Thanks to investors' insatiable appetite for artificial intelligence, Nvidia (NVDA) — a key player in powering AI advancements — has become a market darling. The stock has skyrocketed, showing a 70% increase year to date and a staggering 1,749% return over the past five years.

The surge in Nvidia’s share price has significantly increased the wealth of its founder and CEO, Jensen Huang. According to Forbes, Huang now ranks as the 20th richest person in the world, with a net worth of $72.2 billion.

However, he didn’t begin his career in the billionaire club — far from it.

During a recent “View From The Top” interview at Stanford Graduate School of Business, Huang was asked why he created a flat organizational structure for his company. In his response, he reflected on his humble beginnings.

“To me, no task is beneath me because remember, I used to be a dishwasher, and I mean that, and I used to clean toilets. I mean, I cleaned a lot of toilets, I've cleaned more toilets than all of you combined, and some of them, you just can't unsee,” he said.

Huang’s light-hearted remark elicited laughter from the audience.

He continued, “I don't know what to tell you, that's life, and so you can't show me a task that's beneath me.”

Huang emphasizes his willingness to help others by sharing his approach to problem-solving. He states that his assistance is not about whether a task is beneath him but about being of service: by demonstrating his reasoning process on various challenges — whether they're ambiguous, incalculable, or seemingly daunting — he empowers others.

Resilience matters

Huang doesn’t hesitate to make bold statements. During another Stanford event, he made some intriguing remarks about expectations, pain and suffering.

Speaking at the Stanford Institute for Economic Policy Research last month, Huang was asked what advice he’d give to students to enhance their chances of success.

Rather than prescribing specific actions, he shared this insight: "One of my great advantages is that I have very low expectations."

Huang went on to note that low expectations aren’t typical among Stanford graduates — even though he himself is an alumnus.

“Most Stanford graduates have very high expectations, and you deserve to have high expectations because you came from a great school. You were very successful. You were top of your class. Obviously, you were able to pay for tuition. And then you’re graduating from one of the finest institutions on the planet. You’re surrounded by other kids that are just incredible,” he elaborated.

However, Huang highlighted a significant drawback to this mindset, stating, “People with very high expectations have very low resilience. And unfortunately, resilience matters in success.”

‘I hope suffering happens to you’

Huang believes that the ability to endure setbacks and suffering is crucial for success. However, he’s unsure how to effectively teach this resilience to students — it may be something they need to experience firsthand.

“I don’t know how to teach it to you except that I hope suffering happens to you,” he said.

He shared that, although he grew up in an environment that fostered success, he also faced many challenges. Within his company, he uses the term "pain and suffering" with glee, seeing such challenges as opportunities to strengthen and refine the character of the organization.

For Huang, true greatness in individuals comes from character, not intelligence, and character is shaped by experiences of adversity.

“And so if I could wish upon you — I don’t know how to do it — but for all of you Stanford students, I’d wish upon you ample doses of pain and suffering,” he said.

Put simply: no pain, no gain.

 

MoneyWise

Former President Goodluck Jonathan emphasized the importance of establishing state police to tackle insecurity during a national security dialogue in Abuja. He stressed the need for a framework preventing abuse of state police powers and highlighted their success in stabilizing security in Bayelsa during the late 90s.

Jonathan underscored concerns about ensuring state police autonomy while preventing misuse by governors. He urged careful consideration of the relationship between state and national security structures. Furthermore, he called for equipping state police adequately to combat criminals effectively.

Vice-President Kashim Shettima pledged federal government support for dialogue outcomes, while former head of state Abdulsalami Abubakar emphasized the importance of government transparency. However, the Inspector General of Police, represented by Ben Okolo, opposed state police, suggesting instead the integration of FRSC and NSCDC into federal policing. This stance was met with disapproval from the audience.

The Minister of Education, Tahir Mamman, has announced that candidates under the age of 18 will no longer be admitted to tertiary institutions.

This directive, given during a monitoring exercise of the 2024 Unified Tertiary Matriculation Examination (UTME) in Bwari, Federal Capital Territory, aims to align with the 6-3-3-4 education system.

Mamman expressed concern over parents pressuring underage students into university admission, emphasizing the need for children to mature before entering higher education.

He highlighted the challenges faced by young students adjusting to university life and urged parents to refrain from undue pressure. The minister stressed the importance of allowing children to transition from a controlled to an independent environment at an appropriate age to ensure their success in university education.

Babcock University, located in Ilishan-Remo, Ogun State, is mourning the loss of Yinka Olomojobi, a professor, who was tragically shot by suspected gunmen over the weekend. Olomojobi, a lecturer at the university's School of Law and Security Studies, was attacked at Ajadeh Event Centre in Iperu, Ogun State.

Joshua Suleiman, the university's Director of Communication and Marketing, confirmed the incident, expressing the institution's shock and sorrow.

While details of the incident are still emerging, witnesses reported that the gunmen, dressed in black attire, also abducted two individuals and injured others while fleeing the scene.

The Ogun State Police Command has arrested one suspect, a security guard named Awada Ishaya from Plateau State, in connection with the incident.

Suspected terrorists have launched devastating attacks on multiple communities in Kankara Local Council of Katsina State, resulting in at least 15 deaths and the abduction of several married women.

The assaults, which occurred at Unguwan Maikawo, Gatakawa, and Unguwan Topa communities, left a trail of destruction and trauma.

In Katsina alone, the terrorists killed five individuals, including children playing football, and abducted married women, some of whom were nursing mothers. The attacks in Tsafe town, Zamfara State, further heightened the sense of insecurity, with two locals killed and five injured. Residents expressed fear and called for increased security presence to curb the escalating violence. Government officials acknowledged the attacks and vowed to intensify efforts to combat terrorism.

ISRAEL’S REPORTS

IDF: The Head of the Intelligence Directorate, MG Aharon Haliva, in coordination with the Chief of the General Staff, has requested to end his position, following his leadership responsibility as the Head of the Intelligence Directorate for the events of October 7th.

In a decision with the Chief of the General Staff and with the approval of the Minister of Defense, it was decided that MG Aharon Haliva will end his position and retire from the IDF, once his successor is appointed in an orderly and professional process.

In his request, MG Aharon Haliva noted his high appreciation for the work of the Intelligence Directorate personnel during the war.

The Chief of the General Staff thanked Major General Aharon Haliva for his 38 years of service in the IDF, during which he made significant contributions to the security of the State of Israel as both a combat soldier and commander.

Attached is the letter from the Head of the Intelligence Directorate, MG Haliva: https://IDFANC.activetrail.biz/ANC220420247248723978

** IDF: As the Passover holiday begins the IDF is at full readiness in all areas

During the Passover holiday, the IDF continues its operational activity and remains fully alert in all areas.

In the Southern Command, the 162nd Division, led by the Nahal Brigade, initiated an operation to thwart terrorism in the central Gaza Strip. The soldiers continue to eliminate terrorists, locate, and dismantle terrorist infrastructure. In the last day, the forces identified a cell of terrorists posing an immediate threat to the soldiers which was targeted by Israel Air Force jets.

In the Northern Command, numerous IDF soldiers on land, air, and sea, are deployed along the northern border from Mount Hermon to Rosh HaNikra, in strong defense and ready for any attack. The forces are conducting ambushes, locating, and eliminating terrorists who pose a threat to IDF soldiers and are targeting command centers, weapon storage facilities, and terrorist infrastructure belonging to the Hezbollah terrorist organization.

In the Central Command, IDF soldiers are deployed and continue their defense efforts, ready to maintain security on roads and to prevent terrorism.

IDF soldiers and security forces apprehended 13 wanted individuals in the various regional brigades last night.

During the last week, the soldiers in the Benjamin region operated to locate the terrorist who murdered Binyamin Achimair, on April 12.

IDF soldiers are currently operating in Hebron, in the residences of the terrorists who carried out the attack earlier today in Jerusalem, and are investigating individuals suspected of assisting them.

Attached is footage of IDF activities in the Southern Command: https://bit.ly/4d1iTMR

Attached are related photos: https://IDFANC.activetrail.biz/ANC87695

Attached is footage of IDF activities in the Northern Command: https://bit.ly/4b2ed7w

Attached are related photos: https://IDFANC.activetrail.biz/ANC97843

Attached is footage of IDF activities in the Central Command: https://bit.ly/3W438yB

Attached are related photos: https://IDFANC.activetrail.biz/ANC6783

** IDF: Following the sirens that sounded in northern Israel, approximately 35 launches were identified crossing from Lebanon into the area of Ein Zeitim in northern Israel. No injuries were reported. IDF troops struck the sources of the launches.

A short while ago, IAF fighter jets struck Hezbollah terrorist infrastructure in southern Lebanon. Earlier today, two military structures where Hezbollah terrorists operated were struck in the areas of Arzoun and Odaisseh in southern Lebanon.

Attached is a video of the strikes: https://bit.ly/4aJiPzv

 

HAMAS’ REPORTS

Hamas leader Abdel Hakim Hanini

The ramming operation in the occupied city of Jerusalem this morning is a new confirmation of the resistance’s resolve and its commitment to its commitment.

The timing and location of the operation have their own connotations, coinciding with the violations and settlement plans that the Blessed Al-Aqsa Mosque is being subjected to.

The recent developments in the West Bank and Jerusalem and the specific operations that took place are an indication of the extent of the anger and latent revolution among our people.

We call on the masses of the West Bank and Jerusalem to show greater solidarity and rise up against the occupation.

** Resistants target the occupation forces with explosive devices “elbows” during the ongoing storming of the town of Jalboun, east of Jenin

** Mujahideen Brigades - Occupied West Bank:

By God’s grace, our mujahideen were able to clash with the Zionist enemy forces penetrating the Balata camp.

#Al-Aqsa Flood

** Al-Qassam Mujahideen managed to snipe a Zionist soldier in Beit Hanoun in the northern Gaza Strip

Al-Qassam Brigades target a Zionist D9 military bulldozer with an Al-Yassin 105 shell in Beit Hanoun, northern Gaza Strip.

Al-Qassam Brigades destroy a gathering of occupation forces penetrating Beit Hanoun in the northern Gaza Strip with mortar shells.

 

Israel Defense Forces/Hamas Brigade al-Qassam

RUSSIAN PERSPECTIVE

New US aid package will just kill more Ukrainians – Kremlin

Washington’s $61 billion pledge to Kiev will make little difference on the battlefield, Russian presidential spokesman Dmitry Peskov has said.

The US House of Representatives approved a $95 billion foreign aid package, almost two thirds of which would be spent on Ukraine-related programs. The Kremlin, however, doesn’t appear the slightest bit alarmed.

“Fundamentally, this will not change the situation on the battlefield,” Peskov told reporters on Monday. 

Pointing to the steady Russian advances along the front, Peskov said the dynamics of the conflict are now “absolutely clear to everyone,” and that the money and weapons the US will allocate to Ukraine “will not lead to a change in this dynamic.”

“They will lead to new casualties among Ukrainians, more Ukrainians will die, Ukraine will suffer major losses,” the presidential spokesman said.

Moreover, he noted, the bulk of the aid money is supposed to stay in the US, one way or another. The White House itself argued this to Congress as one of the selling points, saying that the package was a stimulus for the US military-industrial complex and manufacturing base.

“In principle, nothing has changed,” Peskov said, noting that Russian President Vladimir Putin fully expected the US lawmakers to vote the way they did.

Reacting to the vote on Saturday, Russian Foreign Ministry spokeswoman Maria Zakharova said the US was using Ukrainians as “cannon fodder”and hoping to keep Kiev on life support until after the November presidential election. In the end, she said, the US will end up facing a “loud and humiliating fiasco on a par with Vietnam or Afghanistan.”

The newest batch of US aid might help slow down the Russians but won’t stop them, several Ukrainian officers have told Financial Times. No amount of weapons and ammunition from the West can solve Kiev’s biggest problem: the lack of manpower, the outlet noted.

Kirill Budanov, the head of Ukraine’s military intelligence, also predicted “a rather difficult situation” on the battlefield for the Kiev government in the coming months. 

 

WESTERN PERSPECTIVE

Russian air strike took out TV tower in Ukraine's Kharkiv, Zelenskiy says

A Russian missile strike that broke in half a 240-metre (787-foot) television tower in Kharkiv on Monday is part of a deliberate effort by Moscow to make Ukraine's second largest city uninhabitable, President Volodymyr Zelenskiy said.

Dramatic footage obtained by Reuters showed the main mast of the television tower breaking off and falling to the ground in the city that has been pounded by missile and drone strikes for weeks.

The Ukrainian leader said he told U.S. President Joe Biden about the airstrike that was carried out several minutes before they spoke by telephone.

"It is Russia's clear intention to make the city uninhabitable," he said in a readout of the call published on the Telegram messaging app.

Later, in his nightly video address, the president said the attack was "an obvious attempt at intimidation so that the terror was visible to the whole city and an attempt to limit Kharkiv's access to communication and information".

CLOSE TO THE BORDER

The northeastern city of Kharkiv with a population of 1.3 million lies just 30 km (18 miles) from the Russian border, making it an easy target for ballistic missiles and other weapons as Ukraine's air defences have dwindled.

Its power facilities have been damaged particularly badly since Russia last month began targeting the energy system with massive strikes.

"At the moment there are interruptions to the digital television signal," regional governor Oleh Synehubov said.

There had been no casualties because its workers had taken shelter, he added.

Synehubov later reported a missile attack had triggered a fire at a poultry farm outside Kharkiv, but without casualties. And prosecutors said one person was killed in the shelling of a village southeast of the city.

Reuters footage filmed at the scene of the aftermath showed the collapsed section of the tower lying in a forested strip nearby. Buildings next to the tower had been badly damaged by falling debris.

The Service for State Special Communications said the structure of the tower had been "partially damaged" in what prosecutors said appeared to have been a strike with a Kh-59 cruise missile.

It said there was "temporarily" no television signal and that they were working to restore it, urging residents of the city and region without digital television signal to use cable or online television or the radio.

The footage obtained by Reuters did not capture the impact of a missile, but showed a cloud of smoke rise into the sky as the mast fell.

The video was verified by corroborating video from another angle showing the same moment the top of the tower collapsed.

Russia first attacked Kharkiv's television tower several times in early March 2022 soon after it launched its full-scale invasion. The signal was disrupted at the time.

Moscow has recently stepped up its attacks, while Ukraine is suffering a shortage of air defence capabilities. Kharkiv and the surrounding region have experienced the most intense strikes.

 

RT/Reuters

Josiah Majebi is the fifth chief judge of Kogi State (in North-Central Nigeria) in four years and the fourth to exist almost entirely in the pocket of the state governor. He has been in office as substantive chief judge since the beginning of February 2023, having acted in that role since 26 June 2022, when his predecessor, Richard Olorunfemi, retired.

Henry Olusiyi served in that office for just under seven months from the end of June 2020 until January 2021. Sunday Otuh, who succeeded him, spent eight months in office before retiring in September 2021.

The last Chief Judge of Kogi State who attempted to hold that office with dignity and independence, Nasir Ajanah, paid with his life, un-mourned and exiled from the state. He was the second Chief Judge of the State to be politically lynched by the government of Kogi State in one decade.

At the beginning of April 2008, the Kogi State House of Assembly, defying an order of the state High Court, adopted a resolution asking the state Governor to remove long-serving Chief Judge of the state, Umaru Eri. On that basis, then acting governor, Clarence Olafemi, promptly announced the sack of the Chief Judge on 2 April 2008 and designated another judge, Sam Ota, to act in his place.

In his defence, Umaru Eri claimed that his crime was that he had declined the request of the politicians to act as go-between in bribing the election petition tribunal on behalf of the then state governor, whose election was in dispute. On 16 May, 2008, Alaba Ajileye, a judge of the High Court of Kogi State, reversed the sack and reinstated Umaru Eri.

Eleven years later, on 18 June 2019, Alaba Ajileye presided again in deciding a case that seemed uncannily to reprise issues in his earlier decision. As with the 2008 decision, the claimant in 2019 was another Chief Judge of Kogi State, Nasir Ajanah with his Chief Registrar, Yahya Adamu. The defendants included the Kogi State House of Assembly, its Speaker, and the State Governor, Yahaya Bello.

At the directive of Governor Bello, the Secretary to the Government of Kogi State wrote on 14 November, 2018 to Chief Judge Nasir Ajanah, asking him to provide “the payroll of judicial staff for the ongoing pay parade of civil servants in the state.”

At the time, the Governor was a defendant in the court of the Chief Judge, so the Chief Registrar responded to the letter and explained that the judiciary is a self-accounting and co-equal branch of government supervised by the state Judicial Service Commission.

An affronted Bello wrote under his own name to Walter Onnoghen, then chief justice of Nigeria and chair of the National Judicial Council (NJC), asking the NJC to find the Chief Judge guilty of misconduct and requiring that he “step aside and (an) Acting Chief Judge (be) allowed to take his place.”

While his petition was still waiting for the attention of the NJC, Bello resorted to political self-help. He referred the perceived effrontery of Nasir Ajannah to the State House of Assembly, which promptly constituted an investigation committee. The Chief Judge sued. While his suit was pending, on 2 April 2019, the State House of Assembly adopted a resolution asking Bello to remove the Chief Judge and also requiring disciplinary action against the Chief Registrar. On 18 June 2019, Alaba Ajileye sitting as the High Court of Kogi State in Kotonkarfe, determined that the Kogi State House of Assembly and the Governor acted unlawfully in seeking to remove the Chief Judge.

The reaction of the governor was bestial. He first went after Ajileye, a man of courage and learning whose judicial record was unblemished. With a doctorate degree in law, Ajileye was an expert in the rarefied subject of digital evidence. Following this judgment, however, Bello’s government made it known that they could no longer guarantee his safety. Yet, when he was put forward for elevation to the Court of Appeal, the same Kogi State government actively blocked it. A man who would easily have adorned the Supreme Court with distinction, Ajileye retired from the High Court in February 2023 and has since then forged a career as a scholar and academic.

Turning to the state Chief Judge, meanwhile, Bello made life unbearable for Nasir Ajannah. He began by banishing the man from official state functions. When Chief Judge Ajannah attended the swearing in of the new Grand Khadi of Kogi State on 21 May 2020, the Chief Security Officer to Yahaya Bello informed him that “the governor gave a directive that he should not be allowed to attend the function.”

In the middle of the Covid-19 pandemic, Bello made Ajannah persona non-grata in the state. As a result, he was forced into internal displacement in Abuja, where his personal arrangements were worse than transitory. While in hiding in Abuja, Ajannah contracted Covid and died in isolation in Gwagwalada, in the Federal Capital Territory, on 28 June 2020. His death went unacknowledged and even the institutions of the judiciary were reluctant to mourn his passing.

The men who followed Ajannah in the office of Chief Judge of Kogi State learnt to stoke the vanities of Bello and avoid his anger. Ahead of his departure from office at the end of eight years as governor of Kogi State in January 2024, Josiah Majebi as chief judge and chair of the Kogi State Judicial Service Commission, prepared a list of candidates for nomination as judges of the High Court of Kogi State. At the top of the list was a wife to Bello, the basis of whose claim to the nomination was the dutiful fulfilment of the duties of connubium in Bello’s bedroom. For the Chief Judge, it was also proof that he had truly abjured any pretensions to a mind of his own.

Alarmed at what they saw as perversion of the system of judicial appointments, a group of seven Senior Advocates of Nigeria (SANs) from the state wrote to Majebi to dissuade him from this course of action. In January, they sued challenging his judicial nominations. Pending the outcome, the NJC suspended the process of appointment to the Kogi State judiciary. On 18 April, James Omotoso, a judge of the Federal High Court in Abuja, many of whose judgments usually have something of a smell problem about them, implausibly ruled that these SANs had no legitimate interest in the process of appointment of judges in their state and that, in any case, the discretion of the NJC in appointment of judges was effectively not open to review.

It was the day after Bello’s chosen successor and blood relative, Usman Ododo, chose to turn his predecessor into a fugitive from the legal process and two days after Ododo opened his case in the petition questioning the lawfulness of his election as governor of Kogi State. As a bungling Economic and Financial Crimes Commission (EFCC) waited to arrest Yahaya Bello in Abuja, one IA Jamil, a judge of the High Court of Kogi State, issued an order claiming to restrain the Commission from doing its job.

According to the order of the judge, the case which was filed over two months earlier on 8 February, was hurriedly assigned while the siege was on going in Abuja, argued, heard and decided and the judge quickly signed the order and handed it to Governor Ododo to take with him to Abuja, from where he spirited his cousin away from the legal process in a blaze of gunfire. The court was almost assuredly disingenuous about the date of filing. In all likelihood, the case was filed the same day on 17 April and then back-dated.

The EFCC now claims it has declared Yahaya Bello a fugitive but the real question will be how a compromised and complicit judicial leadership will now treat the nomination of his unqualified wife as a judge and the petition against the declaration of his violent cousin as governor of Kogi State. The judges who currently control Nigeria’s criminal politics now must show how much they owe Bello.

** Chidi Anselm Odinkalu, a lawyer, teaches at the Fletcher School of Law and Diplomacy and can be reached through This email address is being protected from spambots. You need JavaScript enabled to view it..

Exceptional talent will do exceptional work when their personal values align with their workplace values.

Business leaders across the globe worry about attracting and retaining top talent, especially as remote and hybrid workforces are becoming the norm. In their responses to surveys they often list it as a main inhibitor of profitable growth into the future!

Despite this, most business leaders and managers prioritise other tasks over recruitment and talent selection rather than seeing it as a vital part of their jobs. In addition, many business leaders and managers do not have the skills required to ensure that the right people are found and placed in the right jobs.

Statistically, using traditional recruitment methods has a 60% failure rate, resulting in an enormous waste of time and money. Getting recruiting right is therefore something that can’t be left to an HR department or line manager alone, business leaders have to get personally involved.

Getting the right people for the right jobs as a four-stage process with each step being of equal importance:

Specify

Before advertising a vacancy, business leaders must be crystal clear about the job specification as well as the attitudes and behaviours of the person needed for the job. This, in turn, needs to align with the purpose, vision and values of the company. The best talent has a choice these days and will simply not work for an organisation whose values they don’t share, another reason why leadership needs to be actively involved in recruitment.

These specifications should be written down and be clear enough for anyone to understand. This will help to prevent two common recruitment mistakes, deciding what the job specifications are based on the available talent or hiring based on chemistry rather than true fit.

The popular saying “hire for attitude, train for skill” is very noble in its intent, but business owners and leaders adhering strictly to this sentiment might run the risk of not achieving the optimal mix of behavioural competencies needed for peak performance.

Find

Owners and leaders of smaller organisations often fall into the trap of thinking that they won’t be able to attract top talent, so they approach the vacancy listing process with a timid attitude. Top talent isn't always the most expensive people or the most qualified. Instead, they are the people who are the absolute best fit for a specific role in a specific organisation.

It is therefore of utmost importance that a vacancy listing is not just a list of required skills and experience, to attract the appropriate talent, the vacancy listing must reflect the true culture and values of the business and what it’s like to be part of the team.

To access the top talent pool, business leaders must involve those who are experts in selling the benefits of the company in creating the vacancy listing. Marketing people are often a better choice for this task than an HR department or even recruitment agencies.

That is the best for a business to attract top talent – that might be currently employed – rather than limit itself to a talent pool of despondent job seekers.

During the interview process of shortlisted candidates, top talent will most likely ask questions to help them determine whether the values of the business align with their own values.

If they can’t get a clear idea of what the values are or how the business practically lives those values, or they feel that their values do not align with those of the business, they’ll go look for employment somewhere else.

Assess

It is astonishing that many companies around the world still rely on an impressive CV with one or two interviews as the only activities to recruit talent. Even references can’t be guaranteed as a mark of quality as they can be influenced by litigation around labour disputes.

True top talent will be able to prove that they are the best during an assessment that must form part of the recruitment process. The difficulty of the assessment will of course differ depending on the job level recruited for, and businesses must never abuse the assessment process to gain free insights or labour.

Assessments may appear to be time-consuming and costly, but the cost of getting recruitment wrong has been estimated as about four or even five times the employee’s annual salary! It’s therefore much less expensive to use assessments than to recruit and train an employee who was never right for the job or whose aspirations conflicted with those of the business.

Negotiate

The final stage in the recruitment process should be a discussion and negotiation between the selected candidate and their potential direct manager on the exact details of the role and remuneration package.

People can truly make or break a business – irrespective of its size or shape. With economic pressure rising and an increase in leadership burnout, no business leader can afford to stand back and allow mediocre talent to come on board.

** Juanita Vorster is a speaker and entrepreneur

 

Inc

Over 11.5 million electricity households and customers in Nigeria, who account for about 85 per cent of grid connected electricity, have been thrown into darkness as the electricity supply industry moves to implement at least 20-hour power supply to some customers.

With electricity generation wobbling around 3,000 megawatts, there are indications that the Generation Companies (GenCos) may insist on a bilateral bulk trading agreement with the Distribution Companies (DisCos) to prioritise band A customers outside of the Nigerian Bulk Electricity Trading Company (NBET).

Already, most band A customers, who are expected to get at least 20 hours of power supply daily for being charged an exorbitant rate of N225 kilowatt per hour (KWh), are complaining of poor supply. 

Sadly, the situation may linger as the extant challenges of the power industry are worsening the regular blame game in the sector, especially between government-owned Transmission Company of Nigeria (TCN), which holds one of the world’s worst records for grid collapse and ramping down of generators, and the DisCos.

Pegging an increase in electricity tariff on the volatility of the naira, exchange rate, gas price and inflation without having a control over availability of electricity, NERC had increased tariff for band A consumers from about N66 KWh to a flat rate of N225 KWh in an attempt to reduce government subsidy on the sector. Struggling to meet up with required hours of electricity for band A, most consumers and the larger segment of the country, who are meant to enjoy between 16 to about four hours of electricity under band B to E, have been thrown into darkness.

Recall that in 2022, NERC had introduced the Service Based Tariff (SBT) under the former administration thinking that the sector would mature into an industry where customers can at least have predictable hours of electricity from band A, which has 20 hours and above of constant supply and band E with at least four hours of constant power supply.

Seeing that the supply was a largely unrealistic yardstick in some areas, most of the feeders on band in the latest review were downgraded to band B; but still customers are raising concerns.

On one hand, the band A customers are not satisfied despite the fact that DisCos have now shifted attention to them; on the other hand, electricity supply is now worse for consumers whose tariffs are yet to be increased.

A customer in Kubwa area of Abuja, Damilola Bashirat, who is under band B, said that for over a week, she had barely enjoyed six hours of electricity daily, adding that the supply situation was better before the new tariff was introduced.

Also, in some parts of Dawaki, where electricity was very stable, the power supply has gone from better to worse.

Some customers in the Ajao Estate area of Lagos State served by Ikeja Electric, who are under band C, said the supply only comes by midnight and disappears before dawn. These customers are supposed to get a minimum of 12 hours of electricity per day.

In Utako area of Abuja, where customers are under band B, a small business owner, Rauf Hassan, said the Abuja Electricity Distribution Company (AEDC) barely provides six hours of constant electricity supply.

Former President of the Chartered Institute of Bankers of Nigeria (CIBN), Segun Ajibola, said the complaints were growing from electricity consumers, adding that the plight of those claimed to be on band A is more pathetic.
Ajibola, who is a Professor of Economics at Babcock University, said: “Lekki Phase 1, Lagos, is on band A. On the average, some of the areas enjoy supply of electricity for about six hours daily since April 1. Yet the consumers are subjected to the nerve cracking tariffs just introduced,” Ajibola said.

He noted that the electricity value chain is overdue for total overhaul, adding that categorisation into bands A to E is a mere distraction away from the real problems.

According to him, the GenCos, the TCN, the DisCos and their regulators need to go back to the drawing board.

The economist noted that unless and until the sector develops the capacity to generate, transmit and distribute electricity to both households and businesses in the country, it would continue to be ‘motion without movement’.

“Raising tariffs for whichever band or for all bands is mere divisive tactics and may not stand the test of time. I strongly believe that it is a way of hitting hard the soft targets represented by the helpless and hapless Nigerian consumers.

“If some less endowed African countries with about a quarter of Nigeria’s population can generate 10 to 20 thousand megawatts, I hasten to ask, what exactly is the problem with the managers of Nigeria’s power sector?” Ajibola queried.

President of Nigerian Economic Society (NES), Adeola Adenikinju, said it was obvious that the DisCos do not have enough power to distribute to customers. He noted that with the higher tariff rate, band A consumers are likely to be more negatively impacted, except there is an overall improvement on electricity generation.

“DisCos should not be allowed to implement any tariff increase until they are ready to meet the number of hours required under each tariff band.
“Overall, the current band category should be transitional. It is also discriminatory. Every customer should be entitled to stable, reliable, affordable and constant electricity supply,” Adenikinju said.

Energy scholar, Wunmi Iledare, noted that Nigeria must come to terms with the fact that N68 per KWh is significantly below the market clearing price of electricity.

“In fact, N68 is also not anywhere close to the fair return price of an economic good with decreasing marginal cost and average cost curve like electricity powered majorly by thermal plants.

“The social optimum price of electricity is also not N68 either. So, NERC had to do something long before now but for political expediency. So, it is better late than never,” he said.

Iledare stated that the accuracy of the band A tariff is, however, conjectural because of the many unknowns.
He noted that as more facts become available, the pricing model is expected to be recalibrated in a self adjusting manner, stressing that some customers badly affected because of affordability and metering issues would be resolved to protect consumer surplus.

“If what I am reading in the media is correct, there is a price discrimination application based on daily supply hours for selected users. Such a mechanism is not unusual in the power market. We have it also in the airline industry. But looking at everything done so far, the presidential Executive Order 40, the increase in wellhead natural gas price by the Nigeria Petroleum Authority, and this discriminatory electricity tariff by NERC; the benefits seemed skewed to optimise producer surplus than consumer surplus,” he said.

Iledare expressed worries about the implementation plan of the tariff bands, saying there appears to be no penalty attached to the delimitation to supply 20+ hours of quality electron delivery services to customers.

Energy lawyer, Madaki Ameh, said the band categories are illegal and a justification for the inefficiencies of the power sector.

“Every consumer of electricity in Nigeria is entitled to regular power supply like others. Creating different bands serves as justification for denying those on lower bands of regular power supply, in a bid to blackmail them, as if the amount they pay is too small for them to expect any regular supply, thereby unfairly justifying the laziness and inability to perform on the part of the DisCos,” Ameh said.

He called for the immediate scrapping of the ‘artificial’ bands, adding that there is a need to expand the consumer base to reduce the unit cost and also get the GenCos to increase power generation from the paltry average output of 3,000 MW, which the country has experienced for decades.

Electricity market analyst, Lanre Elatuyi, said the infrastructure at the distribution end cannot support the reliability that would ensure the service level agreements under each band.

Elatuyi also called for a comprehensive study by all DisCos to ascertain the average load for all classes of customers and see if total allocated loads would be enough or there is a need to procure more capacity.

“Take for instance the 613MW allocated to AEDC; this assumes a flat load profile and AEDC will not be able to meet load demands during peak hours when real time demand rises to say 700MW and there is no extra procured capacity.
“The fact is that there are constraints in the distribution networks and there is a need for the regulator to carry out a study on the networks to ascertain what is possible to avoid customers being shortchanged,” Elatuyi said.

A stakeholder in the power sector, Bode Fadipe, said the prevailing situation in the supply to bands B – E remains a source of worry because it is only tariff adjustment that has taken place and not load increase for Band A end users.

To have a situation where other end users in other bands are complaining, according to him, could mean that affected DisCos have opted to concentrate all their resources on band A end users.

“If that is the case, it is against the spirit and letter of the tariff adjustment. They (DisCos) owe customers in the other bands as much responsibility as they do to their prime customers.

“But let it also be said that this is not unexpected. The resources to meet the service level commitment whether it is a technologically or a manually driven sector is huge,” he said

 

The Guardian