President Tinubu Announces Leadership for Nigerian Independent System Operator (NISO) ABUJA — President Bola Tinubu has announced key appointments for the newly formed Nigerian Independent System Operator (NISO), solidifying its leadership structure in compliance with the Electricity Act of 2023. Akin-Olugbade and Bello to Lead NISO In an official statement released by the presidential spokesman, Bayo Onanuga, Dr. Adesegun Akin-Olugbade has been appointed as the Chairman of the NISO board, while Engineer Abdu Mohammed Bello will serve as the Managing Director. Additionally, four Executive Directors have been named to oversee critical operations within the agency: Non-Executive Board Members Confirmed The newly appointed non-executive directors represent various sectors within the power industry: These appointments, according to the official statement, were made following a meticulous selection process conducted by the Independent Board Nomination Committee (IBNC) in collaboration with Phillips Consulting Limited. Compliance with the Electricity Act (2023) The establishment of NISO is a significant step in restructuring Nigeria’s power sector. Under the Electricity Act of 2023, the Transmission Company of Nigeria (TCN) has been divided into two separate entities: The Nigerian Electricity Regulatory Commission (NERC) formally inaugurated NISO on April 30, 2024. The Bureau of Public Enterprises (BPE) and the Ministry of Finance Incorporated (MOFI) serve as its primary shareholders, each holding equal equity stakes. Next Steps: NCP to Finalize Recruitment The National Council on Privatisation (NCP) will oversee the final phase of the recruitment process for NISO’s management team. This move is expected to strengthen the agency’s capacity to enhance electricity distribution and grid stability across Nigeria. For further details, visit NERC Official Website. NERC Official Website READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Channel
Full List: Areas in Lagos Affected by NERC’s Electricity Tariff Increase Nigeria’s power sector has recently achieved a record-high electricity generation of 5,801.84 megawatts. According to the Minister of Power, Chief Adebayo Adelabu, the proposed electricity tariff increment will push the nation’s available power generation capacity to approximately 7,000MW. How Tariff Reforms Will Drive Power Sector Growth In a statement released by his Special Adviser on Strategic Communication, Bolaji Tunji, Adelabu emphasized that adjusting electricity tariffs is crucial to unlocking the sector’s full potential. These reforms aim to enhance both power generation and distribution efficiency. “To maintain this progress, the government must address tariff shortfalls amounting to N1.94 trillion for 2024, along with legacy debts of N2 trillion owed to power generation companies (GENCOs). The continued implementation of tariff reforms is essential to ensure consumers pay for the actual energy consumed,” the minister stated. He further explained that once tariffs are fully regularized, the country’s power generation capacity will approach 7,000MW. This would mark a significant milestone in achieving a stable and reliable electricity supply for all Nigerians. Electricity Tariff Hike and Its Implications Last week, the Minister announced plans to increase electricity tariffs for customers in Bands B, C, and D. The objective is to enhance the financial liquidity of the power sector while reducing the government’s subsidy burden. The adjustment will help bridge the tariff gap between Band A customers and those in other categories. The statement also revealed that Nigeria’s available power generation has now peaked at 6,003MW—the highest recorded in the nation’s history. Within this period, the country also achieved a peak power evacuation of 5,801.84MW and a daily energy output of 128,370.75 megawatt-hours (MWh). “We are excited to announce these historic milestones in Nigeria’s power sector,” the Minister remarked. “The increase in power generation and evacuation demonstrates the effectiveness of ongoing sector-wide reforms. These achievements translate into better electricity supply, improved business productivity, and economic growth.” Ongoing Power Sector Reforms and Future Prospects The Minister credited the recent milestones to the collaborative efforts of the Federal Ministry of Power and key industry stakeholders. Their strategic focus has been on overcoming sector challenges and optimizing Nigeria’s electricity infrastructure. These efforts include: While celebrating these milestones, Adelabu urged continued support from state governments, private investors, and the public. He emphasized that collective efforts are necessary to sustain these achievements and further enhance the country’s power supply. Conclusion The recent advancements in Nigeria’s power sector indicate steady progress toward a more reliable electricity supply. However, achieving sustainable power generation requires ongoing investments, regulatory adjustments, and stakeholder collaboration. For more insights on Nigeria’s energy sector, visit Energy Commission of Nigeria for expert analysis and updates. Energy Commission of Nigeria READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Channel
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Economist Bismarck Rewane highlights the importance of power sector reforms in achieving Nigeria’s 2025 economic growth targets. Explore insights on inflation, Naira stability, and GDP forecasts. Prominent economist and CEO of Financial Derivatives Company Limited (FDC), Bismarck Rewane, has projected that power sector reforms will be crucial to achieving Nigeria’s 4.6% economic growth target for 2025. In an in-depth interview, he provided insights into inflation trends, currency valuation, and factors influencing the country’s economic trajectory. Inflation Projection for 2025: Why Lower Rates Are Unlikely Rewane anticipates a 25% inflation rate in 2025, despite the Federal Government’s optimistic projection of 15%. He explains that inflation is historically persistent, with November 2024’s figure reaching 34.6% and a marginal increase expected for December. While inflationary growth may decelerate, significant reductions depend on increased productivity and faster GDP growth, as inflation results from limited supply relative to cash circulation. Rewane highlights that the Central Bank of Nigeria (CBN) is working to control liquidity by reducing excess cash flow. However, he cautions that a substantial drop in inflation would require consistent productivity growth, emphasizing the gap between public expectations and economic realities. Naira Exchange Rate Forecast: Stabilization Predicted Regarding currency valuation, Rewane predicts the Naira will appreciate to ₦1,550 per US dollar by early 2025. His projection is based on improving economic equilibrium, where the gap between the official and parallel market exchange rates has narrowed. Other contributing factors include: He further explains that the Naira remains undervalued, but with cautious optimism, a 10% appreciation is feasible under current monetary policies and stable commodity prices. Banking Sector: Reduced Profitability Expected in 2025 The Nigerian banking sector, which experienced significant profits due to exchange rate gains in 2024, is expected to face lower profitability in 2025. Rewane predicts that the current exchange rate gains will reverse, leading to potential losses for banks. Increased market competition and the ongoing recapitalization efforts will further pressure profit margins. He emphasizes that while the banking sector will remain vital for economic activities, its relative influence will decline due to heightened rivalry and evolving market conditions. GDP Growth Projections and Power Sector Reforms Rewane views the Federal Government’s 4.6% GDP growth target for 2025 as achievable but emphasizes the urgent need for power sector reforms. He asserts that resolving issues within the power sector could potentially elevate GDP growth to 6% or higher. Key recommendations for reform include: Without these changes, Rewane cautions that growth may remain stagnant at around 2.5%, which would merely match Nigeria’s population growth, limiting economic advancement. Key Surprises and Risks in 2025 Rewane differentiates between growth and development, emphasizing the need for both physical and institutional infrastructure. He calls for: He stresses that while physical infrastructure such as roads and bridges remains essential, institutional frameworks are equally critical for sustainable development. Accountability, both financial and moral, must be upheld to drive Nigeria’s progress effectively. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
