The Minority Caucus of the House of Representatives has strongly urged the Federal Government to intervene and urge the Nigerian Electricity Regulatory Commission (NERC) to retract the recent electricity tariff increase nationwide.
NERC recently approved a 300% tariff hike for Band A consumers, allowing power distribution companies to raise electricity rates for urban residents from N68 to N225 per kilowatt-hour, effective April 1, 2024.
In a statement released on Friday in Abuja, the Minority Leader of the House, Kingsley Chinda, condemned the hike as “inhuman and unjust.”
The statement read, “We implore Mr. President, Bola Tinubu, to use his influence to persuade the electricity regulator, NERC, to reverse this decision and prioritize the welfare of the people.
“Open dialogue and inclusive decision-making processes are crucial to address the underlying issues in the energy sector and ensure sustainable solutions that benefit all stakeholders, rather than persistent tariff hikes.
“We demand increased transparency and accountability in managing resources within the electricity sector. Citizens have the right to expect efficient service delivery and fair pricing mechanisms that consider their economic realities.”
The caucus also observed that “The hike, which exceeds 200% above the inflation rate, blatantly disregards the struggles of ordinary citizens, who are already grappling with the impacts of fuel subsidy removal, soaring inflation, unemployment, and insufficient access to basic amenities.”
The statement further stated, “We note that shortly after the tariff hike announcement, NERC claimed it only affects 12% of electricity consumers who receive a minimum of 20 hours of electricity daily. However, it has become evident that this is false.
“The hike, according to data provided by the DISCOS, impacts all electricity consumers. This consistent resort to deception and outright falsehoods tarnishes the government’s image and undermines public trust and confidence.”
“The timing of this tariff hike, amid ongoing economic challenges, is not just insensitive but also detrimental to Nigerians’ well-being. It underscores the gap between policymakers and the harsh realities faced by the majority of our people.”
The minority caucus reminded the government that elsewhere, leaders strive to protect citizens’ interests, stating, “In other parts of the world, governments are taking measures to shield citizens from the pandemic’s economic repercussions.
“In the United Kingdom, for instance, where some advocate against subsidies, the government has allocated nearly £40bn ($50bn) in energy subsidies to assist households and businesses in coping with surging power bills following the Ukraine crisis.”
Citing Reuters, the caucus argued that “Between October 2022 and March 2023, approximately £21bn was allocated to the Energy Price Guarantee program, which supports households with their bills. Additionally, £12bn was disbursed under the Energy Bills Support Scheme, providing households with £400 payments over winter months.
“Businesses and other entities received approximately £5.5bn under the Energy Bill Relief Scheme, with nearly £1bn spent on other initiatives.”
Contrasting the situation with the United States, where the government subsidizes electric vehicle chargers by thirty percent via tax credits, Chinda remarked that in Nigeria, “the government lavishes funds on frivolities, with little tangible economic impact on households or ordinary citizens. Here, the state’s directive principle seems to be ‘fend for yourself.
