Adebayo Adelabu, the Minister of Power, announced the federal government's decision to suspend the transfer of regulatory authority over electricity to state governments. This was revealed during the 8th Africa Energy Market Place (AEMP) conference held in Abuja on Friday.

Earlier in April, the Nigerian Electricity Regulatory Commission (NERC) had transferred oversight of the electricity markets in Ondo, Ekiti, and Enugu to the states' electricity regulatory bureaus (OSERB). However, Adelabu stated that the suspension was necessary to ensure state governments and power sector stakeholders fully understand the requirements for operating an electricity market.

Adelabu emphasized that a thorough understanding of regulatory oversight transfer is crucial for the power sector's sustainability. "We must proceed with caution and not rush this process. Our market is not mature enough. Centralizing regulation under one body has presented numerous challenges. Now, creating a regulatory framework across 36 states must be done methodically and strategically," he said.

He proposed using a few states as pilot programs, which led to halting further regulatory autonomy grants. The transfer will be tested in selected states across Nigeria's geopolitical zones. "By running the pilot for three to six months, or up to a year, we can identify and address potential issues before extending regulatory autonomy further," Adelabu explained.

Adelabu clarified that granting regulatory autonomy to a state encompasses the entire electricity value chain—generation, transmission, and distribution within the state's territory, including tariff setting. He stressed the importance of understanding the financial responsibilities involved, particularly concerning tariffs and subsidies.

"We need comprehensive discussions to ensure everyone understands the implications of regulatory autonomy. This will determine whether we are ready for full autonomy or need to implement it gradually until our electricity market matures," he said.

The minister also highlighted the underestimated capacity required for regulatory authorities in 36 states and the FCT. Each state must establish a framework to protect assets, address vandalism, ensure consumer protection, and secure sufficient capital for continuous investment and infrastructure maintenance.

TotalEnergies, the French energy giant, has finalized its first supply deal with Dangote Refinery in Nigeria, as announced by Chief Executive Patrick Pouyanne on Friday. This development follows a meeting with Africa's wealthiest individual, Aliko Dangote.

Speaking at the Africa CEO Forum in Kigali, Rwanda, Pouyanne stated, "We met this morning and reached our first agreement. The two CEOs, along with our head of trading, collaborated to finalize the deal."

Dangote has been seeking crude supplies for his 650,000 barrels per day (bpd) refinery, which will be the largest in Africa and Europe once fully operational. In May, Dangote issued a tender for two million barrels of West Texas Intermediate (WTI) Midland crude each month for a year, starting in July, according to a document seen by Reuters.

The $20 billion refinery, which commenced production in January, is part of Dangote's strategy to reduce Nigeria's dependence on imported fuel and refined products, despite the country being Africa's leading oil producer.

Dangote revealed that the refinery has sufficient gasoline, diesel, and aviation fuel to meet the demands of the African continent and export to Brazil. "We have started producing jet fuel and diesel, and by next month, we will begin gasoline production. This will enable us to process most African crudes," he explained.

"Our refinery's capacity exceeds Nigeria's needs, allowing us to supply West, Central, and Southern Africa," he added. The next phase of the refinery is scheduled to commence early next year.

TotalEnergies is a significant crude producer in Nigeria, alongside other major companies such as Shell, Exxon, and Chevron.

Fierce fighting in northern Gaza as aid starts to roll off US-built pier

Israeli forces battled Hamas fighters in the narrow alleyways of Jabalia in northern Gaza on Friday in some of the fiercest engagements since they returned to the area a week ago, while in the south militants attacked tanks massing around Rafah.

Residents said Israeli armour had thrust as far as the market at the heart of Jabalia, the largest of Gaza's eight historic refugee camps, and that bulldozers were demolishing homes and shops in the path of the advance.

"Tanks and planes are wiping out residential districts and markets, shops, restaurants, everything. It is all happening before the one-eyed world," Ayman Rajab, a resident of western Jabalia, said via a chat app.

Israel had said its forces cleared Jabalia months earlier in the Gaza war, triggered by the deadly Hamas-led attacks on southern Israel on Oct. 7, but said last week it was returning to prevent Islamist militants re-grouping there.

In southern Gaza bordering Egypt, thick smoke rose over Rafah, where an escalating Israeli assault has sent hundreds of thousands of people fleeing from what was one of the few remaining places of refuge.

"People are terrified and they're trying to get away," Jens Laerke, U.N. humanitarian office spokesperson, said in Geneva, adding that most were following orders to move north towards the coast but that there were no safe routes or destinations.

As the fighting raged, the U.S. military said trucks started moving aid ashore from a temporary pier, the first to reach the besieged enclave by sea in weeks.

The World Food Programme, which expects food, water, shelter and medical supplies to arrive through the floating dock, said the aid was transported to its warehouses in Deir Al Balah in central Gaza and told partners it was ready for distribution.

The United Nations earlier reiterated that truck convoys by land - disrupted this month by the assault on Rafah - were still the most efficient way of getting aid in.

"To stave off the horrors of famine, we must use the fastest and most obvious route to reach the people of Gaza – and for that, we need access by land now," deputy U.N. spokesperson Farhan Haq said.

U.S. aid was arriving in Cyprus for delivery to Gaza via the new pier, Washington said.

Hamas demanded an end to Israel's siege and accused Washington of complicity with an Israeli policy of "starvation and blockade".

The White House said U.S. national security adviser Jake Sullivan would visit Israel on Sunday and stress the need for a targeted offensive against Hamas militants rather than a full-scale assault on Rafah.

A group of U.S. medical workers left the Gaza Strip after getting stuck at the hospital where they were providing care, the White House said.

HUMANITARIAN FEARS

The Israel Defense Forces said troops killed more than 60 militants in Jabalia in recent days and located a weapons warehouse in a "divisional-level offensive".

A divisional operation would typically involve several brigades of thousands of troops each, making it one of the biggest of the war.

"The 7th Brigade's fire control centre directed dozens of airstrikes, eliminated terrorists and destroyed terrorist infrastructure," the IDF said.

At least 35,303 Palestinians have now been killed, according to figures from the enclave's health ministry, while aid agencies have warned repeatedly of widespread hunger and dire shortages of fuel and medical supplies.

Israel says it must capture Rafah to destroy Hamas and ensure the country's safety. In the Hamas attack on Oct. 7, 1,200 people died in Israel and 253 were taken hostage, according to Israeli tallies. About 128 hostages are still being held in Gaza.

Israel said on Friday that its forces retrieved the bodies of three people killed at the Nova music festival in Israel on Oct. 7 and taken into Gaza.

In response, Hamas said negotiations were the only way for Israel to retrieve hostages alive: "The enemy will not get its prisoners except as lifeless corpses or through an honourable exchange deal for our people and our resistance."

Talks on a ceasefire have been at an impasse.

'TRAGIC WAR'

Israeli tanks and warplanes bombarded parts of Rafah on Friday, while the armed wings of Hamas and Islamic Jihad said they fired anti-tank missiles and mortars at forces massing to the east, southeast and inside the Rafah border crossing with Egypt.

UNRWA, the main U.N. aid agency for Palestinians, said more than 630,000 people had fled Rafah since the offensive began on May 6.

"They're moving to areas where there is no water - we've got to truck it in - and people aren't getting enough food," Sam Rose, director of planning at UNRWA, told Reuters on Friday by telephone from Rafah, where he said it was eerily quiet.

At the International Court of Justice, or World Court, in The Hague, where South Africa has accused Israel of violating the Genocide Convention, Israeli Justice Ministry official Gilad Noam defended the operation.

The South African legal team, which set out its case for fresh emergency measures the previous day, framed the Israeli military operation as part of a genocidal plan aimed at bringing about the destruction of the Palestinian people.

Reuters

RUSSIAN PERSPECTIVE

Putin raises issue of Zelensky’s legitimacy

Vladimir Zelensky’s legitimacy as president of Ukraine is an important question not only to his own country, but to Moscow as well, Russian President Vladimir Putin has said. He explained that Zelensky’s status will have a bearing on any potential agreement between the two belligerent countries.

Zelensky’s five-year term in office comes to an end on May 20. Ukrainians were scheduled to head to the polls to elect a new leader on March 31; however, he announced in December 2023 that no presidential or parliamentary elections would be held as long as martial law remains in force. It was imposed after the start of the conflict with Russia in February 2022, and has been repeatedly extended by the Ukrainian parliament since. Last Wednesday, lawmakers prolonged martial law by another three months.

Speaking at a press conference while on a state visit in China on Friday, President Putin said the issue of Zelensky’s legitimacy is something that “Ukraine’s own political and legal system” must address, “first of all the Constitutional Court.” He noted that the country’s constitution foresees “different variants.”

“But to us this does matter because if it comes to the signing of any documents, surely, we should sign documents in such a momentous area with the legitimate authorities,” Putin explained. He added that the Kremlin had regularly stayed in touch with President Zelensky before the hostilities broke out.

The Ukrainian constitution explicitly forbids holding presidential or parliamentary elections in times of war. In March, a senior official from Ukraine’s central election commission clarified to the media that Zelensky’s term would be prolonged automatically until conditions were right to hold an election. This month, Justice Minister Denis Maliuska confirmed this to the BBC.

In late April, Kremlin spokesperson Dmitry Peskov said that a “moment will come soon when many people, including those inside Ukraine, will question [President Zelensky’s]legitimacy.

A survey conducted by Ukrainian pollster SOCIS in early March showed that the incumbent president would have lost to the former top Ukrainian commander, General Valery Zaluzhny, had they both run. The following month, German newspaper Tagesspiegel reported that public support for an “authoritarian” Zelensky had “sunk to 61%.”

In March, Ukrainskaya Pravda claimed, citing MPs, that Zelensky had virtually stripped parliament of its powers and established de facto personal rule. Around the same time, a lawmaker from the president’s own party openly suggested that Ukraine needs a dictatorship to survive the conflict with Russia.

WESTERN PERSPECTIVE

Ukraine braces for heavy battles as Putin says Russia carving out 'buffer zone'

Ukraine's top commander warned on Friday of "heavy battles" looming on the war's new front in the northeastern Kharkiv region as Russian President Vladimir Putin said Moscow was carving out a "buffer zone" in the area.

Russian forces attacked the Kharkiv region's north last Friday, making inroads of up to 10 kilometres (6 miles) and unbalancing Kyiv's outnumbered troops who are trying to hold the line over a sprawling front nearly 27 months since the invasion.

Colonel-General Oleksandr Syrskyi said the attack had expanded the combat zone by around 70km and that Russia had launched its incursion ahead of schedule after "it noticed the deployment of our forces".

"We understand there will be heavy battles and that the enemy is preparing for that," the head of the Ukrainian armed forces wrote in a statement on the Telegram app.

Russian forces have the initiative on the battlefield and are slowly advancing in the east, exploiting Ukrainian shortages of manpower and months of delays in arms supplies from the West.

Speaking during a state visit to China, Putin said Russia was creating a "buffer zone" in Ukraine's northeast to protect its own border regions, but said capturing the city of Kharkiv, Ukraine's second largest, was not part of the current plan.

Faced with Russian airstrikes throughout the war, Kyiv has scrambled to develop drones and missiles and staged strikes on facilities in Russia it says are being used to support the war and bomb Ukrainian towns, cities and power facilities.

Kharkiv's mayor said a Russian missile strike on Friday had killed two people and injured 25 more in the city.

Putin told a news conference in China that the assault on Kharkiv region was a response to Kyiv's shelling of Russian border regions such as Belgorod where he said civilians were dying.

"They are shooting directly at the city centre, at residential areas. And I said publicly that if this continues, we will be forced to create a security zone, a buffer zone. That is what we are doing," he said.

Russian forces were able to advance 10 kilometres in one place in Kharkiv region, although Ukrainian forces have "stabilised" the front, President Volodymyr Zelenskiy told Ukrainian media outlets in comments published on Friday.

Moscow's troops have captured 12 villages during the current incursion, Russia's defence ministry said.

EASTERN FRONT

Russia is staging its heaviest assaults in the eastern Donetsk region, according to data compiled by the Ukrainian General Staff, which said the Pokrovsk front had faced the most regular assaults in recent days.

Syrskyi said Ukrainian forces were also preparing defensive lines for a possible Russian assault on the Sumy region, which would mark another front more than 100 km to the north of Kharkiv.

Kyiv says Russia has small units of forces near the Sumy region.

"We note that the actions (of Russian forces) are systematic," said Volodymyr Artiukh, head of the Sumy region's military administration.

"Shelling continues, in fact, along the entire border, with an intensity of 200-400 explosions per day... The intensity of enemy sabotage groups has increased," he said.

An expanding front is particularly challenging for Ukraine at a time when its military is in need of replenishment.

Zelenskiy signed a law on Friday allowing some categories of convicts to serve in the army, parliament's website showed.

The move provides only a potential maximum 20,000 people who could join the army, Kyiv officials say. Zelenskiy also signed into law tougher fines for draft dodging.

Russian officials said on Friday that Ukraine had mounted an unusually large wave of overnight drone attacks, killing two people in Belgorod region and setting fire to an oil refinery at Tuapse on the Black Sea.

The attacks, a Ukrainian intelligence source said, targeted an electricity substation in occupied Crimea, an oil depot and railway station in Russia's Black Sea port of Novorossiysk as well as the Tuapse refinery.

Russia conducted its own long-range attack on Ukraine overnight, but Kyiv's military said it shot down all 20 incoming drones over the regions of Kharkiv, Poltava, Vinnytsia, Odesa and Mykolaiv.

Separately, U.S. commercial satellite company Maxar said imagery showed that a long-range Ukrainian strike on the Moscow-controlled Belbek airbase in Crimea destroyed three Russian warplanes and a fuel facility near its main runway this week.

RT/Reuters

Nigeria’s new Dangote mega refinery near Lagos plans to purchase millions of barrels of US crude over the next year, highlighting the challenges Africa’s largest oil producer faces in boosting its own output. According to an analysis by Thisday, the refinery, built by Africa’s richest man Aliko Dangote, has issued a term tender for the purchase of 2 million barrels a month of West Texas Intermediate (WTI) Midland crude for 12 months starting in July, according to a document seen by Bloomberg. The tender closes on May 21.

The request for US oil underscores the refinery's growing influence in global crude and fuel markets and reflects Nigeria’s ongoing struggle to increase its crude production, which remains well below capacity. Dangote is opting for cheaper and more reliable foreign supplies due to insufficient and inconsistent local crude availability.

"Supply of Nigerian crude is insufficient or unavailable and sometimes unreliable," said Elitsa Georgieva, Executive Director at Citac, an energy consultancy specializing in the African downstream sector. She added that WTI is available, reliably supplied, and competitively priced, making it a sensible choice for the refinery.

Nigeria has been unable to meet its OPEC+ quota for at least a year, producing about 1.45 million barrels per day of crude and liquids in April, far below its estimated capacity of 2.6 million barrels per day. Factors such as crude theft, aging pipelines, low investment, and divestments from oil majors have contributed to declining production.

Despite assurances from the federal government and the Nigerian National Petroleum Company Limited (NNPC) about meeting the country’s OPEC quota, Nigeria recorded an estimated underproduction of 30 million barrels in the first four months of 2024. Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that Nigeria produced an average of 1.32 million barrels per day, below the revised target of 1.58 million barrels per day.

The data further revealed that Nigeria produced 44.2 million barrels in January, 38.3 million barrels in February, 38.1 million barrels in March, and 38.4 million barrels in April. Overall, Nigeria drilled 160 million barrels from January to April, instead of the expected 190 million barrels, reflecting a 17.1 percent deficit.

In November 2023, OPEC+ revised Nigeria’s oil output target to 1.58 million barrels per day for 2024, lower than the 1.74 million barrels per day target due to consistent underperformance. Despite significant spending to address insecurity in the Niger Delta, issues such as oil theft, vandalism, and sabotage persist.

Nigeria’s projected oil production in its budget for this year is about 1.78 million barrels per day, with a benchmark price of $77.96 per barrel. However, the government has not clarified how it plans to bridge the gap between projected and actual production. To ensure sufficient local supply for the 650,000 barrels per day Dangote refinery, Nigeria’s upstream regulators recently introduced new draft rules requiring oil producers to sell crude to domestic refineries.

The Dangote refinery, currently operating at about half capacity, is leveraging cheaper US oil imports for up to a third of its feedstock. Since the start of the year, it has received at least one supertanker carrying about 2 million barrels of WTI Midland each month. An official at Dangote declined to comment, Bloomberg reported.

In a significant development, the Dangote refinery has started exporting finished products to Europe. For the first time, a cargo of Low-Sulphur Straight Run Fuel Oil (LSSR) produced at the Lekki Free Trade Zone facility reached the European market, expanding the company’s revenue opportunities. The 90,000-ton cargo was loaded in Lekki on April 25 and discharged in Rotterdam on May 13, according to trade analytics firm Kpler. The cargo is likely to be used as a blendstock to produce very-low sulphur fuel oil (VLSFO).

Approximately 72 percent of the fuel oil exported from Dangote has been delivered to the US since the refinery's first LSSR export tender in mid-February. A total of nearly 620,000 tons has been delivered so far. Another LSSR shipment of 83,400 tons left the refinery on May 7 and is expected to arrive in France on May 22, although market participants believe this may not be the cargo’s final destination.

LSSR price assessments on an FOB Amsterdam-Rotterdam-Antwerp (ARA) basis have remained at a $5 per barrel premium to front-month ICE Brent crude futures this week, narrowing from an 18-month high of $7.50 per barrel in mid-April. Maintenance work on fluid catalytic cracking (FCC) units at some refineries, which process LSSR and low-sulphur vacuum gasoil to increase gasoline yields, affected these price dynamics.

The Federation Account Allocation Committee (FAAC) announced that the federal, state, and local governments shared N1.2 trillion for April, 2024. This information was disclosed in a communiqué released at the conclusion of the May 2024 FAAC meeting by Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant-General of the Federation (OAGF), on Thursday.

The allocation for April represents an increase of N85 billion compared to the N1.12 trillion distributed in March. The breakdown of the N1.2 trillion includes N284 billion in distributable statutory revenue, N466 billion in distributable value-added tax (VAT) revenue, N18 billion from the electronic money transfer levy (EMTL), and N438 billion from exchange difference revenue.

FAAC reported that the total revenue available in April 2024 was N2.1 trillion. Deductions included N80 billion for the cost of collection and N903 billion for transfers, interventions, and refunds. Gross statutory revenue for April was N1.2 trillion, which is N216 billion more than the N1.01 trillion received in March. VAT gross revenue was N500 billion, down by N48 billion from the N549 billion recorded in March.

From the N1.2 trillion total distributable revenue, the federal government received N390 billion, states received N403 billion, and local governments got N293 billion. Additionally, N120 billion was distributed to states as 13 percent derivation revenue.

Out of the N284 billion in distributable statutory revenue, the federal government received N112 billion, states got N56 billion, and local governments received N43 billion, with N71 billion allocated as derivation revenue to the states.

From the N466 billion in distributable VAT revenue, the federal government received N69 billion, states received N233 billion, and local governments got N163 billion. The N18 billion EMTL revenue was divided with the federal government getting N2.704 billion, states N9 billion, and local governments N6 billion.

Regarding the N438 billion exchange difference revenue, the federal government received N205 billion, states got N104 billion, and local governments received N80 billion, with N48 billion distributed as 13 percent derivation revenue to the benefiting states.

FAAC also noted significant increases in oil and gas royalties, companies’ income tax (CIT), excise duty, petroleum profit tax (PPT), EMTL, and CET levies in April. However, import duty and VAT saw considerable decreases. The balance in the excess crude account (ECA) for April was $473,754.

The speakers of Nigeria’s 36 state houses of assembly have endorsed the national assembly's efforts to establish state police. This decision was outlined in a communiqué released after the Conference of Speakers of State Legislatures met in Abuja on Thursday. The communiqué was signed by Adebo Ogundoyin, Speaker of the Oyo House of Assembly and Chairman of the Conference.

The speakers believe that state policing would address the growing insecurity in the country. "To achieve this, the Conference appeals to the National Assembly, Presidency, and other relevant stakeholders to leverage the ongoing constitution review exercise," the communiqué stated.

Both chambers of the national assembly are currently working to amend the 1999 Constitution to include provisions for state police.

Despite this support, last month, Inspector-General of Police Kayode Egbetokun expressed concerns that Nigeria is not yet “mature” for state police.

On February 15, the federal government established a committee to explore the creation of state police. Mohammed Idris, Minister of Information and National Orientation, announced that President Bola Tinubu and state governors had agreed on the framework for the concept.

The Organised Labour has expressed strong disapproval of the Federal Government’s plan to use the N19.66 trillion pension funds for infrastructure development. This stance was detailed in a joint letter from the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) addressed to the Minister of Finance on Thursday in Abuja.

The letter, signed by NLC President Joe Ajaero and TUC Deputy President Tommy Etim-Okon, was titled “Leave our Pension Fund Alone: Do not Tamper with Workers’ Funds.”

The Labour leaders stated that the announcement has caused significant anxiety among Nigerian workers, who are the primary contributors to these funds.

"We urge the government to reconsider its plans to tap into pension funds and instead explore sustainable financing options that do not compromise the retirement security of Nigerian workers. Organised Labour will resist any action that seeks to undermine the retirement savings of Nigerian workers," the letter read.

The letter also alleged that the government has already accessed nearly 70 percent of the total pension funds, a situation described as both alarming and unacceptable. It emphasized that workers’ savings are meant for their retirement security, not for government projects.

The labour unions stressed the importance of halting any further plans to use these funds, citing past instances of lack of transparency and accountability in government borrowing practices. They raised concerns about the government's proposal to use these funds for housing and infrastructure, questioning the fiscal prudence and responsible governance of such a move.

The unions also questioned where the government plans to source the additional N20 trillion, especially given the ambiguities surrounding previous borrowing practices. This lack of clarity, they argued, only fuels skepticism about the initiative’s feasibility and sustainability.

"Nigerian workers demand assurances that their retirement funds will not be further exploited by the Federal Government. This is particularly concerning since the PENCOM Board has not been constituted as required by law. It is unclear which Board is overseeing these discussions with the government. Borrowing from the fund is not supported by the Pension Act," the letter continued.

The letter criticized the government’s lack of consultation with key stakeholders in the pension industry, noting that neither the NLC nor the TUC, who represent the owners of the pension fund contributions, were informed about the government’s intentions. This lack of transparency, they argued, undermines the sanctity of pension funds.

The unions insisted that any initiative to leverage pension funds for national development must be executed with transparency, accountability, and respect for workers’ rights and interests. They also opposed the idea of the government competing with other users of funds in the pension fund market.

"We remain resolute in our commitment to safeguarding the welfare and interests of workers across the country," the letter concluded.

The Nigerian Education Loan Fund (NELFUND) has announced that its student loan application portal will officially open on May 24, 2024. Akintunde Sawyerr, Managing Director of NELFUND, made this announcement in a statement on Thursday, marking a significant step toward making education more accessible and inclusive for all Nigerian students.

"Through the portal, students can now access loans to pursue their academic aspirations without financial constraints," Sawyerr stated. The announcement, signed by Nasir Ayitogo, the Fund’s Media and Public Relations Lead, emphasized that the portal offers a user-friendly interface for students to conveniently submit their loan applications.

"We encourage all eligible students to take advantage of this opportunity to invest in their future and contribute to the growth and development of our nation," the statement added.

Students can access the portal at www.nelf.gov.ng to begin their applications. For assistance, they can contact the Fund via email at This email address is being protected from spambots. You need JavaScript enabled to view it. or through their social media handles.