FG suspends hike in electricity tariffs till end of January

The Nigerian government has directed the Nigerian Electricity Regulatory Commission (NERC) to suspend the implementation of the recently reviewed tariff.

“To promote a constructive conclusion of the dialogue with the Labour Centers (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,” power minister Sale Mamman said in a statement.

“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.”

NERC on Tuesday increased the electricity tariff payable by power consumers across the country. The hike in tariff which varies, based on different consumer classes, took effect from January 1, 2021.

The regulatory agency blamed the N2 to N4 adjustment in tariff on inflation and movement in foreign exchange rates.

Labour unions had accused the government of acting contrary to their agreement and suggested an industrial strike action should the hiked tariff continue.

NERC on Wednesday denied that it increased the electricity tariff and asked any customer that has been impacted by any rate increases beyond the above provision of the Tariff Order should report to its office.

Minister of power Mamman noted that the Federal Government and the Labour Centers 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.

He stated that “Great progress has been made in these deliberations which are set to be concluded at the end of January, 2021.”

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