Truth and Reason
Despite Macroeconomic Headwinds, 15 Nigerian Companies Post N12.7tn Revenue in H1 2025Through much of the Goodluck Jonathan and early years of the Muhammadu Buhari administrations, the Nigerian government was forced to contend with repeated threats by privately-run oil marketing companies to either stop the importation of petrol, go on strike, or lay off thousands of workers over government’s inability to pay outstanding subsidy bills owed the companies.
To be fair, Tinubu is not the first and will probably not be the last president to bury his head in the sand as far as Nigeria’s electricity sector is concerned. Post-privatisation, Presidents Jonathan and Buhari lacked the political will to get the pricing regime right in the sector, thereby exacerbating illiquidity, stunting investment,and rendering most companies in the electricity value chain unviable.
Then there is Transcorp Group’s power subsidiary, which already owns the 972MW Ughelli power plant in Delta State and 966MW Afam power station in River State butexpanded its energy footprint by buying 60% of Abuja Electricity Distribution Company last year. And now following promptly in Transcorp’s footsteps is the Transgrid Enerco consortium, whichis about to close a deal with its financiers to pay for a 60% stake in Eko Electricity Distribution Company .
But even though it looks good on paper, EKEDC, like other DisCos, continues to be hampered by liquidity and technical constraints that impede its ability to fully deploy infrastructure, adequately meter its customers, and provide 24/7 electricity to them. A sizeable proportion of its Band A customers that are mandated to get 20 hours of electricity daily at the minimum, should count themselves lucky if they get up to four hours of electricity supply.
Add to this the passage of the Electricity Act in 2023, which has ushered in the regulatory tailwinds that Transgrid can ride on to improve operational autonomy and growth at Eko DisCo. For instance, the Act’s enabling framework provides for cost-reflective tariffs and operational autonomy for DisCos. It also paves the way for a flexible market structure by way of bilateral contracts between DisCos and GenCos which will ultimately drive growth.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
DisCos assure Lagos residents of daily power restoration amid TCN maintenance“We now need to start believing in our institutions,” said Mr Oduntan. “I’m not from TCN; I speak for the DisCos.
Read more »
Mikano Power reinforces after-sales service with 24/7 support for uninterrupted powerNigeria's independent online newspaper
Read more »
BITML 2025 to Unite African, International Thought Leaders With Emerging Entrepreneurs, Business OwnersTruth and Reason
Read more »
Shaping Smart Nations: How London School of Emerging Technology (LSET) Global Education Model Is Resonatin ...Singapore’s journey towards becoming a Smart Nation has been marked by its commitment to harnessing technology for economic competitiveness, sustainability, and quality of life improvements.
Read more »
Boko Haram terrorists cell emerging near Abuja – ISS research revealsA Trusted Nigerian Newspaper
Read more »
Tinubu, First Lady Rejoice With D'Tigress for Emerging 5th Consecutive Time AfroBasket WinnerTruth and Reason
Read more »