General News
Agusto & Co: The State of the Nigerian Electric Power Industry
As the Electric Power Industry (the Industry) announced yet another review of electric tariffs in January 2021, after much deliberation and delays, a key question that comes to mind is ‘will a rise in tariffs result in better power supply?’ To answer this question it is imperative to examine the state of the Industry post-privatisation.
Since the privatisation exercise that commenced in 2013, the Nigerian Electric Power Industry has remained fraught with many of the same challenges ranging from unreflective tariffs to high loss levels, obsolete infrastructure, weak policy implementation and gas shortages.
All of these have culminated in weak and erratic power supply and a dependence on self-generation by many businesses and households. Furthermore, electricity distribution in Nigeria remains plagued by high technical, operational and commercial inefficiencies.
In 2020, the country’s 11 Distribution companies (DisCos) only billed for 74% of the energy received from the transmission company, below the 81% reported in the prior year. Billing efficiency which has historically been impaired by a low metering rate and energy theft, with only 37% of registered electricity customers metered in 2020, was severely impacted by the Covid-19 pandemic.
Agusto & Co believes the impact of the pandemic was more visible amongst consumer groups with post-paid meters and estimated bills given that the social distancing rules and movement restrictions established to curb the spread of the virus impaired the physical billing process. Collection efficiency also fell marginally to 66% from 68% one year prior.
Consequently, the aggregate technical, commercial and collection (ATC&C) losses for the 11 DisCos rose to 51% in 2020 from 45% in 2019. This high loss level remains one of the many reasons for the kickback from electricity consumers on tariff increases, especially in the absence of a significant and immediate improvement in power supply.
Agusto & Co notes that these challenges have not only weakened the ability of operators to meet electricity demand but also threaten their financial viability, with significant implications for the fiscal health of the country. Despite the series of amendments to the tariff structure, cash flows from MYTO (the Multi Year Tariff Order) have remained insufficient to fully cover the costs of electricity supplied.
The fear of the impact of a ‘rate shock’ on consumers and the accompanying loss of “political capital” has prevented the effective implementation of necessary amendments that will align the MYTO’s assumptions with economic realities. Electricity has thus consistently been sold at a discount, with end-user electricity tariffs much lower than the cost of electricity supplied.
The shortfall from unreflective tariffs has been borne in large parts by the Federal Government of Nigeria (FGN) through multiple intervention funds and payment assurance facilities from the Central Bank of Nigeria (CBN) totaling close to ₦2 trillion (US$4.9 billion ) as at the end of 2020, equivalent to c.6% of CBN’s balance sheet. Despite this level of intervention, the generating companies had estimated receivables of over ₦400 billion in 2020 alone. Whilst the interventions have been central in ensuring the profitability of operators along the Industry’s value chain, they remain insufficient and unsustainable.
More recently, there have been notable efforts by the primary regulator – NERC – to minimise the challenges faced by operators in the Industry. In particular, tariffs have been raised to near cost reflective levels and adjusted to match consumption via an initiative dubbed Service Reflective Tariffs (SRT).
The new tariff model as the name indicates is expected to reflect and match the quality of service received by the ultimate consumers of electricity. Distribution companies will therefore discriminate in the application of tariffs; consumers who enjoy longer daily supply will be expected to pay higher rates and vice versa.
The SRT like other MYTO models has key estimates (and projections) for macroeconomic and industry-specific indicators including inflation, exchange rates and electricity generation. Other company-dependent factors considered in the determination of tariffs include the amount of electricity received and the aggregate technical, commercial and collection (ATC&C) losses.
Ultimately, tariff shortfalls (the difference between end-user tariffs and cost reflective tariffs) are expected to taper off by the end of 2022, with tariffs fully reflective and sufficient to cover the cost of production.
Whilst a number of the assumptions align with market realities, we note that the inflation and electricity generation estimates in the SRT model are much higher than the actual entries reported for the corresponding periods.
In our view, these disparities have the potential to impair the attainment of cost reflectiveness. Agusto & Co believes adopting scenario analysis and modelling will provide a more robust framework to determine an appropriate tariff structure for the Industry in a dynamic macroeconomic environment such as Nigeria’s.
In addition to the SRT, the primary regulator – the National Electricity Commission (NERC) – introduced a minimum remittance threshold for each distribution company which stipulates a mandatory payment that must be made to the bulk trader for electricity received.
Furthermore, in February 2020, NERC introduced guidelines for ‘Merit Order Dispatching’ which involves ranking electricity generation and dispatch by the transmission company of Nigeria (TCN) in ascending order of costs with the cheapest electricity – such as those from Hydro plants with no fuel cost component – ahead of more expensive plants.
The order also provides guidelines on the alignment of invoicing for capacity charge and energy delivered as well as a framework for the settlement of any imbalance between DisCos and TCN.
The Merit Dispatching Order should eliminate the shift of responsibility for load rejection prevalent between DisCos and the TCN and improve the technical and operational efficiencies of these operators.
In August 2020, the Central Bank of Nigeria issued a circular that all deposit money banks are expected to warehouse and manage collection inflows from all distribution companies – DisCos, (including the collection agents of these DisCos) under specific guidelines as contained in the document. The objective of this ‘ring fencing’ is to secure cash collected from the DisCos and ensure that these distribution companies meet their mandatory obligations.
While operators are generally optimistic that the new tariffs and accompanying regulations would enhance efficiency and position the Industry on the trajectory towards achieving financial independence and ultimately improvements in the volume and quality of electricity supply, Agusto & Co remains cautious.
In our view, to truly achieve the objectives of privatisation, reforms need to be accompanied by a strong and enabling regulatory environment. Furthermore, improved access to finance, efficiency in billing and metering as well as consistent and secure gas supply are vital to reap the benefits of privatization in the long run.
While the journey to constant electric power supply remains far and long-winded, Agusto & Co believes the initiatives undertaken by the primary regulator – NERC– if consistently enforced have the potential to move the Industry forward in the right direction.
Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has cautioned the public against fake recruitment offers and fraudulent employment letters circulating in the agency’s name.
Eniola Akinkuotu, head of Media and Corporate Communications of the Commission, stated that NUPRC has received reports of counterfeit and AI-generated appointment letters bearing names not known to the regulator.
The Commission also said fraudsters have been extorting money from jobseekers by promising placement within the agency.
NUPRC has reported the incidents to law enforcement and said investigations are underway.
The regulator reiterated that there is no ongoing recruitment exercise and warned members of the public not to make any payments for supposed job offers.
“Whenever the Commission decides to recruit, the process will be conducted strictly in accordance with extant laws and government regulations,” the statement said.
The Commission urged jobseekers to verify any purported offer and to rely only on official NUPRC communications for recruitment information.
The warning follows growing concerns about the misuse of digital tools, including artificial intelligence, to fabricate apparently authentic documents that can deceive the public.
General News
Africa50 Secures Fresh Capital, Strategic Partnerships to Accelerate African Infrastructure
Africa50, the pan-African infrastructure investment platform, has secured new investment commitments and strategic partnerships with international investors and Tanzanian institutions aimed at mobilising capital for infrastructure development across Africa.
The agreements, announced at the 2026 Infra for Africa Forum in Dar es Salaam, include a US$20 million commitment from British International Investment (BII) to Africa50’s Infrastructure Acceleration Fund (IAF), as well as partnerships covering natural gas, electricity transmission and healthcare infrastructure in Tanzania.
The latest commitments bring the IAF’s total capital commitments to approximately US$330 million.
Under one of the major agreements, Africa50, Tanzania Petroleum Development Corporation (TPDC) and TAQA Arabia will develop the first phase of a small-scale liquefied natural gas (LNG) project designed to distribute domestic natural gas to industrial and transportation customers across Tanzania.
Africa50 is partnering with TAQA Arabia and TPDC on the project, providing project development, investment and financial structuring expertise to develop a bankable model that could be replicated in Tanzania and other markets.
Mussa M. Makame, Managing Director of TPDC, said the partnership demonstrated Tanzania’s commitment to leveraging its natural gas resources to support national development.
“As a gas supplier to this project, TPDC will work with the project partners to broaden domestic access to cleaner, reliable energy and create greater value for the Tanzanian economy,” he said.
Pakinam Kafafi, CEO of TAQA Arabia subsidiary Rosetta Energy Solutions, said the LNG project would convert Tanzania’s gas resources into reliable energy for industry, communities and transportation.
“This project will turn Tanzania’s abundant gas resources into reliable energy for industry, communities and transport, strengthening energy security and accelerating industrialization,” she said.
Africa50 also signed a Memorandum of Understanding (MoU) with Tanzania Electricity Supply Company (TANESCO) to collaborate on electricity transmission Public-Private Partnerships (PPPs).
The partnership is expected to facilitate Tanzania’s first Independent Power Transmission (IPT) project, drawing on Africa50’s experience with its IPT project in Kenya.
Engineer Timoth Mgaya, Acting Managing Director of TANESCO, said the partnership would help Tanzania attract private capital and strengthen its transmission infrastructure.
“Partnering with Africa50 provides Tanzania with strategic project-development and financing expertise as we unlock private capital for Africa’s transmission infrastructure,” he said.
The agreement, he added, would contribute to the development of East Africa’s power market while supporting industrialisation, economic integration and inclusive growth.
In the healthcare sector, Africa50 and Tanzania’s Ministry of Health signed an MoU to expand access to renal care and dialysis services for patients suffering from kidney diseases.
The partnership is expected to provide healthcare infrastructure, reliable medical equipment, experienced operators and long-term investment to strengthen the country’s capacity to deliver life-saving renal services.
Meanwhile, BII’s US$20 million investment in the IAF makes the UK development finance institution the latest Limited Partner in the fund.
BII and Africa50 also signed an MoU to deepen cooperation and identify opportunities for co-investment and further mobilisation of capital into African infrastructure.
The IAF invests in equity and quasi-equity opportunities across power, transport and logistics, water and sanitation, digital infrastructure and social infrastructure.
The fund leverages Africa50’s relationships with African governments, corporates and project developers to deploy capital into infrastructure projects with strong commercial and development potential.
Leslie Maasdorp, Chief Executive Officer of BII, said the partnership would help mobilise additional capital into sustainable infrastructure across Africa.
“Africa’s infrastructure needs are significant, but so are the opportunities,” Maasdorp said. “By combining our expertise, networks and capital, we can help unlock investment that drives growth, creates jobs and improves lives.”
Alain Ebobissé, Group CEO of Africa50, said the new partnerships reflected the organisation’s evolution from a project development institution into a major infrastructure investment platform.
“Africa50 was created to develop bankable projects, mobilize finance for investments in Africa’s infrastructure and accelerate delivery,” he said.
According to Ebobissé, the organisation is now positioned to scale up infrastructure investment by translating the vision of African leaders into commercially viable projects capable of attracting capital from both African and international investors.
The agreements were announced as Africa50 marked its 10th anniversary under the theme, “A Decade of Economic Impact: From Vision to Delivery.”
MTN Nigeria, leading technology company, recently hosted undergraduates from the University of Lagos (UNILAG) and Yaba College of Technology (YABATECH) for an immersive career engagement session, at the MTN Rooftop Plaza, Ikoyi, Lagos.
MTN
The event exposed students to career opportunities across cybersecurity, finance, internal audit and forensic investigations while providing practical insights into the skills required to succeed in today’s workplace.
The session was designed to bridge the gap between academia and industry by helping students better understand the diverse career paths available within the telecommunications and technology sector.
The engagement brought together students studying Economics, Banking and Finance, Cybersecurity and Accounting, providing an opportunity to interact directly with professionals from various business functions.
Through presentations and discussions, participants gained a deeper understanding of the competencies, experiences and continuous learning required to build successful careers in a rapidly evolving business environment.
The engagement comes at a time when technology-related roles, including cybersecurity specialists, are among the world’s fastest-growing occupations, according to the World Economic Forum’s Future of Jobs Report 2025.
During the visit, the students met with senior cybersecurity and forensic professionals who shared insights into their respective fields and discussed emerging trends shaping the future of work.
The sessions also highlighted the wide range of career opportunities available across different fields, demonstrating that success in the industry is not limited to any particular course of study.
Undergraduates were also introduced to the evolving nature of the audit profession, as data analytics, artificial intelligence and cybersecurity are becoming increasingly important areas of focus for internal auditors.
During a session on building a meaningful career in Internal Auditing, undergraduates were encouraged to approach their professional journeys with purpose, continuous learning and a commitment to personal growth.
The session emphasised that career success extends beyond securing employment and involves developing relevant skills, understanding one’s strengths and intentionally pursuing opportunities that align with personal values and long-term goals.
Speaking during the engagement, Chief Internal Audit and Forensic Services Officer, Ibe Kalu Etea, represented by the General Manager, Internal Audit and Forensics, Wasiu Ibrahim, encouraged the undergraduates to remain open to opportunities beyond their academic backgrounds and focus on developing transferable skills. “Students can take any career path they want to. You can upskill and transition into a different career, even if it is not what you studied in school.
“Do not let your course of study determine your career path. Focus on building relevant skills, staying curious and continuously learning because opportunities exist across many fields,” he said.
The Undergraduates also participated in an interactive question-and-answer session, where they sought guidance on career development, workplace expectations and professional growth.
The initiative reflects MTN Nigeria’s commitment to nurturing future talent by connecting young people with industry leaders and equipping them with the knowledge, exposure and confidence needed to navigate their career journeys.
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