Business

Mainpower petitions EERC, rejects tariff reduction

Published

1 year ago

August 21, 2025

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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”.

“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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Business

Dollar to Naira exchange rate today, September 23, 2026

Published

7 days ago

September 23, 2026

Advocate News Nigeria

Naira rebounds to 1,275/$ at parallel market

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The Nigerian naira is trading at different rates against the United States dollar across the official Nigerian Foreign Exchange Market (NFEM) and the parallel market on Wednesday, September 23, 2026.

The latest available data show that the naira strengthened to N1,327.78 per dollar at the NFEM on Tuesday, from N1,329.80 recorded on Monday.

The latest movement represents a N2.02 appreciation by the naira against the dollar on a day-to-day basis.

In the parallel market, the dollar was quoted at about N1,389 on Tuesday, down from N1,390 recorded the previous day.

The parallel-market rate puts the gap between the official NFEM rate and the street-market selling rate at about N61.22 per dollar.

At the parallel market rate of N1,389, customers buying $100 would need approximately N138,900, while $1,000 would cost about N1.389 million.

The exchange rate available to individuals and businesses may vary depending on the dealer, location, transaction size and prevailing market conditions.

The naira’s recent performance has come amid developments in Nigeria’s foreign exchange market, including changes in dollar liquidity and monetary policy.

The Central Bank of Nigeria has continued to monitor conditions in the foreign exchange market as the naira trades around the N1,300-per-dollar level at the official market. Reuters also reported in September that the naira had remained relatively stable, supported by central bank dollar sales and subdued import demand.

For Wednesday, September 23, the latest confirmed figures put the dollar at N1,327.78 at the NFEM and around N1,389 in the parallel market.

The rates could change during the day as demand and supply conditions shift across both markets.

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Business

Enugu Air Launches New Website

Published

1 week ago

September 22, 2026

Advocate News Nigeria

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…moves online services to www.enuguairlines.ng

Enugu Air has announced the launch of its new official website, enuguairlines.ng, as part of efforts to provide passengers and customers with a better, safer and more convenient digital experience.

The airline said the migration to the new website is designed to improve how passengers connect with Enugu Air and access its services online, including flight bookings, schedules and the latest updates.

Announcing the development, the airline said: “We’ve moved! We’re innovating! We’ve migrated to a better, safer and convenient website to connect you to the world.”

Passengers can now access Enugu Air’s online services through its new web address, enuguairlines.ng, which the airline described as its new digital home.

The airline urged passengers and prospective travellers to save the new web address and use it for flight bookings, checking schedules and obtaining the latest information about its operations.

“Same Enugu Air. New web address,” the airline stated, emphasising that the change represents an improvement in its digital platform while retaining the Enugu Air brand and services.

The airline further encouraged customers to visit, www.enuguairlines.ng for all flight-related information and online services.

It further stated that the old website, enuguairlines•com has been discarded and no longer in use.

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Business

Nigeria records 8.51m terabytes of data use in first half of 2026

Published

1 month ago

August 27, 2026

Advocate News Nigeria

Nigerian Communications Commission

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Nigerians consumed a record 8.51 million terabytes of data in the first half of 2026, underscoring the country’s accelerating shift toward a digital-first economy.

Data from the Nigerian Communications Commission (NCC) confirmed this. Specifically, in January, consumption was 1.385 million terabytes; February, 1.260 million terabytes and March, 1.422 million terabytes.

In April, consumption was 1.414 million terabytes. It climbed to 1.504 million terabytes in May and 1.532 million terabytes in June.

In 2025 alone, Nigerians consumed over 13.2 million terabytes of data, a 35 per cent increase from 2024, reflecting how connectivity has become essential for daily life.

The surge in consumption was driven largely by the twin giants of the telecom sector, MTN Nigeria and Airtel Nigeria, whose half-year reports revealed data services have firmly overtaken voice as the primary revenue stream.

According to industry figures, average monthly data usage per subscriber rose sharply, reflecting the growing reliance on mobile broadband for work, entertainment, and commerce.

Streaming platforms, social media, fintech apps, and remote work tools have all contributed to the spike in demand.

MTN Nigeria reported that its 55.7 million active data subscribers consumed an average of 14.8 gigabytes per month, representing a 15.2 per cent increase year-on-year. Overall, MTN’s data traffic surged by 25.8 per cent across its network in the period.

This translated into a massive N1.70 trillion in data revenue, a 38.4 per cent jump compared to the same period in 2025. Data now accounts for more than half of MTN’s total service revenue, dwarfing its voice earnings of N993.5 billion, which grew at a modest 12 per cent.

Airtel Nigeria also posted strong numbers, recording N691 billion in data revenue ($507 million). While Airtel’s voice services contributed to a combined N1.42 trillion in voice earnings alongside MTN, the clear trend is that data has become the dominant driver of growth.

Together, MTN and Airtel generated N2.4 trillion from data services in H1 2026, cementing their role as the backbone of Nigeria’s digital economy.

MTN invested N620.5 billion in capital expenditure during the period, focusing on expanding 4G coverage, scaling 5G rollout, and strengthening fibre infrastructure. The company’s aggressive push into next-generation networks is aimed at meeting the surging demand for high-speed connectivity.

Airtel, meanwhile, faced challenges with fibre cuts and vandalism, forcing reinvestments to stabilize its network. The operator is blending 5G expansion with satellite partnerships to extend coverage into rural and semi-urban areas, where demand for reliable Internet is rising.

Despite these investments, many consumers continue to express dissatisfaction with service quality. Complaints of slow speeds, unstable connections, and high costs remain widespread, highlighting the gap between consumption growth and infrastructure capacity.

The NCC has repeatedly urged operators to deepen investments in fibre, towers, and spectrum to sustain the country’s digital transformation. Analysts note that the sector is undergoing a structural shift from voice-first to data-led growth, with internet connectivity now central to economic activity.

Industry experts predict that Nigeria’s data consumption will continue to rise exponentially as smartphone penetration increases and more services migrate online. The rollout of 5G is expected to further accelerate usage, enabling innovations in fintech, e-commerce, healthtech, and entertainment.

The consumption of 8.51 million terabytes in H1 2026 marks a historic high for Nigeria’s telecom industry. It reflects not only the appetite of a digitally hungry population but also the broader transformation of the economy.

With MTN and Airtel leading the charge, the challenge now lies in improving service quality, expanding infrastructure, and ensuring affordable access for millions of Nigerians. As data becomes the lifeblood of communication and commerce, the telecom sector’s ability to keep pace with demand will determine how effectively Nigeria harnesses the opportunities of the digital age.