- NERC slashes electricity tariff for Band A consumers from N225 to N206 per kWh.
- Despite opposition, NERC cites improved macroeconomic parameters for the tariff reduction.
Nigerians, labour unions, Civil Society Organizations (CSOs), and power sector experts have criticised the Nigerian Federal Government and the Nigerian Electricity Regulatory Commission (NERC) for lowering electricity tariff for end-users under Band A.
NERC reduced the tariff from N225 to N200.6 per Kilowatt-hour, and significant distribution companies such as Ikeja Electric, Abuja, Kaduna, Ibadan, and Enugu implemented it.
This follows NERC’s approval of a 240% tariff increase for customers receiving between 20 and 24 hours of electricity supply, which sparked widespread opposition amid Nigeria’s economic challenges.
Despite calls for a complete reversal of the tariff hike, NERC opted for a downward review, citing improved macroeconomic parameters, including the appreciation of the Naira against the Dollar.
Barrister Dafe Akpeneye, NERC’s Commissioner of Legal, Licensing, and Compliance, explained the decision and highlighted various macroeconomic factors.
However, critics viewed the move as tokenism and insufficient to address consumers’ concerns.
Uket Obonga, national secretary of the Network for Electricity Consumers Advocacy of Nigeria, accused NERC of confusion and criticised its approach to tariff determination.
Critics also pointed out NERC’s failure to follow due process in issuing the tariff order, as the 2023 Electricity Act stipulated.
Retired PHCN staff member Ewetumo A A criticized NERC’s decision as shallow and misdirected, highlighting the power sector’s lack of feasibility studies and planning.
Similarly, Eze Onyekpere, Lead Director of the Centre for Social Justice, labelled the tariff reduction as a “silly manoeuvre” and called for a return to pre-April tariff levels.
The government’s decision to reduce electricity tariffs has sparked widespread condemnation and calls for a more comprehensive solution to Nigeria’s power sector challenges.