The Minister of Power, Adebayo Adelabu, has stated that the federal government is working on transitioning to a cost reflective tariff to stop an increase in the N4 trillion debt it owes the sector.

The minister disclosed this during the Mission 300 Stakeholders’ Engagement meeting in Abuja

He said that this is part of reforms to set the power sector on the path of sustainability and bankability.

It would be recalled that despite the increase of electricity tariff for Band A customers, electricity consumers have complained of low electricity supply and continuous payment of faulty electricity installation.

But Adelabu said the decision is critical to the economic growth and development of Nigeria.

“Currently, there’s a huge outstanding debt to the power generation companies in the form of unpaid government subsidies which stands at about N4 trillion as of December 2024.

The government had accrued N1.1trillion as subsidy payment in the first six months of 2025 making its debt climbing to N5 trillion.

“The Federal Government is already working out modalities to defray this obligation and to ensure that further obligations are not accrued going forward, the government is working on a plan to transition the sector to a fully cost-reflective regime while implementing targeted subsidies for the economically vulnerable citizens in the country.”

The implication of this is that the government would end the subsidy regime in the electricity sector which would trigger an increase in tariff across board.

•Photo (L-R) : Brazil’s President Luiz Inacio Lula Da Silva , welcome Nigeria’s President Bola Tinubu, to the summit.

President Bola Tinubu said that Nigeria strongly believes in the South-South cooperation, and supports the BRICS position on the need to focus on collective, fair, and equitable global development.

Nigeria officially became the ninth partner country of BRICS in January 2025.

President Tinubu , in his address during the 17th meeting of the Global South and the Emerging Economies bloc, BRICS, on Saturday in Rio de Janeiro, Brazil, said :

” Nigeria strongly believes in South-South cooperation. We can, therefore, not be passive participants in global decision-making on financial restructuring, debt forgiveness, climate change, environmental issues, and healthcare.

“We must be the architects of a future that addresses the specific needs and concerns of youths, who represent 70 per cent of our population in Nigeria.

Therefore, Nigeria remains guided by our long-term vision, 2050, and nationally determined contribution.

“President Bola Tinubu also called for a reevaluation of the current global governance structure and the financial and healthcare systems, urging greater equity and inclusion for low-income and emerging economies, particularly in Africa.

President Tinubu stated that environmental degradation, the climate crisis, and healthcare inequalities should receive more attention, as they contribute to slowing growth and development.

“Nigeria, therefore, associates with what I have heard today and all that has happened in BRICS.

“As we approach COP-30 and look to strengthen the global health system, we believe the BRICS must not only be a bloc for emerging economies but also a beacon for emerging solutions and resolutions rooted in solidarity, self-reliance, sustainability, and shared prosperity of a common future.”

Meanwhile, other BRICS partner countries include: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda, and Uzbekistan.

The 16th BRICS Summit in Kazan in October 2024 created the partner-country category.

These countries participate in BRICS activities, benefiting from cooperation in areas like trade, investment, and technology.

The partner country category was introduced during the 2024 BRICS Summit in Kazan, Russia, allowing nations to engage with BRICS without committing to full membership.

BRICS is an acronym that stands for Brazil , Russia , India , China and South Africa.

BRICS is a grouping of these five major emerging economies that cooperate on economic, political and social issues.

A federal high court in Abuja has ruled that the Nigeria Inter-Bank Settlement System (NIBSS) has the legal right to manage the country’s bank verification number (BVN) database.

Justice James Omotosho delivered the judgment on Friday, declaring that NIBSS operations comply with the Central Bank of Nigeria (CBN) Act and other relevant financial laws.

BusinessDay reported that the case arose after NIBSS, represented by senior advocate Wolemi Esan, took legal action to confirm its authority over the BVN system.

The company sued the Incorporated Trustees of Digital Rights Lawyers Initiative, the CBN, and the Attorney General of the Federation.

NIBSS wanted the court to declare that its management of BVN data does not violate Nigerians’ constitutional right to privacy or break any existing laws.

The company also sought a permanent court order preventing anyone, including the Digital Rights Lawyers Initiative, from challenging its role.

The bank settlement system argued that it has the power to develop and regulate nationwide infrastructure for electronic payments and fund transfers, which includes the BVN system.