Consumer Group Urges Caution on Proposed Electricity Tariff Increase, Citing Power Supply Issues

A consumer group, the Nigeria Consumer Protection Network (NCPN), has voiced its concerns over the Federal Government’s plans to increase electricity tariffs, stating that the hike will not resolve the ongoing power crisis. The group, led by President Kola Olubiyo, argued that electricity tariffs should not be increased unless there is a noticeable improvement in power supply for all consumers. Olubiyo recalled that Nigeria’s previous achievement of 5,600 megawatts in 2013 was short-lived, as the demand for power has consistently outpaced supply, leaving the country’s power infrastructure stagnant and inefficient.

The group emphasized that raising electricity tariffs alone would not be a sufficient solution to Nigeria’s power challenges. Olubiyo pointed out that the national grid would collapse if attempts were made to exceed 5,800 MW or 6,000 MW of power demand. He noted that despite significant foreign loans secured by the government for grid investments, the sector has seen minimal improvement, with no new generation capacity added to the grid since the peak of 5,600 MW in 2013. The lack of tangible progress in power generation and transmission remains a major concern.

Olubiyo further criticized the government for failing to invest adequately in power infrastructure despite billions of dollars in loans and subsidies. He argued that even if tariffs were increased significantly, it would not lead to improved power supply or service delivery. The inefficiencies in the power sector, he noted, would not be solved by tariff hikes alone, as the generation and transmission infrastructure remains underdeveloped and inefficient.

The NCPN president also urged the government and investors to prioritize enhancing power infrastructure and ensuring proper metering of customers before considering tariff hikes. According to Olubiyo, improving the existing infrastructure is key to ensuring that any increase in tariffs is justified and leads to a real improvement in electricity service and reliability for consumers.

In response to concerns over the tariff hike, President Bola Tinubu’s Special Adviser on Energy, Olu Verheijen, suggested that although the government may reduce electricity subsidies, the subsidy removal would focus on the wealthiest Nigerians, leaving protections in place for the poorer population. Verheijen acknowledged that the current subsidy structure disproportionately benefits the richest 25% of Nigerians, but emphasized that any subsidy adjustments would safeguard the common masses.

SOURCE: PUNCH