New electricity tariff: Suicide rate may rise with increased hardship, analysts warn FG

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Uba Group

BY FOLASHADE KEHINDE

THE latest increase in electricity tariff by the Federal Government has drawn criticisms from Nigerians, who have described the current administration as insensitive.

Those who reacted to the hike, which took effect on January 1, 2021, said the billing method as it stood last year was “crazy”, considering the fact that the units were exhausted faster even with the increased rate.

According to them, having customers pay more in just two months is the height of insensitivity that can be displayed by a democratically elected government.

Emeka Onwudiwe, a human rights activist, said the latest hike in tariff was the worst gift a government could give citizens at the beginning of a new year, adding that this was a pointer to the fact that more Nigerians would commit suicide, owing to hard times this year.

Describing the move as insensitive, he said this was a time many governments of the world were rolling out stimulus packages for their citizens as a result of the strain on finances worldwide.

He said, “Our own government says they are doing so much to ameliorate the suffering of the masses but the money being published in newspapers as intervention funds are being circulated in the same circles. Show me one ordinary Nigerian, who knows nobody that gets these things.

“Many people cannot even feed. I mean it; well educated people. And all you do as a government is make them suffer the more for services that are not even there. This administration would pass for the most insensitive in the history of Nigeria’s democracy.”

Femi Oyekunle, a retired Ogun State civil servant, on his part, begged the President Muhammadu Buhari administration to show mercy on Nigerians by not compounding the financial problems being faced on a daily basis by ordinary Nigerians with avoidable burdens.

“As it is, everything is tight. If you want to run outside the country, it is not that easy again because of the COVID-19. Moreover, where are we even running to? This administration should remember that they are there to serve Nigerians and make things better, not to inflict pain on the masses. This new tariff hike is the height of insensitivity,” he told THE POINT.

On her part, Chinedu Umezinwa, an economist based in the United States, called on the Nigeria Labour Congress and other unions in the country to save the situation.

“As long as no one is truly ready to confront this government against unpopular, pain inflicting policies, the Federal Government will continue to make life difficult for the masses. NLC and others should come out and fight this battle. Enough is enough. Many are committing suicide out of frustration,” she noted.

THE POINT had reported that two months after the implementation of the controversial electricity tariff hike, the Nigerian Electricity Regulatory Commission again approved over 50 per cent hike in tariff.

The new tariff, which takes effect from January 1, 2021, will be paid by all customers across the 11 electricity Distribution Companies.

This was contained in a revised Multi-Year Tariff Order (MYTO) signed by the Chairman of NERC, Sanusi Garba, and dated December 30, 2020.

The new order, according to the Commission, supercedes the previous Order NERC/2028/2020.

To arrive at the new tariff, the NERC, in the new Order NERC/225/2020, said it considered the 14.9 per cent increase in inflation rate in November 2020; foreign exchange of N379.4/$1 as of December 29, 2020; available generation capacity; US inflation rate of 1.22 per cent; and the Capital Expenditure (CAPEX) of the power firms.

In the revised Service-Based Tariff, all classes of electricity users will pay increased rates unlike the previous hike regime that exempted low power getters.