Business

Nigeria: Reps Reject Move to Increase Electricity Tariff


The lawmakers said it is insensitive to come up with an increase in electricity tariff at this time when many Nigerians are yet to come to terms with the fuel price increase.

The House of Representatives has rejected a move by the Nigerian Electricity Regulatory Commission (NERC) to approve any increase in electricity tariff.

The resolution followed a motion by the Deputy Minority Whip, Aliyu Madaki, at the plenary in Abuja on Thursday.

In his motion, he expressed concern over the suspense created by the planned increase in electricity tariff by Distribution Companies (DISCOs).

The lawmaker recalled that DISCOs recently alerted customers of a planned electricity tariff hike, hinging it on the Multi-Year Tariff Oder (MYTO).

He cited a circular issued to that effect by the distribution firms, adding that effective 1 July, there would be an upward review of the electricity tariff influenced by fluctuating rates.

He said under the MYTO, 2022 guidelines, the previous exchange rate of N 441/$1 might be revised to approximately N750/$1 which would have an impact on the tariff associated with electricity.

He said under the planned hike, consumers within bands ‘B’ and ‘C’ with supply hours ranging from 12-16 hours per day would pay N100 per KWh, while band ‘A’ with 20 hours and above.

He said consumers within band ‘B’ with 16-20 hours, would experience comparatively higher tariff, for customers with prepaid meters, whereas, for those on estimated billing, a significant increment was expected.

He said the recent statement by the Abuja Electricity Distribution Company (AEDC) directing its consumers to disregard the earlier notice of the increase was confusing.