07/04/2024
Headline of the Week: FG Directs DisCos To Implement New Tariffs Order Immediately
On Wednesday, the Federal Government, through the Nigerian Electricity Regulatory Commission, recently approved a 300 per cent tariff increment for Band A consumers, allowing power distribution companies to raise electricity prices for city dwellers from N68 to N225 per kilowatt-hour with effect from April 1, 2024.
It also directed all Electricity Distribution Companies to provide as much clarity as possible to all affected customers. Band A customers enjoy a minimum of 20 hours of daily electricity supply.
Meanwhile, the Minister of Power Adebayo Adelabu who recently hinted about the Federal Government’s push to stop electricity subsidy said the hike won’t affect the majority of Nigerians. He said: "Because of cheapness of electricity in Nigeria, some people turn on their Air Conditioner and Freezer for days even while not using it."
“From the policy formulation perspective, the recent increase in tariff for only Band A customers which is just 15 per cent of electricity consumers in Nigeria. As of the latest statistics, there are a little about 12 million customers in the sector and this [tariff hike] would only affect about 1.5 million customers,” Adelabu continued. “The remaining 10.5 million customers will continue to enjoy the government’s subsidy at about 70 per cent.”
However, the Chief Whip of the Senate and senator representing Borno South, Ali Ndume, has rejected the recent hike in electricity tariff. He described the timing as wrong, maintaining that Nigerians are yet to recover from the removal of fuel subsidy. The lawmaker also wondered why such an important decision was taken without duly consulting with the National Assembly as representatives of the people.
No fewer than 14 states have expressed readiness to generate, transmit, and distribute electricity to their residents.
Atiku Abubakar has also joined the growing list of critics faulting the Federal Government’s hike in electricity tariff and believes the move further compounds the citizens’ economic difficulties. He added that: ''the government has not successfully dealt with the pains associated with the implementation of those measures, and now this. The hike in electricity tariff will create more difficulties for the citizens as inflationary pressures are elevated. Our manufacturing sector will similarly be impacted negatively. Not only are they paying higher interest rates on their bank loans but also paying more for diesel, paying higher wages as a result of the new minimum wage. The President's men are pushing the economy into a deeper crisis. His reforms are without a human face."
Similarly, the Abuja Chamber of Commerce and Industry (ACCI), has expressed concern over the recent increase in electricity tariffs, saying it could negatively impact on the ease of doing business in Nigeria.
