- Says FG Making Nigerians Pay For Inefficiency, Profligacy Of Those Managing Electricity Sector
- FG Raising Funds For Cash-Strapped DisCos Majority Of Which Have Been Taken Over By Banks, AMCON
- Unveils FG’s Plans To Increase Tariff Of Other Bands Soon
- Obi Calls For Electricity Subsidy For Poor Nigerians
The controversies generated by the decision of the Federal Government of Nigeria to increase the electricity tariff of Band A customers (those who enjoy up to 20 hours) a day power supply from N66 kilowatt per hour to N225 kilowatt per house has refused to subside.
Trouble had started on April 3, 2024 when the Federal Government through the Nigerian Electricity Regulatory Commission (NERC) raised electricity tariff for customers enjoying 20 hours power supply daily.
Customers in this category are said to be under the Band A classification.
The increase drew outrage and condemnation from many Nigerians, considering the immediacy of the tariff hike and the current hardship in the land.
Justifying the increase, the Minister of Power Adebayo Adelabu subsequently said the new electricity tariff hike would only affect only 1.5 million of the about 12 million consumers in the sector.
He also disclosed that it would be very insensitive to force or compel government to continue to subsidise at the rate of N3trn for the power sector.
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Reacting to this development, Human rights lawyer, Femi Falana revealed the Federal Government had already removed electricity subsidy in 2022 and so the government, by the new tariff hike, is making Nigerians pay for the inefficiency and profligacy of those managing the electricity sector.
He also disclosed that government is subtly raising funds for Cash-Strapped distribution companies in the country.
He further blew the lid on the plans of the Federal Government to extend electricity tariff hike beyond Band A consumers to other Nigerians categorised under other bands.
He made these allegation while appearing as a guest on Channels Television’s Sunday Politics, he argued that the recent tariff increase for Band A consumers by the government cannot be justified under the Electricity Act, 2023 while threatening to approach the courts to seek redress for Nigerians.
Falana said, “Under that law, there are certain steps to take and we are going to embark on those steps tomorrow (Monday) which is to raise serious objections with respect to the impunity that has characterised the recent increase.
“At the appropriate time if there is no response, we will have to go to court because the government had warned, the minister had warned that the increase this time around will only fetch the government or the discos N1.6trn whereas the destination is N3trn.
“So, the poor people that he (the minister) is talking about, the other bands, very soon, the government is going to extend the increases to them so that the N1.4trn the minister is talking about will be recovered.
“They (the government) are increasing tariff to assist the cash-strapped discos majority of which have now been taken over by the banks and AMCON, and the banks and AMCON have no competence to run electricity companies.”
Falana knocked the government for being insensitive to the plight of Nigerians who are still grappling with the economical impact of petrol subsidy removal and the collapse of the foreign exchange windows, the two policies of the President Bola Tinubu administration which have resulted in unprecendented high cost of living.
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Meanwhile, the 2023 presidential candidate of the Labour Party (LP), Peter Obi, has stressed the need for the Federal Government to provide subsidies on electricity tariffs for less-privileged Nigerians.
Obi spoke on Sunday when he visited Bauchi State in North-East Nigeria where he inaugurated a borehole project in the Sabon Layi Community on the outskirt of Bauchi metropolis.
Obi argued that if there is an absolute necessity for an increase in tariffs, it should solely target individuals with the financial wherewithal, rather than burdening those who are already struggling.
Highlighting the importance of supporting small businesses and promoting economic growth, he further stressed the need for a concentrated effort to generate more power.
