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Stakeholders laud DisCos takeover, knock regulators for sector’s woes

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• ‘Power supply won’t progress without takeover of DisCos, poor GenCos’
• Tsavsar: Blame government for power sector woes

Nigerians are gradually inching towards the moment of anagnorisis as bank-backed reforms in the nation’s electricity distribution companies (DisCos) are revealing the true state and regulatory gaps among the Bureau of Public Enterprise (BPE), Nigerian Electricity Regulatory Commission (NERC) and handlers of the 11 utility companies.

At least, five firms – Abuja DisCo, Benin DisCo, Ibadan DisCo, Kaduna and Kano DisCos – have fallen into the hands of the banks they took credit from after they were unable to break even eight years since they were licensed.

Coming at a time of global energy crisis with diesel now hovering around N850 per litre, as government spend heavily to subside Premium Motor Spirit (PMS), most stakeholders, yesterday, were divided between singing the praises of BPE and NERC, and blaming them for allowing the sector to fail in the first place.

The prevailing situation, which comes few days after NERC announced a contract-based electricity market, stakeholders said, may signal the worst days ahead for the sector, insisting that there already exists a breach of the national confidence reposed in BPE and NERC.

While the DisCos are jointly owned by individuals and the government, with the Federal Government represented on the board of all the companies, series of alarm being raised by industry players and consumers over the dismal performance of the firms have now come to limelight mainly because banks are moving to forcefully recoup their loans.

The payback loans notwithstanding, the DisCos are indebted heavily despite huge stimuli from the Federal Government and interventions from the Central Bank of Nigeria (CBN).

BPE and NERC had in a joint statement announced that the core share of 60 per cent of three DisCos’ were taken over due to default in their acquisition loans. The loans were taken in 2013 and drawn from Fidelity and AFREXIM Bank. New boards were swiftly approved while the Managing Directors of the DisCos were replaced.

Coming after takeover of Abuja DisCo and embattled challenges at Ibadan DisCo, NERC had tagged Jos, Benin, Kaduna and Kano as being distressed.

The Director-General of BPE, Alex Okoh and Executive Chairman of NERC, Sanusi Garba, had said: “Today, we were informed by Fidelity Bank that they have activated the call on the collateralised shares of Kano, Benin and Kaduna (Fidelity and AFREXIM) DisCos and that they have initiated action to take over the boards of these Discos and exercise the rights on the shares.

“Fidelity Bank’s action is a contractual and commercial intervention and is between the core investors in the DisCos and the lender. BPE is involved because of the 40 per cent shareholding of government in the DisCos.”

But stakeholders are worried that despite utility companies failing under the watch of BPE, which represents the Federal Government as well as NERC, which equally has all regulatory frameworks to make the sector perform, regulatory lapses contributed to the failure of the sector.

While electricity consumers pay for the inefficiencies of the sector under a Service Based Tariff arrangement, stakeholders are miffed that the current takeover by the banks remained pointer to poor corporate governance, technical and commercial losses as well as the dismal technical regulations in the power sector.

Recall that none of the DisCos, except Eko is currently able to meet minimum remittance order set by NERC, none of them has declared profit for eight years, none of them have also met the Key Performance Indicators (KPIs) set by the sector, leaving consumers to pay for minor repairs and maintenance due to the country’s energy situation.

While industries close down daily due to instability in the sector, energy expert at the University of Lagos, Prof. Yemi Oke, said BPE and NERC should share in the blame over poor performance of the DisCos.

“Who allowed those DisCos to fail? Who allowed the failed DisCos to do all the dirty things that brought them to their knees only to come out and scream that they are inefficient? Why is it only the DisCos that the banks are taking over on ground of insolvency? Did the GenCos not acquire assets with loan from banks? I’m told Mainstream, for instance, got a facility of about $120 million and they have since paid back everything and now making profit from their business,” Oke said.

According to him, Nigeria is in deep and serious energy crisis, adding that 80 per cent of the DisCos are technically insolvent; hence, the problems of the power sector may continue.

An energy lawyer, Madaki Ameh, stated that there was need for the total overhaul of the sector, insisting that the overhaul is long overdue and the takeover of the DisCos remained legally justified under the terms of the agreement, which brought them into the Nigerian Electricity Supply Industry (NESI).

He said the DisCos have not met any of the minimum thresholds set for them by government since privatisation despite the huge investment the government has continued to make in the sector.

“If you compare happenings in the power sector with the telecoms sector, you will see clearly that there were structural defects with the implementation of the privatisation policy in the power sector and that nothing short of a total take over of the DisCos and some of the non-performing GenCos would deliver the sort of efficiency required to transform the Sector in Nigeria,” Amehsaid.

Consumer rights advocate, Adetayo Adegbemle, noted that while BPE and NERC were only doing what they should do, the move was overdue.

“However, we must not lose focus of the fact that most of these restructuring is forced by core investors’ debt to third party, which is the banks at this point. This has not said anything about the actual performance of DisCos as an entity,” Adegbemle said.

According to him, NERC and BPE must do their performance appraisals and issue verdicts based on that across the DisCos.

Public-Private Partnership (PPP) consultant, Joseph Tsavsar, who participated in the privatisation process, said the prevailing situation showed the failure of government in its obligations.

To him, the private operators have no incentives to operate as provided in the privatisation agreement, no adequate energy, no cost reflective tariff and no wheeling infrastructure to wheel the power generated to DisCos above 4,000 megawatts, the same as it was before privatisation.

Adding that there is no independent regulatory body to properly regulate the sector, Tsavsar said a combination of all the failures was causing the current challenges.

“If you want to blame the investors as many do today, it will not change anything, government has to change their way of approach first. I said it before, the banks will be affected as most of the loans are considered bad loans. Taking over the DisCos by the banks will not bring any change, they may only be able to service the loans for now.”

The Nigerian Consumer Protection Network has, however, applauded the takeover of the DisCos, describing it as the right step.

President, Nigeria Consumer Protection Network, Kunle Kola Olubiyo, said with the DisCos’ licences being of 10-year tenure, government failed to conduct a mid-term review, adding that the DisCos failed on all benchmark.

“In the prevailing circumstances, we are on the same page with relevant stakeholders in the present effort to clean up the mess and free the economy held by its jugular by the non-performing utilities,” he said.

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National Issues

OLOJO FESTIVAL: Nigeria bigger than all of us, Ooni tells politicians

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Monarch begins seven-day seclusion, prays for peace, unity

The Ooni of Ife, Oba Adeyeye Ogunwusi, Ojaja II, has urged Nigerian politicians to put the interest of the country above their political differences, saying Nigeria is bigger than any individual or political interest.

The monarch spoke on Sunday shortly before commencing a seven-day spiritual seclusion ahead of the 2026 Olojo Festival in Ile-Ife, Osun State.

The annual seclusion is part of the traditional rites preceding the Olojo Festival, one of the major cultural celebrations associated with Ile-Ife and the Yoruba people.

The Ooni, who is also the Co-Chairman of the National Council of Traditional Rulers of Nigeria, said his period in seclusion would be devoted to prayers for Nigeria, particularly for peace, unity and sustainable development.

“I am appealing to our politicians. They might have differences, but we should know ultimately that Nigeria is bigger than all of us,” the monarch said.

“It is very important for our political leaders to always look inwardly on how to better the lot of the average Nigerians.”

The Ooni urged political leaders to avoid words and actions capable of threatening national cohesion, reminding them that political power was temporary.

“Some have ruled this country before as political leaders, and others will come after them,” he said.

He said his prayers would also cover Nigeria’s democratic process, particularly as the country prepares for the next general elections.

The monarch commended President Bola Tinubu over what he described as non-interference in the activities of the Independent National Electoral Commission, saying such a practice could strengthen public confidence in the electoral process.

He also commended Osun residents for participating in the recently concluded governorship election, saying the outcome demonstrated the ability of citizens to determine their leaders through the ballot.

According to him, Nigerians should continue to have the opportunity to freely choose their leaders without actions capable of undermining the democratic process.

The Ooni’s seven-day seclusion, which began on Sunday evening, will also provide him with an opportunity to prepare spiritually for the sacred rites of the Olojo Festival and deepen his connection with the ancestors.

The exercise precedes the annual wearing of the sacred Aare Crown, one of the major highlights of the festival.

A statement by the Senior Media Officer of the Ooni’s Palace, Sodiq Lawal, issued on behalf of the Director of Media and Public Affairs, Otunba Moses Olafare, said the seclusion marked the beginning of the spiritual phase of the 2026 Olojo Festival.

The festival celebrates Ile-Ife’s indigenous traditions and ancestral heritage and attracts traditional rulers, cultural enthusiasts, visitors and members of the Yoruba diaspora.

The public ceremonies are expected to follow the spiritual rites and culminate in the Ooni’s emergence in the sacred crown.

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Tinubu vows intelligence-led rescue of abducted Oyo pupils, teachers

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President Bola Tinubu on Monday assured residents of Oyo State that ongoing efforts to rescue abducted pupils and teachers in Oriire Local Government Area would be intelligence-driven, coordinated and sustained.

The President said the Federal Government would deploy every lawful means, including kinetic and non-kinetic measures, to ensure the safe return of the victims abducted during the May 15, 2026 attack in Esiele and Yawota communities.

“Our rescue efforts will be intelligence-led, careful, coordinated, and sustained. We will deploy every lawful tool available, both kinetic and non-kinetic, to ensure our children and teachers are safely returned home,” Tinubu stated in a statement posted on his X handle on Monday.

The President also expressed sorrow over the killing of a school teacher during the abduction and extended condolences to his wife, Mrs Mary Oyedokun, and the bereaved family.

“I also extend my deepest condolences to Mrs Mary Oyedokun, the wife of the late school teacher and her family. Their sacrifice will not be forgotten, and his family will not be abandoned,” he said.

Tinubu stressed that children should never be exposed to the trauma of abduction, noting that no parent should endure the pain associated with such incidents.

“No child should be taken from the safety of a classroom. No parent should have to endure this anguish,” the President added.

He assured affected communities that efforts to secure the release of the abducted pupils and teachers would remain sustained and intelligence-driven.

The statement comes amid growing concerns over insecurity in schools and rural communities following the abduction, which prompted the Federal Government to dispatch a high-powered delegation to the affected communities in Oriire Local Government Area.

The delegation included the Chief of Staff to the President, Femi Gbajabiamila; the National Security Adviser, Nuhu Ribadu; the Minister of Defence; and the Inspector-General of Police, Kayode Egbetokun, alongside other senior government and security officials.

Tinubu further disclosed that he had approved additional security measures, including the deployment of a specialised security unit equipped with advanced rescue capabilities to intensify efforts towards the safe return of the victims.

“I have also directed the deployment of a specialised security unit with advanced rescue capabilities to intensify efforts to secure the safe return of the abducted pupils and teachers,” he stated.

The President also revealed that the Federal Government, in collaboration with the Oyo State Government, was mobilising 1,000 forest guards to improve surveillance in forest corridors frequently exploited by criminal elements.

According to him, the initiative would be complemented by broader operational measures aimed at strengthening rescue operations and preventing future attacks.

Tinubu added that a request for the establishment of a military base in the affected area was receiving urgent consideration as part of efforts to bolster security.

Authorities have continued rescue operations amid rising concerns over the safety of schools and rural settlements, insisting that efforts remain focused on securing the release of the abducted victims and preventing a recurrence.

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48 alleged terror financiers named by FG {SEE FULL LIST}

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The Federal Government, on Saturday, published a list of 48 individuals and entities allegedly linked to terrorism financing in Nigeria, naming suspects with reported ties to outlawed groups including the Indigenous People of Biafra, Ansaru, and the Islamic State West Africa Province.

The list was released by the Nigeria Sanctions Committee as part of intensified efforts to disrupt financial networks sustaining terrorist activities across the country.

In a statement accompanying the publication, the committee said the designation of the individuals and organisations was in line with Nigeria’s legal and international obligations to combat terrorism financing.

“The Nigeria Sanctions Committee has approved the designation of the following individuals and entities for their alleged involvement in terrorism financing,” the statement read.

It added, “The action is pursuant to relevant laws and regulations aimed at identifying and freezing assets of persons and organisations linked to terrorist activities.”

The committee explained that the move was targeted at dismantling the financial backbone of insurgent and extremist groups operating within and beyond Nigeria’s borders.

Among those listed are individuals reportedly associated with the Indigenous People of Biafra, a proscribed separatist group; Ansaru, a faction linked to Al-Qaeda; and the Islamic State West Africa Province, one of the most active terrorist groups in the region.

Security experts have repeatedly stressed that cutting off funding sources remains a critical strategy in weakening terrorist operations.

Speaking on the development, a senior government official familiar with the process said the publication sends a strong signal about Nigeria’s resolve to confront terrorism at its roots.

“This is not just about naming names; it is about choking the financial lifelines of terror networks. Once funding is disrupted, their operational capacity is significantly weakened,” the source said.

The committee further noted that relevant authorities and financial institutions have been directed to take necessary steps in enforcing sanctions, including the identification and freezing of assets linked to the designated persons and entities.

“The public is also advised to remain vigilant and report suspicious financial activities to appropriate authorities,” the statement added.

The Federal Government reiterated its commitment to safeguarding national security, insisting that individuals or groups found culpable would face the full weight of the law.

As of the time of filing this report, detailed breakdowns of the sanctions and timelines for enforcement were yet to be made public.

 

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