The Nigerian Electricity Regulatory Commission (NERC) has declared an increase in the tariff to be paid by electricity customers under the band A category. By implication, Homes that enjoy up to 20 hours of electricity per day will be charged N225/kWh, an incredible hike from the current N66/kWh.
This was revealed by the Vice Chairman of NERC Mr. Musliu Oseni, in a press statement released at Abuja.
According to Oseni, the Federal Government intends to transition into a targeted subsidy regime to alleviate the effects of macroeconomic changes.
Therefore, the electricity tariff is anticipated to cut down the subsidy for the fiscal year 2024 by approximately N1.14 trillion.
He further stated, “The overarching objective of the commission in the consideration of the tariff application is the creation of a financially sustainable electricity market providing adequate and reliable power supply to drive the Nigerian economy.
The commission, upon due consideration of the tariff applications, has approved revised rates affecting only customers classified under Band Serv category which is about 15 per cent of the customer population.”
This policy however is perceived to have an of insensitivity. Some may ask, when will the government of Nigeria begin to exist for her citizens? Great governments, think and work out ways to provide the best amenities and services to her citizens at the least possible cost.
This situation appears more like putting the cart before the horse. An increase in tariff should be consequential to an actual improvement in service and availability on the part of the DISCOs. As a matter of fact, it is ridiculous to trust an underperforming agency with increased resources.
On the other hand, the electricity rate in Nigeria is such a mess that there’s very little possibility that any serious company will invest on that rate, unless it is a charity. Data also suggests that for real investors to come, these changes just be made. On this wise, there appears to be some economic correctness in this move.
Insensitive or not, The argument about electricity tariff hike was won before it took off, and this is because of the preceding price hike of PMS and diesel which went relatively uncontested.
