The recent announcement by the Nigerian Electricity Regulatory Commission (NERC) of a slight reduction in electricity tariffs for Band A customers, from ₦225/kWh to ₦206.80/kWh, has been met with widespread rejection across the country, according to reports.
The reduction, attributed by NERC to the appreciation of the naira against the dollar, has failed to appease various stakeholders, including the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA).
This move comes on the heels of a significant tariff hike last month, which saw prices for Band A customers surge by approximately 240 per cent, sparking considerable controversy and opposition.
The Federal Government had justified the previous increase as a necessary measure following the withdrawal of electricity subsidies, aimed at saving around ₦1.5 trillion.
Despite NERC’s latest directive for a reduced tariff, major stakeholders are demanding a complete reversal to the subsidy-era rates, arguing that the marginal reduction does little to alleviate economic pressures on Nigerian households and businesses, especially amidst other economic challenges.
Tommy Etim, the National Deputy President of TUC, voiced his dissatisfaction, labeling the reduction as “unacceptable” and calling for “a total reversal and stakeholders’ engagement.” Similarly, Hakeem Ambali, the National Treasurer of NLC, expressed discontent, stating, “This is still a far cry from labour expectations; until there is a significant increase in power supply, any increment is unjustifiable.”
This resistance from stakeholders coincides with broader economic strain characterized by high inflation and escalating living costs, emphasizing that even the revised tariffs remain unsustainable for many Nigerians.
In response to mounting pressure, various electricity distribution companies across the country, including those in Ikeja, Ibadan, and Abuja, have begun implementing the new tariff structure. However, these adjustments have done little to quell frustration among consumers and industry leaders.
NERC maintains that the tariff adjustments align with changes in macroeconomic indices and are necessary for the sustainability of the electricity supply industry. Dr. Usman Arabi, NERC’s Public Affairs General Manager, clarified, “The Band A tariff has been reduced from ₦225 to ₦206.80/kWh, mainly due to the decrease in the exchange rate.”
Despite these explanations, sentiments on the ground continue to reflect dissatisfaction, with calls for more substantial changes to both pricing and the management of Nigeria’s power sector echoing across the nation.
