Federal Govt secretly raises electricity tariff - Investigation – Newstrends
Connect with us

metro

Federal Govt secretly raises electricity tariff – Investigation

Published

on

Chairman/CEO, NERC,Engr. Sanusi Garba,

Unknown to most Nigerians, they are now paying higher for electricity after the authorities quietly raised the tariff without notifying consumers of the product.

LEADERSHIP Friday reports that the slight electricity tariff adjustment in September points to the confirmation of plans by the federal government to withdraw its subsidy payment in the sector.

A discreet investigation by LEADERSHIP uncovered a clandestine tariff adjustment which key industry sources say was effected to gauge reactions from the public.

Though inquiry sent to Usman Arabi, spokesman of the Nigerian Electricity Regulatory Commission (NERC) to confirm the development was not responded to, LEADERSHIP Friday’s findings show that a 2 per cent hike was effected in September.

Our source said the adjustment became inevitable as government can no longer sustain the subsidy payment.

“The hike is infinitesimal because it was not intended to draw any attention, and it is deliberate and would continue at that level so as not to choke consumers, but it will certainly be a periodic review,” our source said.

Government has claimed that its subsidy payments in the electricity sector is well over N30 billion monthly.

Vice President Yemi Osinbajo had, at the opening of the 14th Nigerian Association for Energy Economics (IAEE) Conference in Abuja, recently, said the government expected the electricity sector to generate its revenue from the power sector market.

Speaking through the special adviser to the president on infrastructure, Ahmed Zakari, he said, “The Federal Government intends to reduce its interventions in the power sector and thus allow the electricity market to run on its own, thereby allowing the market participants to determine the course of action.”

Going by what Osinbajo said, with such consideration to scrap electricity subsidy from next year, Nigerians would have to pay more for the commodity under a new tariff arrangement to be unveiled by the federal government.

Osinbajo noted that government would be investing over $3 billion in the coming years to improve transmission and distribution infrastructure across the country.

He explained that the effort of President Muhammadu Buhari’s administration to reform the energy sector would ensure that it continues to play critical roles in the growth of the country’s social and economic wellbeing.

He said: “Electricity tariff reforms with service-based tariff has led to collections from the electricity sector by 63 per cent, increasing revenue assurance for gas producers and stabilising the value chain.

“It is anticipated that all electricity market revenues will be obtained from the market, with limited subsidy from next year as reforms in metering and efficiency with the DisCos (distribution companies) to improve.

“To accelerated investment in transmission and distribution, over $3 billion will be put into this sub-segment of the electricity value chain that will put us on the path to delivering 10 gigawatts through the interventions of the Central Bank of Nigeria/Siemens partnership, World Bank and Africa Development Bank, and others.”

The federal government and Labour had gone into extensive discussions prior to the implementation of the Service-based Tariff in November 2020, where the electricity regulator (NERC) had promised improvement in service delivery to Nigerians.

The highest peak generation of electricity for the month of September was 4,694 Megawatts (MW), including electricity exports, and what was available for Nigerians in-country came down to 3,863MW, a far cry from the 30,000MW demand for electricity in the country

Essentially the country is providing roughly 11 per cent of the citizens’ demand for electricity despite huge government interventions in the power sector.

At the recent NERC-stakeholders’ forum, concerns were raised about the power sector moving backwards rather than forging ahead going by the too many policy inconsistencies.

Nigeria has one of the poorest supplies of electricity despite the power sector contributing 78 per cent to GDP growth for Q2 2021.

Chairman of the Nigeria Electricity Consumers Advocacy Network (NECAN),Tomi Akingbogun,  deplored the nature of the hike, describing it as fraudulent.

He said, “This is unfortunate and deceitful. No nation can develop based on deceit. Manufacturers need to capture their costs well to make profit so as to continue to produce.

“If costs are increased and hidden, the company will lose and close down, thereby increasing unemployment and reducing gross domestic product (GDP), etc.

“NERC needs to be run by people who understand the dynamics of the economy. NERC, at present, are not fair judges.”

Akingbogun, further said, “We all noticed this some months ago, the whole country cannot be deceived.”

Also, a vendor with one of the DisCos confirmed to our correspondent that an increase was actually made last month and that customers who patronise her observed the slight adjustment.

“I am aware and customers have been confronting me, but I have to let them know that there is a little adjustment following improvements in supply. That’s what I can tell you for now,” she said.

The Nigeria Labour Congress (NLC) has vowed to deploy the industrial mechanisms granted in labour laws for the defence of workers’ rights to resist increase in electricity tariff.

Equally, NLC President Ayuba Wabba had in July warned against a speculated plan to grant approval to DisCos to hike electricity tariff.

While the speculation was rife, Wabba said, “It is in the light of this that we dismiss the ongoing speculation on increase in electricity tariff as mere speculation.

“We, however, find it prudent to put you on notice should government make true the swirling speculation by approving an increase in electricity tariff, Organised Labour will be left with no option than to deploy the industrial mechanisms granted in our laws for the defence of workers’ rights.”

Wabba said that NLC had written to remind the minister that Organised Labour on September 28, 2020, through the Federal Government/Organised Labour Committee on electricity tariff, agreed to freeze further increases in tariff until it concludes its work and its report adopted by all the principals in the committee.

In his own reaction, convener of PowerUp Nigeria, Adetayo Adegbemle, said since privatisation, Nigeria has continuously bent over to the demands of the private operators without experiencing any notable improvement in the fortunes of Nigeria’s power sector, except the demands for tariff increase.

He lamented that despite all the several tariff increments, there has not been improvement in service delivery.

“The investors have not done well to keep to their end of the bargain, and the truth is that nobody trusts them enough to want to gamble on more time.

“There is no amount of money thrown at the power sector that will resolve the problems, as the power sector challenge is not a money problem,” he said.

Leadership

metro

Gunmen kill two soldiers in Abia checkpoint attack

Published

on

Gunmen kill two soldiers in Abia checkpoint attack

Early Wednesday morning, gunmen attacked an army checkpoint in Ekenobizi, a border community between Abia and Imo states, located in Umuopara, Umuahia South Local Government Area.

The assailants reportedly arrived around 6:18 a.m. in a white Lexus SUV (model 350/400) and launched an assault that resulted in the deaths of two soldiers.

A military source, who wished to remain anonymous, provided details of the incident but could not confirm the exact number of attackers involved.

READ ALSO:

Confirming the incident in a press release on Wednesday, Lieutenant Colonel Jonah Unuakhalu of the Joint Task Force South East Operation UDO KA said: “In the early hours of today, 13 November 2024, troops of the Joint Task Force South East Operation UDO KA, deployed at a checkpoint along the Umuahia – Owerri Road in Umuahia South Local Government Area of Abia State, came under attack by the irredentist group Indigenous People of Biafra and its armed affiliate, the Eastern Security Network.

“During the attack, the gallant troops were able to repel the assault, forcing the attackers to retreat in disarray with gunshot wounds, abandoning one Sienna and one Lexus Jeep used in the attack. However, in the ensuing firefight, two soldiers paid the supreme price.”

The Joint Task Force appealed to residents of the South East, particularly those in Abia State, for credible information to help track down the fleeing attackers and combat criminal elements in the region.

The force reiterated its commitment to protecting lives and property in line with global best practices and the rules of engagement.

 

Gunmen kill two soldiers in Abia checkpoint attack

Continue Reading

metro

94 arrested as task force raids Lagos rail corridor squatters

Published

on

94 arrested as task force raids Lagos rail corridor squatters

At least 94 illegal occupants and squatters along the railway corridor from Pen Cinema to Fagba were arrested by the Lagos State Taskforce in an early morning sting operation on Wednesday.

During the raid, substances suspected to be hard drugs—such as Indian hemp, colorado, and other harmful drugs—were seized, along with various weapons.

It was gathered that those arrested attempted to resist the task force’s actions.

In a statement, Director of Public Affairs, Gbadeyan Abdulraheem, confirmed that those arrested will face prosecution.

He added that the agency dismantled shanties and makeshift structures along the railway corridor, clearing a distance of some kilometers.

The Taskforce Chairman Adetayo Akerele explained that the eviction aimed to provide relief for residents around the Fagba, Agege, and Pen Cinema railway routes, following numerous complaints from the public about criminal activities in the area.

He noted that the squatting had violated environmental and sanitary regulations.

READ ALSO:

Akerele also highlighted the health and safety risks posed by the presence of squatters along the rail corridor.

He warned the evicted individuals not to return and assured residents and train passengers that regular patrols and surveillance would be conducted to prevent the re-establishment of shanties in the area.

“The rail tracks are not meant for habitation or the sale of narcotics. Anyone caught converting this place into a den of criminals or an area of residence will face severe consequences according to the law,” Akerele was quoted as saying.

Speaking on the raid, Commissioner for Environment and Water Resources, Tokunbo Wahab, disclosed that a locally fabricated short gun was recovered.

“94 suspects were arrested during the midnight operation; a locally fabricated short gun and several wraps of illicit substance suspected to be indian hemp, charm and a jack knife were recovered.

“The suspects will be charged to court accordingly,” Wahab stated in a post on X.

 

94 arrested as task force raids Lagos rail corridor squatters

Continue Reading

metro

Okpebholo sacks all political appointees, Board executives in Edo

Published

on

Governor Monday Okpebholo of Edo State

Okpebholo sacks all political appointees, Board executives in Edo

Governor Monday Okpebholo of Edo State has swept out all Board, Parastatal, and Agency appointees from his predecessor, Godwin Obaseki, in a decisive move to overhaul the state’s public service.

A statement released on Wednesday by the Governor’s Chief Press Secretary, Fred Itua, confirmed the immediate dismissal of all political appointees and Permanent Secretaries brought in from outside the state Civil Service.

READ ALSO:

The statement reads:

“For the information of the general public, His Excellency, Senator Monday Okpebholo, Governor of Edo State, has approved the dissolution of Executives of all Boards, Agencies, and Parastatals in the Edo State Public Service with immediate effect.

“In addition, all Permanent Secretaries appointed from outside the State Public/Civil Service and all Political Appointees are hereby relieved of their appointments.”

Affected individuals have been directed to return all government property in their possession to the senior Public Officers in their respective Ministries, Departments, and Agencies.

 

Okpebholo sacks all political appointees, Board executives in Edo

Continue Reading

Trending