The Senate Committee on Power summoned the Minister of Power, Mr. Adebayo Adelabu, and the top brass of the Nigerian Electricity Regulatory Commission (NERC) to a public hearing. The central issue? The recently implemented electricity tariff hike, a move that has sparked outrage and protests across the country,.
The hearing, held on Monday, April 29th, 2024, was a heated affair. Senators, representing the concerns of their constituents, peppered the Minister and NERC officials with questions. The rising cost of electricity, particularly the 340% increase for band “A” customers, dominated the discussion.
Nigerians Feeling the Pinch
The new tariff regime has caused significant hardship for many Nigerians. Under the new rules, band “A” customers, typically those residing in high-income areas and estates, now pay ₦225 per kilowatt-hour (kWh), a sharp rise from the previous ₦66. This translates to a substantial increase in monthly electricity bills, a burden many citizens are struggling to bear.
Senator Enyinnaya Abaribe, Chairman of the Senate Committee on Power, expressed the Committee’s deep concern. “The timing of this tariff hike couldn’t be worse,” he stated. “Many Nigerians are already grappling with economic hardship. This increase will only exacerbate the situation.”
Justification for the Hike?
The Minister of Power defended the increase, citing the need for investment in the power sector. Mr. Adelabu argued that the current tariff structure was unsustainable and discouraged investment in critical infrastructure upgrades.
Without a robust and efficient power sector, Nigeria’s economic development will continue to be hampered,” the Minister stated. He reiterated that the increased revenue generated from the tariff hike would be used to improve generation capacity, transmission networks, and distribution infrastructure.
NERC Under Fire
The Nigerian Electricity Regulatory Commission (NERC) also came under scrutiny during the hearing. Lawmakers questioned the rationale behind the substantial increase, particularly for band “A” customers.
Senator Dajuma Goje (Gombe Central) asked, “Why such a steep increase for band A customers specifically? Shouldn’t the burden be shared more equitably?”
NERC’s Vice Chairman, Mr. Musliu Oseni, explained the commission’s decision. “Band A customers are typically high-income earners and heavy electricity users. They are best positioned to absorb the increase and contribute significantly to the required revenue.”
Skepticism and Demands for Transparency
However, many senators remained skeptical. Senator Osita Izunaso (Imo West) pointed out the persistent issue of estimated billing. “How can Nigerians be expected to pay such high tariffs when they are being charged for phantom electricity consumption?” he demanded.
Transparency was another key theme during the hearing. Senators called for a detailed breakdown of how the revenue generated from the tariff hike would be utilized. They expressed concerns that the funds may be mismanaged, as has been the case with previous interventions in the power sector.
Public Outcry and Calls for Action
The Senate hearing reflects the public outcry that has erupted in response to the electricity tariff hike. Nigerians from all walks of life have expressed their discontent through protests, social media campaigns, and media appearances.
Civil society organizations (CSOs) have also joined the chorus of frustration. The Nigeria Labour Congress (NLC) has threatened a nationwide strike if the government fails to reverse the tariff hike.
What Lies Ahead?
The Senate Committee on Power has pledged to take a closer look at the issue. They will review the justifications provided by the Power Ministry and NERC, scrutinize the proposed utilization of the increased revenue, and consider alternative solutions to address the challenges in the power sector.
The outcome of the Senate’s investigation will be keenly watched by Nigerians across the country. A decision to reverse the tariff hike would provide much-needed relief for struggling citizens. However, if the increase remains in place, Nigerians can expect to face significant financial strain in the coming months.
The Way Forward
The electricity tariff hike has exposed the deep-seated problems plaguing Nigeria’s power sector. While the government seeks to attract investment, it is crucial to address issues of inefficiency, corruption, and estimated billing. Only through a multi-pronged approach encompassing investment, transparency, and accountability can Nigeria hope to achieve a stable and affordable electricity supply for its citizens.
