The Nigerian House of Representatives has called on the Nigerian Electricity Regulatory Commission (NERC) to suspend its proposed electricity tariff increase scheduled for June 2021.
The House described the decision as insensitive, especially given the harsh economic realities faced by many Nigerians.
The motion, moved by Rep. Aniekan Umanah (PDP–Akwa Ibom), was unanimously adopted during plenary on Thursday, May 20, 2021.
NERC’s Mandate Under Scrutiny
Umanah, while presenting the motion, reminded the House that NERC was established under the Electric Power Sector Reform Act of 2005 with responsibilities that include licensing Distribution Companies (DISCOs), setting industry standards, and establishing cost-reflective tariffs.
However, he emphasized that despite NERC’s mandate, electricity tariffs have been increased at least five times since 2015, with the most recent hike on January 1, 2020.
Yet, Nigerians still endure erratic power supply and poor service delivery.
Impact on Nigerians and the Economy
Umanah lamented the continued exploitation of electricity consumers through estimated billing, revealing that over 50% of Nigerians remain unmetered.
He cited a 2020 report by the International Monetary Fund (IMF), which estimated that Nigeria’s manufacturing sector lost over $200 billion due to inadequate electricity, while citizens spent an additional $21 billion on power generators.
According to him, the nation is reeling under several crises, including terrorism, kidnappings, banditry, and the lingering economic fallout from the COVID-19 pandemic—all of which have weakened the purchasing power of the average Nigerian.
House Committees Tasked with Oversight
Umanah stressed that the proposed tariff hike would further burden citizens already struggling to survive.
“Any further hike in electricity tariff at this time will amount to overkill, lack of empathy, and height of insensitivity,” he stated.
Following deliberations, the House mandated its Committees on Power, Poverty Alleviation, and Labour, Employment and Productivity to monitor and ensure compliance with its directive.
What You Should Know
In April 2021, NERC announced plans to conclude the Extraordinary Tariff Review for the 11 electricity distribution companies in Nigeria.
This review is part of a minor tariff adjustment process that began in early 2020.
The upcoming review factors in inflation, foreign exchange rates, gas prices, and generation capacity—all of which may trigger another tariff increase by July.
