Lawmakers Express Opposition to Electricity Tariffs Increase by NERC

The Minority Caucus of the House of Representatives has taken a strong stance against the recent surge in electricity tariffs by the Nigerian Electricity Regulatory Commission (NERC), describing it as callous, insensitive and unjust.

Caucus leader, Kingsley Chinda, in Abuja on Friday, emphasized that the steep hike, exceeding two hundred per cent above inflation rates, disregards the challenges faced by ordinary citizens amidst subsidy removal, soaring inflation, unemployment, and inadequate access to essential services.

He criticized NERC’s claim that the hike affected only twelve percent of consumers, stating that data from electricity distribution companies (DISCOS) revealed its impact on all consumers, labeling such deceit as damaging to government credibility.

Chinda criticized the timing of the tariff hike amid economic difficulties, highlighting the disconnect between policymakers and citizens’ realities, suggesting the need for better communication and consultation with stakeholders before implementing such policies.

The lawmaker highlighted a stark contrast between Nigeria’s approach to energy subsidies and that of countries like the UK and the US. In these countries, significant subsidies and support schemes are provided for households and businesses to help them manage their energy costs. This comparison underscores the lawmaker’s argument that Nigeria should consider implementing similar measures to support its citizens, especially in light of the economic challenges they face.

“Elsewhere in the global north, governments are doing all they can to protect citizens against the adverse effects of the pandemic on economies. In the United Kingdom, for example, where anti-subsidy proselytizers preach against subsidies, His Majesty’s Government has “paid almost 40 billion pounds ($50 billion) in energy subsidies since it began to help households…”

“According to the global news agency Reuters, between the launch of the schemes in October 2022 and March 2023, nearly 21 billion pounds was spent on the Energy Price Guarantee (EPG) programme that supports households with their bills, the government said.

“A further 12 billion pounds was paid under the Energy Bills Support Scheme, which offered homes payments of 400 pounds towards their bills over the winter months. Businesses and other organizations received about 5.5 billion pounds under the Energy Bill Relief Scheme, and almost 1 billion pounds was spent on other programmes”.

“Also, in the United States, the government is subsidizing (by way of tax credit) thirty percent off the cost of chargers for electric vehicles.

“Not here in Nigeria, where the government spends money on frivolities with no real economic impacts on households or on the lives of ordinary citizens. Here, the directive principle of state policy is ‘go and die.’

Chinda urged President Bola Ahmed Tinubu to intervene and urged NERC to reverse the decision, emphasizing the need for transparent dialogue and inclusive decision-making in addressing energy sector challenges.

He called for enhanced accountability and transparency in resource management within the electricity sector, advocating for fair pricing mechanisms aligned with citizens’ economic circumstances.

In solidarity with the Nigerian people, the caucus demanded immediate action to alleviate the burden imposed by the tariff hike.