Energy: Discos Mull Electricity Tariff Hike Nationwide Jan 1

According to reports, Nigeria’s electrical distribution firms, or DisCos, intend to increase electricity rates across the country starting on January 1, 2024.

Under anonymity, a DisCo source told DAILY TRUST that the development had been confirmed.

As of Sunday morning, however, the Nigerian energy Regulatory Commission, or NERC, and Abuja Electricity Company had not responded to a query from DAILY POST on the proposed increase in energy rates.

Any proposed increase in the price of energy would be completely reckless on the part of the government, according to Kunle Olubiyo, President of the Nigerian Consumer Protection Network.

According to him, Nigerians are still grappling with the effects of fuel subsidy removal, rising inflation and other economic reforms by Tinubu’s administration.

“Increasing electricity at this time, coupled with the impact of fuel subsidy removal, inflation, and other hardships facing Nigerians, will be insensitive on the part of the government.

“It is outright irresponsible for the government to allow an electricity tariff hike,” he said.

Recall that in November 2023, President Bola Ahmed Tinubu stopped the implementation of electricity tariff, insisting on a power sector subsidy.

Speaking on Tinubu’s directive on electricity tariff hike, Minister of Power, Adebayo Adelabu, said Adelabu said, “The power sector is an industry that is very sensitive to any leader.

“You cannot jump overnight and implement the cost-reflective tariff. I can tell you that till today, the government still subsidises power”.

NERC’s quarterly reports indicated that electricity subsidies gulped N204.59 billion in the third quarter of 2023 and N135.23 billion in Q2, which is substantially higher than the N36.02 billion in Q1 2023.