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FG, Labour agree cut in electricity tariff for 3 months, to distribute 6 million free meters

Labour and FG have reached an agreement to cut electricity tariff for 3 months and supply millions of free meters.



FG, Labour agree cut in electricity tariff for 3 months, to distribute 6 million free meters, SPW jobs, FG kickstarts its 774,000 jobs SPW initiative as Buhari backs Keyamo, FG urges DStv, MTN, others to offer free subscription, airtime, data to Nigerians

The Federal Government and the organized labour have agreed to provide a tariff relief of N10.20 per kilowatt-hour for Nigerians for the next 3 months and also distribute 6 million free meters following the completion of the 2 weeks suspension of electricity tariff.

According to a tweet post from the Minister of State for Labour and Employment, Festus Keyamo, this was disclosed in a communique made available to journalists after a lengthy meeting between the organized Labour and the Federal Government on Sunday evening.

READ: NERC fines power firm N10.2 million over illegal supply of electricity

The communique disclosed that the committee adopted a two-phase approach to proffer solutions which would help resolve issues affecting the electricity sector in the medium term, whilst providing relief to customers immediately.

They stated that the immediate relief would be provided to citizens for a 2 to 3-month period (which will not exceed December 31, 2020), saying it will be the timeline for the conclusion of an extended scope of work for the Technical Committee.


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According to the communique: “Following extensive analyses, it was realised that VAT proceeds from the Nigeria Electricity Supply Industry (NESI) could be used to secure varying levels of relief in customer tariffs across bands A, B and C, ensuring that all customers receive some form of relief during this difficult time. Cumulatively the per kWh relief that will be provided to customers in bands A, B and C is N10.20 per kilowatt-hour (kWh), which will be distributed across the bands. The relief will be in place for the 2 to the 3-month period required for the Technical Committee to conclude its extended scope of work. It should be noted that Bands D and E tariffs were not changed, and this freeze will remain in place.

READ: NERC says Discos will compensate electricity consumers for power delivery failure

It was also disclosed that the National Mass Metering Programme (NMMP) will be accelerated. They stated: “This programme will distribute 6 million meters to Nigerians free, of charge. The Central Bank of Nigeria (CBN) having approved the funding for this programme, the meters will begin being distributed to consumers immediately using stockpiles in-country and local assemblers. The cost of meters shall be recovered from the DISCOs.

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The 6 million meters to be procured for the NMMP will only be through local meter manufacturers and assemblers. This will create jobs and a new meter manufacturing sub-sector in the country.”

READ: Power: Liquidity crisis, same old story in 2020?

It was also resolved that there will be proper salary protection for electricity workers. They disclosed that In implementing payment discipline measures for the DISCOs, the Government will ensure the protection of the salary for Electricity Workers saying it will be protected in the revised payment waterfall structure for the NESI. Thus; “In order to protect customers from changes in tariff during the 2-3 month period of review by the Joint Technical Committee, DISCOs will be directed to temporarily suspend customer band migration. This means that while DISCOs are expected to fulfil their Performance Improvement Plans (PIP) thereby improving the quality of service to customers, no added charges will be passed on to customers during this period. This measure is aimed at building confidence in the Service-Based Tariff structure.’

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On the inclusion of Labour representatives in NERC, it stated, “The committee had no objection to the inclusion of Labour into the Nigerian Electricity Regulatory Commission. Government is committed to fully engage Labour in the ongoing review of the Electricity Power Sector Reform Act (EPSRA) 2002. As a result, the Executive will recommend to the National Assembly inclusion of Labour representation into the Nigerian Electricity Regulatory Commission.”

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READ: NERC revokes estimated billing methodology for electricity consumers

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To further assure Nigerians of the new agreement, the Honourable Minister of Power, Sale Mamman took to his official Twitter handle to state that Nigerians will only pay for the energy they consume and also a plan to distribute 6million meters to homes and businesses were underway.

“To ensure that Nigerians only pay for the energy they consume, a Metering scheme that will see 6 million free meters distributed to Nigerian homes and businesses is set to commence this quarter,” Mamman tweeted.

READ: FG announce extension of suspension of new electricity tariff by 1 week

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]



  1. David blunt

    October 12, 2020 at 12:34 pm

    No mention of prepaid meters. Sounds like a trojan horse offer to me

  2. Anonymous

    October 12, 2020 at 3:12 pm

    We pray it get to us…

  3. tope

    October 12, 2020 at 5:06 pm

    You will never get any of those free Prepaid meter. It will be resold to Nigerians. Why can’t they just liberalize the purchase of prepaid meters. That is what works in Nigeria. See the success of telecom. No monopolies. Why the sale of distribution when you are still going to encourage monopoly? Government should stop creating corrupt channels for extort Nigerians. #SellPrepaidMetersDirect2Customers. There is no need for this waste of monies.

  4. Fa

    October 12, 2020 at 9:00 pm

    We this meter get to the common men or only for those in power?

  5. Anonymous

    October 12, 2020 at 9:16 pm

    What disco’s are doing right now is fraud of the highest order, how can you billed a bungalow of just 7rooms #34,000 for electricity bill for the month of September, upon sharing of power supply. Please, you people should look into this, it’s outrageous and pathetic for charging that high for just a bungalow of just seven (7) rooms. Sylvanus.

    • Deji

      October 13, 2020 at 2:09 pm

      Please write them and complain of excessively charging you, let them acknowledge the receipt of the letter and take the acknowledged letter to your lawyer and sue them to court

    • Auxtine

      October 14, 2020 at 2:03 am

      They are mad,my compound in iyanaoworo we have been complaining that our bill is outrageous 30k a month for 5 people,only to see 66800 naira for September bill.

    • Edhereveno

      October 15, 2020 at 9:03 am

      Its very simple bro, there’s a price tag for all discos depending on their area of coverage, you shouldn’t mind that crazy bill given to, find out from ur area the approve price payable, and pay to them, they can’t disconnect u.

  6. Kenny Oy

    October 12, 2020 at 9:25 pm



  7. Niyi

    October 12, 2020 at 9:45 pm

    The people that are employed to distribute the meters should be monitored if not they will be asking for money to give the meters out.

    • Anonymous

      October 13, 2020 at 3:58 am

      Story of the day

  8. Chukwu Emmanuel

    October 13, 2020 at 5:04 am

    Pls end disco it is yahoo Yahoo boys is since 2016 buhari have kill Nigeria

  9. Emo Diadenaru

    October 13, 2020 at 6:56 am

    We pray that these free meters to be distributed to Nigerians are free indeed and not hoarded by the handlers. For efficiency and accountability of this program, a task force be instituted by government to ensuring that on – the – spot allocation be made to avoid diversion.

  10. Maryam

    October 13, 2020 at 9:09 am

    September bill is high even without constant electricity. We can’t boost of 8hrs of electricity in our area. How do we expect people to pay such bills at a time like this in our lives when even to feed is a problem. May Allah help us

    • Yuhana

      October 14, 2020 at 7:08 am

      You are talking 8 hours.i can’t boast of 4 hours. Now its worse, they have learnt the practice of 1 minute light. Nigeria needs change. Scam everywhere

  11. Deji

    October 13, 2020 at 2:06 pm

    The new tariff was announced suspended, however my bill is almost doubled from last month the the current bill. The discos are running their own show and not doing what is in the news

  12. Ikechukwu

    October 15, 2020 at 12:20 pm

    “This programme will distribute 6 million meters to Nigerians free of charge. The Central Bank of Nigeria (CBN) having approved the funding for this programme, the meters will begin being distributed to consumers immediately using stockpiles in-country and local assemblers. The cost of meters shall be recovered from the DISCOs”.

    This is fishy and ambiguous, how is it free if the cost shall be recovered from DISCOs? Will the DISCOs not transfer this cost to their customers eventually?

    Even if it is so, will this programme continue or is this just a benefit for only 6 million Nigerians? Why just 6m?

    By the way, the hike in tariff was implemented in September despite the suspension. In August my household was billed N11,904.98 for 508KWH of power, the September bill is N25,364.69 for 438KWH. That is more than 100% increase from previous month. This is ridiculously ridiculous and unfair to most Nigerian consumers.

  13. Ugoji

    October 15, 2020 at 7:58 pm

    Every day another story. Things just continue to get worst. Nobody is holding the DISCOS accountable. The so called NERC excels in juicy tilk without action. I’ve taken a case to them for adjudication. I discovered they are just in bed with the DISCOS. They do as they like without reference to the law and without consequence. Have you noticed that anytime there’s a big football match,they must take the light. That’s their arrangement with viewing center and beer palour owners, I found out. When shall we have a government and not these uncaring buccaneers?

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Africa’s electricity generation will double by 2030, fossil fuel to be dominant – Research

Fossil fuel is expected to dominate Africa’s energy mix by the end of the decade.



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A new research from the University of Oxford has predicted that the total electricity generation across the African Continent will double by 2030.

The study also expects that fossil fuel will still be dominant in Africa’s energy mix by the end of the decade, accounting for two-thirds of all generated electricity across Africa, posing a potential risk to global climate change commitments.

READ: AfDB approves a grant of $7m for renewable mini-grid industry in Africa

An estimated 18% of the generation is set to come from hydro-energy projects, which have their own challenges, such as being vulnerable to an increasing number of droughts caused by climate change.

The study, which looked into Africa’s energy generation landscape, uses a state-of-the-art machine-learning technique to analyse the pipeline of more than 2,500 planned power plants and their chances of successful commission.


READ: World Bank set to invest over $5 billion in drylands across 11 African countries

The study shows the share of non-hydro renewables in African electricity generation is likely to remain below 10% in 2030, although it varies by region.

READ: AfDB supports Africa’s flagship climate initiative with $6.5bn 

What there are saying

Galina Alova, Study Lead Author and Researcher at the Oxford Smith School of Enterprise and the Environment said that:

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  • “Africa’s electricity demand is set to increase significantly as the continent strives to industrialise and improve the wellbeing of its people, which offers an opportunity to power this economic development through renewables.”
  • “There is a prominent narrative in the energy planning community that the continent will be able to take advantage of its vast renewable energy resources and rapidly decreasing clean technology prices to leapfrog to renewables by 2030 – but our analysis shows that overall it is not currently positioned to do so.”

READ: Foreign investors jostling to exploit Nigeria’s $82 billion healthcare gap

Philipp Trotter, Study Author and Researcher at the Smith School said:

  • “The development community and African decision-makers need to act quickly if the continent wants to avoid being locked into a carbon-intense energy future. Immediate re-directions of development finance from fossil fuels to renewables are an important lever to increase experience with solar and wind energy projects across the continent in the short term, creating critical learning curve effects.”

READ: DisCos ask FG to reduce cost of gas in power generation

What you should know

  • The study suggests that a decisive move towards renewable energy in Africa would require a significant shock to the current system. This includes large-scale cancellation of fossil fuel plants currently being planned.
  • In addition, the study identifies ways in which planned renewable energy projects can be designed to improve their success chances – for example, smaller size, fitting ownership structure, and availability of development finance.
  • Fossil fuels include coal, petroleum, natural gas, oil shales, bitumen, tar sands, and heavy oils. All contain carbon and were formed as a result of geologic processes acting on the remains of organic matter produced by photosynthesis, a process that began in the Archean Eon (4.0 billion to 2.5 billion years ago).
  • These non-renewable fuels supply about 80 percent of the world’s energy. They provide electricity, heat, and transportation, while also feeding the processes that make a huge range of products, from steel to plastics.

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FG insists on no petrol, electricity subsidies in 2021

The FG has insisted that its policy on the removal of subsidies on fuel and electricity in the 2021 budget remains.



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The Federal Government has insisted that it will go ahead with its policy on the removal of subsidy on Premium Motor Spirit (Petrol) and electricity, with no provision made in the 2021 budget for their subsidy.

This disclosure was made by the Minister of Finance, Budget and National Planning, Zainab Ahmed, during a virtual public presentation of the Breakdown and Highlights of 2021 Appropriation Act on Tuesday in Abuja.

READ: FG posts 27% revenue shortfall in 2020 as budget deficit hit N6.1 trillion

What the Minister for Finance is saying

While answering a question on whether there would be a return to petrol subsidy following the reduction in petrol price about a month ago, the Minister said the answer is a flat no.

Ahmed said,

  • We are not bringing back fuel subsidy. We didn’t make provision for fuel subsidy in the budget. The impact of what was done was reducing some of the cost components that were within the template. And also related to it, on matters of electricity subsidies, no provisions have been made for subsidy for fuel and no provisions have been made for subsidy for electricity.

READ: Reps raise alarm over N200 billion unclaimed dividends in 2020

Also, while talking about the new Finance Act 2020, which took effect from 1 January 2021, Ahmed said the act adopts counter-cyclical fiscal policies in response to the Covid-19 pandemic by providing fiscal relief to taxpayers.

The Minister stated that the government would hold the unclaimed dividends of investors in the stock market in trust and would make the fund available when needed by an investor.

READ: N200 billion Unclaimed Dividend: Securities dealers reject FG’s plan to manage fund

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She said:

  • On the issue of unclaimed dividends and government’s accounts and projections, there would be as much as N850bn to be realized in the special trust fund of unclaimed dividends. Government is keeping the money in trust for the beneficiaries. At any time, a registrar or a bank confirms that this is the true and bonafide beneficiary of this fund, then the government will release from that trust fund to the investor who has it.”

READ: Nigerian Aviation: Exchange rate, 7.5% VAT suspension and other factors to determine survival – Experts

What you should know

  • It can be recalled that the Federal Government, in early 2020, announced the full deregulation of the downstream sector of the oil industry which culminated in the removal of petrol subsidy.
  • The government said that following a sharp drop in revenue, it was becoming increasingly unsustainable for it to continue to subsidize the product with funds that can be used for the development of critical infrastructures in the country.
  • Similarly, it also pointed out that the removal of subsidy on electricity tariff and ensuring the implementation of the right pricing for power will help attract the needed investment in that sector.

READ: FG borrows N2.8 trillion from CBN via Ways and Means

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Daystar Power secures $38m funding to grow its West African’ operations

Daystar Power, provider of hybrid solar power solutions to businesses in West Africa, today announced a Series B investment of $38 million.



Daystar Power has announced a Series B investment of $38million.

The company expects to grow its operations in its key markets of Nigeria and Ghana, while deepening its presence in other regional countries such as Côte d’Ivoire, Senegal and Togo with the funds raised.

The company expects to expand its installed capacity to over 100 megawatts – enabling it to meet demand from its clients in the financial services, manufacturing, agricultural and natural resources sectors.

What you should know about the funding

  • Taking into account the previous round by Verod Capital and Persistent Energy, Daystar Power has received equity investments totalling $48 million.
  • The funding is led by the Investment Fund for Developing Countries (IFU), the Danish development finance institution (DFI).
  • IFU is joined by new investors STOA, a French impact infrastructure fund, Proparco, the French DFI, backed by a guarantee from the European Union under the African Renewable Energy Scale-Up facility (ARE Scale-Up); and Morgan Stanley Investment Management.

What they are saying

The CEO and Co-founder of Daystar Power, Jasper Graf von Hardenberg, stated that:

  • “By offering our commercial and industrial clients cheaper, reliable and cleaner power, we have seen a more than 50-fold increase in power-as-a-service revenue over the last two years. African businesses are realizing that solar power stand-alone or in tandem with a second power source is a superior energy alternative to the often-unreliable grid or too expensive, polluting diesel generators.”

Thomas Hougaard, Vice President sub-Saharan Africa, IFU said:

  • “We believe that Daystar Power has the right elements – the client base, technology, engineering expertise, and executive leadership to scale off-grid solar across West Africa. Not only is Daystar Power at the forefront of a growing market, it is helping to accelerate the adoption of renewable energy in some of Africa’s fastest growing cities.”

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