The Nigerian Federal Government and Nigerian Electricity Regulatory Commission, NERC, have faced criticism from Nigerians, organized labor, Civil Society Organizations, and power sector experts for the N18 reduction in electricity tariffs for end-users under Band A.
NERC made the announcement regarding the tariff decrease for customers under Band A feeders on Monday, with a cut in electricity price to N200.6 per Kilowatt-hour from N225.
The new tariff implementation was carried out by Ikeja Electric, Abuja, Kaduna, Ibadan, Enugu, and other discos on Monday. This decision came after NERC approved a 240 percent tariff hike for electricity customers receiving between 20-24 hours of supply a month earlier.
Despite the downward tariff review by NERC, Nigerians, organized labor, and various organizations have pushed for the reversal of the hike, citing Nigeria’s economic challenges.
With a two-week ultimatum given by TUC to NERC to undo the tariff hike issued on Sunday, there was hope for an immediate reversal. However, NERC opted for a downward tariff review, attributing it to approved macroeconomic parameters.
The fluctuation in the naira exchange rate, appreciating to N1353.21 per Dollar on Monday, played a role in NERC’s decision to reduce end-user tariffs for Band “A” customers from NGN225/kWh to NGN206.8/kWh.
Barr Dafe Akpeneye, Commissioner of Legal, Licensing and Compliance at NERC, emphasized that the reduction in tariffs was based on various macroeconomic variables.
Nevertheless, the reduction was met with disapproval from the NLC, Civil Society Organizations, and many other Nigerians, who criticized it as insignificant and shallow.
Benson Upah, the spokesperson of NLC, expressed disappointment in the tokenistic nature of the reduction, stating that it falls short of expectations and demands.
In a similar vein, Uket Obonga, the national secretary of the Network for Electricity Consumers Advocacy of Nigeria, accused NERC of confusion and mockery within the sector.
He pointed out discrepancies in NERC’s methodology for determining electricity prices and emphasized the need for adherence to due process in issuing tariff orders.
Ewetumo A A, a retired staff member of PHCN (NEPA) criticized NERC personnel for their misdirection and shallow decision-making, highlighting a lack of feasibility studies and planning in the power sector.
Eze Onyekpere, the Lead Director of the Centre for Social Justice, labeled the tariff reduction as a misguided move by NERC and called for a return to the status quo before April’s tariff hike.