Month: October 2025

Nigeria’s electricity distribution companies (DisCos) recorded a stronger financial performance in the second quarter of 2025, collecting a total of ₦564.71 billion in revenue — a modest but meaningful improvement from the previous quarter.

The data was released in the Q2 2025 Report of the Nigerian Electricity Regulatory Commission (NERC), which monitors performance trends across the nation’s power sector.

Modest Growth in Collection Efficiency

According to NERC, DisCos billed customers ₦742.34 billion in Q2 2025 and successfully collected 76.07% of that amount. This reflects a 1.68 percentage point rise in collection efficiency compared to the 74.39% recorded in the first quarter, when DisCos realized ₦553.63 billion from ₦744.26 billion billed.

NERC said the increase, though slight, demonstrates steady progress in revenue management, despite persistent operational and infrastructure challenges across the sector.

Eko, Ikeja, and Port Harcourt DisCos Lead the Pack

Three electricity distribution companies stood out for their strong revenue collection performance during the quarter — Eko, Ikeja, and Port Harcourt DisCos.

• Eko DisCo maintained its top position with an impressive 87.80% collection efficiency, the highest in the country.

• Port Harcourt DisCo showed notable improvement, climbing by 9.79 percentage points from the previous quarter.

• Ikeja DisCo also advanced by 4.89 percentage points, consolidating its status as one of the sector’s most efficient operators.

Other performers that recorded gains include:

• Benin DisCo, up by 5.04 percentage points,

• Ibadan DisCo, up by 4.20 percentage points, and

• Yola DisCo, up by 0.88 percentage points.

“These improvements indicate a gradual strengthening of operational and financial discipline among top-performing DisCos,” NERC stated in its report.

Jos and Abuja DisCos Struggle with Declining Performance

Despite the general progress, some distribution companies recorded setbacks in their collection efforts. Jos DisCo had the lowest performance, posting just 43.82% collection efficiency, while Abuja DisCo saw a 3.93 percentage point decline compared to Q1 2025.

NERC attributed these shortfalls to energy theft, poor metering coverage, billing disputes, and inefficiencies in customer management systems, which continue to hinder revenue recovery in some regions.

Why Collection Efficiency Matters

The regulator stressed that improving collection efficiency is essential for the sustainability of the Nigerian Electricity Supply Industry (NESI).

Stronger revenue performance allows DisCos to meet their financial obligations to the Transmission Company of Nigeria (TCN), the Nigerian Bulk Electricity Trading (NBET) company, and generation companies (GenCos) — all of which depend on timely remittances to sustain power supply stability.

“The liquidity of the power market depends heavily on how effectively DisCos collect payments from customers,” the report noted.

Background: Annual Revenue Trends

In its 2024 Annual Report, NERC revealed that DisCos collectively remitted ₦1.18 trillion, though the industry still faced an outstanding deficit of ₦185 billion, translating to an 86.47% remittance rate.

In Q4 2024, DisCos billed ₦658.40 billion but collected ₦509.84 billion, representing a 77.44% efficiency rate. While improvements were seen in early 2025, the sector continues to grapple with fluctuating revenues — as collection rates have historically dropped from highs of over 79% to as low as 74% in some quarters.

Outlook

NERC said it would continue implementing performance-based regulations and monitoring frameworks to push for higher accountability, improved customer billing accuracy, and the expansion of prepaid metering coverage across the country.

Experts believe sustained progress in revenue collection will be key to ensuring financial stability and reducing the funding gaps that have long constrained Nigeria’s power distribution network.

The Nigeria Customs Service (NCS) has recorded a major breakthrough in its anti-smuggling campaign, with officers of the Federal Operations Unit (FOU), Zone A, seizing contraband goods valued at more than ₦1.2 billion in just six weeks.

The unit’s Comptroller, Mohammed Shu’aibu, disclosed this during a press briefing in Lagos on Tuesday, emphasizing that the operation reflected the service’s renewed vigilance and tighter enforcement measures across the South-West region.

₦1.188 Billion in Seized Goods

According to Shu’aibu, the confiscated items carried a Duty Paid Value (DPV) of ₦1.188 billion. The seizures, he said, resulted from the strategic deployment of intelligence, coordinated patrols, and inter-agency collaboration aimed at dismantling smuggling networks.

Among the seized goods were 5,015 bags of imported rice, equivalent to eight trailer loads, 15 used vehicles, 143 bales of second-hand clothing, two jumbo sacks of used shoes, and a sack of assorted worn apparel.

“These results demonstrate the Service’s unwavering commitment to protecting Nigeria’s economy from the damaging effects of smuggling,” Shu’aibu stated, as reported by the News Agency of Nigeria (NAN).

Drugs, Codeine, and Cannabis Among Intercepted Items

The Comptroller also revealed that officers intercepted 390 bottles of codeine, 310 packs of foreign-branded drugs, 19 cards of tramadol, and 210 used tyres during the operation.

In addition, a 20-foot container with registration number ONEU 2419369 FTC, declared as a different item, was discovered to contain 752 cartons of calcium lactate — a case of false declaration now under investigation.

Other contraband included 640 parcels of cannabis sativa weighing 431.8 kilogrammes and 460 jerrycans of petrol, totalling 11,500 litres, intended for illegal export.

Arrests and Recoveries

Shu’aibu confirmed that four suspects had been arrested in connection with the seizures and handed over to relevant agencies for further investigation and prosecution.

The command also recovered ₦39.2 million through demand notices issued against importers who attempted to under-declare their goods’ value between September 1 and October 7, 2025.

“These recoveries underscore our dedication to ensuring that legitimate traders comply with customs laws and pay accurate duties,” Shu’aibu said.

Collaboration with NAFDAC and NDLEA

The seized drugs and narcotics were handed over to the National Agency for Food and Drug Administration and Control (NAFDAC) and the National Drug Law Enforcement Agency (NDLEA) for proper investigation and disposal.

NAFDAC Chief Regulatory Officer, Mr. Taiwo Kareem, commended Customs for its vigilance, revealing that the intercepted pharmaceuticals had expired between 2001 and 2023. He cautioned Nigerians against purchasing medicines from roadside vendors, warning of the dangers posed by expired or counterfeit drugs.

Similarly, NDLEA Deputy Commander of Narcotics, Mr. Nasir Bungudu, praised the synergy among the agencies, pledging continued collaboration in tackling drug trafficking and smuggling-related offences.

Customs Reaffirms Commitment to Border Protection

Reiterating the service’s stance, Shu’aibu emphasized that the NCS would continue to enforce the 2016 federal government ban on the importation of foreign parboiled rice and other prohibited goods through land borders.

He warned smugglers to desist from illicit trade, noting that the service would not relent in its efforts to protect the nation’s borders and economy.

“I commend the Comptroller-General, Bashir Adeniyi, for his visionary leadership and commitment to strengthening customs operations nationwide,” Shu’aibu concluded.

Nigeria’s electricity distribution companies (DisCos) installed 225,631 new meters in the second quarter of 2025, representing a 20.55% increase from the 187,161 meters deployed in the first quarter, according to the Nigerian Electricity Regulatory Commission (NERC).

The data, contained in NERC’s Q2 2025 Quarterly Report, highlights steady progress in the country’s ongoing metering drive under multiple frameworks.

Breakdown of Meter Installations

Out of the total meters installed, 147,823 units (65.5%) were deployed under the Meter Asset Provider (MAP) framework, while 65,315 meters came through the Meter Acquisition Fund (MAF). Another 12,259 meters were installed via the Vendor Financed scheme, and 234 meters under the DisCo Financed model.

Despite the improvement, NERC noted that as of June 2025, only 6.42 million of the 11.82 million registered electricity customers in the Nigerian Electricity Supply Industry (NESI) had functional meters — translating to a 54.33% metering rate. This means nearly half of Nigerian electricity consumers remain unmetered, relying on estimated billing.

To protect unmetered consumers, the regulator said it continues to enforce the monthly energy cap policy, which limits how much electricity distribution companies can bill customers without meters.

“This policy ensures that unmetered customers are not billed beyond the maximum energy consumption on their feeder,” NERC stated.

Decline in Customer Complaints, But Resolution Rates Lag

NERC’s report also revealed that DisCos recorded 227,267 complaints in Q2 2025 — a 10.67% decrease from the 254,404 logged in Q1. Most of the complaints were related to billing, metering, and power supply interruptions, consistent with historical patterns.

At the regulator’s Central Complaint Unit (CCU), only 1,129 out of 2,474 complaints were resolved, reflecting a 45.6% resolution rate, which NERC described as below standard.

The report further showed that two forum offices were closed during the quarter, reducing the number of active complaint forums from 26 to 24. Meanwhile, 1,418 appeals were active across the remaining offices, with 958 resolved, representing a 67.6% resolution rate, down from 74.1% in Q1 2025.

NERC’s Crackdown on Billing Violations

Earlier in April 2025, NERC fined eight DisCos — including Ikeja Electric, Eko Disco, Abuja Disco, Enugu Disco, Jos Disco, Kaduna Electric, Kano Disco, and Yola Disco — for breaching the energy cap regulation on estimated billing.

The penalties totaled ₦628 million, with the regulator also directing each company to issue credit adjustments to all affected customers.

The sanctions sparked mixed reactions among consumers and industry stakeholders. While many applauded NERC’s stance on consumer protection, others expressed concern that fines alone may not fix systemic challenges in billing transparency and metering rollout.

Metering Gap Still a Challenge

Although the Q2 2025 data reflects progress, Nigeria’s metering gap remains a key obstacle to efficient power sector reform. NERC has emphasized that increased investment in metering and stricter regulatory enforcement are crucial to eliminating estimated billing and restoring consumer trust in the electricity market.

Gold prices have surged to an unprecedented level, surpassing $4,000 per ounce for the first time in history, as investors scramble for safety amid deepening concerns over the U.S. government shutdown and the broader economic outlook.

The record-breaking rally underscores gold’s enduring reputation as the ultimate haven asset, marking a dramatic rise from below $2,000 just two years ago. With gains of over 50% in 2025 alone, the precious metal has far outpaced global equities and become one of the best-performing assets of the century.

Investor Anxiety Fuels the Rally

The latest spike in gold prices reflects a growing unease about Washington’s budget gridlock, renewed fears over U.S. fiscal health, and doubts about the Federal Reserve’s independence. The combination has rattled markets and pushed investors toward assets that promise stability when confidence in government and policy falters.

Financial analysts say the rally is part of a broader reallocation trend — investors shifting from overvalued technology stocks into tangible stores of value like gold. “Gold crossing $4,000 isn’t just a panic move — it’s a strategic rotation,” explained Charu Chanana, a strategist at Saxo Capital Markets. “With rate cuts approaching and real yields softening, gold is back at the center of global portfolios.”

Central Banks and ETFs Driving Demand

Another major factor behind the surge is aggressive buying by central banks, which have been increasing their gold reserves to reduce reliance on the U.S. dollar. The trend, already visible over the past two years, accelerated in 2025 as global geopolitical tensions deepened.

At the same time, retail investors and institutional funds have piled into gold-backed exchange-traded funds (ETFs). September recorded the largest monthly ETF inflows in more than three years, signaling renewed appetite for physical assets over paper-based investments.

Spot gold climbed as high as $4,026.69 an ounce on Wednesday afternoon in Singapore, before settling slightly lower at $4,025.86.

History Repeats in Times of Crisis

The latest milestone continues a long pattern of gold surging during times of global stress. The metal first broke $1,000 following the 2008 financial crisis, $2,000 during the 2020 pandemic, and $3,000 amid trade tensions and tariff disputes in 2022. Now, amid the 2025 U.S. government shutdown, it has reached $4,000, symbolizing yet another chapter in the metal’s crisis-driven trajectory.

The current rally, however, may be more complex than those before it. It’s fueled not only by fear, but also by structural shifts in global finance — including the weakening U.S. dollar, slowing economic growth, and the rise of emerging-market central banks diversifying away from traditional reserve currencies.

Fed Uncertainty and Political Pressure

Adding to market volatility is a wave of political pressure on the U.S. Federal Reserve. President Donald Trump’s latest criticism of the central bank, including reported threats toward Chair Jerome Powell and moves to replace Governor Lisa Cook, have raised questions about the Fed’s autonomy.

If the Fed becomes more compliant to political influence and cuts rates aggressively, analysts say it could trigger higher inflation — a scenario that would further support gold prices. “This is the perfect storm for bullion,” said one market analyst. “A weaker dollar, lower real yields, and political uncertainty are all colliding at once.”

The Outlook: Can Gold Go Higher?

With the Fed now easing monetary policy and bond yields trending lower, most traders expect the momentum to continue in the short term. However, some warn that the pace of the rally may invite profit-taking if geopolitical tensions ease or U.S. lawmakers reach a funding agreement soon.

Still, for many long-term investors, gold’s record run is a reminder of its timeless role as a safeguard against instability. As one trader put it, “Every financial era has its moment of reckoning — and when trust in institutions wavers, gold always shines the brightest.”