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  • Electricity tariffs will be reduced with time, says minister

    Electricity tariffs will be reduced with time, says minister

    …says power sector reforms have attracted investments

    The Minister of Power, Adebayo Adelabu on Friday, May 24, said the current electricity tariffs will be reduced with time.

    He said the tariffs may appear expensive for now but the rates will crash in the same manner the prices of telecoms and handsets fell when they first came to Nigeria.

    He spoke while presenting his ministerial scorecard in Abuja.

    Adelabu noted that the cost of generation, transmission, and distribution of electricity will reduce in the long run.

    The minister said: “It might look expensive at the moment, but I am optimistic that these tariffs will go down. We know how much we were buying SIM cards when telecoms first came. We know how much we were buying the telephone sets but gradually as it scale off, generation, transmission, and distribution, these prices will also go down. So, it is a temporary hardship and it will lead to permanent gain.”

    Adelabu said the electricity Distribution Companies are now responsive to their duties because the Nigerian Electricity Regulatory Commission (NERC) has improved its oversight over them.

    He noted that the Nigerian Electricity Supply Industry (NESI) has made history by introducing a guaranteed service level for band A customers that get a minimum of 20 hours of supply per day.

    He said the government has decided to test run a cost-reflective tariff and the liquidity conditions necessary for attracting investments with only 15% of its customers.

    Adelabu said: “For the first time in Nigeria, we have what we call guaranteed service level. It might be for band A today but no government has ever guaranteed 20 hours of supply, not to even 1% of consumers.

    “But to 15% of consumers, we said, let us start from here and we have guaranteed service level for band A customers with the introduction of cost-reflective tariffs to that band, including liquidity conditions suitable for driving investment.”

    He said the reforms in the NESI have attracted investments from the World Bank and the Nigerian Investment Sovereign Authority (NISA) in one year.

    He attributed the progress in the industry to the Electricity Act 2023 and also recalled that prior to President Bola Ahmed Tinubu’s reforms implementation, the NESI was not attractive to any investor owing to the uninspiring tariff policy and huge debt overhang.

    He said the banks had stopped lending funds to power sector investors.

    Adelabu, however, said that presently, the launch of the Ministry’s Nigerian Power Investment Opportunities and Guidelines 2.0 has highlighted opportunities in the sector, it has fascinated $500million investment from the NSIA (Nigerian Sovereign Investment Authority and N750 million from the World Bank.

    Adelabu said the sector has started recording some progress in the last one year.

    His words: “We have been able to attract investment into the sector because before now nobody was ready to touch this sector because the tariff policy was not inspiring, the debt overhang was too much.

    “Nobody wants to bring capital even bankers don’t want to lend anybody money. But now that is a thing of the past. The Federal Ministry of Power has launched the Nigerian Power Investment Opportunities and Guidelines 2.0 which highlights some of the opportunities in the sector.

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    “We have also attracted $500million dollar initiative from NSIA (Nigerian Sovereign Investment Authority and the World Bank $750million.

    “We are beginning to see some progress from the outcome of the reforms process and key achievements of the administration in the last one year.”

    Adelabu insisted that the power sector has improved in the last one year, stressing the industry has gone beyond where it was.

    The minister, who admitted the sector is yet to arrive at its destination, noted that since it is in the right direction, it will get to its desired destination.

    He said: “The question is has power improved? Yes. It is no longer where we were in February and the journey of a thousand miles starts with a step in the right direction. We are facing the right direction.”

    Adelabu said the Federal Government will in the next couple of months award the contract for the provision of 1.5 meters to Meter Asset Providers

    He said the project which is funded by the World Bank is targeted at improving liquidity in the sector and also reducing estimated billing.

    The minister said the government has targeted deployment of 10 million meters in the next five years with the provision of two million meters yearly.

    He spoke at the presentation of his ministerial scorecard in Abuja.

    “In the next five years, 10 million meters will be procured. And we have started started doing that.

    “We just completed the bidding process for 1.5 million meters financed by the World Bank to improve sector liquidity and reduce estimated billing.

    “Within the next couple of months, this contract will be awarded to the meter providers,” said the minister.

    Adelabu said the Nigerian Electricity Supply Industry (NESI) has seven million metering gap.

    On the metering gap, he said: “We have a Presidential Initiative scheduled to provide 2 million meters per annum for the next five years to bridge the metering gap that we have.

    “We have about a 7 million meter gap in the industry.   Out of over 10 million customers just a little over 5 million are metered.

    “Everybody is complaining about estimated bills. Mr. President is determined to put an end to estimated billing so that nobody is cheating nobody.”

    Adelabu said almost 50 meters have been procured now and deployed to all military formations nationwide to reduce Ministry Departments and Agencies’ (MDAs) debts and improve sector liquidity.

    He, however, noted: “We will not relent until we have a resilient and efficient electricity sector that meets the needs of all Nigerians.”

    The minister said the government has started settling the N47.19billion MDAs debts owed to the Electricity Distribution Companies (DisCos).

    He said the ministry has decided to settle all the MDAs debts through one source – the Nigerian Electricity Liability Management Company (NELMCO).

    He said the government has adopted a centralized single point for the payment of the debt that will enter negotiation with the DisCos, which also has some liabilities to settle with the government.

    He said: “They started paying. But we don’t want a situation whereby we are going to apply haphazard solutions for the settlement of MDA’s debts.

    “It is going to be centralized now so that a singular point will be the point of payment of MDA’s debts.

    “There won’t be another accumulation of MDAs debts again. We are assuring that. A lot of them are paying now. But we have what is called the legacy or historic debt of these MDAs.

    “It is so much that they will not be able to pay them down at a go. We have an agency we call the Nigerian Electricity Liability Management Company.

    “We are putting all these debts together and transferring them to NELMCO so that NELMCO will go into negotiation with all the DisCos and they will agree on modalities or a final settlement of these legacy debts because as the government is owing the DisCos, the DisCos to have liabilities to the government.

    “So NELMCO is in a position to negotiate this and ensure we zeroed government debts to power distribution companies.”

    Adelabu said the government has given the DisCos which are still under the management of the Assets Management Company of Nigeria (AMCON) and Banks a deadline to resell the firms to core technical operators.

    He said the ministry has secured a World Bank project to procure the Supervisory Control and Data Acquisition (SCADA) in 24 months since 2023.

    He gave the assurance that with SCADA in place, the National Control Center can monitor the entire national grid to ward- off its collapse.

  • Minister: electricity tariff hike reversal will derail reform plan

    Minister: electricity tariff hike reversal will derail reform plan

    • Fed Govt seeks Labour’s understanding

    • 85% of consumers still enjoying subsidy

    Reversal of the hike in electricity tariff will be a setback for the transformation of the energy sector to boost supply to Nigerians, Minister of Power, Adebayo c, said yesterday.

    He appealed to Labour to see reason with the government.

    Labour on Monday organised a one-day protest and picketed the office of the Nigerian Electricity Regulatory Commission (NERC) in Abuja and those of the distribution companies (DisCos) across the country.

    Adelabu, who spoke to reporters at Aso Villa after the two-day Federal Executive Council (FEC) meeting, assured Labour that the demands placed before the government were being considered.

    He said: “I don’t want us to go back to the situation we were in February and March when we had very low generation. We all felt the impact of this whereby the electricity supply was very low and every household, every company, and every institution, felt it. From the little reform that we’ve embarked upon since the beginning of April, we have seen the impact that electricity has improved and it can only get better.

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    “My appeal is that they should please not derail or distract our transformation plan for the industry. We have a documented reform roadmap to take us to our desired destination, where we’re going to have reliable, functional, cost-effective and affordable electricity in Nigeria. It cannot be achieved overnight because this is a decay of almost 60 years, which we are trying to correct.

    “Nobody promised us or assured us that the road will be smooth. We knew it was going to be rough, but we must weather the storm, which is going to be temporary.

    “It requires a lot of sacrifice from everybody; from the government’s side, from the people’s side, from the private sector side. So, we must bear this sacrifice for us to have a permanent gain.”

    On April 1, NERC authorised a new tariff regime for Band A electricity consumers with a hike from N68 per kilowatt/hour to N225 kilowatt/hour.

    Following an outcry, it was reduced to N206 kilowatt/hour.

    But Labour insisted on a complete reversal before negotiations.

    Adelabu acknowledged the rights of workers and Nigerians to protest and make demands.

    He said: “We have heard the demands; we’re going to look at them. We’ll make further engagements and I believe we’re going to reach a peaceful resolution with the Labour because no government can succeed without the cooperation, collaboration and partnership of Labour unions.

    “So, we welcome the peaceful protest and I’m happy that it was not a violent protest. They’ve made their positions known and the government has taken in their demands and we’re looking at them.

    “But one thing that I want to state here is from the statistics of those affected by the hike in tariff, the people on the road yesterday (Monday), who embarked on the peaceful protests, more than 95 per cent of them are not affected by the increase in the tariff of electricity.

    “They still enjoy almost 70 per cent government subsidy in the tariff they pay because the average cost of generating, transmitting and distributing electricity is not less than N180 today.

    “A lot of them are paying below N60 so they still enjoy the government’s subsidy.

    “So, when they say we should reverse the recently increased tariff, sincerely it’s not affecting them,” the minister said.

    He appealed to Labour and the entire populace to be patient with the administration as it implements its power sector plan for efficiency.

    FEC okays procurement of power sector equipment

    Yesterday’s FEC approved the procurement of critical equipment to improve the electricity sector.

    According to the minister, the three memoranda presented by his ministry got the nod.

    Breaking down the approvals, he explained that the first is for the procurement of 10 transformers and 10 reactors for the Transmission Company of Nigeria (TCN) at $4.8 million and N102 million.

    This, he said, would enhance the optimal performance of the national grid, reduce the risk of electrical shock and equipment damage, and protect personnel from the effects of high voltage.

    The second approval is for the construction of a 93-kilometre transmission line at Oji River/9th Mile (Enugu State) for a 132 KV double circuit transmission line at $33.9 million and N10.1 million.

    This project will stabilise the national grid and expand its capacity, in line with the national grid expansion plan and the Presidential Power Initiative to increase the end-to-end capacity of the national grid.

    The third approval is for the supply and installation of 15 units of emergency restoration systems for 330 KV and 132 KV transmission lines, to enable the quick fixing of vandalised and damaged power infrastructure, valued at $14 million.

    This is a response to the impact of vandalism on power transmission assets, particularly in the Northeast, where there has been a two-week blackout due to vandalism.

    The Transmission Company of Nigeria (TCN) is working to fix the vandalised assets and restore normalcy to the region by the end of the month.

    The emergency restoration system will ensure 24/7 uninterrupted power supply, and the government is committed to ensuring the stability, sustainability, and cost-effectiveness of power supply, as well as planning for future growth.

    Overall, these approvals demonstrate the government’s commitment to addressing the challenges in the power sector and providing reliable power to citizens, which is critical for economic growth and development, the minister stressed.

  • Electricity tariff: Don’t derail plans in power sector, FG begs Labour

    Electricity tariff: Don’t derail plans in power sector, FG begs Labour

    The Federal Government has appealed to the Organised Labour not to derail its transformation plan for the power sector, saying to achieve the desired service the current sacrifice is required.

    Minister of Power, Bayo Adelabu, who made the appeal while addressing journalists at the State House after the Federal Executive Council (FEC) meeting on Tuesday, also assured Labour that the demands they placed before government during their protest on Monday were being considered.

    Leaders of the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) led their members on peaceful protest in different parts of the country, picketing the activities of agencies and institutions under the Power Ministry, demanding the reversal of recent increase in electricity tariff.

    However, reacting to the demands by the Labour unions, Adelabu said the Federal Government had noted their grievances and would be engaging further with them, emphasising that President Bola Tinubu’s administration is a listening government.

    “The first question was about the recent Labour unions’ peaceful protest with regards to the recently increased tariffs for Band A customers in Nigeria’s electricity supply industry. Let me first make it abundantly clear that we are in democracy so there are fundamental human rights. I cannot deny people their rights.

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    “It’s the right of the Labour to protest peacefully and to come up with their demands, from the perspective they saw what we did. It is clearly allowed, it is legitimate and it is understandable. So we cannot stop them from organizing a peaceful protest or laying down their demands. Let me make that clear. President Bola Tinubu’s administration is also a listening government.

    “We have heard demands, we’re going to look at it, we’ll make further engagements and I believe we’re going to reach a peaceful resolution with the labor because no government can succeed without the cooperation, collaboration and partnership with the Labour unions. So we welcome the peaceful protest and I’m happy that it was not a violent protest. They’ve made their positions known and government has taken in their demands and we’re looking at it.

    “But one thing that I want to state here is from the statistics of those affected by the hike in tariff, the people on the road yesterday, who embarked on the peaceful protests, more than 95% of them are not affected by the increase in the tariff of electricity. They still enjoy almost 70% government subsidy in the tariff they pay because the average costs of generating, transmitting and distributing electricity is not less than N180 today.

    “A lot of them are paying below N60 so they still enjoy government’s subsidy. So when they say we should reverse the recently increased tariff, sincerely it’s not affecting them. That’s one position,” he said.

    He appealed to the Organised Labour and the entire populace to be patient with the administration in its planned strategy to restructure the power sector into a standard and more efficient sector, which delivers the desired service to all Nigerians.

    According to him, the current administration was aware of the decayed state of the nation’s power sector, which he said had been so for almost 60 years, adding that the programme of the Tinubu administration is to correct the situation.

    “My appeal again is that they should please not derail or distract our transformation plan for the industry. We have a clearly documented reform roadmap to take us to our desired destination, where we’re going to have reliable, functional, cost-effective and affordable electricity in Nigeria. It cannot be achieved overnight because this is a decay of almost 60 years, which we are trying to correct.

    “Nobody promised us or assured us that the road will be smooth. We knew it’s going to be rough, but we must weather the storm, which is going to be temporary. It’s a lot of sacrifice from everybody; from the government’s side, from the people’s side, from the private sector side. So we must bear this sacrifice for us to have a permanent gain.

    “I don’t want us to go back to the situation we were in February and March, where we had very low generation. We all felt the impact of this whereby electricity supply was very low and every household, every company, every institution, felt it. From the little reform that we’ve embarked upon since the beginning April, we have seen the impact that electricity has improved and it can only get better.

    “So I’m appealing to everybody that one should not toy with this before that we have embarked upon, we are aiming somewhere and we will achieve it,” he said.

  • Labour seeks reversal of electricity tariff increase   

    Labour seeks reversal of electricity tariff increase   

    • TUC, NLC picket NERC, DisCos, others

    Organised Labour yesterday called for a total reversal of the power sector privatisation  and recovery of all sold public electricity assets.

    Members of the Nigeria Labour Congress(NLC)  and Trade Union Congress(TUC)  made the demands while picketing offices of the Nigerian Electricity Regulatory Commission (NERC) in Abuja and electricity distribution companies(DisCos) nationwide.       

    •They also demanded an immediate reversal of the April 3, 2024 electricity tariff hike for Band A customers until ‘’certain’’ conditions are met.

    •The terms which the workers said are contained in their 2021 and 2023 agreements with the government include a ‘’review of the privatisation of the Power Holding Company of Nigeria (PHCN), de-dollarisation of gas supply for electricity generation, distribution of pre-paid meters to all electricity consumers, increase in electricity generation and distribution   with an adequate commitment to investment in green and renewable energy sources.’’ 

    • To show their seriousness, the NLC and TUC leaderships directed electricity workers to cut off power supply to all NERC and Transmission Company of Nigeria(TCN) offices.

    Accusing Power Minister Adebayo Adelabu of supporting apartheid in Nigeria, they charged him to talk less about tariffs and focus on how to  improve electricity generation 

    Labour first took the protest to NERC headquarters before moving to the Federal Ministry of Power in Abuja and the Abuja Electricity Distribution Company (AEDC).

    At the NERC head office, the protesting workers were received by its Chairman Sanusi Garba.  Permanent Secretary, Ministry of Power  Mamudan Mamman received them on behalf of Adelabu, who was attending the  Federal Executive Council(FEC) meeting. 

    As they moved from the NLC headquarters to the NERC office, they displayed    placards  with various  inscriptions like   “Increase regulatory oversight on DisCos and GenCos not tariff Increase on poor and innocent Nigerians “ and  ‘’Let the poor breathe.’’

    Others read ‘’Give us affordable and constant power,” N228 per kilowatt from N68/kWh is killing, reverse it now,” “Electricity tariff Increase, not acceptable “  and  “We are not a Generator Republic.”

    Delivering their demands to the NERC  Chairman, NLC President Joe Ajaero, said Nigerians have not received services for the tariffs they pay.

     Ajaero said: “We are very serious about our demand that NERC and TCN reverse the recent tariff hike. The tariff is killing. It is killing businesses and Nigerians.

    ‘’As part of our protest, we have asked electricity workers under our centres to cut off power supply in all NERC and TCN offices across the country.   Review the current tariff because it is not workers’ friendly. It is not acceptable.”

    A joint message by the NLC and TUC reads: “Workers are hit hardest by the increase in electricity tariff. Unlike business people, wage-earning workers cannot adjust their income when the costs of utilities are increased.

    ‘’This wage stagnancy amidst increases in electricity and refined petroleum products push workers over and beyond the limits of sanity and survival.

    “Small and medium scale businesses which accommodate millions of workers in the informal economy are severely affected by increases in energy costs. Many of such businesses are forced to shut down thus ballooning Nigeria’s unemployment market. The ancillary cost of crimes and social unrest is a daily living experience on our streets.

    “Organised labour in Nigeria is forced to the conclusion that the privatisation of the power sector in Nigeria is a colossal failure. Organised labour in Nigeria demands the complete reversal of power sector privatisation and the recovery of all public electricity assets sold dirt cheap to largely inexperienced, technically- deficit, and financially challenged private investors.

    “Nigerian workers reject the recent increase in electricity tariff and the associated upgrading and downgrading of customers from one Band to another. It is our clear position that Nigeria, after more than 60  years of independence cannot be rationing and rationalising darkness. This is unacceptable.

    “We call on the government to respect the terms of the September 2021 agreement with Labour which was reinforced by a 2023 agreement that the  government must halt further increase in the tariff of public utilities until certain conditions are met.’’

    NERC Chairman   Garba said the commission has taken note of all the issues raised by the protesting members of the two labour centres. 

    He added that NERC would go back to the drawing board to review the issues and come up with a solution.

    At the Power House headquarters of the Power Ministry, Ajaero said the government must return to the status- quo before any negotiation with workers.

    Ajaero presented the Organised Labour’s demands to the ministry’s  Permanent Secretary,  Mamman, who acknowledged that the tariff hike was unbearable.

    He told the protesters that the ministry has no role to play in tariff review.  

    “Tariff review is the exclusive responsibility of the regulator. What the ministry does is to give policy direction,’’ the permanent secretary said.

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    He added that since workers turned down the request for negotiation,   he would relate the message to the minister.

    “I want to inform you that I don’t have the power to reverse the tariff. For the cries of all Nigerians, we are going back to the drawing board with the regulator.

    “We all know that we don’t have sustainable electricity. I am going to take your message to the relevant authorities  and then we will look at it and we will inform you.”

    Replying, the NLC President  Ajaero said the government must ‘’go    back  to status quo so  that nobody will negotiate under any pressure.’’

    ‘’It can’t be at band Z and band A and ask us to come and discuss,” Ajaero argued, wondering  why the government would increase the tariff when  there  is no electricity supply,

    According to him, Adelabu has surprisingly become the spokesperson of the  DisCos on tariff matters.

    He urged the minister to cease talking about tariff hike when he has not increased   power supply.

    The NLC President also asked the government to stop the discriminatory tariff, which supplies power to customers based on bands, stressing that “there should be equal rights for all citizens.”

      Looking directly at the Permanent Secretary, Ajaero added: “Your minister has no right. He is supporting apartheid in Nigeria where some people will get 20 hours of electricity and some people will get zero hours. It is unacceptable, Sir.”

    From the Power House, the protesting workers went to the   AEDC  Headquarters where the Ag Managing Director, Mr. Victor Ojelabi, received them.

    Ajaero told  Ojelabi that AEDC must stop the “ discriminatory’’  electricity supply.

    ‘’If you are giving some  Nigerians 10 hours, the other Nigerians are also supposed to get 10 hours. It should not be under where you are living “ the labour leader added.

    *Resign now, Lagos  NLC boss  tells Adelabu

    In Lagos,  the state chapter of the NLC  said the power minister should quit because the present state of electricity supply and the recent increase in tariff showed incompetence on his part.   

    The state chairman of NLC, Funmilayo Sese,  added that categorising electricity consumers into different bands was a form of segmenting the society or creating inequality. 

    Her TUC counterpart, Gbenga Ekundayo, said the increase in tariff has not only added to the financial burden of households but spelled trouble for businesses.

    ‘’With production costs soaring, companies are left with no choice but to pass on these expenses to consumers or face the grim reality of shutting down operations.

    “Consequently, this vicious cycle of inflation and unemployment threatens to plunge the economy into further turmoil,” he said.

    Sese and Ekundayo spoke at Ikeja Electric headquarters Alausa, Ikeja where they led their members to picket the company.

    In Oyo, members of the state chapters of the NLC and TUC    picketed the offices of the   NERC, TCN,  Ibadan Electricity Distribution Company  (IBEDC)  headquarters and regional headquarters, Oluyole IBEDC Staff Development Centres in  Dugbe and  Apata.    

    They said:  “We are fed up with the inhuman policies being rolled out by our leaders. As of today, living in Nigeria has become a crime, we find it difficult to relate to other countries.   We are enslaved in our father’s land. 

    “We are here to pass a message to the IBEDC and NERC concerning the hike in price of electricity supply.  We are here today to say enough is enough.

    ‘’They should let the poor breathe in this country. We are wailing. They should allow us to breathe. That  is the only thing we are agitating for.”

    Also, the   headquarters of the  Jos Electricity  Distribution Company (JED)  along Ahmadu Way was sealed off by an NLC-TUC enforcement team   

    JED’s spokesman, Friday Elijah, who confirmed the development, said, “   We were locked out. Even our  chief security officer is  also outside.’’  

    TUC chairman in the state,  Kenneth Shammah,   said the union would continue to occupy the company’s office until the hike in tariff was reversed.

    ‘’When we had NEPA(National Electric Power Authority), we knew how they were doing. Imagine transformers will have problems and a privatised company will ask you to buy transformers. Where is it done?,’’ Shammah added.

    The situation was the same in states like Ondo, Osun,  Edo, Delta, Bayelsa,  Ebonyi, Abia, Enugu, Anambra, Akwa Ibom,  Kogi, Adamawa Jigawa, Taraba, and Bauchi where placard-carrying protesters shut down the offices of DisCos, TCN and NERC.

    Like the NLC and TUC national leaderships, they called for a reversal of the tariff hike and urgent solutions to the erratic power supply in the country. 

    By John Ofikhenua,  Frank Ikpefan,    Muyiwa Lucas, Chidi-maha Emmanuel,Bisi Olaniyi,Benin,  Yinka Adeniran,   Toba Adedeji,    Osagie Otabor,   Okungbowa Aiwerie,     Kolade Adeyemi,   Nwanosike Onu,   Sunny Nwankwo,    Ogochukwu Anioke,   Damian Duruiheoma,   Simon Utebor,    Bassey Anthony,  Augustine Okezie,    AbdulGafar Alabelewe,    Samuel Oamen,   Fanen Ihyongo,     Ahmed Rufa’i,   Onimisi Alao,   Victor Gai,  and  David Adenuga. 

  • Electricity tariff: NLC, TUC storm NERC, EEDC offices in Anambra

    Electricity tariff: NLC, TUC storm NERC, EEDC offices in Anambra

    Members of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) in Anambra state on Monday, May 13, stormed the premises of the Nigeria Electricity Regulatory Commission (NERC) and the Enugu Electricity Development Company (EEDC) to protest against the recent increase in electricity tariffs.

    The unions were led by their leaders, comrades Humphrey Nwafor and Chris Ogbonna respectively.

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    The labour members marched from their office in Awka to the electricity companies, singing “Aluta” songs to protest the increment.

    They called on the federal government to revert to NEPA, adding that the privatization of the electricity companies has added to the sufferings of Nigerians.

    Details shortly…

  • Increase in electricity tariff daylight robbery – Kogi NLC

    Increase in electricity tariff daylight robbery – Kogi NLC

    Comrade Gabriel Amari, the chairman of the Nigeria Labour Congress (NLC) in Kogi state, has described the electricity tariff increase as daylight robbery that cannot stand.

    Amari said this when organised labour picketed the office of Abuja Electricity Distribution Company (AEDC) in Lokoja.

    He urged the government to reverse the electricity tariff increase for the sake of already pauperised citizens.

    He said the new tariff regime has created the impression that the present administration has no feeling for the suffering masses.

    “Increase in electricity tariffs is a broad day robbery which will not be accepted. The government should know that people are suffering with their obnoxious policies. Nigerians are paying for electricity that they are not using.

    “It is under this administration that we are witnessing discrimination in the distribution of power. We can’t continue like this.

    “The failure of the government to reverse the increase in electricity tariffs will result in a total shutdown of the power sector in the country.

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    “Privatization of the electricity sector is a complete failure.  Nigeria Electricity Regulatory Commission, (NERC), we are saying no to discrimination in electricity distribution. We will continue to resist every form of exploitation by this government.”

    According to him, Labour is the only voice that can stop the policies of government that are anti-people.

    He stressed further: “The Government promised us a new minimum wage but failed to implement it. All they know how to do is to increase electricity tariffs without putting the masses into consideration.

    “Nigerians are really suffering. It is high time the government listened attentively to the voices of Nigerians who are craving an end to their bad policies.”

  • NLC, TUC give NERC ultimatum to reverse increased electricity tariff

    NLC, TUC give NERC ultimatum to reverse increased electricity tariff

    The Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC) have given the Nigerian Electricity Regulatory Commission (NERC) till May 12, 2024 to reverse the hike in electricity tariff to N65/kwh or face a nationwide action across its offices.

    Other demands of the two labour centres include: “Immediate cessation of the discriminatory practice of segregating electricity consumers into arbitrary bands. Restoration of the supremacy of the statutes governing the conduct of operators within the electricity industry.”

    Contained in a letter jointly signed by Comrade Joe Ajaero and Comrade Festus Osifo, and NLC and TUC Presidents, respectively, and addressed to the Chairman/CEO, NERC, the labour centres said: “This is to refer you to our May Day address where we expressed grave concerns regarding the recent announcement of an astronomical hike in electricity tariff across the nation from N65/kwh to N225/Kwh by your Commission.

    “We believe that this decision is not just morally reprehensible considering the difficulties Nigerians are faced with currently, but it blatantly disregards fundamental principles and statutory obligations. It is a slap in the face of justice and fairness, and we will not stand idly by as the masses and workers are subjected to such unacceptable exploitation. As the Regulator of the Electricity sector, it is imperative that your Commission grasps the weight of its responsibilities.

    “NERC’s role entails the regulation of electricity tariffs in the country, a duty outlined in explicit detail within the statutes governing the Commission. Yet, with this recent tariff hike which you have acquiesced, it 1s evident that (he Commission has forsaken its duty and abandoned the people it was meant to protect to the fat cats in the electricity industry.

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    “We are miffed that NERC has become a tacit collaborator in crafting the oppressive pricing regime being perpetuated against Nigerian workers and people. The Laws that sct up the Commission mandates it to act as an unbiased ombudsman in the electricity industry. Unfortunately, the reverse is the case as it has acted in cahoots with the Distribution Companies (DISCQs) and the Generating Companies (GENCQOs) to promote their nefarious market practices.

    “The announced tariff hike not only defies the established procedure mandated by law but also tramples upon the rights of Nigerian citizens. It is a flagrant abuse of power and a clear violation of the trust bestowed upon your Commission by Nigerian people. Such actions will not be tolerated, and we refuse to accept them as the new norm. Nigerian workers and masses led by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), stand united in denouncing this injustice. It is our duty to defend the rights of our fellow citizens against exploitation.

    “We give you until Sunday, the 12th day of May, 2024, to comply. Failure to do so will result in swift and decisive action on our part as we will not hesitate to mobilize our members and occupy all NERC’s offices and those of the DISCOs nationwide until justice is served.”

    The letter was copied to: The Secretary to the Government of the Federation (SGF), Minister of Labour & Employment, Minister of Power, and All Electricity Distribution Companies (DISCOs).

  • House calls for suspension of electricity tariff hike

    House calls for suspension of electricity tariff hike

    •NBA threatens litigation

    The House of Representatives yesterday ordered the Nigerian Electricity Regulatory Commission (NERC) to suspend the operation of the recently announced tariff hike.

    The House also called for the suspension of other conditions in the newly issues review of the Multi-Year Tariff Order.

    Also, the Nigerian Bar Association (NBA) asked the Federal Government to reverse the tariff hike, describing it as illegal.

    The House set up a special committee made up of the Committees on Power, Commerce, Delegated Legislation and National Planning to organise a well-structured hearing on the price regulation of Nigerian Electricity Supply Industry (NESI).

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    The hearing would be with the participation of the Minister of Power, Chairman and Commissioners of NERC, the chief executives of electricity utilities in Nigeria, Presidents of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), as well as leaders of chambers of commerce Nigeria.

    The House resolved to appoint a well-regarded former regulator as technical consultant to develop templates for determination of the “legality, reasonableness of the procedure adopted by NERC in approving the tariff increase and establishing the performance benchmarks for the DisCos”.

    It also resolved to authorise the consultant to work with the special committee to draft a bill to provide for administrative procedures that that entrench proper consultation and legislative review of process for tariff setting in the electricity and other public services in Nigeria.

    These resolutions followed the adoption of a motion of urgent importance moved by Hon Nkemkanma Kama.

    Kama said the legislative motion on increase in electricity tariff seeks to address key issues surrounding the sudden hike in electricity prices in Nigeria.

    He said: “It highlights concerns over due process, fairness, and the impact on consumers. The motion aims to restore public trust, protect consumer rights, and ensure regulatory accountability in the Nigerian Electricity Supply Industry (NESI).’’

    “The facts presented include the alarming tariff increase announced by the Nigerian Electricity Regulatory Commission (NERC) on April 1, 2023, resulting in a staggering 300% rise for certain consumers.

    “However, what’s more concerning are the reports indicating discrepancies in customer categorisation and widespread complaints regarding inadequate service despite increased charges.

    “This situation has not just sparked national anxiety, but it also threatens regulatory certainty and investor confidence in the sector, demanding immediate attention.”

    He said the motion argues for legislative intervention, underlining the constitutional and moral obligations to address the crisis and alleviate the burden on Nigerian citizens.

    “It places a strong emphasis on the legislative oversight role over NERC and the electricity utilities, stressing the need for fair and just pricing and consultation with stakeholders in tariff determination processes. This is not just a responsibility, but a duty we owe to our constituents.

    “Key issues highlighted include the failure of due process in approving the tariff increase, concerns over discriminatory practices, and the disputed nature of government subsidies to electricity distribution companies (DISCOs).

    “The motion proposes resolutions to suspend the recent tariff increases, establish a special committee for hearings involving relevant stakeholders, appoint a technical consultant to assess the legality and reasonableness of NERC’s procedures, and draft a bill to improve regulatory processes in tariff setting.

    “Overall, this motion underscores the importance of legislative action to address the challenges facing the electricity sector and ensure fair treatment of consumers while promoting transparency and accountability in regulatory decision-making.”

    The Ikeja Branch of the NBA said it has commenced process of instituting legal action in the court against government if within the next seven days it failed to reverse “the oppressive tariff”.

     NBA Ikeja Chairman, Seyi Olawunmi gave the ultimatum to the government yesterday while addressing newsmen at the Ikeja Bar Center.

     The bar condemned the classification of electricity consumers into band A or B or C or D or E, insisting it should be scrapped.

    “It is either the DisCos are guaranteeing 24 hours supply for all or they are not. The government and the Nigerian people cannot continue to subsidize their inefficiency in the name of band A or B or C etc.,” he stated.

    Olawumi called for “immediate stop to the illegal implementation of the N225 per kWh imposed on those so called band A customers at the discretion of both the Discos and the National Electric Regulation Commission (NERC) without any empirical basis.”

    The NBA Ikeja Chairman recalled that the previous hike in tariff since 2013 has not led to any form of improvement in the sector.

    “It is our submission that it is so because both the regulatory agency and the Discos are in bed to exploit the Nigerian people.

    “There is no empirical evidence of their investment in the sector.”Rather we have only seen government paying subsidy to them without any corresponding improvement. We must also not fail to mention an obnoxious sharp practice which has been a recurrent decimal with the Discos to the Customers.

    “The DisCos have continued to bill customers for negative metering which they themselves installed. We reject this practice and demand that they be sanctioned”, he said.

     Olawumi noted that the NERC order made in respect of the electricity tariff hike is anti-people, stressing that the tariff smacks of the policy of a government that  has lost touch with the daily realities of its average citizen.

    He noted that the position of NBA Ikeja branch is that, “if the government and concerned individuals fail to reverse the illegal hike of electricity tariffs within seven days, the branch will be left with no choice than to seek appropriate remedies in the court of law.”

    Olawunmi recalled that in December, 2023, NERC issued a new Multi-Year Tariff Order (MYTO 2024) which indicated a purported cost-reflective tariff chargeable by the various Electricity DisCos.

    He said that large chunk of the increased tariff was however reportedly absorbed by the Federal Government under a subsidy arrangement.

    He noted that the purported subsidy has now reportedly been removed by the Federal Government, leading to an over 300 per cent increase in the electricity tariff payable by the end-user, putting Nigerians under a curious band-derivative tariff charging model.

    “We view this sudden astronomical increase in the end-user tariff, irrespective of the technical arguments preferred in justification, as utterly exploitative and non-reflective of the current economic hardship that the masses of Nigerians are going through,” he said.

  • The debate on electricity tariff

    The debate on electricity tariff

     The ongoing debate about the increase in electricity tariff could not have peaked at a worse time. First, after about two weeks of steady Naira appreciation, dollar scarcity precipitated slight depreciation of the Naira. Second, delayed arrival and offloading of petroleum-laden cargo ships led to petrol scarcity, leading to a further hike in the pump price. All of a sudden, already high food prices began to rise again. This latter development could only heighten the problem of energy poverty in the country as typified by perennial fuel shortages, inadequate power supply, and rising costs of both sources of energy.

    The discussion about electricity tafiff has been very useful in letting the public know that about 10 percent (N2.8 trillion) of the national budget is spent on electricity subsidy. Believe it or not, this is the first time that many Nigerians are learning that electricity is subsidised. The direction of the discussion so far is to the effect that electricity subsidy should not be removed within the same year that fuel subsidy was removed. If that were to happen, more people will be thrown into abject poverty.

    The problem now is that the government is between a rock and a hard place. Should it remove electricity subsidy outright so it can save money enough to revamp the power sector, which is said to require about $10 billion annually for ten years? Or should it continue with electricity subsidy and still be able to improve on the infrastructure, generation, transmission, and distribution of electricity? It would appear that the government is meeting each of these challenges halfway: Charge Band A consumers higher tariff but continue with subsidy for other consumers. Then work gradually on improving the power sector.

    Thus, recently, President Bola Ahmed Tinubu signed an agreement with the German Chancellor, Olaf Scholz, to have Siemens inject 12,000 megawatts of electricity into the national grid. Regulations are also relaxed for state and local governments as well as the private sector to supplement the government’s Rural Electrification Project in generating electricity for rural areas.

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    For years, the Federal Government has been struggling to improve the infrastructure, generation, transmission, and distribution of electricity with minimal success. It is universally acknowledged that corruption has repeatedly dampened the efforts. That’s why, today, the maximum electric power generation capacity the government could boast of is only about 14,000 megawatts. However, with grid collapse every now and then, only about 5,000 megawatts of this capacity has ever been in use. This is abysmally low for a population of over 200 million. The result is that nearly half of the population, living mostly in rural areas, has no access at all to electricity. Of those who have access to electricity, about 80 percent do not have a supply of more than 10 hours a day. This implies that most households and businesses do not have access to electricity for more than 10 hours a day.

    If, according to international standards, a population of 1 million people needs at least 1,000 megawatts of electricity, then Nigeria needs at least 200,000 megawatts of electricity for its present population. Good planning would require that this number be doubled in less than 30 years, when the country’s population is also expected to have doubled.

    There are at least three reasons Nigerians have been complacent with low electric power output. First, those who can afford it find an alternative power supply in diesel- or petrol-fueled generators and/or solar powered backup units, while others limit their energy consumption to kerosene, cooking gas, and, of course, raw firewood, all used for cooking.

    However, with a steep rise in the cost of petroleum products, due to the removal of fuel subsidy and multiple exchange rates, many households are finding it difficult, if not impossible, to keep up, while many businesses, including manufacturing industries, are closing down. It is within this context that a hike in electricity tariff has been meeting stiff resistance from various quarters. Although it was stated at the outset that only Band A customers (that is, those getting up to 20 hours of electricity supply daily) would be affected, most Nigerians were not sure whether it was not a ploy to increase the tariff across board.

    Second, older Nigerians have been used to hard times. Whether it was the Electric Corporation of Nigeria, Nigeria Electric Power Authority, or Power Holding Company of Nigeria, epileptic or no power supply had been their lot.  For most of them now, it is a case of nothing is new under the sun. However, the younger generation is more intolerant and restive. As this restive population grows in number and in age, the government can expect a revolution, if the present trend of poor electric power supply persists.

    Another reason for complacency is the periodic distribution of palliatives by federal, state, and local governments as well as by individual politicians, especially those currying favour for the next round of elections. But palliatives only provide temporary cushions for the poor in harsh economic times. They do not fix the energy deficits.

    Today, however, complacency is challenged by the digital world we live in. We must charge phones and computers. Industries must power the assembly line, including sophisticated robots. As we move from fossil fuel to electric cars, such as Tesla, electricity supply has become more crucial than ever.

    Nevertheless, caution is needed on electricity tafiff at this time. A hike in electricity tafiff, no matter the category of consumer, will jolt an already destabilised economic situation. The government currently has the sympathy, although not necessarily the support, of the majority of the population on its economic programmes. Nothing should be done to incur their distrust.

    That’s why the government has to come out in clear language about the direction it is taking on the energy crisis, especially on electricity tariff and petrol supply. Admittedly, NNPCL has spoken on the delay in supply and assured the public of supply in no distant time. However, the Minister of Power has not been the best messenger regarding electricity tariff. Rather than explain the government’s position in clear terms, he resorted to blaming the consumers for their electricity consumption patterns. Besides, till today, the idea of Band A customers is jargon to the roadside welder, who hears about tariff hike and gets nervous. The government surely needs to do more on retail communication of its programmes. It must be realised that government programmes are supported or rejected, depending on how they are presented and understood by the public.

  • Electricity tariff and tyranny of blackouts

    Electricity tariff and tyranny of blackouts

    SIR: The recent decision of the Federal Government to increase electricity tariffs is one that has rankled with a great deal of people, especially because the hike doesn’t result in a higher standard of energy services.
    ‘Up NEPA!!!’ with which Nigerians cheer intermittent power supply has become at once a paradoxically cheerful crumb of triumph and comfort catalyzed in two words, and an elegy for the failure of energy in the country.
    There is also a new termite in the bunker waiting to chew everything to pulp, and it is the tendency of the national grid to collapse unimpeded sporadically, plunging vast swathes of the country into darkness.
    Nigerians have tried so hard to keep the lights on. Not the one from the distribution companies, for it is said that even they use generators; but light like hope that illumines the labyrinth of the heart. Now, the light is going off at the end of the tunnel, Nigerians are at the end of their tethers and all they see is darkness.
    Another fact that is making it impossible for Nigerians to swallow the high tariffs pushed into their faces is that there is no improved energy services to match the rapacious appetite of the regulators to hike tariffs. Inadequate energy supply continues to confront citizens and visitors alike in their many lives as consumers, business owners and service providers. If services are not commensurate with cost, the consumer is entitled to their disgruntlement.
    Those who make, unmake and remake the policies that have kept Nigerians in darkness for decades now must find the humility to admit that their hubris is hurting not just a critical sector, but an entire country. Since cutting the tree from the top isn’t working, can those who wield the axe be humble enough to start from the bottom? Can they unbundle the sector and start again?
    The best resolution for desperate illness is not usually a cure. It is sometimes death, only through which life can begin again, unbundled from previous concerns and unburdened by past niggles. Since various cures have been tried — and failed—for the power sector, it may be time to take a different road. The present road surely forks somewhere.
    Nigeria wanted steady power supply to be its metaphor for returning to democracy after eight years of darkness under military rule. President Olusegun Obasanjo sunk about sixteen billion dollars into the project. But all it has produced until date are long shadows and even longer groans, a landscape populated by non-existent power infrastructure and stifling heat. As usual, the funds have since flown away, finding eternal disappearance in the forests of Nigeria’s corruption. The ensuing darkness has ensured that Nigerians cannot see the wood for the trees.

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    In the face of this regime of extortion, this era of extortionate energy pricing, this propensity to take an arm and a leg for light, and eons of sighs and sneers, what’s this darkness? What is this death of light, this dearth of power?
    Nigerians are uncomplicated consumers who are always willing to pay for what they consume, their tastes are often measured and prudent. In fact, they usually pay even for what they do not consume – that is, until they can no longer pay. Nigerians pay bills even when treated unfairly.
    A case in point is the situation of electricity consumers who are yet to obtain their prepaid meters. Many of them have paid and processed their meters, but are yet to receive them. While what should be a seamless process suffers unnecessary delay, they are billed extortionately and indiscriminately every month. Paired with the costs of other goods and services now, what is visible is a noose overflowing with necks.
    It exhausts scandal that Nigeria remains In literal darkness many years after independence. What is more scandalous is the half-hearted attempts to treat a grave illness with painkillers. If it has not worked, and is not showing any sign that it will work, why do Nigeria’s power-brokers persist with this folly?
    If Nigeria must finally stumble out of this dungeon, then there must be light. As long as it is only darkness, nothing will change. To ask people to pay more for deepening darkness is depredation in daylight. The tariffs are like guns and sheriffs are thieves.


    •Ike Willie-Nwobu,Ikewilly9@gmail.com