Says CBN’s orthodox monetary policy stance stabilising FX
By Yinka Kolawole
Against the backdrop of inadequate and unreliable power supply across the country, the Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to ensure a more vigorous enforcement of performance-based franchising for electricity distribution companies (DisCos).
President of LCCI, Mr. Gabriel Idahosa, who made the call at a quarterly media conference to review the state of the economy in Lagos yesterday, also noted that the orthodox monetary policy stance of the Central Bank of Nigeria (CBN) has stabilised the foreign exchange (FX) rate.
“Nigeria’s power sector remains intensely fragile and unable to meet industrial or household demand.
He stated: “The upward review of electricity tariff adjustment under the Multi-Year Tariff Order (MYTO) implemented in June 2025 triggered consumer dissatisfaction, notably as service quality has not improved proportionally.
“According to the Nigerian Electricity Regulatory Commission (NERC), only 5 out of 11 Distribution Companies (DisCos) met their minimum supply thresholds, further justifying calls for more vigorous enforcement of performance-based franchising.”
Idahosa highlighted some of the steps that the government needed to take in order to tackle the power problem in the country.
His words: “We reiterate the urgent need to accelerate Phase II of the National Mass Metering Programme; empower sub-national governments to develop independent and hybrid mini-grids; scale decentralized energy solutions, provide FX access and tax reliefs for solar mini-grid and battery storage investors.
“With more organisations exiting the national grid to generate their power through captive power arrangements, the government should create an enabling environment where these captive power arrangements can thrive.
“Renewable energy is the most sustainable power supply in the long run, and the government should support this with required regulation and investment.
“We need Sub-national blueprints for attracting investments into the power sector in their states.”
Speaking on the relatively stable FX rate, Idahosa said: “The Chamber recognizes that the stability of the exchange rate for some time was due to the CBN’s strict foreign exchange market transparency and orthodox monetary policy stance, resulting in investors’ confidence and a rise in foreign capital inflows.
“Also, a unified exchange rate has curbed speculative demand that previously inflated the market. At the same time, a significant decline in the importation of refined petroleum products due to domestic refining has resulted in a decrease in demand for forex. Despite the gains recorded by the Naira, the country’s external reserves maintained a downward trajectory.”
The post POWER: LCCI canvasses performance-based franchising for DisCos appeared first on Vanguard News.
