The federal government on Thursday directed the Nigerian Electricity Regulatory Commission (NERC) to suspend the recently adjusted electricity tariff.
The minister of power, Mr. Sale Mamman, disclosed this in a press statement.
It would be recalled that the NERC had, on Tuesday, January 5 increased the electricity tariff from N2 to N4 per kilowatt payable by electricity consumers across the country.
The hike, which varies based on different consumer classes, took effect from January 1, 2021.
The agency had attributed the adjustment to inflation and movement in foreign exchange rates.
Consequently, labour unions threatened to shut down the economy should the NERC fail to revert to the old tariff.
It stated that the government was insensitive to the plight of Nigerians considering the fact that there was an increment last two months.
Countering the NERC, Mamman said there was a committee working on the new electricity tariff regime adding that the committee should be allowed to complete its work before any development or adjustment.
He therefore directed the regulatory agency to suspend the recent increment until the committee concludes its work by end of January.
“The public is aware that the federal government and the labour centres have been engaged in positive discussions about the electricity sector through a joint ad-hoc committee led by the minister of state for labour and productivity and co-chaired by the minister of state for power. Great progress has been made in these deliberations which are set to be concluded at the end of January, 2021.
“To promote a constructive conclusion of the dialogue with the labour centres (through the joint ad-hoc committee), I have directed NERC to forestall the implementation of the duly performed minor review (which adjusted tariffs between N2 per kWh and N4 per kWh) until the conclusion of the joint ad hoc committee’s work at the end of January 2021.
“This will allow for the outcome of all resolutions from the committee to be implemented together. The administration is committed to creating a sustainable, growing, and rules-based electricity market for the benefit of all Nigerians,” he said.
Earlier, Mamman had disclosed that there is still a subsidy of 55 per cent on the electricity consumed by customers in bands D and E (who are served less than an average of 12 hours of supply per day).
Mamman who was reacting to reports of a 50 per cent increase in electricity tariff in Nigeria described the reports as inaccurate and false.
He revealed that apart from the subsidy on the electricity consumed by customers on bands D and E, the government still carries out a partial subsidy on the electricity consumed by those on bands A, B and C.
“On the 5th of January, 2021, the Nigerian Electricity Regulatory Commission issued a statement regarding erroneous and false reports by print and electronic media that approval had been granted for a 50 per cent increase in tariff. I would like to affirm that these reports are inaccurate and false. It is unfortunate that these reports have led to confusion within the public.
“On the contrary, the Nigerian government continues to fully subsidise 55 per cent of on-grid consumers in bands D and E and maintain the life line tariff for the poor and underprivileged. Those citizens have experienced no changes to tariff rates from what they have paid historically (aside from the recent minor inflation and forex adjustment). Partial subsidies were also applied for bands A, B and C in October 2020. These measures are all aimed at cushioning the effects of the pandemic while providing more targeted interventions for citizens,” he said.
