DisCos Plan Nationwide Electricity Tariff Hike Amidst Consumer Outcry
Nigeria’s electricity distribution companies (DisCos) are reportedly considering a nationwide increase in electricity tariffs from January 1, 2024. A source within one of the DisCos confirmed this development to DAILY TRUST on the condition of anonymity. However, the Nigerian Electricity Regulatory Commission (NERC) and Abuja Electricity Company have not responded to inquiries from DAILY POST regarding the planned tariff hike.
In an interview with DAILY POST, Kunle Olubiyo, the President of the Nigerian Consumer Protection Network, criticized the potential tariff hike, calling it irresponsible. He argued that Nigerians are already grappling with the impact of fuel subsidy removal, rising inflation, and other economic challenges, making an increase in electricity tariffs insensitive and irresponsible on the part of the government.
President Bola Ahmed Tinubu had previously halted the implementation of electricity tariffs in November 2023, insisting on a power sector subsidy. Minister of Power, Adebayo Adelabu, acknowledged the sensitivity of the power sector to government interventions, stating that the government still subsidizes power and cannot abruptly implement cost-reflective tariffs.
NERC’s quarterly reports revealed significant government spending on electricity subsidies, amounting to N204.59 billion in the third quarter of 2023 and N135.23 billion in the second quarter, far exceeding the N36.02 billion in the first quarter of 2023.
Source: Daily Post
