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No Electricity Tariff Increase – Power Minister

(AFRICAN EXAMINER) – At the backdrop of rumors of possible hike in electricity tariff, the Minister of Power, Engr. Sale Mamman, has indicated that the ministry is focusing on increased efficiency and not tariff. In a statement made available , Mamman said, ‘‘instead of significant hike in electricity tariff, Nigerians should expect an increase efficiency in the sector to reduce tariffs while managing headwinds from foreign exchange and inflation.’’ Mamman explained that the order issued by the Nigerian Electricity Regulatory Commission, NERC, on the 26th of April 2021 titled “Notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies” was a routine procedure.

Yet Another Tariff Hike Looms

Energy The Nigerian Electricity Regulatory Agency (NERC) has said from July it would again review, nay increase electricity tariffs across board in the country. This is as the quality and stability of supply continues to dwindle by the day. Like in the past, it’s almost a done deal, unless President Muhammadu Buhari steps in or declines to approve the hike. Emmanuel Addeh writes that despite such exercises in the past, Nigerians who have always been at the receiving end, have not experienced commensurate value from the sector. Again, the Nigerian Electricity Regulatory Agency (NERC), which now appears to be seen or heard only when plans are underway to embark on reviews, as if that’s its only statutory function, has announced that Nigerians may pay more for the elusive power supply a few months from now.

Nigerians pay billions of naira to DisCos despite frequent outages

While the customer base has improved to over 10 million, according to enumeration records submitted to the Nigerian Electricity Regulatory Commission (NERC), power outages, rationing and low voltage are still prevalent among consumers. Analysis of revenue collection by the DisCos in 2019 shows that they improved the Nigerian Electricity Supply Industry (NESI) yearly collection by N39 billion, reaching a total of N485 billion, with a collection efficiency of 69 per cent. According to revenue records released by the Association of Nigerian Electricity Distributors (ANED), by the first quarter of 2020, DisCos had realised N127bn, which was over 10 per cent improvement than their quarterly collection of 2019.

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