The Nigerian Electricity Regulatory Commission’s (NERC) recent announcement of a modest reduction in the electricity tariff for Band A customers from ₦225/kWh to ₦206.80/kWh has been widely rejected across the country.
Naijaonpoint reports that the reduction, which the NERC attributes to the naira’s appreciation against the dollar, has not quelled the dissatisfaction among various stakeholders, including the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
The reduction comes after a significant hike last month, which saw tariffs for Band A customers rise by approximately 240 per cent, a move that had already sparked considerable controversy and opposition.
The Federal Government had defended this increase as a necessary step following the withdrawal of electricity subsidies, which it claimed would save around ₦1.5 trillion.
Despite the NERC’s new directive for a reduced tariff, major stakeholders are calling for a complete reversal to the subsidy-era rates.
The TUC, NLC, and other civil society organizations argue that the slight reduction does not go far enough to alleviate the economic pressures on Nigerian households and businesses, particularly amid other economic challenges.
The National Deputy President of the TUC, Tommy Etim, expressed his dissatisfaction, stating, “It is unacceptable. All we want is a total reversal and stakeholders’ engagement.”
Similarly, the National Treasurer of the NLC, Hakeem Ambali, said, “This is still a far cry from labour expectations; until there is a significant increase in power supply, any increment is unjustifiable.”
The pushback comes amid broader economic strain characterized by high inflation and escalating costs of living. Stakeholders emphasize that even the revised tariffs are unsustainable for many Nigerians.
The House of Representatives and other political figures have echoed these concerns, calling on the NERC to suspend the new tariffs entirely.
In response to the mounting pressure, various electricity distribution companies across the country, including those in Ikeja, Ibadan, and Abuja, have begun implementing the new tariff structure.
However, these adjustments have done little to quell the frustration among consumers and industry leaders.
The NERC maintains that the tariff adjustments are in line with changes in macroeconomic indices and necessary for the sustainability of the electricity supply industry.
The NERC Public Affairs General Manager, Dr Usman Arabi, explained, “The Band A tariff has been reduced from
“₦225 to ₦206.80/kWh, mainly due to the decrease in the exchange rate.”
Despite these explanations, the sentiment on the ground is one of continued dissatisfaction, with calls for more substantial changes to both pricing and the management of the country’s power sector.