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Power tariffs reversal push by Labour hits brickwall

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  • Panel members disagree on gas subsidy for GenCos
  • Keyamo: we are making progress

Labour’s push for the reversal of hike in electricity tariffs may have hit the brickwall.

This is because of the high cost of gas – the critical component used by the Generating Companies (GenCos) to power their plants.

The GenCos sell power to the Distribution Companies (DisCos) which take it to the end-users.

Highly-placed sources close to the committee set up by the Federal Government to look into the pricing of electricity said there has been no agreement among committee members as to whether gas is subsidised or not.

Labour threatens to call workers out on strike to protest last month electricity tariffs.

The setting up of a seven-man committee to review the electricity tariffs is the product of negotiation to starve off the industrial action.

The government also compelled the DisCos to put on hold for two weeks, the new tariffs to enable the committee to meet and submit a report.

The deadline for the committee expires this weekend.

The Technical Committee is made up of Minister of State for Labour and Employment Festus Keyamo, (Chairman); Minister of State Power, Godwin Jedy-Agba – member; Chairman, National Electricity Regulatory Commission, Prof. James Momoh – member and the Special Assistant to President Muhammadu Buhari on Infrastructure, Ahmad Rufai Zakari as Secretary.

Others are: Dr. Onoho’Omhen Ebhohimhen – member (NLC); Deputy President of the NLC and Secretary-General, Nigeria Union of Electricity Employees (NUEE), Comrade Joe Ajaero – member; Comrade Chris Okonkwo – member (TUC) and a representative of Power Distribution Companies (DisCos) – member.

It was gathered that one of the recommendations on the table is a further halt in the implementation of the new tariffs beyond the  two weeks.

The source said: “We have not really concluded. We will conclude this week, but the conclusion of the work of the committee this weekend cannot give us what Nigerians are looking for. It is not a factor that you just wake up and say it is this amount and it is not this amount. There are some other determinants.

“Let me give you this without making reference to the work of the committee. The greater chunk of the money is spent on gas. Gas is their main source of generation. They had to now dollarise gas before they now price it at the GenCos.

“If GenCos now allegedly buy gas in dollar, then they now pass the dollar price to consumers.

“If we are able to address this matter by looking at policy directives especially on gas pricing, if we go through that process, then definitely we are going to puncture the issue of tariff no matter what they are going to pay.

But where we are having serious divergence is on the issue of whether actually there was  subsidy. Some of us said there is no subsidy but the government is claiming there is subsidy.

“These are still not things you can do within two weeks. So, the work of the committee may take more time to look at it critically. We are trying to see if there is anything we can do in order to submit our report within two weeks deadline.

“But the job that will lead to a reversal is not a job of two weeks. Some of them require policy direction.

“We will revert to the house at the end of the two weeks to submit our report. If they succeed on sitting in this freeze (suspend the implementation of the tariff) until the final report is done, fine.

“If we are able to get this minor relief until the final report is done, fine. That is what we are working on for now. We are still working but we have not fully agreed on anything to push out to the people now.”

The source said the two weeks given to the committee to work on the issue was not enough.

“We are working tomorrow through the weekend. We have done a lot of reading and consultations with stakeholders. We need to tidy up our report and submit and take another directive.

“You can’t do within two weeks and say reverse. If you know how  these people are buying gas, the question will be — should they buy it at this rate? We will find out. We also need to look at the policy in the oil and gas sector in terms of dollarising gas before.

On the need to further suspend the implementation of the new tariff, another source said: “Those are things we have not agreed upon. These things are on the table, options are on the table. Before the weekend we will concretise those options.

“Even those things you are saying now we have not agreed on them until they are ratified by our bosses. But options are on the table.”

Keyamo declined to comment on the work of the committee when contacted last night.

He said: “We are making progress. When the larger house meets, most likely this weekend, the details of the communique may be made known but like I said we are making progress, the details I cannot reveal now but we are making progress.”

The Seven-man Technical Sub-committee to review the increase in electricity tariff by the Federal Government was inaugurated on September 28.

The committee had its first sitting at the minister’s conference room last month.

The committee was set up at the end of a marathon meeting between the Federal Government and organised labour to avert last month’s planned strike.

The committee is expected to examine the justifications for the new policy in view of the need for the validation of the basis for the new cost reflective tariff as a result of the conflicting information from the field which appeared different from the data presented to justify the new policy by NERC and metering deployment challenges.

The other mandates of the committee are as follows:

  • To look at the different Electricity Distribution Company (DISCOs) and their different electricity tariff vis-à-vis NERC order and mandate.
  • Examine and advise government on the issues that have hindered the deployment of the six million meters.
  • To look into the NERC Act under review with a view to expanding its representation to include organised labour.
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Opeifa Defends Rail Reforms, Unveils Nationwide Expansion Roadmap

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Opeifa maintained that derailments are not peculiar to Nigeria, noting that such incidents occur across advanced rail systems globally.

“Derailments are regular occurrences in the rail sector worldwide. In February alone, there were incidents in countries like Britain and others. Around the same time we experienced one, there were multiple derailments across the world,” he said.

He disclosed that in 2025, Nigeria recorded three major derailments:
• August 26 at Asham in Kaduna State
• November 1 at Abraka on the Warri–Itakpe line
• November 8 at Agbor on the same corridor

He said the NRC responded swiftly, restoring services within 24 hours in one case, while others were resolved within 21 and 28 days respectively.

Opeifa stressed that derailments can result from factors such as weather conditions, signal glitches, human error, speeding, or aging infrastructure, but noted that in Nigeria’s recent cases, there were no fatalities.

“These incidents are preventable and efforts are ongoing to minimize them. However, they should not be seen as major setbacks to the overall progress of the railway system,” he said.

On Allegations of Mismanagement

Addressing allegations of financial mismanagement within the corporation, Opeifa declined detailed comments, citing ongoing legal processes.

“When a matter is in court, it is sub judice. Allegations of corruption or mismanagement should be handled by the appropriate authorities,” he stated.

He reiterated that his priority is to reposition the NRC in line with global best practices and ensure efficient rail services for Nigerians.

Expansion, Upgrades and National Connectivity

The NRC boss said efforts are underway to restore damaged coaches and upgrade infrastructure using local engineers and technicians.

“We are bringing back the lines and retrofitting coaches. The Warri–Itakpe line is operational. The Abuja–Kaduna line is running, and we are increasing trips from two to three,” he said.

On long-term plans, Opeifa disclosed that the NRC roadmap envisions rail connectivity across major cities nationwide, subject to funding and phased execution.

He dismissed claims of abandoned projects, explaining that rail developments are capital-intensive and implemented in phases based on available resources.

He cited progress on the Lagos–Ibadan corridor—part of the larger Lagos–Kano project—as well as ongoing work on the Kano–Maradi line linking key northern cities.

Lagos–South-East, Port Connections in View

Opeifa also highlighted plans to expand connectivity between southern ports and inland cities. These include proposed links from Warri to Abuja and from Lekki Deep Sea Port to Kajola, Benin, Onitsha, and Aba, enabling both passenger and cargo movement.

Toward Modern Signaling and Faster Trains

On modernization, he said Nigeria is gradually upgrading from older narrow-gauge systems to standard-gauge infrastructure with improved signaling technology.

He noted that metro rail projects in Kaduna, Kano, and Lagos are being developed with higher signaling standards, positioning the country for faster and more efficient train services in the coming years.

“We are not yet at the highest global level, but we are moving steadily upward,” Opeifa said.

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Ticket Reform Boosts Confidence in Lagos–Ibadan Rail Service, Says Opeifa

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A quiet transformation is reshaping the daily commute between Nigeria’s commercial hub and the historic city of Ibadan. Passengers on the Lagos–Ibadan standard gauge corridor say services have become more efficient and predictable following a clampdown on ticket racketeering led by Kayode Opeifa

The renewed confidence in the rail line linking Lagos and  is influencing residential and employment decisions among middle-income earners who once considered daily intercity commuting unrealistic.

“It is now possible to live in Ibadan and work in Lagos without the daily anxiety of securing a ticket,” said Adewale Bamidele, a financial analyst who travels three times a week. “Before, you needed connections. Now, you book, you board, you arrive.”

A Line Once Hindered by Middlemen

The Lagos–Ibadan railway, inaugurated as a flagship infrastructure project under the administration of former President Buhari was designed to ease pressure on the congested Lagos–Ibadan Expressway and deepen economic integration across the South-West.

However, in its early phases, passengers frequently complained of informal ticket rackets. Allegations included bulk-buying by intermediaries and artificial scarcity that forced travellers to pay inflated prices for seats on high-demand trains.

Industry observers say such practices undermined the railway’s credibility as a mass transit solution. “Transport systems thrive on predictability and fairness,” said a transport economist “Once access is perceived as compromised, commuters revert to road transport despite the risks and delays.”

Enforcement and Digitisation

Since assuming oversight responsibilities within the sector, Opeifa has reportedly intensified internal monitoring and strengthened digital ticketing protocols. Railway officials, speaking on condition of anonymity, said stricter verification processes and disciplinary measures against errant staff have curtailed unauthorised ticket sales.

Although the Nigerian Railway Corporation has not released detailed enforcement data, anecdotal evidence from regular commuters points to shorter queues, smoother boarding procedures and fewer last-minute cancellations.

For professionals with flexible work schedules, the improvement has been significant. The average journey time of about two to three hours—depending on the service type—now compares favourably with unpredictable road travel, which can take considerably longer during peak traffic.

Changing Urban Dynamics

Property agents in Ibadan report a modest rise in enquiries from Lagos-based workers seeking more affordable housing. Rents in many parts of Ibadan remain significantly lower than comparable neighbourhoods in Lagos, offering relief to households grappling with inflationary pressures.

“Rail reliability changes everything,” said Funke Adebayo, a real estate consultant in Ibadan. “When people trust the timetable, they are more willing to relocate.”

Economists caution, however, that long-term success will depend on consistent maintenance, adequate security along the corridor and transparent ticketing systems. Any return to informal practices could quickly erode recent gains.

The Lagos–Ibadan corridor is widely regarded as a litmus test for Nigeria’s broader rail ambitions. With additional standard gauge projects planned or underway nationwide, policymakers face mounting pressure to ensure that infrastructure investments translate into reliable public service delivery.

For now, passengers remain cautiously optimistic.

“It feels more organised,” Bamidele said while disembarking at Mobolaji Johnson Station in Lagos. “If this standard is sustained, rail can genuinely compete with road transport.”

Nigeria agree, the real challenge lies not just in laying tracks, but in sustaining public trust.

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Breaking : Finance Ministry Shake-Up: Tinubu Nominates Oyedele, Says Onanuga

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President Bola Tinubu has nominated the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Dr. Taiwo Oyedele, as the Minister of State for Finance.

Oyedele replaces Dr. Doris Anite-Uzoka, who has been redeployed to the Ministry of Budget and National Planning as Minister of State, her third portfolio in the administration.

The President on Tuesday conveyed Oyedele’s nomination to the Senate for confirmation in a letter to the Senate President, Godswill Akpabio, according to a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, on Tuesday.

Until Tinubu nominated him as a minister, Oyedele from Ikaram, Akoko, Ondo State, was the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, which overhauled Nigeria’s tax system.

The 50-year-old is an economist, accountant, and public policy expert who led the comprehensive overhaul of Nigeria’s tax system through the Presidential Committee on Fiscal Policy and Tax Reforms.

The committee, inaugurated in August 2023, delivered four executive bills that consolidated over 60 taxes into fewer than 10 statutes and introduced significant reforms, including zero income tax for Nigerians earning N800,000 annually or less.

The Tax Reform Acts, which became effective on January 1, 2026, also exempted small businesses with turnover below N50m from company income tax, capital gains tax, and development levy.

Other provisions include a 50 per cent tax deduction for companies hiring new workers for three years, a 50 per cent deduction for wage increases to the lowest-paid employees, and a five-year corporate tax holiday for agricultural enterprises.

Oyedele attended Yaba College of Technology, where he obtained a Higher National Diploma in Accountancy and Finance, before proceeding to Oxford Brookes University for a BSc in Applied Accounting.

He also completed executive education programmes at the London School of Economics, Yale University, the Gordon Institute of Business Science, and the Harvard Kennedy School.

Oyedele spent 22 years at PricewaterhouseCoopers, joining in 2001 and rising to become the Fiscal Policy Partner and Africa Tax Leader before his appointment to head the tax reform committee.

He is currently a professor at Babcock University in Ogun State and a visiting scholar at the Lagos Business School.

As Minister of State for Finance, Oyedele is expected to oversee the implementation of the tax reforms he championed, particularly as the government seeks to improve revenue generation and deepen economic reforms.

Anite-Uzoka, who is being redeployed to the Ministry of Budget and National Planning, previously served as Minister of State for Industry, Trade and Investment before her appointment as Minister of State for Finance.

The Senate is expected to screen and confirm Oyedele’s nomination in the coming weeks, following which he will be sworn in to assume his ministerial duties.

The Finance Ministry, currently led by Wale Edun as substantive minister, oversees fiscal policy, revenue mobilisation, debt management, and economic planning.

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