The Federal Government’s recent announcement of a possible electricity tariff increase has triggered strong opposition from small business owners and civil society organizations (CSOs), who argue that another hike will worsen economic hardship.
During the unveiling of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan (NIRP) in Abuja, Minister of Power Adebayo Adelabu revealed that the government is struggling to sustain the ₦3 trillion subsidy for the power sector.
He also noted that debts owed to power generation companies (GenCos) have soared to ₦4 trillion, making the current system unsustainable.
Another Tariff Increase? FG Says Review Is Necessary
While Adelabu did not outrightly confirm a tariff increase, he stated that the government will review electricity pricing to ensure more investment in dilapidated infrastructure and improve service delivery.
According to him, customers in Band B, who receive about 18 hours of electricity daily and pay ₦63/kW, are in an unfair position compared to Band A customers, who receive the most stable power supply.
He emphasized that reforming Nigeria’s electricity market is essential to attracting more investment and improving reliability.
Govt Targets $29 Billion Investment by 2035
The new policy documents outline plans to phase out self-generation and unreliable electrification by 2035, with an expected investment of $29.23 billion in the power sector.
By 2045, the government anticipates total investments will reach $122 billion.
Adelabu stressed the need to strengthen the national power grid, revealing that 60% of manufacturers have resorted to generating their own power due to the unreliable supply from the grid.
Business Owners, CSOs Warn of Economic Collapse
The Association of Small Business Owners of Nigeria (ASBON) has warned that another tariff increase will cripple many small businesses already struggling with high operating costs.
“A further hike will trigger inflation, increase production costs, and ultimately force many micro and small businesses to shut down,” said ASBON President, Dr. Femi Egbesola.
Similarly, Education Rights Campaign (ERC) has vowed to mobilize Nigerians against any tariff hike. ERC National Coordinator, Hassan Taiwo, described the move as an unjust burden on citizens who already suffer from frequent power cuts and poor service delivery.
“The government should abandon any plans for an increase. The power sector has not improved, and customers continue to experience frequent blackouts.
Why should Nigerians pay more for a service that remains unreliable?” Taiwo questioned.
Activists: “Private Investors Are Profiting Without Expanding Supply”
The Movement for Socialist Alternative (MSA) also condemned the proposed hike, arguing that private investors in the power sector have failed to expand Nigeria’s electricity supply despite making massive profits.
“Instead of improving generation capacity, they have focused on increasing tariffs while ordinary Nigerians continue to suffer power outages,” said MSA General Secretary, Dagga Tolar.
He called for nationalizing electricity supply and ensuring that it is democratically managed by workers, consumers, and the government.
NERC Introduces Customer Bill of Rights
Amid the controversy, the Nigerian Electricity Regulatory Commission (NERC) has launched a Customer Bill of Rights and Obligations to protect consumers and ensure fair service delivery.
Key highlights include:
- Clear information on electricity rates and terms of service
- Fair billing practices
- Timely resolution of complaints
- Protection against arbitrary disconnections
NERC also urged customers to report any unauthorized use of electricity or meter tampering and to notify their DisCos when moving out of a property to avoid liability for outstanding bills.
Will Nigerians Accept Another Tariff Hike?
With inflation at 34%, soaring costs of living, and businesses struggling, many Nigerians are unwilling to accept another increase in electricity tariffs.
CSOs and labor unions are already preparing for mass protests if the government pushes forward with its plans.
What do you think about the proposed electricity tariff hike? Share your thoughts in the comments!
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