Category: Daily Trust

Despite efforts to empower Micro and Medium Enterprises in the country, most businesses in the informal sector still earn low amidst high cost of doing business, a report by financial technology company, Monieppint has shown.

According to Moniepoint, the informal economy is still largely youth-driven, with 73 per cent of business owners aged between 18 and 44.

‘Businesses owned by people aged 35-44 increased to 35 per cent, compared to 29 per cent in 2024,’ it noted.

However, the report noted that women-owned enterprises declined slightly to 35 per cent, while men controlled 65 per cent.

It also added that ’44 per cent of informal businesses make less than N20,000 daily in revenue,’ while ’70 per cent earn below N50,000 in profit’ it stated.

A breakdown of the report by Daily Trust further showed that cash remains the dominant payment method for most informal enterprises in Nigeria.

The report launched to mark the fintech’s decade of operation over the weekend noted that one in four informal businesses report that digital payments account for less than 10 per cent of their total business revenue.

‘For most informal businesses, digital payments are an option, and typically not the full story. 1 in 4 of them say that digital payments account for less than 10 per cent of their total business revenue.

‘Only 16 per cent of them say that digital transactions account for over 50 per cent of their business revenue.’

The finding sits alongside other constraints, low profits, multiple levies, and limited access to large loans, which keep most operators reliant on offline transactions despite rising use of transfers for supplier payments.

‘The number of businesses in retail and trade increased to 44 per cent, followed by other services (33 per cent), agriculture (7 per cent), arts, entertainment, and recreation (4 per cent),’ according to the study.

Despite this dominance, ‘profit margins are low and often eroded by inflation, multiple taxation, and lack of access to credit,’ Moniepoint reveals.

Gender inequality persists, as ’41 per cent of women-owned businesses earn less than N10,000 per day in profit, compared to 34 per cent of men-owned.’

The gap underscores structural financial and cultural barriers to female entrepreneurship.

The report details the demographic, operational, financial, and digital trends shaping the sector amid rising inflation and evolving policy efforts.

The South-West, led by Lagos, continues to dominate, hosting one-third of all informal businesses. Lagos alone accounts for ’16 per cent of businesses in the informal sector – about the same as the North-East and South-East combined.’

In terms of structure, 85 per cent of operators are sole proprietors, and only 40 per cent employ labour – mostly one to three workers.

Moniepoint revealed that longer-established businesses are twice as likely to hire staff, indicating that survival and growth are critical to job creation potential.

The report also highlights that many informal operators ‘pay some form of taxes or market levies (89 per cent).’

However, poor understanding of business registration and its benefits continue to deter formalisation.

Under ‘Credit, Taxation, and Financial Behaviour,’ the report indicates that 70 per cent of informal businesses depend on informal credit sources like family and friends, while digital payments are gradually replacing cash transactions, signalling improved financial inclusion.

On the policy front, experts emphasised the need for simplified registration systems, gender-sensitive financial products, and digital literacy support.

Dr. Nurudeen Abubakar Zauro noted that inflation rose from ‘22.41 per cent in May 2023 to 34.8 per cent by December 2024,’ before easing to 21.88 per cent in mid-2025, urging targeted interventions such as conditional cash transfers and accessible credit.

Similarly, the Lagos Chamber of Commerce and Industry’s Director-General, Dr. Chinyere Almona, called for ‘coherent regulatory empathy’ and tiered compliance structures to prevent excessive taxation from driving small businesses deeper into informality.

According to Moniepoint, while Nigeria’s informal economy remains resilient and adaptive, structural barriers in finance, regulation, and digital infrastructure hinder its potential to contribute sustainably to GDP and formal employment.

Ahead of the FCT area councils’ chairmanship elections scheduled for February 21, 2026, not less than 104 members of the Peoples Democratic Party (PDP) in Kuje Area Council have dumped the party for the All Progressives Congress (APC).

The APC’s chairmanship candidate in the council, Danjuma Samuel Shekwolo, received the decampees at the weekend.

Shekwolo, who was joined by the party chairman, state welfare secretary, and some party leaders of the All Progressives Congress (APC), received the defectors at a brief ceremony at Kayarda-Kasa in Kuje Area Council.

Our correspondent reports that among the defectors were the Special Adviser on Nomadic Affairs to the incumbent chairman of the Kuje Area Council, Surajo Suman, Alhaji Bala Umar, Mallam Ibrahim Bello, among others.

The APC chairmanship candidate, while addressing the decampees, congratulated them for making a wise decision to join the ruling party and assured them that they would not regret their decision.

He described the decampees as leaders and solid members of the PDP and assured them that the APC would provide equal opportunities and privileges for both old and new members, adding that the party doors were still open for others to join.

Speaking on behalf of the decampees, Mr. Surajo attributed their decisions to the absence of pro-people leadership in the PDP administration in the council.

Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Ahmed Tinubu, has called for disciplinary measures against Aloy Ejimakor, one of the lawyers representing the detained leader of the Indigenous People of Biafra (IPOB), Nnamdi Kanu.

Onanuga accused the lawyer of professional misconduct after he participated in a protest in Abuja demanding the release of his client.

Ejimakor was among demonstrators led by activist, Omoyele Sowore, who converged on the Federal Capital Territory (FCT) on Monday to call for Kanu’s freedom.

The IPOB leader has remained in custody since his re-arrest in 2021 and is currently facing trial on charges bordering on treasonable felony. Reacting to the protest, Onanuga took to his official X handle to criticise Ejimakor’s action, describing it as ‘shambolic’ and unbecoming of a legal practitioner.

‘I wonder what Mr. Ejimakor was thinking when he decided to join this shambolic protest,’ Onanuga wrote.

‘As a lawyer, he should be aware of the principle of sub judice, particularly in relation to the ongoing treason case before the court.

‘The prosecution has concluded its case, and it is now incumbent upon Mr. Ejimakor and the other lawyers to mount a strong defence for Kanu.’

The presidential aide accused Ejimakor of abandoning his professional responsibilities in favour of what he termed ‘extra-legal tactics’ aimed at influencing judicial proceedings.

‘Rather than focusing on preparing a strong case, Mr. Ejimakor has resorted to extra-legal tactics, joining a career anarchist, to influence the process,’ Onanuga said.

He further questioned the lawyer’s adherence to professional ethics and urged relevant legal bodies to intervene.

‘Ejimakor’s action questions his commitment to the ethics of the legal profession. Legal authorities should consider appropriate sanctions for the unethical conduct of the bearded lawyer,’ he added.

Meanwhile, Ejimakor said he had been arrested alongside some protesters and taken to the Federal Capital Territory Police Command headquarters in Abuja.

The Legal Practitioners Disciplinary Committee (LPDC), which is responsible for maintaining ethical standards within the profession, is yet to issue any statement regarding Onanuga’s call.

The unfolding development in Nigeria’s political landscape, where four state governors elected on the platform of the opposition People’s Democratic Party (PDP) have resigned from the party to join the ruling All Progressives Congress (APC), with more reportedly set to follow, makes a mockery of Nigeria’s democratic journey. It portends a dangerous trend towards the erosion of multi-party democracy and a descent into a despicable one-party state.

Within just a few days in October, two governors, Enugu’s Peter Mbah and Bayelsa’s Douye Diri, announced their resignation from the PDP. Mbah, the lone PDP governor in the South East, made his move with a well-scripted but muted justification. ‘After a long walk, we have decided to leave the PDP and join the APC. Our vision has now found stronger reinforcement at the federal level. Our move is bigger than politics but about alignment with the centre,’ he said. His words, delivered to a region known for advocating true federalism and devolution of powers, reek of irony.

While Nigerians were still processing the Enugu development, Diri followed suit. Unlike Mbah, he offered no elaborate justification, merely citing ‘obvious reasons.’ What obvious reasons? As a governor completing his second term, he can hardly claim fear of losing re-election. Though he has yet to join the APC formally, reports suggest his defection is only awaiting a grand ceremony that has now become a political ritual.

These two have joined their southern colleagues, Akwa Ibom’s Umo Eno and Delta’s Sheriff Oborevwori, who made similar moves earlier in the year. Until these defections, Enugu, Bayelsa, Delta, and Akwa Ibom had been strong PDP strongholds since 1999. None of their governors had ever lost a re-election bid. What changed? Particularly for those still eligible for re-election in 2027, the motivation appears less about governance and more about political survival and self-interest.

While it is the constitutional right of every citizen to associate with any political organisation, such rights must be exercised within the bounds of the law. The law is clear that a political party, not the individual, sponsors a candidate for election. As affirmed in the landmark Rotimi Chibuike Amaechi v. Independent National Electoral Commission (INEC) and Others (2007) case, votes cast during an election belong to the party, not the candidate. In that light, these governors have erred by transferring the mandate of one political party to another.

This newspaper hopes the Supreme Court will one day pronounce a definitive position to codify this principle and protect the sanctity of party mandates.

Beyond the legal implications, however, lovers of democracy must be alarmed at the ruling party’s relentless drive to absorb nearly all opposition figures. While every political party naturally seeks to expand its membership, this expansion must be organic, not driven by a sinister ambition to transform Nigeria into a one-party state.

That the opposition is already in disarray only compounds the danger. Yet, the deeper problem lies in the political and electoral systems that permit such rampant cross-carpeting without consequences. The claim by defecting governors that they seek alignment with the federal government to attract development is nothing but claptrap. Reports suggest that Enugu, even under the opposition, has recorded more tangible development in recent years than some APC-controlled states.

What these defections truly demonstrate is a disregard for the electorate. Good governance, not alliance with the centre, should guide political choices. Opposition politics is a pillar of democracy; abandoning it for convenience exposes a lack of principle and commitment to democratic ideals.

The constitutional provisions on cross-carpeting need urgent review to safeguard the spirit of democracy. The judiciary must also be courageous in interpreting the law to preserve party integrity, particularly in cases involving lawmakers, where the law already provides clear guidance.

Above all, the ruling party must reflect on the repercussions of its unbridled quest to dominate the political space. History offers sobering lessons. The National Party of Nigeria (NPN), during the Second Republic, embarked on a similar conquest. Empowered by federal control between 1979 and 1983, it sought to capture all states by any means necessary. The 1983 elections, marred by massive rigging and violence in states like Oyo, Ondo, Anambra, Bendel (now Edo and Delta), and Cross River, exposed the arrogance of power. The ensuing chaos helped bring down the Republic through a military coup that ended civilian rule along with the party’s dominance.

Decades later, the PDP repeated the same mistakes. After its rise in 1999, it boasted of ruling for 60 years. Drunk on power, it extended its reach through manipulation, internal imposition, and suppression of dissent. When public resentment peaked, elite defections birthed the APC, which toppled the PDP in 2015, a party that now risks repeating the same mistakes that led to its predecessor’s fall.

Both the NPN and PDP remind us of an enduring truth: when ruling parties mistake the nation for their fiefdom and power for permanence, they sow the seeds of their downfall. The survival of Nigeria’s democracy depends not on the size or strength of a ruling party, but on its restraint, inclusiveness, and respect for the people’s will.

Recently, Nigerian President Bola Tinubu granted a state pardon to 175 individuals. Some of those on the list include foremost Nigerian nationalist Herbert Macaulay, the Ogoni Nine, environmentalists tried and executed under the Abacha regime. However, a considerable percentage of those on the list were individuals convicted of murder, kidnapping, corruption, illegal mining, and drug trafficking.

The decision, although constitutionally grounded, has sparked national debate on the role of the prerogative of mercy and its implications for justice, national security and governance. A state pardon, when exercised in good faith, can reinforce justice and offer hope to deserving citizens with a record of misdeeds who have paid their debt of service, providing them with hope and succour. State pardon could also pose a threat to national security and undermine the state’s institutional mechanisms of justice and law enforcement.

Debate on state pardon

Government supporters argue that state pardons were given to deserving convicts and inmates who have demonstrated good conduct, to reintegrate them into society. They also argue that pardons were given to address the challenge of prison overcrowding in the country. However, media reports on the long list of beneficiaries of the state pardon cast a moral question on the true intention of the pardon, as many on the list were political elites, drug peddlers, kidnappers, and murderers, many of whom are yet to show remorse or serve out their punishment. Civil society groups, opposition parties, and even victims of some of those released have described the government’s decision as embarrassing and political, an action that poses severe implications for national security and justice.

Some have criticised the pardon of the Ogoni Nine, arguing that a pardon amounts to an admission of guilt. The Ogoni Nine, convicted by the military tribunal of Abacha for environmental activism, were victims of institutional oppression and the silencing of activists and voices of truth. Critics insist that what was needed for the Ogoni activists was not a state pardon but an institutional apology and compensation for the cruelty meted out to them. Their inclusion is viewed as politics rather than justice, an attempt to pacify the people of the region in the government’s bid to resume oil exploration.

The politics of state pardon

The prerogative of mercy, a legal term that refers to the inherent power of a state to pardon or reduce the punishment of a person convicted of a crime, is nothing new in Nigeria, especially during this democratic dispensation. From Obasanjo to Jonathan and Buhari, there have been exercises of presidential pardon. In defence of this current pardon, some analysts have cited the case of Diepreye Alamieyeseigha, the former Governor of Bayelsa State, who received a state pardon from former President Goodluck Jonathan. However, Alamieyeseigha’s pardon was quite different from this sort of discretionary pardon. At the time he was pardoned, he had already entered a plea bargain with the Economic and Financial Crimes Commission (EFCC). He had been exonerated, having served his punishment by virtue of the plea bargain. This context is important to understand the difference between a pardon granted after due legal process and one that seems politically motivated.

In Nigeria, there is a common saying that politics is everything and everything is politics. This phrase encapsulates the idea that political considerations often override moral or legal logic in our country. Some analysts explain the presidential pardon from this perspective as a political move aimed at manipulating consensus and maintaining power. This underscores the urgent need for transparency and accountability in our governance.

Politics and moral governance in Nigeria

Politics in our clime is often described as a dirty game with a scarcity of morals. Even in its worst form, there is still caution for politicians to act in good conscience. Governance is a more serious task; it rests on the pillars of moral precepts and survives on legal instruments, which are often framed within moral logics and ideas. This highlights the crucial need for moral governance, a principled and ethical leadership that upholds justice and the rule of law.

Morality and virtue are necessary ingredients for nation-building and sustainable development. Great nations are built on the strength of their moral fabric and the seriousness with which a government upholds national virtues and moral principles. In this balance lie crime and punishment, justice and peace, anti-corruption and development, accountability and equality. Laws are instituted to uphold the moral fabric of a nation, and punishments are meted out to offenders to maintain peace and deter wrongdoing. Morality is not just an asset in nation-building and development. It’s the capital required to build a strong political economy that can guarantee peace, security, justice and progress in any nation.

Moral governance entails making government decisions in line with a good conscience, upholding justice, building trust, uplifting the collective conscience, and binding or weaving the moral thread of the nation.

Discretionary state pardon granted to high-level offenders and political elite risk putting the nation on a nihilistic path where nothing matters, evil is rewarded, and justice and punishment are trivialised on the altar of elite networks and state capture. This undermines the state’s ability to serve the public interest and can lead to widespread corruption and injustice.

A polity where public offenders are granted state pardon at will invites anarchy, as it distorts the foundation of good conduct, respect for the rule of law and robs victims of justice.

Nigeria’s nation-building journey is at a crossroads, marred by weak institutions, insecurity, poverty and a deficit of trust between the government and the people. Government actors need to prioritise moral governance that emphasises accountability, transparency, and integrity to build trust, strengthen institutions and uphold justice.

Moral governance is not an abstract idea. It is the foundation upon which peace, justice, and unity rest. Until Nigerian leadership reclaims morality as a principle in governance rather than a tool of politics, the nation will continue to trade its moral capital for temporary power and with it the promise of true nation-building.

The call to ‘Free Nnamdi Kanu’ has grown louder as activist Omoyele Sowore convenes a protest to demand the release of the separatist leader.

Kanu, detained since 2021 on charges of treason linked to his separatist movement, continues to challenge the allegations through his lawyers.

In this episode of Nigeria Daily, we ask, why should he be released?

Minister of Information and National Orientation, Mohammed Idris, has stated that the people claiming genocide against Christians in Nigeria are out to destroy the country’s unity.

The minister stated this on Monday in Abuja while speaking at the National Unveiling of the World Public Relations Forum (WPRF Abuja 2026), with the Theme, ‘Responsible Communication: The Voice of the World.’

He said Nigeria must come to terms with existential reputational threats to its national brand, ‘in which external purveyors of untruth are mischaracterizing our nation as a destination for a so-called persecution of people based on their religious faiths.’

The minister, while refuting claims of Christian genocide in the country, urged public relations experts to use all instruments withing their purview to cast the country in good light. ‘This is a propaganda externally woven by those who want to weaken our unity. For the umpteenth time, I am emphatic that there’s no iota of truth in the claim of a ‘Christian Genocide’ in Nigeria. I therefore urge us to use the instruments of public relations, crafted in truths and facts, to vehemently reject these despicable single narratives about Nigeria.’

He noted that the forthcoming World Public Relations Forum in Abuja is more than a global conference but an opportunity to present Nigeria as a model of transformation through communication.

‘Under President Tinubu’s leadership, the world is seeing a Nigeria that is reforming, rebranding, and re-emerging-driven by innovation, private sector growth, and renewed international confidence. Hosting this global event will reaffirm that Nigeria is not only the communication hub of Africa but also a responsible global partner in shaping narratives for peace, prosperity, and shared progress.’

The President of the Nigerian Institute of Public Relations (NIPR), Dr. Ike Neliaku, said the event would see Nigeria hold over 100 global public relations experts to see Nigeria for themselves and not through the mis and disinformation on the social media.

He added that Nigeria beat South Africa to get the hosting right and will serve as an opportunity for those who can influence public policies for Nigeria to see first hand what the federal government is doing to promote democracy and good governance.

‘What we are doing today is to tell the whole nation that we have the right to celebrate Nigeria at the highest level. It now flags off the official campaign, promotion and marketing of the event. This event is about the federal republic of Nigeria and a unique moment to host the entire world.’

On his part, Etsu Nupe expressed the support of the National Traditional Council of Nigeria for the event, promising that they will participate in all the activities of the programme.

The legal rights of Nigerian children are embedded in a range of national laws and international agreements. These laws rest on fundamental principles that safeguard human life, prevent harm, uphold human dignity, and promote human development. They affirm the simple truth that children are the cornerstone of society, and the survival and progress of any nation depend on how well it protects, nurtures, and empowers them.

Yet, despite these legal provisions, the effective enforcement and realization of children’s rights in Nigeria remain a major challenge. Many children still face significant barriers to accessing justice, ranging from poverty and inadequate legal representation to cultural practices and systemic shortcomings within the justice system. This gap raises urgent concerns about whether the rights of children in Nigeria are protected in practice or only on paper.

Access to justice for children goes beyond legal recognition; it is about creating a framework where their voices are heard, their needs addressed, and their best interests prioritized. A child justice system must be accessible, fair, and sensitive to the unique realities of childhood, especially for those from vulnerable backgrounds. As Nigeria continues to pursue its commitments under the Child Rights Act of 2003 and international treaties such as the United Nations Convention on the Rights of the Child, it is imperative that the gap between the law and people’s experience is aligned.

Nigeria’s child protection legal framework is based on constitutional provisions, national laws, and international treaties. The 1999 Constitution provides the foundation for children’s rights under its general human rights provisions. It guarantees the right to life, ensuring that no one, including a child, shall be deprived of life except under lawful circumstances. It also mandates the government to provide free and compulsory education at the primary level and encourages the provision of university education and the promotion of science and technology. While not consolidated in a single clause, the Constitution’s prohibition of inhuman or degrading treatment covers the protection of children from exploitation, trafficking, and forced labour. Although the Constitution lays a broad foundation, it does not address child-specific issues in detail. That responsibility falls to the Child Rights Act of 2003, Nigeria’s principal legislation for the protection and welfare of children. The Act was enacted to domesticate the provisions of the United Nations Convention on the Rights of the Child and the African Charter on the Rights and Welfare of the Child. It provides a comprehensive framework that recognizes every child’s right to survival, development, and protection from harm. It also guarantees every child free, compulsory, and quality education, consistent with the constitutional mandate. The Act expressly prohibits harmful cultural practices such as child marriage, child labour, trafficking, and the recruitment of children in armed conflict, emphasizing the right of every child to be protected from violence and exploitation.

On matters of health, the Child Rights Act provides that every child is entitled to the best attainable state of physical, mental, and spiritual well-being. It places an obligation on governments, parents, guardians, and institutions to ensure that children enjoy access to basic healthcare, nutrition, and safe environments necessary for their development.

Complementing these protections, the Labour Act places strict limits on child labour. It prohibits the employment of children in any form of work that could endanger their health, education, or development. Only light work performed under family supervision, such as domestic or agricultural tasks, may be permitted, provided it does not pose harm to the child’s physical or mental well-being. No child under sixteen may be employed without parental consent, nor required to work overnight or carry loads too heavy for their physical capacity. These provisions, while commendable, continue to face challenges of enforcement in parts of the country where child labour remains prevalent.

Access to justice is at the heart of human rights protection. For Nigerian children, however, it remains a difficult right to exercise. The Child Rights Act addresses this by establishing Family Courts at both the High Court and Magistrate levels to handle matters involving children. These courts are designed to operate in a child-sensitive manner, ensuring privacy, confidentiality, and protection throughout the legal process. The Act mandates that all proceedings must prioritize the best interests of the child, provide for free legal aid, and prohibit the publication of any child’s identity. The goal is to ensure that children who come into contact with the law are treated with dignity, compassion, and fairness.

In practice, however, several barriers continue to hinder children’s access to justice in Nigeria. Illiteracy remains a major factor, as many children and their parents are unaware of their legal rights or how to seek redress. Cultural norms in some communities discourage the reporting of abuse or exploitation, particularly when the perpetrator is a family member. The judicial process itself often lacks child-friendly mechanisms, with few specialized personnel or safe spaces where children can give evidence comfortably. Poverty further compounds these problems, as most families cannot afford legal services or the costs of pursuing cases through the courts. Even when cases are filed, prolonged delays and adjournments discourage victims and their families from seeing justice through to conclusion.

In addressing these challenges, the establishment of Family Courts is a positive step in the right direction; however, implementation and use must be deepened through training, funding, and public awareness. Child-friendly procedures, free legal representation, and community-based reporting mechanisms of abuses are also essential. Collaboration among government institutions, civil society, and international partners such as UNICEF can further strengthen advocacy and ensure that the rights of children are not lost in bureaucratic inefficiency.

Nigeria’s ratification of international conventions such as the United Nations Convention on the Rights of the Child and the African Charter on the Rights and Welfare of the Child underscores its commitment to protecting the rights of children. The real test, however, lies in translating those commitments into consistent action at every level of federal, state, and local government.

Ultimately, for Nigeria, ensuring that every child, regardless of background or circumstance, can access justice and protection is fundamental to building a just and equitable society. Strengthening legal institutions, expanding access to education, and raising public awareness are vital steps toward realizing that vision, and only then can the promise of justice for children become a general reality all over the country.

International customers that get their power supply failed to pay the sum of $19.84m (N29.18bn) from the $34.71m (51bn) bills issued to them from January to June of 2025, analysis of quarterly reports by the Nigerian Electricity Regulatory Commission has shown.

The report said the countries that got the supply through their electricity utility companies include; Société Beninoise d’Energie Electrique (SBEE), Compagnie Energie Electrique du Togo (CEET) and Société Nigerienne d’electricite (NIGELEC) and they [paid just 57 percent of the electricity bills.

A breakdown showed that the companies were given a $5.17m bill for January but they paid $3.64m.

For February, they were billed $5.52m from which they paid $0.81m while in March the bill increased to $6.49m from which $1.43m was paid and in April, $6.34m bill was given but $3.85m was paid.

In May, the bill was reduced to $5.68m but $2.88m was paid while June saw a $5.51m bill and $2.26m was paid.

Analysis by country showed, the SBEE of Benin had the highest bill of $29.76m of which it paid $9.16m.

This means that the country paid 69% of its bills having paid $2.76m in January, $2.16m in April, $1.98m in May and $2.26m. It did not pay for supply it got in February and March from Transcorp generating company in Ughelli and PARAS GenCo.

NIGELEC of Niger Republic was the second biggest customer with $8.43m worth of electricity supply but it paid $5.62m, meaning it offset 77 per cent of its bills.

A breakdown showed the company was billed $0.88m worth of electricity in January and paid the whole money and also paid the entire $0.81m billed it was given in February but was able to pay $1.34m from the $3.03m billed given in March.

In April, it also paid off all the $1.69m it was billed and also did the same with the $0.9m bill for May. But in June it failed to pay anything from its $1.12m bill.

For, CEET of Togo, it failed to pay any of its $7.2m bill, having issued $0.75m for electricity in January, $1.02m in February, $3.15m in March, $0.98m in April, $0.78 in May and $0.52m in June.

Foreign obligations in face of low domestic supply

It would be recalled that NERC had last year directed the grid operator to cut back on supplies to customers overseas to boost domestic supply.

NERC, in a directive said the grid operator’s current approach to managing supply has caused significant hardship for Nigerians because supply under bilateral contracts, including export to international customers, takes priority over supply to domestic customers.

Also, a former Managing Director of the Transmission Company of Nigeria (TCN), Usman Mohammed, in 2019 threatened to cut electricity supply to neighbours Togo and Niger over a $16 million debt.

Then, it was estimated that Niger owes $2 million and Togo $14 million. The countries have reduced the debt from $100 million a couple of years back.

‘We will disconnect them. Electricity is not charity,’ Mr Mohammed said.

History of debts

Our correspondent reports that international customers have a history of late payments with debts piling up.

NERC reported that these customers owed Nigerian power companies over $12 million in unpaid debts at the end of 2023.

Analysts at the Center for Petroleum, Energy Economics and Law in a recent report say long-term solutions to the challenges of low supply involve infrastructure improvements, increased generation capacity, and stricter enforcement of regulations within the power sector.

Nigeria supplies 300 megawatts of electricity to Togo, Benin and Niger.

Daily Trust reports that Nigeria has an installed electricity generation of 13,600 to 14,000 MW but due to infrastructural limitation, the output has hovered around 5,500 megawatts amidst the wide supply gaps which have thrown many households into darkness.

Analysts say despite the persistent debt challenge, Nigeria would continue to honour international obligations on electricity supply to neighbouring countries.

Industry analyst, Dr. Dauda Garuba said, ‘Nigeria doesn’t need to stop doing energy business with its neighbours because of its inability to meet its obligation to the local market. Those are contracts meant to be fulfilled, too.’

Also, Adetayo Adegbenle said, ‘Supply to neighboring States is primarily because of the international agreement we signed to build River Niger dam. Meanwhile, this is not a unique situation as these bills are easily charged to the Balance of Trade.’

More woes for generating companies

Meanwhile, the lack of payment by the international companies brings more woes to electricity Generating Companies (Gencos) that have been reeling from debts owed to them by industry players from the federal government and the electricity Distribution Companies (DisCos).

According to the existing structure of subsidy in the sector, the federal government pays 50 per cent of the generating cost of electricity, which has amounted to over a trillion naira in the first half of 2025.

The companies are also owed another N4tr with N2tr as legacy debt and another N2tr as subsidy payment for 2024.

While the N4trn has been a contentious issue in the sector, the federal government has been looking for ways to clear the debt.

The Special Adviser to the President on Energy, Olu Verheijen, had last week in a statement said the government had approved a N4tr bond to finance the debt.

She said the government is focused on creating the right conditions for investment, from modernizing the grid and improving distribution to scaling embedded generation.

She added that by closing metering gaps, aligning tariffs with efficient costs, improving subsidy targeting to support the poor and vulnerable, and restoring regulatory trust, it is shifting from crisis response to sustained delivery and building the confidence needed to attract large-scale private capital.

Similarly, the Chairman of Heirs Holdings and Transcorp Power, Tony Elumelu, was quoted in the statement to have said: ‘For the first time in years, we are seeing a credible and systematic effort by the government to tackle the root liquidity challenges in the power sector. We commend President Tinubu and his economic team for this bold and transformative step.’

He added that beyond clearing arrears, the debt reduction plan signals a strategic reset of Nigeria’s electricity market.

‘By restoring the financial health of power companies, it will enable new investment in generation capacity, modernize grid infrastructure, and deliver more reliable electricity to homes and businesses, creating a stronger foundation for industrialization, job creation, and inclusive economic growth.’

The recently launched Lagos Omi-Eko project valued at EUR 410 million (about N713bn) is targeted at transforming waterways mobility and transporting 25m passengers yearly.

The project is financed through a collaboration of the French Development Agency (AFD), the European Union (EU), the European Investment Bank (EIB) with an earmarked subsidised loan of EUR 360 million.

The project divided into two components will begin covering channelisation, marking and dredging of 140km of ferry routes from which the state will develop 15 priority ferry routes, including constructing high-quality infrastructure and facilities.

The Lagos State Waterways Authority (LASWA) is saddled with the responsibility of covering the first component.

The second component is expected to be completed by 2030 while the entire Inland Waterways Transport infrastructure comprises 25 ferry terminals and jetties with electric charging facilities to power e-vessels.

Also, the onshore depots for routine vessel maintenance, while land connections, including road surfacing, are expected to develop for other transport services connecting to ferry terminals.

The investment would bring decarbonised transportation in Lagos, reducing CO2 emissions by 41,000 tonnes yearly. It is expected to take 25,000 passengers yearly, saving travel time by 3hrs on each trip.

Speaking at the launch, the state’s governor, Babajide Sanwo-Olu described the Omi Eko project as ‘historic’, describing it as a ‘bold statement’.

Omi Eko, a Yoruba phrase is translated loosely as water of Lagos. It is an initiative to leverage on the state’s abundant water to drive waterways transportation.

78 electric ferries were deployed for the project.

The governor added that the project reaffirms the state’s frontline leadership in delivering a sustainable integrated water transportation ecosystem.

He reiterated that waterways transportation is a critical priority in his administration’s THEMES+ Agenda to transform mobility in the metropolis.

‘Every Lagosian knows the frustration of traffic. But a few will remember that Lagos began as a network of islands, knitted together by water. Long before bridges connected the city, boats carried dreams, goods, and people across the lagoons. This water body nourishes us, shapes the State’s identity and now, it will carry us into the future.

‘The OMI-EKO project is a comprehensive, future-oriented blueprint for sustainable mobility in Lagos. It merges technology, environmental stewardship and smart design to create waterways that are not just navigated, but optimised. This is the kind of innovative projects cities around the world are building to confront the twin challenges of urban population growth and climate change. Lagos is not waiting to catch up, we are setting the pace,’ he said.

Sanwo-Olu highlighted the investment potentials, saying the objective was to make transportation through water seamless, reduce carbon footprint, the air cleaner and transform waterways from barriers of separation into corridors of opportunity.

‘The launch of this project is more than a ceremonial curtain pull. It is a covenant with our people, our planet, and with future generations. With OMI-EKO, we are lifting not only boats but lives, businesses, and communities. We are signaling that Lagos is ready to lead Africa’s urban transition by this bold, sustainable, and inclusive investment,’ he said.

Former Governor Babatunde Raji Fashola, who created LASWA in 2008, hailed the Sanwo-Olu’s administration for nurturing the agency to a viable global entity.

He said the OMI-EKO project would further expand the scope of the state’s integrated transportation network, expressing optimism that the project would not stall, given the commitment of the European partners.

Commissioner for Transportation, Mr. Seun Osiyemi, said the project would unlock the full potential of Lagos inland waterways, bringing the final piece of the State’s Integrated Multimodal Transportation System to life.

‘OMI-EKO aligns with broader Lagos Transport Policy, which promotes sustainability, inclusivity, and innovation, while ensuring that transport solutions serve the people while protecting the environment. The project is not just about ferry operations; it is about empowering communities, creating jobs, easing congestion, and reducing our carbon footprint,’ he said.

Special Adviser to the Governor on Blue Economy, Mr. Damilola Emmanuel, who doubles as LASWA’s head, noted that the OMI-EKO project was no longer a dream, but a reality that would change the course of transportation in Lagos.

He said the 78 hybrid electric ferries that would be deployed after the completion of the project would reduce pollutants’ emissions and boost clean mobility

The LASWA boss said 20 existing jetties would be upgraded with modern terminals across 15 major water routes.

‘In the first phase, there will be dredging and channelisation of 15 ferry routes for safer and faster transport. Parts of the benefits include technology transfer and capacity development for key agencies in the waterways, especially LASWA.

‘There will be funding for the informal boat sector under our Vessel Industry. This is how we build a water-based economy that works for all – from operators to passengers, from private investors to our citizens,’ he said.

French Minister for Europe and Foreign Affairs, Mr. Jean-Noel Barrot, said the project received complete support from EU partners, given the untapped opportunities in Lagos waterways.

The envoy said the OMI-EKO project represented the ‘best possible’ example of what partnership could achieve for the benefit of the people, pointing out that the development was part of the success of the bilateral cooperation reached during President Bola Ahmed Tinubu’s recent visit to the French President Emmanuel Macron.

The EU Ambassador in Nigeria, Mr. Gautier Mignot, noted the partnership was an historical milestone for Lagos and EU member states, stressing that the investment would enhance life quality.

‘This investment supports development of 12 strategic waterways corridors to enhance secure and efficient sustainable transport networks. Four of these corridors are located in West Africa. We are proud to be part of this project which showcases all the aspects of global gateway development,’ Mignot said.