Business
Consumers Condemn Power Sector Privatisation As FG Hikes Electricity Tariff
The Federal Government through its Nigerian Electricity Regulatory Commission on Thursday officially released different documents indicating the approved power tariff increase payable by consumers to various electricity distribution companies in Nigeria.
In different orders to the 11 Discos operating in Nigeria, the commission stated that the tariff hike was based on the extraordinary review of the Multi-Year Tariff Order, as it explained that the order took effect from January 1, 2022.
It further noted that the order shall only be subordinated to a new tariff review order as might be issued periodically by the NERC, but this hike in tariff by NERC was kicked against by different power consumer groups, as they called for the complete reversal of the sector’s privatisation.
The NERC provided myriads of reasons why it had to effect an upward review of the tariff payable to Discos, as figures from the individual approvals for each Disco showed that the commission hiked the amount to be paid by consumers for electricity beginning from February 2022.
In the Abuja Electricity Distribution Company, for instance, non-Maximum Demand power users in Band A had their tariff increased from N51.75/kWh in January this year to N56.28/kWh from February to December 2022.
Also, non-MD consumers in Band B had their tariff increased from N49.72/kWh to N54.13kWh, while the non-MD power users in Bands C and D had their tariff raised from N45.65/kWh to N50.65/kWh, and N29.70/kWh to N33.20/kWh respectively, under Abuja Disco.
For non-MD customers of AEDC in Band E, their tariff was raised from N29.38/kWh to N32.88/kWh.
In the service bands, the NERC explained that customers in Band A were those receiving a minimum of 20 hours of electricity daily, while those in Bands B, C, D and E include power users receiving 16 hours, 12 hours, eight hours, and four hours of power supply daily, respectively.
The documents for each Disco also showed that aside from non-MD customers, there were other categories of maximum demand power users classified as MD1 and MD2, but most of the tariffs of these categories of power users were also raised.
It was observed that aside from the AEDC, the tariff hike played out in other Discos, as the regulator raised the tariffs payable by consumers in the various franchise areas of the power distribution companies.
For Eko Electricity Distribution Company, it was observed that there was a marginal decrease in the amount payable by non-MD consumers in Band A, those in Band B had their tariff unchanged, while others in Bands C, D and E had their tariffs hiked.
Under Eko Disco, non-MD customers in Band A had their tariff reduced from N56.08/kWh in January to N55.55/kWh from February to December, while non-MD customers in Band B had theirs unchanged at N51.81/kWh.
For non-MD customers in Band C, D and E, their tariffs were raised from N42.44/kWh to N47.44/kWh, N28.63/kWh to N31.75/kWh, and N28.63/kWh to N31.71/kWh, respectively.
Taking the Port Harcourt Electricity Distribution Company as another example, it was observed that the approved end-user tariffs for all the bands for non-MD customers from A to E were hiked by the NERC.
Non-MD Band A customers of PHED had their tariff raised from N57.16/kWh in January to N60.67/kWh from February to December 2022, while the tariff of non-MD Band B customers was increased from N56.79/kWh to N59.64/kWh.
Non-MD customers in Bands C, D and E had their tariffs raised from N50.15/kWh to N55.15/kWh, N35.31/kWh to N38.81/kWh, and N35.08/kWh to N38.58/kWh, respectively.
It was also observed that customers in MD1 and MD2 in the various bands under the PHED had their tariffs also raised by the NERC, as similar scenarios played out in other Discos.
This came as power consumer groups condemned the hike in tariff by the NERC, describing it as unfortunate considering the fact that power supply had failed to improve across the country amidst the hardship nationwide.
An industry expert and legal practitioner, who doubles as President of the Nigeria Consumer Protection Network, Kunle Olubiyo, stated that the increase should be resisted and the privatisation of the sector reversed.
He said, “They did it in January and gave the licensees permission to surreptitiously increase the tariff and do mechanical configurations such that we are being shortchanged.
“The key performance indicators that they put forward which have to do with supply being contractual and service-based have not been met, they have failed on that. Yes, if they say inflation is high, do we get commensurate service as per what we pay?
“I was at Aso Drive on Monday here in the capital city of Abuja, they get supply for just three hours in a day. The supply to areas outside the city centre has been bad too. So if we can’t get power and there is a lot of blame game, what is the justification for tariff increase?”
Olubiyo stated that many customers on estimated billing had received up to 300 per cent hike in their electricity bills, as the capping methodology approved by the NERC had not been effective.
He wondered why the commission would be bold enough to release documents showing the approved tariff hike payable by customers to the Discos, as he called for the complete reversal of the power sector privatisation.
He said, “The NERC we have today is NERC for the Discos. We’ve reached a crossroads now and the next thing we expect from the Federal Government is to go for all the credit lines and clean up their books, those who are owing Nigerian banks or so, and make sure that this privatisation exercise is reversed.
“This is because this is not the end of it. Their new MYTO under the service-based tariff has given the Discos an open cheque to continue to increase tariffs without the basic principles of equity. We have two parties to this contract, the demand, and the supply sides.
“But NERC that we have is on the side of the market. They are not taking the demand side, but you must have demand for you to maintain supply. So for us what we want is an outright reversal of the privatisation, we are not saying review.”
Also speaking on the development, the National Secretary, Network of Electricity Consumers Advocacy of Nigeria, Uket Obonga, regretted that the tariff hike was approved by NERC despite the hardship in Nigeria.
“We are going to bombard them. It is official now that they have increased the electricity tariff even in this hardship. This is unacceptable. We cannot continue like this,” he stated.
Meanwhile, the NERC explained that pursuant to the Extraordinary Tariff Review Application and Performance Improvement Plan filed by Discos, the commission approved the MYTO 2020 Serviced Based Tariff effective from September 1, 2020.
It said this was to ensure that rates paid by customers were in alignment with the quality of service to customer clusters as measured by the daily average availability of power supply.
It said the objectives of the latest order on tariff hike were to reflect the impact of changes in the projected minor review variables for the period January to December 2021 for the determination of Cost-Reflective Tariffs, adjust the Discos’ capital expenditure for the years 2021 to 2026 in consideration of the approved PIP.
The commission said it was to ensure sustained improvement in reliability and quality of supply in line with Discos’ capital expenditures proposal and PIP commitment.
It said the order would ensure that tariffs payable by customers were commensurate and aligned with the quality and availability of power supply committed to customer clusters by Discos.
The NERC said the tariff order would ensure that prices charged by Discos were fair to customers and were sufficient to allow Discos to fully recover the efficient cost of operation, including a reasonable return on the capital invested in the business, pursuant to the provisions of sections 32(d) and 76 2(a) of Electric Power Sector Reform Act.
It further said the order would provide appropriate incentives to ensure continuous improvement in the performance of the Transmission Company of Nigeria Plc in reducing its network technical losses, among others.
The Punch
United Bank for Africa (UBA), Redtech, and MoMo PSB have launched a payment interoperability partnership that expands cardless payment access for consumers and merchants across Nigeria. Redtech is backed by Heirs Holdings; MoMo PSB is MTN Nigeria’s fintech subsidiary.
With this development, MoMo PSB customers can now make payments directly from their MoMo wallets at participating UBA merchant locations using the “Pay with MoMo” feature on RedPay POS terminals; they can also visit any UBA branch to make withdrawals and deposits from and into their MoMo accounts. For online shoppers, e-commerce merchants can now receive payments directly from MoMo PSB customers through Redtech’s payment gateway infrastructure.
The partnership brings together Redtech’s payment technology and enablement capabilities, UBA’s merchant-acquiring and distribution layer, and MoMo PSB’s mobile money wallet ecosystem and customer base. Redtech holds licences as a Payment Terminal Service Provider (PTSP) and Payment Solution Service Provider (PSSP) from the Central Bank of Nigeria, authorising it to provide both POS and payment gateway services. Together, the three organisations are addressing a critical gap in Nigeria’s payments market – connecting banking-led merchant acceptance with telco-led mobile money wallets.
For MoMo PSB customers, Pay with MoMo increases the number of places where their wallets can be used for everyday payments. In the case of merchants, it opens access to a wider pool of customers and provides an additional payment option at the point of sale.
UBA’s Head, Digital Banking, Kayode Olubiyi, who spoke during the launch, noted that this partnership represents the solution to the gap identified in cash transactions and card access.
“What this partnership represents is an honest and effective answer to the gap we identified in cash transactions and card access. Our merchants are already serving millions of customers every day through the UBA network. By bringing Pay with MoMo into that network, we are giving those merchants a direct connection to MoMo PSB’s customer base – and giving MoMo PSB customers more places to use their wallets when they shop. That is a clear win for both sides.”
Redtech’s Chief Executive Officer, Emmanuel Ojo, emphasised that the partnership aims to make payments work better together in a way that is practical for everyday commerce.
“This partnership is about making payments work more seamlessly for everyday commerce and most importantly, It aligns with Africapitalism, as championed by the Chairman of Heirs Holdings, Tony Elumelu, CFR. By integrating our RedPay technology with MoMo PSB’s wallets through the UBA network, we will offer merchants and customers greater choice. Our goal is to build the payment infrastructure that ensures a merchant never has to turn away any customer in Nigeria or across Africa because of their preferred payment method. By connecting our technology with MoMo PSB’s wallets through the UBA network, we are giving merchants and customers more options”
Ag. CEO, MoMo PSB, Omolara Michael-Nwadu, who highlighted the barriers to payment in the country, emphasised the importance of partnerships, explaining how integrating MoMo wallets into UBA’s merchant network through Redtech’s infrastructure will unlock additional merchant touchpoints.
“This partnership marks a significant step toward true interoperability in Nigeria’s payments ecosystem. By integrating MoMo wallets into UBA’s merchant network through Redtech’s infrastructure, we are removing barriers between bank-led and mobile money systems while unlocking access to over 55,000 merchant touchpoints. Our focus is on driving usage at scale, enabling more transactions, deeper engagement, and greater value for merchants. At MoMo PSB, we are building a more connected financial ecosystem where payments aren’t tied to platforms but to a seamless customer experience. At MoMo PSB, our focus is on simplifying payments, expanding access to financial services and helping more Nigerians do more every day. Pay with MoMo gives our customers more places to use their wallets, while supporting broader financial inclusion by bringing useful financial services closer to where people live, work and do business.”
UBA’s Group Head, Brands, Marketing and Corporate Communications, Alero Ladipo, captured the broader significance of the moment at the signing ceremony. “Every institution in this room is a giant in its own right. What makes today meaningful is the decision to come together anyway,” she said. Ladipo added, “Financial inclusion is not a slogan to us at UBA. It is a commitment that requires scale, technology, and the willingness to build ecosystems rather than silos. This partnership is that commitment made concrete.”
Pay with MoMo is being introduced through RedPay POS terminals already deployed within UBA’s merchant network. More than 55,000 RedPay POS terminals have been deployed across the network, with the platform having processed over ₦278.47 billion in transaction value and more than 12.23 million transactions to date.
Starting in Nigeria, Pay with MoMo is now live at participating UBA merchant locations, with plans to extend the rollout to selected African markets where both MoMo PSB and UBA operate.
As part of efforts to promote SMEs and strengthen support for operators in the informal sector, Unity Bank has continued to empower small-scale traders and shop owners across Nigeria through its initiative called Shop Collateralised Facility, SHOCOF.
SHOCOF is an innovative loan product, and Unity Bank has disbursed over N500 million to beneficiaries, significantly improving access to financing, and further driving financial inclusion.
Originally introduced as a targeted intervention for traders in Southeast Nigeria, SHOCOF quickly gained traction and broad acceptance for its flexibility and tailored structure, prompting the Bank to expand the product nationwide.
Under the initiative, eligible customers can use their shops as collateral to access financing. The product simplifies access to credit by leveraging the commercial value and stability associated with fixed business locations, enabling traders to secure funds without the stringent collateral requirements associated with traditional lending structures.
The facility provides working capital support that enables beneficiaries to restock goods, increase inventory turnover, improve cash flow, and respond more effectively to market demand.
Recent reports indicate that more than 80 per cent of Nigeria’s small businesses operate informally, with many relying on personal savings and informal borrowing channels due to limited access to Bank credit. SHOCOF was developed to bridge this gap through a lending model tailored to the realities of market traders and small shop owners.
Speaking on the impact of the product, the Group Head, Risk Management, Unity Bank, Olusegun Oladipo, said the Bank recognised the need for financing solutions aligned with the realities of informal sector businesses.
“SHOCOF was created to address a critical gap within the small business ecosystem by providing access to credit through a structure that traders can satisfactorily meet without much ado,” Oladipo said.
He added: “By recognising the value and stability embedded in their businesses, we have been able to support traders with the capital required to sustain and grow their operations.”
Also commenting, Divisional Head, SME & Retail Banking, Unity Bank, Adenike Abimbola, said the nationwide adoption of the product reflects proper market segmentation to meet the growing demand for accessible financing among small business owners.
“What started as a targeted intervention in the Southeast, which quickly gained momentum because the product directly addressed the realities of everyday traders,” Abimbola said.
Over the years, Unity Bank has continued to introduce targeted solutions aimed at empowering entrepreneurs, including its flagship Yanga account package developed to support female entrepreneurs.
The Bank reaffirmed that expanding access to capital for underserved business segments remains critical to boosting trade, strengthening local economies, and driving sustainable economic growth.
Access Holdings Plc has reaffirmed its commitment to longterm shareholder value and sustainable returns, following a strong performance in the 2025 financial year, while providing clarity on the rationale for the nonpayment of dividends for the year ended December 31, 2025.
The clarification was provided during the Group’s Full Year 2025 Investors and Earnings Call, where management addressed shareholder concerns regarding the absence of a dividend declaration despite the Group’s robust earnings growth and balancesheet expansion.
Access Holdings emphasised that the non-payment of dividend for the 2025 financial year was not performance driven, but reflected prudential regulatory alignment matters which required resolution before dividend payments could be effected.
Commenting on the matter, Innocent C. Ike, Group Managing Director/Chief Executive Officer, Access Holdings Plc, said: “Access Holdings has a strong history of consistent dividend payments, and rewarding shareholders remains a core priority for the Board and Management. The nonpayment of dividend for 2025 was not due to earnings weakness or cash flow constraints, but an alignment with regulatory and prudential guidelines.”
For the 2025 financial year, Access Holdings delivered a resilient and diversified performance, underscoring its capacity to generate sustainable shareholder returns. Gross earnings grew by 13.3 percent to ₦5.53 trillion, supported by strong growth in net interest income and a 40.9 percent increase in fees and commissions to ₦585.07 billion. Profit before tax increased by 16.2 percent to ₦1.01 trillion, crossing the ₦1 trillion mark for the first time in the Group’s history.
Total assets expanded by 24.2 percent to ₦51.56 trillion, reflecting scale accretion and the successful integration of recently acquired subsidiaries. The Group’s costtoincome ratio improved significantly from 56.7 percent to 51.7 percent, driven by disciplined cost management and operating leverage. Capital adequacy remained strong at 18.2 percent at the holding company level, while the banking subsidiary ended the year with a capital adequacy ratio of 20.2 percent.
“Our performance in 2025 demonstrates the strength of the franchise and its capacity to generate value for shareholders. Our focus is to ensure that shareholder distributions resume on a sustainable basis once all regulatory conditions are satisfied and the required approvals are obtained,” Ike added.
Access Holdings explained that while dividends were recommended at both halfyear and fullyear in 2025, regulatory approvals were not obtained. At the halfyear stage, the constraint related to Section 7.1 of the CBN Guidelines for Financial Holding Companies, which has since been fully resolved following the successful completion of an approved private placement.
At fullyear, an additional matter arose under Section 19(8)(c) of BOFIA, which places limits on investments in foreign banking subsidiaries relative to shareholders’ funds. The Group has been granted a twelvemonth window to fully remediate this position. The Group noted it will partially divest from some banking subsidiaries but will still retain its super majority shareholding.
According to Ike, maintaining the confidence of our regulators, depositors and stakeholders is fundamental to our operating philosophy. In line with our long-standing culture of prudence and sound governance, the Board remains committed to balance sheet strength and capital resilience, as the basis for sustainable shareholder distributions.”
The Group reassured stakeholders that it remains committed to engaging constructively with all relevant stakeholders to address the matters raised and achieve alignment with applicable requirements within the stipulated timeline. As discussions progress, the Group will continue to provide timely disclosures and transparent updates to the market and investors.
Access Holdings Plc is also strengthening its capital and liquidity buffers to support the sustainable resumption of dividend payments, subject to the fulfillment of the required conditions and approvals.
Reaffirming management’s confidence, Ike stated: “We remain actively engaged with the investment community and focused on resolving the matters raised within the prescribed timeline. Our priority remains delivering sustainable long-term value to shareholders through stronger execution, improved financial performance and disciplined growth. Subject to the successful conclusion of this process and the necessary approvals, our objective is to restore dividend payments on a sustainable basis.”
Concluding, Ike said: “Access Holdings is uniquely positioned to leverage its scale, geographic diversification and strong franchise to deliver resilient earnings growth, stronger returns and enhanced long-term shareholder value.”
