In response to circulating reports of a planned electricity tariff hike from January 1, 2024, the Federal Government, through the Nigeria Electricity Regulatory Agency (NERC), has categorically denied issuing any such directive to electricity distribution companies (DisCos). Dr Usman Abba, the spokesperson of NERC, clarified this position in a statement to journalists on Sunday.
“NERC has not issued any order to DisCos concerning tariff hike; we usually have meetings with all stakeholders before any proposed increase, but we’ve not had any meeting with any DisCos concerning price increase,” emphasized Dr Abba.
The clarification aims to address concerns and speculations regarding a potential increase in electricity tariffs at the beginning of the new year.
Consumer Advocacy Against Tariff Hike
Kunle Olubiyo, the President of the Nigerian Consumer Protection Network, expressed strong opposition to any planned electricity tariff hike, deeming it irresponsible, particularly considering the current economic challenges faced by Nigerians.
“Increasing electricity tariff at this time, coupled with the impact of fuel subsidy removal, inflation, and other hardships facing Nigerians, will be insensitive on the part of the Government. It is outright irresponsible for the government to allow an electricity tariff hike,” stated Olubiyo.
The remarks from consumer advocacy groups underscore the potential negative impact on citizens already grappling with the aftermath of fuel subsidy removal, rising inflation, and other economic reforms.
Tinubu’s Intervention and Subsidy
President Bola Ahmed Tinubu had previously intervened in the matter, halting the implementation of the new electricity tariff and insisting on a power sector subsidy in November 2023. Minister of Power Adebayo Adelabu acknowledged the sensitivity of the power sector, emphasizing that the government still subsidizes power.
“The power sector is an industry that is very sensitive to any leader. You cannot jump overnight and implement the cost-reflective tariff. I can tell you that till today, the government still subsidizes power,” affirmed Minister Adelabu.
Substantial Electricity Subsidies
NERC’s quarterly reports reveal significant subsidies provided by the government to the power sector. In the third quarter of 2023, electricity subsidies amounted to N204.59 billion, surpassing the N135.23 billion in the second quarter and the N36.02 billion in the first quarter of 2023. These figures indicate a substantial financial commitment to supporting the power sector and mitigating the impact on consumers.
Related: Consumers Kick as NERC Increases Prices of Electricity Meters
As discussions continue between the government, regulatory agencies, and stakeholders, the issue of electricity tariffs remains a critical aspect of Nigeria’s energy landscape, with implications for both consumers and the broader economy.
