Sen. Ali Ndume, the Chief Whip of the Senate, has criticized the decision of the Federal Government to increase electricity tariffs for Nigerian consumers, stating that the timing is unfavorable given the current economic challenges faced by citizens.
Ndume expressed concern over the lack of consultation with the National Assembly, the representatives of the people, before the decision was made and urged the Federal Government to prioritize providing stable electricity, inflation reduction, and other basic amenities before considering any tariff increase.
The Nigerian Electricity Regulatory Commission (NERC) recently approved a tariff increment for Band A consumers, allowing electricity Distribution Companies (DisCos) to raise electricity prices from N68 to N225 per kilowatt-hour with effect from April 1, 2024.
However, the decision has not gone down well with the Nigeria Labour Congress, which 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.
Ndume’s statement comes amidst calls for the Federal Government to reverse the decision, with the Organised Private Sector, NLC, and the Trade Union Congress also kicking against the hike in tariff payable by about 1.9 million consumers.
The hike in tariff has been described as a move that would send manufacturers out of business, worsen inflation, and stifle small and medium enterprises, with no place in Nigeria currently enjoying up to 20 hours of power supply daily.
The Federal Government has defended the decision, stating that the subsidized power pricing regime would be for the short term, with a transition plan to achieve a full cost-reflective tariff within a period of three years.
However, Ndume and other critics have argued that the decision was taken without due consultation with the National Assembly and that the timing is wrong, given the current economic struggles faced by Nigerians.
In conclusion, Ndume’s criticism of the electricity tariff hike highlights the need for the Federal Government to address the concerns of Nigerians and prioritize the provision of stable electricity, inflation reduction, and other basic amenities before considering any tariff increase. The decision to increase electricity tariffs has been met with widespread criticism, and the Federal Government would do well to listen to the concerns of Nigerians and take appropriate action to address their struggles with inflation and insecurity.
