No plan to increase electricity tariff – NERC

The Nigerian Electricity Regulatory Commission (NERC) has dismissed the widespread rumors of an increase in electricity tariffs starting January 1st, 2024.

There has been reports that Nigeria’s electricity distribution companies (DisCos) are planning to increase electricity tariffs nationwide with effect from January 1, 2024.

According to the reports, “All has been perfected for the new tariff to take effect from the first of January, 2024”.

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Speaking with newsmen, NERC spokesman, Dr. Usman Arabi, however, disclosed that the tariff hike rumours was fake news.

Also, he categorically denied any approval for such a tariff hike, emphasising that the electricity tariff order currently in effect remains unchanged.

“NERC has not issued any order to DisCos concerning tariff hike; we usually have meetings with all stakeholders before any proposed increase, but we’ve not had any meeting with any DisCos concerning price increase,” says Abba.

It could be recalled that in November 2023, the minister of Power, Adebayo Adelabu, said that President Bola Tinubu stopped the implementation of a hike in electricity tariff and insisted that subsidy be paid on power consumed nationwide.

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Adelabu said then “Tariffs should have been raised months back, but Mr President said until we can achieve regular and incremental power supply we can’t touch the tariff.” But for political reasons and empathy, you cannot cause an additional burden on Nigerians.

We just had the removal of the fuel subsidy, we are talking about the exchange rate skyrocketing, galloping inflation and so many others that bring hardship to the people.”

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And Mr President is trying to relieve this hardship through various forms of palliatives. So it is not politically expedient and reasonable to now implement a tariff that is more like dumping the existing tariff.

We are now paying about N70 (per kilowatt-hour), and it can never be less than N130 or N140 at the exchange rate of today if we are to implement a cost-reflective tariff. Because part of the reasons for an increased tariff is the price of gas, which is paid in dollars,” Adelabu explained.