- NERC heard MAN’s request to reverse or suspend the recent electricity tariff increase.
- MAN cited tough economic conditions; power companies and experts shared their views.
- NERC will rule within 30 days, with a possible 15-day extension.
On May 23, 2024, the Nigerian Electricity Regulatory Commission (NERC) heard a petition from the Manufacturers Association of Nigeria (MAN) to reverse or suspend the recent electricity tariff increase. MAN formally objected to NERC’s supplementary multi-year tariff order from April 3, 2024, which raised the Band ‘A’ tariff to N225/kWh before reducing it to N206/kWh.
MAN’s Director General, Segun Ajayi-Kadir, and lawyer, Tola Oshodi, argued against the tariff increase, citing harsh economic conditions. Power company representatives and sector experts also shared their views on the financial impact of tariff adjustment.
Dr. Musiliu Oseni, Vice Chairman of NERC and chair of the hearing, acknowledged the arguments from MAN and other stakeholders. He promised a ruling within 30 days, with a possible 15-day extension. Dr Oseni criticised MAN for advising members to defy the new tariff, calling it self-help, but praised their later decision to appeal.
Electricity distribution companies (DisCos) stressed the financial strain of non-payment. They warned of disconnections for those refusing the new rates but offered to work with manufacturers on payment plans.
“Some MAN members insist on paying the old rate. In Ibadan, we are disconnecting these customers to avoid liabilities,” a DisCo representative said. They added, “We are open to working with those proposing payment plans, understanding some may struggle with the new rate.”
All parties await NERC’s decision on the petition, anticipating a resolution to the tariff dispute.