VAM News Update
Nigeria’s electricity distribution companies, DisCos are reportedly planning to hike electricity tariff nationwide with effect from January 1, 2024.
A source in one of the DisCos confirmed the development to DAILY TRUST under anonymity.
However, the Nigerian Electricity Regulatory Commission, NERC, Abuja Electricity Company are yet to respond to enquiry on the planned electricity tariff hike as of Sunday morning.
Meanwhile, speaking in an interview with VAM, Kunle Olubiyo, the President of the Nigerian Consumer Protection Network, said any planned electricity tariff hike will be outright irresponsible on the part of the Government.
According to him, Nigerians are still grappling with the effects of fuel subsidy removal, rising inflation and other economic reforms by Tinubu’s administration.
“Increasing electricity at this time, coupled with the impact of fuel subsidy removal, inflation, and other hardships facing Nigerians, will be insensitive on the part of the government.
“It is outright irresponsible for the government to allow an electricity tariff hike,” he said.
Recall that in November 2023, President Bola Ahmed Tinubu stopped the implementation of electricity tariff, insisting on a power sector subsidy.
Speaking on Tinubu’s directive on electricity tariff hike, Minister of Power, Adebayo Adelabu, said Adelabu said, “The power sector is an industry that is very sensitive to any leader.
“You cannot jump overnight and implement the cost-reflective tariff. I can tell you that till today, the government still subsidises power”.
NERC’s quarterly reports indicated that electricity subsidies gulped N204.59 billion in the third quarter of 2023 and N135.23 billion in Q2, which is substantially higher than the N36.02 billion in Q1 2023.
