Data obtained from petroleumprice.ng on Saturday showed that the average cost of petrol at private depots increased sharply within 48 hours, tightening margins for marketers and raising fresh concerns over an imminent spike in retail pump prices nationwide.

In Lagos, Dangote depot, which consistently offers the lowest petrol price sold PMS at N703 per litre on Friday, up from N702.50 on Wednesday, December 31, 2025. While the increase at Dangote was marginal, other private depots recorded steeper adjustments.

Eterna and Integrated depots raised petrol prices to N800 per litre on Friday, compared with N726 per litre at Shellplux and AIPEC earlier in the week, indicating a jump of N74 per litre within two days.

 

Similarly, Aiteo and Lister depots sold petrol at N780 per litre, up from N750–N760 band recorded on Wednesday.

The impact was more pronounced in Warri, one of the country’s key petroleum logistics hubs.

While Matrix Energy and other major depots sold petrol at N800 per litre on Wednesday, prices climbed to as high as N805 per litre by Friday, according to the report.

The Warri market reacted faster due to tighter supply lines and higher transportation costs, especially as marketers reposition volumes ahead of anticipated scarcity.

Last December, Dangote Petroleum Refinery reduced its petrol gantry price, slashing the ex-depot rate from N828 to N699 per litre.

The new price took effect on December 11, 2025, marking the 20th petrol price adjustment announced by the refinery this year.

Market operators linked the price surge to the shutdown of the petrol unit at the Dangote Refinery, which had recently become a major domestic supplier of PMS, helping to moderate prices following the removal of fuel subsidies.

Commenting, the Chief Executive Officer of petroleumprice.ng, Jeremiah Olatide, said the latest increase was a calculated response by importers seeking to recover losses recorded in December.

He explained that importers were hit hard by the aggressive price slash by the Dangote Refinery, which sold petrol at about N699 per litre, forcing many private players to sell below their landing costs.

“This price uptick is a deliberate move by importers to recoup losses from the massive price slash by the Dangote Refinery in December,” Olatide said.

He added that marketers were already factoring in potential supply tightness in January due to the ongoing upgrade at the Dangote Refinery, a development they believe could limit domestic supply temporarily.

“Importers are postulating that there may be supply constraints in January because of the refinery’s plant upgrade, and they see this as an opportunity to make up for December losses,” he noted.

According to him, some depot operators are deliberately holding back volumes in storage, waiting to sell at prices above their landing costs once any supply disruption emerges.

“They are keeping products in tank, hoping to sell above their landing cost as soon as there is a supply glitch,” Olatide said.

However, he cautioned that the strategy may not hold for long, noting that the Dangote Refinery could respond aggressively once supply normalises.

“We will see how the new pricing plays out, but there will likely be a fightback from the refinery,” he added.

With Dangote’s supply temporarily curtailed, private depot owners have begun repricing available stock, citing replacement costs, foreign exchange volatility and uncertainty around import schedules.

The petroleumprice.ng report also noted that Brent crude closed at $60.20 per barrel on Friday, while the naira continued to weaken at the parallel market, trading at N1,495/$, compared with N1,475/$ on Wednesday, further adding pressure to fuel pricing.

Depot price movements typically precede changes at filling stations, and industry watchers warn that the current trend could push retail petrol prices beyond N700 per litre in several cities if sustained.

Petrol marketers said margins had been compressed by logistics costs, financing challenges and volatile exchange rates, making depot price increases difficult to absorb without adjusting pump prices.

Since the full deregulation of the downstream petroleum sector, petrol prices in Nigeria have been determined by market forces, including crude prices, exchange rates, logistics and supply availability.

The Dangote Refinery, with a capacity of 650,000 barrels per day, had raised expectations of price stability through local refining. However, its temporary petrol unit shutdown has exposed the fragility of supply dynamics, especially as imports remain costly.

•IPMAN slams depot owners for stockpiling product, FG, Dangote resume talks today

Following the Dangote Petroleum Refinery’s suspension of the sale of petroleum products in naira, some filling stations have started stockpiling Premium Motor Spirit, otherwise known as petrol, The TheNigerian reports.

The retailers are storing the product to ensure they have enough to sell at a higher rate, having projected that the price of petrol would go up soon as a result of the failure of the Federal Government to continue the sale of crude oil to the Dangote refinery in the local currency.

However, the Independent Petroleum Marketers Association of Nigeria warned these retailers to stop panic buying as they may run into heavy losses.

Last week, the Dangote refinery announced that it had temporarily halted the sale of petroleum products in naira as the naira-for-crude talks between it and NNPCL appeared to have failed.

The 650,000 barrels per day capacity refinery lamented that there was a mismatch between its sales proceeds and its crude oil purchase obligations, which it said are currently denominated in US dollars.

“Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.

“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency,” the firm announced.

Immediately after the announcement, the cost of loading petrol at private depots in Lagos jumped to about N900/litre. It was less than N850/litre before the announcement.

In an interview with our correspondent on Sunday, the National Publicity Secretary of IPMAN, Chinedu Ukadike, said depot owners were profiteering even as some owners of filling stations were in a rush to stockpile fuel.

According to him, the demand for PMS has risen since Wednesday, when Dangote made the announcement. As a result, depot owners were said to have raised their prices to make more profit.

It was observed that players in the downstream petroleum sector have been left to continue speculating on the prices of petroleum products as the Federal Government had kept mute since the announcement made by the Dangote refinery.

Five days after the announcement, the refinery has yet to tell marketers how the dealers will buy PMS going forward.

Private depot owners wasted no time in jerking up their prices in anticipation of a possible hike in petrol prices. Although owners of filling stations have yet to increase their prices, they are already buying to sell for more gains when the price goes up later.

But Ukadike condemned depot owners for profiteering from the impasse between the Federal Government and the Dangote refinery, saying that is not good for the economy.

He warned marketers not to panic-buy because the Dangote refinery may crash the price.

“Some depot owners are already increasing the price. But we are also asking our marketers not to panic-buy. Because definitely when the Dangote refinery comes back and reverses the price, it will be a huge loss for these marketers. Depot owners are using this opportunity to profiteer. This is not good for the economy.

“Some marketers are also stockpiling PMS in a bid to increase the price based on the suspension of naira sales by the Dangote refinery. They speculate that the price will go higher and they will make more money from the fuel they are buying now. It may not be so. This issue will be resolved,” Ukadike stated.

He warned all marketers against buying large volumes of petrol to avoid running into debt.

“We, the independent marketers, are asking our members not to buy so much goods because when they buy so much volume of fuel at a higher rate from the depot owners, at the end of the day, it might result in losing a lot of capital.

“Dangote may crash the price and most of them with high volumes of PMS will run into problems. So, all marketers should be careful to avoid losses,” he advised.

The IPMAN spokesman disclosed that the Federal Government and Dangote refinery are resolving their misunderstanding to allow the resumption of the naira crude sales. He stated that stakeholders are waiting to hear the conclusion from either party.

“I have gathered that the Federal Government and Dangote refinery are almost resolving this matter.

“The two of them are reviewing the naira-for-crude deal to continue the sale of crude oil in naira to the refinery again.  But the official statement has not come out. We are waiting for the official statement,” Ukadike revealed.

Sources from the Federal Ministry of Finance and the Federal Ministry of Petroleum Resources had earlier confirmed that the Technical Sub-Committee on the Naira-for-Crude Policy would reconvene today (Monday) to deliberate on the matter.

It was gathered that the committee had mandated the Nigerian Upstream Petroleum Regulatory Commission to come up with options that would be reviewed by the panel as it struggles to return the naira-for-crude deal.

The insider familiar with the workings of the naira-for-crude said the transaction would not be halted permanently. The source, who spoke in confidence due to lack of authorisation to speak on the matter, pointed out that NNPCL had issues with crude availability.

Industry experts and oil marketers warned that the halt in naira sales by the Dangote refinery could increase the pressure on the foreign exchange market, as dealers would now have to access the United States dollars in large amounts to buy petroleum products.

This came as multiple industry sources familiar with what prompted the failure in the naira-for-crude talk decried the Nigerian National Petroleum Company Limited’s humongous forward sale of crude.

They stressed that the national oil company had used large volumes of its yet-to-be-produced crude oil to acquire loans from various international financial institutions, making it tough for the oil firm to have enough crude to supply the domestic market.

Earlier, the NNPC spokesman, Olufemi Soneye, announced that it had initiated fresh negotiations with the Dangote refinery over the renewal of the naira-for-crude agreement, as talks were underway in anticipation of the expiration of the first phase which started in October 2024 and ends this month.

Soneye said 48 million barrels of crude had been supplied to the Dangote refinery since October.

The Dangote refinery’s suspension of the sale of petroleum products in naira means marketers would have to source dollars before buying petrol from the facility.

The National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, said there could be pressure on the naira, and it would lose the stability it had gained lately.

Experts have said that the naira-for-crude deal emboldened the Dangote refinery to lower the prices of PMS repeatedly, forcing the NNPC to do so even when it was affecting its margins.

The TheNigerian reports that fuel importers lost billions of naira with the repeated reduction of fuel prices by the $20bn facility.

At a point, the Petroleum Products Retail Outlet Owners Association of Nigeria, which once commended Dangote for the price slashes, kicked against it, asking the regulator to make it mandatory that prices should only be slashed after six months.

Meanwhile, industry sources said stopping the naira-for-crude deal might be a calculated attempt to reduce the influence of the Dangote refinery, which some players in the downstream accused of planning monopolistic tendencies.

Reacting, domestic crude oil refiners argued that the halt in crude supply in naira was the latest ploy to frustrate the Dangote refinery and bring back the full importation of refined petroleum products.

The National Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria, Eche Idoko, disclosed that suspending the deal defeats the efforts of all stakeholders in the sector to achieve energy security.

The TheNigerian reports that seven vessels carrying imported Premium Motor Spirit, popularly called petrol, were expected to berth at seaports along the nation’s borders between  March 17 and 23.

According to a document obtained from the Nigerian Port Authority on Thursday, these vessels carrying 115,000 metric tonnes representing 154.22 million litres of PMS will bring in products through three seaports to improve fuel supply nationwide.

An analysis of the document from NPA showed that the commodities landed at the Tincan port in Lagos, the Lekki Deep Seaport in Lagos, and the Calabar port in Cross River State.

The document also revealed that the Dangote refinery imported 654,766 metric tonnes of crude oil within the same period.

Fuel crisis

Recall that the Dangote refinery in Lekki, Lagos State, was greeted by crude challenges when it began operations last year.

The President of the Dangote Group, Alhaji Aliko Dangote, had cried out, saying some international oil companies were planning to sabotage the investment by refusing to supply crude.

The Dangote Group had alleged that the IOCs insisted on selling crude oil to its refinery through their foreign agents.

It said the local price of crude would continue to increase because the trading arms offered cargoes at $2 to $4 per barrel, above the official price.

The group also alleged that the foreign oil producers seem to be prioritising Asian countries in selling the crude they produce in Nigeria.

Despite the intervention of the Nigerian Upstream Petroleum Regulatory Commission in July, the group insisted that the IOCs were still frustrating the refinery.

The Vice President, Oil & Gas, Dangote Industries Limited, Mr Devakumar Edwin, said, “If the Domestic Crude Supply Obligation guidelines are diligently implemented, this will ensure that we deal directly with the companies producing the crude oil in Nigeria as stipulated by the Petroleum Industry Act.”

Edwin insisted that IOCs operating in Nigeria had consistently frustrated the company’s requests for locally-produced crude as feedstock for its refining process.

He highlighted that when cargoes were offered to the oil company by the trading arms, it was sometimes at a $2 to $4 (per barrel) premium above the official price set by the NUPRC.

The issue escalated and drew angry reactions from many Nigerians when the Chief Executive of the NMDPRA, Farouq Ahmed said local refineries were producing fuels less in quality than imported ones.

Concerned by the controversies, President Bola Tinubu, during a Federal Executive Council meeting on July 29 proposed the sale of crude to local refineries in naira.

The Federal Executive Council adopted the proposal by Tinubu to sell crude to the Dangote refinery and other upcoming refineries in the local currency.

FEC approved that the 450,000 barrels meant for domestic consumption be offered in naira to Nigerian refineries, using the Dangote refinery as a pilot.

A media aide to the President, Bayo Onanuga, said in July that “the exchange rate will be fixed for the duration of this transaction.”

The Dangote Petroleum Refinery has temporarily halted the sales of petroleum products in naira as the naira-for-crude talks between the $20bn Lekki-based plant and the Nigerian National Petroleum Company Limited appear to have failed.

Following the announcement of the halt in petroleum products’ sales in naira by the Dangote refinery on Wednesday, the cost of loading petrol at private depots in Lagos jumped to N900/litre. It was less than N850/litre before the announcement.

Industry experts and oil marketers warned that the halt in naira sales by the Dangote refinery could increase the pressure on the foreign exchange market, as dealers would now have to access the United States dollars in large amounts to buy petroleum products.

This came as multiple industry sources familiar with what prompted the failure in the naira-for-crude talk decried the humongous forward sales of crude by NNPCL.

They stressed that the national oil company had used large volumes of its yet-to-be-produced crude oil to acquire loans from various international financial institutions, making it tough for the oil firm to have enough crude to supply the domestic market.

In a statement on Wednesday, the Dangote Group said the suspension of petroleum products’ sale in naira is temporary.

It said, “Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.

“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.”

The refinery also debunked online reports that it was stopping loading due to an incident of ticketing fraud.

“This is a malicious falsehood. Our systems are robust and we have had no fraud issues. We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in naira,” the statement said.

Forward crude sale

When asked to state some of the effects that the latest decision of the Dangote refinery would have on the oil sector, a major marketer, who spoke in confidence due to the nature of the matter, replied, “Two key things to ponder. Nigeria generates over 90 per cent of its foreign exchange earnings from the sale of crude oil.

“Secondly, we have not been able to produce much more than 1.6 million barrels a day on a consistent basis. Thirdly, much of that production has already been sold in advance to ease cash flow problems that essentially came about because NNPCL was absorbing the cost of subsidising gasoline prices. So your guess is as good as mine as to how naira for crude can be sustained. If you have an idea please share it with me.”

The oil dealer further noted that the development shows that the naira-for-crude deal between NNPCL and the Dangote refinery may have collapsed.

“I really can’t say beyond the fact that the negotiations may not be going well. As in all negotiations, there must be give and take and compromise. Once either party insists on their own position irrespective of the circumstances, then things might break down,” the dealer stated.

In an interview with one of our correspondents, the NNPCL spokesman, Olufemi Soneye, neither denied nor confirmed claims that the NNPCL was halting the naira-for-crude deal with Dangote refinery.

However, The TheNigerian gathered that discussions about the deal between the Dangote refinery and the Technical Sub-Committee regarding the naira-for-crude deal have collapsed due to what sources described as a lack of enough crude.

Soneye instead insisted that the company had maintained its stance on supplying crude for local refining based on mutually agreed terms and conditions.

“As I have repeatedly stated, NNPC remains committed to supplying crude for local refining based on mutually agreed terms and conditions. Additionally, the NUPRC has disclosed that all local refining companies collectively produce less than 50 per cent of our national consumption. You can do the Maths,” he stated.

Last week, the NNPC announced that it had initiated fresh negotiations with the Dangote refinery over the renewal of the naira-for-crude agreement, as talks were underway in anticipation of the expiration of the first phase which started in October 2024 and ends this month.

Soneye said 48 million barrels of crude had been supplied to the Dangote refinery since October. As the Dangote refinery suspends the sale of petroleum products in naira, it means marketers would have to source dollars before buying petrol from the facility.

With this, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, said there could be pressure on the naira, and that it would lose the stability it had gained lately.

He said, “The price of petrol will depend on the exchange rate, the crude price, and other factors that determine the landing cost. Recently the landing cost was around N774.82, if that is sustainable for now, Dangote’s suspension of naira sales may not affect prices for now. But the dollar may lose value if marketers run after the dollar to buy petrol from Dangote refinery, the naira will lose value again. Let’s wait and see the market reaction to this move from the Dangote refinery.”

In his advice, the IPMAN Vice President appealed to the Federal Government not to stop the naira-for-crude deal.

“I would like to advise the FG to look into the agreement with Dangote again to maintain the tempo of the prices of petroleum products. The masses today are happy with the drop in petrol prices. But just a few hours ago the private depot owners started reacting to the Dangote press release by reviewing their prices upward.

“Yesterday, we closed with N825 to N826, but this afternoon, prices have started increasing again to N835 to N836 per litre. I will appeal to the FG to continue supplying crude to Dangote and other local refiners to maintain stability in the sector,” Fashola said.

Speaking, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said the suspension of the supply of fuel in naira will raise the price again, saying, however, that the Federal Government has yet to stop the naira-for-crude deal.

Gillis-Harry told our correspondent that there was a meeting on Wednesday with the Federal Government and other stakeholders in the sector.

According to him, PETROAN and other marketers made it clear at the meeting that the deal should not be stopped because of its negative effects on fuel prices, saying Dangote might be speculating.

“Dangote’s suspension of fuel supply in naira will certainly affect prices. The price will go up again. But for me, right now, the issue of suspension or cancellation of the naira-for-crude deal has not been categorically made by the Federal Government. We have been in meetings. We asked questions because this naira-for-crude deal is something very important to us as retail outlet owners. Today (Wednesday), I was at a meeting where the subject was discussed.

“So, there was no decision that has been made as we speak. So, I don’t know where that Dangote decision is coming from. But he is a businessman, he can speculate. Every businessman is entitled to a projective opinion,” Gillis-Harry said.

The PETROAN boss told our correspondent that the naira-for-crude deal became a heated topic at the Wednesday meeting as marketers insisted on its continuation.

“We just left the meeting where the subject was a heated one. I’m talking because I led retailers and we know that we want the naira-for-crude deal to stay. So, I’m talking still with the expectation that this will happen,” he added.

The naira-for-crude deal emboldened the Dangote refinery to lower the prices of PMS repeatedly, forcing the NNPC to do so even when it was affecting its margins.

Industry sources said stopping the naira-for-crude deal might be a calculated attempt to reduce the influence of the $20bn refinery, which some players in the downstream accused of planning monopolistic tendencies.

On Tuesday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, met with the President of the Dangote Group, Aliko Dangote. The minister was said to have told Dangote about the difficulty in the naira-for-crude deal.

Refiners react

Domestic crude oil refiners argued that the halt in crude supply in naira was the latest ploy to frustrate the Dangote refinery and bring back the full importation of refined petroleum products.

The National Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria, Eche Idoko, disclosed that suspending the deal defeats the efforts of all stakeholders in the sector to achieve energy security.

He said some persons are aggrieved about the continuous reduction in petrol by the refinery and only use monopolistic talks to bring back importation as an alternative.

He said, “What the Federal Government did during the negotiations was that it shut CORAN and we are not privy to what transpired. We also don’t know the terms and conditions. It is now making it difficult for us to midwife in the conversation. Ideally, the association should have been carried along for advocacy purposes. But right now, whatever it is, it is unfortunate if they allow what everyone has painstakingly worked for to go down the drain.

“At this rate, this means we would revert to full import and that means our naira will begin to struggle again. That is the implication and high petrol price. We knew that the naira-for-crude deal was going to help the Federal Government in the long run. But right now, the issue is that a lot of people are blinded by the fact that Dangote is benefitting from it and not looking at the overall advantages it has for Nigerians.”

The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Chinedu Ukadike, said the development would jerk up pump prices due to the cost of sourcing foreign exchange to pay for the product.

“Dangote has been under serious pressure to source for dollars to buy crude. And this means marketers would have to buy in dollars. Whatever happens in the oil and gas sector must trickle down to the final consumer. So go and get your dollars ready to buy petrol. We can’t escape price increases. Already at the depot, they have started increasing their price. We appeal to Mr President to please continue the kind gesture for the benefit of Nigerians,” he said.

Amidst these uncertainties, depot owners have increased the loading cost of petrol and other refined petroleum products at the depots.

Several private depots, including Bovas, Aipec, Menj, and Integrated stopped dispensing petrol.

An analysis of data obtained by one of our correspondents revealing petrol price movements at loading depots on Wednesday showed that Chipet depot increased its loading price to N900 per litre from N835 per litre sold earlier in the day.

Rainoil Depot increased its price from N830 to N835 per litre, and Wosbab effected an increase of N9 from N826 to N835 per litre. Pinnacle depot made the same price change from N826 to N835 per litre while MRS Tincan and Nipco changed their prices to N835 per litre from N827 and N825, respectively.

Reacting, an oil and gas expert, Olatide Jeremiah feared that loading cost might increase to N1,000 per litre if a consensus is not reached in the next 48 hours.

Jeremiah, who is the Chief Executive Officer of petroleumprice.ng, said, “The sharp petrol price increase and stop in sales by private depot upon hearing that Dangote refinery has suspended sales of petroleum products reaffirms Dangote as the market leader and driver of the downstream sector. I am calling on NNPCL and NUPRC, as a matter of urgency, to act on section 109 of the PIA act that states clearly that Local refineries should be given unhindered access to crude.

“If Dangote refinery and NNPCL are unable to reach a consensus in the next 48 hours, fuel pump prices might hit 1000/Litre in the coming days.”

The Nigeria Labour Congress has vowed to mobilise workers and citizens for a nationwide protest if the Federal Government proceeds with its proposed electricity tariff hike, describing it as “economic violence against the working class and broader Nigerian populace.”

This came as the National Union of Electricity Employees warned the Federal Government against plans to hike electricity tariffs, saying Nigerians should not be paying for darkness.

In a communiqué issued at the end of its National Executive Council meeting in Yola, Adamawa State, on February 28, 2025, which was made available to journalists on Sunday, the NLC rejected what it called a “sham reclassification” of electricity consumers by the Nigerian Electricity Regulatory Commission.”

It accused the Ministry of Power and NERC of attempting to force consumers into higher tariff bands under the pretext of service improvement while, in reality, deepening economic hardship.

“The ruling elite, acting as enforcers of global monopoly capital, are determined to further deepen the misery of the Nigerian people through incessant tariff hikes, increased taxation, and relentless economic strangulation,” the statement read.

The NEC resolved that “any attempt to impose additional electricity tariffs would be met with mass resistance.” It mandated its “National Administrative Council to begin immediate mobilisation for protests,” warning that the government must not test the patience of the Nigerian people.

Beyond electricity, the NLC also expressed concerns over the recent 35 per cent increase in telecommunications tariffs.

While the congress acknowledged an agreement with the Federal Government to reduce the initial proposed hike from 50 per cent to 35 per cent, it remained skeptical of the government’s commitment to keeping its word.

The union further warned that if the new telecom tariffs, set to take effect on March 1, 2025, are implemented contrary to the agreed terms, it would enforce compliance using all necessary instruments.

The congress emphasised that Nigerian workers should not bear the brunt of corporate and government inefficiencies.

The NLC’s stance on electricity tariffs has been reinforced by workers in the power sector, who have also rejected the reclassification of consumers.

The electricity workers’ union described the move as an exploitative agenda designed to force Nigerians into paying more without any corresponding improvement in service delivery.

The union vowed to resist any attempt to hike tariffs and warned of disruptions in the sector should the government proceed with its plans.

The NUEE was reacting to a disclosure by the Minister of Power, Adebayo Adelabu, that the government was planning to regularise electricity tariffs in Bands A, B, and C in a bid to address disparities in the current billing system as well as attract more investments to the power sector.

 NUEE said the minister’s statement on tariff has raised eyebrows, with many questioning whether this is the right priority or whether Adelabu has taken over the work of the Nigerian Electricity Regulatory Commission, which is statutorily saddled with the responsibility of regulation.

According to the union, the minister’s assertion that a tariff increase is necessary to boost liquidity in the power sector has sparked controversy, especially considering the existing challenges in the sector.

A statement by the acting General Secretary, Dominic Igwebike, stated, “The National Union of Electricity Employees, as a critical stakeholder in the power industry, cannot sit on the fence without stating our stance and proffering the best solution to this issue.”

According to the union, the justification given by NERC for the electricity hike in 2024 was that the hike was attributed to only Band A consumers who make up only 15 per cent of electricity consumers and utilise 40 per cent of the nation’s electricity consumption, with a promise that the hike would not affect the general public.

 “We asked some salient questions in our publication of April 14, 2024: Who are the Band A consumers? What do they do? Who bears the brunt of the electricity hike?

 “The general public is the one that will be most affected by this. They are the customers and end-users of the Band A products and services. The additional costs will be transferred to the common man, so they are indirectly being exploited, notwithstanding their dwindling purchasing power and increasing impoverishment,” the union said.

It asked that rather than prioritising a tariff review, shouldn’t the minister focus on improving the overall efficiency and reliability of the power sector?

While acknowledging the financial woes of the power sector, NUEE said it is appalling that Adelabu is more interested in increasing the poverty level rather than alleviating the same.

The TheNigerian reports that the tariff hike proposed by Adelabu seeks to align tariffs for customers in the Band B and C categories with the N206/KWh rate paid by Band A customers.

However, this plan by the government was opposed by power consumers and members of the Organised Private Sector, who wondered why the government had continued to hike the cost of commodities in various sectors of the economy.

The Nigeria Labour Congress has shelved its planned protest scheduled for March 1, 2025, after reaching an agreement with the Federal Government on a 35 per cent increase in telecom tariffs, The TheNigerian reports.

NLC’s decision was welcomed by the National Association of Telecommunications Subscribers on Thursday, as the group called for better relief measures for telcos.

On January 20, 2025, the Nigerian Communications Commission announced a 50 per cent hike in telecommunications tariffs—the first major adjustment in over a decade. Telecom operators, grappling with rising operational costs due to inflation and currency depreciation, had initially proposed a 100 per cent increase before the government intervened.

Multiple insider sources at the NLC informed The TheNigerian on Thursday that negotiations between the union and the Federal Government resulted in a compromise, lowering the initially proposed 50 per cent increase to 35 per cent. A 10-member committee was formed to deliberate and finalise the agreement.

An impeccable source with the labour union said, “Have you not heard that an agreement has been reached between the NLC and the FG? The 50 per cent hike in telecom tariff has been reduced to 35 per cent as agreed by the 10-man committee.”

When asked if this means the protest scheduled for March 1 would be shelved, the source replied, “That should be obvious.”

In a previous interview with The TheNigerian, the Chairperson of the Lagos State chapter of the NLC, Funmi Sessi, condemned the Federal Government’s decision to approve a 35 per cent increase, calling it an unfair burden on already struggling Nigerians.

“How can the Federal Government be the one determining prices? This is an anomaly,” she argued.

Sessi said any tariff adjustment should be gradual and not exceed 15 per cent, given the current economic hardship.

Meanwhile, the NLC Public Relations Officer, Upah Benson, told The TheNigerian that there would be a National Executive Council meeting of the union today (Friday) to deliberate further on the matter.

NATCOMS welcomes reduction

The President of the National Association of Telecommunications Subscribers, Adeolu Ogunbanjo, has welcomed the reported reduction of the proposed 50 per cent telecom tariff hike to 35 per cent but called for more relief measures to ease the burden on consumers.

Speaking in response to reports of the tariff adjustment, Ogunbanjo said NATCOMS was not invited to be part of the committee that reviewed the rates.

“I believe it is 35 per cent, but this is based on what I heard from sources,” Ogunbanjo told The TheNigerian. “That information has been out there since Monday.”

He described the 15 per cent reduction as a result of consumer advocacy but urged telecom operators to consider further reductions to cushion the impact on subscribers.

“We fought, and at least a 15 per cent reduction is something,” he said.

The Nigerian Communications Commission, which regulates the telecom sector, and industry groups, including the Association of Licensed Telecommunications Operators of Nigeria and the Association of Telecommunications Companies of Nigeria, did not respond to requests for comment.

In its bid to enhance the liquidity of the Nigerian Electricity Supply Industry, the Federal Government has said it is considering plans to regularise the electricity tariffs to address disparities in the current billing system for customers outside the Band A category.

The proposed hike seeks to align tariffs for customers in the Band B and C categories with the N206/kW rate paid by Band A customers, who make up approximately 15 per cent of the total 12.82 million power consumers nationwide.

However, this plan by the government was opposed by power consumers and members of the Organised Private Sector, who wondered why the government had continued to hike the cost of commodities in various sectors of the economy.

This comes as the government admitted that it currently owes the 24 power generation companies and 11 electricity distribution companies operating in the country over N4tn in electricity subsidy.

The Minister of Power, Adebayo Adelabu, made this known at the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan on Thursday in Abuja.

The NIEP initiated in 2024 was developed through a collaborative effort involving power sector professionals and donor partners, including the De the Development Bank, the World Bank, the United Nations Development Programme, the Deutsche Gesellschaft für Internationale Zusammenarbeit, the Tony Blair Institute and the United Kingdom Nigeria Infrastructure Advisory Facility.

The TheNigerian reports that the Nigerian electricity sector has undergone several reforms in the last year that are perceived as harmful to citizens, causing significant hardship following the government’s firm stance on adopting a cost-reflective tariff.

The latest development comes weeks after the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, had hinted that the current power tariffs would rise by about two-thirds.

Speaking in his keynote address on Thursday, Adelabu said the government is considering this option over the slow pace of migration to Band A customers, which he attributed to the reluctance of distribution companies to make the necessary investments.

He stated that the tariff regularisation would promote investment in the power sector amidst calls by potential investors for a cost-reflective tariff regime in the country.

Under the current structure, customers in Band B, who enjoy 18 to 17 hours of electricity supply, pay N63 per kilowatt-hour, while those in Band A, with only two hours more of supply, are charged N209 per kilowatt-hour.

Adelabu described this as “unfair” and stressed the need for a regularisation of the tariffs to create a more balanced and equitable pricing system.

The minister said, “We will look at the tariff again. I am not saying that we are going to increase the tariff before I am misquoted.

“We are going to look at it and see how we can improve upon our modest achievement of last year, not only to ensure that we grow the sector that we need but also to ensure that we can invest more in revamping all these dilapidated infrastructures.

“The migration to Band A should have been faster, but we found out that Discos refused to invest. They have refused to invest in this sector. A lot of investment is required for us to achieve an accelerated migration of lower-band customers into Band A. It is taking a lot of time.”

In response to this, the government is considering restructuring the tariff bands, reducing the current wide gap between them. The minister explained that a new system, proposed to encompass Bands A, B, C and eliminate D and E tariff groups would address these inequalities.

“The gap between the Band A tariffs and Bands B, C, D, and E is just too wide,” he said. “We believe it’s not fair. It is not just, and we must be able to carry out some level of regularisation.”

The minister also revealed that the Federal Government owes electricity generation and distribution companies over N4tn in electricity subsidies.

He noted that the debt had added to the already challenging situation in strengthening the power sector to deliver optimum service to consumers.

A breakdown showed that N2tn is owed to Gencos as legacy debts, while another N1.9tn is owed to them as part of the electricity subsidy for 2024, while Discos are owed N450bn for the 2024 electricity subsidy.

“How do you expect the Gencos to perform optimally? How do you expect them to pay for gas, service and maintain their turbines and other infrastructure as well as pay their staff? If a total of N4tn is owed to them,” Adelabu stated.

Consumers, OPS kick

Electricity consumers have kicked against the plan by the Federal Government to increase electricity tariffs payable by customers currently enjoying government subsidies.

The consumers, under the aegis of the All Electricity Consumers Forum, said it would be insensitive of the government to think of any tariff increase at a time when it has not succeeded in giving a stable electricity supply to the people.

Speaking with The TheNigerian, the National Coordinator of All Electricity Consumers Forum, Adeola Samuel-Ilori, said the present infrastructure of the distribution companies and that of the Transmission Company of Nigeria are moribund to achieve any meaningful improvement in power generation, wondering if the government sees the masses as gullible and docile.

“Our peak generation is just 5,345 megawatts. Discos still reject loads for one reason or another. It’s purely insensitive of a ruler to think the citizens can be pummeled to a state of involuntary submission because of their passive mentality. That’s not only bad but criminal, and it can only be a government with no good intentions that will contemplate that,” Samuel-Ilori said.

He alleged that the government is imposing taxes on people to convince investors that there would be returns on investments.

The National Vice President of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George, said the Federal Government is insensitive.

He lamented, “I think the government is insensitive to what is happening in the nation. The government is behaving as if they are ruling from outside, as if they are living in another country and ruling from there. The government is far from the reality of what is facing the country. The service providers just increased their own tariffs, the Nigerian Ports Authority as well by 15 per cent.

“Why is the government not working on providing alternative sources of power? Even the electricity we have is not regular; it still goes off for hours, and nobody has been jailed for the incessant blackouts. While we are not done with these, they are still talking on another increment, they are purely insensitive, and it does not show an innovative government.”

Meanwhile, a member of the Nigerian Economic Summit Group, Dr Ikenna Nwosu, said the past hikes were unjustified.

He said, “The past hike was not justified with any published data. The new hike is, thus, not justified. It has a negative impact on persons and businesses are very humongous. It is crippling, and will simply worsen the current double crises if cost of living crises and cost of doing business crises.

“For a country with plenty of power sources, Nigeria should have very cheap power.”

The Federal Competition and Consumer Protection Commission has directed MultiChoice Nigeria, the operator of DStv and GOtv, to maintain its current subscription prices pending the conclusion of an ongoing investigation into the company’s proposed tariff adjustment.

The consumer watchdog disclosed this in a statement signed by its Director of Corporate Affairs, Ondaje Ijagwu, on Thursday.

The directive follows MultiChoice’s request for an extension regarding its scheduled appearance before the commission over concerns surrounding its recurring price increases.

The regulator had earlier summoned MultiChoice’s Chief Executive Officer to appear before it on February 27 for an investigative hearing.

While the FCCPC granted the company’s request to postpone the session, it has now rescheduled the hearing for March 6, 2025, mandating the company’s CEO, relevant officers, and a comprehensive response to the inquiry.

“As part of this directive, MultiChoice is expressly instructed to maintain the existing price structure as of February 27, 2025, pending the commission’s review and final determination on the matter,” the statement read.

The FCCPC emphasised that the decision to freeze prices is aimed at preventing potential consumer exploitation during the investigation period.

MultiChoice had notified its customers on Monday of the impending price adjustment, citing a review of its pricing structure.

While the company stated that the changes were necessary to continue delivering world-class content, the development sparked concerns from subscribers.

Under the proposed adjustment, the DStv Compact package would be increased, while the Compact Plus and Premium bouquets would remain at N30,000 and N44,500, respectively.

In its notice titled “Price Adjustments for DStv and GOtv Packages,” the company said, “Dear Customer, please note that effective March 1, 2025, there will be a price adjustment on all DStv packages.

This is to enable us to continue offering our customers world-class homegrown and international content, delivered through the best technology.”

The FCCPC said it would provide further updates as the investigation progresses.

The Federal Competition and Consumer Protection Commission (FCCPC) has summoned MultiChoice Nigeria to explain its planned subscription price increase, scheduled to take effect on March 1, 2025.

The regulatory body, citing concerns over recurrent price hikes and potential market abuse, has scheduled an investigative hearing with MultiChoice Nigeria for February 27, 2025, at its headquarters.

According to the FCCPC, MultiChoice’s frequent unilateral price adjustments raise questions about fair market practices, particularly as the company reportedly applies different pricing models in other countries.

In arriving at the decision, the Commission invoked Sections 32 and 33 of the FCCPA, which empower it to investigate and address anti-competitive behaviors.

FCCPC warned that if MultiChoice fails to provide satisfactory justification for its pricing decisions, or found guilty of unfair market practices, regulatory penalties, sanctions, or corrective measures will be imposed to protect Nigerian consumers.

Additionally, the commission said it is working with the sector regulator and other agencies to ensure a competitive and fair digital broadcasting market in Nigeria.

With MultiChoice facing growing consumer dissatisfaction over its pricing strategies, the outcome of this hearing could shape future regulatory interventions in the pay-TV industry.

Subscribers of MultiChoice’s DStv and GOtv services will have to pay more for their packages as the the PayTV company has announced a price increase set to take effect from March 1, 2025.

In a statement issued to customers on Monday, the company cited the need to maintain the quality of its service as the reason for the price adjustment.

The statement, titled “Price Adjustments for DStv and GOtv Packages,” read, “Dear Customer, please note that effective 1 March 2025, there will be a price adjustment on all DStv packages. This is to enable us to continue to offer our customers world-class homegrown and international content, delivered through the best technology.”

This increase came nearly a year after the company’s last price review, reflecting rising operational costs.

MultiChoice attributed the hike to economic pressures, including the depreciation of the naira and high inflation, which have significantly impacted its business operations in Nigeria.

According to the new pricing structure, the DStv Compact bouquet will rise from N15,700 to N19,000, while the Compact Plus package will now cost N30,000. The Premium subscription will increase to N44,500.

For GOtv subscribers, those on the GOtv Jinja package will now pay N3,900, up from N3,600. The GOtv Plus package will increase from N4,850 to N5,800, while GOtv Max will now cost N8,500. The GOtv Supa and Supa Plus packages will be priced at N11,400 and N16,800, respectively.

MultiChoice has consistently defended its price adjustments, pointing to economic realities that have made running its services in Nigeria more expensive. The company maintained that the price review is necessary to sustain its offerings and ensure continued access to quality content.