Electricity distributors justify hike in power tariffs saying only the rich will pay more

ASSOCIATION of Nigerian Electricity Distributors (Aned) officials justified the recent increase in power tariffs across the country saying a lot of consumers receive at least 20 hours of supply daily so should be expected to pay more.

In what is a major impediment to its development, Nigeria only generates about 7,000MW of electricity, of which it can only distribute 4,000MW. This is wholly inadequate given that the economy requires about 50,000MW to operate properly and as a result, most Nigerians are reliant on private generators for their electricity.

Due to the inadequate power supply, everyone in Nigeria now uses private generators, which apart from being an environmental hazard, has made electricity very expensive. Nigeria is currently the world's biggest importer of small and medium generators and is the world's second biggest importer of large generators.

Even by African standards, Nigeria's power generation is very poor as Egypt generates 59,063MW of electricity and 58,095MW is generated in South Africa. To help address the situation, over the last week, power suppliers have hiked their tariffs, saying they need to raise capital to invest in infrastructure to improve supply.

Consumer organisation and labour unions have been livid about the hike, however, saying that apart from the fact that power supply is epileptic, ordinary Nigerians cannot afford the new rates. Inflation is currently ravaging Nigeria at about 30% and the federal government is yet to reach a deal with the trade unions on a new minimum wage.

Sunday Oduntan, Aned's executive director, said customers across the 11 electricity distribution companies (Discos) get between 20 and 24 hours of supply daily. He added that the hike affects only the rich in Nigeria and not the poor.

Mr Oduntan said: “I am a customer of two discos. When I am in Abeokuta, Egbaland, I am not on Band A but Band D, so I get less than eight hours. When I am in Abuja, I live in Sunny City Estate. It is never less than 20 hours per day, I have lived there for 10 years.

“The Nigerian Electricity Regulatory Commission (Nerc) should be commended for having the courage to look at the true cost of electricity. What they have done is to remove subsidies for 15% of electricity customers. Why should we be subsidising electricity for a man, for instance, with Royce Rolls?".

Last week  the Nigeria Labour Congress, Trade Union Congress, Lagos Chambers of Commerce, Abuja Chambers of Commerce and other organizations had, in separate statements, kicked against the new tariff increase. However, Adebayo Adelabu, the minister of power, said the government would save 52% on electricity subsidies following the tariff hike for 15% of customers.