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States Slashing Power Tariff Must Pay Subsidy — NERC

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The Nigerian Electricity Regulatory Commission has stated that state governments do not have authority over the national grid or power stations established under federal laws or operating with licences issued by the commission.

This clarification came in response to the controversy surrounding the Enugu Electricity Regulatory Commission’s reduction of the Band A electricity tariff.

In a statement on Thursday, the national regulator advised states to fully reflect wholesale costs in electricity tariffs or be prepared to subsidise any shortfall.

The commission acknowledged that states with full regulatory control over their internal markets are permitted to establish and regulate transactions within their state electricity sectors, including creating tariff structures for end-users.

However, electricity distribution and generation companies cautioned that states can only independently set tariffs once they begin producing and transmitting electricity themselves.

In its Thursday statement, NERC warned that “as states do not have jurisdiction over the national grid and over electric power stations established under federal laws/operating under licences issued by the commission; they must holistically incorporate the wholesale costs of grid supply to their states without any qualification or deviation in their design of tariffs for end-use customers in order not to distort the dynamics of the market or be prepared to make a policy intervention by way a subsidy for any deviation in the tariff structure that distorts the wholesale generation, transmission and legacy financing costs in the Nigeria Electricity Supply Industry.”

The commission stressed that no regulatory body should make decisions that would financially compromise the national grid or wholesale market, contrary to the constitutional powers granted to them.

It noted that it had received complaints regarding the Tariff Order (Order No. EERC/2025/003) issued by the Enugu State Electricity Regulatory Commission to its licensee, Mainpower Electricity Distribution Limited, which relies solely on power from the national grid.

NERC stated that stakeholders in Nigeria’s electricity market have expressed concern over the tariff cut to N160.4 per kWh for Band A customers in MEDL’s network and the freeze on tariffs for other customer bands, given the impact on wholesale generation, transmission, and legacy financial obligations. The N160.4 rate was largely achieved by reducing the current average Generation Tariff of N112.60 per kWh to N45.75, assuming a subsidy of N66.85 per kWh.

NERC explained that section 34(1) of the Electricity Act mandates the commission to maintain efficient electricity market structures and ensure optimal resource use. It added that both NERC and EERC share statutory obligations and should avoid actions that could jeopardize the financial integrity of the electricity industry.

The commission said it is currently engaging EERC to resolve any misunderstandings regarding its tariff order and reiterated its commitment to ensuring the market remains financially viable, in line with national law.

Meanwhile, the Association of Nigerian Electricity Distributors and the Association of Power Generation Companies have urged states, including Enugu, to wait until they generate and transmit their own electricity before reducing tariffs.

The CEO of ANED, Sunday Oduntan, cautioned Band A customers in Enugu not to celebrate yet, stating that it is not possible to receive 20 hours of power daily at a rate of N160 per kilowatt-hour.

On Sunday, the Enugu Electricity Regulatory Commission directed MainPower Electricity Distribution Company to reduce the Band A tariff from N209/kWh to N160/kWh, starting August 1.

This decision triggered backlash from generation and distribution firms, who accused EERC of placing further financial pressure on a sector already burdened by N5.2 trillion in government debt.

While EERC said it had done the necessary calculations before deciding on the new tariff, Oduntan argued that no state currently has the authority to independently set power prices unless they control the entire value chain.

Earlier, Oduntan raised alarm over increased refusal by customers to pay electricity bills following the Enugu tariff cut, saying it could destabilise Nigeria’s power industry.

He said that since EERC’s announcement, customers in other states have begun demanding similar reductions, with some refusing to pay at all.

The CEO of the Association of Power Generation Companies, Joy Ogaji, echoed Oduntan’s position, asserting that states cannot independently set prices for electricity they do not produce.

“The fact speaks for itself. The fact that EERC still regulates a product it does not produce at the state level, but from the wholesale market, they cannot unilaterally regulate that price,” she said.

Ogaji added that EERC’s tariff reference to NERC included a subsidy she called imaginary, saying no official government policy confirms such a subsidy, nor does any financing plan exist to manage the sector’s growing debts, which are harming the financial health of power generating companies.

“Their claim based on an imaginary subsidy is baseless. You can’t build something on nothing. Tariff documents are not child’s play. They form the fulcrum for many decisions, including business decisions, potential investors, and so on.

“This regulatory rascality will not be sustainable for decentralisation. Do you even have a justification for claiming a subsidy? Let’s assume there is one in a federal market, you have applied to be independent of? Can you eat your cake and still have it? How do you even claim this subsidy as a state? Unfortunately, we lack leadership in this sector,” she said.

In its response, the EERC said its decision to reduce the tariff had no impact on the cost of power generation. It stated that, based on MainPower’s operational costs, maintaining the previous Band A rate of N209/kWh was not justified.

In a statement, Reuben Okoye, EERC’s Commissioner for Electricity Market Operations, said the commission is working toward creating a sub-national electricity market that is transparent, accountable, reliable, and sustainable. He added that utility service costs would continue to be reviewed to meet the needs of Enugu residents.

BIG STORY

Coup Plotters Marked Me For Arrest, Assassination —- Defence Minister

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The Minister of Defence, Gen. Christopher Musa (retd.), on Sunday disclosed that he was among the intended targets of the recently foiled coup plot against President Bola Tinubu, revealing that the conspirators planned to arrest or shoot him if he resisted.

Musa made the disclosure while speaking as a guest on Politics Today, a Channels Television programme, where he also described the suspects behind the plot as “a bunch of very unserious individuals.”

While admitting that he played a key role in helping security agencies nip the plot in the bud, the former Chief of Defence Staff said he was personally marked for arrest by the plotters.

“I was also a target, I am sure you know. I was supposed to be arrested, and if I refused, I was supposed to be shot,” he said.

“But that’s the job. Anybody who goes into a coup zeroes his mind because he knows if he succeeds, good.

If he doesn’t succeed, whatever consequences come, you are ready for it.”

Musa dismissed the capacity of the suspects to successfully challenge the Nigerian state, saying their actions showed a complete misunderstanding of Nigeria’s democratic history and the strength of its armed forces.

“But again, I think these guys were just a bunch of very unserious individuals that I really don’t know. If you look at the calibre of the individuals, I really don’t know what got into their heads to think that they could take on the armed forces like that,” he said.

He added that even without the intervention of the military, Nigerians would have resisted any attempt to overthrow a democratically elected government.

“What I even said was that even Nigerians would have fought them. Even without the armed forces, Nigerians would have stood against them. Remember how Nigerians fought against the military rule for quite some time. And that’s why Mr. President has always been one of them.

“So now, for them to think they could just wake up one morning and do that in Nigeria, I think something went wrong in there. They need to reset their brains.”

Speaking on the arrests made so far, the Defence Minister said most of those involved had been apprehended, with only “maybe one or two” still at large.

“So far, most of them have been caught. If there’s anyone, maybe one or two. It just started from the colonel himself, who felt disgruntled because he was not promoted. He didn’t meet the marks to be promoted,” he said.

Musa explained that the plot was driven largely by personal grievances, noting that the armed forces’ promotion system is strict and merit-based.

“You know that the armed forces is really very strict about its promotions system. But he didn’t make it. So what he decided to do was probably go around, look at other people that had one issue or the other…with the aim of bringing them in,” he said.

Expressing concern for junior officers allegedly drawn into the plot, Musa said, “My pain is all those young officers who didn’t understand what was going on that he put in this mess. Now they have to face the consequences.

“So everything evolves around him as an individual. But he was just a colonel. I can’t even imagine a colonel ever thinking of doing such a thing.”

The Defence Minister stressed that executing a coup in modern-day Nigeria was virtually impossible, unlike in the past.

“That was in the past. That was Nigeria of yesteryears. It’s impossible,” he said, adding that security agencies relied on verified facts, not speculation, before acting.

“If there’s a situation where you hear that somebody is trying to do something and you walk in, what facts do you have because you are going to go to the courts? If you can’t present it in the courts, then they throw you away. And then you look stupid.”

He said the investigation was thorough and collaborative, involving multiple intelligence agencies to avoid indicting innocent officers.

“Since I was there, I was the one who inaugurated the board. I made sure the board started. We sent them to DIA to do a thorough investigation along with the NIA, DSS, and every other person. So it’s a holistic investigation that was carried out because we didn’t want any innocent person to be indicted,” Musa said.

He dismissed claims that the plot was driven by dissatisfaction with the current administration, insisting it predated Tinubu’s inauguration.

“These things were planned even right before the president took office. So it was a plan they had ahead of him since they knew he was the one who won the election,” he said, describing the development as “quite unfortunate.”

Musa further noted that past coups succeeded only with the backing of top military commanders, a factor completely absent in the current case.

“If you remember, during those days when they had coups, you had to have most of the big boys like the GOCs and service chiefs…You don’t have any of such. They are just very low-ranking individuals that have no access to some of these things,” he said.

“For anybody to want to truncate democracy in this disposition, I think there’s something really wrong with them.”

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BIG STORY

Public Infrastructure Vandals Should Be Shot On Sight —— Bayo Onanuga

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Bayo Onanuga, Special Adviser to the President on Information and Strategy, has called for vandals of public infrastructure to be shot on sight.

Onanuga made the statement in a post on X on Sunday, while reacting to a video showing damage to an ongoing federal road project.

“Just shoot these unconscionable vandals/thieves at sight. They are the worst species of citizenships,” he wrote.

The video showed men wearing reflective jackets, emblazoned with the crest of the federal ministry of works, narrating how vandals cut and removed starter bars, also known as shoulder rods, at the reconstruction site of the Ibadan-Ilesa/Ife federal highway.

An official in the footage said the vandals removed sections of the iron bars they could access, and cut out others entirely, despite security presence at the site.

“So what happens is that we have some people vandalising these starter bars. You can see that they are pressing in some places, but all these vandals, they cut out of it, they remove the ones they could remove,” he said.

“They cut the ones that are very solid and remove the ones they can remove entirely. These are starter bars. This is a very bad thing they are doing. These are vandals, and we have security patrols.”

The Ibadan-Ilesa/Ife highway is one of the major roads being reconstructed by the federal government.

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BIG STORY

Adron Homes Hails Ondo State at 50, Celebrates Legacy of Excellence

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The Chairman, Board of Directors, Management, and staff of Adron Group have congratulated the Government and people of Ondo State on the celebration of its 50th anniversary, describing the milestone as a significant chapter in Nigeria’s federal history and a testament to visionary leadership, resilience, and purposeful development.

In a goodwill message issued to commemorate the Golden Jubilee, Adron Group noted that since its creation in 1976, Ondo State has consistently distinguished itself as a centre of honour, intellect, and enterprise. Fondly referred to as The Sunshine State, the state has produced generations of outstanding professionals, administrators, and national leaders whose contributions continue to shape Nigeria’s socio-economic and political development.

According to the company, the strength of Ondo State lies not only in its rich cultural heritage and intellectual depth, but also in the values of integrity, diligence, and excellence that define its people. These qualities, Adron noted, have remained the bedrock of the state’s enduring relevance and national impact over the past five decades.

Adron Group further commended the state’s renewed drive in recent years towards infrastructure development, economic diversification, industrial growth, and youth empowerment, describing these initiatives as indicators of a forward-looking, inclusive development agenda anchored in sustainability and long-term prosperity.

“As a corporate organisation committed to nation-building and sustainable development, Adron Group recognises Ondo State as a strategic partner in progress,” the statement read. “We commend His Excellency, Lucky Orimisan Aiyedatiwa, Executive Governor of Ondo State, and the leadership of the state at all levels for their dedication to public service and their commitment to the advancement of the people.”

As Ondo State marks its Golden Jubilee, Adron Group joined millions of well-wishers in celebrating a legacy of excellence, strength of character, and promise, while expressing optimism that the next fifty years will usher in greater milestones in economic vitality, social advancement, innovation, and enduring peace.

The company concluded by wishing the Government and people of Ondo State continued progress and prosperity, adding that the Sunshine State remains well-positioned to shine even brighter in the years ahead.

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