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DisCos set to hike electricity tariffs in July—- to reflect new economic realities

Eyewitness reporter

 For the umpteen times, Nigerians have been asked to brace up for yet another increase in  electricity tariffs as the Nigerian Electricity Regulatory Commission (NERC) is set to review upwards the MYTO.
MYTO , the Multi-Year Tariff Order, is used by NERC as a framework for determining tariffs that is cost reflective and incentive -based.
According to the industry regulatory agency, there would be
another tariff review for the 11 distribution companies (DisCos) in the country.

NERC, in the  notice  on its website on Monday,  said the extraordinary tariff review is as a result of changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure.

The commission stated that the review is expected to begin in July.

“The MYTO provides for Minor Reviews (every 6 Months), Major Reviews (every 5 years), and Extraordinary Tariff Reviews in instances where industry parameters have changed from those used in the operating tariffs to such an extent that a review is urgently required to maintain the viability of the industry,” NERC said.

“Further to the above, the Commission held series of Public Hearings and stakeholder consultations in the first quarter of 2020 on the Extraordinary Tariff Review Applications of the eleven (11) electricity distribution companies (“DisCos”) to consider their respective 5-year Performance Improvement Plans (“PIPs”).

“Accordingly, this notice is issued to inform the general public and industry stakeholders of the Commission’s intention to: Conclude the Extraordinary Tariff Review process for the eleven DisCos; Commence the processes for the July 2021 Minor Review of MYTO – 2020 to consider changes in inflation, foreign exchange, gas prices, available generation capacity, and CAPEX required to evacuate and distribute the said available generation capacity in accordance with EPSRA and other extant industry rules.

“This notice is hereby issued in compliance with the provisions of EPSRA, the Business Rules of the Commission and the Regulations on Procedures for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry to solicit for comments from the general public on the proposed reviews.

“Stakeholders and the general public are invited to send their comments to the Commission within 21 days from the date of this publication.”

In November 2020, DisCos began the implementation of a service-based reflective tariff (SRT) structure nationwide after receiving approval from President Muhammadu Buhari.

A month after, the NERC approved an increase in electricity tariff across the country beginning from January 1 — with the exception of customers who are being served less than an average of 12 hours per day in a given month.

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Customs

Customs complies with ministry’s directive, seeks alternative funding of its services after suspension of 4 percent FOB levy

Funso OLOJO
The Nigeria Customs Service has said it was engaging the Federal ministry of Finance, its supervisory ministry, to seek guidance on alternative measures following the suspension of the 4 percent Free-on- Board (FOB) to ensure continuity of its services to Stakeholders
It could be recalled that the Finance ministry gave a marching order to NCS to halt the implementation of the controversial 4 percent FOB levy on imports.
However,acknowledging the receipt of the suspension order from the Finance ministry, the Customs, through a public statement,  said it  appreciates the Ministry’s engagement on this matter and remains committed to supporting government fiscal policies.
“The NCS remains optimistic about ongoing discussions with the Federal Ministry of Finance and other relevant stakeholders to address the concerns raised while ensuring that the Service’s statutory obligations are met effectively.
” We look forward to constructive engagement that will ultimately serve the best interests of the Federal Republic of Nigeria, enhance revenue generation, and support the nation’s economic growth objectives through efficient customs administration.
“It is also necessary to draw attention to ongoing media reports suggesting that the Service introduced the 4% FOB only recently.
“For clarity, the Service wishes to emphasise that the National Assembly established the 4% FOB provision through Section 18(1)(a) of the Nigeria Customs Service Act, 2023, which stipulates “not less than 4% of the free-on-board value of imports according to international best practices” as a statutory funding mechanism for the Service’s operations.
“The Service assures all stakeholders, including the trading public, licensed customs agents, and international partners, that our operations will continue without any disruption.
” We remain firmly committed to delivering efficient service, upholding international best practices and supporting Nigeria’s economic growth through effective revenue collection and enhanced trade facilitation” the statement concluded.
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Customs

FG orders Customs to suspend collection of 4 percent FOB levy 

Funso OLOJO 
For the second time, the collection of controversial 4 percent Free-on- Board(FOB) Levy on imported goods have been suspended.
This time, it was the Federal government through the Ministry of Finance, the supervising Ministry of the Nigeria Customs Service that ordered the suspension.
In a memo dated September 15th, 2025 and signed  on behalf of the Minister of Finance by one R.O Omachi, the Permanent Secretary, Special Duties and addressed to the Comptroller- General of Customs, Adewale Adeniyi, the government stated that extensive consultations with industry stakeholders and trade experts have revealed that the 4% FOB charge poses significant challenges to the Nigerian trade facilitation environment and economic stability.
The letter reads, “Pursuant to the powers vested upon the Honourable Minister of Finance and the Coordinating Minister of the Economy under Part Ill, Section 12 of the Nigeria Customs Service Act 2023 as the Chairman of the Board of Nigeri a Customs Services, I write to direct the immediate suspension of the implementation of the collection of 4% Free on Board (FOB) recently levied
by the Nigeria Customs Service on all imported goods.“Following extensive consultations with industry stakeholders. trade experts, and relevant government officiais, it has become clear that the implementation of the 4% FOB charge poses significant challenges to the Nigerian trade facil tation, environment and economic stability.

“Many importers and businesses have raised concerns about the increased financial burden this levy imposes, with potential adverse effects on inflation, trade competitiveness, and the overall business Climate in Nigeria.

“This suspension will provide an opportunity for comprehensive stakeholder engagement and & thorough review of the levy’s framework and its broader economic implications .

“The Ministry of Finance looks forward to working closely with the Service and all relevant parties to devise a more equitable and efficient revenue structure that susports both revenue generation and economic growth and stability.

“Ensure strict compliance. ‘,the memo concluded.

The first time the controversial Levy was suspended was in February 2025 when it was shortly introduced but the public outcry which greeted the introduction make the Customs management hastily suspended its implementation.
However, the Customs re- introduced the levy on August 4th, 2025.
Meanwhile, the National Spokesman of the Customs, Assistant Comptroller Abdullahi Maiwada denied knowledge of the memo.
‘”I am not aware of such memo.
I am hearing it for the first time ” he declared when asked to react to the document.
The 4 percent FOB Levy is meant to fund Customs’ technological modernization programs, replacing the previous 1% Comprehensive Import Supervision Scheme (CISS) fee.
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Customs

Comptroller Anani vows to enforce zero tolerance for smuggling as he takes the mantle of leadership at PTML

Funso OLOJO 
The new Customs Area Controller for Ports Terminal Multi services Limited (PTML)Command, Comptroller Joe Anan, has vowed to sustain the momentum of the command, enforce zero tolerance for smuggling and facilitate genuine trade in order to keep the lofty records of the command growing.
He made the pledge while taking the mantle of leadership of the command from the recently promoted ,Assistant Comptroller General,Tenny Mankini Daniyan.
The new Area controller  described the command and stakeholders as very well organised and promised to build on the various pioneering feats ACG Daniyan achieved
Comptroller Anani listed the successful roll out and subsequent revenue collection and trade facilitation achievements associated with the Unified Customs Management System, also known as B’Odogwu, as great milestones that must be improved on.
He also called on all customs officers, officials of sister government agencies and private sector stakeholders to join hands with him in the journey to keep the great records of PTML high
Comptroller Anani urged all the stakeholders to stay on the path of compliance as they stand to benefit more from being on the right side of the law at all times.
 He also promised to strictly enforce the CGC’s zero tolerance for smuggling
The CAC who promised to be accessible to all, also sought that everyone should feel free to interact with him either directly through visits or virtually.
Comptroller Anani said “While thanking God and the CGC Bashir Adewale Adeniyi, for the opportunity to serve here, let me state that our journey to succeed must remain a collective task. I am not here to do it alone.
“I hereby call on all customs officers, sister government agencies, private sector stakeholders and the press to support me in our goal to sustain PTML as a model port of excellence, known for security, efficiency and diligent trade facilitation.
“I pledge to build and improve on the gains achieved by my predecessors in the area of faster cargo clearance which aligns with Time Release Study (TRS) programme.
“I am aware that this command holds an outstanding record of two hour cargo release time for compliant RoRo consignment.
” The key word here is compliance. With improved compliance and efficient system, we can do less than two hours.
“Compliance, as the key to trade facilitation, is critical for smooth port operations.
“It ensures adherence to regulations, reduces delays, mitigates risks, and fosters trust among trading partners.
” Compliance minimises bottlenecks and enhances efficiency in global trade and PTML cannot be an exception.
” I want to urge all our stakeholders to imbibe the tenets of compliance because it results in a win-win situation for everyone, saving time and money.
” Whereas non compliance leads to interventions, issuance of demand notices, waste of time and possible seizure , detention and arrest.
” Let’s continue to make this area a great example that it has always been.
“The CGC’s zero tolerance for smuggling will be duly enforced on my watch and I am convinced from my background checks that our stakeholders are on the right track.
“Let me use this opportunity to inform you that my office is without a door. I shall be accessible to all physically and virtually in the quest to improve on our duties.
” Feel free to interact with me and avail me all relevant information needed for my success on this assignment” he concluded
Various stakeholders at the command while welcoming the new CAC also commended the ACG Daniyan for his outstanding performance in seeing to the success of B’Odogwu from its pilot phase to full deployments across various commands
They described the ACG’s leadership as outstanding with trail blazing effects on increased trade, revenue ,anti smuggling and robust interaction with stakeholders.
The President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) Otunba Frank Ogunojemite described Daniyan as a man whose records speak volumes positively while urging him to carry his working zeal ahead into NCS management team.
Chairman of the Association of Nigeria Licensed Customs Agents, PTML Chapter, Chief Charles Nwarrienne described Daniyan as an excellent officer deserving to be issued a “certificate of project completion” for diligently achieving the success of B’Odogwu from beginning to a state of consolidation.
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