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Electricity Tariff: Fresh Move Sparks Outrage as Nigerians Ask Tough Questions

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The Federal Government’s reported plan to increase electricity tariffs across customer bands has continued to attract strong criticism from Nigerians.

ZINGTIE reports that the backlash comes as many citizens accuse President Bola Ahmed Tinubu’s administration of failing to resolve the country’s persistent electricity supply problems despite promises made before the 2023 general elections.

The controversy follows reports that the Federal Government is considering a phased increase in electricity tariffs nationwide.

It would be recalled that President Tinubu’s Special Adviser on Power Infrastructure, Sadiq Wanka, had disclosed that tariff adjustments for all electricity customer bands would be implemented in phases.

Although the Presidency denied at the weekend that any electricity tariff increase was being planned, concerns remain that such an adjustment could still be introduced.

Electricity consumers, however, insist that the government lacks justification for any tariff hike while power supply remains poor across the country.

According to them, the Tinubu administration’s performance in the electricity sector does not support any move to impose additional costs on consumers.

ZINGTIE reports that Nigeria’s electricity generation still fluctuates between 3,500 and 4,500 megawatts, almost the same output recorded since 2023 despite serving a population estimated at over 200 million people.

It would also be recalled that in April 2024, the Tinubu administration approved an almost 300 percent increase in electricity tariffs for Band A customers, who were expected to enjoy at least 20 hours of daily power supply.

However, many Nigerians argue that electricity supply has remained inconsistent even for Band A consumers despite reforms introduced during the tenure of former Power Minister, Adebayo Adelabu.

Beyond paying higher electricity bills, consumers continue to battle erratic power supply and are often compelled to purchase transformers that eventually become the property of Electricity Distribution Companies (DisCos).

Fresh reports suggesting another tariff increase under the current Minister of Power, Joseph Tegbe, have further fueled public anxiety.

Speaking with ZINGTIE on Monday, the National President of the Nigeria Consumer Protection Network, Mr. Kunle Olubiyo, alongside the Executive Director of the Electricity Consumer Protection Advocacy Centre, Princewill Okorie, faulted the Tinubu administration over what they described as its inability to resolve the nation’s electricity crisis.

Many years of Nigeria’s power sector failure ridiculous — Olubiyo

Olubiyo maintained that Nigeria’s electricity sector would continue to underperform under the existing operational framework, insisting that the 13-year-old privatisation exercise has failed to achieve its intended objectives.

He argued that the current electricity market is plagued by loopholes, weak accountability and policy inconsistencies that discourage genuine investment.

According to him, the Federal Government’s continued payment of subsidies and market shortfalls has defeated the core purpose of privatisation.

“The present trajectory, the present model cannot give us results because there are a lot of leakages,” he said.

Olubiyo further argued that the government had consistently failed to meet its subsidy obligations, thereby worsening the financial instability across the electricity value chain.

“When the government announces responsibility to pay for subsidy and the government is not paying, then we are making a mockery of the definition of subsidy,” he stated.

The energy expert also insisted that Nigeria is yet to develop a functional electricity market capable of attracting new investors.

“There’s no clear-cut path for recovery of investment. No investor is going to come now as it is with the market distortion. We don’t even have an electricity market,” he added.

He criticised the implementation of the power sector privatisation programme, noting that temporary arrangements introduced during the transition have remained in place far longer than intended.

“Nigerian Bulk Electricity Trading PLC, NBET was supposed to operate for an interim period to provide the buffer.

“It was never designed to continue operating up till now. The privatisation has not been properly implemented,” he added.

Olubiyo also alleged that inadequate metering, manual energy accounting and excessive human involvement continue to create financial leakages within the sector.

According to him, many of the figures used to justify government spending are not based on scientifically verifiable data.

“If the process of measurement is not scientific and is manually computed with human elements, there will be errors,” he noted.

He urged President Tinubu’s administration to replicate reforms carried out in the foreign exchange and downstream petroleum sectors by reducing the Federal Government’s financial exposure in the electricity market.

“What the Federal Government has done in the foreign exchange market and in the petroleum subsector, the government should replicate that in the power sector.

“The process we have adopted in the last 13 years is a failure. We cannot continue this way,” he told ZINGTIE.

Electricity tariff hike will worsen hardship — Okorie

Electricity consumer advocate, Princewill Okorie, also criticised any proposal to remove electricity subsidies or introduce another nationwide tariff increase, describing it as an additional burden on Nigerians without any corresponding improvement in power supply.

He questioned the basis for extending the existing Band A tariff model to all electricity consumers, arguing that neither the government nor the Distribution Companies (DisCos) had provided sufficient justification.

Okorie insisted that discussions about subsidy removal should first address the quality of electricity services currently delivered to Nigerians.

“Which subsidy are they removing? What is the quality of service delivery in the first place?” he asked.

He maintained that any fresh tariff review would only worsen the economic difficulties already facing Nigerians.

“These things are just plots to keep impoverishing the citizenry.

“Is it the subsidy removal that is the issue, or do they just want to keep milking Nigerians?” he queried.

The consumer rights advocate also questioned the level of investment made by Distribution Companies despite repeated tariff increases and financial interventions in the sector.

“What is the investment of the DisCos? With all the claims being made in the sector, can we conduct an audit of the investments of the DisCos, consumer investments and the collections from electricity consumers?” he stated.

He further called for a comprehensive audit of funds injected into Nigeria’s electricity sector by international development partners.

According to him, authorities should account for financial support received from institutions such as the World Bank, GIZ and other international partners before introducing fresh tariff increases.

“Audit all the money that the World Bank, GIZ and the international community injected into the sector.

“What percentage of the money has really been used for the good of the people?” He asked.

Drawing a comparison with the removal of fuel subsidy, Okorie argued that Nigerians have not experienced any noticeable improvement in their standard of living despite paying higher energy costs.

“They removed subsidy in petroleum. How has it impacted us? Has it improved the quality of life of Nigerians?” he asked.

Okorie also faulted the composition of government committees handling electricity reforms, alleging that consumers are routinely excluded from policy discussions despite bearing the financial burden.

“How can a minister set up a committee on the power sector and have the DisCos and GenCos represented, but consumers are not there?

“If consumers are paying the money, why shouldn’t they have a seat at the table?” he told ZINGTIE.

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Mazi Nwokpor Jonathan

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