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Nigerians Get New Electricity Tariffs

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Dr. Sam Amadi, chairman of the NERC
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From June 1, some electricity consumers will pay far lesser than what they are currently paying for fixed charges and energy consumption.

A few others, according to the Nigerian Electricity Regulatory Commission (NERC), will pay ‘slightly higher’.

For instance, residents of Abuja and environs, whose fixed charge was projected to increase to N1,500 from the N750 currently being paid, will from June 1 pay N702.

This is coming as NERC released the reviewed Multi Year Tariff Order (MYTO), which according to the commission, would take effect from this Sunday.

Poor electricity consumers will have their electricity consumption subsidised by the Federal Government, courtesy of a Power Assistance Fund being finalised by NERC and the Ministry of Power.

Dr. Sam Amadi, chairman of the NERC, who briefed reporters in Abuja yesterday, said the full details of the reviewed charges would be released soon.

Amadi, who announced that the subsidy would be captured in the next tariff review, stressed that the consultants working on the electricity subsidy fund were considering how the scheme operates in some other countries.

He said: “The Power Assistance Fund is not for those who don’t pay their bills or who cannot pay, so to say. It is for those who pay their bills actually. Because if you don’t pay your bill over sometime, and after due process, they will likely disconnect you. It is for poor or low-income consumers who, by way of policy, will be the one government will subsidise or mitigate the tariff they pay overall.

He said: “What we will see is that most of the consumers did not have any increase in their energy charge apart from Residential Two (R2) customers that have N1 increase in some places.

“So, instead of having a bigger Energy Charge (EC) increase that was published for 2014 MYTO since 2012, we now have the same fixed charge of N750 from the supposed N1500 which means a huge reduction and then a slight increase of about N1 or so for R2 customers.

“In Ikeja Disco for instance, R2 customers have their charges reduced because both their customer number and cost of service is optimum as they have what they require to serve their customers. They are more in a cluster, so the cost is cheaper and when they did the average with the cost of price they received, their energy charge came down lower.”

On the rates for the different states, he stressed: “The fixed charge has never been uniform, whether across customers’ classes or distribution companies. The tariffs we have always set since 2012 have been disco specific tariffs. It is possible that the fixed charge of some discos may be the same in some instances, but the principle is that they are essentially different costs and sizes.

“Even among customers’ classes, what R2 pays is not the same as what R3 pays and not what C2, C3 and other customers pay. They pay differently based on the calculation. If you go to our website since 2012, you will see that fixed charge has always been different.”

Noting that review had reduced the fixed charge component of the tariff that would have taken effect on June 1, Amadi noted how the result of the review indicates a reduction of the wholesale tariff that would be paid to generating companies as from June 1, 2014.

He said: “The general public is however to note that the wholesale tariff paid GENCOS is only one of the three components that make up the total tariff paid by consumers. The other two parts are the transmission and distribution components. Recall that one of the indices for the minor review is ‘available generation capacity’. Unfortunately, the well-known fact today is that gross available capacity from the grid as of March 31 review date is 4,306 MW. This is well below the 9061 MW that NERC had, on the basis of all information available to it, projected when MYTO was set in June 2012. This is a 52 per cent reduction on projected capacity. The reasons for this huge loss has been extensively reported and explained.

“Suffice to say that the consequences of this loss of available capacity completely outweigh the benefits that were gained from the positive macro-economic indices earlier discussed. The direct consequence for the Nigerian Electricity Supply Industry (NESI) is that the significant fixed costs incurred by all three sectors of the NESI have to be spread over a much lower quantity of energy projected to be sold to consumers. For this reason, the commission regrets that the distribution element, that is, the end user or customer tariff, will have to increase, this is in fulfilment of the statutory obligation in Section 5.76 (2) (a) of the Electricity Power Sector Reform Act of 2005 which mandates that the commission sets a methodology that allows ‘a licensee that generates efficiently to recover the full costs of its business activities, including a reasonable return on the capital invested in the business.’

“It is also noted that the cost of this increase would have been much higher but for the good macroeconomic management that produced a real reduction in wholesale (generation sector tariffs).”

He stressed further: “Our commitment as a regulator is to not only ensure that Nigerian electricity consumers have access to adequate and reliable electricity, but also to provide processes and mechanisms for effective remedies for any violations of service obligations by the service providers in the new Nigerian electricity market.”


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NDPC to Launch Regulatory AI Sandboxes for Data Protection in Nigeria

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The Nigeria Data Protection Commission (NDPC) has partnered with private sector ICT firms to explore the use of adaptive regulatory sandboxes that can support the integration of Artificial Intelligence (AI) into data protection frameworks while enabling cross-border innovation.

This was revealed during a one-day workshop held in Abuja titled “Co-Creation Lab on Africa Sandboxes for AI”. The event also featured the evaluation of the African Sandbox Outlook report.

The workshop focused on how regulatory sandboxes could serve as safe testing environments for AI technologies and foster data-driven innovation on the continent.

Speaking at the event, National Commissioner of the NDPC, Dr. Vincent Olatunji, said the commission is actively examining the role of regulatory sandboxes as part of its mandate under the Nigeria Data Protection Act (NDPA).

Represented by Ms. Adaobi Nwankwo, Head of the Commission’s Innovation Unit, Olatunji said: “Sandboxes aim to encourage responsible AI, foster compliance with the NDPA, and promote trust, fairness, accountability, and transparency.

“The goal is to create a competitive environment for AI developers and data scientists while addressing Africa’s unique challenges.”

He noted that a functional regulatory sandbox would need to operate within real-time legal and regulatory frameworks to ensure effective testing of AI and data-driven solutions.

 Also speaking at the workshop, Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, stressed that while AI offers transformative opportunities for digital infrastructure, network optimization, and public service delivery, it also raises complex regulatory and ethical concerns.

Represented by Mr. Babagana Digima, Deputy Director of New Media and Information Security at NCC, Maida highlighted the significance of regulatory sandboxes as tools for collaborative policy development:

“Sandboxes provide a controlled environment for innovators to test AI under regulatory supervision.

“This encourages collaborative learning, risk mitigation, and evidence-based policymaking. We’re aligning this with the National Artificial Intelligence Strategy, the Digital Economy Policy, and the Nigeria Data Protection Act.”

Principal Consultant at Kontemporary Konsulting, Dr. Jimson Olufuye, called for greater regulatory harmonization across African nations to facilitate easier data flows and AI integration.

“We need to optimise data protection processes and scale products across West Africa.

“There’s a need for sandboxes that support cross-border interoperability and AI systems embedded with robust governance structures,” he said.

Olufuye noted that inconsistencies in data laws across African jurisdictions could hinder innovation if not addressed through collaborative regulation.

Ms. Morine Amutorine, Africa Lead for the Datasphere Initiative, emphasized that AI sandboxes can be implemented in countries regardless of their regulatory maturity.

According to her, “ sandbox allows stakeholders to assess the impact of data-driven solutions and identify areas requiring new or updated regulation.”

Meanwhile, the African Sandbox Outlook report, presented at the event, noted that sandboxes are increasingly being recognized as powerful tools for testing regulatory and technical approaches to AI and data governance.

The report concluded that regulatory sandboxes across Africa are pivotal for tackling the continent’s data challenges, supporting innovation, and unlocking data value chains.


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NIMASA Embraces Technology to Strengthen Regulatory Mandate

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The Nigerian Maritime Administration and Safety Agency (NIMASA) has announced its commitment to leveraging technology to enhance its regulatory functions, improve efficiency, and boost revenue generation for the Federal Government.

According to a statement by the agency’s Head of Public Relations, Osagie Edward, on Sunday, the move follows a comprehensive internal review of NIMASA’s operational systems aimed at closing gaps in monitoring and compliance.

A key component of the technological transformation is the deployment of the Maritime Enhanced Monitoring System (MEMS), which brings digital traceability to the core of Nigeria’s maritime operations.

“MEMS provides real-time visibility into vessel movements, operational logs, and regulatory interactions,” Osagie explained.

“With automated alerts, smart invoicing, and centralized data integration, NIMASA can now detect, document, and respond to maritime activities with greater precision and efficiency—eliminating unnecessary bottlenecks while strengthening compliance.”

He noted that one of the major targets for improvement is waste reception services—routine for both domestic and international vessels—which have historically lacked proper tracking.

This has resulted in unmonitored activities and substantial revenue losses. Through MEMS, each waste offload can now be logged, time-stamped, and automatically billed, ensuring environmental standards are upheld while generating consistent revenue.

Marine pollution control, another critical area under NIMASA’s mandate, has also suffered in the past from limited digital oversight.

“Without satellite tracking and automated reporting, pollution events often went unnoticed or were reported too late to mitigate environmental damage,” he said.

“Now, with modern surveillance systems, digital logbooks, and real-time alerts, NIMASA can respond swiftly to pollution incidents, recover environmental damages, and hold polluters accountable both legally and financially.”

Osagie further explained that past revenue shortfalls experienced by the agency were largely due to outdated manual processes, fragmented data systems, and inadequate digital enforcement tools—factors that external actors exploited for personal gain.

“The ongoing reforms at NIMASA are designed to overcome these systemic weaknesses. By investing in digital infrastructure and streamlining monitoring systems, the agency is positioning itself to fulfill its statutory obligations with greater transparency, efficiency, and accountability,” he added.

Responding to recent reports claiming the agency had commenced a concession of its operations, Osagie dismissed the allegations as false and misleading.

“There is no iota of truth in the reports suggesting that NIMASA has embarked on any form of concession. These are the handiwork of both internal and external elements attempting to exploit the existing system for personal benefit,” he stated.

“We urge the public to disregard these baseless claims and instead support NIMASA’s transformation journey, which aligns with the national objectives of the Ministry of Marine and Blue Economy under the Renewed Hope Agenda of President Bola Ahmed Tinubu.”

He reaffirmed NIMASA’s commitment to enhancing maritime governance, environmental protection, and revenue optimization for national development.


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Nigerian Tech Prodigy sets World Record with Smallest GPS Tracker

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Young Nigerian tech genius, Oluwatobi Oyinlola, has developed the world’s smallest GPS tracking device, a prototype measuring just 22.93 x 11.92 mm.

Recognised by the Guinness World Records, the device was created at the prestigious Massachusetts Institute of Technology (MIT), USA, on April 27, where he is employed as a researcher.

It has been hailed for its potential across industries, from logistics and personal safety to medical devices and wildlife monitoring.

Nigeria’s President Bola Ahmed Tinubu celebrated the feat in a post on X, praising Oyinlola for showcasing the ingenuity of the West African country’s youth. “You have just shown the world that Nigerian youth can!” he wrote.

Adding to the accolades, Minister of Communications, Innovation and Digital Economy, Bosun Tijani, lauded the innovation as a symbol of national pride and technological potential.

He commended Oyinlola’s journey, noting his early support for the young inventor’s IoT startup. “Long before this global recognition, I had the privilege of backing Oluwatobi. His journey, now continuing at MIT, is a powerful reminder of the extraordinary potential of our people,” Tijani said.

The prototype not only marks a leap in miniaturised technology but also highlights Nigeria’s growing footprint in global innovation. Bosun added that as Nigeria intensifies efforts to nurture homegrown tech talent, Oyinlola’s success is a beacon for the next generation of innovators.

“The world is only beginning to see what you’re capable of,” said the Minister.

 

 


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