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💡 Nigeria’s Power Sector Crisis: How Electricity Subsidies Ballooned To N1.94 Trillion—And Why It Matters

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💡 Nigeria’s Power Sector Crisis: How Electricity Subsidies Ballooned To N1.94 Trillion—And Why It Matters

In a nation where power cuts are a daily reality and diesel generators hum louder than government promises, the revelation that Nigeria’s electricity subsidies have surged by over 220% to a staggering ₦1.94 trillion in just one year is both alarming and telling.

It’s not just about money—it’s a glimpse into the deep-rooted dysfunction of Nigeria’s power sector and a warning that things may get worse before they get better.


⚠️ The Shocking Numbers Behind the Subsidy Surge

In its 2024 annual report, the Nigerian Electricity Regulatory Commission (NERC) revealed a sobering truth: the Federal Government paid just ₦371.34 million—or 0.019%—of the nearly ₦2 trillion subsidy obligation for the year.

To put it simply, Nigeria promised the power sector nearly ₦2 trillion and only paid about what some luxury hotels make annually.

This massive funding gap is the result of a mismatch between what electricity should cost and what Nigerians are actually charged. The government, trying to shield consumers from economic shocks, has kept electricity tariffs artificially low—especially for Bands B through E. Meanwhile, the true cost of generating power has skyrocketed, fueled by inflation, a weakened naira, and dollar-linked gas prices.


💸 Why the Subsidy Bill Exploded in 2024

The government’s power subsidy obligations stood at ₦610 billion in 2023. But by 2024, they had jumped to ₦1.94 trillion. That’s a 219.67% increase in just one year.

So, what happened?

Several macroeconomic shifts explain the surge:

  1. Floating the Naira: President Bola Tinubu’s decision to float the naira in mid-2024 led to rapid currency depreciation, dramatically increasing the local cost of importing gas, transformers, and other power-sector essentials.

  2. Fuel Subsidy Removal: The withdrawal of fuel subsidies further stoked inflation, raising the overall cost of doing business in the power sector.

  3. Tariff Freeze: Despite rising generation costs, the Federal Government froze electricity tariffs at December 2022 levels, forcing the state to absorb the widening price gap.

As NERC explained, this translated to a monthly subsidy burden of ₦161.85 billion, with costs rising quarter after quarter.


📉 A Quick Win That Fizzled

In April 2024, the government attempted a course correction by adjusting tariffs for Band A customers, who consume around 40% of total power. This short-lived reform led to a 40% drop in subsidies during Q2—but it didn’t last.

By mid-year, the government froze tariffs again, and subsidy costs quickly rebounded. In Q3 and Q4, the bills climbed back to ₦464 billion and ₦471 billion, respectively.

This flip-flop on policy has made it hard for investors and operators to plan for the future, leaving a volatile and unsustainable system in place.


🏭 Who’s Paying (and Who’s Not)?

Here’s how the 2024 subsidy burden was distributed across Nigeria’s electricity distribution companies (DisCos):

  • Abuja DisCo: ₦285bn

  • Ikeja: ₦272bn

  • Ibadan: ₦236bn

  • Eko: ₦231bn

  • Yola: ₦67bn — yet receives the highest per-unit subsidy due to security challenges and high operational costs.

In short, the government is paying more to support electricity in areas with higher costs, but often without results.

And despite the ballooning obligations, generation companies (GenCos) are still owed up to ₦5 trillion, creating a massive debt bubble across the power value chain.


🔍 Expert Insight: Subsidy Trap or Systemic Rot?

According to power sector expert Bode Fadipe, the situation is dire:

“If the sector continues in its current form, we may not see real progress in the next 20 to 30 years.”

His point? The sector isn’t just underfunded—it’s structurally flawed. Generation, transmission, and distribution rely heavily on imported materials and dollar-priced gas. Without reliable forex access or cost-reflective pricing, the system teeters between collapse and patchwork fixes.

Fadipe warns that full subsidy removal could backfire, triggering rampant electricity theft and social unrest unless pricing is made transparent and gradual reforms are introduced.


💡 A Call to Action from Dangote

Amid the gloom, billionaire industrialist Aliko Dangote sees opportunity. He revealed that his group independently generates over 1,500MW of electricity for internal use—more than a quarter of Nigeria’s national output.

His call? Local investors must stop capital flight and invest in domestic power infrastructure.

“There’s no reason why Nigeria should still be generating just 5,000MW nationally. We should be at 50,000 to 60,000MW,” Dangote said.

His challenge to wealthy Nigerians: follow the example of the Dangote Refinery—invest at home and help build the power sector the country desperately needs.


⚖️ Conclusion: The Illusion of Cheap Power

Nigeria’s electricity subsidy balloon is a classic case of kicking the can down the road. In a bid to keep electricity “affordable,” the government is hemorrhaging funds it doesn’t have, while the sector sinks further into debt.

The numbers are clear. Without a sustainable pricing and investment model, Nigeria’s power woes will remain entrenched—and future generations will bear the cost.

Subsidy reform isn’t just about removing support—it’s about rebuilding trust, fixing infrastructure, ensuring transparency, and engaging citizens in the transition.

Until then, Nigerians will continue to pay the hidden price of darkness—even if the bills say “subsidised.”


💬 What do you think?
Should Nigeria fully remove power subsidies? Or is there a smarter way to keep electricity affordable without bankrupting the nation? Leave a comment below.

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Cooking Gas Prices Drop In Nigeria – See New Average Cost In July 2025

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Cooking Gas Prices Drop In Nigeria – See New Average Cost In July 2025

Cooking Gas Prices Drop

For many Nigerian households, the price of cooking gas has become a constant source of worry over the past year. Families who rely on Liquefied Petroleum Gas (LPG) have been caught between rising costs and stagnant incomes, forcing some to cut back usage or switch to less efficient alternatives like kerosene, charcoal, or even firewood. But there’s finally a small relief on the horizon: the price of cooking gas is beginning to ease, at least for now…..CONTINUE READING

The Latest Figures

According to the National Bureau of Statistics (NBS), the average retail price of refilling a 12.5kg cylinder of LPG fell from ₦21,010.56 in June 2025 to ₦20,609.48 in July 2025. That’s a 1.91% decrease month-on-month, which, while not dramatic, is still a welcome change for struggling households.

However, the year-on-year comparison tells a different story. In July 2024, the same quantity cost ₦14,261.57. That means Nigerians are still paying 44.5% more today than they did just a year ago. In other words, while the month-to-month dip is good news, the bigger picture remains one of steep inflation.

Regional Variations

Interestingly, not all states are experiencing the same reality. States like Imo, Delta, and Rivers recorded some of the highest LPG prices, while Kebbi, Nasarawa, and Kwara enjoyed the lowest. This disparity often reflects transportation costs, supply chains, and even local market competition. For example, states closer to major gas depots or coastal areas may benefit from slightly cheaper prices compared to those further inland.

The Bigger Picture – Why Prices Are Still High

To understand why LPG prices remain elevated, it’s important to look beyond the numbers:

  1. Global Energy Market Volatility – International gas prices have been fluctuating due to shifts in demand, supply chain disruptions, and geopolitical issues. Nigeria, despite being a gas-rich country, still ties its domestic prices partly to global trends.

  2. Dollar Exchange Rate – Since LPG imports rely on foreign exchange, the naira-to-dollar rate heavily impacts the cost. The weakened naira continues to put upward pressure on prices.

  3. Infrastructure & Supply Gaps – Nigeria has abundant gas reserves, but limited infrastructure for processing, storage, and distribution. Until the country expands its domestic capacity, prices will remain vulnerable to external shocks.

What It Means for Nigerian Households

For families already stretched thin by rising food and fuel costs, the slight reduction in July is a breath of fresh air. As of September 1, 2025, some Abuja residents were able to refill a 12.5kg cylinder for around ₦15,000, showing that market realities on the ground sometimes move faster than official averages.

Still, the larger problem remains: energy poverty. When gas prices are high, more people turn to cheaper, dirtier fuels, which affects not only household health (due to smoke inhalation) but also the environment through deforestation and carbon emissions.

Looking Ahead

The government has consistently spoken about making gas the “fuel of the future” in Nigeria, with initiatives to deepen LPG penetration and reduce reliance on kerosene and firewood. However, for this vision to become reality, pricing must be stable and affordable. Investments in local processing, distribution, and subsidies for households could go a long way in making LPG accessible to all.

Final Thoughts

The slight dip in cooking gas prices is good news, but it’s not enough to erase the burden of energy inflation on Nigerian families. Policymakers need to act fast to stabilize the market, support local production, and shield households from volatile global energy trends. For now, Nigerians can breathe a little easier when refilling their gas cylinders — but the bigger struggle for energy affordability continues.

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Edo Govt Under Fire Over Allegations Of Forcing Teachers Into Menial Labour

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Edo Govt Under Fire Over Allegations Of Forcing Teachers Into Menial Labour

The Edo State Government is facing backlash after reports emerged that public school teachers were allegedly compelled to cut grass and perform menial jobs on the orders of the Ministry of Education.

The claim, raised by the Edo State Civil Society Coalition on Human Rights, has sparked outrage and debate across the state. According to the group, teachers were being treated as “gardeners and janitors,” a move they described as degrading, unconstitutional, and a slap in the face of Nigeria’s educators…..CONTINUE READING

Civil Society Raises Alarm

In a strongly worded statement signed by Marxist Kola Edokpayi and Comrade Aghatise Raphael, the group condemned the practice and threatened protests and legal action if the government does not put an immediate stop to it.

“Teachers are the backbone of society and nation-builders entrusted with shaping the minds of our children. Reducing them to gardeners and cleaners is a shameful act of abuse and a slap in the face of every hardworking educator in Edo State,” the statement read.

The group reminded the government that Section 34 (1)(c) of the Nigerian Constitution forbids forced labour, warning that the alleged directive amounted to a breach of teachers’ fundamental rights.

The Bigger Picture: Respecting the Teaching Profession

Beyond the legal implications, the controversy highlights a broader societal issue — the undervaluing of teachers in Nigeria. For decades, teachers have battled low pay, poor working conditions, and lack of respect. Forcing them into menial jobs, civil rights groups argue, is yet another reminder of how the system undermines the very people tasked with building the nation’s future.

Rather than compelling teachers to double as gardeners, the group called on the government to employ support staff, cleaners, and maintenance workers who would be properly remunerated for such roles.

Government Responds: “It Was Voluntary CSR”

In response, the State Commissioner for Education, Dr. Paddy Iyamu, denied that teachers were being forced into menial work. He claimed available information suggested the activities were voluntary Corporate Social Responsibility (CSR) initiatives by some teachers — not an official directive.

He assured the public that a full-scale investigation had been ordered and reaffirmed the government’s commitment to protecting teachers’ rights.

“Teachers’ priority is the transfer of learning. We want to discourage in very strong terms teachers forcibly engaging in tasks that do not directly strengthen knowledge and learning outcomes,” Iyamu said.

The commissioner further noted that Governor Monday Okpebholo’s administration has made strides in improving teacher welfare, citing minimum wage increments, the regularization of casual teachers, construction of teachers’ quarters, and ongoing training programs.

Analysis: CSR or Coercion?

While the government insists the practice was voluntary, the backlash reveals a trust deficit between civil society and state authorities. If indeed voluntary, why would teachers feel compelled to participate? And if coerced, what does that say about the treatment of educators in Edo?

This is not just about cutting grass — it is about respecting professional boundaries. Teachers are employed to teach, not to serve as janitors. Blurring those lines risks eroding morale in an already struggling education system.

Conclusion: Time for Transparency and Reform

The uproar over this incident underscores the urgent need for clear policies on school maintenance, transparent use of education funds, and renewed respect for teachers.

Teachers deserve dignity, not degradation. Whether this was a case of miscommunication or systemic neglect, one truth stands out: a nation that disrespects its teachers risks sabotaging its own future.

The Edo government now has a chance to not just investigate but to restore trust — by ensuring that schools are maintained by trained staff while teachers focus solely on their sacred duty: educating the next generation.

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Jonathan Fires Back At Keyamo, Odinkalu Over 2027 Eligibility Debate: “Your Unsolicited Advice Not Needed”

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Jonathan Fires Back At Keyamo, Odinkalu Over 2027 Eligibility Debate: “Your Unsolicited Advice Not Needed”

Jonathan Fires Back At Keyamo

The road to Nigeria’s 2027 presidential election is already heating up — and one of the names stirring the pot is that of former President Goodluck Jonathan (GEJ). Though he hasn’t formally declared his interest, speculation about a possible comeback has sparked fierce debate among political heavyweights, constitutional lawyers, and party insiders……CONTINUE READING

This week, the controversy reached a boiling point after Jonathan, through his cousin and confidant, Azibaola Robert, responded sharply to critics who questioned his eligibility to contest.

The Trigger: Keyamo and Odinkalu’s Warning

Minister of Aviation, Festus Keyamo (SAN), and renowned human rights lawyer, Prof. Chidi Odinkalu, recently advised the Peoples Democratic Party (PDP) against fielding Jonathan in 2027. Their argument was straightforward: Jonathan has already been sworn in twice — once as Acting President (after Yar’Adua’s death in 2010) and again when he won the 2011 election — and a third attempt could face constitutional roadblocks.

According to them, such a move would not survive legal scrutiny and could plunge PDP into unnecessary controversy.

Jonathan’s Camp Claps Back

But Robert, speaking on Jonathan’s behalf, wasn’t having it. In a strongly worded statement, he dismissed their concerns as “unsolicited advice” and insisted GEJ’s eligibility had already been settled in court.

“Please note: GEJ is 100% constitutionally and legally qualified to contest, if he chooses to. If he decides not to yield to the overwhelming calls to run, it will not be because he is unqualified,” Robert declared.

He went further, reminding both men that Jonathan has access to “more cerebral and experienced SANs” who provide sound legal guidance — making outside commentary unnecessary.

Why This Matters: The Eligibility Question

The debate over Jonathan’s eligibility isn’t new. In 2022, ahead of the last elections, similar arguments surfaced but were largely dismissed after courts ruled in his favor, affirming that his brief stint as Acting President did not count against him.

However, in politics, perception often matters as much as legality. The fact that senior figures like Keyamo and Odinkalu are still raising the issue suggests the PDP may face fresh internal and external battles if Jonathan throws his hat in the ring.

The Bigger Picture: PDP’s Zoning Dilemma

Jonathan’s rumored comeback also touches on a deeper political fault line — zoning. The PDP recently zoned its 2027 presidential ticket to the South. On the surface, this seems like good news for Jonathan. But within the South itself, there are tensions:

  • The South-East feels it is their turn after decades of marginalization.

  • The South-South (Jonathan’s region) already produced a president in him.

  • The South-West currently holds the presidency through Bola Tinubu (APC).

A Jonathan candidacy could either energize PDP with his experience and name recognition — or fracture the South’s collective bargaining power.

Jonathan’s Silence: A Calculated Strategy?

Interestingly, Jonathan himself has remained silent on the matter. Robert stressed that his comments should “not be seen as confirmation that GEJ is running.” This silence may be strategic. By not declaring yet, Jonathan keeps speculation alive, maintains his relevance in political discourse, and allows his camp to gauge public opinion.

Conclusion: A Battle Beyond 2027

Whether or not Jonathan runs, this episode reveals a larger truth: Nigeria’s 2027 elections will not just be about candidates, but about constitutional interpretation, party unity, and regional politics. The PDP in particular faces a delicate balancing act as it tries to rebuild after its 2023 defeat.

For now, one thing is clear: Goodluck Jonathan remains a political force whose name alone can stir heated debate — even without a formal declaration. And that, perhaps, is the clearest sign that the countdown to 2027 has truly begun.

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