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Electricity Tariff Hike Looms As Federal Government Raises Domestics Base Gas Price For Power Firms

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The new price of natural gas for power generation businesses is $2.42 per metric million British thermal unit (mmbtu), which is higher than the previous rate of $2.18mmbtu, according to a Monday announcement from the Federal Government.

More than 70% of Nigeria’s electricity is produced by gas-fired thermal power facilities. As a result, when the Nigerian Electricity Regulatory Commission conducts another tariff review, the increased cost of the item can result in an increase in the rate that power users must pay.

The new domestic base price and wholesale rates of natural gas for 2024 were revealed in a statement on Monday by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, an agency of the Federal Government.

The NMDPRA also pegged the cost of commercial gas at $2.92mmbtu, up from the previous cost of $2.5mmbtu. The announcement was signed by the Chief Executive, NMDPRA, Farouk Ahmed.

Recall that the Multi-Year Tariff Order released by NERC in January 2024 for the electricity distribution companies was calculated based on the previous price of natural gas.

Therefore, going by the latest cost of the commodity, there is a high tendency for an upward review of power tariffs, as gas is a major component used in power production.

Gas producers including international and domestic oil and gas companies, have repeatedly called for the upward review in the price of the product, stressing that this would be an incentive to ramp up production.

In the announcement on Monday, Ahmed said the Petroleum Industry Act 2021 assented to by the President on August 16, 2021, and gazetted in August 2021, provided a clear regulatory framework for the determination of a market-based pricing regime for the domestic gas market.

The NMDPRA boss further stated that the latest action was taken in line with section 167, the third and fourth schedule of the PIA 2021, which mandated the regulator to determine the Domestic Base Price and the marketable wholesale price of natural gas supplied to the strategic sectors.

He said, “The DBP at the marketable gas delivery point under Sector 167(1) and other provisions of the PIA shall be determined based on regulations which incorporate among such other matters, the following principles.

“(a) The price must be of a level to bring forward sufficient natural gas supplies for the domestic market on a voluntary basis by the upstream producers.

“(b) The price shall not be higher than the average of similar natural gas prices in major emerging countries that are significant producers of natural gas.

“(c) Lowest cost of gas supply based on three-tier cost of supply framework. (d) Market-related prices tied to international benchmarks.”

The NMDPRA, therefore, emphasised that it had set the “2024 Domestic Base Price at $2.42/MMBTU and wholesale prices for natural gas in strategic sectors, following consultations with stakeholders and in compliance with the PIA and Gas Pricing Regulations.”

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200-Level Student Who Murdered FUNAAB Undergraduate Was Fellow Church Member

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Ayomide Adeleye, a 200-level Philosophy student at Olabisi Onabanjo University (OOU), Ogun State, has been arrested for the kidnapping and murder of Christianah Idowu, a 300-level student at the Federal University of Agriculture, Abeokuta (FUNAAB).

Adeleye, who knew Christianah from attending the same church in Ogun State, allegedly lured her into his home under the pretense of offering shelter during a heavy rainstorm. He then attempted to assault her, and when she resisted, he killed her.

Following Christianah’s disappearance, Adeleye contacted her family using her phone and demanded a ransom of N3 million. However, his attempt to extort money led to his capture as intelligence officers traced him using his bank details and BVN information provided when he collected the ransom.

The case has sparked outrage, with many calling for swift justice for Christianah and a stronger response to gender-based violence in Nigeria.

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NURTW Boss Koko Zaria Arraigned For Allegedly Assaulting Nollywood Actor Baba Lawori, Granted N2m Bail

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National Union of Road Transport Workers (NURTW) Chairman, Koko Zaria, (Ganiyu Oyedepo), has been remanded in prison custody by a Lagos Chief Magistrate Court for allegedly assaulting Nollywood actor, Alhaji Ade Adele, popularly known as Baba Lawori.

Oyedepo was arraigned on Wednesday on charges of conspiracy, assault occasioning harm, and conduct likely to cause breach of public peace.

He pleaded not guilty to the charges brought against him by the operatives of the Force Criminal Investigation and Intelligence Department (FCIID).

The prosecutor, Morufu Animashaun, a legal officer in the legal department of FCIID, Alagbon, in a charge marked B/40/2024, told the court that the defendant committed the offences on June 5, 2024, at Idimu, by conspiring with some of his ‘boys’ to assault Adele.

He said in the course of the assault, Oyedepo’s boys, injured Adele in the head with a bottle.

He told the court that the offences committed by the defendant, contravened sections 411; 173 and 168 (l)(d) of the Criminal Law Ch. C17, Vol. 3, Laws of Lagos State and punishable under section 168 (2) of the same laws.

The charges read; “That you Ganiyu Oyedepo on or about the June 25, 2024 at Idimu, Lagos in the Lagos Magisterial District, Lagos conspired to commit Felony wit: Assault Occasioning Harm and committed an Offence contrary to Section 411 of the Criminal Law Ch. C17, Vol. 3, Laws of Lagos State.”

“That you Oyedepo on the said date unlawfully procured one of your boys (now at large) who unlawfully broke bottle and inflicted injuries on the head of one Alhaji Ade Adele and committed an Offence contrary to Section 173 of the Criminal Law Ch. C17, Vol. 3, Laws of Lagos State 2015.”

“That you Oyedepo conducted yourself in a manner likely to cause breach of peace when you threatened and procured one of your boys (now at large) to break bottle on the head of Adele and committed an Offence contrary to Section 168 (l)(d) of the Criminal Law Ch. C17, Vol. 3, Laws of Lagos State 2015 and punishable under Section 168 (2) of thé same Criminal Law Ch. C17, Vol. 3, Laws of Lagos state 2015.”

But, Oyedepo (Koko Zaria) denied the allegations and pleaded not guilty to the charges.

His lawyers, S. Bello with S. O. Ajetomobi, moved for bail application, saying the charge against their client is a bailable one. They urged the court to grant him bail in the most liberal terms.

Chief Magistrate Sonuga after hearing counsels’ submissions granted Oyedepo bail in the sum of N2 million with two sureties in like sum.

The sureties, according to the Chief Magistrate, must be of unquestionable character, with evidence of means of livelihood and must be residing within the court’s jurisdiction.

The Chief Magistrate also ordered the sureties to present to court evidence of three years tax, and have their addresses verified.

Chief Magistrate Sonuga, while adjourning the matter to October 29, for mention, however, remanded the defendant in the Nigerian Correctional Services (NCoS) custody, pending the perfection of the bail terms.

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Petrol Price Hike: NANS Insists On Nationwide Protest, Says “We Are Capable Of Holding Government To Ransom”

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The National Association of Nigerian Students (NANS) has vowed to proceed with its planned nationwide protest against the petrol price increase.

NANS Senate President, Henry Okuomo, made this known on Channels Television’s Sunrise Daily.

Okuomo emphasized that the union is capable of holding the government accountable, citing dissatisfaction with the current hardship situation in the country.

He said, “We are not threatening a strike. That is what we are going to do because of the current situation of the country. Nigerians are currently facing a lot. We are facing hardship, and now, the government has increased fuel prices again. This has affected us as students. And as student leaders, we don’t have a choice now but to fight for the people.

“We are occupying one of the largest stakes in the country, having over 40 million Nigerian students in the country.

“With that, we think we should make our voice loud at this time to save the Nigerian people from this undue stress and suffering being put upon them by the government.

“We have determined that on the 15th of this month, no going back. We are hitting the street hard.

‘We are going to demand not only for a reduction in fuel price but for other things that are affecting the nation in general.

‘We are going to do it. We will hit the streets if the government does not reverse most of the hardship policies before then.”

The group earlier called for the reversal of the petrol price and the removal of the Group Chief Executive Officer (GCEO) of Nigerian National Petroleum Company Ltd (NNPCL), Mele Kyari.

The clarification comes after a factional Senate President of the association, Babatunde Akinteye denied that the group was organising a protest against the increase in petrol price.

Akinteye had called on security agencies to investigate the source of the misinformation.

He said, “We strongly urge the public, the media, and all stakeholders to disregard these false reports. The individuals or groups behind these rumours are faceless entities who seek to exploit the name of NANS for their malicious purposes.

“They aim to destabilise the country and create unnecessary tension among citizens. We categorically disassociate ourselves from any such plans or intentions.

“We hereby call on the security agencies to launch a thorough investigation into the origin of this misinformation. Those responsible for spreading these falsehoods must be identified and held accountable.

“The use of the NANS name to propagate such dangerous and unfounded claims is not only a threat to national security but also a grave disservice to the millions of students who genuinely seek positive change through legitimate means.

“Furthermore, we urge security agencies to act decisively in apprehending any individuals or groups attempting to use the name of NANS to incite unrest or disrupt the peace of our nation. We must collectively ensure that the integrity of our democratic processes and the rule of law are upheld at all times.

“NANS remains steadfast in its mission to advocate for the rights and welfare of Nigerian students. We will continue to pursue this mission through peaceful, lawful, and constructive channels. Let it be known that NANS stands firmly for peace, progress, and the unity of our nation.”

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