As anxiety mounts on plan for general increase
Nigerians are expressing outrage over the recent electricity tariff hike by the Federal Government, fearing it will worsen the economic hardship already faced by most citizens.
The plan for a general increase in tariffs across all bands has heightened anxiety among citizens, with groups like the Nigeria Labour Congress, (NLC), condemning the move as unjust.
The tariff hike, approved by the Nigerian Electricity Regulatory Commission, (NERC), affects customers under Band A, increasing their rates by 240 percent. This decision, attributed to rising gas prices and foreign exchange rates, aims to reduce the substantial electricity subsidy burden faced by the Government.
Despite assurances from the Minister of Power, Adebayo Adelabu, about a gradual transition to cost-reflective tariffs, critics argue that the hike comes at a time of dwindling purchasing power and economic challenges.
Stakeholders, including economic analysts and civil society organisations, have condemned the move, citing its adverse effects on businesses and households.
In response to the public outcry, lawmakers have promised action to address the issue, with the Senate vowing to intervene when it reconvenes. Additionally, the NERC has instructed electricity distribution companies to refund overcharged customers and ensure transparency in billing.
As Nigeria grapples with energy challenges, including low electricity generation compared to its counterparts, the tariff hike has sparked widespread debate about the Government’s approach to addressing the country’s energy needs while balancing economic considerations.
At 206.5 trillion cubic feet, Nigerias natural gas reserves are among the largest in the world, as the country owns 33 percent of Africas total natural gas reserves.
While Nigeria grapples with generating 12,000MW and transmits 4,000MW-4,400MW, its counterparts, South Africa and Egypt are on 58,095MW and 59,063MW respectively, having constantly explored a diversified mix of energy resources.
