A power expert, Mr Chinedu Bosah, has called on the Federal Government to reassess the recent 300 per cent surge in electricity tariffs introduced by the Nigerian Electricity Regulatory Commission.
Mr. Bosah, who serves as the National Coordinator of the Coalition for Affordable and Regular Electricity (CARE), emphasized the importance of conducting a thorough review of energy policies to ensure that electricity remains affordable and sustainable for all Nigerian citizens.
While acknowledging the necessity of addressing the energy sector’s challenges, he expressed concerns about the adverse impact of the 300 per cent tariff increase on consumers. He urged labor unions to engage in discussions with the government to address this issue and recommended a reconsideration of the decision to raise gas prices, as it would inevitably lead to higher electricity costs for consumers.
Furthermore, Mr. Bosah highlighted the significant strain placed on Nigerian working-class families by successive policy changes, underscoring how the tariff hike could exacerbate the existing economic difficulties in the country. He stressed the importance of collaboration between private power companies and the government to tackle obstacles in electricity generation, transmission, and distribution effectively.
In a similar vein, Dr. Akinrolabu Olukayode, Chairman of the Customer Consultative Forum of Festac/Satellite Town, criticized the tariff hike, stating that it would negatively impact consumers’ living standards. He advocated for proactive government investments in the power sector to enhance infrastructure and service delivery, pointing out the challenges posed by frequent power grid failures and the reliance on costly fuel for backup power generation.
Dr. Olukayode also condemned the surge in gas prices, arguing that it would further burden consumers already grappling with escalating expenses. He proposed alternative policies, such as selling gas in the local currency to boost revenue and alleviate pressure on consumers, while also calling for a restructuring of the energy sector to grant regions/states more autonomy over their resources.
The expert cautioned against the severe repercussions of continual tariff hikes and urged the implementation of measures to shield consumers from additional economic hardships. He highlighted the announcement made on April 3 by Mr. Musiliu Oseni, the Vice Chairman of NERC, regarding the 300 per cent electricity tariff increase for Band A consumers in the country, affecting only a small percentage of electricity customers.
This adjustment allows power distribution companies (DisCos) to raise electricity prices to N225 ($0.15) per kilowatt-hour for urban consumers, effective from April 1, posing significant challenges for consumers and necessitating urgent attention and intervention to mitigate the impact on the populace.
