Leader of the Social Democratic Party (SDP) and its presidential candidate in 2023 general election, Prince Adewole Adebayo, has faulted the planned hike in electricity tariff.
He said the Federal Government might be playing politics with the sector and called for the de-politicisation and increased investment in the sector.
Adebayo noted that the government appeared to be dwelling more on creating an electricity market by trying to follow the examples in countries like Chile and other places.
According to him, electricity in those countries is not seen from the strategic national development point of view; the way it was reflected in Nigeria’s first national development plan.
The SDP leader said the government is not looking at electricity from the social service point of view but like creating a market for products.
He said the problem with such an approach is that the product the government is trying to create a perfect market for does not exist.
“So, it will be good for the government to forget the idea of creating a perfect market. They should try as much as possible to make supply available, and it is an engineering question.
“There is no amount of change of language that can run away from the fact that people will know when there is electricity. Remember how we used to talk about generating 5,000 megawatts (MW). Now, they have changed it. So, it is just a mathematical language.
“At the end of the day, people will know whether electricity is available, stable and affordable, or not. It requires a lot of investments, and some of the investments have lead time.
“The problem with politics is that the President has only four years. If you have an engineering project that requires 16 years of continuous investment, there is no need lying to the people that you are going to fix it in four years.
“You will see that many people have fallen by the wayside. (The late Justice Minister) Bola Ige came and said that in six months, there would be electricity. If you listened to (erstwhile Works, Housing and Power Minister) Babatunde Fashola, by now we should be swimming in electrical current. I believe that in his house now, he is probably running on a generator.
“So, what we need to understand is the advice I gave in 2001. I remember in September 2001, I attended the National Council on Power and I advised them to de-politicise power and make it an investment, just like you need to de-politicise health care delivery and things like that. This is because these things require time and major investment.
A Federal High Court sitting in Lagos has struck out a case by the Manufacturers Association of Nigeria (MAN) challenging the implementation of electricity tariff review by the Abuja Electricity Distribution Company PLC and 11 others.
In the judgment on 7 October 2024, the Court considered all the parties’ arguments and ruled that MAN’s suit was an abuse of court process being premature and without due regard to the provisions of section 51 of the Electricity Act 2023.
The Court also held that MAN’s case disclosed no reasonable cause of action as it had not exhausted the dispute resolution mechanism. It thus, held that the suit was not instituted with due process of law, and consequently struck out the case.
The Nigerian Electricity Regulatory Commission (NERC) on Thursday made this known in a public notice in its X handle.
NERC recalled MAN had challenged the minor review of the electricity tariff by the Nigerian Electricity Regulatory Commission (NERC) and filed a lawsuit at the Lagos Judicial Division of the Federal High Court.
MAN sought four reliefs: that due process stated in the Act for the review was not fulfilled before AEDC and the others applied to NERC for the tariff review on 31 July 2023.
It stated that regulatory requirements for tariff reviews were not followed before NERC issued the Supplementary Order of 3 April 2024 and the subsequently reviewed rate of 6 May 2024.
MAN also held that placing the burden of the tariff increase on only Band “A” feeders and leaving out other bands amounted to discrimination against such consumers.
It then noted that the defendants must comply with administrative procedures for tariff review before rightfully implementing the April and May Supplementary Orders.
NERC objected to the suit stating that MAN’s case constitutes an abuse of court processes, being hasty and prematurely filed without following due process of the law.
Manufacturers are still over the recent increase in electricity tariff for Band A customers. Even after government buckled under pressure by aggrieved Nigerians and re-adjusted the tariff downward, and also sought to justify the higher tariff by citing the reduced electricity subsidy from about N3 trillion to N1 trillion, manufacturers are not swayed. To them, only an outright suspension of the tariff hike will suffice, given what they consider as its negative trickle-down effects on the economy, especially the manufacturing sector. Assistant Editor CHIKODI OKEREOCHA looks at some of the arguments put forward by manufacturers in favour of a reversal.
Even before protesters, Wednesday last week, stormed the Ikeja Underbridge in Lagos, demanding among other things, a reversal of electricity tariff hike, members of the Organised Private Sector (OPS), particularly manufacturers, had been unrelenting and unequivocal in their demand for the immediate suspension of the implementation of the recent increase in electricity tariff by the Nigerian Electricity Regulatory Commission (NERC) for Band A customers.
The obviously riled manufacturers had kicked their heels in, insisting that the over 230 per cent increase in electricity tariffs at this difficult time is not business friendly. According to them, it would exacerbate the already high-cost operating environment, leading to closure of many private businesses, increase the rate of unemployment and of course, insecurity in the country. They also pointed out that the exponential tariff increase in the face of inadequate electricity supply is inimical to the competitiveness of Nigerian products and businesses.
Sometime in April this year, the Federal Government, through the NERC, drew the ire of manufacturers and indeed, electricity consumers across the country when it announced a huge increase in electricity tariff for customers under the Band A category, from the initial N68 per Kwh (kilowatt hour) to N225 per Kwh. Although, Electricity Distribution Companies (DisCos), backed by NERC, in exchange, dangled a 20-hour minimum daily supply of electricity to Band A customers, the 240 per cent increase was not well received by manufacturers and other members of the OPS, including Nigerians.
However, it took sustained opposition by manufacturers and aggrieved Nigerians to force the hand of the Federal Government to approve a downward review of the electricity tariff for Band A customers from N225/Kwh to N206.80/Kwh. And perhaps, to justify the recent increase in electricity tariff for Band A customers, Minister of Power, Adebayo Adelabu, last week, said the move reduced the electricity subsidy paid by the Federal Government from about N3 trillion to N1 trillion.
Adelabu, who spoke at a public hearing on electricity tariffs in Abuja, organised by the House of Representatives Joint Committee on Power, Commerce, National Planning, and Delegated Legislation, said without the tariff increase, the expected electricity subsidy would have been about N3 trillion. He insisted that government could no longer afford to bear the cost of N3 trillion in subsidies, arguing, however, that even with the tariff increase, the cost of electricity is still cheaper compared to Premium Motor Spirit (PMS), otherwise known as petrol, and diesel.
The Minister also said Nigeria offers the cheapest electricity tariff in sub-Saharan Africa. His words: “We are still about the cheapest, even in sub-Saharan Africa, in spite of the tariff. Our neighboring countries pay higher. So, the price isn’t comparable. Band A is cheaper compared to other sources of generating power. It is almost 50 per cent cheaper to connect to band A of the national grid than to run on fuel and diesel. So, when we complain about the higher tariff, it is cheaper for any business to pay for a grid connection than to individually generate power.”
However, Adelabu’s arguments in favour of the tariff increase did not hit the right chord in the ears of many Nigerians, with angry protesters riding on the platform of the 2024 Democracy Day to once again re-echo their disapproval of the tariff increase. Even before the protesters took to the streets on Wednesday, June 12, manufacturers, who appear to be worst hit by the unsavoury impact of the latest tariff increase had mounted intense pressure on the Federal Government to pull the breaks on the implementation of the new electricity tariff.
Manufacturers, under their umbrella body, Manufacturers Association of Nigeria (MAN), said based on feedback and numerous complaints from member-companies on the implications of the astronomical increase in electricity tariff by the NERC for Band A customers, “This sudden exponential increase in the face of inadequate electricity supply is inimical to the competitiveness of Nigerian products and businesses and will further aggravate the cost of production.”
The occasion was the recent bi-annual presentation of Q1 2024 MAN CEO’s Confidence Index (MCCI) report at MAN House, Ikeja, Lagos, were MAN DG Segun Ajaiyi-Kadir said, for instance, that as an immediate impact of the outrageous increase in electricity tariff, a medium-sized company using 700Kw will need to pay about N1.4 billion per annum for electricity. He, however, lamented that in China, a similar medium-sized company will pay a little over N725.8 million.
“Obviously, the new electricity tariff is inconsiderably very high when compared with the going rates in countries with significant manufacturing performance,” Ajaiyi-Kadir kicked, pointing out that “In the US, UK, Germany, France, China, India, South Africa and Ghana, prevailing electricity cost per kilowatt hour are $0.1545, $0.3063, $0.53, $0.089, $0.068, $0.0999 and $0.123 respectively. The conversion values of the afore-mentioned electricity cost in naira are N205.49, N407.38, N704.90, N76.21, N188.37, N90.44, N132.87 and N163.59 respectively.”
Apparently drawing strength from the fore-going comparative analysis, the MAN DG said: “Clearly, with the new tariff of N225/Kwh (i.e. before the slight reduction to N206.80/Kwh), Nigeria now ranks third after Germany and UK on the list of selected countries with high electricity cost. What is most worrisome with the Nigerian case is the fact that the electricity supplied is inadequate, in the face of macroeconomic instability, infrastructure deficit, as well as other supply side constraints limiting the productive sector’s performance.”
Ajaiyi-Kadir lamented that Nigeria currently ranks among countries with the lowest access to electricity as only 59.5 per cent of its population has access to highly unstable electricity, far below the 100 per cent access in African countries like Egypt and Morocco. “Therefore, frankly speaking, over 65 per cent of private businesses, especially manufacturing concerns and Small and Medium Industries (SMIs) will be forced to close down due to the high electricity tariff,” he warned.
The thing is that the Federal Government, through the NERC, may have justified the tariff hike to address mounting debt and ensure the continued functioning of the power sector. But in doing so, many Nigerians who weighed in on the matter expressed fears that SMIs and MSMEs will hold the short end of the stick under the current high tariff regime. According to them, many of the small businesses might be forced out of business due to higher utility bills resulting from the tariff hike.
MAN represents the interests of over 3,000 manufacturers (small, medium, large and multinational industries) spread across 10 sectors, 76 sub-sectors and 16 industrial zones. And manufacturers are heavy users of electricity in Nigeria and this explains the Association’s keen interest in all electricity related discourse and development, particularly electricity supply and tariff.
Also, the manufacturing sector employs over five (5) million workers directly and indirectly with 8.93 per cent contribution to Gross Domestic Product (GDP). The sector also dominates export trade in the West African region, generates foreign exchange, and contributes substantially to government revenue and human capital development in Nigeria.
Based on these, MAN President Otunba Francis Meshioye said it is therefore imperative that the sector’s performance is enhanced through a pro-manufacturing policy that will encourage scale and lower unit cost of production rather that throwing fiery darts that will worsen its performance. He said top on the list of challenges confronting the sector is the issue of inadequate electricity supply and this has been largely responsible for the sector’s lackluster performance for some decades now.
Meshioye said in fact, electricity related expenses of a manufacturing concern constitute about 40 per cent of the production overhead in some sub-sectors. “This is not growth friendly and is antithetical to competitiveness,” he charged, pointing out that the astronomical tariff increase itself was against the Multi-Year Tariff (MYTO) Order referenced NERC/2023/05, which, according to him, valued the cost-reflective tariff at N114.8/Kwh (determined using exchange rate of N919.39/$1.
He also argued that it does not reflect the current exchange rate reality that has seen the naira appreciate by 30 per cent from N1, 900 in February to N1.330 in April 2024, for instance. “The recent hike failed to comply with the customer consultation requirements. Ideally, electricity consumers should be given notice of intention to carry out a tariff review. NERC should publish a consultation paper, which can be downloaded from its website for review by stakeholders and all electricity consumers to a public consultation among others,” the MAN president added.
Furthermore, he accused the NERC and DisCos of failing to explain and justify how increase in tariff for Band A customers will lead to substantial increase in electricity generation and supply when the installed capacity hasn’t been fully utilized due to the limited capacity of Electricity Generating Companies (GenCos) and DisCos to generate and distribute adequate electricity supply nationwide.
Ajaiyi-Kadir, while pointing out that about 30, 000 MW of electricity is required to sufficiently meet the growing electricity demands by businesses and households in the country, said the Transmission Company of Nigeria (TCN) data show peak power generation of slightly over 4, 600 MW between March 6-13, 2024, which is far below all known benchmark for national industrial or socio-economic development.
The MAN DG insisted that the explanation by DisCos supported by NERC that consumers on Band A enjoy 20 hours minimum daily supply of electricity needs to be clarified and verified. “In addition, it is of essence to consider the number of outages due to in sufficient and inefficient infrastructure of electricity transmission and distribution as frequent outages/interruptions wreaks havoc in terms of production losses for manufacturers,” he said.
The recent increase in electricity tariff sanctioned by the government, has drawn the ire of many Nigerians; and rightly so. In an attempt to ward off criticism of the increase at a time of unprecedented hardship over cost of living, the government and its strategists, claimed that the increase is basically for the elites, otherwise tagged ‘Band A’ consumers. The increase, about 300 percent, was therefore aimed at dividing consumers along income line.
But this excuse immediately falls like a pack of card when examined, even in its face value. The use of band system as a way of supplying and surcharging consumers is a form of economic apartheid. Giving a certain percentage of the population longer hours of electricity supply because of ability to pay is not only illegitimate and unjust but also anti-development. It clearly gives the electricity companies (Discos and Gencos) an alibi to avoid improving facilities, production and supply, since their profits are guaranteed from a certain layer of consumers.
It is one thing to give some priority to certain critical sectors such as public institutions (health, educational, security, etc.) and important economic sectors, when there is limited production and supply; it is another thing to segregate consumers on the basis of ability to pay more. Even such a policy of prioritizing critical sectors will only be a temporary and short-term one, and not a permanent policy, upon which all other policies will be based.
Secondly, the idea that the tariff increase is only meant for those who can afford it betrays the real intention of the policy. There is no demographical data to show that poor and working class people do not live in areas designated as ‘Band A’. Even if the increase will affect only upper middle class and big businesses, simple economics make us to understand that this will be transferred to other social and economic strata, especially the working class and the poor. More than this, the increase is only a dress rehearsal for increase across the board, because the same argument used to justify latest increase applies to other categories of customers, only that the government wanted to test the water with ‘Band A’. It is not a new strategy.
But one of the major planks of this contribution is the argument for the increase: the need to end electricity subsidy and allow for cost- or market-reflective tariff. This is flowing from the idea that subsidy is altogether bad and market fundamentals must not be interfered with. This is coming from the Structural Adjustment Programmes of the Bretton Woods institutions, which are actually in the service of global finance capital, the controlling arm of global capitalism. Yet, the most advanced economies and fast developing economies actually implement huge subsidy programmes across sectors to sustain the status of their economies or to move them forward. Even if a great part of these subsidies goes to the rich class, a large percentage is still directed towards expanding their economies.
Developing countries that mostly depend on primary product extraction are told to avoid all subsidies, even when they are important for spurring their economies towards development and human development. Indeed, the best era of improvement in human and economic development for the developed economies happened when state was directly intervening in the economy through essential subsidies, investment in important economic sectors and human development, and curtailing the excesses of capitalist class, and not excusing them as presently witnessed.
However, we need to probe this argument that there is electricity subsidy. How do we even come about subsidy in the first place? Most factors for electricity production and distribution are relatively constant: the installations, transmission lines, landed properties, labour. The only variable is gas, which price fluctuates at relative price that can be accommodated within a stable tariff regime. Moreover, Nigeria, as a major gas producer, cannot be selling gas at international price for an economic-determinant sector like power sector. What a development-driven government would do is to allocate a percentage of its gas resources to important sector like power, which is sold at discount rate to power companies, who in turn are compelled to reflect this in reduced tariff, and invest in modern equipment.
Rather, what you have is a continuous increase in tariff almost every year. Meanwhile, there is hardly any improvement in facilities, electricity infrastructures or installations. All the distribution companies (Discos), generating companies (Gencos) and even government-owned Transmission Company of Nigeria (TCN) are short-staffed such that it will sometimes take days to effect repairs in damaged facilities. No investments in modern equipment to limit electricity loss and theft. On the other hand, consumers are made to shoulder the responsibility of supposed private companies including paying exorbitantly for prepaid meters, subsidizing revenue shortfall of discos through outrageous estimated bill and paying for repair of electrical installations (e.g. transformers).
Worse still, the same government that was talking about ending subsidy on electricity has given tens of billions of naira in dole-outs and financial supports to the Gencos and Discos. Interesting fact is that the government still have substantial share in the ownership of Discos and some of the Gencos. Yet, while the private majority shareholders are making profits and using government funds to pay off bank loans, government, as minority shareholder, cannot point to any gain or profit accrued to the public from these companies. Rather the same government is not only giving billions of public funds to bailout private business, but it is also helping them to milk Nigerians dry through continuous tariff hike. Nigerian Electricity Regulatory Commission (NERC), which is supposed to defend public interests, serves more the interests of Gencos and Discos, who want to make huge profits with little or no investment.
Furthermore, the failure of the government to fund alternative power generation and supply, especially through solar and wind energy, is part of the agenda to protect the profits of private businesses in the power supply network. If government embarks on a policy to power ALL public institutions with solar and wind power supply systems, this will reduce, on a medium and long term, government expenditure, reduce reliance on crude oil and fossil fuel, and rapidly increase renewable power supply uptake across the country. By directly funding production and installation factories for renewable power and establishing research centres/institutes for renewable energy, a new clean energy economy will be created that will have a multiplier effects on the economy.
A deliberate focus on investment in stand-alone and non-grid renewable power for rural homes, low income earners and workers, whose income is fixed but spend significant share of their income on energy, will reduce cost of living and poverty, and further spur the economy, as more disposable income will be available for other needs. This will also reduce pressure on existing traditional electricity capacity, and also compel private electricity companies (Discos and Gencos) to be more responsible and competitive.
Ultimately, to guarantee constant and affordable electricity will require Nigerian state putting the power sector under public ownership, with democratic and accountable management. The current failure of private-sector-led power sector makes this obvious than ever. But the biggest task is for the trade union movement to push genuine pro-people energy policies. It is in the interests of the working class to ensure that economic policies reduce cost of living and increase living standard, while narrowing wealth gap and inequality. This cannot be done through mere advocacy but as a cardinal aspect of trade union principle and agitations.
•Ibrahim, activist, author, researcher and climate justice campaigner writes from Ile-Ife, Osun State.
The National Union of Electricity Employees (NUEE) has kicked against the increase in electricity tariff announced recently by the Federal Government.
Power Minister Adebayo Adelabu announced the tariff increment for customers on Band A from N68 to N225 per kilowatt-hour with effect from April 1.
In a statement yesterday, the NUEE, through its National President Adebiyi Adeyeye, opposed the tariffs hike.
Adeyeye said: “We vehemently oppose any policy that burdens the Nigerian people, particularly the less privileged. I am deeply concerned about the burden this increase places on our members and the general masses, particularly during a challenging economic climate like this.
“While we recognise the need for investment in the power sector, I believe a focus on improved efficiency and reduced energy losses should be prioritised before further tariff adjustment.
“The proposed tariff hikes, especially for Band A consumers, will disproportionately affect everyone that relies heavily on electricity for their daily needs.
“This shift in pricing dynamics threatens to exacerbate inequalities, favoring the affluent while placing undue strain on the less fortunate segments of society.”
The NUEE president added that the timing of the tariff increase was wrong, given the current economic situation.
He added: “No consultation was made with any stakeholder before flagrantly violating the provisional Power Sector Reform Act, 2023, as amended.
“NUEE strongly condemns this decision and demands immediate action to reverse it. If the government fails to address the crippling cost of electricity, NUEE will not hesitate to take strong action, including the swift withdrawal of our members expected to be used by DisCos to impose the tariff hike on the good people, to protect the livelihood of our members.”
Also, a power expert, Mr. Chinedu Bosah, has urged the Federal Government to review the 300 per cent increase in electricity tariff recently introduced by the Nigerian Electricity Regulatory Commission (NERC).
Bosah, who is the National Coordinator of the Coalition for Affordable and Regular Electricity (CARE), made the appeal in an interview with the News Agency of Nigeria (NAN) yesterday in Lagos.
According to him, a comprehensive review of energy policies will ensure affordability and sustainability for all Nigerians.
The power expert said the 300 per cent tariff hike was not consumer-friendly and urged labour unions to open discussion on it with the government.
He also urged the government to reconsider its decision to raise gas prices, saying it would ultimately increase the cost of electricity for consumers.
Also, the Chairman of the Customer Consultative Forum of Festac/Satellite Town, Dr. Akinrolabu Olukayode, described the tariff hike as detrimental to consumers’ living standards.
Olukayode said there was a need for proactive government investment in the power sector to improve infrastructure and service delivery.
He highlighted the challenges faced by consumers due to frequent power grid collapses and the reliance on expensive fuel for backup power generation.
Olukayode also condemned the increase in gas prices, arguing that it would further burden consumers already struggling with rising costs.
He suggested alternative policies, such as selling gas in local currency to boost revenue and alleviate pressure on consumers.
Olukayode called for a restructuring of the energy sector to allow regions/states more control over their resources.
The expert warned of the dire consequences of continued tariff hikes and called for measures to protect consumers from further economic hardship.
The Nigerian Electricity Regulatory Commission (NERC) has appealed the judgment mandating it to reverse the 45 per cent increase in electricity tariff.
It has also filed a stay of execution of the judgment, warning that total blackout looms if the application is not granted.
In a Motion on Notice, NERC is seeking an order staying execution of the judgment pending the hearing and determination of its appeal.
In a supporting affidavit deposed to by Martins Nwankwo, it said: “Refusal to grant this application will result in devastating consequences for the nation and indeed the entire electricity consumers in Nigeria as investment in power sector which encourages healthy competition will be discouraged.
“In the same vein, the entire electricity generation and distribution stands the risk of total collapse in view of the recent devastation caused by vandalisation of power installations with its attendant decrease in power generation and distribution.
“If this application is not favourably considered, there is a high likelihood that the citizens of the country will be subjected to total blackout while business and investments will be drastically affected.
“We submit that any attempt to further subject the masses to further hardship will be setting the stage for chaos and anarchy in the society; which effect may be overwhelming.”
Justice Mohammmed Idris of the Federal High Court, Ikoyi, Lagos, in a July 13 judgment on a suit by activist-lawyer Toluwani Adebiyi, declared that the electricity tariff increase was illegal.
He ordered that it should be reversed immediately.
NERC, in its Notice of Appeal filed by its counsel, Chief Anthony Idigbe (SAN), based on 14-grounds, said Justice Idris erred in law when he held that the court had jurisdiction to entertain Adebiyi’s originating summons when the processes were incompetent and statute barred, having been brought outside the statutory period prescribed under Section 2(a) of the Public Officers Protection Act of 2004.
NERC said the trial judge took the litigant’s position by assisting him in couching his claim, adding that Justice Idris deprived the appellant of its constitutional right to fair hearing by granting a relief on newspaper admissibility not sought by the plaintiff, without hearing from the appellant.
The appellant claims Justice Idris erred in law when he held that Adebiyi is allowed to approach the court without exhausting NERC’s internal dispute resolution mechanism pursuant to Section 45 and 50 of the Electricity Power Sector Reform Act 2005 (EPSRA).
The Federal High Court, Lagos Division, on Wednesday nullified the increment in electricity tariff announced on December 21 last year by the Nigerian Electricity Regulatory Commission (NERC).
Justice Mohammed Idris ordered NERC to revert to the former tariff and restrained it from further increasing electricity tariff “unless it complies strictly with the relevant provisions of the Electricity Power Sector Reform Act (EPSRA) 2005.”
The judge delivered the judgment in a suit filed by human rights lawyer, Mr. Toluwani Yemi Adebiyi, challenging the increment.
Justice Idris described NERC’s action as “procedurally ultra vires, irrational, irregular and illegal,” and awarded the sum of N50,000 in the plaintiff’s favour.
In deciding the substantive suit, the court relied on Sections 31, 32 and 76 of the EPSRA, and held that NERC “acted outside the powers conferred on it by the Act and failed to follow the prescribed procedure.”
The court added that NERC failed to show that it acted in due obedience to the prescribed procedures and that “there is no evidence that NERC complied with Section 76(6)(7)and (9) of the EPSRA Act.”
“Of all the legal requirements, it appeared that the only one complied with by NERC was that it announced the new tariff in the newspapers.
“It is clear from the affidavit evidence that the increase in tariff was done by NERC in defiance of the order of this court made on May 28, 2015 which directed parties in the case to maintain the status quo.
“The law is that every person upon whom an order is made by a court of competent jurisdiction must obey it, unless and until the order is discharged and set aside at the Appeal Court.
“The tariff increase from July 1, 2015 was done in breach of the ‘status quo’ order. NERC’s action was therefore clearly hasty, reckless and irresponsible,” Justice Idris said.
The judge berated NERC for breaking the law and inviting anarchy.
Justice Mohammed Idris of the Federal High Court in Lagos on Monday renewed the order barring the Nigerian Electricity Regulatory Commission (NERC) from increasing electricity tariff.
He said the order that parties maintain status quo ante bellum subsists.
“The order that the parties in this suit should maintain the status quo ante bellum remains valid and binding until it is set aside by a court of competent jurisdiction,” Justice Idris held.
He spoke while delivering ruling on a contempt proceedings initiated by activist-lawyer, Toluwani Adebiyi, against NERC chairman and Chief Executives of Distribution Companies (DISCOs).
Justice Idris first made the order last May, but while the suit was pending, NERC announced the tariff hike.
NERC’s lawyer, Chief Anthony Idigbe (SAN), and others said they were not personally served with the Form 48 (notice of consequence of disobedience of court order).
Ruling, Justice Idris agreed with the respondents and held that Adebiyi issued Form 49 (a formal application for committal to prison of a person who refuses to obey an order) without properly serving the alleged contemnors with the Form 48.
He said: “It is clear, in this case, that the purported issuance of the Form 49 on the defendants by the plaintiff without prior and proper service of the Form 48 is premature.
“The issuance of Form 49 when the court is yet to hear and determine the application of the plaintiff for leave to serve Form 48 is also inappropriate.
“In the circumstances, I hold that the defendants’ objections have merit. The Form 49 and the motion for order for committal issued by the plaintiff against the defendants are hereby set aside. The court has set aside the contempt application due to fundamental procedural irregularities.”
Justice Idris, however, said NERC and the DISCOs are still liable to be held in contempt should they continue to violate the order.
The Nigeria Labour Congress (NLC) Wednesday assured Nigerians that organised labour has commenced the process of compelling the Nigeria Electricity Regulatory Commission and operators of the nation’s power sector to reverse the recent increase in electricity tariff.
President of the Congress, Comrade Ayuba Wabba said in a statement made available to The Nation in Abuja that organised Labour held series of meetings with the leadership of the National Assembly and the Government with a view to effecting the tariff reversal.
He expressed gratitude to Nigerians for turning out enmass across the country to protest the increase in tariff, pointing out that organised labour still believe that Nigerians should not be made to pay for the inefficiencies of operators of the power sector.
The statement reads:”The leadership of the Nigeria Labour Congress and our colleagues in the Trade Union Congress wish to express our profound appreciation and gratitude to Nigerian workers and people for coming out en mass across the country on the nationwide protest rally we called to voice our opposition to the 45 percent increase in electricity tariff which came into effect on February 1, 2016.
“We wish to, in particular, commend our civil society allies who stood firmly with organised labour through the planning and execution of the February 8th rally. We thank Nigerians from all walks of life who saw the wisdom of our action and identified with the campaign.
“Since the nationwide rally, the leadership of organised labour and our colleagues in civil society have been meeting with the leadership of the National Assembly, with the Senate President, Dr Bukola Saraki, and the Speaker of the House of Representatives, Hon. Yakubu Dogara, being present to underscore the importance they attach to this issue which affects every household in the country.
“We are also having a meeting with the Federal Government under the Chairmanship of the Secretary to the Government of the Federation (SGF), Babachir David Lawal, Minister of Labour and Employment Senator Chris Ngige with a view to annulling the 45 percent tariff increase.
“We wish to assure all Nigerians that we are focused on the main objective of our campaign to ensure that the tariff increase does not stand.
“As we have argued in the course of the rally, we maintain that Nigerians should not be compelled to pay more for darkness, against the background of the flagrant disregard of the terms on which the distribution companies (DISCOs) and generation companies (GENCOs) were awarded our common patrimony in the name of privatisation.
These companies have failed, for instance, to provide prepaid metres as stipulated in the terms of their contract. They have instead continued to violate this special clause by charging and forcing consumers to pay the arbitrary tariffs they have imposed, even as they fail most of the time to provide them the required electricity.”
NLC President commended the governor for having the courage to reverse his action and recall the about 6000 workers wrongly sacked and expressed the hope that the committee set up to implement the agreement reached between labour and the government will faithfully carry out its assignment.
He said: “The leadership of both NLC and TUC also wish to express appreciation to all affiliate industrial unions for mobilising their members to turn out in massive numbers for our action of closing down government and commercial activities in Owerri, the lmo State capital on February 10, 2016 to press home our demands for the recall of about 6000 lmo State workers in government parastatals wrongly sacked by the state governor, Rochas Okorocha.
“While we thank the entire people of Imo State for their uncommon understanding and solidarity with our actions to protect the fundamental rights of workers in the state, we wish to acknowledge Governor Okorocha for having the courage to reverse himself once we convinced him that his action was unlawful and wrongheaded.
“It is our hope that the committee put in place to implement the agreement entered into between us and the lmo State government will faithfully implement the terms of the agreement so that we could put behind us the ugly and unpleasant situation created by the purported sacking of the workers.
“Our hope is that governments in other states, or even at the federal level, will learn from the lmo State case, to avoid creating situations that will bring organised labour to be at loggerheads with them on account of unjust and anti-worker policies.”
The Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN), has appealed to Nigerians to bear the pains of the new electricity tariff hike, describing it as painful pill they must swallow in the interest of the country.
Fashola, who had a meeting with all stakeholders in power sector in Lagos on Monday, and inspected ongoing works at the Alagbon Local 2x15MVA, 33/11 KV injection substation in Ikoyi, told journalists that the right thing could have been to increase the power before the tariff but unfortunately it was not possible considering the rot the government met on ground.
He assured electricity consumers that they will get value for their money, adding that the electricity distribution companies (DISCOs) have been directed to significantly improve service delivery.
Besides, the 10-year tariff order, will from the next two years begin to come down, he added.
He said: “I understand that people who have been disappointed over a long time will feel the sense of concern that again tariff has gone up. But the truth is that this tariff ought to have been there from day one, and I don’t know why government of yesterday was not courageous enough to tell us this was the tariff.
“This is why you have this MYTO (Multi-Year-Tariff-Order) every two years. So they (past governments) have given the impression that the price of power will increase every two years. What we have done now with the Nigerian Electricity Regulatory Commission (NERC) is to give a 10-year tariff. In that tariff, about two years from now, it will begin to go down. Whatever price the tariff offers now, is a lot cheaper than diesel, inverter and petrol generation. My relations also asked me, Minister, what is this? So I’m not exempted. It is a painful pill that I must appeal that Nigerians swallow. It is like quinine and malaria. It is painful, not sweet, and I know that, but I chose it because we are not left with many choices. This is the first major decision in power that this administration is taking. Another problem is transmission, and we are fixing it.”
Fashola stated that people are not interested in investing in gas, adding that are just beginning to show interest.
“So even if you have all the power plants, where is the fuel? So it will get better, and I can only appeal for some understanding that we do this in the best interest of our country.
“We have to improve certain deliveries and that is why we have these meetings with the DISCOs. They have to roll out meters, install lines and transformers, among others,” the minister said.
