President Bola Ahmed Tinubu remained silent as the recent 240% increase in electricity tariffs exacerbated the hardships faced by Nigerians.
The recent surge in electricity tariffs has added to the woes of Nigerians, following the previous challenges stemming from subsidy removal and currency fluctuations initiated by Tinubu’s administration last year.
While the pain from these policy changes persists, the tariff hike particularly affects customers under Band A, who receive at least 20 hours of power supply, further unsettling the populace.
In defense of the increase, the Minister of Power, Adebayo Adelabu, stated that 85% of electricity consumers would not be affected and highlighted the government’s projected savings of N1.14 trillion in electricity subsidies.
However, various organizations including the Nigeria Labour Congress, Trade Union Congress, Lagos Chambers of Commerce and Industry, and Abuja Chambers of Commerce and Industry have openly criticized the tariff hike, citing confusion and economic hardship.
Following the announcement of the new tariffs by the Nigerian Electricity Regulatory Commission, the eleven Distribution Companies (Discos) began implementing the increased rates for customers receiving 20 hours of power. However, this move has faced widespread dissatisfaction among consumers.
Despite apologies from the Abuja Electricity Distribution Company for wrongly applying the new tariffs to certain customer categories, concerns persist among Nigerians regarding potential arbitrary billing by Discos.
The Federal Competition and Consumer Protection Commission has urged the government to mandate Discos to meter all Band A customers within 60 days and emphasized that customers in other bands should not be shifted to Band A without proper metering.
With only a fraction of electricity consumers currently metered, fears of unfair billing practices by Discos are heightened.
Amidst the tariff hike, power supply across Nigeria remains unreliable due to national grid collapses, transmission repairs, and gas constraints, further exacerbating the situation.
Energy experts have criticized the tariff hike, suggesting that it prioritizes producer surplus over consumer welfare. They highlight the need for a more comprehensive approach to address the challenges in the power sector, including gas constraints, transmission bottlenecks, and inadequate metering.