Despite nationwide outcry over erratic electricity supply and economic hardship, the Bola Tinubu-led Federal Government has hinted at a looming increase in electricity tariffs—fueling fears of a deeper power sector crisis.
The revelation comes as Minister of Power, Adebayo Adelabu, announced that the government can no longer sustain blanket electricity subsidies and will now shift towards a cost-reflective pricing model. Speaking during a meeting with chairmen of power generating companies (GenCos) in Abuja, Adelabu declared: “Citizens must pay the appropriate price for the energy consumed.”
While assuring that subsidies would continue for “economically disadvantaged Nigerians,” the minister failed to define who qualifies under this category—raising concerns about possible exploitation and further financial pressure on vulnerable households.
In a statement issued by the minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, it was revealed that President Bola Ahmed Tinubu is scheduled to meet with GenCos over a staggering N4 trillion debt owed by the government—a liability threatening to collapse the power sector if not urgently addressed.
“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu emphasized.
This is not the first time the administration has flirted with the idea of a price hike. In February, President Tinubu’s Special Adviser on Energy, Olu Verheijen, during a World Bank-backed conference in Dar es Salaam, Tanzania, stated that electricity tariffs would have to rise to attract private investment and improve service delivery. She emphasized that while subsidies would remain for the poor, the overall structure must shift to reflect actual production and maintenance costs.
“One of the key challenges we’re looking to resolve over the next few months is transitioning to a cost-efficient but cost-reflective tariff,” she said, aligning the move with Nigeria’s economic ambition to become a $1 trillion economy within five years.
However, the push for higher electricity tariffs is being met with mounting resistance from civil society and labour unions. In May 2024, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) staged protests against the tariff hike imposed on over two million Band A customers.
Chanting solidarity songs and waving placards with inscriptions like “Let the poor breathe. Give us affordable and constant power” and “We are not a generator republic,” the unions stormed the offices of the Nigerian Electricity Regulatory Commission (NERC), Transmission Company of Nigeria (TCN), and the Abuja Electricity Distribution Company (AEDC), demanding an immediate reversal.
The irony of the government’s plan lies in the persistent decline in electricity generation. A SaharaReporters analysis of NERC data shows that power generation dropped in Q4 2024 to 9,289 GWh/h from 9,450.76 GWh/h in Q3. Average hourly generation also fell from 4,280.24 MWh/h to 4,207.41 MWh/h. Similarly, the energy received by Distribution Companies (DisCos) dipped to 3,360.77 GWh/h from 3,445.13 GWh/h.
Critics argue that the government’s insistence on tariff hikes, despite these dismal performance indicators, amounts to punishing Nigerians for its failure to reform the sector. With the grid in near-constant disrepair and reliance on generators growing, many see the hike as a slap in the face of struggling citizens.
As Nigerians await clarity on the proposed changes and the outcome of Tinubu’s pending meeting with GenCos, one question looms large: will the government prioritise genuine reform over burdening the masses?
PIONEER NEWS 