Tinubu Silent Amidst Outcry Over Soaring Electricity Tariffs

President Bola Ahmed Tinubu has remained tight-lipped as Nigerians reel under the weight of a staggering 240 per cent increase in electricity tariffs, exacerbating the hardships faced by citizens.

The recent surge in electricity tariffs has plunged Nigerians deeper into distress, with the fallout from the removal of subsidies and fluctuating currency policies enacted by Tinubu’s administration last year still lingering.

The Minister of Power, Adebayo Adelabu, defended the tariff hike last Friday, asserting that 85 per cent of electricity consumers would not be affected and citing projected savings of N1.14 trillion in electricity subsidies.

However, various stakeholders including the Nigeria Labour Congress, Trade Union Congress, Lagos Chambers of Commerce and Industry, and Abuja Chambers of Commerce and Industry have vehemently opposed the tariff hike, decrying the cloud of confusion surrounding its implementation amidst economic adversities.

Following the announcement by the Nigerian Electricity Regulatory Commission last Tuesday, the eleven Distribution Companies (Discos) swiftly began enforcing the new tariff rates. However, dissatisfaction among electricity consumers has been widespread.

The Abuja Electricity Distribution Company was fined N200 million by NERC for erroneously applying the new tariffs to customers in lower bands, prompting the Commission to order refunds to affected customers by April 11, 2024.

Despite these measures, Nigerians remain apprehensive about potential arbitrary billing by Discos, with concerns raised by the Federal Competition and Consumer Protection Commission (FCCPC) urging the government to mandate metering of all Band A customers within 60 days and prohibiting the migration of consumers to Band A without metering.

Amidst the tariff hike, electricity supply across the nation has been sporadic, attributed to national grid collapses, maintenance works by the Transmission Company of Nigeria, and incidents such as fires. The recent increase in gas prices has compounded challenges faced by Nigeria’s power sector.

Experts have expressed divergent views on the tariff hike. Wumi Iledare, a Professor Emeritus in Energy Economics, criticized the move for prioritizing producer surplus over consumer welfare. Chinedu Amah, CEO of Spark Online, defended subsidy removal as a means to spur economic growth but acknowledged challenges in defining socio-economic status across diverse regions.

Critics like energy expert Eleojo Joseph have lambasted the lack of proper planning and coordination prior to the tariff hike, predicting dire consequences for Nigeria’s economy. Others, like retired PHCN staff member Ewetumo A A, have emphasized the need for holistic reforms addressing gas constraints, transmission bottlenecks, and distribution network deficiencies to improve power supply.