It appears that the back and forth policy drives of the government regarding power sector reforms is the reason the sector has failed to recover; SUNNY IDACHABA writes.
From all indications, the last has not been heard regarding how power generation can improve in Nigeria. The ongoing hullabaloo on the recently-increased electricity tariff for certain bands as announced by the Nigeria Electricity Regulatory Commission (NERC) is a pointer to that effect.
As of the time of filing in this report, all stakeholders were yet to arrive at a consensus regarding the admissibility of that increase for now or otherwise as there are diversities of opinion.
Therefore, as it is presently, the matter has assumed a somewhat classroom debate where those in favour of an increase adduce their points while those against are simply of the opinion that the time is not yet ripe for any increase in electricity tariff until certain a parameters are met.
It’s no longer news that NERC woke up a fortnight ago and announced a somewhat soaring increase in electricity tariff especially for those on Band A. The announcement was instantly greeted with reactions by stakeholders, especially the National Assembly and labour unions, who want an immediate reversal for now.
The labour unions, for instance, followed with a warning that if the tariff was not reversed, there would be a showdown. The matter even assumed a legal dimension with a court asking that the status quo prior to the increase be maintained pending the determination of a suit before it.
In the process that ensued, the government stepped in and unbundled the Transmission Company of Nigeria (TCN) for more private companies to be involved in transmission as against the erstwhile monopoly of TCN. This is where we are presently as there seems to be no going forward or a retreat by parties concerned.
Labour’s threat
In a joint letter signed by the duo of Joe Ajaero of the Nigeria Labour Congress (NLC) and Festus Osifo of Trade Union Congress (TUC) to the chairman of NERC and copied to the Office of Secretary to the Government of the Federation, the ministers of labour and power and electricity distribution companies plus other stakeholders, they issued an ultimatum to NERC to effect a reversal before May 12 to avoid a showdown.
Parts of the letter read, “This is to refer you to our May Day address where we expressed grave concerns regarding the recent announcement of an astronomical hike in electricity tariff across the nation from N65/kWh to N225/Kwh by your commission.
‘’We believe that this decision is not just morally reprehensible considering the difficulties Nigerians are faced with currently, but it blatantly disregards fundamental principles and statutory obligations.
“It is a slap in the face of justice and fairness and we will not stand idly by as the masses and workers are subjected to such unacceptable exploitation.
“As the regulator of the electricity sector, it is imperative that your commission grasps the weight of its responsibilities. NERC’s role entails the regulation of electricity tariffs in the country, a duty outlined in explicit detail within the statutes governing the commission. Yet, with this recent tariff hike which you have acquiesced, it is evident that the commission has forsaken its duty and abandoned the people it was meant to protect to the fat cats in the electricity industry.
“We are miffed that NERC has become a tacit collaborator in crafting the oppressive pricing regime being perpetuated against Nigerian workers and people. The laws that set up the commission mandate it to act as an unbiased ombudsman in the electricity industry; unfortunately, the reverse is the case as it has acted in cahoots with the Distribution Companies, DisCos and the Generating Companies, GenCos, to promote their nefarious market practices.
“The announced tariff hike not only defies the established procedure mandated by law but also tramples upon the rights of Nigerian citizens. It is a flagrant abuse of power and a clear violation of the trust bestowed upon your commission by the Nigerian people. Such actions will not be tolerated, and we refuse to accept them as the new normal.
“Nigerian workers and masses led by the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) stand united in denouncing this injustice. We must defend the rights of our fellow citizens against exploitation.
“Therefore, we demand an immediate reversal of the hike in electricity tariff to N65/kwh, immediate cessation of the discriminatory practice of segregating electricity consumers into arbitrary bands, and restoration of the supremacy of the statutes governing the conduct of operators within the electricity industry.
“We give you until Sunday, May 12, 2024, to comply. Failure to do so will result in swift and decisive action on our part as we will not hesitate to mobilise our members and occupy all NERC’s offices and those of the DisCos nationwide until justice is served.”
The court order
In what looks like a follow-up to labour’s threat, a Federal High Court in Kano issued an order restraining NERC and the Kano Electricity Distribution Company (KEDC) from implementing the new electricity tariff for Band A consumers. The suit marked FHC/KN/CS/144/2024 was filed by Super Sack Company Limited and BBY Sacks Limited. Others complainants in the suit were Mama Sannu Industries Limited, Dala Foods Nigeria Limited, Tofa Textile Limited, and Manufacturers Association Of Nigeria Limited.
The presiding judge, Abdullahi Liman, while ruling on an ex-parte motion by Abubakar Mahmoud on behalf of the plaintiffs, ordered NERC and KEDCO from going ahead with the impending tariff, but wait until the hearing and determination of the motion on notice before him.
The court order also restrained the defendant from disconnecting the applicants’ electricity supply for non-acceptance of the new increased tariff or any form of intimidation whatsoever.
Lawmakers angry with NERC
The National Assembly members who just returned after a long recess expressed anger over what they called arbitrary increase.
The lower legislative House in particular called on NERC to suspend forthwith the implementation of the new electricity tariff nationwide.
At the resumption of plenary on Tuesday last week, the member representing Ivo/Ohaozara/Onicha Federal Constituency of Ebonyi state, who is a chieftain of the Labour Party, Kama Nkemkanma, reminded his colleagues under matters of national importance about the need to address what he called the sudden hike in electricity prices in Nigeria.
The motion aims to restore public trust, protect consumer rights and ensure regulatory accountability in electricity supply.
He said, “What’s more concerning are the reports indicating discrepancies in customer categorisation and widespread complaints regarding inadequate service despite increased charges. This situation has not just sparked national anxiety, but it also threatens regulatory certainty and investor confidence in the sector, demanding immediate attention.
“This motion argues for legislative intervention, underlining our constitutional and moral obligations to address the crisis and alleviate the burden on Nigerian citizens. It places a strong emphasis on the legislative oversight role over NERC and the electricity utilities.
“The motion proposes resolutions to suspend the recent tariff increases, establish a special committee for hearings involving relevant stakeholders, appoint a technical consultant to assess the legality and reasonableness of NERC’s procedures and draft a bill to improve regulatory processes in tariff setting.”
Reps urge NERC to suspend tariff
Following the adoption of the motion, the House ordered NERC to suspend the operation of the new tariff and also resolved to set up a special committee made up of the Committees on Power, Commerce, Delegated Legislation and National Planning to organise a well-structured hearing on the price regulation of NESI with the participation of the minister of power, chairman and commissioners of NERC, the CEO of all electricity utilities in Nigeria, president of the National Industrial Court, Trade Union Congress and leaders of chambers of commerce.
It also resolved to appoint a well-regarded former regulator as technical consultant to the House to develop templates for determination of the legality and reasonableness of the procedure adopted by NERC in approving the tariff increase and establishing the performance benchmarks for the Discos.
Hapless Nigerians react
In reacting to all these, concerned Nigerians say the instantaneous reaction, especially by the lawmakers, to the increase was because they were mostly affected.
A power consumer, Odafe Noel, told Blueprint Weekend that, “It’s easy for the lawmakers to react speedily the way they have done because they fall largely under Band A categorisation otherwise if it concerns the downtrodden, they would dilly-dally around it as if nothing was wrong. We know what they are doing. As if they are fighting for the interest of the masses; it’s their own interests they are protecting. We know it,” he said.
Another power consumer, Ahmed Mashi, wondered why up till this moment Nigeria can barely generate 10,000 Mega Watts of electricity after so many years.”
According to him, “How can a nation of over 180million people depend on less than 5,000MW of power? How can we grow economically? Where will the development come from when we don’t have the capacity?
“Are we cursed or what? With all the abundance in this country! What sort of people are we? Yet, we rally round these politicians and support them blindly based on tribe or religion, when in the long-run we’re the ones being screwed!”
