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Federal Govt Secretly Raises Electricity Tariff

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Unknown to most Nigerians, they are now paying higher for electricity after the authorities quietly raised the tariff without notifying consumers of the product.

The media on Friday reports that the slight electricity tariff adjustment in September points to the confirmation of plans by the federal government to withdraw its subsidy payment in the sector.

A discreet investigation by the media uncovered a clandestine tariff adjustment which key industry sources say was effected to gauge reactions from the public.

Though inquiry sent to Usman Arabi, spokesman of the Nigerian Electricity Regulatory Commission (NERC) to confirm the development was not responded to, the media Friday’s findings show that a 2 per cent hike was effected in September.

Our source said the adjustment became inevitable as government can no longer sustain the subsidy payment.

“The hike is infinitesimal because it was not intended to draw any attention, and it is deliberate and would continue at that level so as not to choke consumers, but it will certainly be a periodic review,” our source said.

Government has claimed that its subsidy payments in the electricity sector is well over N30 billion monthly.

Vice President Yemi Osinbajo had, at the opening of the 14th Nigerian Association for Energy Economics (IAEE) Conference in Abuja, recently, said the government expected the electricity sector to generate its revenue from the power sector market.

Speaking through the special adviser to the president on infrastructure, Ahmed Zakari, he said, “The Federal Government intends to reduce its interventions in the power sector and thus allow the electricity market to run on its own, thereby allowing the market participants to determine the course of action.”

Going by what Osinbajo said, with such consideration to scrap electricity subsidy from next year, Nigerians would have to pay more for the commodity under a new tariff arrangement to be unveiled by the federal government.

Osinbajo noted that government would be investing over $3 billion in the coming years to improve transmission and distribution infrastructure across the country.

He explained that the effort of President Muhammadu Buhari’s administration to reform the energy sector would ensure that it continues to play critical roles in the growth of the country’s social and economic wellbeing.

He said: “Electricity tariff reforms with service-based tariff has led to collections from the electricity sector by 63 per cent, increasing revenue assurance for gas producers and stabilising the value chain.

“It is anticipated that all electricity market revenues will be obtained from the market, with limited subsidy from next year as reforms in metering and efficiency with the DisCos (distribution companies) to improve.

“To accelerated investment in transmission and distribution, over $3 billion will be put into this sub-segment of the electricity value chain that will put us on the path to delivering 10 gigawatts through the interventions of the Central Bank of Nigeria/Siemens partnership, World Bank and Africa Development Bank, and others.”

The federal government and Labour had gone into extensive discussions prior to the implementation of the Service-based Tariff in November 2020, where the electricity regulator (NERC) had promised improvement in service delivery to Nigerians.

The highest peak generation of electricity for the month of September was 4,694 Megawatts (MW), including electricity exports, and what was available for Nigerians in-country came down to 3,863MW, a far cry from the 30,000MW demand for electricity in the country

Essentially the country is providing roughly 11 per cent of the citizens’ demand for electricity despite huge government interventions in the power sector.

At the recent NERC-stakeholders’ forum, concerns were raised about the power sector moving backwards rather than forging ahead going by the too many policy inconsistencies.

Nigeria has one of the poorest supplies of electricity despite the power sector contributing 78 per cent to GDP growth for Q2 2021.

Chairman of the Nigeria Electricity Consumers Advocacy Network (NECAN),Tomi Akingbogun,  deplored the nature of the hike, describing it as fraudulent.

He said, “This is unfortunate and deceitful. No nation can develop based on deceit. Manufacturers need to capture their costs well to make profit so as to continue to produce.

“If costs are increased and hidden, the company will lose and close down, thereby increasing unemployment and reducing gross domestic product (GDP), etc.

“NERC needs to be run by people who understand the dynamics of the economy. NERC, at present, are not fair judges.”

Akingbogun, further said, “We all noticed this some months ago, the whole country cannot be deceived.”

Also, a vendor with one of the DisCos confirmed to our correspondent that an increase was actually made last month and that customers who patronise her observed the slight adjustment.

“I am aware and customers have been confronting me, but I have to let them know that there is a little adjustment following improvements in supply. That’s what I can tell you for now,” she said.

The Nigeria Labour Congress (NLC) has vowed to deploy the industrial mechanisms granted in labour laws for the defence of workers’ rights to resist increase in electricity tariff.

Equally, NLC President Ayuba Wabba had in July warned against a speculated plan to grant approval to DisCos to hike electricity tariff.

While the speculation was rife, Wabba said, “It is in the light of this that we dismiss the ongoing speculation on increase in electricity tariff as mere speculation.

“We, however, find it prudent to put you on notice should government make true the swirling speculation by approving an increase in electricity tariff, Organised Labour will be left with no option than to deploy the industrial mechanisms granted in our laws for the defence of workers’ rights.”

Wabba said that NLC had written to remind the minister that Organised Labour on September 28, 2020, through the Federal Government/Organised Labour Committee on electricity tariff, agreed to freeze further increases in tariff until it concludes its work and its report adopted by all the principals in the committee.

In his own reaction, convener of PowerUp Nigeria, Adetayo Adegbemle, said since privatisation, Nigeria has continuously bent over to the demands of the private operators without experiencing any notable improvement in the fortunes of Nigeria’s power sector, except the demands for tariff increase.

He lamented that despite all the several tariff increments, there has not been improvement in service delivery.

“The investors have not done well to keep to their end of the bargain, and the truth is that nobody trusts them enough to want to gamble on more time.

“There is no amount of money thrown at the power sector that will resolve the problems, as the power sector challenge is not a money problem,” he said.

Culled from the Leadership News Nigeria

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Houston and Owerri Community Mourn the Passing of Beloved Icon, Lawrence Mike Obinna Anozie

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Houston was thrown into mourning on September 19, 2025, following the sudden passing of businessman and community advocate Lawrence Mike Obinna Anozie, who peacefully joined his ancestors. Immediate family member in Houston, Nick Anozie, confirmed his untimely death and expressed gratitude for the outpouring of love and condolences from both the Houston and Owerri communities.

Lawrence was born to Chief Alexander and Lolo Ether Anozie of Owerri in Imo State, Nigeria, and will be dearly remembered by family members, friends, and the entire Houston community.

An accomplished accountant, the late Lawrence incorporated and successfully managed three major companies: Universal Insurance Company, LLC, Universal Mortgage LLC, and Universal Financial Services. Through these enterprises, he not only built a thriving business career but also created opportunities for countless individuals to achieve financial stability. His contributions to entrepreneurship and community development will remain a lasting legacy.

According to the family, arrangements for his final funeral rites are in progress and will be announced in due course.

Lawrence will forever be remembered as a loving and compassionate man who dedicated much of his life to uplifting others. He helped countless young Nigerians and African Americans overcome economic challenges by providing mentorship, financial guidance, and career opportunities. His generosity touched the lives of many who otherwise might not have found their footing. A devout Catholic, he was unwavering in his faith and never missed Mass, drawing strength and inspiration from his church community. To those who knew him, Lawrence was not only a successful businessman but also a pillar of kindness, humility, and faith whose legacy of service and compassion will continue to inspire generations.

For more information, please contact Nick Anozie – 832-891-2213

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Enugu Revenue Leader Details Tax Plans, Commits to Responsible Fund Management

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In a bid to address rising public concerns and social media speculations about taxation in Enugu State, the Executive Chairman of the Enugu State Internal Revenue Service (ESIRS), Emmanuel Nnamani, has provided clarifications on the government’s tax policies. During a press briefing in Enugu, Nnamani dismissed what he described as “false and misleading claims” and reassured residents that the government’s fiscal operations are firmly rooted in law, transparency, and public good.

Clarifying Misinformation and Affirming Legality

Nnamani opened the session by stressing that no taxes or levies in Enugu State are imposed outside the provisions of the law. “Taxes and revenues in Enugu State remain within the limits of the law. We do not impose any levies outside what the law permits,” he stated, pointing to the Personal Income Tax Act (as amended) as the guiding legal framework.

He explained that the ESIRS collects personal income tax through two lawful means: Pay-As-You-Earn (PAYE) for those in formal employment, and Direct Assessment for informal sector workers. While compliance among salaried workers has been largely smooth, the agency sometimes employs legal enforcement mechanisms to ensure compliance among self-employed individuals.

Formalising the Informal Sector

A key challenge, he noted, has been bringing the informal sector—especially market traders and transport operators—into the formal tax net. Upon assuming office, his administration discovered that an overwhelming 99% of informal sector actors were not remitting taxes to the state, largely due to the disruptive influence of non-state actors engaged in illegal collections.

In response, the government introduced a consolidated ₦36,000 annual levy for market traders. This amount, payable between January and March, covers all relevant state-level charges, including those by the Enugu State Waste Management Agency (ESWAMA), Enugu State Structures for Signage and Advertisement Agency (ENSSAA), storage fees, and business premises levies. “Once this amount is paid between January and March, the trader owes nothing else for that year,” Nnamani clarified. Traders who fail to pay by March 31 are subject to enforcement.

For street vendors operating outside structured markets, an annual levy of ₦30,000 applies, with ESWAMA charges handled separately. Transport operators such as Okada riders, Keke drivers, minibuses, tankers, and trucks pay via a daily ticketing system.

A Human-Faced Approach to Enforcement

Although the law allows for a 10% penalty on unpaid tax and an interest charge tied to the Central Bank’s Monetary Policy Rate of 27.5%, Nnamani disclosed that the state has adopted a softer, pro-business approach. Instead of the full punitive charges, a flat ₦3,000 penalty is applied in most informal sector cases to promote ease of doing business and encourage voluntary compliance.

Taxation and the Cost of Rent

Addressing growing concerns over rising rent, Nnamani rejected claims linking the trend to state tax policies. He described the issue as a national challenge influenced by supply and demand, rather than fiscal policy.

Citing personal experiences dating back to 2015, he observed that a shift in private development preference – from rental apartments to gated residential estates – has contributed to the housing squeeze. “If we had more high-rise buildings, rent would drop,” he noted. The state government, he added, is taking proactive steps through the Ministry of Housing and Housing Development Corporation to build mass housing and student hostels near institutions like ESUT and IMT, freeing up central city housing and helping moderate rents.

Technology, Transparency, and Trust

In line with its commitment to transparency and digital innovation, the ESIRS has launched a tax calculator on its official portal – www.irs.en.gov.ng – allowing residents to compute their taxes with ease and clarity. “This is about transparency and giving our people confidence,” he said, inviting residents to compare Enugu’s tools with those in more advanced states like Lagos.

Understanding the Cost of Development

Responding to concerns that Enugu has become one of Nigeria’s most expensive states, Nnamani acknowledged the perception but clarified that the temporary inflation is largely demand-driven. With Enugu undertaking widespread infrastructural renewal – including smart schools, primary health centres, and hospitality infrastructure – the surge in construction activity has led to increased demand for building materials like granite and rods, which are sourced from other states.

“Once these projects are completed, demand will drop, and prices will stabilise,” he assured. He emphasised that the projects are visible testaments to what taxpayers’ money can achieve when properly managed.

A Call for Mutual Understanding and Civic Partnership

More than a tax clarification, Nnamani’s address served as a reminder of the symbiotic relationship between citizens and government. He appealed for public understanding, noting that when citizens fulfil their tax obligations, the government can, in turn, provide essential services and infrastructure that uplift everyone.

His message was clear: responsible taxation, managed transparently and invested wisely, is the bedrock of sustainable development. From roads to schools and healthcare to housing, Enugu State is demonstrating how taxpayers’ money, when efficiently deployed, can improve lives and build the future.

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The Leadership Deficit: Why African Governance Lacks Philosophical Grounding

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Leadership across nations is shaped not only by policies but by the quality of the individuals at the helm. History has shown that the most transformative leaders often draw from deep wells of ethical, philosophical, and strategic thought. Yet, in many African countries—and Nigeria in particular—there appears to be a crisis in the kind of men elevated to govern. This deficit is not merely political; it is intellectual, philosophical, and deeply structural.

There is a compelling correlation between the absence of foundational wisdom and the type of leaders Nigeria consistently produces. Compared to their counterparts in other parts of the world, Nigerian leaders often appear fundamentally unprepared to govern societies in ways that foster justice, progress, or stability.

Consider the Middle East—nations like the UAE and Qatar—where governance is often rooted in Islamic principles. While these societies are not without flaws, their leaders have harnessed religious teachings as frameworks for nation-building, modern infrastructure, and citizen welfare. Ironically, many of Nigeria’s military and political leaders also profess Islam, yet the application of its ethical standards in public governance is nearly non-existent. This raises a troubling question: is the practice of religion in African politics largely symbolic, devoid of actionable moral guidance?

Take China as another case study. In the last four decades, China’s leadership has lifted over 800 million people out of poverty—an unprecedented feat in human history. While authoritarian in structure, China’s model demonstrates a deep philosophical commitment to collective progress, discipline, and strategic long-term planning. In Western democracies, especially post-World War II, leaders often emerged with strong academic backgrounds in philosophy, economics, or history—disciplines that sharpen the mind and cultivate vision.

In stark contrast, African leaders—particularly in Nigeria—are more often preoccupied with short-term political survival than long-term national transformation. Their legacy is frequently one of mismanagement, unsustainable debt, and structural decay. Nigeria, for example, has accumulated foreign loans that could take generations to repay, yet there is little visible infrastructure or social development to justify such liabilities. Inflation erodes wages, and basic public services remain in collapse. This cycle repeats because those in power often lack not just technical competence, but the moral and intellectual depth to lead a modern nation.

At the heart of the crisis is a lack of philosophical inquiry. Philosophy teaches reasoning, ethics, and the nature of justice—skills that are essential for public leadership. Nigerian leaders, by and large, are disconnected from such traditions. Many have never seriously engaged with political theory, ethical discourse, or economic philosophy. Without this grounding, leadership becomes a matter of brute power, not enlightened governance.

The crisis of leadership in Africa is not solely one of corruption or bad policy—it is one of intellectual emptiness. Until African nations, especially Nigeria, begin to value and cultivate leaders who are intellectually rigorous and philosophically grounded, the continent will remain caught in cycles of poverty and poor governance. True leadership requires more than charisma or military rank—it demands the wisdom to govern a society with justice, vision, and moral clarity. Without this, the future remains perilously fragile.

♦ Dominic Ikeogu is a social and political commentator based in Minneapolis, USA.

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