Last week, the Nigerian Electricity Regulatory Commission increased the tariff for Band A consumers (those who enjoy at least 20 hours daily supply of power), as part of moves to stop the payment of subsidy on electricity.
The Federal Government said the new electricity tariff hike will only affect a small segment of the consumers (1.5 million).
Two days after the NERC approved the increase, the Federal Government hinted that a similar measure would be extended to other consumers.
Speaking at a briefing in Abuja on Friday, Minister of Power, Adebayo Adelabu, said the recent increase in electricity tariff is a pilot in phasing out of electricity subsidy in the country.
He said the government plans to remove all subsidies in the sector to allow the thriving of investment in the power sector.
Many Nigerians thought it was an April fool’s joke when they were welcomed to the new month with a new hike in electricity tariffs.
Some were placed in different bands of electricity consumption. For the band A consumers, the increment was a staggering 300 percent.
The increase in electricity tariff comes at a time when Nigerian citizens are going through excruciating difficulties occasioned by the withdrawal of subsidy on PMS and floating of the domestic currency.
The government has not successfully dealt with the pains associated with the implementation of those measures, and now this.
The hike in electricity tariff will create more difficulties for the citizens as inflationary pressures are elevated.
Many Nigerians think that increasing electricity tariff at this time is insensitive and sinful on the part of the government because the major reason for the astronomical rise in the price of goods and services is the removal of fuel subsidy and the floating of the naira at the same time.
Because most goods and services in the country depend on the price of fuel and the exchange rate, this has caused the inflation rate to shoot up through the roof.
Recently, Nigerians have started to see some gains in the exchange rate, and they were expecting to see a drop in the price of goods and services.
Increasing the price of electricity will further erode the gains and it will naturally affect businesses as the manufacturers will pass the price of goods and services down to the consumers.
“Instead of increasing tariffs, the government should have focused on improving the efficiency and management of the electricity sector.”
No Nigerian will buy the reasons given by Adelabu for the increase in the electricity tariff.
Why increase electricity tariff when you have poor power infrastructure?
Why place Nigerians on different bands of electricity?
Every Nigerian should have 20-24 hours of electricity supply. This is a basic necessity that should be provided to all citizens, regardless of their economic or social status.
It is unfair and unjust to charge some citizens more for a basic service that should be equally accessible to all. This move is likely to further exacerbate the already-existing inequality in the country, which could lead to social unrest and political instability.
Already, the decision did not go down well with the Nigeria Labour Congress, which told the Federal Government to prepare for the consequences of the tariff hike.
The NLC described the tariff hike as wicked and unpopular, stressing that since the government preferred to listen to the World Bank and International Monetary Fund; it should be ready to face the consequences.
The collapse of the national grid is no longer news; it has become a frequent occurrence.
This is the worst time to increase the tariff. The government should have waited a while.
No matter how good the intentions of turning the fortunes of the country, giving a hat-trick of harsh policies in less than a year that are strangulating the masses will only make the Federal Government unpopular.
The government’s decision to increase electricity tariff at this time is not only insensitive but also detrimental to the well-being of the Nigerian people.
The country is already struggling with the high cost of living, and this additional burden will only exacerbate the situation.
It is worth noting that the electricity sector in Nigeria has been plagued by a myriad of challenges, including poor infrastructure, inefficient management, and a lack of investment.
The government has been promising to address these issues for years, but the results have been disappointing. Instead of tackling the root causes of the problem, the government has resorted to passing the burden on the citizens.
This move is not only short-sighted but also counterproductive. By increasing the cost of electricity, the government is effectively discouraging businesses and individuals from using it, which could lead to a further decline in the already poor electricity supply.
This, in turn, could have a ripple effect on the entire economy, leading to job losses, reduced productivity, and lower economic growth.
The government’s justification for the increase, which includes the need to improve the electricity infrastructure and ensure a reliable supply, is understandable.
However, the timing and the manner in which it has been implemented are highly questionable. The government should have taken a more holistic approach, addressing the underlying issues in the sector and involving the citizens in the decision-making process.
Instead of increasing tariffs, the government should have focused on improving the efficiency and management of the electricity sector, attracting more investment, and exploring alternative sources of power generation.
This would have not only improved the quality of service but also reduced the burden on the citizens.
The government’s decision to increase electricity tariff at this time is a short-sighted move that is likely to have far-reaching consequences on the economy and social fabric of the country.
The Federal Government should review this decision and instead focus on addressing the underlying issues in the electricity sector in a more comprehensive and inclusive manner.
The well-being of the Nigerian people should be the top priority, and any policy decision should be made with their best interests in mind.
