Nigerians expressed strong opposition on Monday to the Nigerian Electricity Regulatory Commission's decision to reduce the tariff payable by Band A customers from N225/kWh to N206.8/kWh. In an interview with various groups including the Nigeria Labour Congress, Trade Union Congress, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, electricity consumers, and civil society organizations demanded a complete reversal of the recent tariff increase.
The new tariff adjustment was announced just 33 days after the NERC raised the electricity tariff for Band A customers from N68/kWh to N225/kWh, representing a significant 240 percent surge. This move saw the complete withdrawal of electricity subsidies for consumers in the Band A category, which accounts for approximately 15 percent of the total 12.82 million power consumers across the country. The Federal Government estimated that it would save N1.5 trillion as a result of this tariff hike.
Despite opposition from the House of Representatives, organized labor, and the Nigerian Bar Association, the Minister of Power, Adebayo Adelabu, defended the tariff increase during an investigative hearing held by the Senate Committee on Power. He warned of a nationwide blackout within the next three months if the tariff hike was not implemented.
However, despite assertions from the power ministry's spokesperson, Florence Eke, that the tariff hike would remain unchanged, the NERC announced an eight percent reduction for Band A customers. This decision was attributed to changes in macroeconomic indices in April, particularly the appreciation of the naira against the dollar in the foreign exchange market.
READ ASLO:Ikeja DisCo slashes Band A tariff to N206.80/kwh
In response, electricity distribution companies such as the Ikeja, Ibadan, and Port Harcourt DisCos, among others, implemented the tariff reduction. The NERC reiterated its commitment to maintaining a regulatory environment that balances consumer interests with the sustainability of the electricity supply industry.
While some stakeholders welcomed the tariff reduction, others, including representatives from organized labor, emphasized the need for a complete reversal and robust stakeholder engagement. They argued that until there was a significant increase in power supply, any tariff adjustment remained unjustifiable.
The discourse highlights broader concerns about the power sector's sustainability and the government's role in addressing energy challenges comprehensively. While some advocate for pricing that attracts investment, others emphasize the need for greater government intervention to ensure affordable and reliable electricity for all Nigerians.
