand over some NDPHC assets built with Federation funds to State Governments without any payment, this will exacerbate inequities in the market.
Alternatively, the act could create a requirement for the Federal Government to also invest in Power Plants across the States that are disadvantaged before any State can take control of Federal Government or Federation built power plants.
12. It is not too late to right the wrongs of the 2023 Electricity Act, but the National Assembly must act with intent and clarity. It is a welcome development that the 2023 Law is being revisited. In all things, sometimes there is an overcorrection before an adjustment.
We pray for a country where all citizens will have access to affordable electricity, and we can leverage our strength in numbers for the betterment of all.
Source: https://energynewsafrica.com