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FG- Imo: :Regulatory Oversight of The State Electricity Market Is Now Underr ISERC

By Favour Ifeoluwa & Akinola Ajibade  The Federal Government yesterday( Monday) announced the transfer of Regulatory Oversight of the Electricity Market in Imo State to the state electricity regulatory commission, otherwise known as (ISERC). In a statement issued by the Nigerian Electricity Regulatory Common( NERC), the development is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), reiterating that all transfers envisaged by this order shall be completed by 31 December 2024. According to the Commission,the transfer Order’s provisions include: “Direct Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Imo State from EEDC, and that EEDC shall complete the incorporation of EEDC SubCo within 60 days from 27th June 2024. The subcompany shall apply for and obtain licence for the in
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House To Probe N60b NNPCL JV Aggrements


By Favour Ifeoluwa & Akinola Ajibade 


The House of Representative says that it would investigate the loss of over $60 billion revenue due to inflated cash calls by the Nigerian National Petroleum Company Limited Joint Venture Agreements. 

Also, the House has  mandated relevant committees to conduct a thorough probe of all NNPCL Joint Venture operations in order to  determine income and cash call costs due to each partner and also know whether due process and diligence were followed on the issue.

The resolutions were passed sequel to the adoption of a motion sponsored by Hon. John Chika Okafor on the floor of the plenary on Wednesday.

Hon. Okafor,who moved the motion said NNPCL on behalf of the Federal Government operates Joint Ventures and related agreements with private oil companies in both oil and gas sectors, with the aim of providing sustainable revenue and further enhance the economic development of the nation.

He noted that that the NNPCL, as representatives of the Federal government and Federation have about 60 per cent holding while other partners account for the remaining 40 per cent. 

The joint ventures, he said, operate under a “Joint Operating Agreement” that spells out the responsibilities of each of the partners in the ventures.

He noted that: “Due to bloated cash call costs, the NNPCL Upstream Investment Management Services, a unit under the NNPCL in charge of negotiation of costs (both Capex and Opex) have caused huge losses in the neighbourhood of $60bn over the years.

“The activities of NUIMS have resulted in huge revenue losses, fiscal deficits and an alarming debt profile, aware of the need to ensure probity, transparency and value for money in the NNPCL Joint Venture operations.”

Meanwhile, the House has called for the remittance of accrued 5 per cent users’ charge on petrol pump price and diesel to Federal Roads Maintenance Agency FERMA to enable it discharge its functions.

This followed the adoption of a motion by Aderemi Oseni, urging Ministry of Petroleum Resources, NNPCL, Nigerian Midstream and Downstream Petroleum Regulatory Authority and Ministry of Finance and Office of the Account General of the Federation to ensure that the user’s charge are immediately remitted to FERMA under Section 4(1) of the agency’s (Amendment) Act, 2007.

Leading debate on the motion, Oseni said to underscore the importance of funding to road management and maintenance, Section 4(1) of the Federal Roads Maintenance Agency (Amendment) Act, 2007 provides that “The fund of the agency shall consist of 5 per cent users’ charge on pump price of petrol, diesel and of which 40 per cent will accrue to FERMA.”

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