In a resounding chorus of discontent, Nigerians have voiced their rejection of the Nigerian Electricity Regulatory Commission’s (NERC) recent reduction of the tariff payable by Band A customers from N225/kWh to N206.8/kWh.
The move, announced just 33 days after a staggering 240 per cent increase in electricity tariffs for Band A customers, has been met with staunch opposition from various quarters. The Nigeria Labour Congress, Trade Union Congress, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, alongside electricity consumers and civil society organizations, have all called for a reversal of the hike to the subsidy-era tariff.
While the Federal Government justified the initial tariff hike as a means to save N1.5 trillion and ensure up to 20 hours of daily power supply for Band A customers, opposition has been swift and unyielding. The House of Representatives, organized labor, and the Nigerian Bar Association have condemned the tariff hike, with the House calling for an immediate suspension of its implementation nationwide.
Despite the outcry, the Minister of Power, Adebayo Adelabu, defended the increase during a recent investigative hearing, warning of a nationwide blackout if the tariff hike was not implemented. However, amidst mounting pressure, the NERC announced an eight per cent reduction for Band A customers, citing changes in macroeconomic indices and exchange rate appreciation.
While this reduction may offer some respite, concerns persist among stakeholders. The National Deputy President of the TUC, Tommy Etim, deemed the reduction unacceptable, calling for total reversal and robust stakeholder engagement. Echoing similar sentiments, the National Treasurer of the NLC, Hakeem Ambali, emphasized the need for significant improvement in power supply before any tariff adjustments can be justified.
Moreover, electricity consumers and advocacy groups have expressed skepticism towards the government’s stance. The Electricity Consumer Protection Advocacy Centre insisted on total reversal, dismissing the reduction as paltry. Executive Director, Princewill Okorie, urged the government to address underlying issues such as gas availability and pricing to ensure sustainable power generation.
While the reduction in tariffs may offer temporary relief, calls for systemic reform in the power sector persist. Rotimi Olawale of YouthHub Africa emphasized the need for comprehensive solutions to energy challenges, including adequate fuel supply and investment in independent power sources.
As the debate rages on, the government faces mounting pressure to strike a delicate balance between affordability for consumers and sustainability for the electricity supply industry. With stakeholders advocating for meaningful dialogue and holistic reform, the path forward remains uncertain, yet laden with possibilities for transformative change in Nigeria’s power sector.