The House of Representatives has directed the Nigeria Electricity Regulatory Commission (NERC) to suspend the implementation of the new electricity tariff. This decision was made during a plenary session on Tuesday following the adoption of a motion of urgent public importance.
The Cable reports that the motion, which called for the suspension of the new tariff, was sponsored by Nkemkanma Kama, a Labour Party (LP) lawmaker representing Ebonyi state.
NERC had earlier approved an increase in electricity tariff for customers under the Band A classification. According to the commission, customers in this category, who receive 20 hours of electricity supply daily, would begin to pay N225 per kilowatt (kW), effective April 3. This represents a significant increase from the previous tariff of N66 per kW.
Defending the tariff hike before the Senate Committee on Power on Monday, Adebayo Adelabu, the Minister of Power, stated that the federal government could no longer afford to subsidize electricity.
According to Adelabu, to revive the sector, the government would need to invest about $10 billion annually over the next 10 years to meet the infrastructure requirements for its stability. However, he emphasized that the government was not in a financial position to meet this demand.
Adelabu further stated that the increased electricity tariff for Band A customers had attracted investors to the electricity sector.
The House of Representatives’ decision to halt the implementation of the new electricity tariff comes amid concerns from various quarters about the tariff hike’s impact on consumers.