The Federal Government recently announced plans to adjust tariffs for non-Band-A customers to address liquidity challenges within the electricity sector.

Minister of Power, Adebayo Adelabu, explained that the government can no longer sustain the N3 trillion electricity subsidy due to rising financial burdens.

He revealed that debts owed to power generation companies have now reached N4 trillion, making the current system financially unsustainable.

Adelabu emphasized that reviewing tariffs is necessary to improve revenue, attract investments, and enhance Nigeria’s electricity supply infrastructure and reliability.

He pointed out that Band-B customers receive approximately 18 hours of electricity daily, paying N63/kW, creating disparities in billing structures.

The government recently launched the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan (NIRP) for sector transformation.

Both frameworks outline a plan to eliminate delayed electrification and self-generation by 2035 through massive investment in power infrastructure.

According to official estimates, the sector requires $29.23 billion in investments now and $122 billion by 2045 for improvements.

Small Business Owners Warn Against Economic Crisis from Tariff Hikes

The Association of Small Business Owners of Nigeria (ASBON) strongly opposed the planned hike, warning of severe consequences for businesses.

ASBON President, Femi Egbesola, argued that increased electricity costs would raise production expenses, reduce sales, and threaten small enterprises.

He stressed that most small businesses rely on government-supplied electricity and cannot survive higher energy costs amidst inflation.

“Any further increase will push micro and small businesses to the brink, causing closures and widespread economic difficulties,” he warned.

Civil Society Organizations Threaten Nationwide Resistance Protests

Education Rights Campaign (ERC) announced plans for mass resistance, insisting that electricity supply remains unreliable despite previous tariff increments.

ERC National Coordinator, Hassan Taiwo, criticized frequent power grid collapses, poor service delivery, and financial struggles caused by rising electricity bills.

“Many Nigerians struggle with erratic power supply, yet the government expects them to pay more for unreliable services,” he stated.

Hospitals, businesses, and households already face electricity-related challenges, making further tariff increases completely unjustifiable under current conditions.

The Movement for Socialist Alternative (MSA) also condemned the proposal, calling privatization a failure that benefits only wealthy elites.

MSA General Secretary, Dagga Tolar, claimed that power sector investors exploit consumers while failing to increase Nigeria’s electricity generation capacity.

“The national grid collapses frequently, yet authorities do nothing to resolve these persistent failures affecting millions of Nigerians,” he remarked.

He urged labor unions, businesses, and citizens to resist policies that prioritize private profits over affordable and accessible electricity services.

NERC Introduces New Consumer Protection Regulations for Electricity Users

The Nigerian Electricity Regulatory Commission (NERC) introduced a Customer Bill of Rights and Obligations to protect consumers against unfair practices.

These regulations ensure customers receive clear information regarding electricity tariffs, service terms, connection procedures, and payment responsibilities.

NERC emphasized that timely bill payments, meter compliance, and safety regulations are crucial for maintaining an efficient electricity supply system.

Consumers were also advised to notify electricity distribution companies when relocating to avoid liabilities from outstanding unpaid electricity bills.

With increasing public opposition, the government faces growing pressure to reconsider tariff adjustments and prioritize service improvements first.

The post Small Businesses, Civil Society Groups Oppose Planned Electricity Tariff Increase appeared first on Housing TV Africa.

This announcement comes following his appearance before the Senate Committee on Power for an investigative hearing on the matter, amidst Nigeria’s challenging economic situation.

Minister Adelabu emphasized that the government’s new policy aims to revitalize the struggling electricity sector, assuring Nigerians that any inconveniences caused by the policy adjustments will be temporary.

READ ALAO: Federal Government Appeals to Electricity Union to Halt Strike Threat Over Tariff Hike

He also revealed that the Federal Government is prepared to subsidize electricity with ₦2.9 trillion this year if the tariff adjustment is not implemented.

During the hearing, Senator Eyinnnaya Abaribe, Chairman of the committee, raised questions about the migration of customers from previous customer classes to different bands.

READ ALSO: Electricity Consumers in South-East Nigeria Plan Protest Against Poor Service and Billing Practices

This includes Residential, Commercial, and Demand classes, with inquiries made regarding the legality of the band classification.

The recent increase in electricity tariffs for consumers in the Band A category by the Nigerian Electricity Regulatory Commission (NERC) has sparked discussions and concerns across Nigeria. The reassurance from Minister Adelabu aims to ease the worries of customers and ensure fair implementation of the new tariff structure.

The post Customers Not Enjoying 20 Hours Electricity Will Not Pay New Tariff–Minister appeared first on Housing TV Africa.