The Nigerian Electricity Regulatory Commission (NERC) has provided an explanation for not reverting to the previous electricity tariff as directed by the House of Representatives.
On Tuesday, the House instructed NERC and electricity distribution companies (DisCos) to reverse the tariff hike imposed on Band A customers, who are reported to receive 20 hours of daily power supply. The tariff, raised on April 3, 2024, saw Band A customers’ rates increase from N66 to N225 per kilowatt-hour, sparking widespread backlash from consumers.
Despite the House’s directive, which followed recommendations from the House Committee on Power presented by Victor Nwokolo during a session chaired by Deputy Speaker Hon. Benjamin Kalu, NERC Spokesperson Usman Arabi stated that the commission has yet to receive official communication on the matter.
“We have not received official communication from the House on the directive. Usually, when there are resolutions, they will be communicated officially. But we have yet to receive the resolution,” Arabi said.
In addition to individual consumers, federal universities in areas designated as Band A have reported significant financial strain due to the increased tariffs. The Secretary-General of the Committee of Vice-Chancellors of Nigerian Universities, Professor Yakubu Ochefu, confirmed that some universities are now facing monthly electricity bills ranging from N80 million to N300 million.
“It does impact the operations of the universities. It is the way it impacts the operations of every organisation. If there is a nearly 300 percent rise in energy cost, it will affect our operations,” Ochefu stated.
Meanwhile, the Executive Director of Research & Advocacy of the DisCos, Sunday Oduntan, explained that the tariff hike was driven by external economic factors such as exchange rates and interest rates, and the recent removal of subsidies.
Oduntan told Sunday PUNCH, “The recent increase in tariffs, particularly for Band A customers, is a result of the removal of subsidies and other economic factors affecting the cost of electricity.”
