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Mainpower petitions EERC, rejects tariff reduction

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The Mainpower Electricity Distribution Company, has filed a formal petition before the Enugu Electricity Regulatory Commission (EERC), demanding immediate suspension of its new tariff order pending the hearing/determination of its petition.

The Spokesman of Mainpower, Mr Emeka Ezeh, in a statement on Wednesday in Enugu, said that the petition, dated August 14, 2025, was a fallout of the new tariff reduction order by the EERC.

Ezeh said that the new tariff reduction order by the EERC took effect from August 1, 2025.

It would be recalled that the EERC had in the said order, reduced tariff for Band A customers from N209/kwh to N160.40/kwh, while freezing Bands B-C.

The latest development was roundly condemned by both the National Electricity Regulatory Commission (NERC), the Generation Companies (Gencos), other Distribution Companies (Discos) as well as the Federal Ministry of Power.

The spokesman said that all the stakeholders had described the tariff reduction order as unsustainable, urging the EERC to put a halt to it, but the Commission “doubled down”.

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“Mainpower has now approached the Commission formally, seeking an immediate suspension of the order pending the hearing and determination of its petition.

“The petition, supported with a four-paragraph affidavit, was signed by Dr. Ernest Mupwaya, Managing Director/CEO, Mainpower Electricity Distribution Limited.

“It is expressly asking for ‘a review of order No. EERC/2025/003: Tariff Order for Mainpower Electricity Distribution Limited 2025’, to avoid loss of revenue due to downward review of tariff.”

He said that the EERC is the sole-respondent to the petition, which was brought pursuant To Section 36 of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended).

“Also in pursuant of Sections 11,12, 13, 20, 21, 33, 34 and 35 of the Enugu State Electricity Regulatory Commission Regulation (Regulation No. EERC-R-001, Business Rules).

“Regulation, 2024, Section 4.1.(C) & Schedule 1 of Regulation No. EERC/R004: Enugu State Regulatory Commission: Methodology for Tariff Regulation, 2024 and Under the inherent jurisdiction of the Commission.

“Mainpower stated in the petition that the tariff order published by the Respondent on Friday, July 18, 2025, for the Disco was not agreed by the parties

“The same did not comply with the Regulation No. EERC/R004: Enugu State Regulatory Commission: Methodology for Tariff Regulation, 2024 (Methodology for Tariff),” he said.

According to him, the petitioner averred that Section 4.1(c) provides that: “In order to avoid ‘Gold-Plating’ in the tariff using rate of return regulation, the licensee shall be required to review cost with the Commission.

He said, “It is the cost agreed with the Commission that shall be allowed for the operator to use in the tariff model for the determination of price that shall apply in contracts.

“This is because the value chain of electricity business in Enugu State shall be subject to contracts and prices shall be determined based on the applicable methodology published by the Commission in its website. (d) The review process for the cost shall be as prescribed in the Schedules to these Regulations”.

“It went further to state that ‘The Methodology for Tariff further provided in Schedule 1 thereof that: “Where the Commission does not reach an agreement on cost with the applicant within the twenty-one (21) days, the Commission shall subject the process to a formal hearing as stipulated in the Commission’s Business Rules.

“The Petitioner stated that after submission of the required data by the Petitioner, the Respondent invited the Petitioner to a 3-day engagement meeting to agree on the various parameters for the tariff via its letter with Ref. No. EERC/CO/2025/0086 dated 30th June, 2025 for engagements on 2nd to 4th July, 2025.”

The spokesman said that the petitioner (mainpower) disclosed that it never came to an agreement with the Respondent on certain key parameters with huge sensitivity effect.

“The Petitioner further revealed that during the engagement meetings from 2nd to 4th July, 2025, and at the end of the engagement meeting on the 4th July, 2025, the understanding with Respondent was that the process as enunciated in the Methodology of Tariff would be followed.

“And that both parties would reach an agreement on the said parameters mentioned above or hold a formal hearing as provided in Schedule 1 of the Methodology of Tariff.

“The Petitioner was surprised that the Respondent without agreement on these important and tariff-sensitive parameters proceeded to conclude the tariffs and publish the Tariff Order on Friday, 18th July, 2025.

“The Petitioner states that despite the incident mentioned in paragraph 9 above, it further engaged the Respondent and parties agreed to have a meeting on 25th July, 2025 to address the concerns of the Petitioner especially as this will threaten the Vesting Contract arrangement between the Petitioner’s Holding Company, Enugu Electricity Distribution Plc (EEDC) and Nigerian Bulk Electricity Trading Plc. (NBET) from where Petitioner receives its supply of electricity.

 

“After the presentations by the Petitioner on that 25th July, 2025, the Respondent reverted via a letter with Ref. No. EERC/CO/2025/0105 dated 30th July, 2025 but received via email on Thursday, July 31, 2025 at 3p.m. maintaining the implementation of the Tariff Order on 1st August, 2025. We shall found on the copy of the email sent by the Commission and the Presentation to the Commission made on 25th July, 2025,” he said.

While urging that the tariff order be reserved, the petitioner (Mainpower) stated that if implemented, it would cause irreversible adverse business impact on it.

Ezeh outlined some of the impacts to Mainpower, which included: “Financial Impact (Aug – Dec 2025): The tariff creates an average monthly revenue shortfall of between N1.3 billion and N1.5 billion, resulting in a cumulative gap of about N6.98 billion over five months.

He said that compliance with NBET and Market Operator (MO) settlement obligations is expected to drop significantly, from current levels of about 97 per cent to an estimated 81 per cent by the end of 2025. The outcome is a business sustainability risk.

“Disconnection of Supply to MainPower: The electricity supplied to the Enugu State Electricity Market flows from the Vesting Contract entered into between EEDC and NBET which tariff as approved by NERC is N209/kwh for Band A whilst the Bands B to C is N67/kwh.

“If Mainpower is not able to meet up with its remittances obligation which in turn affects that of EEDC, this will inevitably lead to the Disconnection of the Supply to Mainpower.

“Investment Impact: MainPower’s planned capital expenditure programme, valued at N33.2 billion and covering network expansion, feeder automation, and the installation of 350,000 smart meters, is at risk under the new tariff.

“If metering rollout is halted, over 42% of customers will remain unmetered beyond Q1 2026, perpetuating inefficiencies and revenue leakages.

“Operational Impact: Reduced funding will limit the company’s ability to maintain and repair critical infrastructure, increasing the likelihood of outages and customer complaints. Additionally, dissatisfaction with service levels is expected to drive more customers toward self-generation, further eroding revenue.

“Strategic and Reputational Impact: The undervaluation of MainPower’s asset base weakens the company’s balance sheet and reduces investor confidence, directly impacting its ability to attract capital for future projects.

 

“There is also a heightened risk of industrial action if the company struggles to meet payroll and vendor obligations, potentially damaging its reputation and operational stability

Ezeh said that Mainpower prayed for an order of the Commission suspending the application of the Tariff Order pending the determination of its case, as well as an order of the Commission for a review to approve either Scenario 1 of N206.80/Kwh or Scenario 2 of N194.54/Kwh as contained in its petition.

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Court dismisses suit by Bayelsa traditional ruler challenging Shell’s divestment,pollution

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The Yenagoa Division of the Federal High Court on Friday dismissed a suit challenging the divestment of Shell from onshore assets.

The suit filed by King Bubaraiye Dakolo, traditional ruler of Ekpetiama in Yenagoa Local Government Area of Bayelsa also sought redress and remediation of cumulative pollution of Dakolo’s domain for 40 years.

Dakolo alleged that the divestment by Shell did not follow the stipulated guidelines in the Petroleum Industry Act (PIA) 2021.

However, presiding judge, Justice Ayo Emmanuel in a ruling dismissed the case for being filed out of time adding that under the statute, any objections to divestment on guy to be filed within three months.

Emmanuel also held that the traditional ruler lacked the ‘locus standi’ to institute the case as he had no role in the divestment.

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The judge further stated that the plaintiff failed to explore and exhaust the conflict resolution mechanism mechanisms by the Nigerian Upstream Petroleum Regulatory Commission,

The judge noted that the failure according to the Petroleum Industry Act (PIA)asked the suit invalid.

“Plaintiff’s failure to satisfy the mandatory statutory conditions precedent under the Petroleum Industry Act (PIA) strips this Court of jurisdiction.

“The Plaintiff further contended that the injuries complained of constitute a “continuing injury, thereby creating a continuous cause of action that escapes the limitation periods.

“However, looking closely at the pleadings, the Plaintiff joins historical grievances stretching back decades with specific events that allegedly took place around 2024. A continuous injury means a recurrence of the legally wrongful act itself, not the continuous persistence of the injurious effects of a singular past act.

“From the facts presented, the alleged causes of action against the public officers (the 4th, 5th, and 6th Defendants) arose well outside the mandated 3-month period prescribed by POPA.

“Furthermore, the claims touching on tortious liability are caught by the 5-year limitation threshold under Section 16 of the Limitation Law of Bayelsa State,” Emmanuel ruled.

Reacting, Counsel to the Minister of Petroleum Resources, Lawrence Edet who spoke for the defendants thanked the court for dispensing justice to their favour.

Counsel to Dakolo said that they will pursue the case beyond the trial court and will be heading to the court of appeal.

Environmental justice group, Social Action in its reaction to the judgement expressed regret that the court had to ignore the quest for environmental justice and technicalities.

Dr Prince Edegbuo
Resource Justice Manager at Social Action said: “It is very very unfortunate that a matter as important as this that is gaining international traction in home countries where these international companies come from and the activities being condemned but our legal system finds it convenient to discard a case that has caused so much hardship and suffering on the people.

“The pollution had devastated the environment and denied people of their livelihoods and even affected the reproductive health of the people, it is heartbreaking that the Federal High Court struck out this case.

“We will meet at the Appeal Court, we will not relent, we shall continue to support the Ekpetiama people in this litigation, this is just the court of first instance,” he said.

Ekpetiama community is in the neighbourhood and part of host communities to the Gbarain-Ubie gas plant and Gbarain oilfields.

Listed as defendants in the suit No. FHC/YNG/CS/81/2025, are Shell Petroleum Development Company of Nigeria, Shell Petroleum N.V, Shell UK PLC.

Others are Attorney General of the Federation, The Nigerian Upstream Petroleum Regulatory Commission, Minister of Petroleum Resources and Renaissance Energy Africa Ltd.

It will be recalled that Renaissance Energy Africa, a consortium of indigenous oil firms in March 2025 acquired the onshore and shallow waters oil and gas assets hitherto operated by SPDC, following the divestments by Shell UK PLC, the parent company to SPDC.

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Dangote launches ₦500,000 reward program to encourage whistleblowing

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Dangote Group CEO, Aliko Dangote
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•Says illegal goods on Dangote trucks to be confiscated

Dangote Industries Limited has intensified efforts to combat illegal haulage activities involving its trucks by unveiling a public whistleblowing initiative that offers a cash reward to individuals who provide credible information leading to the arrest of offenders or the interception of unauthorized goods and transportation of persons.

The company said the initiative, which will reward whistleblowers with N500,000.00 cash award, forms part of its broader commitment to protect the integrity of its logistics operations and eliminate the activities of unscrupulous individuals who illegally use Dangote-branded trucks to transport unauthorized goods.

In a statement issued in Lagos, the management urged members of the public to support the campaign by reporting any suspected cases of illegal haulage involving Dangote trucks, stressing that only specifically approved products are permitted to be transported by vehicles belonging to its various subsidiaries.

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According to the company, Dangote Cement trucks are authorized to carry only cement, limestone, high-grade gypsum, coal and clinker, while Dangote Sugar Refinery trucks are restricted to the transportation of sugar products. Trucks belonging to NASCON Allied Industries are expected to carry Dangote Salt and DanQ Seasoning products, while Dangote Packaging vehicles are designated for bags and packaging materials.

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Similarly, trucks operated by Dangote Petroleum Refinery and Petrochemicals are permitted to transport polypropylene products, while Dangote Fertiliser Limited vehicles are authorized for the haulage of urea fertilizer.

The company warned that any Dangote truck found transporting unauthorized goods would be treated as being involved in illegal haulage activities, adding that both the drivers and owners of such goods risk arrest, confiscation of the cargo and prosecution under applicable laws.

“Anyone with verifiable information that leads to the arrest of persons involved in illegal haulage activities or the recovery of unauthorized goods transported on Dangote trucks will receive a cash reward of Five Hundred Thousand Naira,” the company stated.

To aid investigations and enforcement efforts, the management of Dangote Group advised whistleblowers to provide detailed information when making reports. These include the truck type, registration plate number, cab number, location of the vehicle, description of the goods being transported, colour of the truck and photographs of the vehicle and cargo where possible.

The company has therefore established dedicated hotlines across its operations to receive reports relating to illegal haulage activities. Members of the public can report incidents involving trucks operating from the Obajana, Okpella and Gboko plants through certain dedicated telephone lines.

The Company stated that law enforcement agencies, including the Police, have been authorized to arrest any driver found using company trucks for unauthorized commercial haulage.

It reiterated its zero-tolerance stance against logistics-related fraud and called on the public to join hands with it in safeguarding legitimate business activities by exposing illegal operators.

Dangote Group emphasized that the initiative is designed not only to protect company assets and operations but also to strengthen transparency, accountability and compliance across its nationwide logistics network.

“Public cooperation remains critical in our efforts to eradicate illegal haulage activities. We encourage anyone with credible information to come forward and help us maintain the integrity of our transportation system,” the statement added.

The company reaffirmed that all reports would support ongoing efforts to protect the Dangote brand, promote lawful business practices and ensure that offenders are brought to justice.i

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Pipeline sale controversy deepens as expert warns of investor confidence risks

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Fresh controversy has erupted over efforts to revive the sale of a 40 per cent stake in the Amukpe–Escravos Pipeline, with a governance expert warning that any attempt to resurrect a previously terminated transaction could damage investor confidence and raise fresh questions about transparency in Nigeria’s oil and gas sector.

Speaking on Channels Television on Thursday, June 11, 2026, Managing Director of Policy Management Consult Services, Jide Olatuyi, said concerns surrounding the transaction extend beyond commercial interests and strike at the heart of governance, transparency, and the credibility of Nigeria’s investment environment.

“The contract was terminated,” Olatuyi said. “What stakeholders are saying is that there is a need for a new competitive bidding process rather than attempting to revive a failed transaction.”

The controversy has intensified amid scrutiny of the asset’s valuation. The earlier transaction involving the 40 per cent stake was priced at approximately $243 million before collapsing over unmet contractual obligations. Independent assessments conducted in 2025 reportedly valued the same stake at between $544 million and $641 million.

The significant disparity between the earlier transaction price and the more recent valuations has fuelled calls for a fresh competitive bidding exercise to ensure that the asset reflects prevailing market conditions and delivers maximum value.

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Rejecting suggestions that opposition to the proposed transaction is driven by sentiment or commercial rivalry, Olatuyi insisted that the debate centres on governance standards within the petroleum industry.

“I don’t think it is about sentiment at all,” he said. “It is about governance in the oil and gas sector.”

According to him, Nigeria’s challenge is no longer limited to attracting investors but also ensuring that investors have confidence in the integrity of the country’s commercial and regulatory processes.

“If you are not committed to transparency, it becomes a problem for investors,” he said. “If you cannot build trust and confidence in the sector, capital will go elsewhere.”

Olatuyi said several stakeholders, including project lenders such as Sterling Bank and AMCON, have advocated a transparent process that reflects current market realities and updated asset valuations.

The Amukpe–Escravos Pipeline, which has a transportation capacity of about 160,000 barrels per day and has maintained uptime above 95 per cent, remains one of Nigeria’s most strategic crude evacuation assets. The pipeline plays a critical role in transporting crude from inland production fields to export terminals in the Niger Delta.

Olatuyi urged authorities to ensure that any future transaction involving the asset is conducted through an open, transparent, and competitive process capable of inspiring investor confidence and safeguarding public value.

The debate comes at a time when the Federal Government is seeking to attract substantial investment into the energy sector and expand critical oil and gas infrastructure.

The eventual outcome of the Amukpe–Escravos Pipeline transaction could serve as a major test of Nigeria’s commitment to transparency, valuation discipline, and investor protection. As global competition for energy capital intensifies, governance standards may prove just as important as resource endowment in determining where investment flows.

Officials of the Nigerian Upstream Petroleum Regulatory Commission and members of the technical committee that supervised the original transaction did not respond to requests for comment as of press time.

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