Mohammed Shosanya

The Federal Government has hinted that electricity tariff increase would be extended to all categories of customers in the country.

The announcement comes two days after the Nigerian Electricity Regulatory Commission (NERC) approved increase of electricity tariff for customers under the Band A classification.

At a briefing in Abuja on Friday, Minister of Power, Adebayo Adelabu,explained that the recent increase in electricity tariff is a pilot in stopping electricity subsidy in the country.

According to him,the government plans to remove all subsidies in the sector to allow the thriving of investment in the power sector.

He said: “This tariff review is in conformity with our policy thrust of maintaining a subsidized pricing regime in the short run or the short term with a transition plan to achieve a full cost reflective tariff for over a period of, let us say three years. I have mentioned it in a couple of media briefings that it is because of government sensitivity to the pains of our people that we will not make us migrate fully into a cost reflective tariff or to remove subsidy 100 percent in the power sector like it was done in oil and gas sector.”

“We are not ready to aggravate the sufferings any longer which is why we said it must be a journey rather than a destination and the journey starts from now on, that we should do a gradual migration from the subsidy regime to a full cost reflective regime and we must start with some customers.

“This is more like a pilot for us at the Ministry of Power and our agencies. It is like a proof of concept that those that have the infrastructure sufficient enough to deliver stable power of enjoying 20 hours of light to be the ones to get tariff add.”

He said that the N225 kilowatt per hour Band A customers are charged as little in relative to the N500 they pay for alternative energy like diesel and others.

Explaining that Nigeria is experiencing a subsidy pricing regime where the government provides a large portion of the generation, transmission and distribution cost, he said the government was formerly subsidising 67 percent of the cost of electricity.

He added:“The government would have paid N2.9tr for 2024. This is more than 10 percent of the national budget. It will be insensitive on our part to compel the government to pay such subsidy when we have other competing issues the government needs to fund under pau its of funds we have.”

Mohammed Shosanya

The recent increment in electricity tariff announced by the Federal Government is pro-poor,Alhaji Mohammed Idris, Minister of Information and National Orientation,has said.

He also said,it’s never the intension of federal government to aggravate the hardship currently faced by Nigerians.

According to him,the federal government is sustaining electricity subsidy to poor Nigerians by as much as 85%, noting that the recent adjusted tariff is targeted at 15% of the population comprising capable Nigerians willing to pay for it.

He noted that prior to the adjustment in tariff, the federal government was subsidizing electricity by as much is
N 2.9 trillion,almost the entire annual budget of the country.

In his opening remarks at the 4th Ministerial press briefing in Abuja on Friday,Mohammed Idris affirmed that the tarrif adjustment was geared to improve performance in the sector and encourage investment in the power sector, presently bugged by decaying infrastructure.

“A few days ago, the Federal Government unveiled a progressive policy in the power sector, which aims to boost sufficiency in power supply for all Nigerians. The most important aspect of the policy is that the Tinubu administration is sustaining electricity subsidy to 85% of Nigerian consumers, which re-justifies its credential as a Pro-People democratic government while effecting electricity tariff increment to only 15% of the electricity consumer population.

“Misconceptions and concerns around the tariff review are understandable. However, let me reassure every Nigerian that this review is a strategic step toward a more sustainable, efficient, and equitable electricity sector. It lays the groundwork for significant improvements in service delivery, infrastructure development, and economic prosperity. Our focus must therefore remain steadfast on ensuring that the electricity sector’s transformation benefits all Nigerians, supports our industries, and propels our nation towards its bright future”

He maintained that regular communication with Nigerians has so far succeeded in gradually restoring public trust in government, as he urged Nigerians to be patient with the government as it implements the renewed hope agenda.

“Since our last meeting with you, some salient achievements have taken place in our economy as we are all witnesses to the fact that through the implementation of some macroeconomic reforms, our foreign exchange market has stabilized and our beloved Naira is getting stronger daily.

“The recent establishment of the Presidential Economic Coordination Council and the Economic Management Team Emergency Task Force underscores Mr. President’s commitment to fostering a unified strategy for economic management that leverages the expertise and insights of key stakeholders from both the public and private sectors. These teams will serve as platforms for robust discussions, analysis, and decision-making to drive sustainable economic growth, job creation, and prosperity for all Nigerians”.

Mohammed Shosanya

The Nigerian Electricity Regulatory Commission,has sanctioned the Abuja Electricity Distribution Plc (“AEDC”) for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC (the “Order”).

In a statement,the agency declared that AEDC has been fined ₦200,000,000 (Two Hundred Million Naira) for failure to comply with the prescribed customer band classifications for the tariff billing.

The decision follows a detailed review and customer feedback, which revealed that AEDC had applied the new tariff to all customer bands, contrary to the Order, which was designed to ensure fair billing practices,the agency said.

It added:AEDC is therefore mandated to: Reimburse all customers in Bands B, C, D and E respectively that were billed above the allowed customer categories/tariff bands provided in the Order.

“Reimburse through the provision of the balance of customer tokens that the affected customers would be entitled to receive at the applicable rates and all token reimbursements shall be issued to the affected customers by 11 April 2024.

“Pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order.

“File evidence of compliance with the directives in a & c with the Commission by 12 April 2024.

“The action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector”.

Mohammed Shosanya

The Chief Executive Officer, De-Haryor Global Services Limited, Engr. Ashade Olatunbosun,has said that increased metering of households, businesses and other customers would enhance investment and growth in Nigeria’s power sector.

In a statement made available to Premium News in Lagos, Engr. Olatunbosun,said increased metering will continue to enhance quality service delivery, and revenue collection while encouraging investors to invest more resources toward growing the sector from one level to another.

His company, which was established in 2009,has been an active player since 2016, providing quality products and services to customers, adding that its smart meters cannot be tampered with or altered in any way.

According to him,the company has been duly certified by relevant government institutions, including the Nigerian Electricity Management Services Agency, NEMSA, and the Nigerian Electricity Regulatory Commission, NERC, to do business in Nigeria.

Commending President Bola Tinubu administration for efforts made to further enhance metering in the sector,he said: “It is a good initiative and it is going to impact the sector positively. If the right meters are put in place, it will make it difficult for end users to bypass them, thus enabling the Electricity Distribution Companies, DISCOs to monitor their payments and recoup their investments.”

Speaking on the quality of his products and services,he said: “I am an engineer and our meters are smart in every sense of the word. Our meters cannot be manipulated. The only way customers can have access to energy is via our dedicated mobile app, making it very efficient and reliable.

“Our company is a servicing Electrical and Construction Company, providing complete Electrical and Building Services to commercial and industrial customers in Nigeria. We are not a new company. Contrary to speculation, we have been in existence since 2009 and started metering operations in 2016.

“The narrative, which gives the impression that we are a new organization, is completely false and misleading. But we are not distracted as we are focused on ensuring that we provide very high quality products and services, targeted at positively impacting consumers, the power sector and Nigeria’s economy.”

He also noted that, “Our client, the Nigerian army has her internal procurement procedures. In awarding its metering contract, due processes were followed. Also, several companies were contacted, before they were reduced to a few.

“There are different categories of certificates and businesses in the metering sector. The license we have currently permits us to import meters. We did not wait for the government to introduce us to the Nigerian Army. We made the move. We import and install very high quality meters to customers.”

Engr. Olatunbosun,who stressed the need for training, capacity building and acquisition of modern technologies, said: “I was trained by the British and I have adopted that method of training in our organization. Our staff are people we hired and trained. Training and capacity building in all departments is key. We have been doing it for many years and will continue to do so in the future. We pay maximum attention to human capital development because it is very important.

“We also believe in local content. We have people benefiting from our operations because we source some of our materials from Nigeria. We shall continue to promote local content in our operations because it will impact positively on persons, organisations, the power sector and nation’s economy.”

He implored the government to provide a level playing field to enable all operators to do business in the metering sector,adding that, the company is currently working towards establishing an assembling plant in the nation, targeted at further maximizing its contributions to the power sector and Nigeria’s economy.