TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

Timing of electricity tariff hike inauspicious – National Mirror

The Citizen by The Citizen
February 7 2016
in Public Affairs, Uncategorized
A A
0

Electricity consumers in Nigeria would begin to pay more for the product courtesy of the National Electricity Regulatory Commission’s (NERC) percent increase in tariffs in line with the Multi Year Tariff Order (MYTO 2.1), which took effect from February 1. Coming on the heels of the last increase in December 2014, this development confirms popular thinking that the Federal Government is more concerned with pricing policy in the power sector than infrastructural improvement.

Though the enforced implementation of the increase might have brought respite to the federal authorities that see such increase as the surest way of guaranteeing heavy private sector investment in the sector, the days ahead would prove if it is a well thought out policy in this season of excruciating socioeconomic challenges in the country. Nigeria has had a history of stormy electricity pricing. This is partly because of the sector’’s legendary inefficiency, a development traced to the government ’’s monopolistic control of the electricity supply-demand mix.

It is also partly a product of chronic underfunding by government with the attendant unwholesomeness. The ugly situation was not ameliorated by the power sector reforms undertaken by the immediate past administration of Dr. Goodluck Jonathan, which led to the unbundling of the Power Holding Company of Nigeria (PHCN) into 10 power distribution companies (DISCOs) and five power generation companies (GENCOs). Since the near complete privatisation of the power sector, electricity generation has not seen appreciable improvement. Against the official national demand threshold of 12, 800MW, actual generation has hovered around 4, 500MW. There was a time it slumped to an all time low of 800MW. Compounding the scenario is power supply without metering, a development that bred the exploitative culture of ‘‘crazy bills’’.

It is this parlous situation in the industry that unnerves electricity consumers and other non-government stakeholders whenever there is any talk of electricity tariff increase. In the last 14 months, NERC has actuated and implemented two such increases. In December 2014, the commission raised tariffs for businesses, industries and residential consumers in R3 categories, to formally bring into effect the new Multi-Year Tariff Order (MYTO 2.1). However, tariffs for residential consumers in categories R1 and R2 were frozen till 2015. The justification for the increase, NERC said, was the increase in the price of gas.

The year 2015 witnessed much dithering on the subject, largely because of restiveness among non-government stakeholders in the sector. For example, a restraining action was filed in a Lagos Federal High Court by Barrister Toluwani Adebiyi stopping NERC and DISCOs from implementing any increment in electricity tariff pending the hearing and determination of his suit. The trial judge, Justice Mohammed Idris, accordingly granted the ex parte application. However, in the twilight of 2015, the Federal Government took action that demonstrated its resolve to effect the tariff increase, when the commission’’s acting chairman, Dr. Anthony Akah, said a tariff increase in 2016 was a fait accompli. However, he conceded that the old order fixed charge electricity consumers pay would be part of the new tariff regime.

The proposed increase raised tariff for residential consumers (RC 2) by about 17 percent, while heavy consumers like manufacturing companies had theirs upped by about 50 percent. More importantly, the new tariffs are reflective of regional sensibilities. The Minister of Power, Works and Housing, Mr. Babatunde Fashola, defending the move, said it remained the only option to enhance stable power supply in the country. Expectedly, strong opposition to the increase came from traditional civil society organization like NLC, TUC on the grounds of its being anti-people, big business platforms like National Association of Chambers of Commerce and Industry, Mines and Agriculture (NACCIMA) and Lagos Chamber of Commerce and Industry (LCCI) have equally faulted the increase.

Instructively, the House of Representatives, the lower chamber of the National Assembly, is equally opposed to it. For NACCIMA, it is piqued by the unilateralism of the Federal Government action. Stating the organisation’’s position is the National Vice President, Prince Billy Gillis-Harry, who said such ““decision should come from pool of opinion. Every stakeholder should be part of it because the negative impact would be on all……”” There is no doubt the Federal Government ’’s new drive has betrayed a leadership under stress.

The nation’’s economic outlook might be dampening, it is not enough for a unilateral action in a critical sector like power. The nation ’’s power sector is not only about pricing and creating enabling environment for private sector players; there is a compelling need for a minimum investment requirement before a demand for any tariff increase could be made. Nigerians are rational enough not to oppose higher tariff, especially when electricity supply improves. We have not seen such improvement. Moreover, availability of pre paid meters to all consumers to eliminate the obnoxious culture of estimated billing system is still far from reality. This is a condition that must subsist. We equally frown at the growing impunity of government agencies, who flout court orders not favourable to them.

When a court order is made, it only takes a superior order to discharge it. We expect Mr. Fashola, a Senior Advocate of Nigeria, to know better. The law that establishes NERC does not confer legal immunity on it, so it must obey court orders.

Previous Post

Ugwuanyi moves against petroleum products racketeers in Enugu …dissolves state monitoring team

Next Post

The judiciary and corruption – The Nation

Related Posts

FAAC shares N2.09tr to FG, states, local councils as October revenue
Public Affairs

FAAC bonanza: Nigeria’s fiscal paradox – Punch

September 3 2026
Interstate highways of agony, hollow excuses – Punch
Public Affairs

Interstate highways of agony, hollow excuses – Punch

September 1 2026
Mass presence of governors in off-cycle elections – Punch
Public Affairs

Mass presence of governors in off-cycle elections – Punch

August 27 2026
Clerics must preach peace, not division – Punch
Public Affairs

Clerics must preach peace, not division – Punch

August 25 2026
Tax reform: Northern senators in closed-door meeting as bill scales second reading
Public Affairs

Tax reform must end multiple taxation – Punch

August 24 2026
BREAKING: Kidnapped Oyo pupils, teachers regain freedom
Public Affairs

Terror victims deserve care – Punch

August 21 2026
Next Post

The judiciary and corruption – The Nation

Anti-graft war: Beyond asset declaration – Punch

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Lagos demolishes shanties after four die in community clash

Lagos demolishes shanties after four die in community clash

by The Editor
August 30 2026
0

...

Kano, Sokoto, others spend N53.2bn on scholarships abroad

INEC fixes Sept 19 for Kano Assembly by-election

by The Editor
August 27 2026
0

...

Awujale: Ruling House sues Ogun, kingmakers

Awujale: Ruling House sues Ogun, kingmakers

by The Editor
August 25 2026
0

...

Umahi’s son wins Ohaozara chairmanship as APC sweeps all Ebonyi LGAs

Umahi’s son wins Ohaozara chairmanship as APC sweeps all Ebonyi LGAs

by The Editor
August 24 2026
0

...

APPOINTMENTS

Tinubu swears in Enitan as new Head of Service

Tinubu swears in Enitan as new Head of Service

by The Editor
August 28 2026
0

...

Tinubu names new Head of Service

Tinubu names new Head of Service

by The Editor
August 19 2026
0

...

Sahara Upstream positions Arahas and SGIR for next growth phase, deepens investment in African oilfield services

Sahara Upstream positions Arahas and SGIR for next growth phase, deepens investment in African oilfield services

by The Editor
August 8 2026
0

...

Police IG deploys new CPs to eight states, other formations

Police IG deploys new CPs to eight states, other formations

by The Editor
August 7 2026
0

...

ODDITIES

Palliatives: Sokoto residents feared dead in stampede at Wammako’s residence

Police Inspector slumps, dies after fitness exercise

by The Editor
September 3 2026
0

How friend deceived me to sell my kidney, bought phones with payment — Victim

How friend deceived me to sell my kidney, bought phones with payment — Victim

by The Editor
August 30 2026
0

Umahi files N2.5b defamation lawsuit against bloggers

Umahi files N2.5b defamation lawsuit against bloggers

by The Editor
August 26 2026
0

GLOBAL NEWS

Iran President thanks Putin for Russia’s stance in war with US

Iran President thanks Putin for Russia’s stance in war with US

by The Editor
September 1 2026
0

...

Saudi Arabia halts multiple visas for Nigeria, 13 others as U.S. suspends visa dropbox

US outlines two family visa options for permanent residence

by The Editor
September 1 2026
0

...

US Army Secretary submits resignation

US Army Secretary submits resignation

by The Editor
September 1 2026
0

...

Russia helps Niger Republic junta to retake military base

Russia helps Niger Republic junta to retake military base

by The Editor
August 30 2026
0

...

WHO declares global health emergency over Ebola outbreak in Congo, Uganda

WHO confirms Uganda Ebola-free, as virus continues spread in DRC

by The Editor
August 28 2026
0

...

State of the States

Fubara orders fresh LG elections in Rivers State

Fubara signs N1.84tt Rivers 2026 budget into law

by The Editor
September 3 2026
0

...

Lagos empowers 6,190 residents with free vocational, entrepreneurial skills

Lagos empowers 6,190 residents with free vocational, entrepreneurial skills

by The Editor
September 2 2026
0

...

Gov. Mutfwang convenes security council over Plateau attacks

Gov. Mutfwang convenes security council over Plateau attacks

by The Editor
September 2 2026
0

...

Enugu govt gets commendation for successful hosting of 2nd City Marathon

Enugu govt gets commendation for successful hosting of 2nd City Marathon

by The Editor
September 1 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Police slam treasonable felony charge on Katsina man for destroying Tinubu’s billboards

Police slam treasonable felony charge on Katsina man for destroying Tinubu’s billboards

September 3 2026
INEC to conduct mock presidential election

INEC to conduct mock presidential election

September 3 2026
Palliatives: Sokoto residents feared dead in stampede at Wammako’s residence

Police Inspector slumps, dies after fitness exercise

September 3 2026
FAAC shares N2.09tr to FG, states, local councils as October revenue

FAAC bonanza: Nigeria’s fiscal paradox – Punch

September 3 2026

EDITORIAL REVIEW

FAAC shares N2.09tr to FG, states, local councils as October revenue

FAAC bonanza: Nigeria’s fiscal paradox – Punch

by The Editor
September 3 2026
0

Interstate highways of agony, hollow excuses – Punch

Interstate highways of agony, hollow excuses – Punch

by The Editor
September 1 2026
0

Mass presence of governors in off-cycle elections – Punch

Mass presence of governors in off-cycle elections – Punch

by The Editor
August 27 2026
0

Clerics must preach peace, not division – Punch

Clerics must preach peace, not division – Punch

by The Editor
August 25 2026
0

Tax reform: Northern senators in closed-door meeting as bill scales second reading

Tax reform must end multiple taxation – Punch

by The Editor
August 24 2026
0

Opinion

 Akpakomiza and other stories

by The Editor
September 1 2026
0

...

‘Fake’ Agency: Adeyemi insists DG appointment genuine

Fake agencies: Why Nigeria still needs Oronsaye report

by The Editor
August 25 2026
0

...

How Adeleke danced back from the dead

How Adeleke danced back from the dead

by The Editor
August 19 2026
0

...

Adeleke’s win and the cost of winning at all costs

Adeleke’s win and the cost of winning at all costs

by The Editor
August 18 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.