Nigeria is currently facing a wave of social media outrage following the news of an impending electricity tariff increase set to take effect on July 1, 2023.
Speculations and rumors surrounding the proposed hike have gripped the nation, fueling public concerns and triggering a heated debate about the impact on consumers and the overall state of the country’s power sector.
As news of the proposed electricity tariff increase spread across social media platforms, Nigerians took to Twitter, Facebook, and other online forums to express their frustrations and concerns. The reactions have been diverse, with many citizens expressing discontentment and skepticism regarding the timing and necessity of such a price hike.
About the minor tariff adjustment
Blueprint can report that the previous administration of President Muhammadu Buhari had removed subsidies on electricity tariffs, and made a policy of reviewing tariff rates every six months.
Also, the immediate past Minister of Finance, Zainab Ahmed, had in 2022, announced that the government removed the subsidy on electricity tariff.
Similarly, the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Engr. Sanusi Garba, recently confirmed the removal of the tariff, saying that the commission played a role in ensuring that tariff rates were regulated.
He said the electricity subsidy had been reduced in the past four to five years over its unsustainability regarding investors’ return on investments.
The tariff increment is carried out under the minor tariff order review.
According to reports, in January 2021, the electricity tariff was increased by 50 percent; also increased in January 2022; and in January 2023, it increased by 18.5 percent.
Concerns over July planned increment
Critics have, however, argued that the proposed increase comes at a time when the majority of Nigerians are grappling with economic challenges and struggling to meet basic needs.
Amidst the uproar on social media, several rumors and speculations have circulated regarding the reasons behind the proposed electricity tariff increase. While these rumors should be taken with caution until official confirmation is provided, they provide insights into the concerns and fears of Nigerians regarding the forthcoming tariff adjustment.
One widespread speculation is that the proposed increase is a direct response to the rising cost of power generation and distribution.
It is argued that the power sector in Nigeria faces numerous challenges, including inadequate infrastructure, gas supply issues, and revenue shortfalls. Critics claim that the tariff hike is an attempt to bridge the funding gap and facilitate necessary investments in the sector.
A Twitter commentator, @Woye1 tweeted that, “this process to increase started early this year. It is just a coincidence that it happened under FG not Tinubu. What is the alternative? The Chairman can suspend the tariff and gives more money to discos to shore up their finances.
“Discos are in biz, discos are buying equipment and parts from the same forex market. Discos will collapse if they do not have enough liquidity.
“Discos can’t enjoy preferential forex rate again. So if you suspend, you must give succor to Gencos and Discos. Whatever you called it, the electricity subsidy will increase. Wahala dey.”
Another Twitter user, #Ilemona suggested that the proposed increase is an indirect consequence of the privatization of the power sector. Since the privatization process began, many Nigerians believe that electricity tariffs have been on a constant upward trajectory without a significant improvement in service delivery. Skeptics claim that the hike is a ploy by private power distribution companies to maximize profits at the expense of the Nigerian populace.
Political Influence: Some individuals speculate that political considerations might be influencing the proposed tariff increase. Critics argue that the government may be compelled to raise electricity prices as a condition set by international lenders or to generate revenue to fund other projects. This speculation has fueled the notion that citizens are being made to bear the brunt of financial mismanagement or external pressures.
