Reverse The Hike In Electricity Tariff, Ibrahim Mustapha Pambegua

The Tinubu administration since it came on board on 29 May 2023,has never hidden its desire to remove anything subsidy. His subsidy is gone speech and floating of naira are two classical example. However, since the removal of subsidy which the administration described as conduit pipe for siphoning government’s funds, the lives of average nigerians have growth from bad to worst. Inflation rose to 30%, the highest ever in the history of Nigeria which reduced the purchasing power and condemned millions of Nigerians into poverty. While subsidy removal has freed more funds to three tiers of government, established evidence has proven,there is no commensurate infrastructural development across the country to justify it.

The removal of subsidy has unarguably resulted in increase in pump price and cost of doing business in the country. Nigerians who have been grappling with high cost of living found solace or succour in electricity. Though, power sector has been privatised during the Obasanjo administration, Nigerians have been paying for darkness as Disco have failed to provide reliable and efficient power supply.

The recent decision of the federal government to further remove electricity subsidy was greeted with mixed reactions from Nigerians. The removal of electricity subsidy has come at a wrong time when Nigerians are yet to recover from the shock of last year’s hike in price of petroleum. With only 44% metered customers, Nigerians have thought that,government through NERC, will provide adequate meters and improve power generation and distribution in the country. However, this has never been the case.

There is nothing wrong to ensure cost reflective among the numerous energy consumers in the country. The categorisation of customers into different “band” by NERC can be seen as a good development. The question begging for answer is: will the new plan address the erratic power supply? For instance, under NERC new tariff plan, customers on band ‘A’ will enjoy 20hours power supply at 225kwh as against N68/kwh.

The Band ‘A’ customers which include: elites, Banks ,factories can be able to shoulder the new tariff hike, but further breakdown of the new tariffs reveals an alarming burden that the average Nigerian will face in affording electricity on a daily basis. Under the new tariff plan, 24 hours of electricity per day will cost a staggering N5,400, amounting to an unbearable monthly total of N162,000 and an astounding yearly total of N1,971,000. These exorbitant amounts are simply unaffordable for the majority of Nigerians, who are already grappling with economic hardship and trying to make ends.

The new tarrif regime will also see factories cost of productions go up with corresponding increase in prices of good and services. Those companies have not options than to pass the burden to the end users (consumers). According to the NERC, the new tarrif will affect 15 percent customers who enjoy 40% power supply. But at the end, millions of Nigerians will be worst hit by the new tarrif regime.

It is a well known facts,even in developed countries, electricity subsidy exist. Government provide or grant subsidies to companies and other households in other to keep the price of good and services within the reach of the common man. The rush with which Tinubu administration removes subsidy amidst growing poverty in the land call for great caution. Already ,the Nigeria Union of Electricity has condemned the hike in the tarrif and called for immediate reversal. The union chides minister of power and NERC for not consulting them before they came with the plan. The federal government should shelve the plan for the removal of electricity subsidy. Instead, government needs to improve power supply and exploit other alternative sources of energy such as solar and winds. Government should hasten the completion of abandon mambila power project to improve power generation and distribution in the country.

Ibrahim Mustapha Pambegua, Kaduna State. 08169056963.