Business
Power Distributors Owe NERC, NBET, TCN N205.51bn

Power distribution companies are not only indebted to their counterparts in the electricity generation arm of the sector, they also owe service providers a total of N205.51bn.
The service providers in the power sector are the Nigerian Electricity Regulatory Commission, the Nigerian Bulk Electricity Trading Plc, the Transmission Service Provider, the System Operator and the Market Operator.
The TSP, SO and MO are different arms of the Transmission Company of Nigeria.
Figures contained in the August 2018 report, presented by the MO to industry operators at the recent power sector stakeholders’ meeting, showed that the indebtedness of the Discos to service providers had been accumulating since the commencement of the Transitional Electricity Market.
The market (TEM) became operational on January 1, 2015, and its commencement led to the implementation of all contractual obligations in the privatised power sector.
The MO, in its report, which was obtained by our correspondent from the Federal Ministry of Power, Works and Housing in Abuja on Friday, stated that the N205.51bn was the total indebtedness of the Discos to NERC, NBET and the TCN, from January 2015 to June 2018.
A further analysis of the report showed that the 11 Discos were indebted to the service providers.
Yola Disco’s N2.24bn debt, according to the MO, was the least among the debtors, while Abuja, Ibadan, Enugu, Kaduna and Port Harcourt Discos owe N26.48bn, N22.64bn, N21.95bn, N19.31bn and N19.14bn, respectively.
The Managing Director, TCN, Usman Mohammed, stated that the power distribution companies were withholding money meant for the expansion of the nation’s electricity transmission network.
According to him, the poor remittances from the Discos had made the country’s transmission company the most vulnerable arm of the power value chain in Nigeria.
Mohammed stated that if not for grants and loans from multilateral donors, the transmission company would not be able to expand its network.
He said, “If you look at the power sector, the TCN is the most vulnerable organisation. Why did I say that? I say that because the Discos are collecting our money and they keep all they want to keep and give the sector whatever they like.
“Power generation companies are covered by what they call payment assurance from the Federal Government which is about N701bn. The only arm of the sector that is not taken care of is the TCN and that is why we are the least paid in the industry.”
Mohammed added, “So, we had to go to multilateral donors like the World Bank to raise money for the expansion of the network. But you know you can’t use this money for operation. You cannot go to the World Bank and get money for running your system.
“The money you can get is for the expansion of your network, for hard investments. They can’t give you money for running your operations. So, this is the situation.”
But the Discos, through their spokesperson, Sunday Oduntan, argued that the fundamental problem in the sector currently was the electricity tariff gap.
He explained the gap as “the gap between what the government has specified as the price of the electricity that we distribute or retail and the true cost of the product.
“It is this gap that has solely contributed to the excess of N1.3tn that the Discos are carrying on their financial books, an impediment to both the sustainability of the electricity market and the ability of the investors to meet the obligations.”
Oduntan added, “Of important note is that we are not advocating or imposing a tariff increase on electricity consumers, some of whom are already dealing with affordability issues. We are stating that the mandated tariff gap is a responsibility of the government and should be addressed by the government, so that Nigerians can receive the improved electricity delivery service that they deserve.”
He also stated that the tariff gap was solely responsible for the debt, which the Discos owed power generation companies.
Business
USTR Criticises Nigeria’s Import Ban On Agriculture, Others
The United States Trade Representative (USTR) has criticised Nigeria’s import ban on 25 categories of goods, claiming that the restrictions limit market access for American exporters.
This is the effect of President Donald Trump’s tariffs introduction on goods entering the United States, with Nigeria facing a 14 per cent duty.
The USTR highlighted the impact of Nigeria’s import ban on various sectors, particularly agriculture, pharmaceuticals, beverages, and consumer goods.
The restrictions affect items such as beef, pork, poultry, fruit juices, medicaments, and alcoholic beverages, which the United States sees as significant barriers to trade.
The agency argues that these limitations reduce export opportunities for United States businesses and lead to lost revenue.
“Nigeria’s import ban on 25 different product categories impacts United States exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods.
“Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit United States market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for United States businesses looking to expand in the Nigerian market”, the agency said .
In 2016, Nigeria implemented the ban on these 25 items as part of efforts to control imports and stimulate local production.
Some of the banned items include poultry, pork, refined vegetable oil, sugar, cocoa products, spaghetti, beer, and certain medicines.
On March 26, 2025, the Federal Government also announced plans to halt solar panel imports to encourage local manufacturing as part of its push for clean energy.
Business
Expert Seeks Cooperative-Driven Investments In Agriculture
A leading agribusiness strategist and digital agriculture expert, Ayo Oluwa Okediji, has sought cooperative-driven investments in sustaining growth of poultry industry in Nigeria.
He said the poultry industry was at a defining moment and requires urgent structural reforms to secure its future and ensure long-term sustainability.
Speaking on the theme, “Strengthening Poultry Farming Through Cooperative Synergy and Strategic Investments”, at the recently concluded Oyo Mega Poultry Workshop 2025 in Ibadan, Okediji called on poultry farmers, cooperative leaders, financial institutions and policy makers to rethink the existing structure of the poultry sector.
He stressed the need to transition from fragmented, individually-driven operations to well-structured, cooperative-led enterprises capable of attracting sustainable financing and securing long-term viability.
He said, “Our poultry sector cannot thrive on individual effort alone. We need to organise ourselves into cooperative clusters, build strong governance systems and position ourselves to attract the level of investment needed to sustain this industry beyond this generation.”
Drawing on lessons from successful global cooperative models such as Rabobank in the Netherlands and Landus Cooperative in the United States, Okediji introduced the FarmClusters Poultry Model, a locally adapted solution developed by Agribusiness Dynamics Technology Limited (AgDyna), a subsidiary of AgroInfoTech Africa.
According to him, the model is currently being piloted in Oyo State in partnership with PANOY Agribusiness Limited and local poultry cooperatives.
Business
NACCIMA Proposes Hybrid Oil Palm Seedlings For Farmers
The Rivers State Representative of the Nigeria Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), Mr. Erasmus Chukwundah, has urged palm oil farmers to consider hybrid seedlings for planting, if they must break even in palm oil business.
Chukwundah said this recently at the Free Oil Palm Business Climate Smart Best Management Practice/Assistance Training organized by Partnership Initiative In Niger Delta (PIND) for Palm Oil Farmers in Elele, Ikwerre Local Government Area.
The Rivers representative said until palm oil farmers begin to consider such hybrid oil palm seedlings, they may not meet up with the daily increasing demand of palm oil in the market.
According to him, the seedlings produce up to 30 bunches at once that ripen same time.
He said PIND decided to partner with Oil Palm Growers Association of Nigeria (OPGAN) to ensure that the message was received by the targeted audience.
According to him, palm oil remained a popular choice of industry operators as it could be converted to many other products such as vegetable cooking oil.
He also noted that products such as motor tyers, marine ropes and others are now gotten from the palm tree.
Chukwundah, who is the immediate past Director-General of Port Harcourt Chamber of Commerce, Mines, Industries, and Agriculture (PHCCIMA), further warned against use of unrecommended fertilisers in growing oil palms.
He noted that such practices could limit its export value or chances as the foreign marketers have a way of detecting such .
He reiterated the need for organic fertilizers, including poultry droppings, to enable them have a natural palm oil.
“People must reduce physical contact with palm oil production. That is why we are campaigning for hydrolic oil mills. The foreign markets are no longer interested in crude method of palm oil production”, he said.
Meanwhile, one of the farmers, Sonny Didia, who appreciated Chukwundah’s commitment towards the concern of farmers, appealed for an urgent need for loan opportunity with low interest rate in order to enable them beat the target.
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