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Electricity tariff hike: Labour, Discos on collision course

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Band A Users to Get Relief as NERC Orders DisCos Compensation Plan

Electricity tariff hike: Labour, Discos on collision course

The Nigeria Labour Congress, power distribution companies, and the Nigerian Electricity Regulatory Commission are heading for a collision course over the planned hike in the tariffs payable by electricity consumers nationwide.

Although power distribution companies and the NERC have not officially confirmed the planned increase, the Multi-Year Tariff Order of the regulator, which explains tariff reviews in the sector indicates that electricity tariff is meant to be reviewed every six months.

This implies that the tariff being paid by power users currently, will be reviewed and a new tariff will take effect from July 1, 2023.

In reviewing the tariff, based on MYTO, the NERC considers various economic factors. They include inflation rate, foreign exchange rate, available power generation capacity, gas price, and, capital expenditure adjustment.

Operators project that the high rate of inflation, coupled with the recent floating of the naira against the dollar, among other factors, will lead to an estimated rise of about 40 per cent in electricity tariff by July 1, 2023, should the MYTO be implemented.

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Reacting to this, the NLC, on Thursday said the plan to increase electricity tariff by 40 per cent by July 1 “was both insensitive and callous and reflects an organised indifference to the wellbeing of consumers, especially, the poor ones.”

NLC kicks

The NLC President, Joe Ajaero, stated that the massive increase was explained away as a response to the over 100 per cent increase in the pump price of Premium Motor Spirit, popularly called petrol.

“Details reveal a movement in inflation from 16.9 per cent to 22.41 per cent (threatening to needle at 30 per cent), and a shift in the exchange rate from N441 to N750 (per dollar).

“We believe that not even these figures are a justification for this reckless proposed tariff increase. The issue of capacity to pay and quality of service delivery is not only germane but superior to any rationalisation by market logic,” Ajaero stated in a statement from the labour union.

He also pointed out that the service providers in the power sector were performing far below expectations, and accused power distributors of hiking tariffs surreptitiously.

He added, “The service providers in spite of sundry support have not been able to meet the threshold of 5,000 megawatts. Coupled with this, there have been surreptitious increases without notice in violation of statutes.

“The inherent risk in the new regime of tariff is that there is no control, implying that by August, consumers will pay new rates. The other risk is that by the time other products or service-rendering entities come up with their new prices or rates, the ordinary person would have been compacted into dust.

“We would want to advise the apostles of the market who have called the NLC all sorts of names to check their conscience. The rate at which they are going is highly combative and combustible,” Ajaero stated.

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He noted that with contemplation of payment of school fees in tertiary institutions and increases in privately-owned ones, in addition to other costs and tariffs on the way, “life in Nigeria could truly be Hobbesian.”

He said, “The market economies which the market fundamentalists seek to emulate, have in place socio-economic safeguards which we do not have. In light of this, our advice is that this proposed tariff hike should be shelved for our collective safety.”

NERC’s tariff adjustments

The NERC is responsible for regulating electricity tariffs in Nigeria, as it periodically reviews and adjusts this based on various factors such as inflation, exchange rates, gas prices, and the cost of operating the power sector.

It introduced the Multi-Year Tariff Order, which is aimed at ensuring cost-reflective tariffs in the Nigerian electricity market. Under the MYTO, electricity tariffs are scheduled to increase gradually over time to cover the actual cost of generating and distributing electricity.

The commission, for instance in its MYTO 2022, explained that in line with the subsisting MYTO methodology, some indices with potential impact on electricity rates were considered, adding that these indices would be reviewed every six months.

“These indices shall be reviewed every six months to update the tariffs with changes in the indices as applicable in line with the MYTO methodology,” the regulator stated in MYTO documents issued to Discos.

The indices identified in the MYTO 2022 document include Nigeria’s inflation rate, foreign exchange rate, the United States’ rate of inflation, available generation capacity, gas price, CAPEX (capital expenditure) adjustment, as well as other changes.

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However, the MYTO methodology met with mixed reactions from Nigerians. While some argued that it was necessary to improve the financial viability of the power sector and attract investments, others expressed concerns about the impact of tariff hikes on consumers, particularly in terms of affordability.

It must be noted, however, that electricity distribution companies play a role in the implementation of electricity tariffs. They are responsible for billing customers and collecting payments for electricity consumed. The Discos also bear the brunt of customers’ reactions when tariff adjustments are made.

Discos await NERC

The Executive Director, Research and Advocacy of the Association of Nigerian Electricity Distributors, Sunday Oduntan, told our correspondent that Discos would only act based on instruction from NERC.

Oduntan, who initially insisted on not commenting on the matter, refused to confirm whether Discos had been given the go-ahead to hike the power tariff beginning from July 1, 2023.

“The people to be called on tariff are those in NERC, not us. I cannot explain to Nigerians because I am not the regulator. It is the regulator that determines tariffs by looking at the indices of the economy, not us.

“We also wait on them. Anything to do with tariffs is determined by the regulator and not the operators,” he stated.

When asked whether the NERC had given the Discos the approval to raise the tariffs, Oduntan replied, “When they tell us to do this, then we follow that instruction.”

NUEE opposes hike

But the acting General Secretary of the National Union of Electricity Employees, Dominic Igwebuike, said any move by Discos or the NERC to hike tariffs would be resisted by electricity workers.

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He stated, “We are just yelling over the more than 100 per cent increase in petrol price, now they are talking about a 40 per cent increase in electricity tariffs. Can you imagine that? And this is about the sixth time they are increasing it since the sector was privatised.

“The NUEE condemns it in totality. It is unacceptable and it shows that the government does not care about the feelings of the poor masses. They are not talking about increasing generation capacity but raising tariffs. It is very sad,” he said.

Speaking on what the union would do if the Discos should implement the proposed hike, Igwebuike said, “We want to see what will happen. If it comes to that, we are going to know what to do. We are going to consult ourselves to see the next line of action if that is done.”

The NERC, however, did not comment on the issue, as its spokesperson, Usman Arabi, said he was out of the country, while other officials at the commission refused to speak on the matter when contacted.

But the Chairman of the Lagos State chapter of the Nigerian Association of Small and Medium Enterprises, Solomon Aderoju, in an interview with The PUNCH, said any increase in electricity tariff would spike production costs and consequently exacerbate the plight of the MSMEs.

He said, “It is going to cause problems in the MSME environment because it is going to increase the cost of production. We are facing very tough times now because of what is happening with petrol and diesel.

“Even the exchange rate is gargantuan now. This electricity tariff hike is going to lead to an increase in the cost of production and already, our cost of production is too much to bear. Unfortunately, the cost of borrowing is also high. The MPR (monetary policy rate ) is now 18.5 per cent. No MSME can thrive under these circumstances. The rate of inflation is 22.41 as of today. MSMEs are facing very turbulent times now.

On his part, the Deputy-President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, rejected the proposed hike, noting that it would negatively impact the productive sector of the economy.

Idahosa said, “ How can they do that? Industries are already coping with so many dimensions of inflation in costs. This will be another heavy layer on them. It is going to be a serious burden to the issues that businesses are already facing.”

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Similarly, the national Vice President of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George, condemned the proposed hike. He, however, stated that if the hike is accompanied by increased supply that would drive down the reliance on alternative energy sources for production needs, the productive sector of the economy would be better for it.

Meanwhile,, persons living with disabilities have called on the Lagos State Governor, Babajide Sanwo-Olu, to help them in order to mitigate the effect of the proposed hike.

They also called on the All Progressives Congress-led Federal Government to come to their immediate rescue.

The PWDs made the call through a foundation for persons living with disabilities, Kehinde Oshilaja Foundation, on Thursday.

In a statement in Lagos, the coordinator and founder of the foundation, Kehinde Oshilaja, appealed to Sanwo-Olu and the Federal Government “to assist the people living with disabilities and, indeed, over 22 million residents of the state” and provide “other avenues that would mitigate the effect on people if eventually implemented.”

Oshilaja was quoted as saying, “Let our kind-hearted governor of the aquatic splendour avail the masses, particularly, people living with disabilities with some measures that would cushion the effect on us.

“Also, let me use this opportunity to inform our loving governor that the said issue, if actually implemented, would no doubt affect the majority of the people living with disabilities and, indeed, the poor masses of Nigeria.”

He noted that “only one per cent of the people living with disabilities are working, while 99 per cent will be in a dilemma because there won’t be anyone to help.’’

Electricity tariff hike: Labour, Discos on collision course

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Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns

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August 1, 2026

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Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns

The Chairman of the Auto and Allied Sector Group of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Femi Eguahide, has warned that policy inconsistencies, regulatory bottlenecks and weak coordination between the public and private sectors could derail Nigeria’s clean mobility ambitions, urging the Federal Government to deepen collaboration with industry stakeholders to accelerate the transition to Compressed Natural Gas (CNG) and Electric Vehicles (EVs).

Speaking at the 3rd Nigeria Auto Industry Summit in Lagos on Thursday, Eguahide said the success of the Federal Government’s clean mobility agenda would depend on sustained stakeholder collaboration, policy consistency and the removal of operational challenges slowing investment and implementation.

The summit, organised by the Nigeria Auto Journalists Association (NAJA) under the theme, “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” brought together policymakers, regulators, automobile manufacturers, financiers, transport operators, researchers, safety agencies and development partners to chart a roadmap for accelerating Nigeria’s transition to cleaner transportation.

Eguahide acknowledged the Federal Government’s commitment to alternative energy solutions through the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), but stressed that translating policy into tangible results would require stronger coordination between government institutions and private investors.

According to him, the automotive industry remains a critical driver of industrialisation, job creation and economic growth, making it imperative for government agencies to work closely with manufacturers, assemblers, financiers and technology providers to create a more predictable and investment-friendly operating environment.

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He said effective policy implementation must be backed by continuous stakeholder engagement capable of resolving challenges surrounding vehicle conversion, local manufacturing, infrastructure development, financing and technology deployment.

Eguahide maintained that Nigeria possesses enormous potential to build a globally competitive clean mobility ecosystem, but cautioned that fragmented policies and institutional inefficiencies could slow the country’s progress if left unresolved.

He therefore urged government agencies to deepen engagement with the organised private sector to develop practical solutions that would accelerate the rollout of CNG refuelling infrastructure, EV charging networks and local automotive production.

Earlier, the Federal Government reaffirmed its commitment to expanding Nigeria’s clean mobility ecosystem through increased investment in infrastructure, local manufacturing and strategic partnerships.

Speaking on behalf of the Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Barrister Ismaeel Ahmed, the Initiative’s Chief Compliance Officer, Engr. Zayyanu Tamberi Yabo, said the programme had evolved into a key pillar of President Bola Tinubu’s transport and energy reform agenda.

According to Ahmed, the Presidential Initiative was established not merely to promote alternative fuels but to build an integrated ecosystem covering infrastructure development, investment, vehicle conversion, local manufacturing, technical capacity building and consumer confidence.

“Our approach from the beginning has been to build the foundations of a sustainable industry rather than pursue isolated interventions,” he said.

He disclosed that certified CNG conversion centres had expanded significantly across the country over the past two years, while new refuelling stations were being developed through public and private sector investments.

Ahmed added that vehicle conversions continue to rise as commercial transport operators and private motorists increasingly embrace CNG because of its lower operating costs.

He also highlighted partnerships with financial institutions, energy companies and automobile manufacturers aimed at improving access to financing and accelerating the adoption of clean mobility technologies.

Despite the progress, he identified infrastructure expansion, consumer financing, local manufacturing capacity, technical training, research, innovation and standardisation as priority areas requiring sustained attention.

In his welcome address, NAJA Chairman Theodore Opara described the summit as a strategic platform for shaping the future of Nigeria’s automotive industry.

He said reforms introduced by the Tinubu administration had created fresh momentum for CNG, electric vehicles and local automotive manufacturing, adding that stronger collaboration among government, industry players and the media would be critical to sustaining the gains.

Also speaking, the Director-General of the Standards Organisation of Nigeria (SON), Dr. Ifeanyi Chukwunonso Okeke, represented by Engr. Olalekan Omoniyi, said strict compliance with internationally recognised standards would determine the success of Nigeria’s transition to EVs and CNG-powered transportation.

He disclosed that SON had developed more than 80 Nigerian Industrial Standards for CNG vehicles and equipment, as well as 87 additional standards and the National Nigeria Guideline (NNG 1214:2024) for CNG vehicle conversions.

The SON boss warned against the proliferation of uncertified conversion centres and substandard equipment, urging mandatory certification for imported and locally assembled EVs, CNG vehicles, conversion kits and charging infrastructure.

 

Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns

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FRSC Pledges Robust Safety Measures as Nigeria Accelerates EV, CNG Mobility Drive

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August 1, 2026

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FRSC Pledges Robust Safety Measures as Nigeria Accelerates EV, CNG Mobility Drive

The Federal Road Safety Corps (FRSC) has declared that road safety will remain at the heart of Nigeria’s transition to Electric Vehicles (EVs) and Compressed Natural Gas (CNG)-powered transportation, pledging to strengthen regulations, enforcement and stakeholder collaboration to ensure the shift to cleaner mobility does not compromise public safety.

The Corps Marshal of ghe FRSC, Shehu Mohammed, made the declaration while delivering a keynote address at the 3rd Nigeria Auto Industry Summit organised by the Nigeria Auto Journalists Association (NAJA) in Lagos.

The summit, themed “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” brought together government officials, regulators, manufacturers, energy companies and other industry stakeholders to chart the future of sustainable transportation in Nigeria.

Mohammed said the growing adoption of EVs and CNG-powered vehicles presents significant opportunities for cleaner transportation, lower operating costs and improved energy security, but warned that these benefits can only be fully realised through robust safety regulations, effective enforcement and continuous collaboration among stakeholders.

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He noted that as alternative-fuel vehicles become more prevalent on Nigerian roads, regulatory institutions must evolve to address emerging technologies through specialised training, updated operational guidelines and stronger enforcement frameworks.

According to him, the FRSC has already begun positioning itself for the transition by strengthening safety regulations, engaging key stakeholders and developing operational frameworks specifically designed for EVs and CNG-powered vehicles.

The Corps Marshal stressed that Nigeria’s clean mobility agenda should not only focus on reducing carbon emissions but also on improving road safety, raising vehicle standards and building public confidence in emerging transport technologies.

He added that achieving a safe and sustainable transition would require the active participation of road users, transport operators, vehicle manufacturers, conversion centres, regulators and other critical stakeholders.

Mohammed reaffirmed the FRSC‘s commitment to working closely with government agencies, industry players and development partners to ensure that Nigeria’s journey towards cleaner transportation delivers lasting safety, environmental and economic benefits for the country.

 

FRSC Pledges Robust Safety Measures as Nigeria Accelerates EV, CNG Mobility Drive

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Pi-CNG boss: Clean mobility will cut transport cost, create jobs, power Nigeria’s economic growth

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July 31, 2026

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L-R: Representative of the Controller-General of Federal Fire Service, Badmus Abdulsamad; representative of the Director-General of the Standards Organisation of Nigeria, Engr. Olalekan Omoniyi; Director, Public Relations, National Automotive Design and Development Council (NADDC), Mrs. Suzan Taiwo; Corps Marshal of the Federal Road Safety Corps (FRSC), Mr. Shehu Mohammed; National Chairman of the Nigeria Auto Journalists Association (NAJA), Mr. Theodore Opara; Head of Regulatory Compliance, Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG), Engr. Zayannu Yabo; Deputy Managing Director, CFAO Mobility, Mr. Kunle Jaiyesimi; Chairman, Auto Sectoral Group of the Lagos Chamber of Commerce and Industry, Dr. Femi Eguaikhide and MD, TSS, Mr. Frank Nneji; at the 3rd Nigeria Auto Industry Summit held at Radisson Hotel, Ikeja, Lagos...on Thursday July 30, 2026.

Pi-CNG boss: Clean mobility will cut transport cost, create jobs, power Nigeria’s economic growth

 

The Federal Government has declared that Nigeria’s transition to compressed natural gas (CNG) and electric vehicles (EVs) is no longer an environmental ambition but a critical economic strategy to slash transportation costs, strengthen energy security, create jobs and unlock new investments across the automotive value chain.

Making the declaration at the 3rd Nigeria Auto Industry Summit (NAISU) organised by the Nigeria Auto Journalists Association (NAJA) in Lagos, the Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Barrister Ismaeel Ahmed, said clean mobility had become a central pillar of President Bola Ahmed Tinubu’s transport and energy reforms.

Delivering a keynote address titled, “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” Ahmed said the Presidential Initiative was established to coordinate Nigeria’s transition to cleaner transportation by building a sustainable ecosystem for CNG and electric mobility.

He explained that the Initiative’s mandate extended beyond promoting alternative fuels to attracting investments, expanding refuelling and charging infrastructure, supporting vehicle conversion, strengthening local manufacturing, developing technical skills and boosting consumer confidence.

According to him, the programme was conceived following the removal of fuel subsidy to provide Nigerians with a practical and affordable transport alternative by leveraging the country’s abundant natural gas resources.

“Our focus from the beginning has been to build the foundation of a sustainable industry rather than pursue isolated interventions,” Ahmed said, noting that Pi-CNG & EV has worked closely with regulators, investors, vehicle manufacturers, conversion firms, financial institutions, development partners, transport unions and state governments.

Reviewing the Initiative’s achievements over the past two years, he said Nigeria’s CNG ecosystem has expanded rapidly, with more certified conversion centres established across the country and refuelling infrastructure growing through public and private sector investments.

He added that vehicle conversions have continued to rise as commercial transport operators and private motorists increasingly embrace the lower operating costs of CNG, while thousands of technicians have been trained to ensure safe and professional conversion services nationwide.

Ahmed also disclosed that strategic partnerships with financial institutions, energy companies, vehicle manufacturers and state governments are helping to improve access to financing, stimulate infrastructure development and accelerate the adoption of clean mobility solutions.

To strengthen safety and regulatory compliance, he announced the introduction of the Nigeria Gas Vehicle Monitoring System, which he said would enhance transparency, improve regulatory oversight and build public confidence in the conversion industry.

While acknowledging the remarkable progress recorded in CNG adoption, Ahmed stressed that the Initiative remains equally committed to advancing electric mobility, saying Nigeria’s long-term transport future would be powered by multiple clean-energy technologies.

He revealed that government is engaging manufacturers, investors and development partners on electric vehicle deployment, charging infrastructure, local assembly and policy reforms aimed at accelerating market growth.

Despite the progress, Ahmed identified infrastructure expansion, consumer financing, local manufacturing, technical capacity development, research, innovation and standardisation as key areas requiring sustained investment and collaboration.

He urged government agencies, investors, manufacturers, transport operators, financial institutions, development partners and the media to work together to overcome these challenges and build a sustainable clean mobility ecosystem.

Describing the media as a strategic partner, Ahmed called on members of the Nigeria Auto Journalists Association to intensify public education on the economic, environmental and technological benefits of clean mobility.

“The transition to clean mobility is as much an information challenge as it is an infrastructure challenge. Public understanding influences public acceptance, while market confidence is built on accurate, timely and responsible information,” he said.

He pledged deeper engagement with journalists through regular technical briefings, industry dialogues and improved access to credible data to combat misinformation and promote informed public discourse.

Ahmed said Pi-CNG & EV would continue expanding CNG infrastructure nationwide, strengthen the regulatory framework, support local manufacturing and vehicle conversion capacity, deepen financing partnerships and collaborate with stakeholders to build a commercially viable clean mobility industry.

According to him, the true measure of the Initiative’s success will not be the number of conversion centres or refuelling stations established, but its ability to reduce transport costs, improve energy security, generate employment, stimulate industrial growth and improve the quality of life of Nigerians.

He commended NAJA for providing a platform for robust industry dialogue, saying stronger collaboration among government, industry players and the media would be essential to accelerating Nigeria’s clean mobility transition.

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