The Nigeria Employers Consultative Association (NECA) has expressed concern over the rise in electricity tariffs, stating that it negatively impacts businesses and the general public and should be reconsidered.
It would be recalled that the Nigerian Electricity Regulatory Commission (NERC) has authorised a new electricity tariff for the 11 Electricity Distribution Companies (DisCos) in the country, effective from April.
NECA’s Director General, Adewale Smatt-Oyerinde, explained in an interview that the tariff hike has resulted in higher costs for goods and services,
According to Daily Independent, he said that the hike effectively negates the benefits of any new minimum wage increase for workers, as it provides relief with one hand and takes it away with the other.
Oyerinde, however, urged the federal government to tackle the issues of food inflation and transportation and to explore ways to provide relief for the populace.
Nigerian electricity distribution companies (DisCos) had stated that the hike was overdue, as the previous review occurred in 2015.
NERC stated that customers under the Band A feeders, benefiting from a daily provision of 20 hours of electricity, will now be subjected to a tariff of N225 per kilowatt (kW), effective from April 3, marking a significant increase from the previous rate of N66.
NERC clarified that customers in the remaining Bands (B -E) would not be affected by the review, but according to reports, that has not been the case.
Also joining voice to the matter, Wale Ogundeji, an energy analyst, told TimesNow.com.ng that Nigeria’s recent electricity tariff hike significantly impacts households and businesses.
He said:
He added that the tariff hike could make electricity less accessible to low-income families, thereby hindering inclusive economic development and social equity efforts.
Meanwhile, TimesNow.com.ng also reported that NERC has sent a directive to DisCos regarding the execution of the April 2024 Multi-Year Tariff Order.
In a statement issued on Saturday, NERC emphasised that the commission has instructed all DisCos to offer maximum clarity to all impacted customers.
It highlighted that all DisCos must promptly publish the schedule of approved Band A feeders affected by the rate review on their websites.
Source: TimesNow.com.ng
