Power distribution companies in Nigeria have refuted reports of an impending electricity tariff increase starting from January 1, 2024. Both the Nigerian Electricity Regulatory Commission (NERC) and the Federal Ministry of Power have not issued any directive for such changes.
Despite unconfirmed reports circulating in the media, representatives from several power distribution companies and NERC have dismissed the claims. Adekole Elijah, the Head of Corporate Communications at Jos Electricity Distribution Company, stated that they have not received any official directive or order regarding tariff hikes. Emeka Ezeh, the Head of Communications at Enugu Electricity Distribution Company, emphasized that without NERC’s approval, any contemplation of tariff adjustments would not materialize.
An anonymous NERC official confirmed that the commission had not issued any order on tariff hike but mentioned that minor tariff reviews typically occur every six months. This revelation dispels the speculations surrounding the alleged tariff increase.
These denials come after Minister of Power, Adebayo Adelabu, revealed in November 2023 that President Bola Tinubu had intervened to halt the implementation of a hike in electricity tariff. Adelabu emphasized the government’s commitment to subsidizing power consumption nationwide and acknowledged the challenges involved in achieving a cost-reflective tariff. He highlighted the impact of the subsidy on system liquidity, investments, and overall constraints within the power sector.
As reported by The Media Talk Africa, the Federal Government disclosed that it had expended N375.8 billion on electricity subsidies between January and September 2023, shedding light on the ongoing government support in the energy sector.
These developments signify the continuous government efforts in managing electricity tariffs and subsidies in Nigeria, reflecting the complexities and sensitivities within the power industry.
