Just a day after implementing a significant increase in electricity tariffs for premium customers by over 230 percent, the Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Musiliu Oseni, has staunchly defended the decision. Oseni emphasized that the tariff adjustment is essential to enhance electricity supply nationwide and mitigate the risk of national grid collapses, while also fostering increased investment in the power sector.
In an interview on Arise Television, Oseni underscored that the tariff hike aims to address the challenges plaguing the power sector and create a more sustainable framework for electricity distribution. He assured that measures are being put in place to prevent any exploitative practices by distribution companies towards customers. Additionally, Oseni announced the establishment of a situation room dedicated to addressing customer complaints arising from the tariff adjustment.
Simultaneously, NERC released the key indices that contributed to the review of electricity prices for Band ‘A’ customers, escalating rates from N68 to N225 per kilowatt-hour. The “Supplementary Order to the Multi-Year Tariff Order (MYTO) 2024,” published by NERC, cited several factors for the tariff adjustment.
Among the listed reasons were Nigeria’s inflation rate, which surged by 12 percent between January and April of the current year, coupled with a three percent upsurge in US inflation. Furthermore, the document highlighted a substantial increase of 59 percent in Nigeria’s exchange rate during the same period, contributing to the necessity of revising electricity tariffs to reflect the prevailing economic conditions.
The decision by NERC to defend the tariff hike comes amid mixed reactions from stakeholders, with some expressing concerns over the potential impact on consumers’ livelihoods. However, proponents argue that the adjustment is imperative to sustainably improve electricity supply and stimulate investment in the power sector, ultimately bolstering Nigeria’s economic growth and development.
As the nation grapples with the challenges of ensuring reliable electricity access for its citizens, NERC remains committed to implementing policies and regulations aimed at fostering a more efficient and sustainable power sector.
