Business

No justification for electricity tariff hike – Stakeholders

Published

11 years ago

October 27, 2015

NIGERIANS have been thrown into confusion over whose authority supersedes on the issue of electricity tariff increase. No sooner than President Muhammadu Buhari, assured Nigerians that there will be no hike until supply improved significantly, than the Nigerian Electricity Regulatory Commission, NERC, last week declared a new tariff regime effective from November 1.

Stakeholders note that the new tariff is more than 40 percent higher than the current levels and will be the second time in nine months, even as there has been no significant improvement in the electricity supply situation in the country.
While some consumers admit to better supply in some locations, majority however, insist that the situation is even worse than before, as they enjoy the scarce commodity only for a few hours late into the night, when it is really of no use to them.
No justification: Reacting to the development, an advocacy group, Nigerian Electricity Consumers Advocacy, NECAN, said the recent “consultations” on tariff carried out by electricity distribution companies, DISCOS, were a mere trick to justify tariff hike.
According to NECAN President, Mr. Tomi Akingbogun, “We believe NERC is allowing the public to be over billed by allowing the DISCOs justify the increases. Otherwise, how can it be explained NERC allowed a tariff hike of 12.5 to 48 percent in January, and allowing same percent in October of that same year?
“NERC has allowed the DISCOs to take advantage of everyone and had changed the rules at will thereby breaking all the rules. The condition given to them was to ensure that customers are metered before complaining of losses.” He therefore called on the President Buhari to keep his promises to Nigerians and discourage the exploitation by the DISCos.
Costs evaluation: Also commenting, the Director General, Lagos Chambers of Commerce and Industry, LCCI, Mr. Muda Yusuf, said the proposed upward review in electricity tariff at this time is worrisome, as consumers should not be made to pay for inefficiency or corruption costs.
His words: “It is important to evaluate the elements of the current costs especially the integrity of procurement processes and other operational expenditure under the current dispensation. The risk of bloated costs is typically high with such enterprises, especially as they operate in a monopolistic environment.
“Pricing is only one component (although fundamental) in the power reform process. There are other issues such as the gas availability, security of gas infrastructure, adequacy of investment in gas infrastructure, security and adequacy of the transmission lines, and the general framework to mitigate the risk of investment in the sector.
“The problem of outrageous billing is yet to be addressed. The commitment to the provision of meters for electricity consumers to ensure fair billing is inadequate. A vast majority of consumers still have no meters.
Inadequaciesin billing
Yet this is fundamental to a good relationship between the power firms and their customers. Many consumers feel exploited at this time because of the inadequacies in billing. The contentious fixed charge is still in place. “It is heart rending that the choice of locations of many of the Independent Power Projects, IPPs, was informed more by politics than the economics of power generation.
“Access to a major input in power generation, which is gas, was not sufficiently taken into account. This reality has badly affected the cost profile of the IPP projects. All these are complications and challenges on the path of the power sector productivity,” he maintained.
Breaking the law: According to Section. 76 of the Electric Power Sector Reform Act. MYTO 1.0 states that there will be no increase until 2017, and only 5% will be allowed. DISCOs were given two years to meter all customers. But they refused saying there was no money. Grant was given them, they refused to access it.
Alternatively, customers were asked to fund meter purchase and be refunded from their bills. But for three to four years or more down the line, nothing has been done to that effect. The law does not recognise estimated billing. NERC should stop the practice, but instead it allows it on the excuse that DISCOs must make profit.
Presently, only about 40 percent electricity users are metered. How does NERC want the DISCOs to make profit from the 40% customers captured? This is the question begging for answer if the plan is not to allow them make super profits before metering everyone.
No valid basis for hike: Against this backdrop, the Nigerian Association for Energy Economics, NAEE, condemned attempts by the DISCOs and NERC to increase electricity tariffs, saying that there is no valid and empirical basis for any sort of increase.
Source: Vanguard

Business

BUA Chairman Abdul Samad Rabiu Rises to Become Africa’s Second Richest Man

Published

18 hours ago

April 30, 2026

Sahara Weekly

BUA’s Abdul Samad Rabiu Promises $1.5m Windfall, Goal Bonuses as Super Eagles Fly Past Algeria

BUA Chairman Abdul Samad Rabiu Rises to Become Africa’s Second Richest Man

LAGOS – In a notable reshuffle of Africa’s wealth hierarchy, Abdul Samad Rabiu, Chairman of BUA Group, has climbed to the position of the continent’s second richest individual. The development highlights the accelerating growth of his industrial empire and the increasing global relevance of Nigeria’s manufacturing sector.

Recent valuations show the billionaire businessman overtaking long-standing contenders to secure the number two spot, behind only Aliko Dangote. His rise has been driven largely by the strong market performance of his publicly listed firms, BUA Cement Plc and BUA Foods Plc, both of which have recorded significant gains on the Nigerian Exchange (NGX).

Rabiu’s ascent reflects years of strategic expansion and vertical integration. BUA Cement, Nigeria’s second-largest cement producer, has scaled up operations with new production lines to meet rising infrastructure demand. At the same time, BUA Foods has strengthened its leadership in key segments such as sugar, flour, and pasta, reinforcing its role in regional food supply.

Analysts note that his focus on essential goods has provided stability, helping his businesses maintain steady revenues despite broader economic fluctuations. By prioritizing domestic production, BUA Group has also reduced exposure to external shocks.

Philanthropy and Development Impact

Beyond business, Rabiu has earned global recognition for his philanthropic efforts through the ASR Africa Initiative, a $100 million annual intervention fund supporting education, healthcare, and social development across Africa.

His rise in the rankings is widely viewed as evidence of the power of African-driven industrialization—not only in building wealth but also in delivering meaningful social impact. As Africa’s economic landscape evolves, the shifting billionaire rankings underscore the growing influence of Nigeria’s private sector in shaping the continent’s future.

Bank

ZENITH BANK EXPANDS FRONTIERS WITH CÔTE D’IVOIRE SUBSIDIARY, DEEPENS FRANCOPHONE WEST AFRICA PUSH

Published

2 days ago

April 29, 2026

Sahara Weekly

ZENITH BANK EXPANDS FRONTIERS WITH CÔTE D’IVOIRE SUBSIDIARY, DEEPENS FRANCOPHONE WEST AFRICA PUSH

Zenith Bank Plc has taken a major step in its Pan-African growth journey with the official launch of its Côte d’Ivoire subsidiary, reinforcing its strategic ambition to dominate key markets across the continent.

The grand opening ceremony, scheduled for Wednesday, April 29, 2026, is expected to draw top-tier government officials and regulators from Nigeria and Côte d’Ivoire, alongside leading business executives and members of the diplomatic corps—underscoring the growing economic ties and investment flows between Anglophone and Francophone Africa.

Licensed in December 2025 by Côte d’Ivoire’s Ministry of Finance and Budget and regulated by the UMOA Banking Commission, the new subsidiary will operate from its headquarters at SCI Wall Street, Avenue Noguès, Plateau, Abidjan—one of the region’s most important financial hubs.

The move signals a calculated expansion into Francophone West Africa and positions Zenith Bank as a key financial bridge within the West African Economic and Monetary Union. The subsidiary is designed to drive cross-border trade, offering corporate banking, trade finance, offshore banking, and structured financial solutions tailored to businesses operating across Africa and beyond.

Speaking on the milestone, Group Managing Director/CEO Adaora Umeoji said the expansion aligns with the founding vision of Chairman Jim Ovia to build a globally competitive African bank.

“The launch of Zenith Bank Côte d’Ivoire is a bold step in realising that vision. It opens a strategic corridor into Francophone West Africa and reinforces our commitment to facilitating trade, investment, and enterprise growth across the continent,” she stated.

The subsidiary will be led by Managing Director/CEO Cédric Tano, who brings over two decades of industry experience. He noted that the bank is entering the Ivorian market at a time of strong economic momentum and increasing regional integration.

“Our goal is to position Zenith Bank as a customer-centric institution that blends global best practices with deep local expertise, while supporting businesses with innovative financing and enabling seamless cross-border transactions,” Tano said.

Beyond Côte d’Ivoire, Zenith Bank is accelerating its expansion into Central Africa, with plans underway to enter the Central African Economic and Monetary Community, using Cameroon as a strategic gateway.
With an established presence in multiple markets—including Ghana, Sierra Leone, The Gambia, the United Kingdom, France, the UAE, and China—the bank continues to strengthen its role as a conduit linking African economies to global capital and trade networks.

Founded in 1990, Zenith Bank has evolved into one of Africa’s most formidable financial institutions, maintaining the highest Tier-1 capital position in Nigeria’s banking industry for 16 consecutive years. Built on its core pillars of People, Technology, and Service, the bank has consistently delivered strong financial performance and earned widespread local and international recognition.

Business

ADVAN Wins Global Honour at WFA Awards for “Project Freedom” Initiative

Published

6 days ago

April 25, 2026

Sahara Weekly

ADVAN Earns Global Recognition As WFA President’s Award Winner For “Project Freedom”

The Advertisers Association of Nigeria (ADVAN) has been recognised on the global stage as a recipient of the prestigious WFA President’s Award, presented by the World Federation of Advertisers during its Global Marketer Week in Stockholm. The recognition places ADVAN among a select group of leading industry associations worldwide acknowledged for driving meaningful impact in marketing and society.

The WFA President’s Awards, established in 2010, celebrate national industry associations whose initiatives advance the marketer’s agenda and contribute to positive change. This year’s honours were awarded following a rigorous selection process involving 38 submissions from associations across the WFA’s global network, with winners chosen for their measurable impact and potential for replication across markets.

ADVAN’s recognition comes through its advocacy initiative, Project Freedom, a bold and strategic effort focused on addressing the challenges of stifling, non–data-driven regulations affecting businesses in Nigeria and across Africa. The initiative underscores the importance of evidence-based policymaking while championing the constitutional right to freedom of commerce.

Through Project Freedom, ADVAN has taken a proactive leadership role in engaging key stakeholders and shaping conversations around fair, balanced, and transparent regulation. The initiative reflects a shift toward constructive dialogue and collaboration, ensuring that regulatory frameworks support innovation, protect consumer interests, and enable sustainable business growth.

By earning this global recognition, ADVAN reinforces the growing influence of African marketing institutions in shaping international discourse. Its work highlights how local advocacy, when rooted in data and guided by clear principles, can deliver impact not just within national borders but across the global marketing ecosystem.

The award also affirms ADVAN’s commitment to strengthening self-regulation within the industry, fostering accountability, and promoting standards that align with global best practices while remaining relevant to local realities.

As the marketing landscape continues to evolve, ADVAN’s recognition by the World Federation of Advertisers signals a strong endorsement of its leadership and vision. It positions the association as a key voice in advancing responsible marketing, advocating for enabling policies, and ensuring that businesses can operate in an environment that supports both innovation and economic freedom.